By Dunnam                                             H.B. No. 1460
         76R2796 DB-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to lobbying activities in connection with certain judicial
 1-3     rules.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 305.001, Government Code, is amended to
 1-6     read as follows:
 1-7           Sec. 305.001.  POLICY.  The operation of responsible
 1-8     democratic government requires that the people be afforded the
 1-9     fullest opportunity to petition their government for the redress of
1-10     grievances and to express freely their opinions on legislation,
1-11     administrative actions, pending executive actions, and current
1-12     issues to individual members of the legislature, legislative
1-13     committees, state agencies, and members of the judicial and
1-14     executive branch.  To preserve and maintain the integrity of the
1-15     legislative and administrative processes, it is necessary to
1-16     disclose publicly and regularly the identity, expenditures, and
1-17     activities of certain persons who, by direct communication with
1-18     government officers, engage in efforts to persuade members of the
1-19     legislative or executive branch to take specific actions.
1-20           SECTION 2.  Section 305.002, Government Code, is amended by
1-21     amending Subdivision (1) and adding Subdivisions (12), (13), and
1-22     (14) to read as follows:
1-23                 (1)  "Administrative action" means rulemaking,
1-24     including judicial rulemaking, licensing, or any other matter that
 2-1     may be the subject of action by a state agency, including the
 2-2     proposal, consideration, or approval of the matter.
 2-3                 (12)  "Member of the judicial branch" means the chief
 2-4     justice or a justice of the supreme court, the presiding judge or a
 2-5     judge of the court of criminal appeals, or an employee of either
 2-6     court.
 2-7                 (13)  "Judicial rulemaking" means an action by the
 2-8     supreme court or the court of criminal appeals to adopt, amend, or
 2-9     repeal a rule of civil or appellate procedure or evidence.
2-10                 (14)  "State officer or employee" means:
2-11                       (A)  a member of the legislative branch;
2-12                       (B)  a member of the judicial branch; or
2-13                       (C)  a member of the executive branch.
2-14           SECTION 3.  Sections 305.003(a) and (b), Government Code, are
2-15     amended to read as follows:
2-16           (a)  A person must register with the commission under this
2-17     chapter if the person:
2-18                 (1)  makes a total expenditure of an amount determined
2-19     by commission rule but not less than $200 in a calendar quarter,
2-20     not including the person's own travel, food, or lodging expenses or
2-21     the person's own membership dues, on activities described in
2-22     Section 305.006(b) to communicate directly with a state officer or
2-23     employee [one or more members of the legislative or executive
2-24     branch] to influence legislation or administrative action; or
2-25                 (2)  receives compensation or reimbursement, not
2-26     including reimbursement for the person's own travel, food, or
2-27     lodging expenses or the person's own membership dues, of more than
 3-1     an amount determined by commission rule but not less than $200 in a
 3-2     calendar quarter from another person to communicate directly with a
 3-3     state officer or employee [member of the legislative or executive
 3-4     branch] to influence legislation or  administrative action.
 3-5           (b)  Subsection (a)(2) requires a person to register if the
 3-6     person, as part of the person's [his] regular employment, has
 3-7     communicated directly with a state officer or employee [member of
 3-8     the legislative or executive branch] to influence legislation or
 3-9     administrative action on behalf of the person by whom the person
3-10     [he] is compensated or reimbursed, whether or not the person
3-11     receives any compensation for the communication in addition to the
3-12     salary for that regular employment.  However, Subsection (a)(2)
3-13     does not require a state officer or employee [member of the
3-14     judicial, legislative, or executive branch of state government] or
3-15     an officer or employee of a political subdivision of the state to
3-16     register.
3-17           SECTION 4.  Section 305.004, Government Code, is amended to
3-18     read as follows:
3-19           Sec. 305.004.  EXCEPTIONS.  The following persons are not
3-20     required to register under this chapter:
3-21                 (1)  a person who owns, publishes, or is employed by a
3-22     newspaper, any other regularly published periodical, a radio
3-23     station, a television station, a wire service, or any other bona
3-24     fide news medium that in the ordinary course of business
3-25     disseminates news, letters to the editors, editorial or other
3-26     comment, or paid advertisements that directly or indirectly oppose
3-27     or promote legislation or administrative action, if the person does
 4-1     not engage in further or other activities that require registration
 4-2     under this chapter and does not represent another person in
 4-3     connection with influencing legislation or administrative action;
 4-4                 (2)  a person whose only direct communication with a
 4-5     state officer or employee [member of the legislative or executive
 4-6     branch] to influence legislation or administrative action is an
 4-7     appearance before or testimony to a state officer or employee [one
 4-8     or more members of the legislative or executive branch] in a
 4-9     hearing conducted by or on behalf of [either] the legislative,
4-10     judicial, or the executive branch and who does not receive special
4-11     or extra compensation for the appearance other than actual expenses
4-12     incurred in attending the hearing;
4-13                 (3)  a person whose only activity is to encourage or
4-14     solicit members, employees, or stockholders of an entity by whom
4-15     the person is reimbursed, employed, or retained to communicate
4-16     directly with a state officer or employee [members of the
4-17     legislative or executive branch] to influence legislation or
4-18     administrative action;
4-19                 (4)  a person whose only activity to influence
4-20     legislation or administrative action is to compensate or reimburse
4-21     an individual registrant to act in the person's behalf to
4-22     communicate directly with a state officer or employee [member of
4-23     the legislative or executive branch] to influence legislation or
4-24     administrative action;
4-25                 (5)  a person whose only activity to influence
4-26     legislation or administrative action is attendance at a meeting or
4-27     entertainment event attended by a state officer or employee [member
 5-1     of the legislative or executive branch] if the total cost of the
 5-2     meeting or entertainment event is paid by a business entity, union,
 5-3     or association;
 5-4                 (6)  a person whose only compensation subject to
 5-5     Section 305.003(a)(2) consists of reimbursement for any wages not
 5-6     earned due to attendance at a meeting or entertainment event,
 5-7     travel to and from the meeting or entertainment event, admission to
 5-8     the meeting or entertainment event, and any food and beverage
 5-9     consumed at the meeting or entertainment event if the meeting or
5-10     entertainment event is attended by a state officer or employee
5-11     [member of the legislative or executive branch] and if the total
5-12     cost of the meeting or entertainment event is paid by a business
5-13     entity, union, or association; and
5-14                 (7)  a person who communicates directly with a state
5-15     officer or employee [member of the legislative or executive branch]
5-16     on behalf of a political party concerning legislation or
5-17     administrative action, and whose expenditures and compensation, as
5-18     described in Section 305.003, combined do not exceed $5,000 a
5-19     calendar year.
5-20           SECTION 5.  Sections 305.005(e), (f), and (j), Government
5-21     Code, are amended to read as follows:
5-22           (e)  A person required to register under this chapter who has
5-23     not registered or whose registration has expired shall file the
5-24     registration form and submit the registration fee not later than
5-25     the fifth day after the date on which the person or the person's
5-26     employee makes the first direct communication with a state officer
5-27     or employee [member of the legislative or executive branch] that
 6-1     requires the person's registration.
 6-2           (f)  The registration must be written and verified and must
 6-3     contain:
 6-4                 (1)  the registrant's full name and address;
 6-5                 (2)  the registrant's normal business, business phone
 6-6     number, and business address;
 6-7                 (3)  the full name and address of each person:
 6-8                       (A)  who reimburses, retains, or employs the
 6-9     registrant to communicate directly with a state officer or employee
6-10     [member of the legislative or executive branch] to influence
6-11     legislation or administrative action; and
6-12                       (B)  on whose behalf the registrant has
6-13     communicated directly with a state officer or employee [member of
6-14     the legislative or executive branch] to influence legislation or
6-15     administrative action;
6-16                 (4)  the subject matter of the legislation or of the
6-17     administrative action that is the subject of the registrant's
6-18     direct communication with a state officer or employee [member of
6-19     the legislative or executive branch] and, if applicable, the docket
6-20     number or other administrative designation of the administrative
6-21     action;
6-22                 (5)  for each person employed or retained by the
6-23     registrant for the purpose of assisting in direct communication
6-24     with a state officer or employee [member of the legislative or
6-25     executive branch] to influence legislation or administrative
6-26     action:
6-27                       (A)  the full name, business address, and
 7-1     occupation of the person; and
 7-2                       (B)  the subject matter of the legislation or of
 7-3     the administrative action to which the person's activities
 7-4     reportable under this section were related and, if applicable, the
 7-5     docket number or other administrative designation of the
 7-6     administrative action; and
 7-7                 (6)  the amount of compensation or reimbursement paid
 7-8     by each person who reimburses, retains, or employs the registrant
 7-9     for the purpose of communicating directly with a state officer or
7-10     employee [member of the legislative or executive branch] or on
7-11     whose behalf the registrant communicates directly with a state
7-12     officer or employee [member of the legislative or executive
7-13     branch].
7-14           (j)  If the person described by Subsection (f)(3) is a
7-15     business entity engaged in the representation of clients for the
7-16     purpose of influencing legislation or administrative action, the
7-17     registrant shall give the information required by that subdivision
7-18     for each client on whose behalf the registrant communicated
7-19     directly with a state officer or employee [member of the
7-20     legislative or executive branch].
7-21           SECTION 6.  Section 305.0051(a), Government Code, is amended
7-22     to read as follows:
7-23           (a)  Except as provided by Subsection (b), the commission by
7-24     rule may require an officer or employee of a political subdivision
7-25     or other governmental entity created under the Texas Constitution
7-26     or laws of this state who communicates directly with a state
7-27     officer or employee [member of the legislative or executive branch]
 8-1     concerning legislation or administrative action, other than routine
 8-2     matters, to file with the commission the officer's or employee's
 8-3     name, the name of the entity represented, the subject matter of the
 8-4     communication, and other information the commission considers
 8-5     relevant.
 8-6           SECTION 7.  Sections 305.006(b) and (d), Government Code, are
 8-7     amended to read as follows:
 8-8           (b)  The report must contain the total expenditures under a
 8-9     category listed in this subsection that the registrant made to
8-10     communicate directly with a state officer or employee [member of
8-11     the legislative or executive branch] to influence legislation or
8-12     administrative action and that are directly attributable, as that
8-13     term is used in Section 305.0062(b), to a state officer or employee
8-14     [member of the legislative or executive branch] or the immediate
8-15     family of a state officer or employee [member of the legislative or
8-16     executive branch].  The report must also include expenditures for
8-17     the direct communications under a category listed in this
8-18     subsection that other people made on the registrant's behalf if the
8-19     expenditures were made with the registrant's consent or were
8-20     ratified by the registrant.  The expenditures must be reported in
8-21     the following categories:
8-22                 (1)  transportation and lodging;
8-23                 (2)  food and beverages;
8-24                 (3)  entertainment;
8-25                 (4)  gifts, other than awards and mementos;
8-26                 (5)  awards and mementos; and
8-27                 (6)  expenditures made for the attendance of state
 9-1     officers or employees [members of the legislative or executive
 9-2     branch] at political fund-raisers or charity events.
 9-3           (d)  The report must also contain a list of the specific
 9-4     categories of subject matters about which the registrant, any
 9-5     person the registrant retains or employs to appear on the
 9-6     registrant's behalf, or any other person appearing on the
 9-7     registrant's behalf communicated directly with a state officer or
 9-8     employee [member of the legislative or executive branch] and that
 9-9     has not been reported under Section 305.005.  The list must include
9-10     the number or other designation assigned to the administrative
9-11     action, if known.
9-12           SECTION 8.  Section 305.0061, Government Code, is amended to
9-13     read as follows:
9-14           Sec. 305.0061.  DETAILED REPORTS.  (a)  If a registrant or a
9-15     person on the registrant's behalf and with the registrant's consent
9-16     or ratification makes expenditures that exceed $50 a day for
9-17     transportation or lodging for a state officer or employee [member
9-18     of the legislative or executive branch], the registrant shall also
9-19     state the following on the report filed under Section 305.006:
9-20                 (1)  the name of the state officer or employee [member
9-21     of the legislative or executive branch] in whose behalf the
9-22     expenditure is made;
9-23                 (2)  the place and date of the transportation or
9-24     lodging; and
9-25                 (3)  the purpose of the transportation or lodging.
9-26           (b)  If a registrant or a person on the registrant's behalf
9-27     and with the registrant's consent or ratification makes
 10-1    expenditures that exceed $50 a day for food and beverages for a
 10-2    state officer or employee [member of the legislative or executive
 10-3    branch] or makes expenditures that exceed $50 a day for
 10-4    entertainment for a state officer or employee [member of the
 10-5    legislative or executive branch] or for the immediate family of a
 10-6    state officer or employee [member of the legislative or executive
 10-7    branch], the registrant shall also state the following on the
 10-8    report filed under Section 305.006:
 10-9                (1)  the name of the state officer or employee [member
10-10    of the legislative or executive branch] in whose behalf the
10-11    expenditure is made;
10-12                (2)  the place and date of the expenditure; and
10-13                (3)  the amount of the expenditure by the appropriate
10-14    category of the amount, as determined by the commission.
10-15          (c)  If a registrant or a person on the registrant's behalf
10-16    and with the registrant's consent or ratification gives to a state
10-17    officer or employee [member of the legislative or executive branch]
10-18    a gift or an  award or memento, the value of which exceeds $50 per
10-19    gift, award, or memento, the registrant shall also state the
10-20    following on the report filed under Section 305.006:
10-21                (1)  the name of the state officer or employee [member
10-22    of the legislative or executive branch] in whose behalf the
10-23    expenditure is made;
10-24                (2)  a general description of the gift, award, or
10-25    memento; and
10-26                (3)  the amount of the expenditure by the appropriate
10-27    category of the amount, as determined by the commission.
 11-1          (d)  If a registrant or a person on the registrant's behalf
 11-2    and with the registrant's consent or ratification makes
 11-3    expenditures for the attendance of a state officer or employee
 11-4    [member of the legislative or executive branch] at a political
 11-5    fund-raiser or charity event, the registrant shall also state the
 11-6    following on the report filed under Section 305.006:
 11-7                (1)  the name of the state officer or employee [member
 11-8    of the legislative or executive branch] in whose behalf the
 11-9    expenditure is made;
11-10                (2)  the name of the charity or the name of the
11-11    candidate or officeholder for whom the political fund-raiser was
11-12    held, as applicable; and
11-13                (3)  the date of the fund-raiser or event.
11-14          (e)  If a registrant or a person on the registrant's behalf
11-15    and with the registrant's consent or ratification makes an
11-16    expenditure for a gift, award, or memento for a state officer or
11-17    employee [member of the legislative or executive branch] in
11-18    conjunction with an expenditure for the attendance of that member
11-19    at a political fund-raiser or charity event, the registrant shall
11-20    report the expenditure for the gift, award, or memento under
11-21    Subsection (c), if required, and not under Subsection (d).
11-22          (f)  If a registrant or a person on the registrant's behalf
11-23    with the registrant's consent or ratification makes an expenditure
11-24    described by Section 305.006(b)(1), (2), or (3) to communicate
11-25    directly with more than one state officer or employee [member of
11-26    the legislative or executive branch] to influence legislation or
11-27    administrative action and if the registrant cannot reasonably
 12-1    determine the amount that is directly attributable to an officer or
 12-2    employee [a member], the registrant shall apportion the expenditure
 12-3    made by that registrant according to the number of persons in
 12-4    attendance.  The registrant shall report as required by Subsection
 12-5    (a), (b), or (c) if the expenditure for each person exceeds the
 12-6    amount provided under Subsection (a), (b), or (c).
 12-7          SECTION 9.  Sections 305.0062(a), (c), and (d), Government
 12-8    Code, are amended to read as follows:
 12-9          (a)  The report filed under Section 305.006 must also contain
12-10    the total expenditures described by Section 305.006(b) that are
12-11    directly attributable to state officers or employees [members of
12-12    the legislative or executive branch].  The expenditures must be
12-13    stated in only one of the following categories:
12-14                (1)  state senators;
12-15                (2)  state representatives;
12-16                (3)  justices of the supreme court and judges of the
12-17    court of criminal appeals;
12-18                (4) [(3)]  elected or appointed state officers, other
12-19    than those described by Subdivision (1), [or] (2), or (3);
12-20                (5) [(4)]  legislative agency employees;
12-21                (6) [(5)]  executive agency employees;
12-22                (7)  judicial branch employees;
12-23                (8) [(6)]  the immediate family of a state officer or
12-24    employee [member of the legislative or executive branch]; and
12-25                (9) [(7)]  events to which all legislators are invited.
12-26          (c)  All expenditures made by a registrant or a person on the
12-27    registrant's behalf and with the registrant's consent or
 13-1    ratification that benefit members of the immediate family of a
 13-2    state officer or employee [members of the legislative or executive
 13-3    branch] shall be aggregated and reported under Subsection (a)(6).
 13-4          (d)  If a registrant cannot reasonably determine the amount
 13-5    of an expenditure under Section 305.006(b) that is directly
 13-6    attributable to a state officer or employee [member of the
 13-7    legislative or executive branch] as required by Subsection (a), the
 13-8    registrant shall apportion the expenditure made by that registrant
 13-9    or by others on the registrant's behalf and with the registrant's
13-10    consent or ratification according to the total number of persons in
13-11    attendance.  However, if an expenditure is for an event to which
13-12    all legislators are invited, the registrant shall report the
13-13    expenditure under Subsection (a)(7) and not under any other
13-14    subdivision of that subsection or any other provision of this
13-15    chapter.
13-16          SECTION 10.  Section 305.021, Government Code, is amended to
13-17    read as follows:
13-18          Sec. 305.021.  FALSE COMMUNICATIONS.  A person, for the
13-19    purpose of influencing legislation or administrative action, may
13-20    not:
13-21                (1)  knowingly or wilfully make a false statement or
13-22    misrepresentation of the facts to a state officer or employee
13-23    [member of the legislative or executive branch]; or
13-24                (2)  cause a copy of a document the person knows to
13-25    contain a false statement to be received by a state officer or
13-26    employee [member of the legislative or executive branch] without
13-27    notifying the member in writing of the truth.
 14-1          SECTION 11.  Section 305.024, Government Code, is amended to
 14-2    read as follows:
 14-3          Sec. 305.024.  RESTRICTIONS ON EXPENDITURES.  (a) Except as
 14-4    provided by Section 305.025, a person registered under Section
 14-5    305.005 or a person on the registrant's behalf and with the
 14-6    registrant's consent or ratification may not offer, confer, or
 14-7    agree to confer to a state officer or employee [member of the
 14-8    legislative or executive branch]:
 14-9                (1)  a loan, including the guarantee or endorsement of
14-10    a loan;
14-11                (2)  a gift of cash or a negotiable instrument as
14-12    described by  Section 3.104, Business & Commerce Code;
14-13                (3)  an expenditure for transportation and lodging;
14-14                (4)  an expenditure or series of expenditures for
14-15    entertainment that in the aggregate exceed $500 in a calendar year;
14-16                (5)  an expenditure or series of expenditures for gifts
14-17    that in the aggregate exceed $500 in a calendar year;
14-18                (6)  an expenditure for an award or memento that
14-19    exceeds $500; or
14-20                (7)  an expenditure described by Section 305.006(b)(1),
14-21    (2), (3), or (6) unless the registrant is present at the event.
14-22          (b)  Except as provided by Section 305.025, a state officer
14-23    or employee [member of the legislative or executive branch] may not
14-24    solicit, accept, or agree to accept from a person registered under
14-25    Section 305.005 or from a person on the registrant's behalf and
14-26    with the registrant's consent or ratification an item listed in
14-27    Subsection (a).
 15-1          SECTION 12.  Section 305.025, Government Code, is amended to
 15-2    read as follows:
 15-3          Sec. 305.025.  EXCEPTIONS.  Section 305.024 does not
 15-4    prohibit:
 15-5                (1)  a loan in the due course of business from a
 15-6    corporation or other business entity that is legally engaged in the
 15-7    business of lending money and that has conducted that business
 15-8    continuously for more than one year before the loan is made;
 15-9                (2)  a loan or guarantee of a loan or a gift made or
15-10    given by a person related within the second degree by affinity or
15-11    consanguinity to the state officer or employee [member of the
15-12    legislative or executive branch];
15-13                (3)  necessary expenditures for transportation and
15-14    lodging when the purpose of the travel is to explore matters
15-15    directly related to the duties of a state officer or employee
15-16    [member of the legislative or executive branch], such as
15-17    fact-finding trips, but not including attendance at merely
15-18    ceremonial events or pleasure trips;
15-19                (4)  necessary expenditures for transportation and
15-20    lodging provided in connection with a conference, seminar,
15-21    educational program, or similar event in which the state officer or
15-22    employee [member] renders services, such as addressing an audience
15-23    or engaging in a seminar, to the extent that those services are
15-24    more than merely perfunctory;
15-25                (5)  an incidental expenditure for transportation as
15-26    determined by commission rule; or
15-27                (6)  a political contribution as defined by Section
 16-1    251.001, Election Code.
 16-2          SECTION 13.  (a) This Act takes effect January 1, 2000.
 16-3          (b)  Chapter 305, Government Code, as amended by this Act,
 16-4    applies only to an activities report required by Section 305.006,
 16-5    Government Code, that is required to be filed on or after February
 16-6    10, 2000.  An activities report that is required to be filed before
 16-7    that date is governed by the law in effect before the effective
 16-8    date of this Act, and the former law is continued for that purpose.
 16-9          (c)  Chapter 305, Government Code, as amended by this Act,
16-10    applies only to a modified activities report required by Section
16-11    305.0063, Government Code, that is required to be filed on or after
16-12    January 10, 2001.  A modified activities report that is required to
16-13    be filed before that date is governed by the law in effect before
16-14    the effective date of this Act, and the former law is continued for
16-15    that purpose.
16-16          (d)  An activities report described by Subsection (b) of this
16-17    section or a modified activities report described by Subsection (c)
16-18    of this section must include an expenditure made on or after
16-19    January 1, 2000, to communicate directly with a state officer or
16-20    employee to influence judicial rulemaking.
16-21          (e)  The change in law made to Chapter 305, Government Code,
16-22    by this Act applies only to an offense committed on or after the
16-23    effective date of this Act.  For the purposes of this section, an
16-24    offense is committed before the effective date of this Act if any
16-25    element of the offense occurs before the effective date.  An
16-26    offense committed before the effective date of this Act is covered
16-27    by the law in effect when the offense was committed, and the former
 17-1    law is continued in effect for that purpose.
 17-2          SECTION 14.  The importance of this legislation and the
 17-3    crowded condition of the calendars in both houses create an
 17-4    emergency and an imperative public necessity that the
 17-5    constitutional rule requiring bills to be read on three several
 17-6    days in each house be suspended, and this rule is hereby suspended.