79R2361 DLF-D

By:  Woolley                                                      H.B. No. 914


A BILL TO BE ENTITLED
AN ACT
relating to disclosure of certain business or financial relationships with certain local government officers; providing criminal penalties. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subtitle C, Title 5, Local Government Code, is amended by adding Chapter 176 to read as follows:
CHAPTER 176. DISCLOSURE OF CERTAIN RELATIONSHIPS WITH LOCAL GOVERNMENT OFFICERS
Sec. 176.001. DEFINITIONS. In this chapter: (1) "Commission" means the Texas Ethics Commission. (2) "Family member" means a person related to another person within the first degree by consanguinity or affinity, as described by Subchapter B, Chapter 573, Government Code. (3) "Local governmental entity" means a county, municipality, school district, or other political subdivision of this state or a local government corporation, board, commission, district, or authority to which a member is appointed by the commissioners court of a county, the mayor of a municipality, or the governing body of a municipality. The term does not include an association, corporation, or organization of governmental entities organized to provide to its members education, assistance, products, or services or to represent its members before the legislative, administrative, or judicial branches of the state or federal government. (4) "Local government officer" means: (A) a member of the governing body of a local governmental entity; or (B) a director, superintendent, administrator, president, or other person designated as the executive officer of the local governmental entity. (5) "Records administrator" means the director, county clerk, municipal secretary, superintendent, or other person responsible for maintaining the records of the local governmental entity. Sec. 176.002. APPLICABILITY TO CERTAIN VENDORS AND OTHER PERSONS. (a) This chapter applies to a person who: (1) contracts or seeks to contract for the sale or purchase of property, goods, or services with a local governmental entity; (2) seeks the approval of a plat with the governing body of a local governmental entity; (3) seeks a permit or license to be granted by a local governmental entity; or (4) is an agent of a person described by Subdivision (1), (2), or (3) in the person's business with a local governmental entity. (b) A person is not subject to the disclosure requirements of this chapter if the person is: (1) a state, a political subdivision of a state, the federal government, or a foreign government; or (2) an employee of an entity described by Subdivision (1), acting in the employee's official capacity. Sec. 176.003. CONFLICTS DISCLOSURE STATEMENT REQUIRED. (a) A local government officer shall file a conflicts disclosure statement with respect to a person described by Section 176.002(a) if: (1) the person has contracted with the local governmental entity or the local governmental entity is considering doing business with the person; and (2) the person: (A) has an employment or other business relationship with the local government officer or a family member of the officer that results in the officer or family member receiving taxable income; or (B) has offered or given to the local government officer or a family member of the officer one or more gifts that have an aggregate value of more than $250 in the 12-month period preceding the date the officer becomes aware that: (i) a contract described by Subdivision (1) has been executed; or (ii) the local governmental entity is considering doing business with the person. (b) A local government officer shall file the conflicts disclosure statement with the records administrator of the local governmental entity not later than 5 p.m. on the seventh business day after the date on which the officer becomes aware of the facts that require the filing of the statement under Subsection (a). (c) A local government officer commits an offense if the officer knowingly violates this section. An offense under this subsection is a Class C misdemeanor. Sec. 176.004. CONTENTS OF DISCLOSURE STATEMENT. The commission shall adopt the conflicts disclosure statement for local government officers. The conflicts disclosure statement must include: (1) a requirement that each local government officer disclose: (A) an employment or other business relationship described by Section 176.003(a), including the nature and extent of the relationship; and (B) gifts offered to or received by the local government officer and any family member of the officer from a person described by Section 176.002(a) during the 12-month period described by Section 176.003(a)(2)(B) if the aggregate value of the gifts from that person exceed $250; (2) an acknowledgment from the local government officer that: (A) the disclosure applies to each family member of the officer; and (B) the statement covers the 12-month period described by Section 176.003(a)(2)(B); and (3) the signature of the local government officer acknowledging that the statement is made under oath under penalty of perjury. Sec. 176.005. APPLICATION TO CERTAIN EMPLOYEES. (a) The local governmental entity may extend the requirements of Sections 176.003 and 176.004 to all or a group of the employees of the local governmental entity. (b) A local governmental entity may reprimand, suspend, or terminate the employment of an employee who fails to comply with a requirement adopted under this section. (c) An employee of a local governmental entity commits an offense if the employee knowingly violates requirements imposed under this section. An offense under this subsection is a Class C misdemeanor. Sec. 176.006. DISCLOSURE REQUIREMENTS FOR VENDORS AND OTHER PERSONS; QUESTIONNAIRE. (a) A person described by Section 176.002(a) shall file a completed conflict of interest questionnaire with the appropriate records administrator not later than the seventh business day after the date that the person: (1) begins contract discussions or negotiations with the local governmental entity; or (2) submits to the local governmental entity: (A) an application, response to a request for proposals or bids, correspondence, or another writing related to a potential agreement with the local governmental entity; (B) a request for approval of a plat; or (C) a request for the granting of a permit or license. (b) The commission shall adopt a conflict of interest questionnaire for use under this section that requires disclosure of a person's affiliations or business relationships that might cause a conflict of interest with a local governmental entity. (c) The questionnaire adopted under Subsection (b) must require, for the local governmental entity with respect to which the questionnaire is filed, that the person filing the questionnaire: (1) describe each affiliation or business relationship the person has with each local government officer of the local governmental entity; (2) identify each affiliation or business relationship described by Subdivision (1) with respect to which the local government officer receives, or is likely to receive, taxable income from the person filing the questionnaire; (3) identify each affiliation or business relationship described by Subdivision (1) with respect to which the person filing the questionnaire receives, or is likely to receive, taxable income that: (A) is received from, or at the direction of, a local government officer of the local governmental entity; and (B) is not received from the local governmental entity; (4) describe each affiliation or business relationship with a corporation or other business entity with respect to which a local government officer of the local governmental entity: (A) serves as an officer or director; or (B) holds an ownership interest of 10 percent or more; (5) describe each affiliation or business relationship with an employee or contractor of the local governmental entity who makes recommendations to a local government officer of the local governmental entity with respect to: (A) the expenditure of money; (B) the approval of a plat; or (C) the granting of a permit or license; (6) describe each affiliation or business relationship with a person who: (A) is a local government officer; and (B) appoints or employs a local government officer of the local governmental entity that is the subject of the questionnaire; and (7) describe any other affiliation or business relationship that might cause a conflict of interest. (d) A person described by Subsection (a) shall file an updated completed questionnaire with the appropriate records administrator not later than: (1) September 1 of each year in which an activity described by Subsection (a) is pending; and (2) the seventh business day after the date of an event that would make a statement in the questionnaire incomplete or inaccurate. (e) A person is not required to file an updated completed questionnaire under Subsection (d)(1) in a year if the person has filed a questionnaire under Subsection (c) or (d)(2) on or after June 1, but before September 1, of that year. (f) A local governmental entity may void a contract entered into with a person described by Subsection (a) if the person violates this section. The contract must state the substance of this subsection. (g) A person commits an offense if the person violates this section. An offense under this subsection is a Class C misdemeanor. (h) It is a defense to prosecution under Subsection (g) that the person filed the required questionnaire not later than the seventh business day after the date the person received notice of the violation. Sec. 176.007. LIST OF GOVERNMENT OFFICERS. The records administrator for a local governmental entity shall maintain a list of local government officers of the entity and shall make that list available to the public and any person who may be required to file a questionnaire under Section 176.006. Sec. 176.008. ELECTRONIC FILING. The requirements of this chapter, including signature requirements, may be satisfied by electronic filing in a form approved by the commission. Sec. 176.009. POSTING ON INTERNET. A local governmental entity shall provide access to the statements and questionnaires filed under this chapter on the Internet website maintained by the local governmental entity. Sec. 176.010. REQUIREMENTS CUMULATIVE. The requirements of this chapter are in addition to any other disclosure required by law. SECTION 2. Section 176.006(f), Local Government Code, as added by this Act, applies only to a contract entered into on or after the effective date of this Act. SECTION 3. The Texas Ethics Commission shall adopt the conflicts disclosure statement and the conflict of interest questionnaire required by Chapter 176, Local Government Code, as added by this Act, not later than December 1, 2005. SECTION 4. (a) A local government officer is not required to file a conflicts disclosure statement under Chapter 176, Local Government Code, as added by this Act, before January 1, 2006. (b) A person described by Section 176.002(a), Local Government Code, as added by this Act, is not required to file a conflict of interest questionnaire under Chapter 176, Local Government Code, as added by this Act, before January 1, 2006. SECTION 5. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2005.