HBA-TYH H.B. 3300 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3300 By: Coleman State Affairs 3/30/1999 Introduced BACKGROUND AND PURPOSE The 75th Legislature passed legislation allowing the creation of sports and community venue districts financed by certain local taxes for the purpose of constructing sports and community venues such as stadiums, convention centers, and museums. If approved by the voters, these districts are given all powers necessary to plan and complete a venue project, including the power of eminent domain. H.B. 3300 limits the power of eminent domain of a venue district to only the actual physical site of the approved venue project. This bill also creates a code of conduct for board members and employees of certain venue districts. 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 E, Chapter 335, Local Government Code, by adding Section 335.0711, as follows: Sec. 335.0711. LIMIT ON POWER OF EMINENT DOMAIN IN CERTAIN DISTRICTS. Defines "facility site." Provides that this section applies only to a district located in a county with a population of 2.4 million or more. Authorizes a district to use its power of eminent domain under Section 335.071 (General Powers of District) only to acquire a facility site as part of an approved venue project. Prohibits a district using its right and power of eminent domain for any other purpose. Prohibits a district from participating in any way in planning or zoning issues before the governing body of a municipality. SECTION 2. Amends Chapter 335, Local Government Code, by adding Subchapter F, as follows: SUBCHAPTER F. CODE OF CONDUCT FOR CERTAIN DISTRICTS Sec. 335.101. DEFINITIONS. Defines "director" and "employee." Sec. 335.102. APPLICABILITY OF SUBCHAPTER. Provides that this subchapter applies only to a district located in a county with a population of 2.4 million or more. Sec. 335.103. APPLICABILITY OF LAWS. Provides that Chapter 171 (Regulation of Conflicts of Interest of Officers of Municipalities, Counties, and Certain Other Local Governments) applies to an employee as if the employee was a local public official, as defined by Section 171.001 (Definitions). Provides that Chapter 553 (Public Disclosure), Government Code, applies to an employee as if the employee was a public servant, as defined by Section 553.001 (Definitions), Government Code. Provides that Chapter 573 (Degrees of Relationship; Nepotism Prohibitions), Government Code, applies to an employee as if the employee was a public official, as defined by Section 573.001 (Definitions), Government Code. Sec. 335.104. DISTRIBUTION OF CODE OF CONDUCT. Requires the presiding officer of the board of directors of a venue district (board) to provide to directors and employees, as often as necessary, a code of conduct regarding the requirements for office or employment, including the enumerated information. Sec. 335.105. RULEMAKING. Authorizes the board, by rule, to modify its code of conduct. Sec. 335.106. GENERAL DUTIES. Requires a director or employee to carry out the enumerated duties. Sec. 335.107. VENDOR REQUIREMENTS. (a) Provides that this section applies to a vendor who responds to a district request for a proposal or otherwise communicates with the district in connection with a potential agreement between that vendor and the district. (b) Requires the board, by rule, to design a conflict of interest questionnaire that requires disclosure of a vendor's affiliations or business relationships that might cause a conflict of interest. (c) Requires a vendor to file a completed conflict of interest questionnaire with the board secretary within seven days after the vendor performs the enumerated actions. (d) Prohibits the board from approving an agreement with a vendor unless the vendor's completed questionnaire has been on file with the board secretary for at least five days. (e) Requires a vendor to file an updated completed questionnaire with the board secretary at the enumerated dates. (f) Requires each contract entered into between a district and a vendor to contain a provision stating that the contract is void if the board or vendor violates this section. Sec. 335.108. DISCLOSURE OF VENDOR RELATIONSHIP BY DIRECTORS AND EMPLOYEES. (a) Requires the board, by rule, to design a conflicts disclosure statement for directors and employees that includes the enumerated items. (b) Provides that the disclosure requirement applies to a director or employee and a person related to that director or employee within the first degree by consanguinity or by affinity, as defined by Subchapter B (Relationships by Consanguinity or by Affinity), Chapter 573, Government Code. (c) Requires a director or employee to file a conflicts disclosure statement with the board secretary not later than the end of the first business day on which the director or employee became aware of the relationship between the district and the vendor if any of the enumerated conditions occur. (d) Authorizes the director, if a director has knowledge that another director has not made a disclosure, to notify the presiding officer of the board of this fact, or to notify the board secretary if the presiding officer is the person who failed to make the disclosure. Authorizes the presiding officer or secretary, as appropriate, to make a preliminary inquiry regarding the disclosure and to notify in writing the official who appointed the director of the alleged failure to disclose and the reasons for believing that a failure to disclose occurred. (e) Prohibits an employee from receiving, during a 12-month period, any gifts from a vendor that have a total value of more than $250 unless the employee receives written approval from the presiding officer. Sec. 335.109. REQUEST FOR OPINION FROM GENERAL COUNSEL. Authorizes an employee, with the presiding officer's consent, or a director to seek a written advisory opinion from the district's general counsel concerning whether a violation of Section 335.107 or 335.108 exists in a certain situation. Provides that the request must provide detailed information about the alleged violation or hypothetical situation. Requires the district's general counsel, after receiving a request, to prepare a written advisory opinion addressing whether a violation has occurred under the information provided. Authorizes a director or employee to rely in good faith on a written advisory opinion issued with respect to a potential violation of Section 335.107 or 335.108. Sec. 335.110. PENALTIES. Authorizes the board to reprimand, suspend, or terminate an employee who violates the district's code of conduct. SECTION 3. Effective date: September 1, 1999. Makes application of Section 335.107 of this Act prospective. SECTION 4. Emergency clause.