SRC-JBJ H.B. 1168 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 1168
By: Wilson (Harris)
State Affairs
4/27/2001
Engrossed


DIGEST AND PURPOSE 

Currently, the regulation of the practice of lobbying does not include a
client conflict of interest provision, allowing a lobbyist to represent
clients who are both for and against the same issue.  H.B. 1168 prohibits a
lobbyist from representing opposing parties, except under certain
conditions, and provides penalties for violators. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 305B, Government Code, by adding Sections
305.028 and 305.029, as follows: 

Sec. 305.028.  PROHIBITED CONFLICTS OF INTEREST.  (a)  Prohibits a
registrant, except as permitted by Subsection (c), from representing
opposing parties in communicating directly with a member of  the
legislative or executive branch to influence the same legislation or
administrative action.  

(b)  Prohibits a registrant, except as permitted by Subsection (c), from
representing a person in communicating directly with a member of the
legislative or executive branch to influence legislation or administrative
action under certain conditions. 

(c)  Authorizes a registrant to represent a client in the circumstances
described in Subsection (a) or (b) under certain conditions. 

(d)  Requires a registrant, if the registrant has accepted representation
in conflict with the restrictions of this section, or if multiple
representation properly accepted becomes improper under this section, to
promptly withdraw from one or more representations to the extent necessary
for any remaining representation not to be in conflict with this section.  

(e)  Prohibits an employer or concern employing the registrant or a partner
or other person associated with the registrant, if a registrant would be
prohibited by this section from engaging in particular conduct, from
engaging in that conduct.  

(f)  Requires a registrant, in each report filed with the Texas Ethics
Commission (commission), to affirm, under oath, that the registrant has
complied with this section.  

(g)  Authorizes the commission to receive complaints regarding a violation
of this section.  Authorizes the commission, if the commission determines a
violation of this section has occurred, after notice and hearing, to impose
any penalty that the  commission may impose under another state law; to
rescind the person's registration; and to prohibit the person from
registering with the commission for a period not to exceed two years from
the date of the rescission of the person's registration. 

(h)  Provides that a penalty under this section is in addition to any other
enforcement action that the commission or another person may take under
this chapter.  
  
(i)  Provides that a restriction on a registrant under this section is in
addition to any restrictions on the registrant's conduct under Section
305.0011.  

Sec. 305.029.  CERTAIN CONFLICTS PROHIBITED.  (a)  Provides that a conflict
of interest exists with respect to a person for purposes of Section
305.028.  Prohibits the commission from accepting the registration of the
person under Section 305.005, under certain conditions. 

(b)  Provides that this prohibition of this section is in addition to the
prohibition of Section 12.155, Utilities Code. 

SECTION 2.  Amends Section 305.031, Government Code, to provide that a
person commits an offense if the person intentionally or knowingly violates
a provision of this chapter other than Section 305.0011, 305.022, or
305.028. Provides that a person commits an offense if the person knowingly
violates Section 305.028.  Provides that an offense under this subsection
is a Class B misdemeanor. 

SECTION 3.  Amends Section 556.006, Government Code, to prohibit a state
agency or subdivision of the state from using appropriated money or
employees to attempt to influence the passage or defeat of a legislative
measure.  Provides that an employee of the state or a subdivision of the
state who indicates that they are providing resource testimony to a
committee and attempts to influence the passage or defeat of a legislative
measure is liable for perjury charges. 
 
SECTION 4.  Effective date: September 1, 2001.
            Makes application of this Act prospective.