1. (a) The department may suspend a sales agent's license summarily without notice or hearing if the department finds that the action is necessary to maintain the integrity, security, honesty, or fairness of the operation or administration of the lottery or to prevent financial loss to the state and:

   1. (1) the sales agent fails to deposit money received from ticket sales under Section 466.351;
   2. (2) an event occurs that would render the sales agent ineligible for a license under Section 466.155;
   3. (3) the sales agent refuses to permit the executive director, the department, or the state auditor to examine the agent's books, records, papers, or other objects under Section 466.017(b); or
   4. (4) the executive director learns the sales agent has failed to disclose information that would, if disclosed, render the sales agent ineligible for a license under Section 466.155.
2. (b) The department may summarily suspend a sales agent's license if proceedings for a preliminary hearing before the State Office of Administrative Hearings are initiated simultaneously with the summary suspension. The preliminary hearing shall be set for a date not later than 10 days after the date of the summary suspension, unless the parties agree to a later date.
3. (c) At the preliminary hearing, the sales agent must show cause why the license should not remain suspended pending a final hearing on suspension or revocation. The rules governing a hearing on any other license suspension or revocation under this chapter govern a final administrative hearing under this subsection. A hearing under this section is subject to Section 2001.058(e).

4. (d) To initiate a proceeding to summarily suspend a sales agent's license, the department must serve notice to the sales agent informing the agent of the right to a preliminary hearing and of the time and place of the preliminary hearing. The notice must be personally served on the sales agent or an officer, employee, or agent of the sales agent or sent by certified or registered mail, return receipt requested, to the sales agent's mailing address as it appears on the department's records. The notice must state the alleged violations that constitute grounds for summary suspension. The suspension is effective at the time the notice is served. If notice is served in person, the sales agent shall immediately surrender the license to the department. If notice is served by mail, the sales agent shall immediately return the license to the department. If the sales agent uses an on-line electronic terminal to sell tickets, the executive director or a lottery operator on the instructions of the executive director may terminate the connection of the terminal to the department's lottery computer at the time:

   1. (1) the proceeding to summarily suspend the license is initiated; or
   2. (2) the department discovers the sales agent has failed to deposit money received from ticket sales, if the sales agent's license is being summarily suspended under Subsection (a)(1).

Added by Acts 1993, 73rd Leg., ch. 107, Sec. 4.03(b), eff. Aug. 30, 1993.

Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(50), 6.24, eff. Sept. 1, 1995.

Acts 2013, 83rd Leg., R.S., Ch. 993 (H.B. 2197), Sec. 6, eff. September 1, 2013.

Acts 2025, 89th Leg., R.S., Ch. 1160 (S.B. 3070), Sec. 25, eff. June 20, 2025.