Texas 2017 - 85th Regular

Texas Senate Bill SB501 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	By: Taylor of Collin S.B. No. 501
2		-	(In the Senate - Filed January 25, 2017; January 30, 2017,
3		-	read first time and referred to Committee on State Affairs;
4		-	February 2, 2017, reported favorably by the following vote:
5		-	Yeas 9, Nays 0; February 2, 2017, sent to printer.)
6		-	Click here to see the committee vote
	1	+	By: Taylor of Collin, et al. S.B. No. 501
7	2
8	3
9	4		A BILL TO BE ENTITLED
10	5		AN ACT
11	6		relating to the disclosure of certain contracts, services, and
12	7		compensation in personal financial statements filed by public
13	8		officers and candidates.
14	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	10		SECTION 1. Section 572.023, Government Code, is amended by
16	11		amending Subsection (b) and adding Subsections (e) and (f) to read
17	12		as follows:
18	13		(b) The account of financial activity consists of:
19	14		(1) a list of all sources of occupational income,
20	15		identified by employer, or if self-employed, by the nature of the
21	16		occupation, including identification of a person or other
22	17		organization from which the individual or a business in which the
23	18		individual has a substantial interest received a fee as a retainer
24	19		for a claim on future services in case of need, as distinguished
25	20		from a fee for services on a matter specified at the time of
26	21		contracting for or receiving the fee, if professional or
27	22		occupational services are not actually performed during the
28	23		reporting period equal to or in excess of the amount of the
29	24		retainer, and the category of the amount of the fee;
30	25		(2) identification by name and the category of the
31	26		number of shares of stock of any business entity held or acquired,
32	27		and if sold, the category of the amount of net gain or loss realized
33	28		from the sale;
34	29		(3) a list of all bonds, notes, and other commercial
35	30		paper held or acquired, and if sold, the category of the amount of
36	31		net gain or loss realized from the sale;
37	32		(4) identification of each source and the category of
38	33		the amount of income in excess of $500 derived from each source from
39	34		interest, dividends, royalties, and rents;
40	35		(5) identification of each guarantor of a loan and
41	36		identification of each person or financial institution to whom a
42	37		personal note or notes or lease agreement for a total financial
43	38		liability in excess of $1,000 existed at any time during the year
44	39		and the category of the amount of the liability;
45	40		(6) identification by description of all beneficial
46	41		interests in real property and business entities held or acquired,
47	42		and if sold, the category of the amount of the net gain or loss
48	43		realized from the sale;
49	44		(7) identification of a person or other organization
50	45		from which the individual or the individual's spouse or dependent
51	46		children received a gift of anything of value in excess of $250 and
52	47		a description of each gift, except:
53	48		(A) a gift received from an individual related to
54	49		the individual at any time within the second degree by
55	50		consanguinity or affinity, as determined under Subchapter B,
56	51		Chapter 573;
57	52		(B) a political contribution that was reported as
58	53		required by Chapter 254, Election Code; and
59	54		(C) an expenditure required to be reported by a
60	55		person required to be registered under Chapter 305;
61	56		(8) identification of the source and the category of
62	57		the amount of all income received as beneficiary of a trust, other
63	58		than a blind trust that complies with Subsection (c), and
64	59		identification of each trust asset, if known to the beneficiary,
65	60		from which income was received by the beneficiary in excess of $500;
66	61		(9) identification by description and the category of
67	62		the amount of all assets and liabilities of a corporation, firm,
68	63		partnership, limited partnership, limited liability partnership,
69	64		professional corporation, professional association, joint venture,
70	65		or other business association in which 50 percent or more of the
71	66		outstanding ownership was held, acquired, or sold;
72	67		(10) a list of all boards of directors of which the
73	68		individual is a member and executive positions that the individual
74	69		holds in corporations, firms, partnerships, limited partnerships,
75	70		limited liability partnerships, professional corporations,
76	71		professional associations, joint ventures, or other business
77	72		associations or proprietorships, stating the name of each
78	73		corporation, firm, partnership, limited partnership, limited
79	74		liability partnership, professional corporation, professional
80	75		association, joint venture, or other business association or
81	76		proprietorship and the position held;
82	77		(11) identification of any person providing
83	78		transportation, meals, or lodging expenses permitted under Section
84	79		36.07(b), Penal Code, and the amount of those expenses, other than
85	80		expenditures required to be reported under Chapter 305;
86	81		(12) any corporation, firm, partnership, limited
87	82		partnership, limited liability partnership, professional
88	83		corporation, professional association, joint venture, or other
89	84		business association, excluding a publicly held corporation, in
90	85		which both the individual and a person registered under Chapter 305
91	86		have an interest;
92	87		(13) identification by name and the category of the
93	88		number of shares of any mutual fund held or acquired, and if sold,
94	89		the category of the amount of net gain or loss realized from the
95	90		sale; [and]
96	91		(14) identification of each blind trust that complies
97	92		with Subsection (c), including:
98	93		(A) the category of the fair market value of the
99	94		trust;
100	95		(B) the date the trust was created;
101	96		(C) the name and address of the trustee; and
102	97		(D) a statement signed by the trustee, under
103	98		penalty of perjury, stating that:
104	99		(i) the trustee has not revealed any
105	100		information to the individual, except information that may be
106	101		disclosed under Subdivision (8); and
107	102		(ii) to the best of the trustee's knowledge,
108	103		the trust complies with this section;
109	104		(15) if the aggregate cost of goods or services sold
110	105		under one or more written contracts described by this subdivision
111	106		exceeds $10,000 in the year covered by the report, identification
112	107		of each written contract, including the name of each party to the
113	108		contract:
114	109		(A) for the sale of goods or services in the
115	110		amount of $2,500 or more;
116	111		(B) to which the individual, the individual's
117	112		spouse, the individual's dependent child, or any business entity of
118	113		which the individual, the individual's spouse, or the individual's
119	114		dependent child has at least a 50 percent ownership interest is a
120	115		party; and
121	116		(C) with:
122	117		(i) a governmental entity; or
123	118		(ii) a person who contracts with a
124		-	governmental entity, in accordance with the contract between the
125		-	person contracting with the governmental entity and the individual
126		-	or entity described by Paragraph (B); and
	119	+	governmental entity, if the individual or entity described by
	120	+	Paragraph (B) performs work arising out of the contract,
	121	+	subcontract, or agreement between the person and the governmental
	122	+	entity for a fee; and
127	123		(16) if the individual is a member of the legislature
128	124		and provides bond counsel services to an issuer, as defined by
129	125		Section 1201.002(1), identification of the following for each
130	126		issuance for which the individual served as bond counsel:
131	127		(A) the amount of the issuance;
132	128		(B) the name of the issuer;
133	129		(C) the date of the issuance;
134	130		(D) the amount of fees paid to the individual,
135	131		and whether the amount is:
136	132		(i) less than $5,000;
137	133		(ii) at least $5,000 but less than $10,000;
138	134		(iii) at least $10,000 but less than
139	135		$25,000; or
140	136		(iv) $25,000 or more; and
141	137		(E) the amount of fees paid to the individual's
142	138		firm, if applicable, and whether the amount is:
143	139		(i) less than $5,000;
144	140		(ii) at least $5,000 but less than $10,000;
145	141		(iii) at least $10,000 but less than
146	142		$25,000; or
147	143		(iv) $25,000 or more.
148	144		(e) In this section, "governmental entity" means this
149	145		state, a political subdivision of the state, or an agency or
150	146		department of the state or a political subdivision of the state.
151	147		(f) Subsection (b)(15) does not require the disclosure of an
152	148		employment contract between a school district or open-enrollment
153	149		charter school and an employee of the district or school.
154	150		SECTION 2. Section 572.0252, Government Code, is amended to
155	151		read as follows:
156		-	Sec. 572.0252. INFORMATION ABOUT LEGAL REFERRALS. A state
157		-	officer who is an attorney shall report on the financial statement:
	152	+	Sec. 572.0252. INFORMATION ABOUT LEGAL REFERRALS. (a) In
	153	+	this section, "referral for compensation" means the referral of a
	154	+	legal matter by an attorney to another attorney under which the
	155	+	attorney receiving the compensation is not responsible for
	156	+	performing any legal work relating to the matter. The term does not
	157	+	include compensation for acting as co-counsel, of counsel, or local
	158	+	counsel.
	159	+	(b) This section applies only to a referral made to or
	160	+	received from a person if during the period covered by the financial
	161	+	statement the total amount of compensation for all referrals made
	162	+	to or received from that person exceeds $2,500.
	163	+	(c) A state officer who is an attorney shall report on the
	164	+	financial statement:
158	165		(1) making or receiving any referral for compensation
159	166		for legal services; [and]
160	167		(2) the date the referral is made or received;
161	168		(3) the style of the case referred, if applicable; and
162	169		(4) the percentage of the legal fee paid or received
163	170		that was agreed to between the parties to the referral as the
164	171		referral fee or, if the referral fee is not determined as a
165	172		percentage of the legal fee, the agreed amount of the fee paid or
166	173		received [the category of the amount of any fee accepted for making
167	174		a referral for legal services].
168		-	SECTION 3. The changes in law made by this Act to Subchapter
	175	+	SECTION 3. Subchapter B, Chapter 572, Government Code, is
	176	+	amended by adding Section 572.0295 to read as follows:
	177	+	Sec. 572.0295. AMENDMENT OF FINANCIAL STATEMENT. (a) A
	178	+	person who files a financial statement under this chapter may amend
	179	+	the person's statement.
	180	+	(b) A financial statement that is amended is considered to
	181	+	have been filed on the date on which the original statement was
	182	+	filed if:
	183	+	(1) the amendment is made on or before the 14th day
	184	+	after the date the person filing the statement learns of an error or
	185	+	omission in the original statement;
	186	+	(2) the original financial statement was made in good
	187	+	faith and without an intent to mislead or to misrepresent the
	188	+	information contained in the statement; and
	189	+	(3) the person filing the amendment accompanies the
	190	+	amendment with a declaration that:
	191	+	(A) the person became aware of the error or
	192	+	omission in the original statement during the preceding 14 days;
	193	+	and
	194	+	(B) the original statement was made in good faith
	195	+	and without intent to mislead or to misrepresent the information
	196	+	contained in the statement.
	197	+	SECTION 4. The changes in law made by this Act to Subchapter
169	198		B, Chapter 572, Government Code, apply only to a financial
170	199		statement filed under Subchapter B, Chapter 572, Government Code,
171	200		as amended by this Act, on or after January 8, 2019. A financial
172	201		statement filed before January 8, 2019, is governed by the law in
173	202		effect on the date of filing, and the former law is continued in
174	203		effect for that purpose.
175		-	SECTION 4. This Act takes effect January 8, 2019.
176		-	* * * * *
	204	+	SECTION 5. This Act takes effect January 8, 2019.