By:  Wilson (Senate Sponsor - Harris)                             H.B. No. 3149
	(In the Senate - Received from the House April 28, 2003; 
May 1, 2003, read first time and referred to Committee on 
Government Organization; May 2, 2003, rereferred to Committee on 
Administration; May 9, 2003, reported favorably, as amended, by 
the following vote:  Yeas 5, Nays 0; May 9, 2003, sent to printer.)


COMMITTEE AMENDMENT NO. 1                                                By:  Harris


Amend HB 3149 as follows:                                                   

	(1)  On page 1, line 25, insert "by a client" between "
employed" and "to".
	(2)  On page 1, line 56, insert "own interest" between "
concern's" and "or".
	(3)  On page 1, line 57, insert "business" between "own" and "
interests".

A BILL TO BE ENTITLED

AN ACT


relating to conflicts of interest involving lobbyists.                      
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Sections 305.028(a), (b), (c), and (f), 
Government Code, are amended to read as follows:
	(a)  In this section:                                                   
		(1)  "Client" means a person or entity for which the 
registrant is registered or is required to be registered.
		(2)  "Matter" means the subject matters for which a 
registrant has been reimbursed, retained, or employed to 
communicate directly with a member of the legislative or executive 
branch.
		(3)  "Person associated with the registrant" or "other 
associated person" 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)  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 
legislative subject matter [the same 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 [(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 [(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 [(a) or] (b), the registrant files with the 
commission a statement that:
			(A)  indicates [indicating] that there is a [an 
actual or potential] conflict;
			(B)  states [and] that the registrant has notified 
each affected [or potentially affected] client as required by 
Subdivision (2); and
			(C)  states the name and address of each affected 
client.           
	(f)  In each report filed with the commission, a registrant 
shall, under oath, affirm that the registrant has, to the best of 
the registrant's knowledge, complied with this section.
	SECTION 2.  Section 305.031(c), Government Code, is 
repealed.                
	SECTION 3.  Section 305.028, Government Code, as amended by 
this Act, applies only to a conflict of interest that arises on or 
after September 1, 2003.  A conflict of interest that arises before 
September 1, 2003, is covered by the law in effect when the conflict 
arose, and the former law is continued in effect for that purpose.
	SECTION 4.  This Act takes effect September 1, 2003.                           



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