Texas Lottery: Judge puts courier rule change on hold; lawmakers consider bill to shut it down
The Brief
AUSTIN, Texas - Texas lawmakers are considering a bill that would shut down the Texas Lottery.
This comes after a ruling from a Travis County judge that put on hold a new rule change involving lottery couriers.
What we know
Senate Bill 1988, if passed, would repeal the Lottery Act and shut down the Texas Lottery Commission, which was created in 1991.
The bill would also shift the remaining funds to the Foundation School Program and move the Bingo Division under the oversight of the Texas Department of Licensing and Regulation.
The bill was filed in March but got its first public hearing on Monday, May 5. The bill has been left pending in the Texas Senate's State Affairs committee.
What they're saying
"All I was seeking were answers, and they were bringing me answers and lying to me," said state Sen. Bob Hall (R-Edgewood).
The harsh words from Hall came as he explained why he filed SB 1988 to abolish the Texas Lottery Commission.
"It's not the same commission, it's not the same thing that was established initially by the legislature," said Sen. Hall.
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During the hearing, Sergio Ray, interim director of the Lottery Commission, tried to reassure the committee that the current TLC staff is determined to protect the integrity of the game.
However, when grilled about accountability for what has happened, Ray noted that he was hired after the courier rules were created.
"I cannot speak to the thought processes of the predecessors or who were in that decision policy, whether they either directly intended to do harm to the integrity and the honesty of the commission or they were just unintended consequences. I can tell you that the remaining 300 employees Are honoring the integrity, honesty, and fairness of the agency," said Ray.
What we know
The proposed shutdown is in response to rules adopted by the Lottery Commission that allowed online purchases and the use of courier services.
Hall, in discussing his proposal, claimed the Commission's rules violated state law and should never have been done. Questionable multi-million dollar payouts were made under the TLC Courier rules.
The rules were removed by members of the Lottery Commission late last month.
A courier service coalition filed a lawsuit to block the rule change, and on Friday, Travis County Judge Sherine Thomas hit the brakes on the rule change and granted a temporary restraining order (TRO).
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Thomas determined that there is a likelihood the courier coalition will win its lawsuit on the merits of its claim. She also prevented the state from confiscating lotto terminals that were originally sent out.
Enforcement of the new rule was put on hold until a court hearing on May 27.
What they're saying
The Coalition of Texas Lottery Couriers provided the following statement to FOX 7 Austin:
By granting Lotto.com's request for injunctive relief, the Court affirmed that Lotto.com's legal challenge of the Texas Lottery Commission's attempted courier ban "will likely prevail on the merits of its claims." For years, the TLC provided lottery couriers with the authorization, equipment, and guidance they needed to operate, only for the agency to abruptly reverse course in February and overstep its authority by calling for their elimination.
Members of the CTLC are eager to work with policy makers to establish a regulatory framework that protects the integrity of the Texas Lottery while also allowing millions of courier customers to continue to safely and conveniently order lottery tickets.
Dig deeper
Lt. Governor Dan Patrick, who initiated the call to shut down the lottery commission, is pitching a possible compromise to keep the game going.
In a recent interview, Patrick suggested the operation of the lottery could be transferred to the Texas Department of Licensing and Regulation.
On Monday morning, state Sen. Hall clearly was not convinced a management reshuffling would work.
"There is no way to reorganize, restructure, or restore the integrity of the government-run Texas Lottery," said Hall.
Hall and other senators who support the shutdown admit doing so will stop money sent to schools and to programs for military veterans. They suggested the Rainy-Day Fund could be used to make up for that loss.
The Source
Information in this report comes from reporting by FOX 7 Austin chief political reporter Rudy Koski.
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