16 Tex. Admin. Code § 401.153 - Qualifications for License
(a) Before issuing a license to any person
under this subchapter, the director shall consider:
(1) the financial responsibility and security
of the applicant and the business or activity in which the applicant is
engaged. Consideration of this factor may include the analysis of the
applicant's credit record, compliance with tax laws of other jurisdictions,
status of permits and licenses, results of criminal background check, adequacy
of security procedures against theft, whether the location is fixed and
permanent, whether the applicant can provide appropriate security, and any
other factor that may assist the director in such evaluation;
(2) the public accessibility of the
applicant's place of business or activity. Consideration of this factor may
include analysis of the applicant's hours of operation, proximity to major
transit routes, proximity to large employers, public parking availability, and
any other factor that may assist the director in such evaluation;
(3) the sufficiency of existing sales agents
to serve the public convenience. Consideration of this factor may include
analysis of number and proximity of other sales agents in a given market area,
and/or number of "minority businesses" (as that term is defined in the
Government Code, §
466.107(b))
licensed in a given market area, with the possibility that additional licenses
for any given market area may be denied if the area is determined to be
adequately served by existing licensees;
(4) whether individuals under 18 years of age
constitute a majority of the applicant's customers or as customers provide a
majority of the applicant's sales volume;
(5) the volume of expected lottery sales at
the applicant's place of business or activity; and
(6) any other factor that is helpful in
determining whether the applicant's experience, character, and general fitness
are such that the applicant's participation as a sales agent will not detract
from the integrity, security, honesty, or fairness of the operation of the
lottery. An example of the type of factor considered in this regard is the
analysis of the type of product sold or form of service provided by the
applicant.
(b) The
director may grant or deny an application for a license under this subchapter
based on any one or more factors listed in subsection (a) of this section. In
addition, the director shall deny an application for a license under this
subchapter upon a finding that the applicant:
(1) has been convicted of a felony, criminal
fraud, gambling or a gambling-related offense, or a misdemeanor involving moral
turpitude, if less than 10 years has elapsed since the termination of the
sentence, parole, mandatory supervision, or probation served for the
offense;
(2) is or has been a
professional gambler. A "professional gambler" is a person whose profession is,
or whose major source of income derives from, playing games of chance for
profit;
(3) has been finally
determined to be delinquent in the payment of a tax or other money collected by
the comptroller, the Texas Workforce Commission, or the Texas Alcoholic
Beverage Commission;
(4) is married
to a person described in paragraph (1), (2), or (3) of this
subsection;
(5) has violated the
Act or a rule adopted by the commission in furtherance of the State Lottery
Act;
(6) is not an individual, and
an individual described in one or more of paragraphs (1) - (5) of this
subsection:
(A) is an officer or director of
the applicant;
(B) holds more than
10% of any class of issued and outstanding stock in the applicant;
(C) holds an equitable ownership interest
greater than 10% in the applicant;
(D) is a creditor of the applicant to the
extent of more than 10% of the applicant's outstanding debt at any time after
the application is filed but before the director acts to grant or deny the
license;
(E) is the owner or lessee
of a business that the applicant conducts or through which the applicant will
conduct a ticket sales agency;
(F)
shares or will share in the profits, other than stock dividends, of the
applicant or sales agent;
(G)
participates in managing the affairs of the applicant; or
(H) is an employee of the applicant who is or
will be involved in selling tickets or handling money from the sale of
tickets;
(7) provided
false or misleading information on the application form, or failed to provide
information required as part of the application;
(8) failed to provide fingerprint
identification for individuals for which such identification is requested in a
form acceptable to the division following the division's request for such
identification;
(9) has previously
had a sales agent's license revoked, unless the director is satisfied the
person will comply with the State Lottery Act and the rules under this
chapter;
(10) failed to certify to
the director the applicant's compliance with the federal Americans With
Disabilities Act;
(11) is the
subject of a license suspension or decision issued under Chapter 232, Family
Code;
(12) intends to sell lottery
tickets via the internet; or
(13)
intends to engage in business exclusively as a Texas Lottery ticket sales
agent. For purposes of this section, an applicant "intends to engage in
business exclusively as a Texas Lottery ticket sales agent" if the applicant
does not sell any goods or services to the public other than Texas Lottery
tickets.
(c) Without
limiting the foregoing grounds for denial of a license under this subchapter,
the director shall deny a license to any person whose location for the sales
agency is either:
(1) a location licensed for
games of bingo under the Bingo Enabling Act (Occupations Code, Chapter
2001);
(2) on land owned by the
State of Texas; or a political subdivision of this state and on which is
located a public primary or secondary school, an institution of higher
education, or an agency of the state; or
(3) a location for which a person holds a
wine and malt beverage retailer's permit, mixed beverage permit, mixed beverage
permit with a retailer late hours certificate, private club registration
permit, or private club registration permit with a retailer late hours
certificate issued under the Alcoholic Beverage Code, Chapter 25, 28, 29, or
32, other than a location for which a person holds a wine and malt beverage
retailer's permit issued under Chapter 25, Alcoholic Beverage Code, that
derives less than 30 percent of the location's gross receipts from the sale or
service of alcoholic beverages.
(d) Any applicant whose application is denied
under this subchapter, or who is granted a license the terms of which are more
restricted than those applied for, shall be notified by the director in writing
of the denial or restriction and of the reasons therefore. The applicant may
appeal the director's decision in accordance with rules adopted by the
commission for that purpose.
(e) A
license issued under this chapter may by its terms limit the type of games
and/or method of sales authorized by the license. A determination of
appropriate limitations on any license are within the director's sole
discretion, provided that the director shall furnish the licensee with a
written explanation or the reasons for any such limitations.
(f) Based upon consideration of the factors
in §
401.160(g) of
this title (relating to Standard Penalty Chart), the director may determine a
person or organization whose license has been revoked or surrendered, or whose
application has been denied for reasons which would justify a revocation of an
existing license, will not be eligible to apply for another license earlier
than one year from the date of revocation, surrender, or denial.
Notes
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