1-1                                   AN ACT
 1-2     relating to the eligibility of certain persons to enter into a
 1-3     lottery contract or to purchase a lottery ticket or receive a
 1-4     lottery prize.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 466.103, Government Code, is amended to
 1-7     read as follows:
 1-8           Sec. 466.103.  PROHIBITED CONTRACTS.  (a)  Except as provided
 1-9     by Subsection (b), the [The] executive director may not award a
1-10     contract for the purchase or lease of facilities, goods, or
1-11     services related to lottery operations to a person who would be
1-12     denied a license as a sales agent under Section 466.155.
1-13           (b)  Subsection (a) does not prohibit the executive director
1-14     from awarding a contract for the purpose of conducting a
1-15     promotional event to a person who would be denied a license as a
1-16     sales agent under Section 466.155(a)(4)(C) but not under any other
1-17     provision of Section 466.155.
1-18           SECTION 2.  Section 466.254, Government Code, is amended to
1-19     read as follows:
1-20           Sec. 466.254.  PURCHASE OF TICKET BY OR PAYMENT OF PRIZE TO
1-21     CERTAIN PERSONS.  A person may not purchase a ticket or claim,
1-22     collect, or receive a lottery prize or a share of a lottery prize
1-23     if the person is:
1-24                 (1)  a member, officer, or employee of a person that
 2-1     has a contract with the commission to sell or lease goods or
 2-2     services used in the operation of the lottery, and the member,
 2-3     officer, or employee is directly involved in selling or leasing the
 2-4     goods or performing the services that are the subject of the
 2-5     contract with the commission;
 2-6                 (2)  a member, officer, or employee of a lottery
 2-7     operator;
 2-8                 (3)  an officer or employee of the commission; or
 2-9                 (4)  a spouse, child, brother, sister, or parent
2-10     residing as a member of the same household in the principal place
2-11     of residence of a person described by Subdivision (1), (2), or (3).
2-12           SECTION 3.  This Act takes effect September 1, 1999, and
2-13     applies only to a contract awarded, ticket purchased, or prize
2-14     awarded on or after the effective date of this Act.  A contract
2-15     awarded, ticket purchased, or prize awarded before the effective
2-16     date of this Act is governed by the law as it existed immediately
2-17     before the effective date of this Act, and that law is continued in
2-18     effect for that purpose.
2-19           SECTION 4.  The importance of this legislation and the
2-20     crowded condition of the calendars in both houses create an
2-21     emergency and an imperative public necessity that the
2-22     constitutional rule requiring bills to be read on three several
2-23     days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 550 was passed by the House on May 4,
         1999, by a non-record vote; and that the House concurred in Senate
         amendments to H.B. No. 550 on May 26, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 550 was passed by the Senate, with
         amendments, on May 24, 1999, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor