By: Wilson H.B. No. 3149
A BILL TO BE ENTITLED
AN ACT
relating to conflicts of interests of registrants.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 305.028, Government Code, is amended to
read as follows:
(a) In this subchapter:
(1) "Client" means a person or entity for which the
registrant is registered or is required to be registered.
(2) "Person associated with the registrant" means a
partner or other person professionally associated with the
registrant through a common business entity, other than a client,
that reimburses, retains or employs the registrant.
(b) [(a)] Except as permitted by Subsection (c), a
registrant may not represent a client [opposing parties] in
communicating directly with a member of the legislative or
executive branch to influence the same legislative subject matter
[legislation] or administrative action: [.
[(b) Except as permitted by Subsection (c), a registrant may
not represent a person in communicating directly with a member of
the legislative or executive branch to influence legislation or
administrative action] if the representation of that client:
[person:]
(1) involves a substantially related matter in which
that client's [person's] interests are materially and directly
adverse to the interests of:
(A) another client of the registrant;
(B) an employer or concern employing the
registrant; or
(C) another client of a partner or other person
associated with the registrant; or
(2) reasonably appears to be [or potentially be]
adversely limited by:
(A) the registrant's, the employer's or
concern's, or the partner's or other associated person's
responsibilities to another client [or to a third person]; or
(B) the registrant's, employer's or concern's, or
partner's or other associated person's own interests.
(c) A registrant may represent a client in the circumstances
described in Subsection (b) [(a) or (b)] if:
(1) the registrant reasonably believes the
representation of each client will not be materially affected;
(2) not later than the second business day after the
date the registrant becomes aware of a [an actual or potential]
conflict described by Subsection (b) [(a) or (b)], the registrant
provides written notice, in the manner required by the commission,
to each affected [or potentially affected] client; and
(3) not later than the 10th day after the date the
registrant becomes aware of a [an actual or potential] conflict
described by Subsection (b) [(a) or (b)], the registrant files with
the commission a statement indicating that (A) there is a [an actual
or potential] conflict, (B) [and] that the registrant has notified
each affected [or potentially affected] client as required by
Subdivision (2), and (C) the name and address of the affected
client(s) in the statement.
(d) If a registrant has accepted representation in conflict
with the restrictions of this section, or if multiple
representation properly accepted becomes improper under this
section, the registrant shall promptly withdraw from one or more
representations to the extent necessary for any remaining
representation not to be in conflict with this section.
(e) If a registrant would be prohibited by this section from
engaging in particular conduct, an employer or concern employing
the registrant or a partner or other person associated with the
registrant may not engage in that conduct.
(f) In each report filed with the commission, a registrant
shall, under oath, affirm that the registrant has complied with
this section to the best of his her knowledge.
(g) The commission may receive complaints regarding a
violation of this section. If the commission determines a
violation of this section has occurred, the commission, after
notice and hearing:
(1) may impose any penalty that the commission may
impose under another state law; and
(2) may rescind the person's registration and may
prohibit the person from registering with the commission for a
period not to exceed two years from the date of the rescission of
the person's registration.
(h) A penalty under this section is in addition to any other
enforcement action that the commission or another person may take
under this chapter.
(i) A restriction on a registrant under this section is in
addition to any restrictions on the registrant's conduct under
Section 305.0011.
(j) A statement filed under Subsection (c) is not public
information.
SECTION 2. Section 305.031, Government Code, is amended to
read as follows:
(a) A person commits an offense if the person intentionally
or knowingly violates a provision of this chapter other than
Section 305.0011, 305.022, or 305.028. An offense under this
subsection is a Class A misdemeanor.
(b) A person commits an offense if the person intentionally
or knowingly violates Section 305.022. An offense under this
subsection is a felony of the third degree.
[(c) A person commits an offense if the person knowingly
violates Section 305.028. An offense under this subsection is a
Class B misdemeanor.]
(c) [(d)] This chapter does not affect the criminal
responsibility of a person under the state laws relating to
perjury.
(d) [(e)] This section does not prohibit the commission
from imposing a civil penalty for a violation.
SECTION 3. This Act takes effect September 1, 2003.