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2011 TLC Sunset SER - Texas Lottery · PDF file 2014. 6. 11. · Total Texas Lottery sales for FY 2010 ... beginning September 1, 2011, or more than $160 million through the life of

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  • Self-Evaluation Report

    Self-Evaluation Report

    Texas Lottery Commission

    August 2011

  • Self-Evaluation Report

  • Self-Evaluation Report

    TABLE OF CONTENTS I. Agency Contact Information ....................................................................................................... 1 II. Key Functions and Performance .................................................................................................. 1 III. History and Major Events ......................................................................................................... 31 IV. Policymaking Structure ............................................................................................................. 60 V. Funding .................................................................................................................................... 70 VI. Organization ............................................................................................................................. 77 VII. Guide to Agency Programs ....................................................................................................... 81 Support Functions ................................................................................................................. 82 Lottery Operations ................................................................................................................. 88 Charitable Bingo.................................................................................................................. 105 Enforcement .......................................................................................................................... 117 VIII. Statutory Authority and Recent Legislation ............................................................................. 124 IX. Policy Issues ........................................................................................................................... 133 X. Other Contacts ........................................................................................................................ 134 XI. Additional Information............................................................................................................ 140 Complaint Data .................................................................................................................... 140 HUB Data ............................................................................................................................ 141 EEO Data ............................................................................................................................. 143 XII. Agency Comments .................................................................................................................. 145

  • Self-Evaluation Report

  • Self-Evaluation Report

    August 2011 1 Texas Lottery Commission

    I. Agency Contact Information

    A. Please fill in the following chart.

    Texas Lottery Commission Exhibit 1: Agency Contacts

    Name

    Address

    Telephone & Fax Numbers

    E-mail Address

    Agency Head

    Gary Grief, Executive Director

    611 E. 6th St. Austin, TX 78701

    (P) (512) 344-5245 (F) (512) 478-3682

    [email protected] us

    Charitable Bingo

    Operations Division Director

    Phil Sanderson, Division Director

    611 E. 6th St. Austin, TX 78701

    (P) (512) 344-5120 (F) 512) 344-5142

    [email protected] us

    Agency’s Sunset Liaison

    Nelda Trevino, Governmental Affairs Director

    611 E. 6th St. Austin, TX 78701

    (P) (512) 344-5190 (F) 512) 344-5107

    [email protected] us

    II. Key Functions and Performance Provide the following information about the overall operations of your agency. More detailed information about individual programs will be requested in a later section.

    A. Provide an overview of your agency’s mission, objectives, and key functions.

    Agency Mission and Objectives Texas Lottery: The Texas Lottery is committed to generating revenue for the state of Texas through the responsible management and sale of entertaining lottery products. The Texas Lottery will incorporate the highest standards of security and integrity, set and achieve challenging goals, provide quality customer service and utilize a TEAM approach. Charitable Bingo: Provide authorized organizations the opportunity to raise funds for their charitable purposes by conducting bingo. Determine that all charitable bingo funds are used for a lawful purpose. Promote and maintain the integrity of the charitable bingo industry throughout Texas.

  • Self-Evaluation Report

    August 2011 2 Texas Lottery Commission

    The Texas Lottery Commission is charged with generating lottery revenue for the state of Texas while regulating those locations licensed to sell lottery games. Regarding charitable bingo, the Commission is charged with licensing and regulating an industry that generates revenue for the state of Texas, local municipalities and nonprofit organizations in Texas. Key Functions The Texas Lottery Commission has two main functions:

    • Under the State Lottery Act, the Commission is charged with operating, administering and closely supervising all lottery games conducted in Texas to promote and ensure integrity, security, honesty, and fairness in the operation and administration of the lottery.

    • Under the Bingo Enabling Act, the Commission is charged with administering and closely supervising all bingo conducted in Texas to ensure that bingo is fairly conducted and the proceeds derived from bingo are used for an authorized purpose.

    B. Do each of your key functions continue to serve a clear and ongoing objective? Explain why each of these functions is still needed. What harm would come from no longer performing these functions?

    Yes, these key functions continue to serve a clear and ongoing objective. On August 26, 1991, House Bill (HB) 54, creating a lottery in Texas, was passed during a special session of the 72nd Legislature. On November 5 of that same year, House Joint Resolution (HJR) 8, containing the constitutional amendment to authorize a state lottery, was approved by Texas voters. In 1979, the 66th Legislature, Regular Session, passed (Senate Joint Resolution) SJR 18, proposing a constitutional amendment to authorize bingo games for charitable purposes on a local option election basis. At the time of the constitutional amendment, bingo was prohibited by Article III, Section 47, of the Texas Constitution. However, in many communities, the law was selectively enforced. The purpose of the constitutional amendment and the ensuing enabling legislation was to provide for uniform regulation so that charitable bingo is conducted fairly.

  • Self-Evaluation Report

    August 2011 3 Texas Lottery Commission

    C. What evidence can your agency provide to show your overall effectiveness and efficiency in meeting your objectives?

    Lottery Sales and Revenue to the State The Texas Lottery’s mission is to generate revenue for the state of Texas through the responsible management and sale of entertaining lottery products. Total Texas Lottery sales for FY 2010 were $3.74 billion, representing the fourth best year since ticket sales began in 1992. From those sales, the Commission transferred a total of $1.095 billion to the state of Texas, the largest lottery transfer to the state since 1998. Of that amount, slightly more than $1 billion went directly to the Foundation School Fund and an additional $7.3 million went to the Texas Veterans Commission from the sales of a new scratch-off game dedicated to the Fund for Veterans’ Assistance. Other state programs, as directed by the Legislature, also benefited from almost $87 billion in unclaimed lottery prizes. The figure below illustrates the distribution of Texas Lottery sales for FY 2010.

    The Texas Lottery operates 16 claim centers statewide that act as payment locations for lottery prizes. As Internal Revenue Service (IRS) rules require the collection of tax information for lottery prizes of $600 or more, claim centers act as the payment locations for prizes that cannot be paid at licensed sales agent locations. Claim centers also act as a resource in assisting players

  • Self-Evaluation Report

    August 2011 4 Texas Lottery Commission

    with payment of claims when they experience difficulty in receiving payment at sales agent locations. Texas Lottery claim centers processed 58,127 claims in FY 2010. Collection of Liabilities Owed to the State Claim centers also perform collection of monies from individuals with claims that owe monies to entities of the state via the agency’s debt set-off collection program. In FY 2010, $1,437,443 was collected from prize claimants through this program. New Lottery Operator Contract On December 14, 2010, the Texas Lottery signed a new nine-year contract with GTECH Corporation for lottery operations and services. Under the terms of the new Lottery Operator contract, the state of Texas will realize potential savings of more than $18 million annually beginning September 1, 2011, or more than $160 million through the life of the contract, based on current ticket sales levels. The contract was the culmination of an

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