By:  Barrientos                                        S.B. No. 534
       73R5907 SOS-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to certain conflicts of interest for members of the
    1-3  Railroad Commission of Texas.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Article 6447, Revised Statutes, is amended to
    1-6  read as follows:
    1-7        Art. 6447.  THE COMMISSION.  Election.--The Railroad
    1-8  Commission of Texas shall be composed of three members, one of whom
    1-9  shall be elected biennially at each general election for a term of
   1-10  six years.
   1-11        Qualifications.--The members shall be resident citizens of
   1-12  this State, and qualified voters under the Constitution and laws,
   1-13  and not less than twenty-five years of age.  A <No> member may not
   1-14  <shall> be directly or indirectly interested in any entity or
   1-15  industry regulated by the Commission <railroad>, or in any stock,
   1-16  bond, mortgage, security, or earnings of any entity or industry
   1-17  regulated by the Commission.  If <railroad, and should> a member
   1-18  knowingly acquires an interest in an entity or industry regulated
   1-19  by the Commission, the member's <voluntarily become so interested
   1-20  his> office shall become vacant.  If a member acquires, without the
   1-21  member's knowledge, an interest in an entity or industry regulated
   1-22  by the Commission, or if the member has an interest before or at
   1-23  the time the member takes the oath of office, the member<, or
   1-24  should he become so interested otherwise than voluntarily, he>
    2-1  shall, within a reasonable time as provided by Texas Ethics
    2-2  Commission rule, divest the <himself of such> interest or transfer
    2-3  the interest to a qualified blind trust, as defined by 5 U.S.C.
    2-4  Section 202(f)(3) and its subsequent amendments.  A member, on a
    2-5  form prescribed by the Texas Ethics Commission, shall disclose the
    2-6  member's interest and each interest in an entity or industry
    2-7  regulated by the Commission that is held by an individual related
    2-8  to the member within the second degree by consanguinity or
    2-9  affinity.  The disclosure shall be filed with the Texas Ethics
   2-10  Commission within the time prescribed by the Texas Ethics
   2-11  Commission.  If a member fails to divest or transfer an interest as
   2-12  required by this article, the member's<, failing to do this, his>
   2-13  office shall become vacant.
   2-14        Shall hold no other office, etc.--No commissioner shall hold
   2-15  any other office of any character, while such commissioner, nor
   2-16  engage in any occupation or business inconsistent with his duties
   2-17  as such commissioner.
   2-18        Oath, etc.--Before entering upon the duties of his office,
   2-19  each commissioner shall take and subscribe to the official oath and
   2-20  shall in addition thereto, swear that he is not directly or
   2-21  indirectly interested in any railroad, nor in the bonds, stock,
   2-22  mortgages, securities, contracts, or earnings of any railroad, and
   2-23  that he will to the best of his ability faithfully and justly
   2-24  execute and enforce the provisions of this title, and all laws of
   2-25  this State concerning railroads, which oath shall be filed with the
   2-26  Secretary of State.
   2-27        Organization.--The commissioners shall elect one of their
    3-1  number chairman.  They may make all rules necessary for their
    3-2  government and proceedings.  They shall be known collectively as
    3-3  the "Railroad Commission of Texas," and shall have a seal, a star
    3-4  of five points with the words "Railroad Commission of Texas"
    3-5  engraved thereon.  They shall be furnished necessary furniture,
    3-6  stationery, supplies and all necessary expenses, to be paid for on
    3-7  the order of the Governor.
    3-8        Expenses.--The Commissioners shall receive from the State
    3-9  their necessary traveling expenses while traveling on the business
   3-10  of the Commission, which shall include the cost only of
   3-11  transportation while traveling on business for the Commission, upon
   3-12  an itemized statement thereof, sworn to by the party who incurred
   3-13  the expense, and approved by the Commission.  Employees of the
   3-14  Commission are entitled to reimbursement for expenses incurred in
   3-15  traveling on the business of the Commission as provided by the
   3-16  General Appropriations Act.
   3-17        Sessions.--The Commission may hold its sessions at any place
   3-18  in this State when deemed necessary.
   3-19        SECTION 2.  Section 1.11(a), Chapter 304, Acts of the 72nd
   3-20  Legislature, Regular Session, 1991 (Article 6252-9d.1, Vernon's
   3-21  Texas Civil Statutes), is amended to read as follows:
   3-22        (a)  The commission shall:
   3-23              (1)  administer and enforce Chapters 302 and 305,
   3-24  Government Code; Title 15, Election Code; and Chapter 421, Acts of
   3-25  the 63rd Legislature, Regular Session, 1973 (Article 6252-9b,
   3-26  Vernon's Texas Civil Statutes); and perform any other powers or
   3-27  duties given to the commission under those laws or under another
    4-1  law;
    4-2              (2)  prescribe forms for statements and reports
    4-3  required to be filed with the commission and provide for the
    4-4  distribution of the forms;
    4-5              (3)  adopt by rule and publish a manual that
    4-6  establishes uniform methods of accounting and reporting for use by
    4-7  persons required to file statements and reports with the commission
    4-8  and that includes a digest of each advisory opinion issued by the
    4-9  commission under Section 1.29 of this article;
   4-10              (4)  make a report by December 31 of each even-numbered
   4-11  year to the governor and legislature that includes each advisory
   4-12  opinion issued by the commission under Section 1.29 of this article
   4-13  in the preceding two years and that recommends any necessary
   4-14  statutory changes;
   4-15              (5)  provide training by January of each odd-numbered
   4-16  year for members and members-elect of the legislature concerning
   4-17  compliance with the laws administered and enforced by the
   4-18  commission;
   4-19              (6)  provide a program of ethics training for state
   4-20  employees in cooperation with state agencies;
   4-21              (7)  require each regulatory executive branch agency to
   4-22  develop rules limiting the acceptance of gifts or other benefits
   4-23  from persons appearing before or regulated by the agency that are
   4-24  at least as restrictive as the rules of the commission and provide
   4-25  for the submission of the rules to the commission for approval; and
   4-26              (8)  assign an account number to each person required
   4-27  to file a statement or report with the commission under a law
    5-1  administered and enforced by the commission.
    5-2        SECTION 3.  The importance of this legislation and the
    5-3  crowded condition of the calendars in both houses create an
    5-4  emergency and an imperative public necessity that the
    5-5  constitutional rule requiring bills to be read on three several
    5-6  days in each house be suspended, and this rule is hereby suspended,
    5-7  and that this Act take effect and be in force from and after its
    5-8  passage, and it is so enacted.