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.