1-1     By:  Junell (Senate Sponsor - Armbrister)             H.B. No. 3370

 1-2           (In the Senate - Received from the House May 5, 1997;

 1-3     May 6, 1997, read first time and referred to Committee on State

 1-4     Affairs; May 16, 1997, reported adversely, with favorable Committee

 1-5     Substitute by the following vote:  Yeas 13, Nays 0; May 16, 1997,

 1-6     sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 3370              By:  Armbrister

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to a gift, political contribution or activity of an

1-11     officer or employee of the Texas Lottery Commission or a former

1-12     officer or employee of the Texas Lottery Commission.

1-13           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-14           SECTION 1.  Section 467.001, Government Code, is amended to

1-15     read as follows:

1-16           Sec. 467.001.  DEFINITIONS.      In this chapter:

1-17                 (1)  "Commission" means the Texas Lottery Commission.

1-18                 (2)  "Executive director" means the executive director

1-19     of the Texas Lottery Commission.

1-20                 (3)  "Communicate directly with" has the meaning

1-21     assigned by Section 305.002, Government Code.

1-22                 (4)  "Gift" includes a gratuity, trip, meal, or other

1-23     thing of value for which the recipient does not compensate the

1-24     person making the gift and that is not conferred on account of

1-25     kinship or a personal, professional, or business relationship

1-26     independent of the official status of the recipient.

1-27                 (5)  "Legislation" has the meaning assigned by Section

1-28     305.002.

1-29                 (6)  "Member of the legislative branch" has the meaning

1-30     assigned by Section 305.002.

1-31                 (7)  "Participated" means to have taken action as an

1-32     officer or employee through decision, approval, disapproval,

1-33     recommendation, giving advice, or similar action.

1-34                 (8)  "Particular matter" includes an investigation, an

1-35     application, a request for a ruling or determination, a license

1-36     proceeding, rulemaking, a contract, a controversy, a claim, a

1-37     charge, an accusation, an arrest, or a judicial or other

1-38     proceeding.

1-39                 (9)  "Person that has a significant financial interest

1-40     in the lottery" means:

1-41                       (A)  a person or a board member, officer,

1-42     trustee, or general partner of a person that manufactures,

1-43     distributes, sells, or produces lottery equipment, supplies,

1-44     services, or advertising;

1-45                       (B)  an employee of a person that manufactures,

1-46     distributes, sells, or produces lottery equipment, supplies,

1-47     services, or advertising and that employee is directly involved in

1-48     the manufacturing, distribution, selling, or production of lottery

1-49     equipment, supplies, services, or advertising;

1-50                       (C)  a person or a board member, officer,

1-51     trustee, or general partner of a person that has made a bid to

1-52     operate the lottery in the preceding two years or that intends to

1-53     make a bid to operate the lottery or an employee of the person if

1-54     the employee is directly involved in making the bid; or

1-55                       (D)  a sales agent.

1-56                 (10)  "Political committee" has the meaning assigned by

1-57     Section 251.001, Election Code.

1-58                 (11)  "Political contribution" has the meaning assigned

1-59     by Section 251.001, Election Code.

1-60           SECTION 2.  Subchapter C, Chapter 467, Government Code, is

1-61     amended by adding Section 467.106 to read as follows:

1-62           Sec. 467.106.  GIFT OR POLITICAL CONTRIBUTION TO OFFICER OR

1-63     EMPLOYEE.  (a)  A commission member, the executive director, or an

1-64     employee of the commission may not intentionally or knowingly

 2-1     accept a gift or political contribution from:

 2-2                 (1)  a person that has a significant financial interest

 2-3     in the lottery;

 2-4                 (2)  a person related in the first degree of

 2-5     consanguinity or affinity to a person that has a significant

 2-6     financial interest in the lottery;

 2-7                 (3)  a person that owns more than a 10 percent interest

 2-8     in an entity that has a significant financial interest in the

 2-9     lottery;

2-10                 (4)  a political committee that is directly

2-11     established, administered, or controlled, in whole or in part, by a

2-12     person that has a significant financial interest in the lottery; or

2-13                 (5)  a person who, within the two years preceding the

2-14     date of the gift or contribution, won a lottery prize exceeding

2-15     $600 in amount or value.

2-16           (b)  A person may not make a gift or political contribution

2-17     to a person known by the actor to be a commission member, the

2-18     executive director, or an employee of the commission, if the actor:

2-19                 (1)  has a significant financial interest in the

2-20     lottery;

2-21                 (2)  is related in the first degree of consanguinity or

2-22     affinity to a person that has a significant financial interest in

2-23     the lottery;

2-24                 (3)  owns more than a 10 percent interest in an entity

2-25     that has a significant financial interest in the lottery;

2-26                 (4)  is a political committee that is directly

2-27     established, administered, or controlled, in whole or in part, by a

2-28     person that has a significant financial interest in the lottery; or

2-29                 (5)  within the two years preceding the date of the

2-30     gift or contribution, won a lottery prize exceeding $600 in amount

2-31     or value.

2-32           (c)  A person commits an offense if the person violates this

2-33     section.  An offense under this section is a Class A misdemeanor.

2-34           SECTION 3.  Subchapter C, Chapter 467, Government Code, is

2-35     amended by adding Section 467.107 to read as follows:

2-36           Sec. 467.107.  GIFT OR POLITICAL CONTRIBUTION TO FORMER

2-37     OFFICER OR EMPLOYEE.  (a)  A former commission member, former

2-38     executive director, or former employee of the commission may not,

2-39     before the second anniversary of the date that the person's service

2-40     in office or employment with the commission ceases, intentionally

2-41     or knowingly accept a gift or political contribution from:

2-42                 (1)  a person that has a significant financial interest

2-43     in the lottery;

2-44                 (2)  a person related in the first degree of

2-45     consanguinity or affinity to a person that has a significant

2-46     financial interest in the lottery;

2-47                 (3)  a person that owns more than a 10 percent interest

2-48     in an entity that has a significant financial interest in the

2-49     lottery;

2-50                 (4)  a political committee that is directly

2-51     established, administered, or controlled, in whole or in part, by a

2-52     person that has a significant financial interest in the lottery; or

2-53                 (5)  a person who, within the two years preceding the

2-54     date of the gift or contribution, won a lottery prize exceeding

2-55     $600 in amount or value.

2-56           (b)  A person may not make a gift or political contribution

2-57     to a person known by the actor to be a former commission member,

2-58     former executive director, or former employee of the commission, if

2-59     the actor:

2-60                 (1)  has a significant financial interest in the

2-61     lottery;

2-62                 (2)  is related in the first degree of consanguinity or

2-63     affinity to a person that has a significant financial interest in

2-64     the lottery;

2-65                 (3)  owns more than a 10 percent interest in an entity

2-66     that has a significant financial interest in the lottery;

2-67                 (4)  is a political committee that is directly

2-68     established, administered, or controlled, in whole or in part, by a

2-69     person that has a significant financial interest in the lottery; or

 3-1                 (5)  within the two years preceding the date of the

 3-2     gift or contribution, won a lottery prize exceeding $600 in amount

 3-3     or value.

 3-4           (c)  A person commits an offense if the person violates this

 3-5     section.  An offense under this section is a Class A misdemeanor.

 3-6           SECTION 4.  Subchapter C, Chapter 467, Government Code, is

 3-7     amended by adding Section 467.108 to read as follows:

 3-8           Sec. 467.108.  REPRESENTATION BY FORMER OFFICER OR EMPLOYEE.

 3-9     (a)  A former commission member, former executive director, or

3-10     former director may not:

3-11                 (1)  for compensation, represent a person that has made

3-12     or intends to make a bid to operate the lottery before the

3-13     commission before the second anniversary of the date that the

3-14     person's service in office or employment with the commission

3-15     ceases;

3-16                 (2)  represent any person or receive compensation for

3-17     services rendered on behalf of any person regarding a particular

3-18     matter in which the former officer or employee participated during

3-19     the period of service or employment with the commission, either

3-20     through personal involvement or because the matter was within the

3-21     scope of the officer's or employee's official responsibility; or

3-22                 (3)  for compensation communicate directly with a

3-23     member of the legislative branch to influence legislation on behalf

3-24     of a person that has a significant financial interest in the

3-25     lottery, before the second anniversary of the date that the

3-26     person's service in office or employment with the commission

3-27     ceases.

3-28           (b)  A person commits an offense if the person violates this

3-29     section.  An offense under this section is a Class A misdemeanor.

3-30           SECTION 5.  Sections 466.301, 466.314, 466.315, 466.316, and

3-31     467.025(c), Government Code, are repealed.

3-32           SECTION 6.  This Act takes effect September 1, 1997.

3-33           SECTION 7.  The importance of this legislation and the

3-34     crowded condition of the calendars in both houses create an

3-35     emergency and an imperative public necessity that the

3-36     constitutional rule requiring bills to be read on three several

3-37     days in each house be suspended, and this rule is hereby suspended.

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