78R4398 ESH-D
By: Wolens H.B. No. 1606
A BILL TO BE ENTITLED
AN ACT
relating to ethics of public servants, including the functions and
duties of the Texas Ethics Commission; the regulation of political
contributions, political advertising, lobbying, and conduct of
public servants; and the reporting of political contributions and
personal financial information; providing civil and criminal
penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. FUNCTIONS AND DUTIES OF TEXAS ETHICS COMMISSION
SECTION 1.01. Section 254.0361, Election Code, is
transferred to Subchapter C, Chapter 571, Government Code, is
redesignated as Section 571.0671, Government Code, and is amended
to read as follows:
Sec. 571.0671 [254.0361]. REQUIREMENTS FOR ELECTRONIC
FILING SOFTWARE. (a) Computer software provided or approved by the
commission for use under Section 254.036(b), Election Code, or
Section 305.0064 must:
(1) use a standardized format for the entry of names,
addresses, and zip codes;
(2) provide for secure and encoded transmission of
data from the computer of a person filing a report to the computers
used by the commission; and
(3) [be capable of being used by a person with basic
computing skills who uses a computer that uses a Windows operating
system, Macintosh operating system, or another operating system
that the commission determines is as popular as those systems for
use with personal computers; and
[(4)] permit a person using a computer to prepare a
report or to retrieve information from a report to import
information to the report from a variety of computer software
applications that meet commission specifications for a standard
file format or export information from the report to a variety of
computer software applications that meet commission specifications
for a standard file format without the need to reenter information.
(b) Before determining the specifications for computer
software developed, purchased, or licensed for use under Section
254.036, Election Code, or Section 305.0064, the commission shall
conduct at least one public hearing to discuss the specifications.
For at least 10 days following the hearing, the commission shall
accept public comments concerning the software specifications.
(c) The commission may provide software for use under
Section 254.036(b), Election Code, or Section 305.0064 by making
the software available on the Internet. If the commission makes the
software available on the Internet, the commission is not required
to provide the software on computer diskettes, CD-ROMs, or other
storage media without charge to persons required to file reports
under that section, but may charge a reasonable fee for providing
the software on storage media.
SECTION 1.02. Section 571.125, Government Code, is amended
to read as follows:
Sec. 571.125. PRELIMINARY REVIEW HEARING: PROCEDURE. (a)
The commission shall conduct a preliminary review hearing if:
(1) following the preliminary review, the commission
and the respondent cannot agree to the disposition of the complaint
or motion; or
(2) the respondent in writing requests a hearing.
(b) The commission shall provide written notice to the
complainant, if any, and the respondent of the date, time, and place
the commission will conduct the preliminary review hearing.
(c) During a preliminary review hearing, the commission:
(1) may consider all submitted evidence related to the
complaint or to the subject matter of a motion under Section
571.124(b);
(2) may review any documents or material related to
the complaint or to the motion; [and]
(3) may submit written questions and require those
questions to be answered under oath; and
(4) shall determine whether there is credible evidence
that provides cause for the commission to conclude that a violation
within the jurisdiction of the commission has occurred.
(d) [(b)] During a preliminary review hearing, the
respondent may appear before the commission with the assistance of
counsel, if desired by the respondent, and present any relevant
evidence, including a written statement.
SECTION 1.03. The heading to Section 571.126, Government
Code, is amended to read as follows:
Sec. 571.126. PRELIMINARY REVIEW HEARING: RESOLUTION.
SECTION 1.04. Sections 571.126(a), (b), and (d), Government
Code, are amended to read as follows:
(a) As soon as practicable after the completion of a
preliminary review hearing, the commission by record vote shall
issue a decision stating:
(1) whether there is credible evidence for the
commission to determine that a violation within the jurisdiction of
the commission has occurred and whether the violation is technical
or de minimis; or
(2) that there is insufficient evidence for the
commission to determine whether a violation within the jurisdiction
of the commission has occurred.
(b) If the commission determines that there is credible
evidence for the commission to determine that a violation has
occurred, the commission shall resolve and settle the complaint or
motion to the extent possible. If the commission successfully
resolves and settles the complaint or motion, not later than the
fifth business day after the date of the final resolution of the
complaint or motion, the commission shall send to the complainant,
if any, and the respondent a copy of the decision stating the
commission's determination and written notice of the resolution and
the terms of the resolution. If the commission is unsuccessful in
resolving and settling the complaint or motion, the commission [in
its discretion] shall:
(1) order a formal [an informal] hearing to be held in
accordance with Sections 571.129 through 571.132 [Section
571.127]; and
(2) not later than the fifth business day after the
date of the decision, send to the complainant, if any, and the
respondent:
(A) a copy of the decision;
(B) [and] written notice of the date, time, and
place of the formal [informal] hearing;
(C) a statement of the nature of the alleged
violation;
(D) a description of the evidence of the alleged
violation;
(E) a copy of the complaint or motion;
(F) a copy of the commission's rules of
procedure; and
(G) a statement of the rights of the respondent.
(d) If the commission determines that there is insufficient
credible evidence for the commission to determine that a violation
within the jurisdiction of the commission has occurred, the
commission may dismiss the complaint or motion or promptly conduct
a formal [an informal] hearing under Sections 571.129 through
571.132 [Section 571.127]. Not later than the fifth business day
after the date of the commission's determination under this
subsection, the commission shall send to the complainant, if any,
and the respondent a copy of the decision stating the commission's
determination and written notice of the grounds for the
determination.
SECTION 1.05. Section 571.136, Government Code, is amended
to read as follows:
Sec. 571.136. EXTENSION OF DEADLINE. The commission may,
on its own motion or on the reasonable request of a respondent,
extend any deadline for action relating to a sworn complaint,
motion, preliminary review[, informal] hearing, or formal hearing.
SECTION 1.06. Section 571.137, Government Code, is amended
by amending Subsection (a) and adding Subsections (a-1) and (a-2)
to read as follows:
(a) In connection with [an informal or] a formal hearing,
the commission, as authorized by this chapter, may subpoena and
examine witnesses and documents that directly relate to a sworn
complaint.
(a-1) In connection with a preliminary review, the
commission, for good cause and as authorized by this chapter, may
subpoena documents that directly relate to a sworn complaint. The
commission shall adopt guidelines for the issuance of subpoenas
under this subsection.
(a-2) A copy of a subpoena issued under this section [of the
commission] must be delivered to the respondent.
SECTION 1.07. Section 571.138, Government Code, is amended
to read as follows:
Sec. 571.138. STATUS OF COMPLAINANT. The complainant is
not a party to a preliminary review[, informal] hearing[,] or
formal hearing under this subchapter.
SECTION 1.08. Sections 571.139(a) and (b), Government Code,
are amended to read as follows:
(a) Except as provided by Section 571.140(b), Chapter 552
does not apply to documents or any additional evidence relating to
the processing, preliminary review[, informal] hearing, or
resolution of a sworn complaint or motion.
(b) Chapter 551 does not apply to the processing,
preliminary review[, informal] hearing, or resolution of a sworn
complaint or motion, but does apply to a formal hearing held under
Sections 571.129 through 571.131.
SECTION 1.09. Sections 571.140(a) and (b), Government Code,
are amended to read as follows:
(a) Except as provided by Subsection (b), proceedings at a
preliminary review [or informal] hearing performed by the
commission, a sworn complaint, and documents and any additional
evidence relating to the processing, preliminary review[,
informal] hearing, or resolution of a sworn complaint or motion are
confidential and may not be disclosed unless entered into the
record of a formal hearing or a judicial proceeding, except that a
document or statement that was previously public information
remains public information.
(b) An order issued by the commission after the completion
of a preliminary review [or an informal] hearing determining that a
violation other than a technical or de minimis violation has
occurred is not confidential.
SECTION 1.10. Subchapter F, Chapter 571, Government Code,
is amended by adding Section 571.1731 to read as follows:
Sec. 571.1731. WAIVER OR REDUCTION OF LATE FILING PENALTY.
(a) A person may request the waiver or reduction of a civil penalty
under Section 305.033(b) or 572.033(b) of this code or Section
254.042(b), Election Code, by submitting an affidavit to the
executive director that states the filer's reasons for requesting a
waiver or reduction.
(b) The commission may waive or reduce a civil penalty if
the commission finds that a waiver or reduction is in the public
interest and in the interest of justice. The commission shall
consider the following before acting to waive or reduce a civil
penalty:
(1) the facts and circumstances supporting the
person's request for a waiver or reduction;
(2) the seriousness of the violation, including the
nature, circumstances, consequences, extent, and gravity of the
violation, and the amount of the penalty;
(3) any history of previous violations by the person;
(4) the demonstrated good faith of the person,
including actions taken to rectify the consequences of the
violation;
(5) the penalty necessary to deter future violations;
and
(6) any other matter that justice may require.
(c) After hearing the waiver request, the commission may
affirm, reduce, or waive the civil penalty.
SECTION 1.11. Sections 571.127 and 571.128, Government
Code, are repealed.
ARTICLE 2. CAMPAIGN FINANCE AND POLITICAL ADVERTISING
SECTION 2.01. Section 251.001(16), Election Code, is
amended to read as follows:
(16) "Political advertising" means a communication
supporting or opposing a candidate for nomination or election to a
public office or office of a political party, a political party, a
public officer, or a measure that:
(A) in return for consideration, is published in
a newspaper, magazine, or other periodical or is broadcast by radio
or television; or
(B) appears:
(i) in a pamphlet, circular, flier,
electronic mail, billboard or other sign, bumper sticker, or
similar form of written communication; or
(ii) on an Internet website.
SECTION 2.02. Section 251.003, Election Code, is amended to
read as follows:
Sec. 251.003. PROHIBITION OF DOCUMENT FILING FEE. Except
as provided by Section 254.002, a [A] charge may not be made for
filing a document required to be filed under this title.
SECTION 2.03. The heading to Section 253.034, Election
Code, is amended to read as follows:
Sec. 253.034. RESTRICTIONS ON CONTRIBUTIONS DURING AND
FOLLOWING REGULAR LEGISLATIVE SESSION.
SECTION 2.04. Section 253.034(a), Election Code, is amended
to read as follows:
(a) During the period beginning on the 30th day before the
date a regular legislative session convenes and continuing through
the 30th day after the date of final adjournment, a person may not
knowingly make a political contribution to:
(1) a statewide officeholder;
(2) a member of the legislature; or
(3) a specific-purpose committee for supporting,
opposing, or assisting a statewide officeholder or member of the
legislature.
SECTION 2.05. The heading to Section 253.0341, Election
Code, is amended to read as follows:
Sec. 253.0341. RESTRICTIONS ON CONTRIBUTIONS TO
LEGISLATIVE CAUCUSES DURING AND FOLLOWING REGULAR LEGISLATIVE
SESSION.
SECTION 2.06. Section 253.0341(a), Election Code, is
amended to read as follows:
(a) During the period beginning on the 30th day before the
date a regular legislative session convenes and continuing through
the 30th day after the date of final adjournment, a person not a
member of the caucus may not knowingly make a contribution to a
legislative caucus.
SECTION 2.07. The heading to Subchapter A, Chapter 254,
Election Code, is amended to read as follows:
SUBCHAPTER A. GENERAL PROVISIONS; RECORDKEEPING
SECTION 2.08. Subchapter A, Chapter 254, Election Code, is
amended by adding Section 254.002 to read as follows:
Sec. 254.002. ANNUAL FILING FEE. (a) As provided by this
section, each candidate, officeholder, political committee, former
candidate, or former officeholder who is required to file reports
under this chapter with the commission shall:
(1) pay to the commission an annual filing fee of $100;
or
(2) file with the commission an affidavit of inability
to pay the filing fee.
(b) Not later than January 15, a candidate, officeholder,
political committee, former candidate, or former officeholder who
is required to file a report under Section 254.063(c), 254.093(c),
254.123(c), 254.153(c), or 254.202 for the preceding calendar year
shall pay the filing fee or file the affidavit of inability to pay
the filing fee.
(c) If a candidate, officeholder, or political committee
becomes subject to the reporting requirements of this chapter after
January 1, the person shall pay the filing fee or file the affidavit
of inability to pay the filing fee.
(d) For purposes of Subsection (c), a report that is filed
by electronic transfer to the commission is considered to be
accompanied by the filing fee or affidavit of inability to pay the
filing fee if, not later than the applicable deadline for the
statement or report:
(1) the fee or affidavit is sent by first-class United
States mail or common or contract carrier;
(2) the envelope containing the fee or affidavit is
properly addressed with postage or handling charges prepaid; and
(3) the envelope bears a post office cancellation mark
or a receipt mark of a common or contract carrier indicating a time
before the deadline or the person required to file the statement or
report furnishes satisfactory proof that the envelope was deposited
in the mail or with a common or contract carrier before the
deadline.
(e) The use of funds derived from a political contribution
to pay a filing fee under this section is not a violation of Section
253.035.
SECTION 2.09. Section 254.036(g), Election Code, is amended
to read as follows:
(g) A person required to file a report with the commission
in connection with the office of [district judge,] district
attorney[, or judge of a multicounty statutory county court] may
file reports that comply with Subsection (a).
SECTION 2.10. Section 254.0401(a), Election Code, is
amended to read as follows:
(a) The [Except as provided by Subsection (b), the]
commission shall make each report filed with the commission under
Section 254.036(b) available to the public on the Internet not
later than the second business day after the date the report is
filed.
SECTION 2.11. Section 254.042(b), Election Code, is amended
to read as follows:
(b) If a report other than a report under Section
254.064(c), 254.124(c), or 254.154(c) is determined to be late,
the person required to file the report is [civilly] liable to the
state for a civil penalty of $500 [an amount determined by
commission rule, but not to exceed $100 for each day that the report
is late]. If a report under Section 254.064(c), 254.124(c), or
254.154(c) is determined to be late, the person required to file the
report is liable to the state for a civil penalty of $500 for the
first day the report is late and $100 for each day thereafter that
the report is late. If a report is more than 30 days late, the
commission shall issue a warning of liability by registered mail to
the person required to file the report. If the penalty is not paid
before the 10th day after the date on which the warning is received,
the person is liable for a civil penalty in an amount determined by
commission rule, but not to exceed $10,000.
SECTION 2.12. Section 254.151, Election Code, is amended
to read as follows:
Sec. 254.151. ADDITIONAL CONTENTS OF REPORTS. In addition
to the contents required by Section 254.031, each report by a
campaign treasurer of a general-purpose committee must include:
(1) the committee's full name and address;
(2) the full name, residence or business street
address, and telephone number of the committee's campaign
treasurer;
(3) the identity and date of the election for which the
report is filed, if applicable;
(4) the name of each identified candidate or measure
or classification by party of candidates supported or opposed by
the committee, indicating whether the committee supports or opposes
each listed candidate, measure, or classification by party of
candidates;
(5) the name of each identified officeholder or
classification by party of officeholders assisted by the committee;
(6) the principal occupation of each person from whom
political contributions that in the aggregate exceed $50 are
accepted during the reporting period;
(7) the amount of each political expenditure in the
form of a political contribution made to a candidate, officeholder,
or another political committee that is returned to the committee
during the reporting period, the name of the person to whom the
expenditure was originally made, and the date it is returned; [and]
(8) on a separate page or pages of the report, the
identification of any contribution from a corporation or labor
organization made and accepted under Subchapter D, Chapter 253; and
(9) on a separate page or pages of the report, the
identification of any political expenditure made by a corporation
or labor organization to:
(A) establish or administer the political
committee; or
(B) finance the solicitation of political
contributions to the committee under Section 253.100.
SECTION 2.13. The heading to Section 257.005, Election
Code, is amended to read as follows:
Sec. 257.005. CANDIDATE FOR STATE OR COUNTY CHAIR [STATE
CHAIRMAN] OF POLITICAL PARTY.
SECTION 2.14. Section 257.005(a), Election Code, is amended
to read as follows:
(a) A candidate for state or county chair of a political
party with a nominee on the ballot in the most recent gubernatorial
general election is subject to the requirements of this title that
apply to a candidate for public office, except as provided by this
section.
SECTION 2.15. Sections 253.100(d) and 254.0401(b) and (c),
Election Code, are repealed.
SECTION 2.16. (a) Section 254.002, Election Code, as added
by this Act, applies beginning January 1, 2004.
(b) Section 254.036(g), Election Code, as amended by this
Act, applies only to a report required to be filed under Chapter
254, Election Code, on or after September 1, 2003. A report
required to be filed under Chapter 254, Election Code, before
September 1, 2003, is governed by the law in effect on the date the
report was required to be filed, and the former law is continued in
effect for that purpose.
(c) Section 254.042(b), Election Code, as amended by this
Act, applies only to a civil penalty imposed for a late report under
Chapter 254, Election Code, that is required to be filed on or after
September 1, 2003. A civil penalty imposed for a late report under
Chapter 254, Election Code, that is required to be filed before
September 1, 2003, is governed by the law in effect on the date the
report was required to be filed, and the former law is continued in
effect for that purpose.
(d) Section 254.151, Election Code, as amended by this Act,
applies to the reporting of a political expenditure made on or after
September 1, 2003. The reporting of a political expenditure made
before September 1, 2003, is governed by the law in effect at the
time the expenditure was made.
(e) Section 257.005, Election Code, as amended by this Act,
applies only to the acceptance of a political contribution or
making of a political expenditure by a candidate for county chair of
a political party on or after September 1, 2003. The acceptance of
a political contribution or making of a political expenditure by a
candidate for county chair of a political party before September 1,
2003, is governed by the law in effect at the time the contribution
is accepted or the expenditure is made, and the former law is
continued in effect for that purpose.
ARTICLE 3. LOBBYING
SECTION 3.01. Sections 305.005(a) and (c), Government Code,
are amended to read as follows:
(a) Each person required to register under this chapter
shall file a written registration [form] with the commission [on a
form prescribed by the commission] and shall submit a registration
fee.
(c) The registration fee and registration renewal fee are:
(1) $100 for a registrant employed by an organization
exempt from federal income tax under Section 501(c)(3) or
501(c)(4), Internal Revenue Code of 1986, and its subsequent
amendments; or
(2) $600 [$300] for any other registrant.
SECTION 3.02. Section 305.006(a), Government Code, is
amended to read as follows:
(a) Each registrant shall file with the commission a
written, verified report [on a form prescribed by the commission]
concerning the activities described by this section.
SECTION 3.03. Subchapter A, Chapter 305, Government Code,
is amended by adding Section 305.0064 to read as follows:
Sec. 305.0064. ELECTRONIC FILING OF REGISTRATIONS AND
ACTIVITY REPORTS. (a) Except as provided by Subsection (b) or (c),
each registration filed under Section 305.005 and each report filed
under Section 305.006 must be filed by computer diskette, modem, or
other means of electronic transfer, using computer software
provided by the commission or computer software that meets
commission specifications for a standard file format.
(b) The commission shall adopt rules under which a
registrant may file paper registrations or reports on forms
prescribed by the commission. The rules must be designed to ensure
that:
(1) use of the electronic filing system under
Subsection (a) is maximized; and
(2) registrants may file paper registrations or
reports for good cause only.
(c) The commission shall implement an electronic filing
system under Subsection (a) not later than December 1, 2004. The
commission by rule shall identify the first reporting period under
Section 305.007 for which a report must be made as required by
Subsection (a). This subsection expires January 1, 2005.
(d) A registration fee under Section 305.005(c)(1) or (2)
for the calendar years 2004 and 2005 is increased by an amount
determined by the commission as sufficient to generate additional
revenue necessary to develop and implement an electronic filing
system under Subsection (a). The commission may impose a different
increase for each fee under Section 305.005(c). This subsection
expires January 1, 2006.
SECTION 3.04. Section 305.033(b), Government Code, is
amended to read as follows:
(b) If a registration or report is determined to be late,
the person responsible for the filing is liable to the state for
payment of a civil penalty of $500 [in an amount determined by
commission rule, but not to exceed $100 for each day that the
registration or report is late].
SECTION 3.05. Section 305.033(b), Government Code, as
amended by this Act, applies only to a civil penalty imposed for a
late registration or report under Chapter 305, Government Code,
that is required to be filed on or after September 1, 2003. A civil
penalty imposed for a late registration or report under Chapter
305, Government Code, that is required to be filed before September
1, 2003, is governed by the law in effect on the date the report was
required to be filed, and the former law is continued in effect for
that purpose.
ARTICLE 4. PERSONAL FINANCIAL DISCLOSURE BY AND STANDARDS OF
CONDUCT FOR STATE OFFICERS AND EMPLOYEES
SECTION 4.01. Section 572.021, Government Code, is amended
to read as follows:
Sec. 572.021. FINANCIAL STATEMENT REQUIRED. A state
officer, a partisan or independent candidate for an office as an
elected officer, and a party chairman shall file with the
commission a verified financial statement complying with Sections
572.022 through 572.024 [572.025].
SECTION 4.02. Section 572.023(b), Government Code, is
amended to read as follows:
(b) The account of financial activity consists of:
(1) a list of all sources of occupational income,
identified by employer, or if self-employed, by the nature of the
occupation, including identification of a person or other
organization from which the individual or a business in which the
individual has a substantial interest received a fee as a retainer
for a claim on future services in case of need, as distinguished
from a fee for services on a matter specified at the time of
contracting for or receiving the fee, if professional or
occupational services are not actually performed during the
reporting period equal to or in excess of the amount of the
retainer, and the category of the amount of the fee;
(2) identification by name and the category of the
number of shares of stock of any business entity held or acquired,
and if sold, the category of the amount of net gain or loss realized
from the sale;
(3) a list of all bonds, notes, and other commercial
paper held or acquired, and if sold, the category of the amount of
net gain or loss realized from the sale;
(4) identification of each source and the category of
the amount of income in excess of $500 derived from each source from
interest, dividends, royalties, and rents;
(5) identification of each guarantor of a loan and
identification of each person or financial institution to whom a
personal note or notes or lease agreement for a total financial
liability in excess of $1,000 existed at any time during the year
and the category of the amount of the liability;
(6) identification by description of all beneficial
interests in real property and business entities held or acquired,
and if sold, the category of the amount of the net gain or loss
realized from the sale;
(7) identification of a person or other organization
from which the individual or the individual's spouse or dependent
children received a gift of anything of value in excess of $250 and
a description of each gift, except:
(A) a gift received from an individual related to
the individual at any time within the second degree by
consanguinity or affinity, as determined under Subchapter B [A],
Chapter 573;
(B) a political contribution that was reported as
required by Chapter 254, Election Code [law]; and
(C) an expenditure required to be reported by a
person required to be registered under Chapter 305;
(8) identification of the source and the category of
the amount of all income received as beneficiary of a trust and
identification of each asset, if known to the beneficiary, from
which income was received by the beneficiary in excess of $500;
(9) identification by description and the category of
the amount of all assets and liabilities of a corporation or
partnership in which 50 percent or more of the outstanding
ownership was held, acquired, or sold;
(10) a list of all boards of directors of which the
individual is a member and executive positions that the individual
holds in corporations, firms, partnerships, or proprietorships,
stating the name of each corporation, firm, partnership, or
proprietorship and the position held;
(11) identification of any person providing
transportation, meals, or lodging expenses permitted under Section
36.07(b), Penal Code, and the amount of those expenses, other than
expenditures required to be reported under Chapter 305; [and]
(12) any partnership, joint venture, or other business
association, excluding a publicly held corporation, in which both
the state officer and a person registered under Chapter 305 have an
interest; and
(13) identification by name and the category of the
number of shares of any mutual fund held or acquired, and if sold,
the category of the amount of net gain or loss realized from the
sale.
SECTION 4.03. Section 572.033(b), Government Code, is
amended to read as follows:
(b) If a statement is determined to be late, the individual
responsible for filing the statement is [civilly] liable to the
state for a civil penalty of $500 [an amount determined by
commission rule, but not to exceed $100 for each day that the
statement is late]. If a statement is more than 30 days late, the
commission shall issue a warning of liability by registered mail to
the individual responsible for the filing. If the penalty is not
paid before the 10th day after the date on which the warning is
received, the individual is liable for a civil penalty in an amount
determined by commission rule, but not to exceed $10,000.
SECTION 4.04. The heading to Section 572.052, Government
Code, is amended to read as follows:
Sec. 572.052. REPRESENTATION BY LEGISLATORS BEFORE STATE
AGENCIES OR POLITICAL SUBDIVISIONS; CRIMINAL OFFENSE.
SECTION 4.05. Section 572.052(a), Government Code, is
amended to read as follows:
(a) A member of the legislature may not, for compensation,
represent another person before:
(1) a state agency in the executive branch of state
government; or
(2) a political subdivision [unless:
[(1) the representation:
[(A) is made in a proceeding that is adversary in
nature or in another public hearing that is a matter of record; or
[(B) involves the filing of documents, contacts
with the agency, or other relations, that involve only ministerial
acts on the part of the commission, agency, board, department, or
officer; and
[(2) the member discloses to the agency that the
member is being compensated for the representation].
SECTION 4.06. Subchapter C, Chapter 572, Government Code,
is amended by adding Section 572.0531 to read as follows:
Sec. 572.0531. RECUSAL BY LEGISLATORS ON MATTERS ON WHICH
IMMEDIATE FAMILY MEMBERS LOBBY; CRIMINAL OFFENSE. (a) A member of
the legislature may not introduce or vote on a measure or bill with
respect to which the member's spouse, parent, or child is required
to register as a lobbyist under Chapter 305.
(b) A member of the house of representatives to whom
Subsection (a) applies shall file a written notice of that fact with
the chief clerk of the house of representatives. A senator to whom
Subsection (a) applies shall file a written notice of that fact with
the secretary of the senate. A notice filed under this section
must:
(1) identify:
(A) the member;
(B) the member's relative who is required to
register as a lobbyist; and
(C) the measure or bill with respect to which the
notice is required under this section; and
(2) be included in the journal of the house of
representatives or senate, as appropriate.
(c) A member of the legislature who violates this section is
subject to punishment or expulsion as provided by Section 11,
Article III, Texas Constitution.
SECTION 4.07. The heading to Section 572.056, Government
Code, is amended to read as follows:
Sec. 572.056. COMPENSATION OF [CONTRACTS BY] STATE OFFICERS
FOR SOLICITATION OF CONTRACT WITH GOVERNMENTAL ENTITY [ENTITIES];
CRIMINAL OFFENSE.
SECTION 4.08. Subchapter C, Chapter 572, Government Code,
is amended by adding Sections 572.0561 and 572.059 to read as
follows:
Sec. 572.0561. CONTRACT WITH GOVERNMENTAL ENTITY OR
GOVERNMENT CONTRACTOR; CRIMINAL OFFENSE. (a) A state officer may
not solicit or accept a commission, fee, bonus, retainer, or rebate
that is compensation for the officer's provision of services,
including consulting services, or sale of goods to:
(1) a governmental entity that receives state funds;
or
(2) a governmental entity that imposes a tax that is
collected and distributed to the entity by the comptroller.
(b) A state officer may not be employed by a business entity
that receives a commission, fee, bonus, retainer, or rebate that is
compensation for the business entity's provision of services,
including consulting services, or sale of goods to:
(1) a governmental entity that receives state funds;
or
(2) a governmental entity that imposes a tax that is
collected and distributed to the entity by the comptroller.
(c) A state officer may not be employed by a business entity
that receives a commission, fee, bonus, retainer, or rebate from
another business entity that is compensation for the provision of
services, including consulting services, or sale of goods to the
other business entity for provision or sale to:
(1) a governmental entity that receives state funds;
or
(2) a governmental entity that imposes a tax that is
collected and distributed to the entity by the comptroller.
(d) For purposes of this section, a state officer is
employed by a business entity if the state officer:
(1) has a substantial interest in the business entity;
(2) is an independent contractor of the business
entity;
(3) serves as a consultant to the business entity; or
(4) is designated as "of counsel" or "of the firm" by
the business entity, if the business entity is a partnership,
limited liability partnership, or professional corporation
organized for the practice of law.
(e) A state officer who knowingly violates this section
commits an offense. An offense under this section is a Class A
misdemeanor.
Sec. 572.059. EMPLOYMENT OF STATE OFFICER BY LOBBYIST;
CRIMINAL OFFENSE. (a) A state officer may not be employed by a
business entity that is engaged in the representation of clients
for the purpose of influencing legislative or administrative
action.
(b) For purposes of this section, a state officer is
employed by a business entity if the state officer:
(1) has a substantial interest in the business entity;
(2) is an independent contractor of the business
entity;
(3) serves as a consultant to the business entity; or
(4) is designated as "of counsel" or "of the firm" by
the business entity, if the business entity is a partnership,
limited liability partnership, or professional corporation
organized for the practice of law.
(c) A state officer who knowingly violates this section
commits an offense. An offense under this section is a Class A
misdemeanor.
SECTION 4.09. Article 26.06, Code of Criminal Procedure, is
amended to read as follows:
Art. 26.06. ELECTED OFFICIALS NOT TO BE APPOINTED. No court
may appoint an elected county, district or state official to
represent a person accused of crime, unless the official has
notified the court of his availability for appointment. If an
official has notified the court of his availability and is
appointed as counsel, he may decline the appointment if he
determines that it is in the best interest of his office to do so.
[Nothing in this Code shall modify any statutory provision for
legislative continuance.]
SECTION 4.10. The following are repealed:
(1) Section 30.003, Civil Practice and Remedies Code;
(2) Section 231.003, Election Code;
(3) Section 84.005, Family Code; and
(4) Sections 572.025 and 1205.069, Government Code.
SECTION 4.11. (a) Notwithstanding Section 22.004,
Government Code, the supreme court may not amend or adopt a rule
requiring a court to grant a continuance because an attorney in a
civil action is a member of the legislature and shall, not later
than September 15, 2003, repeal any such existing rule.
(b) The changes made by this Act by the amendment of
Sections 572.021 and 572.052, Government Code, and the repeal of
Section 572.025, Government Code, apply only to representation
before an executive state agency or political subdivision for which
a member of the legislature is hired on or after September 1, 2003.
Representation for which a member of the legislature was hired
before September 1, 2003, and the reporting of that representation
are governed by the law in effect at the time the member was hired,
and that law is continued in effect for that purpose.
(c) Section 572.023, Government Code, as amended by this
Act, applies only to a financial statement required to be filed
under Subchapter B, Chapter 572, Government Code, on or after
January 1, 2004. A financial statement required to be filed under
Subchapter B, Chapter 572, Government Code, before January 1, 2004,
is governed by the law in effect at the time the financial statement
was required to be filed, and the former law is continued in effect
for that purpose.
(d) Section 572.033(b), Government Code, as amended by this
Act, applies only to a civil penalty imposed for a late report under
Subchapter B, Chapter 572, Government Code, that is required to be
filed on or after September 1, 2003. A civil penalty imposed for a
late report under Subchapter B, Chapter 572, Government Code, that
is required to be filed before September 1, 2003, is governed by the
law in effect on the date the report was required to be filed, and
the former law is continued in effect for that purpose.
ARTICLE 5. PERSONAL FINANCIAL DISCLOSURE BY
COUNTY AND MUNICIPAL OFFICERS
SECTION 5.01. Subtitle A, Title 5, Local Government Code,
is amended by adding Chapter 145 to read as follows:
CHAPTER 145. FINANCIAL DISCLOSURE BY
MUNICIPAL OFFICERS
Sec. 145.001. DEFINITION. In this chapter, "municipal
officer" means the mayor, a member of the governing body, the
municipal attorney, or the city manager of a municipality.
Sec. 145.002. FINANCIAL STATEMENT REQUIRED. (a) A
municipal officer or a candidate for a municipal office filled by
election shall file a financial statement as required by this
chapter.
(b) The statement must:
(1) be filed with the clerk or secretary of the
municipality in which the officer or candidate resides; and
(2) comply with Sections 572.022 and 572.023,
Government Code.
Sec. 145.003. FILING DATES; TIMELINESS OF FILING. (a) A
municipal officer shall file the financial statement required by
this chapter within the time prescribed by Section 572.026(a),
Government Code.
(b) A person who is appointed to a municipal office shall
file the financial statement required by this chapter within the
time prescribed by Section 572.026(c), Government Code.
(c) A candidate for a municipal office filled by election
shall file the financial statement required by this chapter not
later than the earlier of:
(1) the 20th day after the deadline for filing an
application for a place on the ballot in the election; or
(2) the fifth day before the date of the election.
(d) The timeliness of the filing is governed by Section
572.029, Government Code.
(e) A municipal officer or a person who is appointed to a
municipal office may request the clerk or secretary of the
municipality to grant an extension of not more than 60 days for
filing the statement. The clerk or secretary shall grant the
request if it is received before the filing deadline or if the
officer's physical or mental incapacity prevents the officer from
filing the statement or requesting an extension before the filing
deadline. The clerk or secretary may not grant more than one
extension to a person in one year except for good cause shown.
(f) The clerk or secretary may not grant an extension to a
candidate for a municipal office filled by election.
Sec. 145.004. FORM OF STATEMENT. (a) The clerk or
secretary of the municipality shall require that the form designed
by the Texas Ethics Commission under Chapter 572, Government Code,
be used for filing the financial statement.
(b) The clerk or secretary shall mail two copies of the form
to each municipal officer or person who is appointed to a municipal
office who is required to file under this chapter within the time
prescribed by Section 572.030(c)(1), Government Code. The clerk or
secretary shall mail a copy of the form to each candidate for a
municipal office filled by election who is required to file under
this chapter not later than the 10th day before the deadline for
filing the statement under Section 145.003(c).
Sec. 145.005. DUPLICATE OR SUPPLEMENTAL STATEMENTS. If a
person has filed a financial statement under one provision of this
chapter covering the preceding calendar year, the person is not
required to file a financial statement required under another
provision of this chapter covering that same year if, before the
deadline for filing the statement under the other provision, the
person notifies the clerk or secretary of the municipality in
writing that the person has already filed a financial statement
under this chapter covering that year.
Sec. 145.006. PUBLIC ACCESS TO STATEMENTS. (a) Financial
statements filed under this chapter are public records. The clerk
or secretary of the municipality shall maintain the statements in
separate alphabetical files and in a manner that is accessible to
the public during regular office hours.
(b) Until the first anniversary of the date a financial
statement is filed, each time a person, other than the clerk or
secretary of the municipality or an employee of the clerk or
secretary who is acting on official business, requests to see the
financial statement, the clerk or secretary shall place in the file
a statement of the person's name and address, whom the person
represents, and the date of the request. The clerk or secretary
shall retain that statement in the file until the first anniversary
of the date the requested financial statement is filed.
(c) The clerk or secretary of the municipality may, and on
notification from a former officer or candidate shall, destroy any
financial statements filed by the officer or candidate after the
second anniversary of the date the person ceases to be an officer or
candidate, as applicable.
Sec. 145.007. CRIMINAL PENALTY. (a) A municipal officer or
a candidate for a municipal office filled by election commits an
offense if the officer or candidate knowingly fails to file a
financial statement as required by this chapter.
(b) An offense under this section is a Class B misdemeanor.
(c) It is a defense to prosecution under this section that
the officer or candidate did not receive copies of the financial
statement form required to be mailed to the officer or candidate by
this chapter.
Sec. 145.008. CIVIL PENALTY. (a) A person who determines
that a person required to file a financial statement under this
chapter has failed to do so may notify in writing the municipal
attorney of the municipality.
(b) On receipt of a written notice under Subsection (a), the
municipal attorney shall determine from any available evidence
whether the person to whom the notice relates has failed to file a
statement. On making that determination, the municipal attorney
shall immediately mail by certified mail a notice of the
determination to the person responsible for filing the statement.
(c) If the person responsible for filing the statement fails
to file the statement before the 30th day after the date the person
receives the notice under Subsection (b), the person is civilly
liable to the municipality for an amount not to exceed $1,000.
(d) A penalty paid under this section shall be deposited to
the credit of the general fund of the municipality.
SECTION 5.02. Section 159.001, Local Government Code, is
repealed.
SECTION 5.03. Chapter 145, Local Government Code, as added
by this Act, applies beginning January 1, 2004. A municipal officer
or candidate for municipal office is not required to include
financial activity occurring before January 1, 2004, in a financial
disclosure statement under Chapter 145, Local Government Code, as
added by this Act.
SECTION 5.04. Subchapter A, Chapter 159, Local Government
Code, as amended by this Act, applies beginning January 1, 2004. A
county officer or candidate for county office in a county with a
population of less than 100,000 is not required to include
financial activity occurring before January 1, 2004, in a financial
disclosure statement under Subchapter A, Chapter 159, Local
Government Code, as amended by this Act.
ARTICLE 6. EFFECTIVE DATE
SECTION 6.01. This Act takes effect September 1, 2003.