HBA-MPA, ALS H.B. 550 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 550
By: Goolsby
Licensing and Administrative Procedures
6/24/1999
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 76th Legislature, the executive director of the Texas Lottery
Commission (commission) was not allowed to award a contract related to
lottery operations to an individual who would be denied a sales agent
license.  In effect, the executive director was prohibited from contracting
with an individual or entity for the purpose of conducting a promotional
event where alcohol may be sold and consumed even if alcohol consumption
was not the primary focus of the event.  In addition, a member, officer, or
employee of a person who contracts with the Texas Lottery Commission was
prohibited from purchasing lottery tickets and from claiming, collecting,
or receiving a lottery prize even if the employee was not directly involved
in the subject of the contract with the commission.  

H.B. 550 allows the executive director to award a contract to a person for
the purpose of conducting a promotional event.  Also, H.B. 550 prohibits a
member, officer, or employee of a contractor from participating in the
Texas Lottery only if the employee is directly involved in performing the
services that are the subject of the contract with the commission. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 466.103, Government Code, by providing that
Subsection (a) does not prohibit the executive director of the Texas
Lottery Commission (commission) from awarding a contract to a person who
would be denied a license under Section 466.155(a)(4)(C) (concerning
certain alcoholic beverage permits) but not under any other provisions of
Section 466.155 (Denial of Application or Suspension or Revocation of
License), to conduct a promotional event.  Makes conforming and
nonsubstantive changes.    

SECTION 2.  Amends Section 466.254(1), Government Code, by prohibiting a
person who is a member, officer, or employee of someone who has a contract
with the commission to sell or lease goods or services used in the
operation of the lottery, and is directly involved in selling or leasing
the goods or services under that contract, from claiming, collecting, or
receiving any share of a lottery prize or purchasing a lottery ticket.   

SECTION 3.  Effective date: September 1, 1999.  
            Makes application of this Act prospective. 

SECTION 4.  Emergency clause.