S.B. No. 755




AN ACT

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

                                                                              




______________________________    ______________________________
President of the Senate             Speaker of the House
	I hereby certify that S.B. No. 755 passed the Senate on 
April 10, 2003, by the following vote:  Yeas 31, Nays 0; 
May 31, 2003, Senate refused to concur in House amendments and 
requested appointment of Conference Committee; May 31, 2003, House 
granted request of the Senate; June 1, 2003, Senate adopted 
Conference Committee Report by the following vote:  Yeas 31, 
Nays 0.




______________________________ 
   Secretary of the Senate             
	I hereby certify that S.B. No. 755 passed the House, with 
amendments, on May 28, 2003, by the following vote:  Yeas 138, 
Nays 0, two present not voting; May 31, 2003, House granted request 
of the Senate for appointment of Conference Committee; 
June 1, 2003, House adopted Conference Committee Report by the 
following vote:  Yeas 144, Nays 0, two present not voting.




______________________________ 
   Chief Clerk of the House            



Approved:


______________________________ 
           Date



______________________________ 
          Governor