16 Tex. Admin. Code § 401.370 - Retailer's Financial Responsibility for Lottery Tickets Received and Subsequently Stolen or Lost
(a) Definitions. In
addition to the definitions provided in §
401.301 of this title (relating to
General Definitions), and unless the context in this section otherwise
requires, the following definitions apply.
(1) Available--The status in the lottery
management system for a pack of scratch tickets that is stored in the scratch
ticket distribution warehouse and is available to be assigned to a retailer's
account. Scratch tickets in a pack in this status shall not be sold to the
public and prizes contained in scratch tickets in the pack cannot be
validated.
(2) Issued--The status
in the lottery management system for a pack of scratch tickets that has been
assigned to a retailer's account and is pending confirmation of delivery to the
retailer's location. Scratch tickets in a pack in this status shall not be sold
to the public and prizes contained in scratch tickets in the pack cannot be
validated.
(3) Confirmed--The
status in the lottery management system for a pack of scratch tickets that has
been physically received at the retailer's location. A retailer is required to
"confirm" receipt of a pack of scratch tickets upon delivery to the retailer's
location. Scratch tickets are confirmed using the lottery terminal located in
the retailer's business location and the status is recorded in the lottery
management system. Scratch tickets in a pack in this status shall not be sold
to the public and prizes contained in scratch tickets in the pack cannot be
validated.
(4) Active--The status
in the lottery management system for a pack of scratch tickets that has been
physically received at the retailer's location and that is being offered for
sale to the public. A retailer is required to "activate" a pack of scratch
tickets prior to selling the tickets to the public. A pack of scratch tickets
is activated using the lottery terminal located in the retailer's location and
the status is recorded on the lottery management system. A pack of scratch
tickets shall be placed in this status prior to being sold to the public and
prizes contained in scratch tickets in the pack may be validated.
(5) Settled--The status in the lottery
management system for a pack of scratch tickets that has been physically
received at the retailer's location, has been activated and the cost of the
tickets in the pack has been or is being charged to the retailer's account.
Scratch tickets "settle" against a retailer's account and the value of the
settled packs are swept from the retailer's bank account through an electronic
funds transfer. Settled scratch tickets are recorded in the lottery management
system. Scratch tickets in a pack in settled status may be sold to the public
and prizes contained in scratch tickets in the pack may be validated.
(6) Unactivated Scratch Tickets--Unactivated
scratch tickets are tickets in Available, Issued or Confirmed status.
Unactivated tickets have never been activated or settled and no prizes have
been validated.
(b)
Responsibility for Lottery Tickets Received and Subsequently Stolen or Lost.
(1) Except as otherwise expressly provided by
this subsection, each retailer shall bear the risk of loss for all lottery
tickets received. Receipt of tickets by a retailer shall constitute a purchase
of such tickets, and each retailer shall be liable to the commission for the
retail sales price of such tickets, less any applicable commission or
credit.
(2) Notwithstanding
paragraph (1) of this subsection, a retailer may return, and receive an
accounting indicating that the packs have been removed from the retailer's
inventory for, full and complete packs of unactivated tickets in original
condition. Nothing in this subsection waives the requirements of §
401.361 of this title (relating to
Required Sales of Lottery Tickets).
(3) Notwithstanding paragraph (1) of this
subsection, the director may charge a retailer full face value of an activated
pack of tickets if prizes have been paid from the pack. The director may credit
a retailer's account for a range of activated tickets in a pack reported as
stolen or lost provided that no validations have occurred on tickets in the
range reported as stolen or lost if:
(A) the
pack has been stolen and the retailer, within 24 hours of the discovery of the
theft, has made a formal report of such theft to both:
(i) appropriate local law enforcement
authorities; and
(ii) the
commission's enforcement division through the lottery operator
hotline;
(B) the pack has
been lost and cannot be located by the retailer and the retailer, within 24
hours of discovery of the loss, has made a formal report of the loss to the
commission's enforcement division through the lottery operator
hotline
(4) A retailer
shall report each stolen or lost pack of tickets to the commission's
enforcement division through the lottery operator hotline within 24 hours of
the discovery of the theft or loss.
Notes
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