1-1     By:  Wentworth, Shapleigh, Whitmire                   S.B. No. 1047
 1-2           (In the Senate - Filed March 9, 1999; March 10, 1999, read
 1-3     first time and referred to Committee on State Affairs;
 1-4     April 6, 1999, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 6, Nays 0; April 6, 1999,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1047               By:  Wentworth
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the application of the open meetings and open records
1-11     laws to information about, and certain negotiations concerning, a
1-12     business prospect who engages in economic development negotiations
1-13     with a governmental body.
1-14           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-15           SECTION 1.  Subchapter D, Chapter 551, Government Code, is
1-16     amended by adding Section 551.086 to read as follows:
1-17           Sec. 551.086.  DELIBERATION REGARDING ECONOMIC DEVELOPMENT
1-18     NEGOTIATIONS; CLOSED MEETING.  This chapter does not require a
1-19     governmental body to conduct an open meeting:
1-20                 (1)  to discuss or deliberate regarding commercial or
1-21     financial information that the governmental body has received from
1-22     a business prospect that the governmental body seeks to have
1-23     locate, stay, or expand in or near the jurisdiction of the
1-24     governmental body and with which the governmental body is
1-25     conducting economic development negotiations; or
1-26                 (2)  to deliberate the offer of a financial or other
1-27     incentive to a business prospect described by Subdivision (1).
1-28           SECTION 2.  Subchapter C, Chapter 552, Government Code, is
1-29     amended by adding Section 552.131 to read as follows:
1-30           Sec. 552.131.  EXCEPTION:  ECONOMIC DEVELOPMENT INFORMATION.
1-31     (a)  Information is excepted from the requirements of Section
1-32     552.021 if the information relates to economic development
1-33     negotiations involving a governmental body and a business prospect
1-34     that the governmental body seeks to have locate, stay, or expand in
1-35     or near the jurisdiction of the governmental body and the
1-36     information relates to:
1-37                 (1)  a trade secret of the business prospect; or
1-38                 (2)  commercial or financial information for which it
1-39     is demonstrated, based on specific factual evidence, that
1-40     disclosure would cause substantial competitive harm to the person
1-41     from whom the information was obtained.
1-42           (b)  Unless and until an agreement is reached with the
1-43     business prospect, information about a financial or other incentive
1-44     being offered to the business prospect by the governmental body or
1-45     by another person is excepted from the requirements of Section
1-46     552.021.
1-47           (c)  After an agreement is reached with the business
1-48     prospect, this section does not except from the requirements of
1-49     Section 552.021 information about a financial or other incentive
1-50     being offered to the business prospect:
1-51                 (1)  by the government body; or
1-52                 (2)  by another person, if the financial or other
1-53     incentive may directly or indirectly result in the expenditure of
1-54     public funds by a governmental body or in a reduction in revenues
1-55     received by a governmental body from any source of revenue.
1-56                                  * * * * *