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.