Bill not drafted by TLC or Senate E&E. Line and page numbers may not match official copy. By Junell H.B. No. 3370 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to a gift, political contribution or activity of an 1-3 officer or employee of the Texas Lottery Commission or a former 1-4 officer or employee of the Texas Lottery Commission. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Section 467.001, Government Code is amended by 1-7 adding Subsections (3), (4), (5), (6), (7), (8), (9), (10), (11), 1-8 and (12) to read as follows: 1-9 In this chapter: 1-10 (1) "Commission" means the Texas Lottery Commission. 1-11 (2) "Executive Director" means the executive director 1-12 of the Texas Lottery Commission. 1-13 (3) "Communicate directly with" has the meaning 1-14 assigned by Section 305.002, Government Code. 1-15 (4) "Executive Director" means the executive director 1-16 of the Texas Lottery Commission. 1-17 (5) "Gift" includes a gratuity, trip, meal, or other 1-18 thing of value for which the recipient does not compensate the 1-19 person making the gift and it is not conferred on account of 1-20 kinship or a personal, professional or business relationship 1-21 independent of the official status of the recipient. 1-22 (6) "Legislation" has the meaning assigned by Section 1-23 305.002. 1-24 (7) "Member of the legislative branch" has the meaning 2-1 assigned by Section 305.002. 2-2 (8) "Participated" means to have taken action as an 2-3 officer or employee through decision, approval, disapproval, 2-4 recommendation, giving advice, or similar action. 2-5 (9) "Particular matter" includes an investigation, an 2-6 application, a request for a ruling or determination, a license 2-7 proceeding, rulemaking, a contract, a controversy, a claim, a 2-8 charge, an accusation, an arrest, or a judicial or other 2-9 proceeding. 2-10 (10) "Person that has a significant financial interest 2-11 in the lottery" means: 2-12 (A) a board member, officer, trustee or 2-13 fiduciary of a person that manufactures, distributes, sells or 2-14 produces lottery equipment, supplies, services, or advertising; 2-15 (B) an employee of a person that manufactures, 2-16 distributes, sells or produces lottery equipment, supplies, 2-17 services, or advertising and that employee is directly involved in 2-18 the manufacturing, distribution, selling or production of lottery 2-19 equipment; 2-20 (C) a board member, officer, trustee or 2-21 fiduciary of a person that has made a bid to operate the lottery in 2-22 the preceding two years or that intends to make a bid to operate 2-23 the lottery or employee of the person if the employee is directly 2-24 involved making the bid; or 2-25 (D) a sales agent. 2-26 (11) "Political committee" has the meaning assigned by 2-27 Section 251.001, Election Code. 2-28 (12) "Political contribution" has the meaning assigned 2-29 by Section 251.001, Election Code. 2-30 SECTION 2. Chapter 467, Government Code, is amended by 3-1 adding Section 467.106 to read as follows: 3-2 467.106. Gift or Political Contribution to Present or Former 3-3 Officer or Employee 3-4 (a) A commission member, the executive director, or an 3-5 employee of the commission may not intentionally or knowingly 3-6 accept a gift or political contribution from: 3-7 (1) a person that has a significant financial interest 3-8 in the lottery; 3-9 (2) a person related in the first degree of 3-10 consanguinity or affinity to a person that has a significant 3-11 financial interest in the lottery; 3-12 (3) a person that owns more than a 10 percent interest 3-13 in an entity that has a significant financial interest in the 3-14 lottery; 3-15 (4) a political committee that is directly 3-16 established, administered or controlled, in whole or in part, by a 3-17 person that has a significant financial interest in the lottery, or 3-18 (5) a person, who within the two years preceding the 3-19 date of the gift or contribution, won a lottery prize exceeding 3-20 $600 in amount or value. 3-21 (b) A person may not make a gift or political contribution 3-22 to a person known by the actor to be a commission member, the 3-23 executive director, or an employee of the commission, if the actor 3-24 (1) has a significant financial interest in the 3-25 lottery; 3-26 (2) is related in the first degree of consanguinity or 3-27 affinity to a person that has a significant financial interest in 3-28 the lottery; 3-29 (3) owns more than a 10 percent interest in an entity 3-30 that has a significant financial interest in the lottery; 4-1 (4) is a political committee that is directly 4-2 established, administered or controlled, in whole or in part, by a 4-3 person that has a significant financial interest in the lottery; or 4-4 (5) within the 2 years exceeding the date of the gift 4-5 or contribution, won a lottery prize exceeding $600 in amount or 4-6 value. 4-7 (c) A person commits an offense if the person violated this 4-8 section. An offense under this section is a Class A misdemeanor. 4-9 SECTION 3. Chapter 467, Government Code, is amended by 4-10 adding Section 467.107 to read as follows: 4-11 467.107 Gift or Political Contribution to Former Officer or 4-12 Employee 4-13 (a) A former commission member, former executive director, 4-14 or former employee of the commission may not, before the second 4-15 anniversary of the date that the person's service in office or 4-16 employment with the division ceases, intentionally or knowingly 4-17 accept a gift or political contribution from: 4-18 (1) a person that has a significant financial interest 4-19 in the lottery; 4-20 (2) a person related in the first degree of 4-21 consanguinity or affinity to a person that has a significant 4-22 financial interest in the lottery; 4-23 (3) a person that owns more than a 10 percent interest 4-24 in an entity that has a significant financial interest in the 4-25 lottery; 4-26 (4) a political committee that is directly 4-27 established, administered or controlled, in whole or in part, by a 4-28 person that has a significant financial interest in the lottery, or 4-29 (5) a person, who within the two years preceding the 4-30 date of the gift or contribution, won a lottery prize exceeding 5-1 $600 in amount or value. 5-2 (b) A person may not make a gift or political contribution 5-3 to a person known by the actor to be a former commission member, 5-4 former executive director, or former employee of the commission, if 5-5 the actor: 5-6 (1) has a significant financial interest in the 5-7 lottery; 5-8 (2) is related in the first degree of consanguinity or 5-9 affinity to a person that has a significant financial interest in 5-10 the lottery; 5-11 (3) owns more than a 10 percent interest in an entity 5-12 that has a significant financial interest in the lottery; 5-13 (4) is a political committee that is directly 5-14 established, administered or controlled, in whole or in part, by a 5-15 person that has a significant financial interest in the lottery; or 5-16 (5) within the 2 years exceeding the date of the gift 5-17 or contribution, won a lottery prize exceeding $600 in amount or 5-18 value. 5-19 (c) A person commits an offense if the person violated this 5-20 section. An offense under this section is a Class A misdemeanor. 5-21 SECTION 4. Chapter 467, Government Code, is amended by 5-22 adding Section 467.108 to read as follows: 5-23 Sec. 467.108. Representation by Former Officer or Employee 5-24 (a) A former commission member, former executive director, 5-25 or former director may not: 5-26 (1) for compensation, represent a person that has made 5-27 or intends to make a bid to operate the lottery before the 5-28 commission before the second anniversary of the date that the 5-29 person's service in office or employment with the commission 5-30 ceases; 6-1 (2) represent any person or receive compensation for 6-2 services rendered on behalf of any person regarding a particular 6-3 matter in which the former officer or employee participated during 6-4 the period of service or employment with the division, either 6-5 through personal involvement or because the matter was within the 6-6 scope of the officer's or employee's official responsibility; or 6-7 (3) for compensation communicate directly with a 6-8 member of the legislative branch to influence legislation on behalf 6-9 of a person that has a significant financial interest in the 6-10 lottery, before the second anniversary of the date that the 6-11 person's service in office or employment with the commission 6-12 ceases. 6-13 (b) A person commits an offense if the person violated this 6-14 section. An offense under this section is a Class A misdemeanor. 6-15 SECTION 5. Sections 466.301, 466.314, 466.315, and 466.316, 6-16 Government Code, are repealed. 6-17 SECTION 6. This Act takes effect September 1, 1997. 6-18 SECTION 7. The importance of this legislation and the 6-19 crowded condition of the calendars in both houses create an 6-20 emergency and an imperative public necessity that the 6-21 constitutional rule requiring bills to be read on three several 6-22 days in each house be suspended, and this rule is hereby suspended.