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Enrolled Bill Summary

Enrolled Bill Summary

Legislative Session: 81(R)

House Bill 3445

House Author:  Anchia et al.

Effective:  9-1-09

Senate Sponsor:  Deuell

            House Bill 3445 amends the Government Code to establish that a person is not required to register as a lobbyist with the Texas Ethics Commission solely because the person receives or is entitled to receive compensation or reimbursement to communicate as an employee of a vendor of a product or service to a member of the executive branch concerning state agency purchasing decisions that do not exceed $10 million involving a product, service, or service provider or negotiations regarding such decisions. If the decision exceeds $10 million, the bill extends the exemption to such an employee or to a person who communicates in a capacity other than as such an employee, if the  person's compensation is not totally or partially contingent on the outcome of any administrative action. The bill also extends the exemption if the person receiving the compensation communicates as a member of an advisory committee or task force and has been appointed by a member of the legislative or executive branch or if the person communicates as a member of a board, task force, or advisory committee on which a member of the legislative or executive branch serves. The bill provides that a registered lobbyist who performs any such activities is exempt from certain commission reporting requirements concerning those activities. The bill sets January 1, 2010, as the date by which a person who must register as a lobbyist with the commission solely as a result of these changes in law is required to do so, and sets $50 as the registration and renewal fee.

            House Bill 3445 establishes that the law prohibiting a person from accepting employment or rendering service to influence legislation or administrative action for compensation that is totally or partially contingent on the passage or defeat of any legislation, the governor's approval or veto of any legislation, or the outcome of an administrative decision does not apply to a sales commission payable to an employee of a vendor of a product or service if the amount of the state agency purchasing decision does not exceed $10 million. The law also does not apply to a quarterly or annual compensation performance bonus payable to the employee or to certain commissions or fees paid to an independent contractor of a vendor or paid to a person by a state agency if certain disclosure requirements and other conditions are met. If the amount of compensation or fee payable to an independent contractor is not known at the time of the required disclosure, the registrant must provide other specified information to the commission.  The bill establishes that its provisions do not apply to real estate transactions for properties owned or managed by the permanent school fund or General Land Office. The bill provides that a person registered with the commission is not ineligible to participate in certain contracts, funds, or grants if the person had to register solely because the person communicated directly with a member of the executive branch to influence an administrative decision regarding a state agency's purchase of products or services.

            House Bill 3445 amends the Health and Safety Code to provide that a person registered with the commission is not ineligible to be awarded a contract by the commissioner of public health relating to the public awareness campaign to reduce tobacco use by minors or to participate in the campaign if the person had to register with the commission solely because the person communicated directly with a member of the executive branch to influence an administrative decision regarding a state agency's purchase of products or services.