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 * * * * *