78R1328 KEG-D


By:  Chisum                                                       H.B. No. 289



A BILL TO BE ENTITLED

AN ACT

relating to a disclosure of a financial interest by a committee 
member or the executive director of the Office of Rural Community 
Affairs.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter C, Chapter 487, Government Code, is 
amended by adding Section 487.059 to read as follows:
	Sec. 487.059.  DISCLOSURE OF FINANCIAL INTEREST.  (a) In this 
section:
		(1)  "Financial interest in an entity" includes holding 
an ownership interest in the entity or being employed by the entity.
		(2)  "Monetary award" means any money, fund, stipend, 
grant, scholarship, loan, or loan guarantee awarded under this 
chapter.
	(b)  If a member of the executive committee or another 
committee established under this chapter, including an advisory 
committee, has a financial interest in an entity that applies for a 
monetary award, the committee member shall, before a vote on the 
monetary award, disclose the fact of the member's financial 
interest.  The committee shall enter the disclosure into the 
minutes of the meeting at which a vote on the monetary award is 
taken.  The committee member may not vote on or otherwise 
participate in a discussion or any other activity that relates to 
awarding the monetary award.  If the committee member does not 
comply with this section, the entity is not eligible for the 
monetary award.
	(c)  If the executive director has a financial interest in an 
entity that applies for a monetary award, the executive director:
		(1)  shall, as soon as possible, disclose to the 
executive committee the fact of the director's financial interest;
		(2)  may not participate in staff evaluations regarding 
the monetary award; and
		(3)  if the executive director under office procedures 
has a vote on a matter that involves the monetary award:
			(A)  shall disclose the fact of the director's 
financial interest before a vote on the monetary award, which the 
committee shall enter into the minutes of the meeting at which a 
vote on the monetary award is taken; and
			(B)  may not vote on or otherwise participate in a 
discussion or any other activity that relates to awarding the 
monetary award.
	(d)  If the executive director does not comply with 
Subsection (c), the entity in which the executive director has a 
financial interest is not eligible for the monetary award.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution. If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.