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


Senate Research CenterC.S.H.B. 1168
By: Wilson (Harris)
State Affairs
5/11/2001
Committee Report (Substituted)


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. C.S.H.B. 1168
prohibits a lobbyist or certain political consultant from representing
opposing parties, except under certain conditions, and provides penalties
for violators. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Ethics Commission in
SECTION 3 (Section 305.030, Government Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 305.002(9), Government Code, to redefine
"registrant." 

SECTION 2.  Amends Chapter 305B, Government Code, by adding Section
305.028, 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 and from providing political services, as defined by
Section 305.030, to opposing parties.  

(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 and from providing political services, as defined by Section
305.030, 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.  

SECTION 3.  Amends Chapter 305B, Government Code, by adding Section
305.030, as follows: 

Sec. 305.030.  CONFLICTS OF INTEREST OF POLITICAL CONSULTANTS; REGISTRATION
REQUIRED.  Sets forth definitions for use in this section.  Provides that a
person is subject to Section 305.028 and is required to register with the
commission in a certain manner under certain conditions.  Requires the
commission to adopt rules as necessary to adapt the requirements of Section
305.005 to a person required to register under this section. Requires the
commission by rule to require a person required to register under this
section to file reports analogous to the reports required by a certain
section.  Requires the commission by rule to specify the contents of the
reports.  Provides that certain provisions do not apply to a person
required to register solely under this section 

SECTION 4.  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 5.  Effective date: September 1, 2001.
            Makes application of this Act prospective.