By Wilson H.B. No. 1168
77R4194 DLF-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to conflicts of interest of a lobbyist.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subchapter B, Chapter 305, Government Code, is
1-5 amended by adding Section 305.028 to read as follows:
1-6 Sec. 305.028. PROHIBITED CONFLICTS OF INTEREST. (a) A
1-7 registrant may not represent opposing parties in communicating
1-8 directly with a member of the legislative or executive branch to
1-9 influence the same legislation or administrative action.
1-10 (b) Except as permitted by Subsection (c), a registrant may
1-11 not represent a person in communicating directly with a member of
1-12 the legislative or executive branch to influence legislation or
1-13 administrative action if the representation of that person:
1-14 (1) involves a substantially related matter in which
1-15 that person's interests are materially and directly adverse to the
1-16 interests of:
1-17 (A) another client of the registrant;
1-18 (B) an employer or concern employing the
1-19 registrant; or
1-20 (C) another client of a partner or other person
1-21 associated with the registrant; or
1-22 (2) reasonably appears to be or potentially be
1-23 adversely limited by:
1-24 (A) the registrant's, the employer's or
2-1 concern's, or the partner's or other associated person's
2-2 responsibilities to another client or to a third person; or
2-3 (B) the registrant's, employer's or concern's,
2-4 or partner's or other associated person's own interests.
2-5 (c) A registrant may represent a client in the circumstances
2-6 described in Subsection (b) if:
2-7 (1) the registrant reasonably believes the
2-8 representation of each client will not be materially affected; and
2-9 (2) each affected or potentially affected client
2-10 consents, in writing, to the registrant's representation after full
2-11 disclosure of the existence, nature, implications, and possible
2-12 adverse consequences of the common representation and the
2-13 advantages involved, if any.
2-14 (d) A registrant who has represented multiple parties in a
2-15 matter relating to the same legislation or administrative action
2-16 may not represent any of the parties in a dispute among the parties
2-17 arising out of the matter, unless prior written consent is obtained
2-18 from all of the parties to the dispute.
2-19 (e) If a registrant has accepted representation in conflict
2-20 with the restrictions of this section, or if multiple
2-21 representation properly accepted becomes improper under this
2-22 section, the registrant shall promptly withdraw from one or more
2-23 representations to the extent necessary for any remaining
2-24 representation not to be in conflict with this section.
2-25 (f) If a registrant would be prohibited by this section from
2-26 engaging in particular conduct, an employer or concern employing
2-27 the registrant or a partner or other person associated with the
3-1 registrant may not engage in that conduct.
3-2 (g) In each report filed with the commission, a registrant
3-3 shall, under oath, affirm that the registrant has complied with
3-4 this section.
3-5 (h) A registrant shall file with the commission a report
3-6 describing each legislative document, including a bill or
3-7 resolution, in regard to which a client has retained the registrant
3-8 to communicate directly with a member of the legislative or
3-9 executive branch to influence legislative action. The report must
3-10 be filed not later than the third day after the date the
3-11 legislative document is filed with a legislative body or, if the
3-12 document is filed before the registrant is retained, not later than
3-13 the third day after the registrant is retained. The registrant
3-14 shall simultaneously notify each of the registrant's clients of any
3-15 report the registrant is required to file under this subsection.
3-16 The report must state:
3-17 (1) the date on which the registrant was retained to
3-18 communicate directly with a member of the legislative or executive
3-19 branch to influence legislative action on the legislative document;
3-20 and
3-21 (2) the client's purpose, as stated by the client, in
3-22 retaining the registrant.
3-23 (i) The commission may receive complaints regarding a
3-24 violation of this section. If the commission determines a
3-25 violation of this section has occurred, the commission, after
3-26 notice and hearing:
3-27 (1) may impose any penalty that the commission may
4-1 impose under another state law; and
4-2 (2) shall rescind the person's registration and may
4-3 not allow the person to register with the commission until the
4-4 second anniversary of the date of the rescission of the person's
4-5 registration.
4-6 (j) A penalty under this section is in addition to any other
4-7 enforcement action that the commission or another person may take
4-8 under this chapter.
4-9 (k) A restriction on a registrant under this section is in
4-10 addition to any restrictions on the registrant's conduct under
4-11 Section 305.0011.
4-12 SECTION 2. (a) This Act takes effect September 1, 2001.
4-13 (b) The change in law made by this Act applies only to a
4-14 registrant's communication directly with a member of the
4-15 legislative or executive branch to influence legislation or
4-16 administrative action if the communication occurs on or after
4-17 September 1, 2001. A communication that occurs before September 1,
4-18 2001, is governed by the law as it existed immediately before the
4-19 effective date of this Act, and that law is continued in effect for
4-20 this purpose.