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 * * * * *