Texas 2015 - 84th Regular

Texas House Bill HB23 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Davis of Harris, et al. (Senate Sponsor - Huffman) H.B. No. 23
2		-	(In the Senate - Received from the House April 29, 2015;
3		-	May 6, 2015, read first time and referred to Committee on State
4		-	Affairs; May 22, 2015, reported favorably by the following vote:
5		-	Yeas 9, Nays 0; May 22, 2015, sent to printer.)
6		-	Click here to see the committee vote
	1	+	H.B. No. 23
7	2
8	3
9		-	A BILL TO BE ENTITLED
10	4		AN ACT
11	5		relating to disclosure of certain relationships with local
12	6		government officers and vendors; creating criminal offenses.
13	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	8		SECTION 1. Section 176.001, Local Government Code, is
15	9		amended by amending Subdivisions (1), (2), (2-a), (2-b), (3), and
16	10		(4) and adding Subdivisions (2-c), (2-d), and (7) to read as
17	11		follows:
18	12		(1) "Agent" means a third party who undertakes to
19	13		transact some business or manage some affair for another person by
20	14		the authority or on account of the other person. The term includes
21	15		an employee.
22	16		(2) "Family member" means a person related to another
23	17		person within the first degree by consanguinity or affinity, as
24	18		described by Subchapter B, Chapter 573, Government Code[, except
25	19		that the term does not include a person who is considered to be
26	20		related to another person by affinity only as described by Section
27	21		573.024(b), Government Code].
28	22		(2-a) "Family relationship" means a relationship
29	23		between a person and another person within the third degree by
30	24		consanguinity or the second degree by affinity, as those terms are
31	25		defined by Subchapter B, Chapter 573, Government Code.
32	26		(2-b) "Gift" means a benefit offered by a person,
33	27		including food, lodging, transportation, and entertainment
34	28		accepted as a guest. The term does not include a benefit offered on
35	29		account of kinship or a personal, professional, or business
36	30		relationship independent of the official status of the recipient.
37	31		(2-c) "Goods" means personal property.
38	32		(2-d) [(2-b)] "Investment income" means dividends,
39	33		capital gains, or interest income generated from:
40	34		(A) a personal or business:
41	35		(i) checking or savings account;
42	36		(ii) share draft or share account; or
43	37		(iii) other similar account;
44	38		(B) a personal or business investment; or
45	39		(C) a personal or business loan.
46	40		(3) "Local governmental entity" means a county,
47	41		municipality, school district, charter school, junior college
48	42		district, water district created under Subchapter B, Chapter 49,
49	43		Water Code, or other political subdivision of this state or a local
50	44		government corporation, board, commission, district, or authority
51	45		to which a member is appointed by the commissioners court of a
52	46		county, the mayor of a municipality, or the governing body of a
53	47		municipality. The term does not include an association,
54	48		corporation, or organization of governmental entities organized to
55	49		provide to its members education, assistance, products, or services
56	50		or to represent its members before the legislative, administrative,
57	51		or judicial branches of the state or federal government.
58	52		(4) "Local government officer" means:
59	53		(A) a member of the governing body of a local
60	54		governmental entity;
61	55		(B) a director, superintendent, administrator,
62	56		president, or other person designated as the executive officer of a
63	57		[the] local governmental entity; or
64	58		(C) an agent [employee] of a local governmental
65	59		entity who exercises discretion in the planning, recommending,
66	60		selecting, or contracting of a vendor [with respect to whom the
67	61		local governmental entity has, in accordance with Section 176.005,
68	62		extended the requirements of Sections 176.003 and 176.004].
69	63		(7) "Vendor" means a person who enters or seeks to
70	64		enter into a contract with a local governmental entity. The term
71	65		includes an agent of a vendor. The term includes an officer or
72	66		employee of a state agency when that individual is acting in a
73	67		private capacity to enter into a contract. The term does not
74	68		include a state agency except for Texas Correctional Industries.
75	69		SECTION 2. The heading to Section 176.002, Local Government
76	70		Code, is amended to read as follows:
77	71		Sec. 176.002. APPLICABILITY TO [CERTAIN] VENDORS AND OTHER
78	72		PERSONS.
79	73		SECTION 3. Sections 176.002(a) and (b), Local Government
80	74		Code, are amended to read as follows:
81	75		(a) This chapter applies to a person who is:
82	76		(1) a vendor [enters or seeks to enter into a contract
83	77		with a local governmental entity]; or
84	78		(2) a local government officer [is an agent] of [a
85	79		person described by Subdivision (1) in the person's business with]
86	80		a local governmental entity.
87	81		(b) A person is not subject to the disclosure requirements
88	82		of this chapter if the person is:
89	83		(1) a state, a political subdivision of a state, the
90	84		federal government, or a foreign government; or
91	85		(2) an employee or agent of an entity described by
92	86		Subdivision (1), acting in the employee's or agent's official
93	87		capacity.
94	88		SECTION 4. Section 176.003, Local Government Code, is
95	89		amended by amending Subsections (a) and (a-1) and adding Subsection
96	90		(a-2) to read as follows:
97	91		(a) A local government officer shall file a conflicts
98	92		disclosure statement with respect to a vendor [person described by
99	93		Section 176.002(a)] if:
100	94		(1) the vendor [person] enters into a contract with
101	95		the local governmental entity or the local governmental entity is
102	96		considering entering into a contract with the vendor [person]; and
103	97		(2) the vendor [person]:
104	98		(A) has an employment or other business
105	99		relationship with the local government officer or a family member
106	100		of the officer that results in the officer or family member
107	101		receiving taxable income, other than investment income, that
108	102		exceeds $2,500 during the 12-month period preceding the date that
109	103		the officer becomes aware that:
110	104		(i) a contract between the local
111	105		governmental entity and vendor [described by Subdivision (1)] has
112	106		been executed; or
113	107		(ii) the local governmental entity is
114	108		considering entering into a contract with the vendor [person]; [or]
115	109		(B) has given to the local government officer or
116	110		a family member of the officer one or more gifts that have an
117	111		aggregate value of more than $100 [$250] in the 12-month period
118	112		preceding the date the officer becomes aware that:
119	113		(i) a contract between the local
120	114		governmental entity and vendor [described by Subdivision (1)] has
121	115		been executed; or
122	116		(ii) the local governmental entity is
123	117		considering entering into a contract with the vendor; or
124	118		(C) has a family relationship with the local
125	119		government officer [person].
126	120		(a-1) A local government officer is not required to file a
127	121		conflicts disclosure statement in relation to a gift accepted by
128	122		the officer or a family member of the officer if the gift is:
129	123		(1) [given by a family member of the person accepting
130	124		the gift;
131	125		[(2)] a political contribution as defined by Title 15,
132	126		Election Code; or
133	127		(2) [(3)] food[, lodging, transportation, or
134	128		entertainment] accepted as a guest.
135	129		(a-2) A local government officer is not required to file a
136	130		conflicts disclosure statement under Subsection (a) if the local
137	131		governmental entity or vendor described by that subsection is an
138	132		administrative agency created under Section 791.013, Government
139	133		Code.
140	134		SECTION 5. Section 176.004, Local Government Code, is
141	135		transferred to Section 176.003, Local Government Code,
142	136		redesignated as Section 176.003(e), Local Government Code, and
143	137		amended to read as follows:
144	138		(e) [Sec. 176.004. CONTENTS OF DISCLOSURE STATEMENT.] The
145	139		commission shall adopt the conflicts disclosure statement for local
146	140		government officers for use under this section. The conflicts
147	141		disclosure statement must include:
148	142		(1) a requirement that each local government officer
149	143		disclose:
150	144		(A) an employment or other business relationship
151	145		described by Subsection (a)(2)(A) [Section 176.003(a)], including
152	146		the nature and extent of the relationship; and
153	147		(B) gifts accepted by the local government
154	148		officer and any family member of the officer from a vendor [person
155	149		described by Section 176.002(a)] during the 12-month period
156	150		described by Subsection (a)(2)(B) [Section 176.003(a)(2)(B)] if
157	151		the aggregate value of the gifts[, excluding gifts described by
158	152		Section 176.003(a-1),] accepted by the officer or a family member
159	153		from that vendor exceeds $100 [person exceed $250];
160	154		(2) an acknowledgment from the local government
161	155		officer that:
162	156		(A) the disclosure applies to each family member
163	157		of the officer; and
164	158		(B) the statement covers the 12-month period
165	159		described by Subsection (a)(2)(B) [Section 176.003(a)]; and
166	160		(3) the signature of the local government officer
167	161		acknowledging that the statement is made under oath under penalty
168	162		of perjury.
169	163		SECTION 6. Section 176.006, Local Government Code, is
170	164		amended by amending Subsections (a), (a-1), (b), (c), (d), and (i)
171	165		and adding Subsection (e) to read as follows:
172	166		(a) A vendor [person described by Section 176.002(a)] shall
173	167		file a completed conflict of interest questionnaire if the vendor
174	168		[person] has a business relationship with a local governmental
175	169		entity and:
176	170		(1) has an employment or other business relationship
177	171		with a local government [an] officer of that local governmental
178	172		entity, or a family member of the officer, described by Section
179	173		176.003(a)(2)(A); [or]
180	174		(2) has given a local government [an] officer of that
181	175		local governmental entity, or a family member of the officer, one or
182	176		more gifts with the aggregate value specified by Section
183	177		176.003(a)(2)(B), excluding any gift described by Section
184	178		176.003(a-1); or
185	179		(3) has a family relationship with a local government
186	180		officer of that local governmental entity.
187	181		(a-1) The completed conflict of interest questionnaire must
188	182		be filed with the appropriate records administrator not later than
189	183		the seventh business day after the later of:
190	184		(1) the date that the vendor [person]:
191	185		(A) begins discussions or negotiations to enter
192	186		into a contract with the local governmental entity; or
193	187		(B) submits to the local governmental entity an
194	188		application, response to a request for proposals or bids,
195	189		correspondence, or another writing related to a potential contract
196	190		with the local governmental entity; or
197	191		(2) the date the vendor [person] becomes aware:
198	192		(A) of an employment or other business
199	193		relationship with a local government officer, or a family member of
200	194		the officer, described by Subsection (a); [or]
201	195		(B) that the vendor [person] has given one or
202	196		more gifts described by Subsection (a); or
203	197		(C) of a family relationship with a local
204	198		government officer.
205	199		(b) The commission shall adopt a conflict of interest
206	200		questionnaire for use under this section that requires disclosure
207	201		of a vendor's [person's] business and family relationships with a
208	202		local governmental entity.
209	203		(c) The questionnaire adopted under Subsection (b) must
210	204		require, for the local governmental entity with respect to which
211	205		the questionnaire is filed, that the vendor [person] filing the
212	206		questionnaire:
213	207		(1) describe each employment or business and family
214	208		relationship the vendor [person] has with each local government
215	209		officer of the local governmental entity;
216	210		(2) identify each employment or business relationship
217	211		described by Subdivision (1) with respect to which the local
218	212		government officer receives, or is likely to receive, taxable
219	213		income, other than investment income, from the vendor [person
220	214		filing the questionnaire];
221	215		(3) identify each employment or business relationship
222	216		described by Subdivision (1) with respect to which the vendor
223	217		[person filing the questionnaire] receives, or is likely to
224	218		receive, taxable income, other than investment income, that:
225	219		(A) is received from, or at the direction of, a
226	220		local government officer of the local governmental entity; and
227	221		(B) is not received from the local governmental
228	222		entity; and
229	223		(4) describe each employment or business relationship
230	224		with a corporation or other business entity with respect to which a
231	225		local government officer of the local governmental entity:
232	226		(A) serves as an officer or director; or
233	227		(B) holds an ownership interest of one [10]
234	228		percent or more.
235	229		(d) A vendor [person described by Subsection (a)] shall file
236	230		an updated completed questionnaire with the appropriate records
237	231		administrator not later than the seventh business day after the
238	232		date on which the vendor becomes aware of an event that would make a
239	233		statement in the questionnaire incomplete or inaccurate.
240	234		(e) A person who is both a local government officer and a
241	235		vendor of a local governmental entity is required to file the
242	236		questionnaire required by Subsection (a)(1) only if the person:
243	237		(1) enters or seeks to enter into a contract with the
244	238		local governmental entity; or
245	239		(2) is an agent of a person who enters or seeks to
246	240		enter into a contract with the local governmental entity.
247	241		(i) The validity of a contract between a vendor [person
248	242		described by Section 176.002] and a local governmental entity is
249	243		not affected solely because the vendor [person] fails to comply
250	244		with this section.
251	245		SECTION 7. Section 176.011, Local Government Code, is
252	246		redesignated as 176.0065, Local Government Code, and amended to
253	247		read as follows:
254	248		Sec. 176.0065 [176.011]. MAINTENANCE OF RECORDS. A
255	249		records administrator shall:
256	250		(1) maintain a list of local government officers of
257	251		the local governmental entity and shall make that list available to
258	252		the public and any vendor who may be required to file a conflict of
259	253		interest questionnaire under Section 176.006; and
260	254		(2) maintain the statements and questionnaires that
261	255		are required to be filed under this chapter in accordance with the
262	256		local governmental entity's records retention schedule.
263	257		SECTION 8. Chapter 176, Local Government Code, is amended
264	258		by adding Section 176.013 to read as follows:
265	259		Sec. 176.013. ENFORCEMENT. (a) A local government officer
266	260		commits an offense under this chapter if the officer:
267	261		(1) is required to file a conflicts disclosure
268	262		statement under Section 176.003; and
269	263		(2) knowingly fails to file the required conflicts
270	264		disclosure statement with the appropriate records administrator
271	265		not later than 5 p.m. on the seventh business day after the date on
272	266		which the officer becomes aware of the facts that require the filing
273	267		of the statement.
274	268		(b) A vendor commits an offense under this chapter if the
275	269		vendor:
276	270		(1) is required to file a conflict of interest
277	271		questionnaire under Section 176.006; and
278	272		(2) either:
279	273		(A) knowingly fails to file the required
280	274		questionnaire with the appropriate records administrator not later
281	275		than 5 p.m. on the seventh business day after the date on which the
282	276		vendor becomes aware of the facts that require the filing of the
283	277		questionnaire; or
284	278		(B) knowingly fails to file an updated
285	279		questionnaire with the appropriate records administrator not later
286	280		than 5 p.m. on the seventh business day after the date on which the
287	281		vendor becomes aware of an event that would make a statement in a
288	282		questionnaire previously filed by the vendor incomplete or
289	283		inaccurate.
290	284		(c) An offense under this chapter is:
291	285		(1) a Class C misdemeanor if the contract amount is
292	286		less than $1 million or if there is no contract amount for the
293	287		contract;
294	288		(2) a Class B misdemeanor if the contract amount is at
295	289		least $1 million but less than $5 million; or
296	290		(3) a Class A misdemeanor if the contract amount is at
297	291		least $5 million.
298	292		(d) A local governmental entity may reprimand, suspend, or
299	293		terminate the employment of an employee who knowingly fails to
300	294		comply with a requirement adopted under this chapter.
301	295		(e) The governing body of a local governmental entity may,
302	296		at its discretion, declare a contract void if the governing body
303	297		determines that a vendor failed to file a conflict of interest
304	298		questionnaire required by Section 176.006.
305	299		(f) It is an exception to the application of Subsection (a)
306	300		that the local government officer filed the required conflicts
307	301		disclosure statement not later than the seventh business day after
308	302		the date the officer received notice from the local governmental
309	303		entity of the alleged violation.
310	304		(g) It is an exception to the application of Subsection (b)
311	305		that the vendor filed the required questionnaire not later than the
312	306		seventh business day after the date the vendor received notice from
313	307		the local governmental entity of the alleged violation.
314	308		SECTION 9. The following provisions of the Local Government
315	309		Code are repealed:
316	310		(1) Sections 176.003(c) and (d);
317	311		(2) Section 176.005;
318	312		(3) Sections 176.006(f), (g), and (h); and
319	313		(4) Section 176.007.
320	314		SECTION 10. As soon as practicable after the effective date
321	315		of this Act, the Texas Ethics Commission shall adopt forms to
322	316		implement this Act.
323	317		SECTION 11. (a) Chapter 176, Local Government Code, as
324	318		amended by this Act, applies only to an event requiring disclosure
325	319		that occurs on or after the effective date of this Act. An event
326	320		requiring disclosure that occurs before the effective date of this
327	321		Act is governed by the law applicable to the event immediately
328	322		before the effective date of this Act, and the former law is
329	323		continued in effect for that purpose.
330	324		(b) The repeal by this Act of Sections 176.003(c),
331	325		176.005(c), and 176.006(f), Local Government Code, does not apply
332	326		to an offense committed under those sections before the effective
333	327		date of the repeal. An offense committed before the effective date
334	328		of the repeal is governed by those sections as they existed on the
335	329		date the offense was committed, and the former law is continued in
336	330		effect for that purpose. For purposes of this subsection, an
337	331		offense was committed before the effective date of the repeal if any
338	332		element of the offense occurred before that date.
339	333		SECTION 12. This Act takes effect September 1, 2015.
340		-	* * * * *
	334	+	______________________________ ______________________________
	335	+	President of the Senate Speaker of the House
	336	+	I certify that H.B. No. 23 was passed by the House on April
	337	+	28, 2015, by the following vote: Yeas 143, Nays 0, 2 present, not
	338	+	voting.
	339	+	______________________________
	340	+	Chief Clerk of the House
	341	+	I certify that H.B. No. 23 was passed by the Senate on May 27,
	342	+	2015, by the following vote: Yeas 31, Nays 0.
	343	+	______________________________
	344	+	Secretary of the Senate
	345	+	APPROVED: _____________________
	346	+	Date
	347	+	_____________________
	348	+	Governor