By: Taylor of Collin, et al. S.B. No. 19
A BILL TO BE ENTITLED
AN ACT
relating to the ethics of public officers and related requirements;
creating criminal offenses.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. DISCLOSURE PROVISIONS
SECTION 1.01. Section 572.021, Government Code, is amended
to read as follows:
Sec. 572.021. FINANCIAL STATEMENT REQUIRED. (a) Except as
provided by Section 572.0211, a state officer, a partisan or
independent candidate for an office as an elected officer, and a
state party chair shall file with the commission a verified
financial statement complying with Sections 572.022 through
572.0252.
(b) Each financial statement filed under this subchapter
must be submitted electronically through a secure website
maintained by the commission.
SECTION 1.02. Section 572.023, Government Code, is amended
by amending Subsection (b) and adding Subsection (e) to read as
follows:
(b) The account of financial activity consists of:
(1) a list of all sources of occupational income,
identified by employer, or if self-employed, by the nature of the
occupation, including identification of a person or other
organization from which the individual or a business in which the
individual has a substantial interest received a fee as a retainer
for a claim on future services in case of need, as distinguished
from a fee for services on a matter specified at the time of
contracting for or receiving the fee, if professional or
occupational services are not actually performed during the
reporting period equal to or in excess of the amount of the
retainer, and the category of the amount of the fee;
(2) identification by name and the category of the
number of shares of stock of any business entity held or acquired,
and if sold, the category of the amount of net gain or loss realized
from the sale;
(3) a list of all bonds, notes, and other commercial
paper held or acquired, and if sold, the category of the amount of
net gain or loss realized from the sale;
(4) identification of each source and the category of
the amount of income in excess of $500 derived from each source from
interest, dividends, royalties, and rents;
(5) identification of each guarantor of a loan and
identification of each person or financial institution to whom a
personal note or notes or lease agreement for a total financial
liability in excess of $1,000 existed at any time during the year
and the category of the amount of the liability;
(6) identification by description of all beneficial
interests in real property and business entities held or acquired,
and if sold, the category of the amount of the net gain or loss
realized from the sale;
(7) identification of a person or other organization
from which the individual or the individual's spouse or dependent
children received a gift of anything of value in excess of $250 and
a description of each gift, except:
(A) a gift received from an individual related to
the individual at any time within the second degree by
consanguinity or affinity, as determined under Subchapter B,
Chapter 573;
(B) a political contribution that was reported as
required by Chapter 254, Election Code; and
(C) an expenditure required to be reported by a
person required to be registered under Chapter 305;
(8) identification of the source and the category of
the amount of all income received as beneficiary of a trust, other
than a blind trust that complies with Subsection (c), and
identification of each trust asset, if known to the beneficiary,
from which income was received by the beneficiary in excess of $500;
(9) identification by description and the category of
the amount of all assets and liabilities of a corporation, firm,
partnership, limited partnership, limited liability partnership,
professional corporation, professional association, joint venture,
or other business association in which 50 percent or more of the
outstanding ownership was held, acquired, or sold;
(10) a list of all boards of directors of which the
individual is a member and executive positions that the individual
holds in corporations, firms, partnerships, limited partnerships,
limited liability partnerships, professional corporations,
professional associations, joint ventures, or other business
associations or proprietorships, stating the name of each
corporation, firm, partnership, limited partnership, limited
liability partnership, professional corporation, professional
association, joint venture, or other business association or
proprietorship and the position held;
(11) identification of any person providing
transportation, meals, or lodging expenses permitted under Section
36.07(b), Penal Code, and the amount of those expenses, other than
expenditures required to be reported under Chapter 305;
(12) any corporation, firm, partnership, limited
partnership, limited liability partnership, professional
corporation, professional association, joint venture, or other
business association, excluding a publicly held corporation, in
which both the individual and a person registered under Chapter 305
have an interest;
(13) identification by name and the category of the
number of shares of any mutual fund held or acquired, and if sold,
the category of the amount of net gain or loss realized from the
sale; [and]
(14) identification of each blind trust that complies
with Subsection (c), including:
(A) the category of the fair market value of the
trust;
(B) the date the trust was created;
(C) the name and address of the trustee; and
(D) a statement signed by the trustee, under
penalty of perjury, stating that:
(i) the trustee has not revealed any
information to the individual, except information that may be
disclosed under Subdivision (8); and
(ii) to the best of the trustee's knowledge,
the trust complies with this section;
(15) if the aggregate cost of goods or services sold
under one or more written contracts described by this subdivision
exceeds $10,000 in the year covered by the report, identification
of each written contract, including the name of each party to the
contract:
(A) for the sale of:
(i) goods in the amount of $2,500 or more;
or
(ii) services, including professional
services as defined by Section 2254.002, consulting services as
defined by Section 2254.021, or legal counsel, in the amount of
$5,000 or more;
(B) to which the individual or any business
entity of which the individual has at least a 50 percent ownership
interest is a party; and
(C) with:
(i) a governmental entity; or
(ii) a person who contracts with a
governmental entity, to fulfill one or more of the person's
obligations to the governmental entity under that contract;
(16) if the individual is a member of the legislature
and provides bond counsel services to an issuer, as defined by
Section 1201.002(1), identification of the following for each
issuance for which the individual served as bond counsel:
(A) the amount of the issuance;
(B) the name of the issuer;
(C) the date of the issuance;
(D) the amount of fees paid to the individual,
and whether the amount is:
(i) less than $5,000;
(ii) at least $5,000 but less than $10,000;
(iii) at least $10,000 but less than
$25,000; or
(iv) $25,000 or more; and
(E) the amount of fees paid to the individual's
firm, if applicable, and whether the amount is:
(i) less than $5,000;
(ii) at least $5,000 but less than $10,000;
(iii) at least $10,000 but less than
$25,000; or
(iv) $25,000 or more; and
(17) identification of any other source of earned or
unearned income not reported under another provision of this
subsection, including public benefits or a pension, individual
retirement account, or other retirement plan, and the category of
the amount of income derived from each source.
(e) In this section, "governmental entity" means the state,
a political subdivision of the state, or an agency or department of
the state or a political subdivision of the state.
SECTION 1.03. Section 572.0252, Government Code, is amended
to read as follows:
Sec. 572.0252. INFORMATION ABOUT LEGAL REFERRALS. A state
officer who is an attorney shall report on the financial statement:
(1) making or receiving any referral for compensation
for legal services; [and]
(2) the date the referral is made or received;
(3) the style of the case referred, if applicable; and
(4) the percentage of the legal fee paid or received
that was agreed to between the parties to the referral, or, if the
fee is not a percentage, the agreed amount of the fee paid or
received [the category of the amount of any fee accepted for making
a referral for legal services].
SECTION 1.04. Subchapter B, Chapter 572, Government Code,
is amended by adding Section 572.0295 to read as follows:
Sec. 572.0295. PERSONAL FINANCIAL STATEMENT. (a) A person
who files a report under this chapter may amend the report.
(b) A report that is amended before the eighth day after the
date the original report was filed is considered to have been filed
on the date on which the original report was filed.
(c) A report that is amended on or after the eighth day after
the original report was filed is considered to have been filed on
the date on which the original report was filed if:
(1) the amendment is made before any complaint is
filed with regard to the subject of the amendment; and
(2) the original report was made in good faith and
without an intent to mislead or to misrepresent the information
contained in the report.
SECTION 1.05. Section 572.032, Government Code, is amended
by amending Subsection (a) and adding Subsection (d) to read as
follows:
(a) Financial statements filed under this subchapter are
public records. The commission shall maintain the statements in
separate alphabetical files and in a manner that is accessible to
the public during regular office hours and make the statements
available in a searchable format to the public on the commission's
website not later than the 15th day after the date the statement is
required to be filed or is actually filed, whichever is later.
(d) The commission is not required to continue to make
available on its website a financial statement that may be
destroyed under Subsection (c). The commission may not make
available on its website a financial statement that the commission
is required to destroy under Subsection (c).
ARTICLE 2. CONFLICTS OF INTEREST
SECTION 2.01. Section 141.001, Election Code, is amended by
amending Subsection (a) and adding Subsections (d) and (e) to read
as follows:
(a) To be eligible to be a candidate for, or elected or
appointed to, a public elective office in this state, a person must:
(1) be a United States citizen;
(2) be 18 years of age or older on the first day of the
term to be filled at the election or on the date of appointment, as
applicable;
(3) have not been determined by a final judgment of a
court exercising probate jurisdiction to be:
(A) totally mentally incapacitated; or
(B) partially mentally incapacitated without the
right to vote;
(4) have not been finally convicted of a felony from
which the person has not been pardoned or otherwise released from
the resulting disabilities;
(5) have resided continuously in the state for 12
months and in the territory from which the office is elected for six
months immediately preceding the following date:
(A) for a candidate whose name is to appear on a
general primary election ballot, the date of the regular filing
deadline for a candidate's application for a place on the ballot;
(B) for an independent candidate, the date of the
regular filing deadline for a candidate's application for a place
on the ballot;
(C) for a write-in candidate, the date of the
election at which the candidate's name is written in;
(D) for a party nominee who is nominated by any
method other than by primary election, the date the nomination is
made; and
(E) for an appointee to an office, the date the
appointment is made; [and]
(6) not be required to be registered as a lobbyist
under Chapter 305, Government Code; and
(7) satisfy any other eligibility requirements
prescribed by law for the office.
(d) Except as provided by Section 7.103(c), Education Code,
Subsection (a)(6) does not apply to:
(1) an office of a political subdivision with a
population of 150,000 or less, other than the office of presiding
officer of the governing body of the political subdivision,
provided that the officeholder does not receive a salary or wage for
that office; or
(2) the office of the presiding officer of the
governing body of a political subdivision with a population of
50,000 or less, provided that the presiding officer does not
receive a salary or wage for that office.
(e) In Subsection (d), a presiding officer or other
officeholder is not considered to have received a salary or wage if
the officeholder refuses to accept a salary or wage offered or
budgeted for that office.
SECTION 2.02. Subchapter A, Chapter 141, Election Code, is
amended by adding Section 141.005 to read as follows:
Sec. 141.005. DRUG TESTING REQUIREMENT FOR PERSONS ELECTED
TO PUBLIC OFFICE. (a) At the time a person files for a public
elective office, the person must submit to a drug test to determine
if the person has used a controlled substance, as that term is
defined by Section 481.002, Health and Safety Code.
(b) The authority responsible for determining eligibility
for the office to which the person is elected shall administer a
drug test required under this section at the person's expense.
(c) After completion of a drug test required under this
section, the authority that administered the drug test shall:
(1) obtain a waiver of confidentiality from the person
with respect to the results of the drug test; and
(2) submit the results of the drug test to the Texas
Ethics Commission.
(d) The Texas Ethics Commission shall publish the results of
a drug test conducted under this section on the commission's
Internet website not later than 30 days after receiving the
results.
(e) The secretary of state shall adopt rules to administer
this section.
SECTION 2.03. Subchapter A, Chapter 305, Government Code,
is amended by adding Section 305.0031 to read as follows:
Sec. 305.0031. CERTAIN ELECTED OFFICERS MAY NOT REGISTER.
(a) A member of Congress, a member of the legislature, or a holder
of a statewide office may not register under this chapter.
(b) A registration under this chapter expires on the date a
person takes office as a member of Congress, a member of the
legislature, or a holder of a statewide office.
SECTION 2.04. Sections 305.0061(a), (b), and (c),
Government Code, are amended to read as follows:
(a) If a registrant or a person on the registrant's behalf
and with the registrant's consent or ratification makes
expenditures that exceed $50 [60 percent of the amount of the
legislative per diem in] a day for transportation or lodging for a
member of the legislative or executive branch or for the immediate
family of a member of the legislative or executive branch, the
registrant shall also state the following on the report filed under
Section 305.006:
(1) the name of the member of the legislative or
executive branch in whose behalf the expenditure is made;
(2) the place and date of the transportation or
lodging; and
(3) the purpose of the transportation or lodging.
(b) If a registrant or a person on the registrant's behalf
and with the registrant's consent or ratification makes
expenditures that exceed $50 [60 percent of the amount of the
legislative per diem in] a day for food and beverages for a member
of the legislative or executive branch or for the immediate family
of a member of the legislative or executive branch or makes
expenditures that exceed $50 [60 percent of the amount of the
legislative per diem in] a day for entertainment for a member of the
legislative or executive branch or for the immediate family of a
member of the legislative or executive branch, the registrant shall
also state the following on the report filed under Section 305.006:
(1) the name of the member of the legislative or
executive branch in whose behalf the expenditure is made;
(2) the place and date of the expenditure; and
(3) the amount of the expenditure by the appropriate
category of the amount, as determined by the commission.
(c) If a registrant or a person on the registrant's behalf
and with the registrant's consent or ratification gives to a member
of the legislative or executive branch, or to the immediate family
of a member of the legislative or executive branch, a gift or an
award or memento, the value of which exceeds $50 per gift, award, or
memento, the registrant shall also state the following on the
report filed under Section 305.006:
(1) the name of the member of the legislative or
executive branch in whose behalf the expenditure is made;
(2) a general description of the gift, award, or
memento; and
(3) the amount of the expenditure by the appropriate
category of the amount, as determined by the commission.
SECTION 2.05. Section 305.0061, Government Code, is amended
by adding Subsection (h) to read as follows:
(h) If more than one registrant or persons acting on behalf
of more than one registrant and with each registrant's consent or
ratification collaborate to make an expenditure described by
Section 305.006(b) together, each registrant shall report the total
value of the shared expenditure as required by Subsection (a), (b),
or (c), if the total value of the shared expenditure exceeds the
amount provided under Subsection (a), (b), or (c).
SECTION 2.06. Subchapter C, Chapter 572, Government Code,
is amended by adding Sections 572.062 and 572.064 to read as
follows:
Sec. 572.062. FORMER LEGISLATOR: LOBBYING RESTRICTED;
CRIMINAL OFFENSE. (a) In this section:
(1) "Administrative action," "communicates directly
with," "legislation," "member of the executive branch," and "member
of the legislative branch" have the meanings assigned by Section
305.002.
(2) "Legislative cycle" means the two-year period
beginning on the first day of a regular legislative session and
ending on the day before the first day of the succeeding regular
legislative session.
(b) Except as provided by Subsection (c), a former member of
the legislature may not engage in activities that require
registration under Chapter 305 before the end of the legislative
cycle following the legislative cycle in which the former member
last served as a member of the legislature.
(c) Subsection (b) does not apply to a former member who
does not receive compensation other than reimbursement for actual
expenses for communicating directly with a member of the
legislative or executive branch to influence legislation or
administrative action.
(d) A former member who violates this section commits an
offense. An offense under this section is a Class A misdemeanor.
Sec. 572.064. COMPENSATION FROM FINANCIAL INSTITUTIONS
PROHIBITED; CRIMINAL OFFENSE. (a) In this section, "financial
institution" means a bank, credit union, or savings and loan
association.
(b) A member of the legislature or an executive officer
elected in a statewide election may not receive any monetary
compensation or other benefit from a position associated with a
financial institution.
(c) A person commits an offense if the person violates this
section. An offense under this section is a Class B misdemeanor.
SECTION 2.07. Chapter 601, Government Code, is amended by
adding Section 601.009 to read as follows:
Sec. 601.009. ELECTED OFFICER MAY NOT BE REGISTERED
LOBBYIST. (a) A person may not qualify for a public elective
office if the person is required to be registered as a lobbyist
under Chapter 305.
(b) Except as provided by Section 7.103(c), Education Code,
Subsection (a) does not apply to:
(1) an office for which the federal or state
constitution prescribes exclusive qualification requirements;
(2) an office of a political subdivision with a
population of 150,000 or less, other than the office of presiding
officer of the governing body of the political subdivision,
provided that the officeholder does not receive a salary or wage for
that office; or
(3) the office of the presiding officer of the
governing body of a political subdivision with a population of
50,000 or less, provided that the presiding officer does not
receive a salary or wage for that office.
(c) In Subsection (b), a presiding officer or other
officeholder is not considered to have received a salary or wage if
the officeholder refuses to accept a salary or wage offered or
budgeted for that office.
ARTICLE 3. ETHICS COMMISSION REPORTS
SECTION 3.01. Section 571.0771(a), Government Code, is
amended to read as follows:
(a) A statement, registration, or report required that is
filed with the commission is not considered to be late for purposes
of any applicable civil or criminal penalty for late filing of the
statement, registration, or report if:
(1) any error or omission in the statement,
registration, or report as originally filed was made in good faith;
and
(2) not later than the 14th business day after the date
the person filing the statement, registration, or report learns
that the statement, registration, or report as originally filed is
inaccurate or incomplete, the person files:
(A) a corrected or amended statement,
registration, or report; and
(B) an affidavit stating that the error or
omission in the original statement, registration, or report was
made in good faith.
ARTICLE 4. VACANCY ON CERTAIN CONVICTIONS
SECTION 4.01. Chapter 301, Government Code, is amended by
adding Subchapter Z to read as follows:
SUBCHAPTER Z. MISCELLANEOUS PROVISIONS
Sec. 301.901. VACANCY ON FINAL FELONY CONVICTION OF MEMBER
OF LEGISLATURE. A member of the legislature convicted of a felony
vacates the member's office on the date the conviction becomes
final.
ARTICLE 5. REPEALER
SECTION 5.01. Section 305.0061(g), Government Code, is
repealed.
SECTION 5.02. Section 572.032(b), Government Code, is
repealed.
ARTICLE 6. TRANSITION; EFFECTIVE DATE
SECTION 6.01. The changes in law made by this Act in
amending Section 141.001(a), Election Code, and in adding Section
601.009, Government Code, apply only to the eligibility and
qualification requirements for a candidate, officer, or employee
whose term of office or employment will begin on or after the
effective date of this Act. The eligibility and qualification
requirements for a candidate, officer, or employee whose term of
office or employment will begin before the effective date of this
Act are governed by the law in effect immediately before the
effective date of this Act, and the former law is continued in
effect for that purpose.
SECTION 6.02. The changes in law made by this Act to Section
305.0061, Government Code, apply only to a gift, award, or memento
given to or expenditures for transportation, lodging, food,
beverages, or entertainment made for a member of the legislative or
executive branch or the immediate family of a member of the
legislative or executive branch on or after September 1, 2015. A
gift, award, or memento given to or an expenditure for
transportation, lodging, food, beverages, or entertainment made
for a member of the legislative or executive branch or the immediate
family of a member of the legislative or executive branch before
September 1, 2015, is governed by the law in effect on the date the
gift, award, or memento was given, or the date the expenditure for
transportation, lodging, food, beverages, or entertainment was
made, and the former law is continued in effect for that purpose.
SECTION 6.03. (a) Except as otherwise provided by this
section, this Act takes effect January 10, 2017.
(b) Section 6.02 of this Act and the amendment of Section
305.0061, Government Code, by this Act take effect September 1,
2015.