1-1                                   AN ACT

 1-2     relating to the conflict-of-interests prohibition applying to a

 1-3     local official who has a substantial interest in a business entity.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 171.002(a), Local Government Code, is

 1-6     amended to read as follows:

 1-7           (a)  For purposes of this chapter, a person has a substantial

 1-8     interest in a business entity if:

 1-9                 (1)  the person owns 10 percent or more of the voting

1-10     stock or shares of the business entity or owns either 10 percent or

1-11     more or $15,000 [$5,000] or more of the fair market value of the

1-12     business entity; or

1-13                 (2)  funds received by the person from the business

1-14     entity exceed 10 percent of the person's gross income for the

1-15     previous year.

1-16           SECTION 2.  The change in law made by this Act to Section

1-17     171.002, Local Government Code, does not affect a violation  of

1-18     Chapter 171, Local Government Code, that occurred before the

1-19     effective date of this Act.  The prior violation may be prosecuted

1-20     and a penalty imposed as if the law had not been changed by this

1-21     Act, and the former law is continued in effect for that purpose.

1-22           SECTION 3.  The importance of this legislation and the

1-23     crowded condition of the calendars in both houses create an

1-24     emergency and an imperative public necessity that the

 2-1     constitutional rule requiring bills to be read on three several

 2-2     days in each house be suspended, and this rule is hereby suspended,

 2-3     and that this Act take effect and be in force from and after its

 2-4     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 998 was passed by the House on May

         16, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 998 was passed by the Senate on May

         24, 1997, by the following vote:  Yeas 30, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor