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A BILL TO BE ENTITLED
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AN ACT
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relating to the disclosure by vendors of gifts to certain local |
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government officers and of certain relationships with local |
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government officers; creating an offense. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle C, Title 5, Local Government Code, is |
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amended by adding Chapter 176A to read as follows: |
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CHAPTER 176A. DISCLOSURE OF GIFTS TO CERTAIN LOCAL GOVERNMENT |
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OFFICERS |
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Sec. 176A.001. DEFINITIONS. In this chapter: |
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(1) "Agent," "commission," "family member," "goods," |
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and "local governmental entity" have the meanings assigned by |
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Section 176.001. |
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(2) "Entertainment" includes transportation to, |
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lodging for, and attendance at a function, event, or performance |
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that: |
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(A) a local government officer accepts as the |
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guest of a vendor; |
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(B) is not required to be reported under law |
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other than under this chapter; and |
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(C) is not prohibited by law. |
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(3) "Gift" means a benefit, including entertainment, |
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offered by a vendor and accepted by a local government officer. The |
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term does not include: |
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(A) a benefit offered based on kinship or a |
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personal, professional, or business relationship independent of |
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the official status of the local government officer accepting the |
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benefit; or |
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(B) food or beverages accepted by a local |
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government officer as the guest of a vendor. |
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(4) "Local government officer" means: |
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(A) a member of the governing body of a local |
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governmental entity; or |
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(B) a director, superintendent, administrator, |
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president, or other executive officer of a local governmental |
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entity who exercises discretion in the planning, recommending, |
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selecting, or contracting of a vendor. |
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(5) "Vendor" means a person or agent of the person who |
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enters or seeks to enter into a contract with a local governmental |
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entity for the provision of goods or services. |
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Sec. 176A.002. VENDOR DISCLOSURE FORM REQUIRED. (a) Not |
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later than the 15th day of the first month of each calendar quarter, |
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a vendor shall submit a completed disclosure form created by the |
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commission to a local governmental entity if the vendor: |
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(1) has a contract or is seeking to enter into a |
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contract with the local governmental entity; and |
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(2) has given one or more gifts during the preceding |
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calendar quarter with an aggregate value of more than $100 to a |
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local government officer of the local governmental entity. |
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(b) A disclosure form submitted by a vendor under this |
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section must include: |
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(1) a statement that the vendor: |
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(A) has a contract or is seeking to enter into a |
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contract with the local governmental entity; and |
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(B) has given one or more gifts during the |
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preceding calendar quarter with an aggregate value of more than |
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$100 to a local government officer of the local governmental |
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entity; and |
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(2) the dollar amount of the gift or gifts described by |
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Subdivision (1)(B) given to a local government officer, stated as a |
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total amount for each officer that accepted a gift from the vendor. |
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(c) This section does not apply to a gift given by a vendor |
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directly as part of the vendor's sponsorship of or contribution to |
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an event that benefits a nonprofit organization, if the nonprofit |
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organization is exempt from federal income taxation under Section |
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501(a), Internal Revenue Code of 1986, by being listed as an exempt |
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entity under Section 501(c)(3) of that code. |
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Sec. 176A.003. EXTENSION OF DEADLINE TO SUBMIT VENDOR |
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DISCLOSURE FORM. (a) A local governmental entity shall mail |
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written notice to a vendor if the vendor has not submitted a |
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disclosure form as required to be submitted under this chapter as |
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soon as practicable after the local governmental entity discovers |
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the omission. |
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(b) Notwithstanding Section 176A.002(a), on notification by |
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the local governmental entity under this section, the deadline for |
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the vendor to submit the disclosure form is extended to the 30th day |
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after the date the notice is mailed. |
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Sec. 176A.004. LIST OF GOVERNMENT OFFICERS. A local |
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governmental entity shall: |
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(1) create a complete list of all local government |
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officers of the local governmental entity; |
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(2) update the list as needed to ensure the accuracy of |
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the list; |
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(3) provide the most recently updated list to each |
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vendor that enters or seeks to enter into a contract with the local |
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governmental entity; and |
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(4) post and maintain the most recently updated list |
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on the local governmental entity's Internet website, if the local |
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governmental entity maintains a website. |
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Sec. 176A.005. PROHIBITION. (a) This section does not |
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apply to a solicitation for contributions authorized by the |
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Election Code. |
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(b) A local government officer may not solicit from a vendor |
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a gift on behalf of the local government officer, a family member of |
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the local government officer, or another person, including a local |
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governmental entity or nonprofit charitable organization. |
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Sec. 176A.006. OFFENSE. (a) A vendor commits an offense if |
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the vendor: |
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(1) is required to submit a disclosure form under |
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Section 176A.002; and |
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(2) knowingly fails to submit the disclosure form with |
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the appropriate local governmental entity before the 31st day after |
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the date the local governmental entity mails notice to the vendor as |
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required by Section 176A.003, if that notice is mailed. |
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(b) An offense under this section is a Class C misdemeanor. |
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(c) It is a defense to prosecution under this section that |
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the local governmental entity to which the vendor is required to |
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submit the disclosure form failed to create or update a complete |
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list of all local government officers of the local governmental |
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entity required by Section 176A.004. |
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Sec. 176A.007. COMMISSION ADVISORY OPINION. (a) The |
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commission may prepare a written advisory opinion answering the |
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request of a person subject to this chapter for an advisory opinion |
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about the application of this chapter to the person regarding a |
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specified existing or hypothetical factual situation. |
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(b) A request for an advisory opinion must be made in |
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writing to the commission. |
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(c) If the commission prepares an advisory opinion under |
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this section, Sections 571.093, 571.096, and 571.097, Government |
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Code, apply to the request and advisory opinion in the same manner |
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as those sections apply to a request or advisory opinion issued |
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under Section 571.091 of that code. |
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Sec. 176A.008. COMMISSION RULES. (a) The commission shall |
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adopt rules necessary to implement this chapter. |
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(b) The commission by rule shall prescribe the disclosure |
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form required to be submitted under Section 176A.002. |
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SECTION 2. Sections 176.003(a) and (e), Local Government |
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Code, are amended to read as follows: |
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(a) A local government officer shall file a conflicts |
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disclosure statement with respect to a vendor if: |
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(1) the vendor enters into a contract with the local |
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governmental entity [or the local governmental entity is
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considering entering into a contract with the vendor]; and |
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(2) the vendor: |
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(A) has an employment or other business |
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relationship with the local government officer or a family member |
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of the officer that results in the officer or family member |
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receiving taxable income, other than investment income, that |
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exceeds $2,500 during the 12-month period preceding the date that |
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the officer becomes aware that[:
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[(i)] a contract between the local |
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governmental entity and vendor has been executed; or |
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[(ii)
the local governmental entity is
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considering entering into a contract with the vendor;] |
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(B) [has given to the local government officer or
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a family member of the officer one or more gifts that have an
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aggregate value of more than $100 in the 12-month period preceding
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the date the officer becomes aware that:
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[(i)
a contract between the local
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governmental entity and vendor has been executed; or
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[(ii)
the local governmental entity is
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considering entering into a contract with the vendor; or
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[(C)] has a family relationship with the local |
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government officer. |
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(e) The commission shall adopt the conflicts disclosure |
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statement for local government officers for use under this |
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section. The conflicts disclosure statement must include: |
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(1) a requirement that each local government officer |
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disclose[:
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[(A)] an employment or other business |
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relationship described by Subsection (a)(2)(A), including the |
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nature and extent of the relationship[; and
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[(B)
gifts accepted by the local government
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officer and any family member of the officer from a vendor during
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the 12-month period described by Subsection (a)(2)(B) if the
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aggregate value of the gifts accepted by the officer or a family
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member from that vendor exceeds $100]; |
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(2) an acknowledgment from the local government |
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officer that: |
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(A) the disclosure applies to each family member |
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of the officer; and |
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(B) the statement covers the 12-month period |
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described by Subsection (a)(2)(A) [(a)(2)(B)]; and |
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(3) the signature of the local government officer |
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acknowledging that the statement is made under oath under penalty |
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of perjury. |
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SECTION 3. Sections 176.006(a) and (a-1), Local Government |
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Code, are amended to read as follows: |
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(a) A vendor shall file a completed conflict of interest |
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questionnaire if the vendor has [a business relationship with a
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local governmental entity and]: |
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(1) [has] an employment or other business relationship |
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with a local government officer of that local governmental entity, |
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or a family member of the officer, described by Section |
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176.003(a)(2)(A); or |
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(2) [has given a local government officer of that
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local governmental entity, or a family member of the officer, one or
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more gifts with the aggregate value specified by Section
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176.003(a)(2)(B), excluding any gift described by Section
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176.003(a-1); or
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[(3) has] a family relationship with a local |
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government officer of that local governmental entity. |
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(a-1) The completed conflict of interest questionnaire must |
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be filed with the appropriate records administrator not later than |
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the seventh business day after the later of: |
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(1) the date that the vendor: |
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(A) begins discussions or negotiations to enter |
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into a contract with the local governmental entity; or |
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(B) submits to the local governmental entity an |
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application, response to a request for proposals or bids, |
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correspondence, or another writing related to a potential contract |
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with the local governmental entity; or |
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(2) the date the vendor becomes aware: |
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(A) of an employment or other business |
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relationship with a local government officer, or a family member of |
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the officer, described by Subsection (a); or |
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(B) [that the vendor has given one or more gifts
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described by Subsection (a); or
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[(C)] of a family relationship with a local |
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government officer. |
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SECTION 4. Section 176.009, Local Government Code, is |
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amended to read as follows: |
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Sec. 176.009. POSTING ON INTERNET. [(a)] A local |
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governmental entity that maintains an Internet website shall post |
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each statement and questionnaire [provide access to the statements
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and to questionnaires required to be] filed under this chapter on |
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the [that] website not later than the 30th day after the date the |
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statement or questionnaire is filed. The local governmental entity |
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shall maintain the posting at least until the date the entity is no |
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longer required to maintain the statement or questionnaire under |
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Section 176.0065(2). [This subsection does not require a local
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governmental entity to maintain an Internet website.] |
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SECTION 5. The following provisions of the Local Government |
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Code are repealed: |
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(1) Section 176.001(2-b); |
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(2) Sections 176.003(a-1) and (a-2); and |
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(3) Section 176.013(e). |
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SECTION 6. A local governmental entity, as defined by |
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Chapter 176A, Local Government Code, as added by this Act, shall |
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create and make available the complete list of all local government |
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officers required by Section 176A.004 of that chapter as soon as |
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practicable after the effective date of this Act, but not later than |
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January 1, 2018. |
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SECTION 7. The Texas Ethics Commission shall adopt rules |
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necessary to implement Chapter 176A, Local Government Code, as |
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added by this Act, and shall prescribe the disclosure form required |
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to be submitted under that chapter as soon as practicable after the |
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effective date of this Act, but not later than January 1, 2018. |
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SECTION 8. The changes in law made by Chapter 176, Local |
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Government Code, as amended by this Act, apply only to an event |
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requiring disclosure that occurs on or after the effective date of |
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this Act. An event requiring disclosure that occurs before the |
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effective date of this Act is governed by the law applicable to the |
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event immediately before the effective date of this Act, and the |
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former law is continued in effect for that purpose. |
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SECTION 9. The changes in law made by Chapter 176A, Local |
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Government Code, as added by this Act, apply only to an event |
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requiring disclosure that occurs on or after January 1, 2018. |
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SECTION 10. This Act takes effect immediately if it |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary for immediate |
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effect, this Act takes effect September 1, 2017. |