By Madden                                             H.B. No. 1422
         76R799 ESH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to disclosure of contracts between candidates for or
 1-3     holders of certain public offices and governmental entities;
 1-4     providing civil and criminal penalties.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Subchapter B, Chapter 572, Government Code, is
 1-7     amended by adding Section 572.0231 to read as follows:
 1-8           Sec. 572.0231.  INFORMATION ABOUT CONTRACTS WITH GOVERNMENT
 1-9     ENTITIES.  (a)  A financial statement under this subchapter must
1-10     include the identification and amount of any executory contract
1-11     between the individual required to file the statement, or a
1-12     business entity in which the individual has a substantial interest,
1-13     and:
1-14                 (1)  a state agency, if the individual is the secretary
1-15     of state or an elected officer other than a district judge, a
1-16     district attorney, or criminal district attorney or is a candidate
1-17     for an elective office described by this subdivision;
1-18                 (2)  a state agency or the county in which the
1-19     individual serves, if the individual is a district judge, a
1-20     district attorney, or criminal district attorney or is a candidate
1-21     for an office described by this subdivision; or
1-22                 (3)  the state agency of which the individual is an
1-23     officer, if the individual is a state officer other than an officer
1-24     described by Subdivision (1) or (2).
 2-1           (b)  For purposes of this section, an individual does not
 2-2     have a substantial interest in a business entity if the individual
 2-3     is an employee of the business entity.
 2-4           SECTION 2.  Chapter 601, Government Code, is amended by
 2-5     adding Section 601.009 to read as follows:
 2-6           Sec. 601.009.  STATEMENT CONCERNING CONTRACTS WITH  POLITICAL
 2-7     SUBDIVISION.  (a)  In this section:
 2-8                 (1)  "Business entity" has the meaning assigned by
 2-9     Section 572.002.
2-10                 (2)  "Elective office" means any elective public office
2-11     other than:
2-12                       (A)  an office to which Subchapter B, Chapter
2-13     572, applies; or
2-14                       (B)  an office to which Subchapter A or C,
2-15     Chapter 159, Local Government Code, applies.
2-16                 (3)  "Substantial interest" means a substantial
2-17     interest as determined under Sections 572.005 and 572.0231(b).
2-18           (b)  A person who holds or is a candidate for an elective
2-19     office shall file a sworn statement that:
2-20                 (1)  identifies and states the amount of any executory
2-21     contract between:
2-22                       (A)  the person or a business entity in which the
2-23     person has a substantial interest; and
2-24                       (B)  the political subdivision served by the
2-25     office held or sought by the person; or
2-26                 (2)  states that neither the person nor a business
2-27     entity in which the person has a substantial interest is a party to
 3-1     a contract  described by Subdivision (1).
 3-2           (c)  The statement must be on a form prescribed by the Texas
 3-3     Ethics Commission and must be filed with the authority with whom a
 3-4     candidate for the office held or sought is required to file a
 3-5     campaign treasurer appointment under Chapter 252, Election Code. An
 3-6     officeholder shall file the statement within the time prescribed by
 3-7     Section 572.026. A candidate shall file the statement within the
 3-8     time prescribed by Section 572.027. The timeliness of the filing is
 3-9     determined by Section 572.029.
3-10           (d)  A statement filed under this section is a public record.
3-11     The authority with whom a statement is filed shall maintain the
3-12     statement in a manner that is accessible to the public during
3-13     regular business hours.
3-14           (e)  If a statement required under this section is determined
3-15     to be late, the person responsible for filing the statement is
3-16     civilly liable to the political subdivision of which the office
3-17     held or sought is part for an amount not to exceed $1,000. The
3-18     county attorney or the district or criminal district attorney with
3-19     civil jurisdiction may not initiate suit for the penalty until the
3-20     10th day after the date a notice concerning the late statement is
3-21     mailed to the person.  If the person files the statement before the
3-22     10th day after the date the notice is mailed, the authority with
3-23     whom the report is filed shall notify the county attorney or the
3-24     district or criminal district attorney, and the civil suit under
3-25     this subsection may not be initiated.
3-26           (f)  A person required to file a statement under this section
3-27     commits an offense if the person knowingly fails to file the
 4-1     statement.  An offense under this subsection is a Class B
 4-2     misdemeanor.
 4-3           SECTION 3.  Section 159.003(b), Local Government Code, is
 4-4     amended to read as follows:
 4-5           (b)  The statement must:
 4-6                 (1)  be filed with the county clerk of the county in
 4-7     which the officer or candidate resides; and
 4-8                 (2)  comply with Sections 572.022, [and] 572.023, and
 4-9     572.0231, Government Code.
4-10           SECTION 4.  Section 159.052(a), Local Government Code, is
4-11     amended to read as follows:
4-12           (a)  A county judicial officer or a candidate for office as a
4-13     county judicial officer shall file with the county clerk or the
4-14     commission a financial statement that complies with Sections
4-15     572.022, [and] 572.023, and 572.0231, Government Code.
4-16           SECTION 5.  This Act takes effect September 1, 1999.
4-17           SECTION 6.  (a)  Section 572.0231, Government Code, as added
4-18     by this Act, and Sections 159.003(b) and 159.052(a), Local
4-19     Government Code, as amended by this Act, apply only to:
4-20                 (1)  a report required to be filed under Subchapter B,
4-21     Chapter 572, Government Code, or Subchapter A or C, Chapter 159,
4-22     Local Government Code, as applicable, on or after September 1,
4-23     1999; and
4-24                 (2)  a contract entered into on or after September 1,
4-25     1999.
4-26           (b)  Section 601.009, Government Code, as added by this Act,
4-27     applies only to a contract entered into on or after September 1,
 5-1     1999.
 5-2           SECTION 7.  The importance of this legislation and the
 5-3     crowded condition of the calendars in both houses create an
 5-4     emergency and an imperative public necessity that the
 5-5     constitutional rule requiring bills to be read on three several
 5-6     days in each house be suspended, and this rule is hereby suspended.