§ Reduces the statutory maximum of money in the state lottery account which may be expended for lottery operation and administration from 15 percent to 12 percent of gross revenue from lottery ticket sales in a fiscal biennium.

§ Requires the executive director of the Texas Lottery Commission to deduct from the lottery winnings of persons delinquent in the payment of child support payments.

§ Continues the Texas Racing Commission (TRC) until September 1, 2005 and makes standard revisions suggested by the Sunset Commission.

§ Authorizes TRC to adopt rules to prohibit false, misleading, or deceptive practices except those restricting competitive bidding or advertising.

§ Requires TRC to employ all of the judges and all of the stewards for the supervision of a horse race or greyhound race meeting. Sets forth regulations regarding stewards or judges.

§ Provides for the recognition of an organization representing members of a segment of the racing industry by TRC.

§ Requires TRC to revoke, suspend, or refuse to renew a license, place on probation a person whose license has been suspended, or reprimand a licensee for a violation.

§ Requires TRC to adopt certain rules prohibiting a person from unlawfully influencing or affecting the outcome of a race. Sets forth regulations regarding the unlawful influence of a race.

§ Provides for TRC actions regarding drug testing.

§ Authorizes the executive secretary of TRC to issue a cease and desist order if the executive secretary reasonably believes an association or other licensee is engaging or likely to engage in conduct that violates the Texas Racing Act or a TRC rule.

§ Requires TRC, by rule, to provide for the enforcement of policies relating to the horsemen's account of an association.

§ Provides regulations regarding criminal history checks by TRC on an applicant for a license.

§ Authorizes TRC to adopt rules regarding the regulation of inappropriate or unsafe conditions and supervision and approval of construction, renovation, or maintenance of a racetrack facility.

§ Authorizes TRC to summarily suspend a racetrack license if TRC determines that a racetrack is being operated in a manner that constitutes an immediate threat to the health, safety, or welfare of the participants in racing or the patrons.

§ Provides regulations regarding a horse racing association's distribution of wagering pools on simulcasts of other races.

§ Requires TRC to adopt reporting, monitoring, and auditing requirements or other appropriate performance measures for funds generated by live or simulcast pari-mutuel racing.

§ Authorizes interstate cross-species simulcasting.

§ Sets forth regulations regarding deductions and distributions of deductions from live, simulcast, and cross-species simulcast pari-mutuel pools.

§ Sets forth the state's share of pari-mutuel racing pools and provides for the reimbursement of all general revenue debts owed by TRC for the administration and enforcement of the Texas Racing Act.

§ Authorizes TRC to waive any prerequisite to obtaining a license for an applicant who holds a valid license from another state that has license requirements substantially equivalent to those of this state.

§ Requires TRC to adopt rules to prohibit wagering by a minor and to prohibit a minor from entering the viewing section of a racetrack unless accompanied by the child's parent or guardian.

§ Sets forth regulations regarding criminal offenses in relation to a racetrack, including forging a pari-mutuel ticket, impersonating a licensee, unlawful influence on racing, and bribery and corrupt influence. Sets forth regulations regarding search and seizure at a racetrack facility.

§ Requires the Texas Lottery Commission (TLC) to employ a director of bingo operations.

§ Increases the maximum prize allowed for a single game of bingo from $500 to $750.

§ Allows an organization to conduct raffles during bingo occasions with prizes valuing no more than $250.

§ Allows an organization to include in an advertisement the amount of a prize offered at a bingo occasion. Also allows TLC to advertise bingo.

§ Provides that a letter of good standing is adequate evidence of an organization's 501(c) exemption.

§ Reduces the fee charged for a license amendment from $25 to $10. Allows an organization to notify TLC of date or time amendments by telephone or facsimile.

§ Prohibits no more than one bingo location from existing under a common roof or over a common foundation.

§ Authorizes TLC to temporarily, rather than summarily, suspend a license.

§ Increases the percent of people allowed to use card-minding devices during a bingo occasion.

§ Allows a system service provider to use bar codes on bingo paper as a means of providing accurate tracking, registering, and accounting.

§ Requires a person designated to conduct and operate bingo games to annually complete eight hours of training as provided by the rules of TLC.

§ Changes the definition of adjusted gross receipts for purposes of calculating the charitable distribution.

§ Requires a person who leases premises on which bingo is conducted to be a licensed commercial lessor if the person leases directly to an organization. Requires an organization that holds a commercial license to lease premises on which bingo is conducted to be licensed to conduct bingo at the same premises.

§ Provides that if a commercial lessor licensee dies, or otherwise becomes incapacitated, that individual's license is part of the individual's estate, and the corresponding licensed organization may continue conducting bingo in accordance with the individual's license. The conduct of bingo may be enjoined by a district court having proper jurisdiction.

§ Requires the estate of the deceased or incapacitated individual to notify TLC within a year of the death or incapacitation, at which time transfer procedures would proceed. A transfer of a license requires the prior approval of TLC. Requires TLC to approve the transfer if the person to whom the license will be transferred otherwise meets the requirements for the license.

§ Prohibits TLC from issuing a commercial lessors license to any person unless TLC receives adequate evidence that any funds used by the person seeking the license to obtain or furnish the premises are the person's own funds or the funds of another person, including certain proceeds of a loan.

§ Provides that certain foreign corporations, an entity controlled by a foreign corporation, a corporation or other legal entity whose shares are publicly traded or a corporation or other legal entity that is owned or controlled by a corporation whose shares are publicly traded, and non-Texas residents, are not eligible for a commercial license or to renew a commercial license to lease bingo premises to a licensed authorized organization.

§ Requires the executive director of the Texas Lottery Commission to deduct court-ordered child support payments or delinquent taxes from a person's lottery winnings, if the winnings are paid in periodic installments and the prize is in excess of $600. Sets forth other types of obligations which are subject to deduction.