1-1     By:  Hunter (Senate Sponsor - Fraser)                  H.B. No. 998

 1-2           (In the Senate - Received from the House May 16, 1997;

 1-3     May 16, 1997, read first time and referred to Committee on

 1-4     Intergovernmental Relations; May 17, 1997, reported favorably by

 1-5     the following vote:  Yeas 9, Nays 0; May 17, 1997, sent to

 1-6     printer.)

 1-7                            A BILL TO BE ENTITLED

 1-8                                   AN ACT

 1-9     relating to the conflict-of-interests prohibition applying to a

1-10     local official who has a substantial interest in a business entity.

1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-12           SECTION 1.  Section 171.002(a), Local Government Code, is

1-13     amended to read as follows:

1-14           (a)  For purposes of this chapter, a person has a substantial

1-15     interest in a business entity if:

1-16                 (1)  the person owns 10 percent or more of the voting

1-17     stock or shares of the business entity or owns either 10 percent or

1-18     more or $15,000 [$5,000] or more of the fair market value of the

1-19     business entity; or

1-20                 (2)  funds received by the person from the business

1-21     entity exceed 10 percent of the person's gross income for the

1-22     previous year.

1-23           SECTION 2.  The change in law made by this Act to Section

1-24     171.002, Local Government Code, does not affect a violation  of

1-25     Chapter 171, Local Government Code, that occurred before the

1-26     effective date of this Act.  The prior violation may be prosecuted

1-27     and a penalty imposed as if the law had not been changed by this

1-28     Act, and the former law is continued in effect for that purpose.

1-29           SECTION 3.  The importance of this legislation and the

1-30     crowded condition of the calendars in both houses create an

1-31     emergency and an imperative public necessity that the

1-32     constitutional rule requiring bills to be read on three several

1-33     days in each house be suspended, and this rule is hereby suspended,

1-34     and that this Act take effect and be in force from and after its

1-35     passage, and it is so enacted.

1-36                                  * * * * *