By Alvarado H.B. No. 102
76R29 CAG-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to lobbying restrictions in certain municipalities;
1-3 providing penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subtitle B, Title 2, Local Government Code, is
1-6 amended by adding Chapter 27 to read as follows:
1-7 CHAPTER 27. LOBBYING RESTRICTIONS IN
1-8 CERTAIN HOME-RULE MUNICIPALITIES
1-9 SUBCHAPTER A. REGISTRATION
1-10 Sec. 27.001. APPLICATION. This chapter applies only to a
1-11 municipality with a population of not less than 700,000 and not
1-12 more than 1,000,000.
1-13 Sec. 27.002. DEFINITIONS. In this chapter:
1-14 (1) "Administrative action" means rulemaking,
1-15 licensing, or any other matter that may be the subject of action by
1-16 the governing body of a municipality or a board, commission, or
1-17 other administrative body appointed by the governing body of a
1-18 municipality, including the proposal, consideration, or approval
1-19 of the matter.
1-20 (2) "Commission" means a municipal ethics commission
1-21 appointed by the governing body of a municipality.
1-22 (3) "Communicates directly with" or any variation of
1-23 the phrase means contact in person or by telephone, telegraph,
1-24 letter, or any other form of electronic communication.
2-1 (4) "Compensation" means money, service, facility, or
2-2 other thing of value or financial benefit that is received or is to
2-3 be received in return for or in connection with services rendered
2-4 or to be rendered.
2-5 (5) "Expenditure" means a payment, distribution, loan,
2-6 advance, reimbursement, deposit, or gift of money or any thing of
2-7 value and includes a contract, promise, or agreement, whether or
2-8 not legally enforceable, to make an expenditure.
2-9 (6) "Governing body of a municipality" includes a
2-10 board, commission, or other administrative body appointed by the
2-11 governing body of a municipality.
2-12 (7) "Immediate family" means a spouse or dependent
2-13 child.
2-14 (8) "Legislation" means:
2-15 (A) an ordinance, resolution, amendment,
2-16 nomination, or other matter pending before the governing body of a
2-17 municipality;
2-18 (B) any matter that is or may be the subject of
2-19 action by the governing body of a municipality, including the
2-20 introduction, consideration, passage, defeat, or approval of the
2-21 matter; or
2-22 (C) any matter that may be the subject of action
2-23 by an amendment of the municipality's home-rule charter.
2-24 (9) "Member of the governing body" means an officer
2-25 of, officer-elect of, candidate for, or employee of the governing
2-26 body of a municipality or a member of a board, commission, or other
2-27 administrative body appointed by the governing body of a
3-1 municipality.
3-2 (10) "Person" means an individual, corporation,
3-3 association, firm, partnership, committee, club, organization, or
3-4 group of persons who are voluntarily acting in concert.
3-5 (11) "Registrant" means a person required to register
3-6 under Section 27.004.
3-7 Sec. 27.003. MUNICIPAL ETHICS COMMISSION. (a) The
3-8 governing body of a municipality shall establish and appoint a
3-9 municipal ethics commission or may contract with the Texas Ethics
3-10 Commission to perform the duties of the municipal ethics
3-11 commission.
3-12 (b) The composition of the commission shall be determined by
3-13 ordinance.
3-14 (c) The commission shall adopt rules relating to the
3-15 enforcement of this chapter.
3-16 (d) The commission may adopt a code of conduct for
3-17 registrants under this chapter.
3-18 Sec. 27.004. PERSONS REQUIRED TO REGISTER. (a) A person
3-19 must register with the commission under this chapter if the person:
3-20 (1) makes a total expenditure of an amount determined
3-21 by commission rule but not less than $200 in a calendar quarter,
3-22 not including the person's own travel, food, or lodging expenses or
3-23 the person's own membership dues, on activities described in
3-24 Section 27.008(b) to communicate directly with one or more members
3-25 of the governing body of the municipality to influence legislation
3-26 or administrative action; or
3-27 (2) receives compensation or reimbursement, not
4-1 including reimbursement for the person's own travel, food, or
4-2 lodging expenses or the person's own membership dues, of more than
4-3 an amount determined by commission rule but not less than $200 in a
4-4 calendar quarter from another person to communicate directly with
4-5 one or more members of the governing body of the municipality to
4-6 influence legislation or administrative action.
4-7 (b) Subsection (a)(2) requires a person to register if the
4-8 person, as part of the person's regular employment, has
4-9 communicated directly with a member of the governing body of the
4-10 municipality to influence legislation or administrative action on
4-11 behalf of the person by whom the registrant is compensated or
4-12 reimbursed, whether or not the person receives any compensation for
4-13 the communication in addition to the salary for that regular
4-14 employment. Subsection (a)(2) does not require a member of the
4-15 judicial, legislative, or executive branch of state government or
4-16 an officer or employee of a political subdivision of the state to
4-17 register.
4-18 (c) A person who communicates directly with a member of the
4-19 governing body of the municipality to influence administrative
4-20 action is not required to register under Subsection (a)(2) if:
4-21 (1) the person is an attorney of record or pro se;
4-22 (2) the person enters an appearance in a public record
4-23 through pleadings or other written documents in a docketed case
4-24 pending before the governing body of the municipality; and
4-25 (3) that communication is the only activity that would
4-26 otherwise require the person to register.
4-27 Sec. 27.005. EXCEPTIONS. The following persons are not
5-1 required to register under this chapter:
5-2 (1) a person who owns, publishes, or is employed by a
5-3 newspaper, any other regularly published periodical, a radio
5-4 station, a television station, a wire service, or any other bona
5-5 fide news medium that in the ordinary course of business
5-6 disseminates news, letters to the editors, editorial or other
5-7 comment, or paid advertisements that directly or indirectly oppose
5-8 or promote legislation or administrative action, if the person does
5-9 not engage in other activities that require registration under this
5-10 chapter and does not represent another person in connection with
5-11 influencing legislation or administrative action;
5-12 (2) a person whose only direct communication with a
5-13 member of the governing body of the municipality to influence
5-14 legislation or administrative action is an appearance before or
5-15 testimony to one or more members of the governing body of the
5-16 municipality in a hearing conducted by or on behalf of the
5-17 governing body of the municipality and who does not receive special
5-18 or extra compensation for the appearance other than actual expenses
5-19 incurred in attending the hearing;
5-20 (3) a person whose only activity is to encourage or
5-21 solicit members, employees, or stockholders of an entity by whom
5-22 the person is reimbursed, employed, or retained to communicate
5-23 directly with members of the governing body of the municipality to
5-24 influence legislation or administrative action;
5-25 (4) a person whose only activity to influence
5-26 legislation or administrative action is to compensate or reimburse
5-27 an individual registrant to act in the person's behalf to
6-1 communicate directly with a member of the governing body of the
6-2 municipality to influence legislation or administrative action;
6-3 (5) a person whose only activity to influence
6-4 legislation or administrative action is attendance at a meeting or
6-5 entertainment event attended by a member of the governing body of
6-6 the municipality if the total cost of the meeting or entertainment
6-7 event is paid by a business entity, union, or association;
6-8 (6) a person whose only compensation subject to
6-9 Section 27.004(a)(2) consists of reimbursement for any wages not
6-10 earned due to attendance at a meeting or entertainment event,
6-11 travel to and from the meeting or entertainment event, admission to
6-12 the meeting or entertainment event, and any food and beverage
6-13 consumed at the meeting or entertainment event if the meeting or
6-14 entertainment event is attended by a member of the governing body
6-15 of the municipality and if the total cost of the meeting or
6-16 entertainment event is paid by a business entity, union, or
6-17 association; and
6-18 (7) a person who communicates directly with a member
6-19 of the governing body of the municipality on behalf of a political
6-20 party concerning legislation or administrative action and whose
6-21 expenditures and compensation, as described in Section 27.004,
6-22 combined do not exceed $5,000 a calendar year.
6-23 Sec. 27.006. REGISTRATION. (a) Each person required to
6-24 register under this chapter shall file a registration form with the
6-25 commission on a form prescribed by the commission and shall submit
6-26 a registration fee.
6-27 (b) A registration filed under this chapter expires at
7-1 midnight on December 31 of each year unless the registrant submits
7-2 a registration renewal form to the commission on a form prescribed
7-3 by the commission and submits the registration renewal fee. The
7-4 registrant may file the registration renewal form and the fee any
7-5 time in December of the year in which the registration expires.
7-6 (c) The registration fee and registration renewal fee shall
7-7 be set in an amount determined by the commission that is needed for
7-8 the operation of the commission and the enforcement of this chapter
7-9 and may not be less than:
7-10 (1) $100 for a registrant employed by an organization
7-11 exempt from federal income tax under Section 501(c)(3) or
7-12 501(c)(4), Internal Revenue Code of 1986; or
7-13 (2) $300 for any other registrant.
7-14 (d) Fees collected under this section shall be deposited in
7-15 a fund in the municipality's treasury for the benefit and use of
7-16 the commission and may only be spent in a manner determined by the
7-17 commission.
7-18 (e) A person required to register under this chapter who has
7-19 not registered or whose registration has expired shall file the
7-20 registration form and submit the registration fee not later than
7-21 the fifth day after the date on which the person or the person's
7-22 employee makes the first direct communication with a member of the
7-23 governing body of the municipality that requires the person's
7-24 registration.
7-25 (f) The registration must be written and verified and must
7-26 contain:
7-27 (1) the registrant's full name and address;
8-1 (2) the registrant's normal business, business
8-2 telephone number, and business address;
8-3 (3) the full name and address of each person:
8-4 (A) who reimburses, retains, or employs the
8-5 registrant to communicate directly with a member of the governing
8-6 body of the municipality to influence legislation or administrative
8-7 action; and
8-8 (B) on whose behalf the registrant has
8-9 communicated directly with a member of the governing body of the
8-10 municipality to influence legislation or administrative action;
8-11 (4) the subject matter and, if applicable, the docket
8-12 number, agenda number, or other administrative designation of the
8-13 legislation or administrative action that is the subject of the
8-14 registrant's direct communication with a member of the governing
8-15 body of the municipality;
8-16 (5) for each person employed or retained by the
8-17 registrant for the purpose of assisting in direct communication
8-18 with a member of the governing body of the municipality to
8-19 influence legislation or administrative action:
8-20 (A) the full name, business address, and
8-21 occupation of the person; and
8-22 (B) the subject matter and, if applicable, the
8-23 docket number, agenda number, or other administrative designation
8-24 of the legislation or administrative action to which the person's
8-25 activities reportable under this section were related; and
8-26 (6) the amount of compensation or reimbursement paid
8-27 by each person who reimburses, retains, or employs the registrant
9-1 for the purpose of communicating directly with a member of the
9-2 governing body of the municipality or on whose behalf the
9-3 registrant communicates directly with a member of the governing
9-4 body of the municipality.
9-5 (g) Compensation or reimbursement required to be reported
9-6 under Subsection (f)(6) shall be reported in the following
9-7 categories unless reported as an exact amount:
9-8 (1) $0 if no compensation or reimbursement is
9-9 received;
9-10 (2) less than $1,000;
9-11 (3) at least $1,000 but less than $2,500;
9-12 (4) at least $2,500 but less than $5,000;
9-13 (5) at least $5,000 but less than $10,000;
9-14 (6) at least $10,000 but less than $15,000;
9-15 (7) at least $15,000 but less than $20,000; and
9-16 (8) $20,000 or more.
9-17 (h) If a registrant's activities are on behalf of the
9-18 members of a group or organization, including a business, trade, or
9-19 consumer interest association but excluding a corporation, the
9-20 registration form must include:
9-21 (1) a statement of the number of members in the group;
9-22 (2) the name of each person in the group or
9-23 organization who determines the policy of the group or organization
9-24 relating to influencing legislation or administrative action;
9-25 (3) a full description of the methods by which the
9-26 registrant develops and makes decisions about positions on policy;
9-27 and
10-1 (4) a list of those persons making a grant or
10-2 contribution, in addition to or instead of dues or fees, that
10-3 exceeds $50 per year.
10-4 (i) If a registrant's activities are done on behalf of a
10-5 corporation the shares of which are not publicly traded, the
10-6 registration form must include:
10-7 (1) the number of shareholders in the corporation;
10-8 (2) the name and address of each officer or member of
10-9 the board of directors; and
10-10 (3) the name of each person owning 10 percent or more
10-11 of the shares of the corporation.
10-12 (j) If the person described by Subsection (f)(3) is a
10-13 business entity engaged in the representation of clients for the
10-14 purpose of influencing legislation or administrative action, the
10-15 registrant shall give the information required by that subdivision
10-16 for each client on whose behalf the registrant communicated
10-17 directly with a member of the governing body of the municipality.
10-18 (k) If there is a change in the information required to be
10-19 reported by a registrant under this section, other than Subsection
10-20 (h) or (i), and that changed information is not timely reported on
10-21 a report due under Section 27.012, the registrant shall file an
10-22 amended statement reflecting the change with the commission not
10-23 later than the date on which the next report is due under Section
10-24 27.012.
10-25 Sec. 27.007. LISTING OF MUNICIPAL OFFICERS AND EMPLOYEES.
10-26 (a) Except as provided by Subsection (b), the commission by rule
10-27 may require an officer or employee of a political subdivision or
11-1 other governmental entity created under the Texas Constitution or
11-2 laws of this state who communicates directly with a member of the
11-3 governing body of the municipality concerning legislation or
11-4 administrative action, other than routine matters, to file with the
11-5 commission the officer's or employee's name, the name of the entity
11-6 represented, the subject matter of the communication, and other
11-7 information the commission considers relevant.
11-8 (b) The commission may not require a member of the
11-9 legislative branch to file with the commission under this section.
11-10 Sec. 27.008. ACTIVITIES REPORT. (a) Each registrant shall
11-11 file with the commission a written, verified report on a form
11-12 prescribed by the commission concerning the activities described by
11-13 this section.
11-14 (b) The report must contain the total expenditures under a
11-15 category listed in this subsection that the registrant made to
11-16 communicate directly with a member of the governing body to
11-17 influence legislation or administrative action and that are
11-18 directly attributable, as that term is used in Section 27.010(b),
11-19 to a member of the governing body of the municipality or the
11-20 immediate family of a member of the governing body of the
11-21 municipality. The report must also include expenditures for the
11-22 direct communications under a category listed in this subsection
11-23 that other people made on the registrant's behalf if the
11-24 expenditures were made with the registrant's consent or were
11-25 ratified by the registrant. The expenditures must be reported in
11-26 the following categories:
11-27 (1) transportation and lodging;
12-1 (2) food and beverages;
12-2 (3) entertainment;
12-3 (4) gifts, other than awards and mementos;
12-4 (5) awards and mementos; and
12-5 (6) expenditures made for the attendance of members of
12-6 the governing body of the municipality at political fund-raisers or
12-7 charity events.
12-8 (c) The report must also list the total expenditures made by
12-9 the registrant or by others on the registrant's behalf and with the
12-10 registrant's consent or ratification for broadcast or print
12-11 advertisements, direct mailings, and other mass media
12-12 communications if:
12-13 (1) the communications are made to a person other than
12-14 a member, employee, or stockholder of an entity that reimburses,
12-15 retains, or employs the registrant; and
12-16 (2) the communications support or oppose or encourage
12-17 another to support or oppose pending legislation or administrative
12-18 action.
12-19 (d) The report must also contain a list of the specific
12-20 categories of subject matters about which the registrant, any
12-21 person the registrant retains or employs to appear on the
12-22 registrant's behalf, or any other person appearing on the
12-23 registrant's behalf communicated directly with a member of the
12-24 governing body of the municipality and that has not been reported
12-25 under Section 27.006. The list must include the docket number,
12-26 agenda number, or other administrative designation of the
12-27 legislation or administrative action, if known.
13-1 (e) A registrant who reports an expenditure under one
13-2 category provided by Subsection (b) may not report the same
13-3 expenditure under another category of Subsection (b).
13-4 (f) An expenditure described by Subsection (b)(1), (2), (3),
13-5 or (6) may not be made or accepted unless the registrant is present
13-6 at the event.
13-7 Sec. 27.009. DETAILED REPORTS. (a) If a registrant or a
13-8 person on the registrant's behalf and with the registrant's consent
13-9 or ratification makes expenditures that exceed $50 a day for
13-10 transportation or lodging for a member of the governing body of the
13-11 municipality, the registrant shall also state the following on the
13-12 report filed under Section 27.008:
13-13 (1) the name of the member of the governing body of
13-14 the municipality in whose behalf the expenditure is made;
13-15 (2) the place and date of the transportation or
13-16 lodging; and
13-17 (3) the purpose of the transportation or lodging.
13-18 (b) If a registrant or a person on the registrant's behalf
13-19 and with the registrant's consent or ratification makes
13-20 expenditures that exceed $50 a day for food and beverages for a
13-21 member of the governing body of the municipality or makes
13-22 expenditures that exceed $50 a day for entertainment for a member
13-23 of the governing body of the municipality or for the immediate
13-24 family of a member of the governing body of the municipality, the
13-25 registrant shall also state the following on the report filed under
13-26 Section 27.008:
13-27 (1) the name of the member of the governing body of
14-1 the municipality in whose behalf the expenditure is made;
14-2 (2) the place and date of the expenditure; and
14-3 (3) the amount of the expenditure by the appropriate
14-4 category of the amount, as determined by the commission.
14-5 (c) If a registrant or a person on the registrant's behalf
14-6 and with the registrant's consent or ratification gives to a member
14-7 of the governing body of the municipality a gift or an award or
14-8 memento the value of which exceeds $50 per gift, award, or memento,
14-9 the registrant shall also state the following on the report filed
14-10 under Section 27.008:
14-11 (1) the name of the member of the governing body of
14-12 the municipality in whose behalf the expenditure is made;
14-13 (2) a general description of the gift, award, or
14-14 memento; and
14-15 (3) the amount of the expenditure by the appropriate
14-16 category of the amount, as determined by the commission.
14-17 (d) If a registrant or a person on the registrant's behalf
14-18 and with the registrant's consent or ratification makes
14-19 expenditures for the attendance of a member of the governing body
14-20 of the municipality at a political fund-raiser or charity event,
14-21 the registrant shall also state the following on the report filed
14-22 under Section 27.008:
14-23 (1) the name of the member of the governing body of
14-24 the municipality in whose behalf the expenditure is made;
14-25 (2) the name of the charity or the name of the
14-26 candidate or officeholder for whom the political fund-raiser was
14-27 held, as applicable; and
15-1 (3) the date of the fund-raiser or event.
15-2 (e) If a registrant or a person on the registrant's behalf
15-3 and with the registrant's consent or ratification makes an
15-4 expenditure for a gift, award, or memento for a member of the
15-5 governing body of the municipality in conjunction with an
15-6 expenditure for the attendance of that member at a political
15-7 fund-raiser or charity event, the registrant shall report the
15-8 expenditure for the gift, award, or memento under Subsection (c),
15-9 if required, and not under Subsection (d).
15-10 (f) If a registrant or a person on the registrant's behalf
15-11 with the registrant's consent or ratification makes an expenditure
15-12 described by Section 27.008(b)(1), (2), or (3) to communicate
15-13 directly with more than one member of the governing body of the
15-14 municipality to influence legislation or administrative action and
15-15 if the registrant cannot reasonably determine the amount that is
15-16 directly attributable to a member, the registrant shall apportion
15-17 the expenditure made by that registrant according to the number of
15-18 persons in attendance. The registrant shall report as required by
15-19 Subsection (a), (b), or (c) if the expenditure for each person
15-20 exceeds the amount provided under Subsection (a), (b), or (c).
15-21 Sec. 27.010. EXPENDITURES ATTRIBUTABLE TO GROUPS. (a) The
15-22 report filed under Section 27.008 must also contain the total
15-23 expenditures described by Section 27.008(b) that are directly
15-24 attributable to members of the governing body of the municipality.
15-25 The expenditures must be stated in only one of the following
15-26 categories:
15-27 (1) elected members of the governing body;
16-1 (2) members of a board, commission, or other
16-2 administrative body appointed by the governing body of a
16-3 municipality;
16-4 (3) employees of the governing body;
16-5 (4) the immediate family of a member or employee of
16-6 the governing body of the municipality; and
16-7 (5) events to which all elected members of the
16-8 governing body of the municipality are invited.
16-9 (b) For purposes of Subsection (a), an expenditure is
16-10 directly attributable to the person who consumed the food or
16-11 beverage, to the person for whom admission, transportation, or
16-12 lodging expenses were paid, or to the person to whom the gift,
16-13 award, or memento was given.
16-14 (c) All expenditures made by a registrant or a person on the
16-15 registrant's behalf and with the registrant's consent or
16-16 ratification that benefit members of the immediate family of
16-17 members or employees of the governing body of the municipality
16-18 shall be aggregated and reported under Subsection (a)(5).
16-19 (d) If a registrant cannot reasonably determine the amount
16-20 of an expenditure under Section 27.008(b) that is directly
16-21 attributable to a member of the governing body of the municipality
16-22 as required by Subsection (a), the registrant shall apportion the
16-23 expenditure made by that registrant or by others on the
16-24 registrant's behalf and with the registrant's consent or
16-25 ratification according to the number of persons in attendance.
16-26 However, if an expenditure is for an event to which all elected
16-27 members of the governing body of the municipality are invited, the
17-1 registrant shall report the expenditure under Subsection (a)(5) and
17-2 not under any other subdivision of that subsection or any other
17-3 provision of this chapter.
17-4 Sec. 27.011. MODIFIED REPORTING. (a) A person required to
17-5 register under this chapter may, when filing the registration form
17-6 or registration renewal form, elect to file an activities report
17-7 under this section instead of Section 27.008 if the person does not
17-8 intend to make expenditures reportable under Section 27.008(b) of
17-9 more than $1,000 during a calendar year, not including the person's
17-10 own travel, food, or lodging expenses or the person's own
17-11 membership dues.
17-12 (b) To be entitled to file reports under this section, the
17-13 registrant must file with the registration form or registration
17-14 renewal form a written declaration of intent not to exceed $1,000
17-15 in expenditures during each calendar year in which that
17-16 registration or registration renewal is effective.
17-17 (c) A registrant filing under this section shall annually
17-18 file the report required by Section 27.008. The report must be
17-19 filed not later than January 10 and must cover the activities
17-20 occurring during the previous calendar year.
17-21 (d) A registrant who exceeds $1,000 in expenditures shall
17-22 file monthly reports as required by Section 27.012. The first
17-23 report filed after exceeding $1,000 covers the period beginning
17-24 January 1 through the date on which the next reporting period ends.
17-25 Sec. 27.012. FILING DATES FOR SUPPLEMENTAL REPORTS. (a)
17-26 The registrant must file the report required by Section 27.008
17-27 between the 1st and 10th day of each month. The report must cover
18-1 the activities occurring during the previous month.
18-2 (b) A person who made expenditures on the registrant's
18-3 behalf that are required to be reported under Section 27.008 or a
18-4 person who has other information that is required to be reported by
18-5 the registrant under this chapter shall provide a full, verified
18-6 account of the expenditures to the registrant not later than the
18-7 seventh day before the date on which the registrant's report is
18-8 due.
18-9 Sec. 27.013. TERMINATION NOTICE. (a) A person who ceases
18-10 to engage in activities requiring registration under this chapter
18-11 shall file a written, verified statement with the commission
18-12 acknowledging the termination of activities. The notice is
18-13 effective immediately.
18-14 (b) A person who files a notice of termination under this
18-15 section must file the reports required by Section 27.008 for any
18-16 reporting period during which the person was registered.
18-17 Sec. 27.014. MAINTENANCE OF REPORTS. (a) All reports filed
18-18 under this chapter are public records and shall be made available
18-19 for public inspection during regular business hours.
18-20 (b) The commission shall:
18-21 (1) design and provide appropriate forms, covering
18-22 only the items required to be disclosed under this chapter, to be
18-23 used for the registration and reporting of required information;
18-24 (2) maintain registrations and reports in a separate
18-25 alphabetical file;
18-26 (3) remove registrations and reports from the files
18-27 after five years from the date of filing; and
19-1 (4) maintain a deputy available to receive
19-2 registrations and reports and make the registrations and reports
19-3 available to the public for inspection.
19-4 (c) The commission shall retain a report filed under this
19-5 chapter for at least four years after the date the report is filed.
19-6 (d) A registrant shall keep any records necessary to the
19-7 reports required under this chapter for at least four years after
19-8 the date the report is filed.
19-9 Sec. 27.015. TIMELINESS OF FILING REGISTRATIONS AND REPORTS.
19-10 A registration or report filed by first-class United States mail or
19-11 by common or contract carrier is timely if:
19-12 (1) it is properly addressed with postage or handling
19-13 charges prepaid; and
19-14 (2) it bears a post office cancellation mark or a
19-15 receipt mark from a common or contract carrier indicating a time
19-16 within the applicable filing period or before the applicable filing
19-17 deadline or if the person required to file furnishes satisfactory
19-18 proof that it was deposited in the mail or with a common or
19-19 contract carrier within that period or before that deadline.
19-20 Sec. 27.016. LIST OF REGISTRANTS AND EMPLOYERS. (a) Not
19-21 later than February 1 of each year, the commission shall prepare a
19-22 list of the names of registrants and shall indicate by each
19-23 registrant's name each employer or concern employing the
19-24 registrant.
19-25 (b) In addition to the list required under Subsection (a),
19-26 the commission shall prepare a list of the names of any employer or
19-27 concern employing a registrant and shall indicate each registrant
20-1 compensated by the employer or concern.
20-2 (c) The commission shall send the lists prepared under this
20-3 section to each elected member of the governing body of the
20-4 municipality.
20-5 SUBCHAPTER B. PROHIBITED ACTIVITIES
20-6 Sec. 27.101. FALSE COMMUNICATIONS. A person, for the
20-7 purpose of influencing legislation or administrative action, may
20-8 not:
20-9 (1) knowingly or wilfully make a false statement or
20-10 misrepresentation of the facts to a member of the governing body of
20-11 the municipality; or
20-12 (2) cause a copy of a document the person knows to
20-13 contain a false statement to be received by a member of the
20-14 governing body of the municipality without notifying the member in
20-15 writing of the truth.
20-16 Sec. 27.102. CONTINGENT FEES. (a) A person may not retain
20-17 or employ another person to influence legislation or administrative
20-18 action for compensation that is totally or partially contingent on
20-19 the passage, repeal, or defeat of any legislation or on the outcome
20-20 of any administrative action.
20-21 (b) A person may not accept any employment or render any
20-22 service to influence legislation or administrative action for
20-23 compensation contingent on the passage, repeal, or defeat of any
20-24 legislation or on the outcome of any administrative action.
20-25 (c) For purposes of this section, a sales commission payable
20-26 to an employee of a vendor of a product is not considered
20-27 compensation contingent on the outcome of legislation or
21-1 administrative action.
21-2 (d) This section does not prohibit the payment or acceptance
21-3 of contingent fees:
21-4 (1) expressly authorized by other law; or
21-5 (2) for legal representation before a municipal board,
21-6 commission, or other administrative agency in contested hearings
21-7 or similar adversarial proceedings prescribed by law or
21-8 administrative rules.
21-9 Sec. 27.103. RESTRICTIONS ON EXPENDITURES. (a) Except as
21-10 provided by Section 27.104, a person registered under Section
21-11 27.006 or a person on the registrant's behalf and with the
21-12 registrant's consent or ratification may not offer, confer, or
21-13 agree to confer to a member of the governing body of the
21-14 municipality:
21-15 (1) a loan, including the guarantee or endorsement of
21-16 a loan;
21-17 (2) a gift of cash or a negotiable instrument as
21-18 described by Section 3.104, Business & Commerce Code;
21-19 (3) an expenditure for transportation and lodging;
21-20 (4) an expenditure or series of expenditures for
21-21 entertainment that in the aggregate exceed $500 in a calendar year;
21-22 (5) an expenditure or series of expenditures for gifts
21-23 that in the aggregate exceed $500 in a calendar year;
21-24 (6) an expenditure for an award or memento that
21-25 exceeds $500; or
21-26 (7) an expenditure described by Section 27.008(b)(1),
21-27 (2), (3), or (6) unless the registrant is present at the event.
22-1 (b) Except as provided by Section 27.104, a member of the
22-2 governing body of the municipality may not solicit, accept, or
22-3 agree to accept from a person registered under Section 27.006 or
22-4 from a person on the registrant's behalf and with the registrant's
22-5 consent or ratification an item listed in Subsection (a).
22-6 Sec. 27.104. EXCEPTIONS. Section 27.103 does not prohibit:
22-7 (1) a loan, in the due course of business from a
22-8 corporation or other business entity that is legally engaged in the
22-9 business of lending money and that has conducted that business
22-10 continuously for more than one year before the loan is made;
22-11 (2) a loan or guarantee of a loan or a gift made or
22-12 given by a person related within the second degree by affinity or
22-13 consanguinity to the member of the governing body of the
22-14 municipality;
22-15 (3) necessary expenditures for transportation and
22-16 lodging when the purpose of the travel is to explore matters
22-17 directly related to the duties of a member of the governing body of
22-18 the municipality, such as fact-finding trips, but not including
22-19 attendance at merely ceremonial events or pleasure trips;
22-20 (4) necessary expenditures for transportation and
22-21 lodging provided in connection with a conference, seminar,
22-22 educational program, or similar event in which the member renders
22-23 services, such as addressing an audience or engaging in a seminar,
22-24 to the extent that those services are more than merely perfunctory;
22-25 (5) an incidental expenditure for transportation as
22-26 determined by commission rule; or
22-27 (6) a political contribution as defined by Section
23-1 251.001, Election Code.
23-2 SUBCHAPTER C. SANCTIONS
23-3 Sec. 27.201. CRIMINAL PENALTIES. (a) A person commits an
23-4 offense if the person intentionally or knowingly violates a
23-5 provision of this chapter other than Section 27.102. An offense
23-6 under this subsection is a Class A misdemeanor.
23-7 (b) A person commits an offense if the person intentionally
23-8 or knowingly violates Section 27.102. An offense under this
23-9 subsection is a felony of the third degree.
23-10 (c) This chapter does not affect the criminal responsibility
23-11 of a person under the state laws relating to perjury.
23-12 (d) This section does not prohibit the commission from
23-13 imposing a civil penalty for a violation.
23-14 Sec. 27.202. CIVIL PENALTY FOR FAILURE TO REGISTER. In
23-15 addition to the criminal penalties prescribed by Section 27.201, a
23-16 person who receives compensation or reimbursement or makes an
23-17 expenditure for engaging in direct communication to influence
23-18 legislation or administrative action and who fails to file a
23-19 registration form or activities report required to be filed under
23-20 this chapter shall pay a civil penalty in an amount determined by
23-21 commission rule, but not to exceed an amount equal to three times
23-22 the compensation, reimbursement, or expenditure.
23-23 Sec. 27.203. CIVIL PENALTY FOR LATE FILING. (a) The
23-24 commission shall determine from any available evidence whether a
23-25 registration or report required to be filed with the commission
23-26 under this chapter is late. A registration filed without the fee
23-27 required by Section 27.006 is considered to be late. On making a
24-1 determination that a required registration or report is late, the
24-2 commission shall immediately mail a notice of the determination to
24-3 the person responsible for the filing, to the commission, and to
24-4 the appropriate attorney for the municipality.
24-5 (b) If a registration or report is determined to be late,
24-6 the person responsible for the filing is liable to the municipality
24-7 for payment of a civil penalty in an amount determined by
24-8 commission rule, but not to exceed $100 for each day that the
24-9 registration or report is late.
24-10 (c) If a registration or report is more than 30 days late,
24-11 the commission shall issue a warning of liability by registered
24-12 mail to the person responsible for the filing. If the penalty is
24-13 not paid before the 10th day after the date on which the warning is
24-14 received, the person is liable for a penalty in an amount
24-15 determined by commission rule, but not to exceed $10,000.
24-16 (d) A penalty paid voluntarily under this section shall be
24-17 deposited in the municipal treasury to the credit of the
24-18 commission.
24-19 (e) This section is in addition to any other available
24-20 sanctions for late filings of registrations or reports.
24-21 Sec. 27.204. FAILURE TO FILE ALL REQUIRED FORMS. (a) The
24-22 commission shall determine whether all persons registered under
24-23 this chapter have filed all required forms, statements, and
24-24 reports.
24-25 (b) If the commission determines that a person has failed to
24-26 file any required form, statement, or report as required by this
24-27 chapter, the commission shall send a written statement of this
25-1 finding to the person involved. The notice must be sent by
25-2 certified mail.
25-3 (c) If the person fails to file the form, statement, or
25-4 report as required by this chapter before the 21st day after the
25-5 date on which the notice was sent, the commission shall file a
25-6 sworn complaint of the violation with the appropriate prosecuting
25-7 attorney.
25-8 Sec. 27.205. ENFORCEMENT. (a) The commission, the attorney
25-9 general, or any municipal attorney may enforce this chapter.
25-10 (b) On the application of any citizen of this state, a
25-11 district court in the county in which the majority of the area of
25-12 the municipality is located may issue an injunction to enforce this
25-13 chapter.
25-14 (c) A person may file with the appropriate prosecuting
25-15 attorney or with the commission a written, sworn statement alleging
25-16 a violation of this chapter.
25-17 Sec. 27.206. VENUE. An offense under this chapter,
25-18 including perjury, may be prosecuted in Travis County or in any
25-19 other county in which it may be prosecuted under the Code of
25-20 Criminal Procedure.
25-21 SECTION 2. Section 36.10(a), Penal Code, is amended to read
25-22 as follows:
25-23 (a) Sections 36.08 (Gift to Public Servant) and 36.09
25-24 (Offering Gift to Public Servant) do not apply to:
25-25 (1) a fee prescribed by law to be received by a public
25-26 servant or any other benefit to which the public servant is
25-27 lawfully entitled or for which he gives legitimate consideration in
26-1 a capacity other than as a public servant;
26-2 (2) a gift or other benefit conferred on account of
26-3 kinship or a personal, professional, or business relationship
26-4 independent of the official status of the recipient; or
26-5 (3) a benefit to a public servant required to file a
26-6 statement under Chapter 572, Government Code, or a report under
26-7 Title 15, Election Code, that is derived from a function in honor
26-8 or appreciation of the recipient if:
26-9 (A) the benefit and the source of any benefit in
26-10 excess of $50 is reported in the statement; and
26-11 (B) the benefit is used solely to defray the
26-12 expenses that accrue in the performance of duties or activities in
26-13 connection with the office which are nonreimbursable by the state
26-14 or political subdivision;
26-15 (4) a political contribution as defined by Title 15,
26-16 Election Code;
26-17 (5) a gift, award, or memento to a member of the
26-18 legislative or executive branch that is required to be reported
26-19 under Chapter 305, Government Code, or to a member of a governing
26-20 body of a municipality that is required to be reported under
26-21 Chapter 27, Local Government Code;
26-22 (6) an item with a value of less than $50, excluding
26-23 cash or a negotiable instrument as described by Section 3.104,
26-24 Business & Commerce Code; or
26-25 (7) an item issued by a governmental entity that
26-26 allows the use of property or facilities owned, leased, or operated
26-27 by the governmental entity.
27-1 SECTION 3. (a) Except as provided by Subsections (b) and
27-2 (c) of this section, this Act takes effect January 1, 2000.
27-3 (b) Not later than September 1, 1999, the governing body of
27-4 a municipality shall establish and appoint a municipal ethics
27-5 commission under Chapter 27, Local Government Code, as added by
27-6 this Act. If the governing body of a municipality fails to
27-7 establish a municipal ethics commission before September 1, 1999,
27-8 the Texas Ethics Commission shall act as the municipal ethics
27-9 commission until January 1, 2001, or until the first anniversary of
27-10 the establishment and appointment of the municipal ethics
27-11 commission, whichever is later.
27-12 (c) Not later than October 1, 1999, a municipal ethics
27-13 commission established under Chapter 27, Local Government Code, as
27-14 added by this Act, shall adopt rules and forms related to
27-15 registration under that chapter or to the enforcement of that
27-16 chapter. If the municipal ethics commission fails to adopt rules
27-17 or forms before October 1, 1999, the Texas Ethics Commission shall
27-18 adopt rules or forms for the municipal ethics commission not later
27-19 than November 1, 1999. The rules or forms adopted for the
27-20 municipal ethics commission shall be used until January 1, 2001, or
27-21 until the first anniversary of the adoption of the rules or forms,
27-22 whichever date is later.
27-23 SECTION 4. The importance of this legislation and the
27-24 crowded condition of the calendars in both houses create an
27-25 emergency and an imperative public necessity that the
27-26 constitutional rule requiring bills to be read on three several
27-27 days in each house be suspended, and this rule is hereby suspended.