1-1 By: Wilson (Senate Sponsor - Harris) H.B. No. 1168
1-2 (In the Senate - Received from the House April 19, 2001;
1-3 April 20, 2001, read first time and referred to Committee on State
1-4 Affairs; May 11, 2001, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 8, Nays 0; May 11, 2001,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 1168 By: Harris
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to certain conduct in lobbying; providing a penalty.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Section 305.002(9), Government Code, is amended
1-13 to read as follows:
1-14 (9) "Registrant" means a person required to register
1-15 under Section 305.003 or 305.030.
1-16 SECTION 2. Subchapter B, Chapter 305, Government Code, is
1-17 amended by adding Sections 305.028 and 305.029 to read as follows:
1-18 Sec. 305.028. PROHIBITED CONFLICTS OF INTEREST. (a) Except
1-19 as permitted by Subsection (c), a registrant may not represent
1-20 opposing parties in communicating directly with a member of the
1-21 legislative or executive branch to influence the same legislation
1-22 or administrative action and may not provide political services, as
1-23 defined by Section 305.030, to opposing parties.
1-24 (b) Except as permitted by Subsection (c), a registrant may
1-25 not represent a person in communicating directly with a member of
1-26 the legislative or executive branch to influence legislation or
1-27 administrative action and may not provide political services, as
1-28 defined by Section 305.030, to a person if the representation of
1-29 that person or provision of political services to that person:
1-30 (1) involves a substantially related matter in which
1-31 that person's interests are materially and directly adverse to the
1-32 interests of:
1-33 (A) another client of the registrant;
1-34 (B) an employer or concern employing the
1-35 registrant; or
1-36 (C) another client of a partner or other person
1-37 associated with the registrant; or
1-38 (2) reasonably appears to be or potentially be
1-39 adversely limited by:
1-40 (A) the registrant's, the employer's or
1-41 concern's, or the partner's or other associated person's
1-42 responsibilities to another client or to a third person; or
1-43 (B) the registrant's, employer's or concern's,
1-44 or partner's or other associated person's own interests.
1-45 (c) A registrant may represent a client in the circumstances
1-46 described in Subsection (a) or (b) if:
1-47 (1) the registrant reasonably believes the
1-48 representation of each client will not be materially affected;
1-49 (2) not later than the second business day after the
1-50 date the registrant becomes aware of an actual or potential
1-51 conflict described by Subsection (a) or (b), the registrant
1-52 provides written notice, in the manner required by the commission,
1-53 to each affected or potentially affected client; and
1-54 (3) not later than the 10th day after the date the
1-55 registrant becomes aware of an actual or potential conflict
1-56 described by Subsection (a) or (b), the registrant files with the
1-57 commission a statement indicating that there is an actual or
1-58 potential conflict and that the registrant has notified each
1-59 affected or potentially affected client as required by Subdivision
1-60 (2).
1-61 (d) If a registrant has accepted representation in conflict
1-62 with the restrictions of this section, or if multiple
1-63 representation properly accepted becomes improper under this
1-64 section, the registrant shall promptly withdraw from one or more
2-1 representations to the extent necessary for any remaining
2-2 representation not to be in conflict with this section.
2-3 (e) If a registrant would be prohibited by this section from
2-4 engaging in particular conduct, an employer or concern employing
2-5 the registrant or a partner or other person associated with the
2-6 registrant may not engage in that conduct.
2-7 (f) In each report filed with the commission, a registrant
2-8 shall, under oath, affirm that the registrant has complied with
2-9 this section.
2-10 (g) The commission may receive complaints regarding a
2-11 violation of this section. If the commission determines a
2-12 violation of this section has occurred, the commission, after
2-13 notice and hearing:
2-14 (1) may impose any penalty that the commission may
2-15 impose under another state law; and
2-16 (2) may rescind the person's registration and may
2-17 prohibit the person from registering with the commission for a
2-18 period not to exceed two years from the date of the rescission of
2-19 the person's registration.
2-20 (h) A penalty under this section is in addition to any other
2-21 enforcement action that the commission or another person may take
2-22 under this chapter.
2-23 (i) A restriction on a registrant under this section is in
2-24 addition to any restrictions on the registrant's conduct under
2-25 Section 305.0011.
2-26 SECTION 3. Subchapter B, Chapter 305, Government Code, is
2-27 amended by adding Section 305.030 to read as follows:
2-28 Sec. 305.030. CONFLICTS OF INTEREST OF POLITICAL
2-29 CONSULTANTS; REGISTRATION REQUIRED. (a) In this section:
2-30 (1) "Candidate," "measure," "political advertising," and
2-31 "political committee" have the meanings assigned by Section
2-32 251.001, Election Code.
2-33 (2) "Officeholder" means a person described by Section
2-34 251.002, Election Code.
2-35 (3) "Political services" means the following services
2-36 provided in connection with an actual or potential election
2-37 campaign of a candidate or officeholder or in connection with a
2-38 measure:
2-39 (A) consulting in relation to political
2-40 strategy;
2-41 (B) voter demographics and polling;
2-42 (C) speech writing;
2-43 (D) services related to political advertising;
2-44 and
2-45 (E) planning and scheduling of public
2-46 appearances.
2-47 (b) A person is subject to Section 305.028 and shall
2-48 register with the commission in the manner provided under Section
2-49 305.005, if the person receives compensation of more than an amount
2-50 determined by commission rule but not less than $2,000 in a
2-51 calendar quarter from a candidate, officeholder, or political
2-52 committee to provide political services.
2-53 (c) The commission shall adopt rules as necessary to adapt
2-54 the requirements of Section 305.005 to a person required to
2-55 register under this section. The commission by rule shall require
2-56 a person required to register under this section to file reports
2-57 analogous to the reports required by Section 305.006. The
2-58 commission by rule shall specify the contents of the reports.
2-59 (d) Sections 305.004, 305.0051, 305.006, 305.0061, 305.0062,
2-60 305.0063, 305.021-305.027, and 305.029 do not apply to a person
2-61 required to register solely under this section.
2-62 SECTION 4. Section 305.031, Government Code, is amended to
2-63 read as follows:
2-64 Sec. 305.031. CRIMINAL PENALTIES. (a) A person commits an
2-65 offense if the person intentionally or knowingly violates a
2-66 provision of this chapter other than Section 305.0011, [or]
2-67 305.022, or 305.028. An offense under this subsection is a Class A
2-68 misdemeanor.
2-69 (b) A person commits an offense if the person intentionally
3-1 or knowingly violates Section 305.022. An offense under this
3-2 subsection is a felony of the third degree.
3-3 (c) A person commits an offense if the person knowingly
3-4 violates Section 305.028. An offense under this subsection is a
3-5 Class B misdemeanor.
3-6 (d) This chapter does not affect the criminal responsibility
3-7 of a person under the state laws relating to perjury.
3-8 (e) [(d)] This section does not prohibit the commission from
3-9 imposing a civil penalty for a violation.
3-10 SECTION 5. (a) This Act takes effect September 1, 2001.
3-11 (b) The change in law made by this Act applies only to a
3-12 registrant's communication directly with a member of the
3-13 legislative or executive branch to influence legislation or
3-14 administrative action if the communication occurs on or after
3-15 September 1, 2001. A communication that occurs before September 1,
3-16 2001, is governed by the law as it existed immediately before the
3-17 effective date of this Act, and that law is continued in effect for
3-18 that purpose.
3-19 * * * * *