By Wentworth                                           S.B. No. 339
         77R740 ESH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to financial disclosure by certain municipal officers;
 1-3     providing penalties.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Subtitle A, Title 5, Local Government Code, is
 1-6     amended by adding Chapter 145 to read as follows:
 1-7                    CHAPTER 145.  FINANCIAL DISCLOSURE BY
 1-8                             MUNICIPAL OFFICERS
 1-9           Sec. 145.001.  DEFINITION. In this chapter, "municipal
1-10     officer" means the mayor, a member of the governing body, the
1-11     municipal attorney, or the city manager of a municipality.
1-12           Sec. 145.002.  FINANCIAL STATEMENT REQUIRED. (a)  A municipal
1-13     officer or a candidate for a municipal office filled by election
1-14     shall file a financial statement as required by this chapter.
1-15           (b)  The statement must:
1-16                 (1)  be filed with the clerk or secretary of the
1-17     municipality in which the officer or candidate resides; and
1-18                 (2)  except as provided by Section 145.003, comply with
1-19     Sections 572.022 and 572.023, Government Code.
1-20           Sec. 145.003.  STATEMENT PERIOD FOR CERTAIN CANDIDATES. A
1-21     financial statement filed by a person who is a candidate for a
1-22     municipal office filled by election to be held on the third
1-23     Saturday in January must include an account of the person's
1-24     financial activity and the financial activity of the person's
 2-1     spouse and dependent children as required by Section 572.023(a),
 2-2     Government Code, for:
 2-3                 (1)  the current calendar year, if the filing deadline
 2-4     for the statement is on or before December 31; or
 2-5                 (2)  the preceding calendar year, if the filing
 2-6     deadline for the statement is after December 31.
 2-7           Sec. 145.004.  FILING DATES;  TIMELINESS OF FILING. (a)  A
 2-8     municipal officer shall file the financial statement required by
 2-9     this chapter within the time prescribed by Section 572.026(a),
2-10     Government Code.
2-11           (b)  A person who is appointed to a municipal office shall
2-12     file the financial statement required by this chapter within the
2-13     time prescribed by Section 572.026(c), Government Code.
2-14           (c)  A candidate for a municipal office filled by election
2-15     shall file the financial statement required by this chapter not
2-16     later than the earlier of:
2-17                 (1)  the 20th day after the deadline for filing an
2-18     application for a place on the ballot in the election; or
2-19                 (2)  the fifth day before the date of the election.
2-20           (d)  The timeliness of the filing is governed by Section
2-21     572.029, Government Code.
2-22           (e)  A municipal officer or a person who is appointed to a
2-23     municipal office may request the clerk or secretary of the
2-24     municipality to grant an extension of not more than 60 days for
2-25     filing the statement.  The clerk or secretary shall grant the
2-26     request if it is received before the filing deadline or if the
2-27     officer's physical or mental incapacity prevents the officer from
 3-1     filing the statement or requesting an extension before the filing
 3-2     deadline.  The clerk or secretary may not grant more than one
 3-3     extension to a person in one year except for good cause shown.
 3-4           (f)  The clerk or secretary may not grant an extension to a
 3-5     candidate for a municipal office filled by election.
 3-6           Sec. 145.005.  PREPARATION OF FORMS. (a)  The clerk or
 3-7     secretary of the municipality may:
 3-8                 (1)  design a form to be used for filing the financial
 3-9     statement required by this chapter; or
3-10                 (2)  require that a form designed by the Texas Ethics
3-11     Commission under Chapter 572, Government Code, be used for filing
3-12     the financial statement.
3-13           (b)  The clerk or secretary shall mail two copies of the form
3-14     to each person required to file under this chapter within the time
3-15     prescribed by Section 572.030(c), Government Code.
3-16           Sec. 145.006.  DUPLICATE  OR SUPPLEMENTAL STATEMENTS. (a)
3-17     Except as provided by Subsection (b), if a person has filed a
3-18     financial statement under one provision of this chapter covering
3-19     the preceding calendar year, the person is not required to file a
3-20     financial statement required under another provision of this
3-21     chapter covering that same year if, before the deadline for filing
3-22     the statement under the other provision, the person notifies the
3-23     clerk or secretary of the municipality in writing that the person
3-24     has already filed a financial statement under this chapter covering
3-25     that year.
3-26           (b)  If a person has filed a financial statement under
3-27     Section 145.003(1) and is elected to municipal office at the
 4-1     election as to which the statement was filed, the person shall file
 4-2     a supplemental statement within the time prescribed by Section
 4-3     572.026(a), Government Code.  A supplemental statement is not
 4-4     required to include any financial activity included in the
 4-5     statement filed under Section 145.003(1).
 4-6           Sec. 145.007.  PUBLIC ACCESS TO STATEMENTS. (a)  Financial
 4-7     statements filed under this chapter are public records.  The clerk
 4-8     or secretary of the municipality shall maintain the statements in
 4-9     separate alphabetical files and in a manner that is accessible to
4-10     the public during regular office hours.
4-11           (b)  Until the first anniversary of the date a financial
4-12     statement is filed, each time a person, other than the clerk or
4-13     secretary of the municipality or an employee of the clerk or
4-14     secretary who is acting on official business, requests to see the
4-15     financial statement, the clerk or secretary shall place in the file
4-16     a statement of the person's name and address, whom the person
4-17     represents, and the date of the request.  The clerk or secretary
4-18     shall retain that statement in the file until the first anniversary
4-19     of the date the requested financial statement is filed.
4-20           (c)  The clerk or secretary of the municipality may, and on
4-21     notification from a former officer or candidate shall, destroy any
4-22     financial statements filed by the officer or candidate after the
4-23     second anniversary of the date the person ceases to be an officer
4-24     or candidate, as applicable.
4-25           Sec. 145.008.  CRIMINAL PENALTY. (a)  A municipal officer or
4-26     a candidate for a municipal office filled by election commits an
4-27     offense if the officer or candidate knowingly fails to file a
 5-1     financial statement as required by this chapter.
 5-2           (b)  An offense under this section is a Class B misdemeanor. 
 5-3           (c)  It is a defense to prosecution under this section that
 5-4     the officer or candidate did not receive copies of the financial
 5-5     statement form required to be mailed to the officer or candidate by
 5-6     this chapter.
 5-7           Sec. 145.009.  CIVIL PENALTY. (a)  A person who determines
 5-8     that a person required to file a financial statement under this
 5-9     chapter has failed to do so may notify in writing the municipal
5-10     attorney of the municipality.
5-11           (b)  On receipt of a written notice under Subsection (a), the
5-12     municipal attorney shall determine from any available evidence
5-13     whether the person to whom the notice relates has failed to file a
5-14     statement.  On making that determination, the municipal attorney
5-15     shall immediately mail by certified mail a notice of the
5-16     determination to the person responsible for filing the statement.
5-17           (c)  If the person responsible for filing the statement fails
5-18     to file the statement before the 30th day after the date the person
5-19     receives the notice under Subsection (b), the person is civilly
5-20     liable to the municipality for an amount not to exceed $1,000.
5-21           (d)  A penalty paid under this section shall be deposited to
5-22     the credit of the general fund of the municipality.
5-23           SECTION 2. Chapter 145, Local Government Code, as added by
5-24     this Act, applies beginning December 1, 2002.  A municipal officer
5-25     or candidate for municipal office is not required to include
5-26     financial activity occurring before January 1, 2002, in a financial
5-27     disclosure statement under Chapter 145, Local Government Code, as
 6-1     added by this Act.
 6-2           SECTION 3. This Act takes effect September 1, 2001.