79R256 ESH-D
By: Wong H.B. No. 113
A BILL TO BE ENTITLED
AN ACT
relating to reporting of personal financial information by officers
of certain school districts, junior college districts, and certain
municipal retirement systems and reporting of expenditures to
influence administrative action by certain school districts,
junior college districts, and certain municipal retirement
systems; providing civil and criminal penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.064, Education Code, as added by
Chapter 249, Acts of the 78th Legislature, Regular Session, 2003,
is redesignated as Subchapter C-1, Chapter 11, Education Code, and
amended to read as follows:
SUBCHAPTER C-1. FILING OF FINANCIAL STATEMENT BY TRUSTEES
Sec. 11.101. [11.064. FILING OF] FINANCIAL STATEMENT
REQUIRED IN DISTRICTS WITH ENROLLMENT OF AT LEAST 50,000 STUDENTS.
A trustee of an independent school district with an enrollment of at
least 50,000 students shall [BY TRUSTEE. (a) The board of
trustees of an independent school district by resolution adopted by
majority vote may require each member of the board to] file the
financial statement required of state officers under Subchapter B,
Chapter 572, Government Code, with:
(1) the board of trustees of the district; and
(2) the Texas Ethics Commission.
Sec. 11.102. FINANCIAL STATEMENT REQUIRED ON ORDER OF
COMMISSIONER. (a) [(a-1) Not later than the 15th day after the
date a board of trustees adopts a resolution under Subsection (a),
the board shall deliver a certified copy of the resolution to the
Texas Ethics Commission.
[(a-2) A resolution adopted under Subsection (a) applies
beginning on January 1 of the second year following the year in
which the resolution is adopted. A member of a board of trustees
that has adopted a resolution under Subsection (a) is not required
to include, in a financial disclosure statement under this section,
financial activity occurring before January 1 of the year following
the year in which the resolution is adopted.
[(a-3)] The commissioner by order shall require the members
of the board of trustees of an independent school district, other
than a district to which Section 11.101 applies, to file the
financial statement required of state officers under Subchapter B,
Chapter 572, Government Code, [in the same manner as the members of
a board of trustees that have adopted a resolution under Subsection
(a)] if the commissioner determines that:
(1) a board member has failed to comply with filing and
recusal requirements applicable to the member under Chapter 171,
Local Government Code;
(2) the district financial accounting practices are
not adequate to safeguard state and district funds; or
(3) the district has not met a standard set by the
commissioner in the financial accountability rating system under
Subchapter I, Chapter 39.
(b) [(a-4)] The commissioner may require filing financial
statements under Subsection (a) [(a-3)] covering not more than
three fiscal years and beginning on January 1 of the second year
following the date of the commissioner's order. A member of a board
of trustees subject to an order issued under Subsection (a) [(a-3)]
is not required to include, in a financial disclosure statement
subject to this section, financial activity occurring before
January 1 of the year following the year in which the order is
issued.
(c) The commissioner may renew the requirement to file a
financial statement if the commissioner determines that a condition
described by Subsection (a) [(c)] continues to exist.
Sec. 11.103. APPLICABILITY OF GOVERNMENT CODE.
[(b)] Subchapter B, Chapter 572, Government Code:
(1) applies to a trustee subject to this subchapter
[section] as if the trustee were a state officer; and
(2) governs the contents, timeliness of filing, and
public inspection of a statement filed under this subchapter
[section].
Sec. 11.104. OFFENSE. (a) [(c)] A trustee serving in a
school district to which Section 11.101 applies [that has adopted a
resolution under Subsection (a)] or that is subject to an order
issued under Section 11.102 [Subsection (a-3)] commits an offense
if the trustee fails to file the statement required by Section
11.101 or 11.102, as applicable [the resolution or order].
(b) An offense under this section is a Class B misdemeanor.
SECTION 2. Subchapter E, Chapter 11, Education Code, is
amended by adding Section 11.2011 to read as follows:
Sec. 11.2011. FILING OF FINANCIAL STATEMENT BY
SUPERINTENDENT. (a) The superintendent of an independent school
district with an enrollment of at least 50,000 students shall file
the financial statement required of state officers under Subchapter
B, Chapter 572, Government Code, with:
(1) the board of trustees of the district; and
(2) the Texas Ethics Commission.
(b) Subchapter B, Chapter 572, Government Code:
(1) applies to a superintendent subject to this
section as if the superintendent were a state officer; and
(2) governs the contents, timeliness of filing, and
public inspection of a statement filed under this section.
(c) A superintendent subject to this section commits an
offense if the superintendent fails to file the statement required
by this section. An offense under this section is a Class B
misdemeanor.
SECTION 3. Chapter 11, Education Code, is amended by adding
Subchapter I to read as follows:
SUBCHAPTER I. REPORTING BY PERSONS SEEKING
TO INFLUENCE SCHOOL DISTRICT ADMINISTRATIVE ACTION
Sec. 11.401. DEFINITIONS. In this subchapter:
(1) "Administrative action" means any matter that may
be the subject of action by the board of trustees or an officer or
employee of a school district.
(2) "Commission" means the Texas Ethics Commission.
(3) "Communicates directly with" or any variation of
the phrase means contact in person or by telephone, telegraph,
letter, facsimile, electronic mail, or other electronic means of
communication.
(4) "Compensation" means money, service, facility, or
other thing of value or financial benefit that is received or is to
be received in return for or in connection with services rendered or
to be rendered.
(5) "Expenditure" means a payment, distribution,
loan, advance, reimbursement, deposit, or gift of money or any
thing of value and includes a contract, promise, or agreement,
whether or not legally enforceable, to make an expenditure.
(6) "Immediate family" means a spouse or dependent
child.
(7) "Large school district" means a school district
with an enrollment of at least 50,000 students.
(8) "Registrant" means a person required to register
under Section 11.402.
Sec. 11.402. PERSONS REQUIRED TO REGISTER. (a) A person
must register with the commission if the person:
(1) makes a total expenditure of an amount determined
by commission rule but not less than $200 in a calendar quarter, not
including the person's own travel, food, or lodging expenses or the
person's own membership dues, on activities described in Section
11.405(b) to communicate directly with one or more officers or
employees of one or more large school districts to influence
administrative action; or
(2) receives compensation or reimbursement, not
including reimbursement for the person's own travel, food, or
lodging expenses or the person's own membership dues, of more than
an amount determined by commission rule but not less than $200 in a
calendar quarter from another person to communicate directly with
an officer or employee of a large school district to influence
administrative action.
(b) Subsection (a)(2) requires a person to register if the
person, as part of the person's regular employment, has
communicated directly with a school district officer or employee to
influence administrative action on behalf of another person by whom
the person is compensated or reimbursed, whether or not the person
receives any compensation for the communication in addition to the
salary for that regular employment.
(c) Subsection (a)(2) does not require a member of the
judicial, legislative, or executive branch of state government or
an officer or employee of a political subdivision of the state to
register.
(d) A person who communicates directly with an officer or
employee of a school district is not required to register under
Subsection (a)(2) if the person is an attorney of record or pro se,
the person enters the person's appearance in a public record
through pleadings or other written documents in an adversarial
proceeding pending before the board of trustees of the school
district, and that communication is the only activity that would
otherwise require the person to register. In this subsection,
"adversarial proceeding" includes:
(1) a proceeding related to the discharge, suspension,
or nonrenewal of the contract of a teacher under Chapter 21; and
(2) a student disciplinary matter under Subchapter A,
Chapter 37.
Sec. 11.403. EXCEPTIONS. The following persons are not
required to register under this subchapter:
(1) a person who owns, publishes, or is employed by a
newspaper, any other regularly published periodical, a radio
station, a television station, a wire service, or any other bona
fide news medium that in the ordinary course of business
disseminates news, letters to the editors, editorial or other
comment, or paid advertisements that directly or indirectly oppose
or promote administrative action, if the person does not engage in
further or other activities that require registration under this
subchapter and does not represent another person in connection with
influencing administrative action;
(2) a person whose only direct communication with a
school district officer or employee to influence administrative
action is an appearance before or testimony to one or more school
district officers or employees in a hearing conducted by or on
behalf of a school district and who does not receive special or
extra compensation for the appearance other than actual expenses
incurred in attending the hearing;
(3) a person whose only activity is to encourage or
solicit members, employees, or stockholders of an entity by whom
the person is reimbursed, employed, or retained to communicate
directly with school district officers or employees to influence
administrative action; and
(4) a person whose only activity to influence
administrative action is to compensate or reimburse an individual
registrant to act in the person's behalf to communicate directly
with a school district officer or employee to influence
administrative action.
Sec. 11.404. REGISTRATION. (a) Each person required to
register under this subchapter shall file a written registration
with the commission and shall submit a registration fee.
(b) A registration filed under this subchapter expires
December 31 of each year unless the registrant submits a
registration renewal form to the commission on a form prescribed by
the commission and submits the registration renewal fee. The
registrant may file the registration renewal form and the fee
anytime in December of the year in which the registration expires.
(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; or
(2) $300 for any other registrant.
(d) A person required to register under this subchapter who
has not registered or whose registration has expired shall file the
registration form and submit the registration fee not later than
the fifth day after the date on which the person or the person's
employee makes the first direct communication with a school
district officer or employee that requires the person's
registration.
(e) The registration must be verified and must contain:
(1) the registrant's full name and address;
(2) the registrant's normal business name, business
phone number, and business address;
(3) the full name and address of each person:
(A) who reimburses, retains, or employs the
registrant to communicate directly with an officer or employee of a
large school district to influence administrative action; and
(B) on whose behalf the registrant has
communicated directly with an officer or employee of a large school
district to influence administrative action;
(4) a general description of the administrative action
that is the subject of the registrant's direct communication with
an officer or employee of a large school district;
(5) for each person employed or retained by the
registrant for the purpose of assisting in direct communication
with an officer or employee of a large school district to influence
administrative action:
(A) the full name, business address, and
occupation of the person; and
(B) a general description of the administrative
action to which the person's activities reportable under this
subchapter are related; and
(6) the amount of compensation or reimbursement paid
by each person who reimburses, retains, or employs the registrant
for the purpose of communicating directly with an officer or
employee of a large school district or on whose behalf the
registrant communicates directly with an officer or employee of a
large school district.
(f) Compensation or reimbursement required to be reported
under Subsection (e)(6) shall be reported in the following
categories unless reported as an exact amount:
(1) $0 if no compensation or reimbursement is
received;
(2) less than $10,000;
(3) at least $10,000 but less than $25,000;
(4) at least $25,000 but less than $50,000;
(5) at least $50,000 but less than $100,000;
(6) at least $100,000 but less than $150,000;
(7) at least $150,000 but less than $200,000; and
(8) $200,000 or more.
(g) If a registrant's activities are done on behalf of the
members of a group or organization, including a business, trade, or
consumer interest association but excluding a corporation, the
registration form must include:
(1) a statement of the number of members in the group
or organization;
(2) the name of each person in the group or
organization who determines the policy of the group or organization
relating to influencing administrative action;
(3) a full description of the methods by which the
registrant develops and makes decisions about positions on policy;
and
(4) a list of those persons making a grant or
contribution, in addition to or instead of dues or fees, that
exceeds $250 per year.
(h) If a registrant's activities are done on behalf of a
corporation the shares of which are not publicly traded, the
registration form must include:
(1) the number of shareholders in the corporation;
(2) the name and address of each officer or member of
the board of directors; and
(3) the name of each person owning 10 percent or more
shares of the corporation.
(i) If there is a change in the information required to be
reported by a registrant under this section, other than Subsection
(g) or (h), and that changed information is not timely reported on a
report due under Section 11.409, the registrant shall file an
amended statement reflecting the change with the commission not
later than the date on which the next report is due under Section
11.409.
Sec. 11.405. ACTIVITIES REPORT. (a) Each registrant
shall file with the commission a written, verified report
concerning the activities described by this section.
(b) The report must contain the total expenditures under a
category listed in this subsection that the registrant made to
communicate directly with an officer or employee of a large school
district to influence administrative action and that are directly
attributable to an officer or employee of a large school district or
the immediate family of an officer or employee of a large school
district. The report must also include expenditures for the direct
communications under a category listed in this subsection that
other people made on the registrant's behalf if the expenditures
were made with the registrant's consent or were ratified by the
registrant. The expenditures must be reported in the following
categories:
(1) transportation and lodging;
(2) food and beverages;
(3) entertainment;
(4) gifts, other than awards and mementos;
(5) awards and mementos; and
(6) expenditures made for the attendance of officers
or employees of large school districts at political fund-raisers or
charity events.
(c) The report must also list the total expenditures made by
the registrant or by others on the registrant's behalf and with the
registrant's consent or ratification for broadcast or print
advertisements, direct mailings, and other mass media
communications if:
(1) the communications are made to a person other than
a member, employee, or stockholder of an entity that reimburses,
retains, or employs the registrant; and
(2) the communications support or oppose or encourage
another to support or oppose pending administrative action.
(d) The report must also contain a list of the specific
categories of administrative actions about which the registrant,
any person the registrant retains or employs to appear on the
registrant's behalf, or any other person appearing on the
registrant's behalf communicated directly with an officer or
employee of a large school district and that has not been reported
under Section 11.404(e)(5).
(e) A registrant who reports an expenditure under one
category provided by Subsection (b) may not report the same
expenditure under another category of Subsection (b).
(f) For purposes of Subsection (b), an expenditure is
directly attributable to the person who consumed the food or
beverage, to the person for whom admission, transportation, or
lodging expenses were paid, or to the person to whom the gift,
award, or memento was given.
Sec. 11.406. DETAILED REPORTS. (a) If a registrant or a
person on the registrant's behalf and with the registrant's consent
or ratification makes expenditures that exceed 60 percent of the
amount of the legislative per diem in a day for transportation or
lodging for an officer or employee of a large school district, the
registrant shall also state the following on the report filed under
Section 11.405:
(1) the name of the officer or employee on whose behalf
the expenditure is made;
(2) the place and date of the transportation or
lodging; and
(3) the purpose of the transportation or lodging.
(b) If a registrant or a person on the registrant's behalf
and with the registrant's consent or ratification makes
expenditures that exceed 60 percent of the amount of the
legislative per diem in a day for food and beverages for an officer
or employee of a large school district or makes expenditures that
exceed 60 percent of the amount of the legislative per diem in a day
for entertainment for an officer or employee of a large school
district or for the immediate family of an officer or employee of a
large school district, the registrant shall also state the
following on the report filed under Section 11.405:
(1) the name of the officer or employee on whose behalf
the expenditure is made;
(2) the place and date of the expenditure; and
(3) the amount of the expenditure by the appropriate
category of the amount, as determined by the commission.
(c) If a registrant or a person on the registrant's behalf
and with the registrant's consent or ratification gives to an
officer or employee of a large school district a gift or an award or
memento, the value of which exceeds $50 per gift, award, or memento,
the registrant shall also state the following on the report filed
under Section 11.405:
(1) the name of the officer or employee on whose behalf
the expenditure is made;
(2) a general description of the gift, award, or
memento; and
(3) the amount of the expenditure by the appropriate
category of the amount, as determined by the commission.
(d) If a registrant or a person on the registrant's behalf
and with the registrant's consent or ratification makes
expenditures for the attendance of an officer or employee of a large
school district at a political fund-raiser or charity event, the
registrant shall also state the following on the report filed under
Section 11.405:
(1) the name of the officer or employee on whose behalf
the expenditure is made;
(2) the name of the charity or the name of the
candidate or officeholder for whom the political fund-raiser was
held, as applicable; and
(3) the date of the fund-raiser or event.
(e) If a registrant or a person on the registrant's behalf
and with the registrant's consent or ratification makes an
expenditure for a gift, award, or memento for an officer or employee
of a large school district in conjunction with an expenditure for
the attendance of that person at a political fund-raiser or charity
event, the registrant shall report the expenditure for the gift,
award, or memento under Subsection (c), if required, and not under
Subsection (d).
(f) If a registrant or a person on the registrant's behalf
and with the registrant's consent or ratification makes an
expenditure described by Section 11.405(b)(1), (2), or (3) to
communicate directly with more than one officer or employee of a
large school district to influence administrative action and if the
registrant cannot reasonably determine the amount that is directly
attributable to an officer or employee, the registrant shall
apportion the expenditure made by that registrant according to the
number of persons in attendance. The registrant shall report as
required by Subsection (a), (b), or (c) if the expenditure for each
person exceeds the amount provided under Subsection (a), (b), or
(c).
(g) In this section, "legislative per diem" means the per
diem set by the commission for members of the legislature as
provided by Section 24(a), Article III, Texas Constitution.
Sec. 11.407. MODIFIED REPORTING. (a) A person required
to register under this subchapter may, when filing the registration
form or registration renewal form, elect to file an activities
report under this section instead of Section 11.405 if the person
does not intend to make expenditures reportable under Section
11.405(b) of more than $1,000 during a calendar year, not including
the person's own travel, food, or lodging expenses or the person's
own membership dues.
(b) To be entitled to file reports under this section, the
registrant must file with the registration form or registration
renewal form a written declaration of intent not to exceed $1,000 in
expenditures during each calendar year in which that registration
or registration renewal is effective.
(c) A registrant filing under this section shall annually
file the report required by Section 11.405. The report must be filed
not later than January 10 and must cover the activities occurring
during the previous calendar year.
(d) A registrant who exceeds $1,000 in expenditures shall
file monthly reports as required by Section 11.409. The first
report filed after exceeding $1,000 covers the period beginning
January 1 through the date on which the next reporting period ends.
Sec. 11.408. ELECTRONIC FILING OF REGISTRATIONS AND
ACTIVITY REPORTS. (a) Except as provided by Subsection (b), each
registration filed under Section 11.404 and each report filed under
Section 11.405 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) A registration fee under Section 11.404(c)(1) or (2) for
the calendar years 2006 and 2007 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). Additional revenue generated by a fee
increase under this subsection may be used only to develop and
implement the electronic filing system under Subsection (a). The
commission may impose a different increase for each fee under
Section 11.404(c). This subsection expires January 1, 2008.
Sec. 11.409. REPORT FILING DATES. (a) Each registrant
must file a report required by Section 11.405 between the 1st and
10th day of each month. The report must cover the activities
occurring during the preceding month.
(b) A person who made expenditures on the registrant's
behalf that are required to be reported under Section 11.405 or a
person who has other information that is required to be reported by
the registrant under this subchapter shall provide a full, verified
account of the expenditures to the registrant not later than the
seventh day before the date on which the registrant's report is due.
Sec. 11.410. TERMINATION NOTICE. (a) A person who ceases
to engage in activities requiring registration under this
subchapter shall file a written, verified statement with the
commission acknowledging the termination of activities. The notice
is effective immediately.
(b) A person who files a notice of termination under this
section must file the reports required by Section 11.405 for any
reporting period during which the person was registered.
Sec. 11.411. MAINTENANCE OF REPORTS. (a) All reports
filed under this subchapter are public records and shall be made
available for public inspection during regular business hours.
(b) The commission shall:
(1) maintain registrations and reports in a separate,
alphabetical file;
(2) remove registrations and reports from the files
after five years from the date of filing; and
(3) maintain a deputy available to receive
registrations and reports and make the registrations and reports
available to the public for inspection.
(c) The commission shall retain a report filed under this
subchapter for at least four years after the date the report is
filed.
(d) A registrant shall keep any records necessary to the
reports required under this subchapter for at least four years
after the date the report is filed.
Sec. 11.412. TIMELINESS OF FILING REGISTRATIONS AND
REPORTS. A registration or report filed by first-class United
States mail or by common or contract carrier is timely if:
(1) it is properly addressed with postage or handling
charges prepaid; and
(2) it bears a post office cancellation mark or a
receipt mark from a common or contract carrier indicating a time
within the applicable filing period or before the applicable filing
deadline or if the person required to file furnishes satisfactory
proof that it was deposited in the mail or with a common or contract
carrier within that period or before that deadline.
Sec. 11.413. CRIMINAL PENALTY FOR FAILURE TO REGISTER OR
REPORT. (a) A person who is required to register under Section
11.404 commits an offense if the person knowingly fails to register
as required by that section.
(b) A person who is required by this subchapter to file a
report commits an offense if the person:
(1) knowingly fails to file the report on time; or
(2) knowingly fails to include in the report
information that is required to be included under this subchapter.
(c) An offense under this section is a Class A misdemeanor.
Sec. 11.414. CIVIL PENALTY FOR FAILURE TO REGISTER OR
REPORT. In addition to the criminal penalties prescribed by
Section 11.413, a person who receives compensation or reimbursement
or makes an expenditure for engaging in direct communication to
influence administrative action and who fails to file a
registration form or activities report required to be filed under
this subchapter shall pay a civil penalty in an amount determined by
commission rule, but not to exceed an amount equal to three times
the compensation, reimbursement, or expenditure.
Sec. 11.415. CIVIL PENALTY FOR LATE FILING. (a) The
commission shall determine from any available evidence whether a
registration or report required to be filed with the commission
under this subchapter is late. A registration filed without the fee
required by Section 11.404 is considered to be late. On making a
determination that a required registration or report is late, the
commission shall immediately mail a notice of the determination to
the person responsible for the filing and to the appropriate
attorney for the state.
(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.
(c) If a registration or report is more than 30 days late,
the commission shall issue a warning of liability by registered
mail to the person responsible for the filing. 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 penalty in an amount determined
by commission rule, but not to exceed $10,000.
(d) This section is in addition to any other available
sanctions for late filings of registrations or reports.
Sec. 11.416. FALSE COMMUNICATIONS. (a) A person, for the
purpose of influencing administrative action, may not:
(1) knowingly make a false statement or
misrepresentation of the facts to an officer or employee of a large
school district; or
(2) cause a copy of a document the person knows to
contain a false statement to be received by an officer or employee
of a large school district without notifying the officer or
employee in writing of the truth.
(b) A person who violates this section commits an offense.
An offense under this section is a Class A misdemeanor.
Sec. 11.417. RESTRICTIONS ON EXPENDITURES. (a) Except as
provided by Section 11.418, a person registered under Section
11.404 or a person on the registrant's behalf and with the
registrant's consent or ratification may not offer, confer, or
agree to confer to an officer or employee of a large school
district:
(1) a loan, including the guarantee or endorsement of
a loan;
(2) a gift of cash or a negotiable instrument as
described by Section 3.104, Business & Commerce Code;
(3) an expenditure for transportation and lodging;
(4) an expenditure or series of expenditures for
entertainment that in the aggregate exceed $500 in a calendar year;
(5) an expenditure or series of expenditures for gifts
that in the aggregate exceed $500 in a calendar year;
(6) an expenditure for an award or memento that
exceeds $500; or
(7) an expenditure described by Section 11.405(b)(1),
(2), (3), or (6) unless the registrant is present at the event.
(b) Except as provided by Section 11.418, an officer or
employee of a large school district may not solicit, accept, or
agree to accept an item listed in Subsection (a) from a person
registered under Section 11.404 or from a person on the
registrant's behalf and with the registrant's consent or
ratification.
(c) A person who violates this section commits an offense.
An offense under this section is a Class A misdemeanor.
Sec. 11.418. EXCEPTIONS. Section 11.417 does not
prohibit:
(1) a loan in the due course of business from a
corporation or other business entity that is legally engaged in the
business of lending money and that has conducted that business
continuously for more than one year before the loan is made;
(2) a loan or guarantee of a loan or a gift made or
given by a person related within the second degree by affinity or
consanguinity as determined under Subchapter B, Chapter 573,
Government Code, to the officer or employee of a large school
district;
(3) necessary expenditures for transportation and
lodging when the purpose of the travel is to explore matters
directly related to the duties of an officer or employee of a large
school district, such as fact-finding trips, but not including
attendance at merely ceremonial events or pleasure trips;
(4) necessary expenditures for transportation and
lodging provided in connection with a conference, seminar,
educational program, or similar event in which the officer or
employee renders services, such as addressing an audience or
engaging in a seminar, to the extent that those services are more
than merely perfunctory;
(5) an incidental expenditure for transportation as
determined by commission rule; or
(6) a political contribution as defined by Section
251.001, Election Code.
Sec. 11.419. ENFORCEMENT. (a) The commission, the
attorney general, or any county or district attorney may enforce
this subchapter.
(b) On the application of any citizen of this state, a
district court in Travis County may issue an injunction to enforce
this subchapter.
(c) A person may file with the appropriate prosecuting
attorney or with the commission a written, sworn statement alleging
a violation of this subchapter.
Sec. 11.420. VENUE. An offense under this subchapter,
including perjury, may be prosecuted in Travis County or in any
other county in which it may be prosecuted under the Code of
Criminal Procedure.
SECTION 4. Subchapter E, Chapter 130, Education Code, is
amended by adding Section 130.0831 to read as follows:
Sec. 130.0831. FILING OF FINANCIAL STATEMENT BY TRUSTEE.
(a) A member of the board of trustees of a junior college district
shall file the financial statement required of state officers under
Subchapter B, Chapter 572, Government Code, with:
(1) the board of trustees of the junior college
district; and
(2) the Texas Ethics Commission.
(b) Subchapter B, Chapter 572, Government Code:
(1) applies to a trustee of a junior college district
as if the trustee were a state officer; and
(2) governs the contents, timeliness of filing, and
public inspection of a statement filed under this section.
(c) A trustee subject to this section commits an offense if
the trustee fails to file the statement required by this section. An
offense under this section is a Class B misdemeanor.
SECTION 5. Chapter 130, Education Code, is amended by
adding Subchapter K to read as follows:
SUBCHAPTER K. REPORTING BY PERSONS SEEKING TO INFLUENCE
JUNIOR COLLEGE DISTRICT ADMINISTRATIVE ACTION
Sec. 130.251. DEFINITIONS. In this subchapter:
(1) "Administrative action" means any matter that may
be the subject of action by the board of trustees or an officer or
employee of a junior college district.
(2) "Commission" means the Texas Ethics Commission.
(3) "Communicates directly with" or any variation of
the phrase means contact in person or by telephone, telegraph,
letter, facsimile, electronic mail, or other electronic means of
communication.
(4) "Compensation" means money, service, facility, or
other thing of value or financial benefit that is received or is to
be received in return for or in connection with services rendered or
to be rendered.
(5) "Expenditure" means a payment, distribution,
loan, advance, reimbursement, deposit, or gift of money or any
thing of value and includes a contract, promise, or agreement,
whether or not legally enforceable, to make an expenditure.
(6) "Immediate family" means a spouse or dependent
child.
(7) "Registrant" means a person required to register
under Section 130.252.
Sec. 130.252. PERSONS REQUIRED TO REGISTER. (a) A person
must register with the commission if the person:
(1) makes a total expenditure of an amount determined
by commission rule but not less than $200 in a calendar quarter, not
including the person's own travel, food, or lodging expenses or the
person's own membership dues, on activities described in Section
130.255(b) to communicate directly with one or more officers or
employees of one or more junior college districts to influence
administrative action; or
(2) receives compensation or reimbursement, not
including reimbursement for the person's own travel, food, or
lodging expenses or the person's own membership dues, of more than
an amount determined by commission rule but not less than $200 in a
calendar quarter from another person to communicate directly with
an officer or employee of a junior college district to influence
administrative action.
(b) Subsection (a)(2) requires a person to register if the
person, as part of the person's regular employment, has
communicated directly with a junior college district officer or
employee to influence administrative action on behalf of another
person by whom the person is compensated or reimbursed, whether or
not the person receives any compensation for the communication in
addition to the salary for that regular employment.
(c) Subsection (a)(2) does not require a member of the
judicial, legislative, or executive branch of state government or
an officer or employee of a political subdivision of the state to
register.
(d) A person who communicates directly with an officer or
employee of a junior college district is not required to register
under Subsection (a)(2) if the person is an attorney of record or
pro se, the person enters the person's appearance in a public record
through pleadings or other written documents in an adversarial
proceeding pending before the board of trustees of the junior
college district, and that communication is the only activity that
would otherwise require the person to register.
Sec. 130.253. EXCEPTIONS. The following persons are not
required to register under this subchapter:
(1) a person who owns, publishes, or is employed by a
newspaper, any other regularly published periodical, a radio
station, a television station, a wire service, or any other bona
fide news medium that in the ordinary course of business
disseminates news, letters to the editors, editorial or other
comment, or paid advertisements that directly or indirectly oppose
or promote administrative action, if the person does not engage in
further or other activities that require registration under this
subchapter and does not represent another person in connection with
influencing administrative action;
(2) a person whose only direct communication with a
junior college district officer or employee to influence
administrative action is an appearance before or testimony to one
or more junior college district officers or employees in a hearing
conducted by or on behalf of a junior college district and who does
not receive special or extra compensation for the appearance other
than actual expenses incurred in attending the hearing;
(3) a person whose only activity is to encourage or
solicit members, employees, or stockholders of an entity by whom
the person is reimbursed, employed, or retained to communicate
directly with junior college district officers or employees to
influence administrative action; and
(4) a person whose only activity to influence
administrative action is to compensate or reimburse an individual
registrant to act in the person's behalf to communicate directly
with a junior college district officer or employee to influence
administrative action.
Sec. 130.254. REGISTRATION. (a) Each person required to
register under this subchapter shall file a written registration
with the commission and shall submit a registration fee.
(b) A registration filed under this subchapter expires
December 31 of each year unless the registrant submits a
registration renewal form to the commission on a form prescribed by
the commission and submits the registration renewal fee. The
registrant may file the registration renewal form and the fee
anytime in December of the year in which the registration expires.
(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; or
(2) $300 for any other registrant.
(d) A person required to register under this subchapter who
has not registered or whose registration has expired shall file the
registration form and submit the registration fee not later than
the fifth day after the date on which the person or the person's
employee makes the first direct communication with a junior college
district officer or employee that requires the person's
registration.
(e) The registration must be verified and must contain:
(1) the registrant's full name and address;
(2) the registrant's normal business name, business
phone number, and business address;
(3) the full name and address of each person:
(A) who reimburses, retains, or employs the
registrant to communicate directly with an officer or employee of a
junior college district to influence administrative action; and
(B) on whose behalf the registrant has
communicated directly with an officer or employee of a junior
college district to influence administrative action;
(4) a general description of the administrative action
that is the subject of the registrant's direct communication with
an officer or employee of a junior college district;
(5) for each person employed or retained by the
registrant for the purpose of assisting in direct communication
with an officer or employee of a junior college district to
influence administrative action:
(A) the full name, business address, and
occupation of the person; and
(B) a general description of the administrative
action to which the person's activities reportable under this
subchapter are related; and
(6) the amount of compensation or reimbursement paid
by each person who reimburses, retains, or employs the registrant
for the purpose of communicating directly with an officer or
employee of a junior college district or on whose behalf the
registrant communicates directly with an officer or employee of a
junior college district.
(f) Compensation or reimbursement required to be reported
under Subsection (e)(6) shall be reported in the following
categories unless reported as an exact amount:
(1) $0 if no compensation or reimbursement is
received;
(2) less than $10,000;
(3) at least $10,000 but less than $25,000;
(4) at least $25,000 but less than $50,000;
(5) at least $50,000 but less than $100,000;
(6) at least $100,000 but less than $150,000;
(7) at least $150,000 but less than $200,000; and
(8) $200,000 or more.
(g) If a registrant's activities are done on behalf of the
members of a group or organization, including a business, trade, or
consumer interest association but excluding a corporation, the
registration form must include:
(1) a statement of the number of members in the group
or organization;
(2) the name of each person in the group or
organization who determines the policy of the group or organization
relating to influencing administrative action;
(3) a full description of the methods by which the
registrant develops and makes decisions about positions on policy;
and
(4) a list of those persons making a grant or
contribution, in addition to or instead of dues or fees, that
exceeds $250 per year.
(h) If a registrant's activities are done on behalf of a
corporation the shares of which are not publicly traded, the
registration form must include:
(1) the number of shareholders in the corporation;
(2) the name and address of each officer or member of
the board of directors; and
(3) the name of each person owning 10 percent or more
shares of the corporation.
(i) If there is a change in the information required to be
reported by a registrant under this section, other than Subsection
(g) or (h), and that changed information is not timely reported on a
report due under Section 130.259, the registrant shall file an
amended statement reflecting the change with the commission not
later than the date on which the next report is due under Section
130.259.
Sec. 130.255. ACTIVITIES REPORT. (a) Each registrant
shall file with the commission a written, verified report
concerning the activities described by this section.
(b) The report must contain the total expenditures under a
category listed in this subsection that the registrant made to
communicate directly with an officer or employee of a junior
college district to influence administrative action and that are
directly attributable to an officer or employee of a junior college
district or the immediate family of an officer or employee of a
junior college district. The report must also include expenditures
for the direct communications under a category listed in this
subsection that other people made on the registrant's behalf if the
expenditures were made with the registrant's consent or were
ratified by the registrant. The expenditures must be reported in
the following categories:
(1) transportation and lodging;
(2) food and beverages;
(3) entertainment;
(4) gifts, other than awards and mementos;
(5) awards and mementos; and
(6) expenditures made for the attendance of officers
or employees of junior college districts at political fund-raisers
or charity events.
(c) The report must also list the total expenditures made by
the registrant or by others on the registrant's behalf and with the
registrant's consent or ratification for broadcast or print
advertisements, direct mailings, and other mass media
communications if:
(1) the communications are made to a person other than
a member, employee, or stockholder of an entity that reimburses,
retains, or employs the registrant; and
(2) the communications support or oppose or encourage
another to support or oppose pending administrative action.
(d) The report must also contain a list of the specific
categories of administrative actions about which the registrant,
any person the registrant retains or employs to appear on the
registrant's behalf, or any other person appearing on the
registrant's behalf communicated directly with an officer or
employee of a junior college district and that has not been reported
under Section 130.254(e)(5).
(e) A registrant who reports an expenditure under one
category provided by Subsection (b) may not report the same
expenditure under another category of Subsection (b).
(f) For purposes of Subsection (b), an expenditure is
directly attributable to the person who consumed the food or
beverage, to the person for whom admission, transportation, or
lodging expenses were paid, or to the person to whom the gift,
award, or memento was given.
Sec. 130.256. DETAILED REPORTS. (a) If a registrant or a
person on the registrant's behalf and with the registrant's consent
or ratification makes expenditures that exceed 60 percent of the
amount of the legislative per diem in a day for transportation or
lodging for an officer or employee of a junior college district, the
registrant shall also state the following on the report filed under
Section 130.255:
(1) the name of the officer or employee on whose behalf
the expenditure is made;
(2) the place and date of the transportation or
lodging; and
(3) the purpose of the transportation or lodging.
(b) If a registrant or a person on the registrant's behalf
and with the registrant's consent or ratification makes
expenditures that exceed 60 percent of the amount of the
legislative per diem in a day for food and beverages for an officer
or employee of a junior college district or makes expenditures that
exceed 60 percent of the amount of the legislative per diem in a day
for entertainment for an officer or employee of a junior college
district or for the immediate family of an officer or employee of a
junior college district, the registrant shall also state the
following on the report filed under Section 130.255:
(1) the name of the officer or employee on whose behalf
the expenditure is made;
(2) the place and date of the expenditure; and
(3) the amount of the expenditure by the appropriate
category of the amount, as determined by the commission.
(c) If a registrant or a person on the registrant's behalf
and with the registrant's consent or ratification gives to an
officer or employee of a junior college district a gift or an award
or memento, the value of which exceeds $50 per gift, award, or
memento, the registrant shall also state the following on the
report filed under Section 130.255:
(1) the name of the officer or employee on whose behalf
the expenditure is made;
(2) a general description of the gift, award, or
memento; and
(3) the amount of the expenditure by the appropriate
category of the amount, as determined by the commission.
(d) If a registrant or a person on the registrant's behalf
and with the registrant's consent or ratification makes
expenditures for the attendance of an officer or employee of a
junior college district at a political fund-raiser or charity
event, the registrant shall also state the following on the report
filed under Section 130.255:
(1) the name of the officer or employee on whose behalf
the expenditure is made;
(2) the name of the charity or the name of the
candidate or officeholder for whom the political fund-raiser was
held, as applicable; and
(3) the date of the fund-raiser or event.
(e) If a registrant or a person on the registrant's behalf
and with the registrant's consent or ratification makes an
expenditure for a gift, award, or memento for an officer or employee
of a junior college district in conjunction with an expenditure for
the attendance of that person at a political fund-raiser or charity
event, the registrant shall report the expenditure for the gift,
award, or memento under Subsection (c), if required, and not under
Subsection (d).
(f) If a registrant or a person on the registrant's behalf
and with the registrant's consent or ratification makes an
expenditure described by Section 130.255(b)(1), (2), or (3) to
communicate directly with more than one officer or employee of a
junior college district to influence administrative action and if
the registrant cannot reasonably determine the amount that is
directly attributable to an officer or employee, the registrant
shall apportion the expenditure made by that registrant according
to the number of persons in attendance. The registrant shall report
as required by Subsection (a), (b), or (c) if the expenditure for
each person exceeds the amount provided under Subsection (a), (b),
or (c).
(g) In this section, "legislative per diem" means the per
diem set by the commission for members of the legislature as
provided by Section 24(a), Article III, Texas Constitution.
Sec. 130.257. MODIFIED REPORTING. (a) A person required
to register under this subchapter may, when filing the registration
form or registration renewal form, elect to file an activities
report under this section instead of Section 130.255 if the person
does not intend to make expenditures reportable under Section
130.255(b) of more than $1,000 during a calendar year, not
including the person's own travel, food, or lodging expenses or the
person's own membership dues.
(b) To be entitled to file reports under this section, the
registrant must file with the registration form or registration
renewal form a written declaration of intent not to exceed $1,000 in
expenditures during each calendar year in which that registration
or registration renewal is effective.
(c) A registrant filing under this section shall annually
file the report required by Section 130.255. The report must be
filed not later than January 10 and must cover the activities
occurring during the previous calendar year.
(d) A registrant who exceeds $1,000 in expenditures shall
file monthly reports as required by Section 130.259. The first
report filed after exceeding $1,000 covers the period beginning
January 1 through the date on which the next reporting period ends.
Sec. 130.258. ELECTRONIC FILING OF REGISTRATIONS AND
ACTIVITY REPORTS. (a) Except as provided by Subsection (b), each
registration filed under Section 130.254 and each report filed
under Section 130.255 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) A registration fee under Section 130.254(c)(1) or (2)
for the calendar years 2006 and 2007 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). Additional revenue generated by a fee
increase under this subsection may be used only to develop and
implement the electronic filing system under Subsection (a). The
commission may impose a different increase for each fee under
Section 130.254(c). This subsection expires January 1, 2008.
Sec. 130.259. REPORT FILING DATES. (a) Each registrant
must file a report required by Section 130.255 between the 1st and
10th day of each month. The report must cover the activities
occurring during the preceding month.
(b) A person who made expenditures on the registrant's
behalf that are required to be reported under Section 130.255 or a
person who has other information that is required to be reported by
the registrant under this subchapter shall provide a full, verified
account of the expenditures to the registrant not later than the
seventh day before the date on which the registrant's report is due.
Sec. 130.260. TERMINATION NOTICE. (a) A person who
ceases to engage in activities requiring registration under this
subchapter shall file a written, verified statement with the
commission acknowledging the termination of activities. The notice
is effective immediately.
(b) A person who files a notice of termination under this
section must file the reports required by Section 130.255 for any
reporting period during which the person was registered.
Sec. 130.261. MAINTENANCE OF REPORTS. (a) All reports
filed under this subchapter are public records and shall be made
available for public inspection during regular business hours.
(b) The commission shall:
(1) maintain registrations and reports in a separate,
alphabetical file;
(2) remove registrations and reports from the files
after five years from the date of filing; and
(3) maintain a deputy available to receive
registrations and reports and make the registrations and reports
available to the public for inspection.
(c) The commission shall retain a report filed under this
subchapter for at least four years after the date the report is
filed.
(d) A registrant shall keep any records necessary to the
reports required under this subchapter for at least four years
after the date the report is filed.
Sec. 130.262. TIMELINESS OF FILING REGISTRATIONS AND
REPORTS. A registration or report filed by first-class United
States mail or by common or contract carrier is timely if:
(1) it is properly addressed with postage or handling
charges prepaid; and
(2) it bears a post office cancellation mark or a
receipt mark from a common or contract carrier indicating a time
within the applicable filing period or before the applicable filing
deadline or if the person required to file furnishes satisfactory
proof that it was deposited in the mail or with a common or contract
carrier within that period or before that deadline.
Sec. 130.263. CRIMINAL PENALTY FOR FAILURE TO REGISTER OR
REPORT. (a) A person who is required to register under Section
130.254 commits an offense if the person knowingly fails to
register as required by that section.
(b) A person who is required by this subchapter to file a
report commits an offense if the person:
(1) knowingly fails to file the report on time; or
(2) knowingly fails to include in the report
information that is required to be included under this subchapter.
(c) An offense under this section is a Class A misdemeanor.
Sec. 130.264. CIVIL PENALTY FOR FAILURE TO REGISTER OR
REPORT. In addition to the criminal penalties prescribed by
Section 130.263, a person who receives compensation or
reimbursement or makes an expenditure for engaging in direct
communication to influence administrative action and who fails to
file a registration form or activities report required to be filed
under this subchapter shall pay a civil penalty in an amount
determined by commission rule, but not to exceed an amount equal to
three times the compensation, reimbursement, or expenditure.
Sec. 130.265. CIVIL PENALTY FOR LATE FILING. (a) The
commission shall determine from any available evidence whether a
registration or report required to be filed with the commission
under this subchapter is late. A registration filed without the fee
required by Section 130.254 is considered to be late. On making a
determination that a required registration or report is late, the
commission shall immediately mail a notice of the determination to
the person responsible for the filing and to the appropriate
attorney for the state.
(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.
(c) If a registration or report is more than 30 days late,
the commission shall issue a warning of liability by registered
mail to the person responsible for the filing. 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 penalty in an amount determined
by commission rule, but not to exceed $10,000.
(d) This section is in addition to any other available
sanctions for late filings of registrations or reports.
Sec. 130.266. FALSE COMMUNICATIONS. (a) A person, for the
purpose of influencing administrative action, may not:
(1) knowingly make a false statement or
misrepresentation of the facts to an officer or employee of a junior
college district; or
(2) cause a copy of a document the person knows to
contain a false statement to be received by an officer or employee
of a junior college district without notifying the officer or
employee in writing of the truth.
(b) A person who violates this section commits an offense.
An offense under this section is a Class A misdemeanor.
Sec. 130.267. RESTRICTIONS ON EXPENDITURES. (a) Except
as provided by Section 130.268, a person registered under Section
130.254 or a person on the registrant's behalf and with the
registrant's consent or ratification may not offer, confer, or
agree to confer to an officer or employee of a junior college
district:
(1) a loan, including the guarantee or endorsement of
a loan;
(2) a gift of cash or a negotiable instrument as
described by Section 3.104, Business & Commerce Code;
(3) an expenditure for transportation and lodging;
(4) an expenditure or series of expenditures for
entertainment that in the aggregate exceed $500 in a calendar year;
(5) an expenditure or series of expenditures for gifts
that in the aggregate exceed $500 in a calendar year;
(6) an expenditure for an award or memento that
exceeds $500; or
(7) an expenditure described by Section
130.255(b)(1), (2), (3), or (6) unless the registrant is present at
the event.
(b) Except as provided by Section 130.268, an officer or
employee of a junior college district may not solicit, accept, or
agree to accept an item listed in Subsection (a) from a person
registered under Section 130.254 or from a person on the
registrant's behalf and with the registrant's consent or
ratification.
(c) A person who violates this section commits an offense.
An offense under this section is a Class A misdemeanor.
Sec. 130.268. EXCEPTIONS. Section 130.267 does not
prohibit:
(1) a loan in the due course of business from a
corporation or other business entity that is legally engaged in the
business of lending money and that has conducted that business
continuously for more than one year before the loan is made;
(2) a loan or guarantee of a loan or a gift made or
given by a person related within the second degree by affinity or
consanguinity as determined under Subchapter B, Chapter 573,
Government Code, to the officer or employee of a junior college
district;
(3) necessary expenditures for transportation and
lodging when the purpose of the travel is to explore matters
directly related to the duties of an officer or employee of a junior
college district, such as fact-finding trips, but not including
attendance at merely ceremonial events or pleasure trips;
(4) necessary expenditures for transportation and
lodging provided in connection with a conference, seminar,
educational program, or similar event in which the officer or
employee renders services, such as addressing an audience or
engaging in a seminar, to the extent that those services are more
than merely perfunctory;
(5) an incidental expenditure for transportation as
determined by commission rule; or
(6) a political contribution as defined by Section
251.001, Election Code.
Sec. 130.269. ENFORCEMENT. (a) The commission, the
attorney general, or any county or district attorney may enforce
this subchapter.
(b) On the application of any citizen of this state, a
district court in Travis County may issue an injunction to enforce
this subchapter.
(c) A person may file with the appropriate prosecuting
attorney or with the commission a written, sworn statement alleging
a violation of this subchapter.
Sec. 130.270. VENUE. An offense under this subchapter,
including perjury, may be prosecuted in Travis County or in any
other county in which it may be prosecuted under the Code of
Criminal Procedure.
SECTION 6. Subchapter B, Chapter 802, Government Code, is
amended by adding Section 802.108 to read as follows:
Sec. 802.108. FILING OF FINANCIAL STATEMENT BY TRUSTEE.
(a) In this section, "trustee" means a member of the governing body
of a public retirement system.
(b) A trustee of a retirement system created for the
officers and employees of a municipality with a population of at
least 750,000 shall file the financial statement required of state
officers under Subchapter B, Chapter 572, with:
(1) the governing body of the retirement system; and
(2) the Texas Ethics Commission.
(c) Subchapter B, Chapter 572:
(1) applies to a trustee subject to this section as if
the trustee were a state officer; and
(2) governs the contents, timeliness of filing, and
public inspection of a statement filed under this section.
(d) A trustee subject to this section commits an offense if
the trustee fails to file the statement required by this section. An
offense under this section is a Class B misdemeanor.
SECTION 7. Chapter 802, Government Code, is amended by
adding Subchapter E to read as follows:
SUBCHAPTER E. REPORTING BY PERSONS SEEKING
TO INFLUENCE MUNICIPAL RETIREMENT SYSTEM ADMINISTRATIVE ACTION
Sec. 802.351. DEFINITIONS. In this subchapter:
(1) "Administrative action" means any matter that may
be the subject of action by the governing body or an officer or
employee of a municipal retirement system.
(2) "Commission" means the Texas Ethics Commission.
(3) "Communicates directly with" or any variation of
the phrase means contact in person or by telephone, telegraph,
letter, facsimile, electronic mail, or other electronic means of
communication.
(4) "Compensation" means money, service, facility, or
other thing of value or financial benefit that is received or is to
be received in return for or in connection with services rendered or
to be rendered.
(5) "Expenditure" means a payment, distribution,
loan, advance, reimbursement, deposit, or gift of money or any
thing of value and includes a contract, promise, or agreement,
whether or not legally enforceable, to make an expenditure.
(6) "Immediate family" means a spouse or dependent
child.
(7) "Large municipal retirement system" means a
retirement system created for the officers and employees of a
municipality with a population of at least 750,000.
(8) "Registrant" means a person required to register
under Section 802.352.
Sec. 802.352. PERSONS REQUIRED TO REGISTER. (a) A person
must register with the commission if the person:
(1) makes a total expenditure of an amount determined
by commission rule but not less than $200 in a calendar quarter, not
including the person's own travel, food, or lodging expenses or the
person's own membership dues, on activities described in Section
802.355(b) to communicate directly with one or more officers or
employees of one or more large municipal retirement systems to
influence administrative action; or
(2) receives compensation or reimbursement, not
including reimbursement for the person's own travel, food, or
lodging expenses or the person's own membership dues, of more than
an amount determined by commission rule but not less than $200 in a
calendar quarter from another person to communicate directly with
an officer or employee of a large municipal retirement system to
influence administrative action.
(b) Subsection (a)(2) requires a person to register if the
person, as part of the person's regular employment, has
communicated directly with an officer or employee of a municipal
retirement system to influence administrative action on behalf of
another person by whom the person is compensated or reimbursed,
whether or not the person receives any compensation for the
communication in addition to the salary for that regular
employment.
(c) Subsection (a)(2) does not require a member of the
judicial, legislative, or executive branch of state government or
an officer or employee of a political subdivision of the state to
register.
(d) A person who communicates directly with an officer or
employee of a municipal retirement system is not required to
register under Subsection (a)(2) if the person is an attorney of
record or pro se, the person enters the person's appearance in a
public record through pleadings or other written documents in an
adversarial proceeding pending before the governing body of the
municipal retirement system, and that communication is the only
activity that would otherwise require the person to register.
Sec. 802.353. EXCEPTIONS. The following persons are not
required to register under this subchapter:
(1) a person who owns, publishes, or is employed by a
newspaper, any other regularly published periodical, a radio
station, a television station, a wire service, or any other bona
fide news medium that in the ordinary course of business
disseminates news, letters to the editors, editorial or other
comment, or paid advertisements that directly or indirectly oppose
or promote administrative action, if the person does not engage in
further or other activities that require registration under this
subchapter and does not represent another person in connection with
influencing administrative action;
(2) a person whose only direct communication with an
officer or employee of a municipal retirement system to influence
administrative action is an appearance before or testimony to one
or more system officers or employees in a hearing conducted by or on
behalf of a municipal retirement system and who does not receive
special or extra compensation for the appearance other than actual
expenses incurred in attending the hearing;
(3) a person whose only activity is to encourage or
solicit members, employees, or stockholders of an entity by whom
the person is reimbursed, employed, or retained to communicate
directly with officers or employees of a municipal retirement
system to influence administrative action; and
(4) a person whose only activity to influence
administrative action is to compensate or reimburse an individual
registrant to act in the person's behalf to communicate directly
with an officer or employee of a municipal retirement system to
influence administrative action.
Sec. 802.354. REGISTRATION. (a) Each person required to
register under this subchapter shall file a written registration
with the commission and shall submit a registration fee.
(b) A registration filed under this subchapter expires
December 31 of each year unless the registrant submits a
registration renewal form to the commission on a form prescribed by
the commission and submits the registration renewal fee. The
registrant may file the registration renewal form and the fee
anytime in December of the year in which the registration expires.
(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; or
(2) $300 for any other registrant.
(d) A person required to register under this subchapter who
has not registered or whose registration has expired shall file the
registration form and submit the registration fee not later than
the fifth day after the date on which the person or the person's
employee makes the first direct communication with an officer or
employee of a municipal retirement system that requires the
person's registration.
(e) The registration must be verified and must contain:
(1) the registrant's full name and address;
(2) the registrant's normal business name, business
phone number, and business address;
(3) the full name and address of each person:
(A) who reimburses, retains, or employs the
registrant to communicate directly with an officer or employee of a
large municipal retirement system to influence administrative
action; and
(B) on whose behalf the registrant has
communicated directly with an officer or employee of a large
municipal retirement system to influence administrative action;
(4) a general description of the administrative action
that is the subject of the registrant's direct communication with
an officer or employee of a large municipal retirement system;
(5) for each person employed or retained by the
registrant for the purpose of assisting in direct communication
with an officer or employee of a large municipal retirement system
to influence administrative action:
(A) the full name, business address, and
occupation of the person; and
(B) a general description of the administrative
action to which the person's activities reportable under this
subchapter are related; and
(6) the amount of compensation or reimbursement paid
by each person who reimburses, retains, or employs the registrant
for the purpose of communicating directly with an officer or
employee of a large municipal retirement system or on whose behalf
the registrant communicates directly with an officer or employee of
a large municipal retirement system.
(f) Compensation or reimbursement required to be reported
under Subsection (e)(6) shall be reported in the following
categories unless reported as an exact amount:
(1) $0 if no compensation or reimbursement is
received;
(2) less than $10,000;
(3) at least $10,000 but less than $25,000;
(4) at least $25,000 but less than $50,000;
(5) at least $50,000 but less than $100,000;
(6) at least $100,000 but less than $150,000;
(7) at least $150,000 but less than $200,000; and
(8) $200,000 or more.
(g) If a registrant's activities are done on behalf of the
members of a group or organization, including a business, trade, or
consumer interest association but excluding a corporation, the
registration form must include:
(1) a statement of the number of members in the group
or organization;
(2) the name of each person in the group or
organization who determines the policy of the group or organization
relating to influencing administrative action;
(3) a full description of the methods by which the
registrant develops and makes decisions about positions on policy;
and
(4) a list of those persons making a grant or
contribution, in addition to or instead of dues or fees, that
exceeds $250 per year.
(h) If a registrant's activities are done on behalf of a
corporation the shares of which are not publicly traded, the
registration form must include:
(1) the number of shareholders in the corporation;
(2) the name and address of each officer or member of
the board of directors; and
(3) the name of each person owning 10 percent or more
shares of the corporation.
(i) If there is a change in the information required to be
reported by a registrant under this section, other than Subsection
(g) or (h), and that changed information is not timely reported on a
report due under Section 802.359, the registrant shall file an
amended statement reflecting the change with the commission not
later than the date on which the next report is due under Section
802.359.
Sec. 802.355. ACTIVITIES REPORT. (a) Each registrant
shall file with the commission a written, verified report
concerning the activities described by this section.
(b) The report must contain the total expenditures under a
category listed in this subsection that the registrant made to
communicate directly with an officer or employee of a large
municipal retirement system to influence administrative action and
that are directly attributable to an officer or employee of a large
municipal retirement system or the immediate family of an officer
or employee of a large municipal retirement system. The report must
also include expenditures for the direct communications under a
category listed in this subsection that other people made on the
registrant's behalf if the expenditures were made with the
registrant's consent or were ratified by the registrant. The
expenditures must be reported in the following categories:
(1) transportation and lodging;
(2) food and beverages;
(3) entertainment;
(4) gifts, other than awards and mementos;
(5) awards and mementos; and
(6) expenditures made for the attendance of officers
or employees of large municipal retirement systems at political
fund-raisers or charity events.
(c) The report must also list the total expenditures made by
the registrant or by others on the registrant's behalf and with the
registrant's consent or ratification for broadcast or print
advertisements, direct mailings, and other mass media
communications if:
(1) the communications are made to a person other than
a member, employee, or stockholder of an entity that reimburses,
retains, or employs the registrant; and
(2) the communications support or oppose or encourage
another to support or oppose pending administrative action.
(d) The report must also contain a list of the specific
categories of administrative actions about which the registrant,
any person the registrant retains or employs to appear on the
registrant's behalf, or any other person appearing on the
registrant's behalf communicated directly with an officer or
employee of a large municipal retirement system and that has not
been reported under Section 802.354(e)(5).
(e) A registrant who reports an expenditure under one
category provided by Subsection (b) may not report the same
expenditure under another category of Subsection (b).
(f) For purposes of Subsection (b), an expenditure is
directly attributable to the person who consumed the food or
beverage, to the person for whom admission, transportation, or
lodging expenses were paid, or to the person to whom the gift,
award, or memento was given.
Sec. 802.356. DETAILED REPORTS. (a) If a registrant or a
person on the registrant's behalf and with the registrant's consent
or ratification makes expenditures that exceed 60 percent of the
amount of the legislative per diem in a day for transportation or
lodging for an officer or employee of a large municipal retirement
system, the registrant shall also state the following on the report
filed under Section 802.355:
(1) the name of the officer or employee on whose behalf
the expenditure is made;
(2) the place and date of the transportation or
lodging; and
(3) the purpose of the transportation or lodging.
(b) If a registrant or a person on the registrant's behalf
and with the registrant's consent or ratification makes
expenditures that exceed 60 percent of the amount of the
legislative per diem in a day for food and beverages for an officer
or employee of a large municipal retirement system or makes
expenditures that exceed 60 percent of the amount of the
legislative per diem in a day for entertainment for an officer or
employee of a large municipal retirement system or for the
immediate family of an officer or employee of a large municipal
retirement system, the registrant shall also state the following on
the report filed under Section 802.355:
(1) the name of the officer or employee on whose behalf
the expenditure is made;
(2) the place and date of the expenditure; and
(3) the amount of the expenditure by the appropriate
category of the amount, as determined by the commission.
(c) If a registrant or a person on the registrant's behalf
and with the registrant's consent or ratification gives to an
officer or employee of a large municipal retirement system a gift or
an award or memento, the value of which exceeds $50 per gift, award,
or memento, the registrant shall also state the following on the
report filed under Section 802.355:
(1) the name of the officer or employee on whose behalf
the expenditure is made;
(2) a general description of the gift, award, or
memento; and
(3) the amount of the expenditure by the appropriate
category of the amount, as determined by the commission.
(d) If a registrant or a person on the registrant's behalf
and with the registrant's consent or ratification makes
expenditures for the attendance of an officer or employee of a large
municipal retirement system at a political fund-raiser or charity
event, the registrant shall also state the following on the report
filed under Section 802.355:
(1) the name of the officer or employee on whose behalf
the expenditure is made;
(2) the name of the charity or the name of the
candidate or officeholder for whom the political fund-raiser was
held, as applicable; and
(3) the date of the fund-raiser or event.
(e) If a registrant or a person on the registrant's behalf
and with the registrant's consent or ratification makes an
expenditure for a gift, award, or memento for an officer or employee
of a large municipal retirement system in conjunction with an
expenditure for the attendance of that person at a political
fund-raiser or charity event, the registrant shall report the
expenditure for the gift, award, or memento under Subsection (c),
if required, and not under Subsection (d).
(f) If a registrant or a person on the registrant's behalf
and with the registrant's consent or ratification makes an
expenditure described by Section 802.355(b)(1), (2), or (3) to
communicate directly with more than one officer or employee of a
large municipal retirement system to influence administrative
action and if the registrant cannot reasonably determine the amount
that is directly attributable to an officer or employee, the
registrant shall apportion the expenditure made by that registrant
according to the number of persons in attendance. The registrant
shall report as required by Subsection (a), (b), or (c) if the
expenditure for each person exceeds the amount provided under
Subsection (a), (b), or (c).
(g) In this section, "legislative per diem" means the per
diem set by the commission for members of the legislature as
provided by Section 24(a), Article III, Texas Constitution.
Sec. 802.357. MODIFIED REPORTING. (a) A person required
to register under this subchapter may, when filing the registration
form or registration renewal form, elect to file an activities
report under this section instead of Section 802.355 if the person
does not intend to make expenditures reportable under Section
802.355(b) of more than $1,000 during a calendar year, not
including the person's own travel, food, or lodging expenses or the
person's own membership dues.
(b) To be entitled to file reports under this section, the
registrant must file with the registration form or registration
renewal form a written declaration of intent not to exceed $1,000 in
expenditures during each calendar year in which that registration
or registration renewal is effective.
(c) A registrant filing under this section shall annually
file the report required by Section 802.355. The report must be
filed not later than January 10 and must cover the activities
occurring during the previous calendar year.
(d) A registrant who exceeds $1,000 in expenditures shall
file monthly reports as required by Section 802.359. The first
report filed after exceeding $1,000 covers the period beginning
January 1 through the date on which the next reporting period ends.
Sec. 802.358. ELECTRONIC FILING OF REGISTRATIONS AND
ACTIVITY REPORTS. (a) Except as provided by Subsection (b), each
registration filed under Section 802.354 and each report filed
under Section 802.355 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) A registration fee under Section 802.354(c)(1) or (2)
for the calendar years 2006 and 2007 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). Additional revenue generated by a fee
increase under this subsection may be used only to develop and
implement the electronic filing system under Subsection (a). The
commission may impose a different increase for each fee under
Section 802.354(c). This subsection expires January 1, 2008.
Sec. 802.359. REPORT FILING DATES. (a) Each registrant
must file a report required by Section 802.355 between the 1st and
10th day of each month. The report must cover the activities
occurring during the preceding month.
(b) A person who made expenditures on the registrant's
behalf that are required to be reported under Section 802.355 or a
person who has other information that is required to be reported by
the registrant under this subchapter shall provide a full, verified
account of the expenditures to the registrant not later than the
seventh day before the date on which the registrant's report is due.
Sec. 802.360. TERMINATION NOTICE. (a) A person who
ceases to engage in activities requiring registration under this
subchapter shall file a written, verified statement with the
commission acknowledging the termination of activities. The notice
is effective immediately.
(b) A person who files a notice of termination under this
section must file the reports required by Section 802.355 for any
reporting period during which the person was registered.
Sec. 802.361. MAINTENANCE OF REPORTS. (a) All reports
filed under this subchapter are public records and shall be made
available for public inspection during regular business hours.
(b) The commission shall:
(1) maintain registrations and reports in a separate,
alphabetical file;
(2) remove registrations and reports from the files
after five years from the date of filing; and
(3) maintain a deputy available to receive
registrations and reports and make the registrations and reports
available to the public for inspection.
(c) The commission shall retain a report filed under this
subchapter for at least four years after the date the report is
filed.
(d) A registrant shall keep any records necessary to the
reports required under this subchapter for at least four years
after the date the report is filed.
Sec. 802.362. TIMELINESS OF FILING REGISTRATIONS AND
REPORTS. A registration or report filed by first-class United
States mail or by common or contract carrier is timely if:
(1) it is properly addressed with postage or handling
charges prepaid; and
(2) it bears a post office cancellation mark or a
receipt mark from a common or contract carrier indicating a time
within the applicable filing period or before the applicable filing
deadline or if the person required to file furnishes satisfactory
proof that it was deposited in the mail or with a common or contract
carrier within that period or before that deadline.
Sec. 802.363. CRIMINAL PENALTY FOR FAILURE TO REGISTER OR
REPORT. (a) A person who is required to register under Section
802.354 commits an offense if the person knowingly fails to
register as required by that section.
(b) A person who is required by this subchapter to file a
report commits an offense if the person:
(1) knowingly fails to file the report on time; or
(2) knowingly fails to include in the report
information that is required to be included under this subchapter.
(c) An offense under this section is a Class A misdemeanor.
Sec. 802.364. CIVIL PENALTY FOR FAILURE TO REGISTER OR
REPORT. In addition to the criminal penalties prescribed by
Section 802.363, a person who receives compensation or
reimbursement or makes an expenditure for engaging in direct
communication to influence administrative action and who fails to
file a registration form or activities report required to be filed
under this subchapter shall pay a civil penalty in an amount
determined by commission rule, but not to exceed an amount equal to
three times the compensation, reimbursement, or expenditure.
Sec. 802.365. CIVIL PENALTY FOR LATE FILING. (a) The
commission shall determine from any available evidence whether a
registration or report required to be filed with the commission
under this subchapter is late. A registration filed without the fee
required by Section 802.354 is considered to be late. On making a
determination that a required registration or report is late, the
commission shall immediately mail a notice of the determination to
the person responsible for the filing and to the appropriate
attorney for the state.
(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.
(c) If a registration or report is more than 30 days late,
the commission shall issue a warning of liability by registered
mail to the person responsible for the filing. 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 penalty in an amount determined
by commission rule, but not to exceed $10,000.
(d) This section is in addition to any other available
sanctions for late filings of registrations or reports.
Sec. 802.366. FALSE COMMUNICATIONS. (a) A person, for the
purpose of influencing administrative action, may not:
(1) knowingly make a false statement or
misrepresentation of the facts to an officer or employee of a large
municipal retirement system; or
(2) cause a copy of a document the person knows to
contain a false statement to be received by an officer or employee
of a large municipal retirement system without notifying the
officer or employee in writing of the truth.
(b) A person who violates this section commits an offense.
An offense under this section is a Class A misdemeanor.
Sec. 802.367. RESTRICTIONS ON EXPENDITURES. (a) Except
as provided by Section 802.368, a person registered under Section
802.354 or a person on the registrant's behalf and with the
registrant's consent or ratification may not offer, confer, or
agree to confer to an officer or employee of a large municipal
retirement system:
(1) a loan, including the guarantee or endorsement of
a loan;
(2) a gift of cash or a negotiable instrument as
described by Section 3.104, Business & Commerce Code;
(3) an expenditure for transportation and lodging;
(4) an expenditure or series of expenditures for
entertainment that in the aggregate exceed $500 in a calendar year;
(5) an expenditure or series of expenditures for gifts
that in the aggregate exceed $500 in a calendar year;
(6) an expenditure for an award or memento that
exceeds $500; or
(7) an expenditure described by Section
802.355(b)(1), (2), (3), or (6) unless the registrant is present at
the event.
(b) Except as provided by Section 802.368, an officer or
employee of a large municipal retirement system may not solicit,
accept, or agree to accept an item listed in Subsection (a) from a
person registered under Section 802.354 or from a person on the
registrant's behalf and with the registrant's consent or
ratification.
(c) A person who violates this section commits an offense.
An offense under this section is a Class A misdemeanor.
Sec. 802.368. EXCEPTIONS. Section 802.367 does not
prohibit:
(1) a loan in the due course of business from a
corporation or other business entity that is legally engaged in the
business of lending money and that has conducted that business
continuously for more than one year before the loan is made;
(2) a loan or guarantee of a loan or a gift made or
given by a person related within the second degree by affinity or
consanguinity as determined under Subchapter B, Chapter 573, to the
officer or employee of a large municipal retirement system;
(3) necessary expenditures for transportation and
lodging when the purpose of the travel is to explore matters
directly related to the duties of an officer or employee of a large
municipal retirement system, such as fact-finding trips, but not
including attendance at merely ceremonial events or pleasure trips;
(4) necessary expenditures for transportation and
lodging provided in connection with a conference, seminar,
educational program, or similar event in which the officer or
employee renders services, such as addressing an audience or
engaging in a seminar, to the extent that those services are more
than merely perfunctory;
(5) an incidental expenditure for transportation as
determined by commission rule; or
(6) a political contribution as defined by Section
251.001, Election Code.
Sec. 802.369. ENFORCEMENT. (a) The commission, the
attorney general, or any county or district attorney may enforce
this subchapter.
(b) On the application of any citizen of this state, a
district court in Travis County may issue an injunction to enforce
this subchapter.
(c) A person may file with the appropriate prosecuting
attorney or with the commission a written, sworn statement alleging
a violation of this subchapter.
Sec. 802.370. VENUE. An offense under this subchapter,
including perjury, may be prosecuted in Travis County or in any
other county in which it may be prosecuted under the Code of
Criminal Procedure.
SECTION 8. Section 571.061(a), Government Code, is amended
to read as follows:
(a) The commission shall administer and enforce:
(1) Chapters 302, 303, 305, 572, and 2004;
(2) Subchapter C, Chapter 159, Local Government Code,
in connection with a county judicial officer, as defined by Section
159.051, Local Government Code, who elects to file a financial
statement with the commission; [and]
(3) Title 15, Election Code;
(4) Subchapter I, Chapter 11, Education Code, and
Subchapter K, Chapter 130, Education Code; and
(5) Subchapter E, Chapter 802.
SECTION 9. Section 571.0671, Government Code, is amended to
read as follows:
Sec. 571.0671. REQUIREMENTS FOR ELECTRONIC FILING
SOFTWARE. (a) Computer software provided or approved by the
commission for use under Section 254.036(b), Election Code, Section
11.408 or 130.258, Education Code, or Section 302.013, [or]
305.0064, or 802.358 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;
(3) be capable of being used by a person with basic
computing skills;
(4) provide confirmation to a person filing a report
that the report was properly received; and
(5) 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(b) [254.036], Election Code, Section 11.408 or 130.258,
Education Code, or Section 302.013, [or] 305.0064, or 802.358, 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, Section 11.408 or 130.258,
Education Code, or Section 302.013, [or] 305.0064, or 802.358 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 fee for providing the
software on storage media. A fee under this subsection may not
exceed the cost to the commission of providing the software.
SECTION 10. Section 571.091(a), Government Code, is amended
to read as follows:
(a) The commission shall prepare a written opinion
answering the request of a person subject to any of the following
laws for an opinion about the application of any of these laws to
the person in regard to a specified existing or hypothetical
factual situation:
(1) Chapter 302;
(2) Chapter 303;
(3) Chapter 305;
(4) Chapter 2004;
(5) Chapter 572;
(6) Subchapter C, Chapter 159, Local Government Code,
as provided by Section 571.061(a)(2);
(7) Title 15, Election Code;
(8) Chapter 36, Penal Code; [or]
(9) Chapter 39, Penal Code;
(10) Subchapter I, Chapter 11, Education Code, or
Subchapter K, Chapter 130, Education Code; or
(11) Subchapter E, Chapter 802.
SECTION 11. (a) Sections 11.101, 11.2011, and 130.0831,
Education Code, as added by this Act, and Section 802.108,
Government Code, as added by this Act, apply beginning January 1,
2007. A trustee subject to Section 11.101, Education Code, as added
by this Act, a superintendent subject to Section 11.2011, Education
Code, as added by this Act, a trustee subject to Section 130.0831,
Education Code, as added by this Act, or a trustee subject to
Section 802.108, Government Code, as added by this Act, is not
required to include financial activity occurring before January 1,
2006, in a financial disclosure statement required under Section
11.101, 11.2011, or 130.0831, Education Code, as added by this Act,
or Section 802.108, Government Code, as added by this Act.
(b) Subchapter I, Chapter 11, Education Code, as added by
this Act, Subchapter K, Chapter 130, Education Code, as added by
this Act, and Subchapter E, Chapter 802, Government Code, as added
by this Act, apply beginning January 1, 2006. Not later than
November 1, 2005, the Texas Ethics Commission shall design and make
available forms for registration and reporting under Subchapter I,
Chapter 11, Education Code, as added by this Act, Subchapter K,
Chapter 130, Education Code, as added by this Act, and Subchapter E,
Chapter 802, Government Code, as added by this Act. The Texas Ethics
Commission shall begin accepting registrations under Section
11.404, Education Code, as added by this Act, Section 130.254,
Education Code, as added by this Act, and Section 802.354,
Government Code, as added by this Act, on December 1, 2005.
SECTION 12. This Act takes effect September 1, 2005.