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. 3-38 * * * * *