2003S0634-1 03/13/03


By:  Harris                                                       S.B. No. 1449


A BILL TO BE ENTITLED

AN ACT

relating to conflicts of interest involving lobbyists; providing a 
criminal penalty.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 305.028, Government Code, is amended by 
adding a new Subsection (a), redesignating existing Subsection (a) 
as Subsection (b), and amending the redesignated subsection and 
Subsections (c) and (f) 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 matters for which the 
registrant has been engaged to communicate with a member of the 
legislative or executive branch by a client.
		(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 indicating:
			(A)  that there is a [an actual or potential] 
conflict; [and]
			(B)  that the registrant has notified each 
affected [or potentially affected] client as required by 
Subdivision (2); and
			(C)  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 complied with 
this section to the best of the registrant's knowledge.
	SECTION 2.  Subsections (a), (c), (d), and (e), Section 
305.031, Government Code, are 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 305.0011or[,] 305.022[, or 305.028].  An offense under 
this subsection is a Class A misdemeanor.
	(c)  [A person commits an offense if the person knowingly 
violates Section 305.028.  An offense under this subsection is a 
Class B misdemeanor.
	[(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.                           
	SECTION 4.  The change in law made by this Act to Section 
305.028, Government Code, applies to a conflict of interest that 
arises on or after the effective date of this Act.  A conflict of 
interest that arises before the effective date of this Act is 
covered by the law in effect when the conflict arose, and the former 
law is continued in effect for that purpose.