By: Davis of Harris H.B. No. 3736

A BILL TO BE ENTITLED

AN ACT

relating to conflicts of interest by members of state agency governing boards; creating a criminal offense.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle B, Title 5, Government Code is amended by adding Chapter 576 to read as follows:

CHAPTER 576. CONFLICT OF INTEREST BY MEMBER OF STATE AGENCY

GOVERNING BOARD

Sec. 576.001. DEFINITIONS. I n this chapter:

(1) "Conflict of interest" means a circumstance in which an individual who is a member of a governing board is in a position to receive a pecuniary gain, other than a gain that is de minimis or a gain that is common to a broad class of individuals, from a decision of the governing board.

(2) "State agency" means a board, commission, council, committee, department, office, agency, or other governmental entity in the executive branch of state government.

Sec. 576.002. DUTY TO DISCLOSE AND REFRAIN FROM PARTICIPATING. In all cases in which an individual who is a member of the governing board of a state agency has a conflict of interest, the individual:

(1) shall disclose the conflict of interest in writing to the state agency; and

(2) may not participate in the decision of the governing board.

Sec. 576.003. PUBLIC INFORMATION. A written disclosure made under Section 576.002 is public information.

Sec. 576.004. REPORT TO THE TEXAS ETHICS COMMISSION. (a) A state agency that receives a written disclosure under Section 576.002 shall file a copy of the disclosure with the Texas Ethics Commission.

(b) The commission may adopt rules as necessary regarding the disclosure to be filed with the commission.

Sec. 576.005. CRIMINAL PENALTY. (a) An individual commits an offense if the individual knowingly fails to comply with the requirements of Sec. 576.002.

(b) An offense under this section is a Class B misdemeanor.

SECTION 2. This act takes effect September 1, 2015.