C.S.S.B. 532 78(R) BILL ANALYSIS C.S.S.B. 532 By: Williams Judicial Affairs Committee Report (Substituted) BACKGROUND AND PURPOSE Currently, there is no state law prohibiting a judge from accepting a gift or referral fee in exchange for referring any legal business to an attorney or law firm. In addition, there are no reporting requirements for a judge who accepts such compensation and no means to examine such transactions. As proposed, C.S.S.B. 532 makes it a Class B misdemeanor for a judge, after taking the oath of office, to accept a fee or gift in exchange for referring any legal business. This bill creates an exception for constitutional county court judges, justices of the peace, and municipal court judges. This bill requires an attorney or judge who has information concerning a violation to file a complaint with the State Commission on Judicial Conduct not later than the 30th day after the date the information is obtained. 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 SECTION 1. Amends Chapter 33, Government Code, by adding Subchapter C, as follows: SUBCHAPTER C. JUDICIAL CONDUCT Sec. 33.051. SOLICITATION OR ACCEPTANCE OF REFERRAL FEES OR GIFTS BY JUDGE; CRIMINAL PENALTY. (a) Provides that a judge commits an offense if the judge solicits or accepts a gift or referral fee in exchange for referring any kind of legal business to an attorney or law firm. Provides that this subsection does not prohibit a judge from soliciting funds for appropriate campaign or officeholder expenses as permitted by Canon 4D, Code of Judicial Conduct, and state law or accepting a gift in accordance with the provisions of Canon 4D, Code of Judicial Conduct. (b) Provides it is an affirmative defense to prosecution under Subsection (a) that: (1) the judge solicited the gift or referral fee before taking the oath of office but accepted the gift or fee after taking the oath of office; or (2) the judge solicited or accepted the gift or referral fee after taking the oath of office in exchange for referring to an attorney or law firm legal business that the judge was engaged in but was unable to complete before taking the oath of office. (c) Provides that an offense under this section is a Class B misdemeanor. (d) Authorizes the State Commission on Judicial Conduct (SCJC) if, after an investigation, SCJC determines that a judge engaged in conduct described by Subsection (a) to which Subsection (b) does not apply, to issue a sanction against the judge or institute formal proceedings, regardless of whether the judge is being prosecuted or has been convicted of an offense under this section. (e) Requires an attorney or judge who has information that a judge engaged in conduct described by Subsection (a) to which Subsection (b) does not apply to file a complaint with the SCJC not later than the 30th day after the date the attorney or judge obtained the information. Provides that a judge who fails to comply with this subsection is subject to sanctions by SCJC. Provides that an attorney who fails to comply with this subsection is subject to discipline by the Commission for Lawyer Discipline under Subchapter E, Chapter 81. (f) Defines "referral fee" and states that "judge" does not include a constitutional county court judge, a statutory county court judge who is authorized by law to engage in the private practice of law, a justice of the peace or a municipal court judge, if that judge or justice of the peace solicits or accepts a gift or referral fee in exchange for referring legal business that involves a matter over which that judge or justice of the peace will not preside in the court of that judge or justice of the peace. SECTION 2. Makes application of Subsections 33.051(d) and (e) prospective. SECTION 3. Effective date: September 1, 2003. EFFECTIVE DATE September 1, 2003. COMPARISON OF ORIGINAL TO SUBSTITUTE The original stated that "judge" does not include a constitutional county court judge, a justice of the peace, or a municipal court judge. The substitute states that "judge" does not include a constitutional county court judge, a statutory county court judge who is authorized by law to engage in the private practice of law, a justice of the peace or a municipal court judge, if that judge or justice of the peace solicits or accepts a gift or referral fee in exchange for referring legal business that involves a matter over which that judge or justice of the peace will not preside in the court of that judge or justice of the peace.