By Wilson H.B. No. 845
76R2814 CAG-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to conflicts of interest of a lobbyist.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subchapter B, Chapter 305, Government Code, is
1-5 amended by adding Section 305.028 to read as follows:
1-6 Sec. 305.028. PROHIBITED CONFLICTS OF INTEREST. (a) A
1-7 registrant may not represent opposing parties in communicating
1-8 directly with a member of the legislative or executive branch to
1-9 influence the same legislation or administrative action.
1-10 (b) Except as permitted by Subsection (c), a registrant may
1-11 not represent a person in communicating directly with a member of
1-12 the legislative or executive branch to influence legislation or
1-13 administrative action if the representation of that person:
1-14 (1) involves a substantially related matter in which
1-15 that person's interests are materially and directly adverse to the
1-16 interests of another client of the registrant, the entity or
1-17 organization that employs the registrant, or a partner or other
1-18 person associated with the registrant; or
1-19 (2) reasonably appears to be or become adversely
1-20 limited by the registrant's, the entity's or organization's, or the
1-21 partner's or other associated person's responsibilities to another
1-22 client or to a third person or by the registrant's, entity's or
1-23 organization's, or partner's or other associated person's own
1-24 interests.
2-1 (c) A registrant may represent a client in the circumstances
2-2 described in Subsection (b) if:
2-3 (1) the registrant reasonably believes the
2-4 representation of each client will not be materially affected; and
2-5 (2) each affected or potentially affected client
2-6 consents, in writing, to the registrant's representation after full
2-7 disclosure of the existence, nature, implications, and possible
2-8 adverse consequences of the common representation and the
2-9 advantages involved, if any.
2-10 (d) A registrant who has represented multiple parties in a
2-11 matter relating to the same legislation or administrative action
2-12 may not represent any of the parties in a dispute among the parties
2-13 arising out of the matter, unless prior written consent is obtained
2-14 from all of the parties to the dispute.
2-15 (e) If a registrant has accepted representation in conflict
2-16 with the restrictions of this section, or if multiple
2-17 representation properly accepted becomes improper under this
2-18 section, the registrant shall promptly withdraw from one or more
2-19 representations to the extent necessary for any remaining
2-20 representation not to be in conflict with this section.
2-21 (f) If a registrant would be prohibited by this section from
2-22 engaging in particular conduct, an organization or entity employing
2-23 the registrant or a partner or other person associated with the
2-24 registrant may not engage in that conduct.
2-25 (g) In each report filed with the commission, a registrant
2-26 shall, under oath, affirm that the registrant has complied with
2-27 this section.
3-1 (h) The commission may receive complaints regarding a
3-2 violation of this section. If the commission determines a violation
3-3 of this section has occurred, the commission, after notice and
3-4 hearing:
3-5 (1) may impose any penalty that the commission may
3-6 impose under another state law; and
3-7 (2) shall rescind the person's registration and may
3-8 not allow the person to register with the commission until the
3-9 second anniversary of the date of the rescission of the person's
3-10 registration.
3-11 (i) A penalty under this section is in addition to any other
3-12 enforcement action that the commission or another person may take
3-13 under this chapter.
3-14 (j) A restriction on a registrant under this section is in
3-15 addition to any restrictions on the registrant's conduct under
3-16 Section 305.0011.
3-17 SECTION 2. (a) This Act takes effect September 1, 1999.
3-18 (b) The change in law made by this Act applies only to a
3-19 registrant's communication directly with a member of the
3-20 legislative or executive branch to influence legislation or
3-21 administrative action that occurs on or after the effective date of
3-22 this Act. A registrant's communication directly with a member of
3-23 the legislative or executive branch to influence legislation or
3-24 administrative action that occurs before September 1, 1999, is
3-25 governed by the law as it existed immediately before the effective
3-26 date of this Act, and that law is continued in effect for that
3-27 purpose.
4-1 SECTION 3. The importance of this legislation and the
4-2 crowded condition of the calendars in both houses create an
4-3 emergency and an imperative public necessity that the
4-4 constitutional rule requiring bills to be read on three several
4-5 days in each house be suspended, and this rule is hereby suspended.
4-6 COMMITTEE AMENDMENT NO. 1
4-7 Amend H.B. No. 845 by inserting, on page 3, between lines 16
4-8 and 17, the following:
4-9 (k) A registrant shall file with the commission a report
4-10 describing each legislative document, including a bill or
4-11 resolution, in regard to which a client has retained the registrant
4-12 to communicate directly with a member of the legislative or
4-13 executive branch to influence legislative action. The report must
4-14 be filed not later than the third day after the date the
4-15 legislative document is filed with a legislative body or, if the
4-16 document is filed before the registrant is retained, not later than
4-17 the third day after the registrant is retained. The registrant
4-18 shall simultaneously notify each of the registrant's clients of any
4-19 report the registrant is required to file. The report must
4-20 describe:
4-21 (1) when the registrant was retained to communicate
4-22 directly with a member of the legislative or executive branch to
4-23 influence legislative action on the legislative document; and
4-24 (2) the client's stated purpose in retaining the
4-25 registrant.
4-26 Wolens