SRC-DPW H.B. 550 76(R) BILL ANALYSIS Senate Research Center H.B. 550 76R3208 AJA-FBy: Goolsby (Shapiro) Finance 5/11/1999 Engrossed DIGEST Currently, Texas law prohibits the executive director of the Texas Lottery Commission (commission) from awarding a contract related to lottery operations to an individual who would be denied a sales agent license. Also, a member, officer, or employee of a person who contracts with the commission is prohibited from purchasing a lottery ticket and from claiming, collecting, or receiving a lottery prize even if the employee is not directly involved in the subject of the contract with the commission. This bill would authorize the executive director to award a contract to a person for the purpose of conducting a promotional event and prohibit 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. PURPOSE As proposed, H.B. 550 sets forth eligibility criteria for persons to enter into a lottery contract or to purchase a lottery ticket or receive a lottery prize. RULEMAKING AUTHORITY This bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 466.103, Government Code, to prohibit the executive director of the Texas Lottery Commission (director) from awarding certain contracts to a person who would be denied a license as a sales agent under Section 466.155, except as provided by Subsection (b). Provides that Subsection (a) does not prohibit the director from awarding a contract to a person for the purpose of conducting a promotional event. SECTION 2. Amends Section 466.254, Government Code, to prohibit a member, officer, or employee of a person (person) that has a contract with the Texas Lottery Commission (commission) to sell or lease goods or services used in the operation of the lottery, or if the person is directly involved in selling or leasing the goods or performing the services that are the subject of the contract with the commission, from purchasing a lottery ticket. SECTION 3.Effective date: September 1, 1999. Makes application of this Act prospective. SECTION 4. Emergency clause.