Amend SB 365 by striking SECTION 3 of the bill (introduced
version, page 4, lines 6-27 and page 5, lines 1-25) and
substituting a new SECTION 3 to read as follows:
      SECTION 3.  Section 2054.022, Government Code, is amended to
read as follows:
      Sec. 2054.022.  CONFLICT OF INTEREST. (a)  A member of the
board or an employee of the department may not:
            (1)  be a person required to register as a lobbyist
under Chapter 305 because of the person's activities for
compensation on behalf of a business entity that has, or on behalf
of a trade association of business entities that have, a
substantial interest in the information resources technologies
industry;
            (2)  be an officer, employee, or paid consultant of a
business entity that has, or of a trade association of business
entities that have, a substantial interest in the information
resources technologies industry and that may contract with state
government;
            (3)  own, control, or have, directly or indirectly,
more than a 10 percent interest in a business entity that has a
substantial interest in the information resources technologies
industry and that may contract with state government;
            (4)  receive more than 25 percent of the individual's
income from a business entity that has a substantial interest in
the information resources technologies industry and that may
contract with state government;
            (5)  be interested in or connected with a contract or
bid for furnishing a state agency with information resources
technologies;
            (6)  be employed by a state agency as a consultant on
information resources technologies; or
            (7)  accept or receive money or another thing of value
from an individual, firm, or corporation to whom a contract may be
awarded, directly or indirectly, by rebate, gift, or otherwise.
      (b)  A person who is the spouse of an officer, employee, or
paid consultant of a business entity that has, or of a trade
association of business entities that have, a substantial interest
in the information resources technologies industry and that may
contract with state government may not be:
            (1)  a member of the board; or
            (2)  an employee of the department who:
                  (A)  is exempt from the state's position
classification plan; or
                  (B)  is compensated at or above the amount
prescribed by the General Appropriations Act for step 1, salary
group 17, of the position classification salary schedule.
      (c)  For the purposes of this section, a trade association is
a nonprofit, cooperative, and voluntarily joined association of
business or professional competitors in this state designed to
assist its members and its industry or profession in dealing with
mutual business or professional problems and in promoting their
common interest.
      (d)  The executive director shall dismiss an employee of the
department who violates a prohibition under Subsection (a), and the
board shall remove the executive director if the executive director
violates a prohibition under Subsection (a).