Latest news with #SB1988
Yahoo
06-05-2025
- Politics
- Yahoo
The Texas Lottery and billions in school funding in limbo as deadline nears at Capitol
Yahoo is using AI to generate takeaways from this article. This means the info may not always match what's in the article. Reporting mistakes helps us improve the experience. Yahoo is using AI to generate takeaways from this article. This means the info may not always match what's in the article. Reporting mistakes helps us improve the experience. Yahoo is using AI to generate takeaways from this article. This means the info may not always match what's in the article. Reporting mistakes helps us improve the experience. Generate Key Takeaways State Sen. Bob Hall laid out a bill in a Senate State Affairs Committee hearing on Monday with one purpose: ending the Texas Lottery. In a lengthy speech, the Edgewood Republican summarized all the problems at the Texas Lottery Commission that culminated in the agency allowing ticket sales he called illegal to occur. The only solution, Hall said, would be to abolish the game entirely. 'It's definitely the nuclear option, but what you have described is incredibly disturbing,' Sen. Angela Paxton, R-McKinney, said to Hall during the hearing. With less than 30 days left in the session, lawmakers must pass legislation to either continue or end the lottery. At stake is $2 billion in public school funding and millions of dollars to veterans' programs it provides yearly. Passing Senate Bill 1988 is not the only way the lottery could ultimately be abolished. Lawmakers must act on two key pieces of legislation to keep the lottery going past Sept. 1. First, lawmakers must return the lottery commission's funding in the next biennial state budget proposal after a House amendment removed it entirely. Second, the Legislature must pass one of two 'sunset' bills in each chamber. The lottery commission is under review by the Texas Sunset Advisory Commission, a legislative body that reviews state agencies every 12 years. The agency automatically closes if lawmakers do not renew it. Neither of the two sunset bills — House Bill 1505 and Senate Bill 2402 — have been heard by their assigned committees. SB 1988 was also left pending in committee. Much of the criticism of the Texas Lottery from Hall and others can be traced to lottery couriers, services that sell lottery tickets online. Couriers allow customers to play the lottery digitally by printing physical tickets at a licensed retail store their company owns and sending scanned photos of tickets to customers. Hall and others have said rules the lottery commission approved over the years allowed couriers to operate in Texas contrary to state law and enabled illegal sales, including to minors and out-of-state customers. 'If the lottery commission were to adopt an official motto today, it would have to include unique words like lie, cheat, steal, mislead and cover-up,' Hall said during the hearing on SB 1988. 'This bill is intended to send a strong message to not just the lottery commission, but to all state agencies that have assumed authority not given to them by the Legislature.' A $2 billion gamble While most of the lottery's revenue goes to prize payouts, a little under 24% of the lottery's $8 billion in annual sales goes to Texas public schools, according to the lottery commission. That funding supplants, but does not supplement, schools' budget, said Chandra Villanueva, director of policy and advocacy for progressive nonprofit Every Texan. The state budget for schools comes from several different funds, including the lottery. That means the game's abolition would not immediately decrease actual money schools receive, but it would create a gap in the state's budget. 'If we got rid of the lottery, it wouldn't impact schools at all, just like how if we go out and buy a bunch of lottery tickets today, it wouldn't create more funding for schools,' Villanueva said. 'It's formula driven, and the state would just have to make it up through general revenue.' A committee made up of members of the House and Senate will meet to hash out the final details of the budget. If the lottery is not going to provide the $2 billion, the committee must make up the shortfall. The harm to schools might still come, Villanueva said, depending on where lawmakers choose to pull the money from. House Bill 2, a school funding increase that passed out of the House in April, seeks to add $8 billion to public education by giving raises to teachers, increasing school districts' money per student and more. The House bill is awaiting Senate action, and Villanueva said some of the proposals in the bill could get cut to make up for a potential absence of lottery money. 'Unfortunately, because they've been so hesitant around funding public education, it would probably come out of any dollars that are set aside for formula increases that we're seeing in HB 2,' Villanueva said. For Hall, the price of removing the corruption of the lottery commission is worth the trouble of finding money elsewhere in the budget to cover the losses. 'We keep billions of dollars around here like you or I would spend nickels and dimes, so it's not that significant,' Hall said. That $2 billion to schools, while valuable, represents only a small fraction of public education funding in the state — about three days' worth of education, Hall said. Although opponents of the lottery like Lt. Gov. Dan Patrick have been vocal, supporters have been less forthcoming. Hall said he's heard from some fellow legislators who are concerned about the funding gaps, but not vehemently so. 'I don't find anybody anxious to defend the lottery and jump up for it,' Hall said in a recent interview with The Texas Tribune. Supporters of the lottery's continuation, like Rep. Josey Garcia, said ongoing support for the game won't come without scrutiny. The San Antonio representative was one of a few Democrats in the House with amendments to the budget that would have pulled money away from the lottery to other programs, but said she values what the game offers Texans. 'If we know that there's potential mishandling, then there needs to be a full review and you need to rehire, because that one thing that we can't accept from our government is the mishandling of any resources,' Garcia said. Despite her initial eyeing of the lottery's funding for other purposes, Garcia said she still believes the game can be an honest source of revenue for the lottery also provides roughly $26 million a year to the Texas Veterans Commission Fund for Veterans' Assistance, which provides grants for veteran services. Garcia, who is a veteran, said the programs the lottery supports for veterans deserves the same level of care she had while serving. Almost all of the lottery commission's funding comes from ticket revenue, which is stored in a separate account. If the sunset bills are not passed, the funds in the account — roughly $430 million, according to the Texas Comptroller's office — would be placed back in the state's general revenue in 2026. 'I was a logistician, and we had to account for our budget to the penny, and I just can't imagine that we wouldn't do the same for these programs,' Garcia said. Standoff on courier regulations Two major jackpot wins are at the heart of concerns involving couriers and lawmakers' scrutiny of the services' unclear ability to operate under state law. In April 2023, a $95 million jackpot was won after four retailers, some of whom were partnered with couriers, printed 99% of the 25.8 million possible ticket combinations. Those orders weren't taken over the phone, but ticket-printing terminals were requested from the lottery commission by a lottery courier, to complete the 'bulk purchase.' Another $83.5 million jackpot was won by an anonymous woman who bought the winning ticket in February on an app operated by the courier Jackpocket. Currently, state law prohibits selling lottery tickets by 'telephone,' which some lawmakers, including Hall and Patrick, have said should apply to couriers' website and app sales., Courier executives have said the law only applies to phone call orders. Both of those jackpots have prompted state investigations from Attorney General Ken Paxton's office and the Texas Rangers, a division of the Department of Public Safety. Couriers have operated in the state for years as lottery commission officials claimed they could not regulate the services. That changed in February, when the lottery commission abruptly announced in late April it would ban couriers from operating. One courier, sued the commission over the rule and was granted a temporary restraining order by a Travis County district judge on Friday. In granting the restraining order, which allows to continue operating in Texas, the judge wrote there was 'substantial likelihood' that claims would prevail in the suit. Patrick named banning couriers from operating as one of his legislative priorities, and a bill being heard in the House on Tuesday seeks to go further than the lottery commission's restrictions. Senate Bill 28, authored by Hall, would explicitly block online sales and criminalize lottery couriers, creating a misdemeanor for purchasing and selling the tickets online. Another bill being heard during the same hearing does just the opposite: House Bill 3201 would allow lottery couriers to be licensed by the state to sell tickets online, but only after going through background checks and creating guardrails to prevent illegal purchases. Authored by Rep. John Bucy III, D-Austin, the bill also would require that couriers submit to yearly financial audits reviewing their sales. In a statement to the Tribune after the lottery commission passed its courier ban, Bucy said the agency is overstepping by choosing to ban the services while legislators are discussing how they want to act on couriers. 'It's outrageous that the Texas Lottery Commission — an unelected body — would take sweeping action like this in the middle of the legislative session, especially after claiming for years they had no authority to regulate these services,' Bucy said. Disclosure: Every Texan and Texas Veterans Commission have been financial supporters of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune's journalism. Find a complete list of them here. Tickets are on sale now for the 15th annual Texas Tribune Festival, Texas' breakout ideas and politics event happening Nov. 13–15 in downtown Austin. TribFest 2025 is presented by JPMorganChase.
Yahoo
06-05-2025
- Business
- Yahoo
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. Texas Lottery executive director resigns following investigation of recent winning tickets Texas Lottery concerns: Commission holds meeting amid investigations into courier services Bill to ban online, app purchase of Texas Lottery tickets passes Senate 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). Click to open this PDF in a new window. 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 request for injunctive relief, the Court affirmed that 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.
Yahoo
06-05-2025
- Politics
- Yahoo
State Sen. Bob Hall calls for end of Texas Lottery amid scandal
AUSTIN (Nexstar) — State Sen. Bob Hall, R-Rockwall, was one of the first lawmakers to call for an investigation into the Texas Lottery Commission over their alleged role in a controversial 2023 Lotto Texas drawing. Months later, he laid out the case for abolishing the commission altogether. 'I apologize for the length of this,' Hall said to the Senate State Affairs committee as he went into detail about why the lottery should be abolished. 'It's very important that you know some of the specifics of the laws where it appears they maybe continuing to be broken by a criminal organization deeply embedded within our government.' Hall filed Senate Bill 1988, which would repeal the Lottery Act, shifting the Lottery Commission's remaining funds to the Foundation School Program and leaving the state's charitable bingo operations in the hands of the Texas Department of Licensing and Regulation (TDLR). While SB 1988 was left pending in committee, the Texas Lottery isn't out of the clear. For starters, the committee could come back and send it to the Senate floor, although with just 10 days until the Texas House bill deadline, it's unlikely SB 1988 would move fast enough to get passed by the end of the legislative session. Texas Lottery Commission approves new rules to penalize courier services However, the Texas Lottery Commission (TLC) is also up for a scheduled Sunset Review, meaning the legislature has to pass a bill to extend the agency. Neither State Sen. Mayes Middleton's, R-Galveston, Senate Bill 2402 or State Rep. Lacey Hull's, R-Houston, House Bill 1505 have been heard in a committee hearing. Additionally, the Texas House struck all funding for TLC in their proposed version of the Texas budget, and asked their conferees to fight for defunding the TLC as they negotiate the budget with the Texas Senate. If there's a small sliver of hope for the Texas Lottery, it comes from Lt. Gov. Dan Patrick's comments last Monday. 'Look, folks like to play the lottery. They like their scratch-off ticket games. They know they don't have a big chance of winning, but they like to play and they like to hope,' Patrick said. 'If we have a lottery game, we need to close down the Lottery Commission and turn it over to [TDLR].' There's no current proposed bill to move the Texas Lottery to another agency, however the measure could be enacted with an amendment to an existing bill. During the hearing, Acting Deputy Executive Director of the TLC Sergio Rey advocated for his current staff. 'I can tell you that the remaining 300 employees are honoring the integrity, honesty and fairness of the agency,' Rey said. Rey started with the TLC in late 2023 (after the notable Lotto Texas drawing) and took on his role when Executive Director Ryan Mindell resigned last month. One of the common arguments in favor of state lotteries is the money provided to the public sector. In Texas, the majority of lottery profits go to schools or veterans. However, according to an analysis presented by Rob Kohler with the Christian Life Commission of the Baptist General Convention of Texas, the money is coming from the people who can least afford to lose it. State of Texas: Lottery on 'life support' as Lt. Governor calls for ending commission 'When [Texas] started the lottery back in [the] 90s, the discussion was around — to fund education, whether there was going to be a sales tax or go to a lottery,' Kohler said. 'It was thought — at the time — a sales tax was going to be too regressive, and that a voluntary non-regressive tax would make more sense and fund education… the idea that it was a non-regressive enterprise — I think when you see this data — it would make a sales tax blush.' Kohler argued the areas in Texas with the lowest wealth spent the most on the lottery. He said House District 119 in the San Antonio area sold the most tickets ($102.9 million) while having a per capita income of $26,414. To the contrary, House District 108 in the Dallas area has the highest per capita income of $104,418. They sold less than a quarter of the lottery tickets as HD 119, only selling $24.3 million worth of tickets. '[Ticket sales are] coming from communities and areas in our state that we pour money into trying to help folks — and I represent folks that believe in that — but at the same time, it makes no sense putting $70 million in a district in the name of helping them and then tricking them out of $70 million the same year.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
