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.