79R5628 SGA-F
By: Morrison H.B. No. 2334
A BILL TO BE ENTITLED
AN ACT
relating to the filing of a disclosure statement by a vendor or
member of a governing body of a port authority or navigation
district; imposing a penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 60, Water Code, is amended by adding
Subchapter P to read as follows:
SUBCHAPTER P. DISCLOSURE REQUIREMENTS FOR VENDORS
AND MEMBERS OF GOVERNING BODIES
Sec. 60.481. DEFINITIONS. In this subchapter:
(1) "Governing body" means the governing body of a
port authority or navigation district.
(2) "Vendor" means a person who provides goods or
services.
Sec. 60.482. APPLICABILITY OF SUBCHAPTER. This subchapter
applies only to a port authority or navigation district created or
operating under Section 52, Article III, or Section 59, Article
XVI, Texas Constitution.
Sec. 60.483. VENDOR REQUIREMENTS. (a) This section
applies to a vendor who:
(1) responds to a port authority or navigation
district request for a proposal; or
(2) otherwise communicates with the port authority or
navigation district in connection with a potential agreement
between that vendor and the authority or district.
(b) The governing body by rule shall design a conflict of
interest questionnaire that requires disclosure of a vendor's
affiliations or business relationships that might cause a conflict
of interest.
(c) A vendor shall file a completed conflict of interest
questionnaire with the secretary of the governing body not later
than the seventh day after the date the vendor:
(1) begins contract discussions or negotiations with
the port authority or navigation district; or
(2) forwards an application, a response to a request
for proposal, correspondence, or other writings related to an
agreement or potential agreement with the port authority or
navigation district.
(d) A vendor shall file an updated completed questionnaire
with the secretary of the governing body:
(1) on September 1 of each year if the vendor took an
action described by Subsection (a) in the preceding 12 months; and
(2) after each event that would make a statement in the
questionnaire filed under Subsection (c) or Subdivision (1) of this
subsection incomplete or inaccurate.
(e) Each contract entered into between a port authority or
navigation district and a vendor shall contain a provision stating
that the contract is voidable if the vendor violates this section.
A contract entered into between a port authority or navigation
district and a vendor is voidable if the vendor violates this
section.
Sec. 60.484. DISCLOSURE OF VENDOR RELATIONSHIP BY MEMBERS
OF GOVERNING BODY. (a) The governing body by rule shall design a
conflicts disclosure statement for members of the governing body
that includes:
(1) a requirement that each member of the governing
body disclose:
(A) an employment or other business relationship
with a vendor that results in the member receiving taxable income,
including the nature and extent of the relationship; and
(B) any gifts received in a 12-month period by
that member from a vendor that have a total value of more than $250;
(2) an acknowledgment from the member that:
(A) the disclosure applies to a person related to
that member within the first degree by consanguinity or by
affinity, as defined by Subchapter B, Chapter 573, Government Code;
and
(B) the statement covers the preceding 12 months;
and
(3) a signature by the member acknowledging execution
of the statement under penalty of perjury.
(b) The disclosure requirement applies to a member of the
governing body and requires disclosure for a person related to that
member within the first degree by consanguinity or by affinity, as
defined by Subchapter B, Chapter 573, Government Code.
(c) A member of a governing body shall file a conflicts
disclosure statement with the Texas Ethics Commission and the
secretary of the governing body not later than the end of the fifth
business day after the date the member became aware of the
relationship between the port authority or navigation district and
the vendor if:
(1) the vendor has contracted with the port authority
or navigation district;
(2) the port authority or navigation district is
considering conducting business with the vendor; or
(3) a vendor offered one or more gifts to that member
in the preceding 12-month period that have a total value of more
than $250.
(d) A member of the governing body may request in writing
that the general counsel of the port authority or navigation
district advise the member with respect to a potential violation of
this section. If the request provides detailed information about
an alleged violation or hypothetical situation, the member is
entitled to rely in good faith on the general counsel's advisory
opinion written in response to the member's request.
(e) If, after notice and hearing, the Texas Ethics
Commission finds that a member of the governing body has violated
this section, the Texas Ethics Commission:
(1) may impose a civil penalty against the member, in
an amount not to exceed $2,000, for the violation; and
(2) shall notify the entity that appointed the member
to the governing body of the finding.
SECTION 2. Subchapter O, Chapter 60, Water Code, as added by
Chapter 249, Acts of the 78th Legislature, Regular Session, 2003,
is repealed.
SECTION 3. A vendor is required to file a completed conflict
of interest questionnaire under Section 60.483(c), Water Code, as
added by this Act, only if the vendor takes an action described by
Subdivision (1) or (2) of that subsection on or after the effective
date of this Act.
SECTION 4. Section 60.483(e), Water Code, as added by this
Act, applies only to:
(1) a contract entered into by a vendor on or after
September 1, 2005; or
(2) a renewal or extension of a contract entered into
by a vendor before September 1, 2005, that begins on or after
September 1, 2005.
SECTION 5. A member of the governing body of a port
authority or navigation district is required to file a conflicts
disclosure statement under Section 60.484(c), Water Code, as added
by this Act, only if the port authority or navigation district or a
vendor, as applicable, takes an action described by Subdivision
(1), (2), or (3) of that subsection on or after the effective date
of this Act.
SECTION 6. This Act takes effect September 1, 2005.