HBA-TYH H.B. 1422 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1422 By: Madden State Affairs 4/13/1999 Introduced BACKGROUND AND PURPOSE Currently, information regarding the future relationship between a running candidate and the entity which the candidate will serve, if elected, is unavailable to the public during an election. Such knowledge might help voters to make a more informed choice with regard to the candidates. This could also lead to increased public confidence in elected officials. H.B. 1422 expands the current reporting requirements for governmental entities and candidates for and holders of public offices to include executory contracts between the individual, or a business entity in which the individual has a substantial interest, and a state agency or county. This bill also provides for a civil offense and a criminal offense of a Class B Misdemeanor. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter B, Chapter 572, Government Code, by adding Section 572.0231, as follows: Sec. 572.0231. INFORMATION ABOUT CONTRACTS WITH GOVERNMENT ENTITIES. (a) Provides that a financial statement under this subchapter must include the identification and amount of any executory contract between the individual required to file the statement, or a business entity in which the individual has a substantial interest, and: _a state agency, if the individual is the secretary of state or an elected officer other than a district judge, a district attorney, or criminal district attorney or is a candidate for an elective office described by this subdivision; _a state agency or the county in which the individual serves, if the individual is a district judge, a district attorney, or criminal district attorney or is a candidate for an office described by this subdivision; or _the state agency of which the individual is an officer, if the individual is a state officer other than an officer described by this section. (b) Provides that for purposes of this section, an individual does not have a substantial interest in a business entity if the individual is an employee of the business entity. SECTION 2. Amends Chapter 601, Government Code, by adding Section 601.009, as follows: Sec. 601.009. STATEMENT CONCERNING CONTRACTS WITH POLITICAL SUBDIVISION. (a) Defines "business entity," "elective office," and "substantial interest." (b) Requires a person who holds or is a candidate for an elective office to file a sworn statement that: _identifies and states the amount of any executory contract between the person or a business entity in which the person has a substantial interest; and the political subdivision served by the office held or sought by the person; or _states that neither the person nor a business entity in which the person has a substantial interest is a party to a contract described by this subsection. (c) Provides that the statement must be on a form prescribed by the Texas Ethics Commission and must be filed with the authority with whom a candidate for the office held or sought is required to file a campaign treasurer appointment under Chapter 252 (Campaign Treasurer), Election Code. Requires an officeholder to file the statement within the time prescribed by Section 572.026 (Filing Dates for State Officers and Party Chairmen). Requires a candidate to file the statement within the time prescribed by Section 572.027 (Filing Dates for Candidates). Provides that the timeliness of the filing is determined by Section 572.029 (Timeliness of Filing). (d) Provides that a statement filed under this section is a public record. Requires the authority with whom a statement is filed to maintain the statement in a manner that is accessible to the public during regular business hours. (e) Provides that if a statement required under this section is determined to be late, the person responsible for filing the statement is civilly liable to the political subdivision, of which the office held or sought is part, for an amount not to exceed $1,000. Prohibits the county attorney or the district or criminal district attorney with civil jurisdiction from initiating suit for the penalty until the 10th day after the date a notice concerning the late statement is mailed to the person. Requires the authority with whom a report is filed, if the person files the statement before the 10th day after the date the notice is mailed, to notify the county attorney or the district or criminal district attorney, and prohibits the civil suit under this subsection from being initiated. (f) Provides that a person required to file a statement under this section commits a Class B misdemeanor offense if the person knowingly fails to file the statement. SECTION 3. Amends Section 159.003(b), Local Government Code, to provide that the financial statement, which a county official or a candidate for a county office is required to file, must comply with Section 572.0231, Government Code. SECTION 4. Amends Section 159.052(a), Local Government Code, to require a county judicial officer or a candidate for office as a county judicial officer to file a financial statement that complies with Section 572.0231, Government Code. SECTION 5. Effective date: September 1, 1999. SECTION 6. Makes application of this Act prospective. SECTION 7. Emergency clause.