By Krusee H.B. No. 884
75R292 ESH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to personal financial disclosure statements filed by
1-3 certain county and district officers and candidates.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter A, Chapter 159, Local Government Code,
1-6 is amended to read as follows:
1-7 SUBCHAPTER A. FINANCIAL DISCLOSURE BY CERTAIN COUNTY
1-8 OR DISTRICT OFFICERS
1-9 Sec. 159.001. [COUNTY COVERED BY SUBCHAPTER. This
1-10 subchapter applies only to a county with a population of 500,000 or
1-11 more.]
1-12 [Sec. 159.002.] DEFINITIONS. In this subchapter:
1-13 (1) "Business entity" means a sole proprietorship,
1-14 partnership, firm, corporation, holding company, joint stock
1-15 company, receivership, trust, or any other entity recognized by law
1-16 through which business for profit is conducted.
1-17 (2) "County or district officer" means a county judge,
1-18 county commissioner, county attorney, district attorney, [or]
1-19 criminal district attorney, or judge of a statutory county court or
1-20 statutory probate court.
1-21 Sec. 159.002 [159.003. DETERMINATION OF SUBSTANTIAL
1-22 INTEREST. A person has a substantial interest in a business entity
1-23 if the person:]
1-24 [(1) has controlling interest in the business entity;]
2-1 [(2) has ownership in excess of 10 percent of the
2-2 voting interest in the business entity or in excess of $25,000 of
2-3 the fair market value of the business entity;]
2-4 [(3) has any participating interest, either direct or
2-5 indirect, by shares, stock, or otherwise, whether or not voting
2-6 rights are included, in the profits, proceeds, or capital gains of
2-7 the business entity in excess of 10 percent of them;]
2-8 [(4) holds the position of a member of the board of
2-9 directors or other governing board of the business entity;]
2-10 [(5) serves as an elected officer of the business
2-11 entity; or]
2-12 [(6) is an employee of the business entity.]
2-13 [Sec. 159.004]. FINANCIAL STATEMENT REQUIRED. (a) A county
2-14 or district officer or a candidate for a county or district office
2-15 shall file a financial statement as required by this subchapter.
2-16 (b) The statement must [be]:
2-17 (1) be filed with:
2-18 (A) the county auditor of the county in which
2-19 the officer or candidate resides, if the county has a county
2-20 auditor; or
2-21 (B) the county clerk of the county in which the
2-22 officer or candidate resides, if the county does not have a county
2-23 auditor; and
2-24 (2) comply with Sections 572.022 and 572.023,
2-25 Government Code [filed on the form provided by the county auditor;
2-26 and]
2-27 [(3) verified].
3-1 [Sec. 159.005. CONTENTS OF FINANCIAL STATEMENT. (a) The
3-2 financial statement must include an account of the financial
3-3 activity of the county or district officer or candidate for a
3-4 county or district office and an account of the financial activity
3-5 of the person's spouse and dependent children if the person had
3-6 actual control over that activity for the preceding calendar year.]
3-7 [(b) The account of financial activity consists of:]
3-8 [(1) a list of all sources of occupational income,
3-9 identified by employer, or if self-employed, by the nature of the
3-10 occupation, including identification of any person, business
3-11 entity, or other organization from which the person or a business
3-12 in which the person has a substantial interest received a fee as a
3-13 retainer for a claim on future services in case of need, as opposed
3-14 to a fee for services on a matter specified at the time of
3-15 contracting for or receiving the fee, whenever professional or
3-16 occupational services were not actually performed during the
3-17 reporting period equal to or in excess of the amount of the
3-18 retainer, and the category of the amount of the fee;]
3-19 [(2) identification by name and category of the number
3-20 of shares of stock of any business entity held or acquired and, if
3-21 sold, the category of the amount of net gain or loss realized from
3-22 the sale;]
3-23 [(3) a list of all bonds, notes, and other commercial
3-24 paper held or acquired and, if sold, the category of the amount of
3-25 net gain or loss realized from the sale;]
3-26 [(4) identification of each source and the category of
3-27 the amount of income in excess of $500 derived per source from
4-1 interest, dividends, royalties, and rents;]
4-2 [(5) identification of each person or financial
4-3 institution to whom a personal note or notes for a total financial
4-4 liability in excess of $1,000 existed at any time during the year,
4-5 and the category of the amount of the liability;]
4-6 [(6) identification by description of all beneficial
4-7 interests in real property and business entities held or acquired
4-8 and, if sold, the category of the amount of the net gain or loss
4-9 realized from the sale;]
4-10 [(7) identification of any person, business entity, or
4-11 other organization from which the person or the person's spouse or
4-12 dependent children received a gift of money or property in excess
4-13 of $250 in value or a series of gifts of money or property, the
4-14 total of which exceeds $250 in value received from the same source,
4-15 and a description of each gift, except gifts received from persons
4-16 related to the person at any time within the second degree by
4-17 consanguinity or affinity and campaign contributions that were
4-18 reported as required by law;]
4-19 [(8) identification of the source and the category of
4-20 the amount of all income received as beneficiary of a trust and
4-21 identification of each asset, if known to the beneficiary, from
4-22 which income was received by the beneficiary in excess of $500;]
4-23 [(9) identification by description and category of the
4-24 amount of all assets and liabilities of any corporation in which 50
4-25 percent or more of the outstanding stock was held, acquired, or
4-26 sold; and]
4-27 [(10) a list of all boards of directors of which the
5-1 person is a member and executive positions that the person holds in
5-2 corporations, firms, partnerships, and proprietorships, stating the
5-3 name of each corporation, firm, partnership, or proprietorship and
5-4 the position held.]
5-5 [Sec. 159.006. REPORTING CATEGORIES. (a) If an amount is
5-6 required to be reported by category, the person filing the
5-7 statement shall report whether the amount is less than $1,000, at
5-8 least $1,000 but less than $5,000, or $5,000 or more.]
5-9 [(b) The person filing the statement shall report an amount
5-10 of stock by category of number of shares instead of by category of
5-11 dollar value and shall report whether the amount is less than 100
5-12 shares, at least 100 but less than 500 shares, or 500 shares or
5-13 more.]
5-14 [(c) The person filing the statement shall report a
5-15 description of real property by the number of lots or number of
5-16 acres, as applicable, in each county and the name of the county.]
5-17 [Sec. 159.007. DETERMINATION OF DEPENDENT CHILD. A person's
5-18 natural child, adopted child, or stepchild is the person's
5-19 dependent child during a calendar year if the person provides over
5-20 50 percent of the child's support during the year.]
5-21 Sec. 159.003 [159.008]. FILING DATES; TIMELINESS OF FILING
5-22 [FOR OFFICERS]. (a) A county or district officer shall file the
5-23 financial statement required by this subchapter within the time
5-24 prescribed by Section 572.026, Government Code. A candidate for
5-25 office as a county or district officer shall file the financial
5-26 statement required by this subchapter within the time prescribed by
5-27 Section 572.027, Government Code.
6-1 (b) The timeliness of the filing is governed by Section
6-2 572.029, Government Code [Not later than the last Friday in April
6-3 of each year, a county or district officer shall file the financial
6-4 statement required by this subchapter].
6-5 [(b) A person who is appointed to a county or district
6-6 office or to fill a vacancy in a county or district office shall
6-7 file the first financial statement not later than the 30th day
6-8 after the date of appointment.]
6-9 (c) A county or district officer may request the county
6-10 auditor or county clerk, as applicable, to grant an extension of
6-11 time of not more than 60 days for filing the statement. The county
6-12 auditor or county clerk shall grant the request if it is received
6-13 before the filing deadline or if a timely filing or request for
6-14 extension is prevented because of physical or mental incapacity.
6-15 The county auditor or county clerk may not grant more than one
6-16 extension to a person in one year except for good cause shown.
6-17 [Sec. 159.009. FILING DATES FOR CANDIDATES. (a) Not later
6-18 than the 40th day after the date of the regular filing deadline for
6-19 an application for a place on the ballot in the general primary
6-20 election, a person who is a candidate for a county or district
6-21 office, whether partisan or independent, shall file the financial
6-22 statement required by this subchapter.]
6-23 [(b) If the deadline, other than the regular filing deadline
6-24 for an independent candidate, under which a candidate files an
6-25 application for a place on the ballot or a declaration of write-in
6-26 candidacy falls after the date of the regular filing deadline for
6-27 candidates in the general primary election, the candidate shall
7-1 file the financial statement not later than the 30th day after that
7-2 later deadline. However, if that deadline falls within 35 days of
7-3 the date of the election in which the candidate is running, the
7-4 candidate shall file the statement not later than the fifth day
7-5 before that election.]
7-6 [(c) A person nominated as a replacement candidate to fill a
7-7 vacancy in a party nomination for a county or district office shall
7-8 file the financial statement not later than the 15th day after the
7-9 date the certificate of the replacement nomination is filed.]
7-10 (d) The county auditor or county clerk may not grant an
7-11 extension to a candidate for office as a county or district officer
7-12 [for a person required to file under this section].
7-13 Sec. 159.004. PREPARATION OF FORMS. (a) The county auditor
7-14 or county clerk, as applicable, may:
7-15 (1) design a form to be used for filing the financial
7-16 statement required by this subchapter; or
7-17 (2) require that a form designed by the Texas Ethics
7-18 Commission under Chapter 572, Government Code, be used for filing
7-19 the financial statement.
7-20 (b) The county auditor or county clerk shall mail two copies
7-21 of the form to each person required to file under this subchapter
7-22 within the time prescribed by Section 572.030(c), Government Code.
7-23 Sec. 159.005 [159.010]. DUPLICATE STATEMENTS. If a person
7-24 has filed a financial statement under one provision of this
7-25 subchapter covering the preceding calendar year, the person is not
7-26 required to file a financial statement required under another
7-27 provision of this subchapter to cover that same year if, before the
8-1 deadline for filing the statement under the other provision, the
8-2 person notifies the county auditor or county clerk, as applicable,
8-3 in writing that the person has already filed a financial statement
8-4 under this subchapter to cover that year.
8-5 Sec. 159.006 [159.011. TIMELINESS OF FILING. (a) The
8-6 deadline for filing a financial statement required by this
8-7 subchapter is 5 p.m. of the last day designated in the applicable
8-8 provision for filing the statement.]
8-9 [(b) If the last day for filing the financial statement is a
8-10 Saturday, Sunday, or legal state or national holiday, the statement
8-11 is timely if filed on the next regular business day.]
8-12 [(c) A financial statement is timely filed if it is properly
8-13 addressed and placed in the United States Post Office or in the
8-14 hands of a common or contract carrier not later than the last day
8-15 for filing the financial statement. The post office cancellation
8-16 mark or the receipt mark of a common or contract carrier is prima
8-17 facie evidence of the date the statement was deposited with the
8-18 post office or carrier. The person filing the statement may show
8-19 by competent evidence that the actual date of posting was different
8-20 from that shown by the marks.]
8-21 [Sec. 159.012. DUTIES OF COUNTY AUDITOR. (a) The county
8-22 auditor shall prepare forms to be used for filing the financial
8-23 statement under this subchapter that are substantially similar to
8-24 the financial statement forms prepared by the secretary of state
8-25 under Chapter 572, Government Code.]
8-26 [(b) Except as otherwise provided by this section, the
8-27 county auditor shall mail two copies of the financial statement
9-1 form to each person in the county required to file under this
9-2 subchapter.]
9-3 [(c) The forms must be mailed not later than:]
9-4 [(1) the 30th day before the deadline for filing the
9-5 financial statement under Section 159.008(a);]
9-6 [(2) the seventh day after the date of appointment for
9-7 persons required to file under Section 159.008(b);]
9-8 [(3) the 15th day after the deadline for filing an
9-9 application for a place on the ballot or a declaration of write-in
9-10 candidacy for candidates required to file under Sections 159.009(a)
9-11 and (b); and]
9-12 [(4) the fifth day after the date the certificate of
9-13 the replacement nomination is filed for candidates required to file
9-14 under Section 159.009(c).]
9-15 [(d) The county auditor shall conduct a continuing survey to
9-16 determine whether all persons required to file financial statements
9-17 under this subchapter have actually filed statements in compliance
9-18 with this subchapter.]
9-19 [(e) If the county auditor determines that a person has
9-20 failed to file the statement in compliance with this subchapter,
9-21 the auditor shall send a written statement of the auditor's
9-22 determination to the county attorney or to the district or criminal
9-23 district attorney.]
9-24 [Sec. 159.013]. PUBLIC ACCESS TO STATEMENTS. (a) Financial
9-25 statements filed under this subchapter are public records. The
9-26 county auditor or county clerk, as applicable, shall maintain the
9-27 statements in separate alphabetical files and in a manner that is
10-1 accessible to the public during regular office hours.
10-2 (b) During the one-year period following the date of filing
10-3 of a financial statement, each time a person[, other than the
10-4 county auditor or an employee of the county auditor who is acting
10-5 on official business,] requests to see the financial statement, the
10-6 county auditor or county clerk shall place in the file a statement
10-7 of the person's name and address, whom the person represents, and
10-8 the date of the request. The county auditor or county clerk shall
10-9 retain that statement in the file for one year after the date the
10-10 requested financial statement is filed.
10-11 (c) Subsection (b) does not apply to a request to see a
10-12 financial statement by:
10-13 (1) the county auditor or an employee of the county
10-14 auditor who is acting on official business; or
10-15 (2) the county clerk or an employee of the county
10-16 clerk who is acting on official business, in a county that does not
10-17 have a county auditor.
10-18 (d) The county auditor or county clerk may, and on
10-19 notification from a former officer or candidate shall, destroy any
10-20 financial statements filed by the officer or candidate two years
10-21 after the date the person ceases to be an officer or candidate, as
10-22 applicable.
10-23 Sec. 159.007 [159.014]. CRIMINAL PENALTY. (a) A county or
10-24 district officer or candidate commits an offense if the officer or
10-25 candidate knowingly fails to file a financial statement as required
10-26 by this subchapter.
10-27 (b) An offense under this section is a Class B misdemeanor.
11-1 (c) It is a defense to prosecution under this section that
11-2 the officer or candidate did not receive copies of the financial
11-3 statement form required to be mailed to the officer or candidate by
11-4 this subchapter.
11-5 Sec. 159.008 [159.015]. VENUE. An offense under this
11-6 subchapter, including perjury, may be prosecuted in any county in
11-7 which it may be prosecuted under the Code of Criminal Procedure.
11-8 Sec. 159.009 [159.016]. CIVIL PENALTY. (a) A person who
11-9 determines that a person required to file a financial statement
11-10 under this subchapter has failed to do so may notify in writing:
11-11 (1) the county attorney or criminal district attorney;
11-12 (2) the district attorney, if the person required to
11-13 file the statement is the county attorney; or
11-14 (3) the local administrative district judge, if the
11-15 person required to file the statement is the criminal district
11-16 attorney.
11-17 (b) On receipt of a written notice under Subsection (a), the
11-18 county attorney, district attorney, criminal district attorney, or
11-19 local administrative district judge [The county auditor] shall
11-20 determine from any available evidence whether the person to whom
11-21 the notice relates has failed to file a statement [required to be
11-22 filed under this subchapter is late]. On making that
11-23 determination, the county attorney, district attorney, criminal
11-24 district attorney, or district judge [auditor] shall immediately
11-25 mail by certified mail a notice of the determination to the person
11-26 responsible for filing the statement [and to the county attorney or
11-27 to the district or criminal district attorney].
12-1 (c) [(b)] If [a statement is determined to be late,] the
12-2 person responsible for filing the statement fails to file the
12-3 statement before the 30th day after the person receives the notice
12-4 under Subsection (b), the person is civilly liable to the county
12-5 for an amount not to exceed $1,000 [$100]. If the person
12-6 responsible for filing the statement is the criminal district
12-7 attorney, the commissioners court may appoint an attorney to
12-8 collect the penalty [The county attorney or the district or
12-9 criminal district attorney may not initiate suit for the penalty
12-10 until the 10th day after the date the notice is mailed under this
12-11 section. If the penalty is paid before the 10th day after the
12-12 mailing, the county auditor shall notify the county attorney or the
12-13 district or criminal district attorney, and the civil suit under
12-14 this section may not be initiated].
12-15 (d) [(c)] A penalty paid under this section shall be
12-16 deposited to the credit of the general fund of the county.
12-17 (e) [(d)] This section is cumulative of any other available
12-18 sanctions for late filings of statements.
12-19 SECTION 2. Section 572.027(b), Government Code, is amended
12-20 to read as follows:
12-21 (b) If the deadline under which a candidate files an
12-22 application for a place on the ballot, other than the regular
12-23 filing deadline for an independent candidate, or files a
12-24 declaration of write-in candidacy falls after the date of the
12-25 regular filing deadline for candidates in the general primary
12-26 election, the candidate shall file the financial statement not
12-27 later than the 30th day after that later deadline. However, if
13-1 that deadline falls not later than the 35th day after the date of
13-2 [on which] the election in which the candidate is running, the
13-3 candidate shall file the statement not later than the fifth day
13-4 before the date of that election.
13-5 SECTION 3. Section 572.030(c), Government Code, is amended
13-6 to read as follows:
13-7 (c) The copies must be mailed:
13-8 (1) before the 30th day before the deadline for filing
13-9 the financial statement under Section 572.026(a) or (c), except as
13-10 otherwise provided by this subsection;
13-11 (2) not later than the 15th day after the applicable
13-12 [filing] deadline for filing an application for a place on the
13-13 ballot or a declaration of write-in candidacy for candidates
13-14 required to file under Section 572.027(a), (b), or (c);
13-15 (3) not later than the seventh day after the date of
13-16 appointment for individuals required to file under Section
13-17 572.026(b), or if the legislature is in session, sooner if
13-18 possible; and
13-19 (4) not later than the fifth day after the date the
13-20 certificate of nomination is filed for candidates required to file
13-21 under Section 574.027(d).
13-22 SECTION 4. Subchapter C, Chapter 159, Local Government Code,
13-23 is repealed.
13-24 SECTION 5. (a) The amendments made by this Act to
13-25 Subchapter A, Chapter 159, Local Government Code, apply only to a
13-26 financial disclosure statement under that subchapter that is due on
13-27 or after the effective date of this Act. A financial statement
14-1 under Subchapter A, Chapter 159, Local Government Code, that is due
14-2 before the effective date of this Act is governed by the law in
14-3 effect at the time the financial statement was due, and the former
14-4 law is continued in effect for that purpose.
14-5 (b) The repeal by this Act of Section 159.056, Local
14-6 Government Code, does not apply to an offense committed under that
14-7 section before the effective date of the repeal. An offense
14-8 committed before that date is covered by that section as it existed
14-9 on the date the offense was committed, and the former law is
14-10 continued in effect for this purpose.
14-11 SECTION 6. This Act takes effect September 1, 1997.
14-12 SECTION 7. The importance of this legislation and the
14-13 crowded condition of the calendars in both houses create an
14-14 emergency and an imperative public necessity that the
14-15 constitutional rule requiring bills to be read on three several
14-16 days in each house be suspended, and this rule is hereby suspended.