1-1                                   AN ACT
 1-2     relating to the application of the open meetings law to certain
 1-3     gatherings at which a governmental body receives information from
 1-4     third persons, including government employees.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 551.001(4), Government Code, is amended
 1-7     to read as follows:
 1-8                 (4)  "Meeting" means:
 1-9                       (A)  a deliberation between a quorum of a
1-10     governmental body, or between a quorum of a governmental body and
1-11     another person, during which public business or public policy over
1-12     which the governmental body has supervision or control is discussed
1-13     or considered or during which the governmental body takes formal
1-14     action; or
1-15                       (B)  except as otherwise provided by this
1-16     subdivision, a gathering:
1-17                             (i)  that is conducted by the governmental
1-18     body or for which the governmental body is responsible;
1-19                             (ii)  at which a quorum of members of the
1-20     governmental body is present;
1-21                             (iii)  that has been called by the
1-22     governmental body; and
1-23                             (iv)  at which the members receive
1-24     information from, give information to, ask questions of, or receive
 2-1     questions from any third person, including an employee of the
 2-2     governmental body, about the public business or public policy over
 2-3     which the governmental body has supervision or control.  The term
 2-4     does not include the gathering of a quorum of a governmental body
 2-5     at a social function unrelated to the public business that is
 2-6     conducted by the body, or the attendance by a quorum of a
 2-7     governmental body at a regional, state, or national convention or
 2-8     workshop, if formal action is not taken and any discussion of
 2-9     public business is incidental to the social function, convention,
2-10     or workshop.  The term includes a session of a governmental body.
2-11           SECTION 2.  Section 551.075, Government Code, is amended to
2-12     read as follows:
2-13           Sec. 551.075.  CONFERENCE RELATING TO INVESTMENTS AND
2-14     POTENTIAL INVESTMENTS ATTENDED BY BOARD OF TRUSTEES OF TEXAS GROWTH
2-15     FUND [WITH EMPLOYEES]; CLOSED MEETING.  (a)  This chapter does not
2-16     require the board of trustees of the Texas growth fund [a
2-17     governmental body] to confer with one or more employees of the
2-18     Texas growth fund or with a third party [governmental body] in an
2-19     open meeting if the only purpose of the conference is to:
2-20                 (1)  receive information from the employees of the
2-21     Texas growth fund or the third party relating to an investment or a
2-22     potential investment by the Texas growth fund in:
2-23                       (A)  a private business entity, if disclosure of
2-24     the information would give advantage to a competitor; or
2-25                       (B)  a business entity whose securities are
2-26     publicly traded, if the investment or potential investment is not
2-27     required to be registered under the Securities Exchange Act of 1934
 3-1     (15 U.S.C. Section 78a et seq.), and its subsequent amendments, and
 3-2     if disclosure of the information would give advantage to a
 3-3     competitor; or
 3-4                 (2)  question the employees of the Texas growth fund or
 3-5     the third party regarding an investment or potential investment
 3-6     described by Subdivision (1), if disclosure of the information
 3-7     contained in the questions or answers would give advantage to a
 3-8     competitor.
 3-9           (b)  During a conference under Subsection (a), members of the
3-10     board of trustees of the Texas growth fund [governmental body] may
3-11     not deliberate public business or agency policy that affects public
3-12     business.
3-13           (c)  In this section, "Texas growth fund" means the fund
3-14     created by Section 70, Article XVI, Texas Constitution.
3-15           SECTION 3.  Section 551.144, Government Code, is amended by
3-16     adding Subsection (c) to read as follows:
3-17           (c)  It is an affirmative defense to prosecution under
3-18     Subsection (a) that the member of the governmental body acted in
3-19     reasonable reliance on a court order or a written interpretation of
3-20     this chapter contained in an opinion of a court of record, the
3-21     attorney general, or the attorney for the governmental body.
3-22           SECTION 4.  The importance of this legislation and the
3-23     crowded condition of the calendars in both houses create an
3-24     emergency and an imperative public necessity that the
3-25     constitutional rule requiring bills to be read on three several
3-26     days in each house be suspended, and this rule is hereby suspended,
3-27     and that this Act take effect and be in force from and after its
 4-1     passage, and it is so enacted.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 156 was passed by the House on April
         13, 1999, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 156 on May 22, 1999, by a non-record
         vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 156 was passed by the Senate, with
         amendments, on May 19, 1999, by the following vote:  Yeas 29, Nays
         0.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor