HBA-CBW H.B. 1168 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1168 By: Wilson State Affairs 2/16/2001 Introduced BACKGROUND AND PURPOSE Under current law, lobbying regulation does not include a client conflict of interest provision. A lobbyist is not prohibited from representing clients who are both for and against the same issue. House Bill 1168 prohibits a lobbyist from representing opposing parties and provides penalties when there is a violation. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 1168 amends the Government Code to prohibit a registrant (lobbyist) from representing opposing parties in communicating directly with a member of the legislative or executive branch to influence the same legislation or administrative action. The bill prohibits a lobbyist from representing a person in communicating directly with a member of the legislative or executive branch to influence legislation or administrative action if the representation of that person constitutes a conflict of interest between that person and matters involving or surrounding the lobbyist's employment. If such a conflict of interest exists, the bill authorizes the lobbyist to represent a client if the lobbyist reasonably believes the representation of each client will not be materially affected and each client consents in writing to the lobbyist's representation after full disclosure of the common representation. The bill prohibits a lobbyist who has represented multiple parties in a matter relating to the same legislation or administrative action from representing any of the parties in a dispute arising from the matter, unless prior written consent is obtained from all parties to the dispute. The bill requires the lobbyist to withdraw from any representation that is in conflict or becomes improper under this Act. The bill prohibits other persons associated with the lobbyist from engaging in conduct prohibited by the Act. The bill requires the lobbyist to affirm, under oath, compliance with these provisions in each report filed with the Texas Ethics Commission (commission). The bill requires a lobbyist to file with the commission a report describing each legislative document in which a client has retained the lobbyist to communicate directly with a member of the legislative or executive branch to influence legislative action. The bill requires the lobbyist to simultaneously notify each of the lobbyist's clients of such a report and sets forth reporting requirements. The bill authorizes the commission to receive complaints regarding a violation of this Act and, if the commission determines a violation has occurred, to impose any penalty it may impose under another state law. Additionally, in such situations, the bill requires the commission to rescind the person's registration and prohibits the commission from allowing the person to register with the commission until the second anniversary of the date of the rescission. EFFECTIVE DATE September 1, 2001.