C.S.H.B. 3149 78(R)    BILL ANALYSIS


C.S.H.B. 3149
By: Wilson
Elections
Committee Report (Substituted)

BACKGROUND AND PURPOSE 

As enacted by the Texas Legislature in 2001, certain provisions of the
Government Code that are intended to govern conflicts of interest for
registrants under the Lobby Act are patterned after the State Bar of Texas
Disciplinary Rule of Professional Conduct, which governs conflicts of
interest for attorneys.  These provisions, however, have not resulted in
clear guidance for lobbyists or for the Texas Ethics Commission, the state
agency charged with the Lobby Act's enforcement.  CSHB 3149 addresses the
ambiguity and vague nature of certain terms of the conflict of interest
provisions while preserving the intent and spirit of the law. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

CSHB 3149 amends the Government Code to provide a definition for "client,"
"matter," "person associated with the registrant," and "other associated
person." 

The bill prohibits a registrant from representing a client in
communicating to influence legislative subject matter or administrative
action if the representation of that client is in conflict with another
client of the registrant, an employer or concern employing the registrant,
or if the representation of the client reasonably appears to be adversely
limited by another client of a partner or other person associated with the
registrant. 

The bill prohibits a registrant from representing a client in
communicating to influence legislative subject matter or administrative
action if the representation of that client reasonably appears to be
adversely limited by the registrant's, employer's or concern's, or the
partner's or other associated person's responsibilities to another client
or the registrant's, employer's or concern's, or partner's or other
associated person's own interests. 

The bill authorizes a registrant to represent such clients in cases where
the registrant reasonably believes the representation of each client would
not be materially affected; the registrant notifies clients in writing
within two business days after the registrant becomes aware of a conflict;
and within 10 days, the registrant notifies the Texas Ethics Commission of
the name and address of each affected client that the registrant notified. 

The bill requires the registrant to affirm, under oath, that the
registrant has complied with the provisions of this section to the best of
the registrant's knowledge. 

The bill repeals the provision providing a criminal penalty for violations
of provisions related to conflicts of interest. 

EFFECTIVE DATE

September 1, 2003.

COMPARISON OF ORIGINAL TO SUBSTITUTE

CSHB 3149 modifies the original by adding definitions for "matter" and
"other associated person."