77R11320 E
By Wilson H.B. No. 1168
Substitute the following for H.B. No. 1168:
By Wolens C.S.H.B. No. 1168
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to conflicts of interest of a lobbyist; providing a
1-3 penalty.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter B, Chapter 305, Government Code, is
1-6 amended by adding Section 305.028 to read as follows:
1-7 Sec. 305.028. PROHIBITED CONFLICTS OF INTEREST. (a) Except
1-8 as permitted by Subsection (c), a registrant may not represent
1-9 opposing parties in communicating directly with a member of the
1-10 legislative or executive branch to influence the same legislation
1-11 or administrative action.
1-12 (b) Except as permitted by Subsection (c), a registrant may
1-13 not represent a person in communicating directly with a member of
1-14 the legislative or executive branch to influence legislation or
1-15 administrative action if the representation of that person:
1-16 (1) involves a substantially related matter in which
1-17 that person's interests are materially and directly adverse to the
1-18 interests of:
1-19 (A) another client of the registrant;
1-20 (B) an employer or concern employing the
1-21 registrant; or
1-22 (C) another client of a partner or other person
1-23 associated with the registrant; or
1-24 (2) reasonably appears to be or potentially be
2-1 adversely limited by:
2-2 (A) the registrant's, the employer's or
2-3 concern's, or the partner's or other associated person's
2-4 responsibilities to another client or to a third person; or
2-5 (B) the registrant's, employer's or concern's,
2-6 or partner's or other associated person's own interests.
2-7 (c) A registrant may represent a client in the circumstances
2-8 described in Subsection (a) or (b) if:
2-9 (1) the registrant reasonably believes the
2-10 representation of each client will not be materially affected;
2-11 (2) not later than the second business day after the
2-12 date the registrant becomes aware of an actual or potential
2-13 conflict described by Subsection (a) or (b), the registrant
2-14 provides written notice, in the manner required by the commission,
2-15 to each affected or potentially affected client; and
2-16 (3) not later than the 10th day after the date the
2-17 registrant becomes aware of an actual or potential conflict
2-18 described by Subsection (a) or (b), the registrant files with the
2-19 commission a statement indicating that there is an actual or
2-20 potential conflict and that the registrant has notified each
2-21 affected or potentially affected client as required by Subdivision
2-22 (2).
2-23 (d) If a registrant has accepted representation in conflict
2-24 with the restrictions of this section, or if multiple
2-25 representation properly accepted becomes improper under this
2-26 section, the registrant shall promptly withdraw from one or more
2-27 representations to the extent necessary for any remaining
3-1 representation not to be in conflict with this section.
3-2 (e) If a registrant would be prohibited by this section from
3-3 engaging in particular conduct, an employer or concern employing
3-4 the registrant or a partner or other person associated with the
3-5 registrant may not engage in that conduct.
3-6 (f) In each report filed with the commission, a registrant
3-7 shall, under oath, affirm that the registrant has complied with
3-8 this section.
3-9 (g) The commission may receive complaints regarding a
3-10 violation of this section. If the commission determines a
3-11 violation of this section has occurred, the commission, after
3-12 notice and hearing:
3-13 (1) may impose any penalty that the commission may
3-14 impose under another state law; and
3-15 (2) may rescind the person's registration and may
3-16 prohibit the person from registering with the commission for a
3-17 period not to exceed two years from the date of the rescission of
3-18 the person's registration.
3-19 (h) A penalty under this section is in addition to any other
3-20 enforcement action that the commission or another person may take
3-21 under this chapter.
3-22 (i) A restriction on a registrant under this section is in
3-23 addition to any restrictions on the registrant's conduct under
3-24 Section 305.0011.
3-25 SECTION 2. Section 305.031, Government Code, is amended to
3-26 read as follows:
3-27 Sec. 305.031. CRIMINAL PENALTIES. (a) A person commits an
4-1 offense if the person intentionally or knowingly violates a
4-2 provision of this chapter other than Section 305.0011, [or]
4-3 305.022, or 305.028. An offense under this subsection is a Class A
4-4 misdemeanor.
4-5 (b) A person commits an offense if the person intentionally
4-6 or knowingly violates Section 305.022. An offense under this
4-7 subsection is a felony of the third degree.
4-8 (c) A person commits an offense if the person knowingly
4-9 violates Section 305.028. An offense under this subsection is a
4-10 Class B misdemeanor.
4-11 (d) This chapter does not affect the criminal responsibility
4-12 of a person under the state laws relating to perjury.
4-13 (e) [(d)] This section does not prohibit the commission from
4-14 imposing a civil penalty for a violation.
4-15 SECTION 3. (a) This Act takes effect September 1, 2001.
4-16 (b) The change in law made by this Act applies only to a
4-17 registrant's communication directly with a member of the
4-18 legislative or executive branch to influence legislation or
4-19 administrative action if the communication occurs on or after
4-20 September 1, 2001. A communication that occurs before September 1,
4-21 2001, is governed by the law as it existed immediately before the
4-22 effective date of this Act, and that law is continued in effect for
4-23 this purpose.