SRC-DBM C.S.S.B. 1047 76(R)    BILL ANALYSIS


Senate Research CenterC.S.S.B. 1047
By: Wentworth
State Affairs
3/30/1999
Committee Report (Substituted)


DIGEST 

The Public Information Act, according to a 1993 opinion by the Attorney
General, does not protect certain proprietary or confidential information
gathered by city governments or other economic development efforts from
businesses seeking economic incentives from those entities. C.S.S.B. 1047
would except certain business prospect information included in economic
development negotiations with a governmental body from the open records law
and open meetings, but not from certain information if public funds are
directly or indirectly expended. 

PURPOSE

As proposed, C.S.S.B. 1047 excepts certain information about business
prospects who have engaged in economic development negotiations with a
governmental body from the open records law and open meetings. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 551D, Government Code, by adding Section
551.086, as follows: 
  
Sec. 551.086.  DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS;
CLOSED MEETING.  Provides that this chapter does not require a governmental
body to conduct an open meeting to discuss or deliberate regarding
commercial or financial information that the governmental body has received
from a business prospect that the governmental body seeks to have locate,
stay, or expand in or near the jurisdiction of the governmental body and
with which the governmental body is conducting economic development
negotiations; or to deliberate an offer of  a financial or other incentive
to a business prospect described by Subdivision (1). 

SECTION 2.  Amends Chapter 552C, Government Code, by adding Section
552.131, as follows: 

Sec. 552.131.  EXCEPTION:  ECONOMIC DEVELOPMENT INFORMATION.  Provides that
information is excepted from the requirements of Section 552.021, if the
information relates to economic development negotiations involving a
governmental body and a business prospect that the governmental body seeks
to have locate, stay, or expand in or near the jurisdiction of the
governmental body and the information relates to a trade secret of the
business prospect, or commercial or financial information for which it is
demonstrated, based on specific factual evidence, that disclosure would
cause substantial competitive harm to the person from whom the information
was obtained. Provides that unless and until an agreement is reached with a
business prospect, information about a financial or other incentive being
offered to the business prospect by the governmental body or by another
person is excepted from the requirements of Section 552.021.  Provides
that, after an agreement is reached, this section does not except from the
requirements of  Section 552.021 information about a financial or other
incentive being offered to the business prospect by the governmental body
or by another person, if the financial or other incentive may directly or
indirectly result in the expenditure of public funds by a governmental body
or in a reduction in revenues received by a governmental body from any
source of revenue.  

  Effective date:  90 days after adjournment. 

SUMMARY OF COMMITTEE CHANGES

SECTION 1.

Amends Chapter 551D, Government Code, by adding Section 551.086, concerning
deliberations regarding economic development negotiations, and closed
meetings.  

SECTION 2.
 
Redesignated from existing SECTION 1.  Amends Chapter 552C, Government
Code, by expanding the information excepted from the requirements of
Section 552.021 to include commercial or financial information for which it
is demonstrated, based on specific factual evidence that disclosure would
cause substantial competitive harm to the person from whom the information
was obtained. Adds Subsection (b), to provide that unless and until an
agreement is reached with a business prospect, information about a
financial or other incentive being offered to the business prospect by the
governmental body or by another person is excepted from the requirements of
Section 552.021.