SRC-SLL H.B. 998 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 998
By: Hunter (Fraser)
Intergovernmental Relations
5-17-97
Engrossed


DIGEST 

Chapter 171, Local Government Code, relates to the regulation of conflicts
of interest of officers of municipalities, counties, and certain other
local governments.  The chapter restricts the involvement of a local
official who has a substantial interest in a business entity in any local
decisions regarding that entity.  Currently, a person has a substantial
interest in a business entity if the person owns $5,000 or more of the
fair market value of the entity.  This bill will provide new regulations
regarding the conflict of interests prohibition applying to a local
official who has a substantial interest in a business entity. 

PURPOSE

As proposed, H.B. 998 provides new regulations regarding the conflict of
interests prohibition applying to a local official who has a substantial
interest in a business entity. 

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 171.002(a), Local Government Code, to provide
that a person has a substantial interest in a business entity if the
person owns $15,000, rather than $5,000, or more of the fair market value
of the business entity. 

SECTION 2. Makes application of this Act prospective.

SECTION 3. Emergency clause.
  Effective date: upon passage.