ANNUAL REPORT.

(a) The department annually shall submit a report to the governor and the legislature that:

(1) includes a summary of lottery revenue, prize disbursements, and other expenses for the state fiscal year preceding the report;

(2) includes a comprehensive business plan to guide the department's major lottery initiatives that contains:

(A) specific goals for the department; and

(B) an evaluation of:

(i) the department's overall performance on lottery operations;

(ii) the effectiveness of specific lottery programs and initiatives;

(iii) the efficiency of the department's lottery operations;

(iv) the amount of lottery revenue generated for state purposes other than the payment of prizes; and

(v) the factors affecting the amount of lottery revenue received and disbursed, including ticket sales and administrative efficiency;

(3) addresses the trends and issues related to violations of state laws under the department's lottery and bingo jurisdiction identified:

(A) in complaints submitted under Section 51.252 as analyzed to identify the trends and issues by alleged violation type and to evaluate the effectiveness of the department's enforcement process; and

(B) through an inspection, audit, or other means of regulating lottery operations under Chapter 466, Government Code, and bingo under Chapter 2001;

(4) includes for the preceding calendar year charitable bingo information on:

(A) the total amount reported by licensed authorized organizations of adjusted gross receipts from bingo operations under Chapter 2001;

(B) the total amount reported by licensed authorized organizations of net proceeds from bingo operations under Chapter 2001; and

(C) a comparison of the amounts reported under Paragraphs (A) and (B), including the percentage the net proceeds represents compared to the adjusted gross receipts; and

(5) provides biennial recommendations to the legislature on emerging trends, technological advancements, regulatory developments, and market dynamics affecting the lottery and bingo industries.

(b) For purposes of Subsection (a)(4):

(1) the term "adjusted gross receipts" means the amount remaining after deducting prizes paid but excluding prize fees collected from bingo players; and

(2) the department shall determine the total amount of net proceeds in a manner that does not reduce gross receipts by the amount of rent paid for the rental of bingo premises by a licensed authorized organization to another licensed authorized organization if the other organization pays rent for the premises to a licensed commercial lessor.