83R1119 ATP-D By: Davis S.B. No. 932 A BILL TO BE ENTITLED AN ACT relating to ethics and accountability of certain public employees, public officers, political contributors, state contractors, and grant recipients; providing penalties. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. The heading to Subchapter D, Chapter 253, Election Code, is amended to read as follows: SUBCHAPTER D. CORPORATIONS, [AND] LABOR ORGANIZATIONS, AND CERTAIN OTHER PERSONS SECTION 2. Subchapter D, Chapter 253, Election Code, is amended by adding Sections 253.105 and 253.106 to read as follows: Sec. 253.105. CONTRIBUTION BY STATE CONTRACTOR. (a) This section applies to an individual who submits a competitive bid or proposal for a contract with a state agency as: (1) an individual; (2) a partner or owner of a privately held business; or (3) a board member or executive officer of a business. (b) An individual described by Subsection (a) may not make a political contribution to a candidate for a statewide office, statewide officeholder, or specific-purpose committee for supporting or opposing a candidate for statewide office or assisting a statewide officeholder during the period: (1) beginning on the date the bid or proposal is submitted; and (2) ending on: (A) the date the contract is awarded to another person; or (B) if the individual or the individual's business is awarded the contract, the 30th day after the date the contract is awarded. Sec. 253.106. CONTRIBUTION BY COMMITTEE ESTABLISHED OR ADMINISTERED BY STATE CONTRACTOR. (a) This section applies to a corporation that submits a competitive bid or proposal for a contract with a state agency. (b) A general-purpose committee established or administered by a corporation described by Subsection (a) may not make a political contribution to a candidate for a statewide office, statewide officeholder, or specific-purpose committee for supporting or opposing a candidate for statewide office or assisting a statewide officeholder during the period: (1) beginning on the date the bid or proposal is submitted; and (2) ending on: (A) the date the contract is awarded to another person; or (B) if the corporation is awarded the contract, the 30th day after the date the contract is awarded. SECTION 3. Chapter 253, Election Code, is amended by adding Subchapter G to read as follows: SUBCHAPTER G. APPOINTED OFFICERS Sec. 253.201. DEFINITIONS. In this subchapter: (1) "Appointed officer" means: (A) the secretary of state; (B) an individual appointed with the advice and consent of the senate to the governing board of a state-supported institution of higher education; or (C) an officer of a state agency who is appointed for a term of office specified by the Texas Constitution or a statute of this state. (2) "Election cycle" means the period beginning on January 1 of an odd-numbered year and ending on December 31 of the following even-numbered year. Sec. 253.202. CONTRIBUTION LIMIT. (a) An appointed officer may not knowingly make or authorize political contributions that in the aggregate exceed $10,000 in an election cycle. (b) A contribution by the spouse of an appointed officer is considered to be a contribution by the officer. Sec. 253.203. CERTAIN DIRECT CAMPAIGN EXPENDITURES CONSIDERED CONTRIBUTION TO CANDIDATE. For purposes of Section 253.202, a direct campaign expenditure is considered to be a campaign contribution to a candidate if it is made with the cooperation or prior consent of, in consultation with, or at the suggestion of: (1) the candidate; (2) a specific-purpose committee for supporting the candidate or opposing the candidate's opponent; or (3) a person acting with the candidate's knowledge and consent. SECTION 4. Subchapter F, Chapter 401, Government Code, is amended by adding Sections 401.106 and 401.107 to read as follows: Sec. 401.106. MANDATORY RECORDS RETENTION SCHEDULE. The records retention schedule adopted by the office of the governor in compliance with Section 441.185 must: (1) apply to all offices within the office of the governor and all trusteed programs within the office of the governor; and (2) provide that all records must be retained for at least 30 days after the record is created or altered. Sec. 401.107. REPORT OF FUNDING. (a) The governor shall post on the office of the governor's Internet website information relating to each fund administered by the office of the governor, including by any office within the office of the governor and as any trusteed program within the office of the governor. (b) Information posted under this section must include: (1) the amount of any disbursement or grant from the fund; (2) to whom any disbursements or grants from the fund were made; and (3) the purpose of the disbursement or grant. (c) The information must be updated at least quarterly. SECTION 5. Section 481.078, Government Code, is amended by adding Subsection (n) to read as follows: (n) Not later than January 1 of each year, the governor shall submit to the legislature and post on the office of the governor's Internet website a report that includes the following information regarding the fund for the preceding three state fiscal years: (1) the total number and amount of grants made from the fund; and (2) the name of each grant recipient and the amount of the grant awarded to the recipient. SECTION 6. Section 572.002, Government Code, is amended by adding Subdivision (5-a) to read as follows: (5-a) "Member of the governor's executive staff" means a person employed by the governor acting in the governor's official capacity whose regular job duties include: (A) formulating policy or testifying before and meeting with members of the legislature; or (B) supervising other employees in the governor's office whose regular job duties include those described by Paragraph (A). SECTION 7. Section 572.021, Government Code, is amended to read as follows: Sec. 572.021. FINANCIAL STATEMENT REQUIRED. Except as provided by Section 572.0211, a state officer, a partisan or independent candidate for an office as an elected officer, a member of the governor's executive staff, and a state party chair shall file with the commission a verified financial statement complying with Sections 572.022 through 572.0252. SECTION 8. The heading to Section 572.026, Government Code, is amended to read as follows: Sec. 572.026. FILING DATES FOR STATE OFFICERS, GOVERNOR'S EXECUTIVE STAFF, AND STATE PARTY CHAIRS. SECTION 9. Section 572.026, Government Code, is amended by amending Subsection (a) and adding Subsection (e) to read as follows: (a) Not later than April 30 each year, a state officer, a member of the governor's executive staff, or a state party chair shall file the financial statement as required by this subchapter. (e) An individual who is employed as a member of the governor's executive staff shall file a financial statement not later than the 45th day after the date the individual assumes the duties of the position. The governor or representative of the governor shall immediately notify the commission of the employment of a member of the governor's executive staff. SECTION 10. The heading to Section 572.054, Government Code, is amended to read as follows: Sec. 572.054. REPRESENTATION BY FORMER OFFICER OR EMPLOYEE OF GOVERNOR OR REGULATORY AGENCY RESTRICTED; CRIMINAL OFFENSE. SECTION 11. Section 572.054, Government Code, is amended by adding Subsections (b-1) and (b-2) to read as follows: (b-1) A member of the governor's executive staff who ceases employment with the governor may not make any communication to or appearance before the governor or a member of the governor's executive staff, if the communication or appearance is made with the intent to influence and on behalf of any person in connection with any matter on which the person seeks official action, before the second anniversary of the date the employment ceased. (b-2) A member of the governor's executive staff who before employment with the governor represented a person or received compensation for services rendered on behalf of a person on a particular matter may not be involved with the particular matter as a member of the governor's executive staff before the second anniversary of the date the member begins employment with the governor. SECTION 12. Subchapter C, Chapter 572, Government Code, is amended by adding Section 572.062 to read as follows: Sec. 572.062. SOLICITATION OF OR RECOMMENDATIONS REGARDING POLITICAL CONTRIBUTIONS. (a) In this section, "political contribution" has the meaning assigned by Section 251.001, Election Code. (b) An appointed officer of a regulatory agency may not, on behalf of the officer or another person, solicit a political contribution from or recommend the making of a political contribution by a person regulated by the regulatory agency. SECTION 13. (a) Sections 253.105 and 253.106, Election Code, as added by this Act, apply only to a competitive bid or proposal for a contract with a state agency for which notice is given on or after September 1, 2013. A bid or proposal for a contract for which notice is given before September 1, 2013, is governed by the law in effect when the notice was given, and the former law is continued in effect for that purpose. (b) Subchapter G, Chapter 253, Election Code, as added by this Act, applies only to a political contribution or direct campaign expenditure made on or after September 1, 2013. A political contribution or direct campaign expenditure made before September 1, 2013, is governed by the law in effect at the time the contribution or expenditure was made and is not aggregated with political contributions or direct campaign expenditures made on or after that date. (c) The changes in law made by this Act to Subchapter B, Chapter 572, Government Code, requiring a member of the governor's executive staff to file a personal financial statement apply beginning January 1, 2014. A member of the governor's executive staff is not required to include financial activity occurring before January 1, 2014, in a personal financial statement under that subchapter. A member of the governor's executive staff shall file the first personal financial statement as required by this Act on or before April 30, 2015. (d) Section 572.054(b-1), Government Code, as added by this Act, applies only to a member of the governor's executive staff who ceases employment with the governor on or after September 1, 2013. A member of the governor's executive staff who ceases employment with the governor before September 1, 2013, is governed by the law in effect when the member ceased employment, and the former law is continued in effect for that purpose. (e) Section 572.054(b-2), Government Code, as added by this Act, applies only to a member of the governor's executive staff who begins employment with the governor on or after September 1, 2013. A member of the governor's executive staff who begins employment with the governor before September 1, 2013, is governed by the law in effect when the member began employment, and the former law is continued in effect for that purpose. SECTION 14. This Act takes effect September 1, 2013.