AN ACT

 1-1     relating to the acceptance of gifts by state agencies.

 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-3           SECTION 1.  Subtitle B, Title 5, Government Code, is amended

 1-4     by adding Chapter 575 to read as follows:

 1-5              CHAPTER 575.  ACCEPTANCE OF GIFT BY STATE AGENCY

 1-6           Sec. 575.001.  DEFINITIONS.  In this chapter:

 1-7                 (1)  "Gift" means a donation of money or property.

 1-8                 (2)  "State agency" means a board, commission, council,

 1-9     committee, department, office, agency, or other governmental entity

1-10     in the executive or judicial branch of state government.  The term

1-11     does not include an institution of higher education as defined by

1-12     Section 61.003, Education Code.

1-13           Sec. 575.002.  GIFTS OF $500 OR MORE.  This chapter applies

1-14     only to a gift that has a value of $500 or more.

1-15           Sec. 575.003.  ACCEPTANCE OF GIFT BY STATE AGENCY GOVERNING

1-16     BOARD.  A state agency that has a governing board may accept a gift

1-17     only if the agency has the authority to accept the gift and a

1-18     majority of the board, in an open meeting, approves accepting the

1-19     gift.

1-20           Sec. 575.004.  RECORD OF GIFT.  A state agency that accepts a

1-21     gift must record the name of the donor, a description of the gift,

1-22     and a statement of the purpose of the gift in:

1-23                 (1)  the minutes of the governing board of the agency;

 2-1     or

 2-2                 (2)  appropriate agency records, if the agency does not

 2-3     have a governing board.

 2-4           Sec. 575.005.  ACCEPTANCE OF GIFT FROM PARTY TO CONTESTED

 2-5     CASE PROHIBITED.  A state agency may not accept a gift from a

 2-6     person who is a party to a contested case before the agency until

 2-7     the 30th day after the date the decision in the case becomes final

 2-8     under Section 2001.144.  In this section, "contested case" has the

 2-9     meaning assigned by Section 2001.003.

2-10           SECTION 2.  Section 401.031, Government Code, is amended to

2-11     read as follows:

2-12           Sec. 401.031.  ACCEPTANCE OF GIFTS, GRANTS, AND DONATIONS BY

2-13     THE GOVERNOR.  [(a)]  The office of the governor may solicit and

2-14     accept gifts, grants, and donations of money or property on  behalf

2-15     of the state for any lawful public purpose [related to the office

2-16     of governor].

2-17           [(b)  The governor may decline to accept a gift, grant, or

2-18     donation that is made for a specific purpose if the governor

2-19     determines the gift may not be used reasonably or economically for

2-20     the designated purpose.]

2-21           SECTION 3.  The importance of this legislation and the

2-22     crowded condition of the calendars in both houses create an

2-23     emergency and an imperative public necessity that the

2-24     constitutional rule requiring bills to be read on three several

2-25     days in each house be suspended, and this rule is hereby suspended,

                                                                S.B. No. 145

 3-1     and that this Act take effect and be in force from and after its

 3-2     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 145 passed the Senate on

         February 3, 1997, by the following vote:  Yeas 27, Nays 0; and that

         the Senate concurred in House amendment on May 13, 1997, by a

         viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 145 passed the House, with

         amendment, on May 7, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor