(a) An applicant for a license under this subchapter must apply to the Commission using forms provided by the Commission.
(b) The executive director or his/her designee shall develop all forms and related documents including, but not limited to, an application form, release form to obtain a credit report, and/or any other background information relating to the applicant required to determine the applicant's eligibility for a license and whether the granting of a license to the applicant will best serve the public convenience. An applicant must disclose all criminal convictions for those individuals of whom an investigation is authorized under the Government Code, §466.201, and which are requested in the application.
(c) An applicant shall, under penalty of perjury, complete, sign, date, and submit all forms and related information and documents required. By signing and submitting the application form, the applicant agrees to allow the director of the Lottery Operations Division (hereinafter "director") to investigate the credit, criminal, and tax background of the applicant and other matters as authorized under the State Lottery Act, Government Code, Chapter 466.
(d) Every application for a license submitted under this subchapter shall be accompanied by a license application fee in an amount to be established by the director. If the director denies an application for a license based on a factor listed in §401.153(a) of this title (relating to Qualifications for License), the director shall refund one half of the application fee to the applicant. If the director denies an application based on another factor, the director may not refund any part of the application fee. If an applicant fails to provide all forms and related information and documents required as part of the application, the director may cancel the application without making a determination to deny. If the director cancels an application, the director shall not refund any part of the application fee.
(e) Every license application submitted to the director under this subchapter shall be accompanied by security as authorized by the Government Code, §466.156(a), in a form and amount determined by the director. The director may reduce or waive the amount of security required, if feasible, after consideration of the possible loss to the state from the operation of the applicant in connection with the lottery, whether the applicant is a minority business as defined by Government Code, §466.107, or any other factor the director finds relevant. If the director determines that the purposes of the Act would be best served through establishment and maintenance of a pooled fund for purposes of reimbursing the division for losses arising from the operation of licensed sales agents, the director may require security in the form of a mandatory contribution by each applicant. Any amount so contributed may not be refunded. Depending upon the losses required to be reimbursed by such a fund, the director may require additional contributions to such a fund as a condition of any license application, including a license renewal application.
(f) All applications submitted under this subchapter shall be available for public inspection during business hours, provided that criminal history information and other information confidential by law shall not be available for inspection. Any person seeking to inspect any application shall furnish a written request to the director specifically stating the information sought to be inspected. The director may respond to such requests orally or in writing in order to arrange for the inspection of the requested documents after a reasonable time is allowed for the division to review the documents and delete confidential information.

Source Note: The provisions of this §401.152 adopted to be effective March 30, 1992, 1401 TexReg 1913; transferred effective December 27, 1993, as published in the Texas Register January 4, 1994, 19 TexReg 78; amended to be effective March 14, 1996, 21 TexReg 1756; amended to be effective July 1, 2002, 27 TexReg 5759; amended to be effective September 1, 2011, 36 TexReg 5361; amended to be effective September 12, 2012, 37 TexReg 7088; amended to be effective November 2, 2023, 48 TexReg 6353