Texas 2019 - 86th Regular

Texas House Bill HB1438 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R5190 BRG-D
2	2	By: Turner of Tarrant H.B. No. 1438
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the contents of and public access to personal financial
8	8	statements filed by public officials and candidates.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Sections 572.022(a) and (d), Government Code,
11	11	are amended to read as follows:
12	12	(a) If an amount in a financial statement is required to be
13	13	reported by category, the individual filing the statement shall
14	14	report whether the amount is:
15	15	(1) less than $200 [$5,000];
16	16	(2) at least $200 [$5,000] but less than $1,000
17	17	[$10,000];
18	18	(3) at least $1,000 [$10,000] but less than $2,500
19	19	[$25,000];
20	20	(4) at least $2,500 but less than $5,000;
21	21	(5) at least $5,000 but less than $15,000;
22	22	(6) at least $15,000 but less than $50,000;
23	23	(7) at least $50,000 but less than $100,000;
24	24	(8) at least $100,000 but less than $1,000,000;
25	25	(9) at least $1,000,000 but less than $5,000,000; or
26	26	(10) $5,000,000 [(4) $25,000] or more.
27	27	(d) For a gift [of cash or a cash equivalent such as a
28	28	negotiable instrument or gift certificate] that is reported in
29	29	accordance with Section 572.023(b)(7), the individual filing the
30	30	statement shall include in the description of the gift a statement
31	31	of the value of the gift. If the reported gift is cash or a cash
32	32	equivalent such as a negotiable instrument or gift certificate, the
33	33	description must include the actual face value of the gift.
34	34	SECTION 2. Sections 572.023(a) and (b), Government Code,
35	35	are amended to read as follows:
36	36	(a) A financial statement must include an account of the
37	37	financial activity of the individual required by this subchapter to
38	38	file a financial statement and an account of the financial activity
39	39	of the individual's spouse and dependent children if the individual
40	40	had actual control over that activity for:
41	41	(1) the preceding calendar year; or
42	42	(2) both the preceding calendar year and, listed
43	43	separately, the year before the preceding calendar year, for
44	44	information reported under Subsection (b)(1), (4), or (8).
45	45	(b) The account of financial activity consists of:
46	46	(1) a list of all sources of occupational income,
47	47	identified by employer, or if self-employed, by the nature of the
48	48	occupation, including identification of a person or other
49	49	organization from which the individual or a business in which the
50	50	individual has a substantial interest received a fee as a retainer
51	51	for a claim on future services in case of need, as distinguished
52	52	from a fee for services on a matter specified at the time of
53	53	contracting for or receiving the fee, if professional or
54	54	occupational services are not actually performed during the
55	55	reporting period equal to or in excess of the amount of the
56	56	retainer, and the category of the amount of the fee;
57	57	(2) identification by name of and the category of the
58	58	year-end book value of the interest in [number of shares of stock
59	59	of] any nonpublicly traded business entity held or acquired, and if
60	60	sold, the category of the amount of net gain or loss realized from
61	61	the sale;
62	62	(2-a) identification by name and the category of the
63	63	year-end market value of any publicly traded securities held or
64	64	acquired, and if sold, the category of the amount of net gain or
65	65	loss realized from the sale;
66	66	(3) a list of all bonds, notes, and other commercial
67	67	paper held or acquired, and if sold, the category of the amount of
68	68	net gain or loss realized from the sale;
69	69	(4) identification of each source and the category of
70	70	the amount of income in excess of $500 derived from each source from
71	71	interest, dividends, royalties, and rents;
72	72	(5) identification of each guarantor of a loan and
73	73	identification of each person or financial institution to whom a
74	74	personal note or notes or lease agreement for a total financial
75	75	liability in excess of $1,000 existed at any time during the year,
76	76	the date the liability was incurred, and the category of the amount
77	77	of the liability;
78	78	(6) identification by description of all beneficial
79	79	interests in real property and business entities held or acquired,
80	80	and if sold, the category of the amount of the net gain or loss
81	81	realized from the sale;
82	82	(7) identification of a person or other organization
83	83	from which the individual or the individual's spouse or dependent
84	84	children received a gift of anything of value in excess of $250 and
85	85	a description of each gift, except:
86	86	(A) a gift received from an individual related to
87	87	the individual at any time within the second degree by
88	88	consanguinity or affinity, as determined under Subchapter B,
89	89	Chapter 573;
90	90	(B) a political contribution that was reported as
91	91	required by Chapter 254, Election Code; and
92	92	(C) an expenditure required to be reported by a
93	93	person required to be registered under Chapter 305;
94	94	(8) identification of the source and the category of
95	95	the amount of all income received as beneficiary of a trust, other
96	96	than a blind trust that complies with Subsection (c), and
97	97	identification of each trust asset, if known to the beneficiary,
98	98	from which income was received by the beneficiary in excess of $500;
99	99	(9) identification:
100	100	(A) by description of a corporation, firm,
101	101	partnership, limited partnership, limited liability partnership,
102	102	professional corporation, professional association, joint venture,
103	103	or other business association in which five percent or more of the
104	104	outstanding ownership was held, acquired, or sold; and
105	105	(B) by description and the category of the amount
106	106	of all assets and liabilities of a corporation, firm, partnership,
107	107	limited partnership, limited liability partnership, professional
108	108	corporation, professional association, joint venture, or other
109	109	business association in which 50 percent or more of the outstanding
110	110	ownership was held, acquired, or sold;
111	111	(10) a list of all boards of directors of which the
112	112	individual is a member and executive positions that the individual
113	113	holds in corporations, firms, partnerships, limited partnerships,
114	114	limited liability partnerships, professional corporations,
115	115	professional associations, joint ventures, or other business
116	116	associations or proprietorships, stating the name of each
117	117	corporation, firm, partnership, limited partnership, limited
118	118	liability partnership, professional corporation, professional
119	119	association, joint venture, or other business association or
120	120	proprietorship and the position held;
121	121	(11) identification of any person providing
122	122	transportation, meals, or lodging expenses permitted under Section
123	123	36.07(b), Penal Code, and the amount of those expenses, other than
124	124	expenditures required to be reported under Chapter 305;
125	125	(12) any corporation, firm, partnership, limited
126	126	partnership, limited liability partnership, professional
127	127	corporation, professional association, joint venture, or other
128	128	business association, excluding a publicly held corporation, in
129	129	which both the individual and a person registered under Chapter 305
130	130	have an interest;
131	131	(13) identification by name and the category of the
132	132	year-end market value [number of shares] of any mutual fund held or
133	133	acquired, and if sold, the category of the amount of net gain or
134	134	loss realized from the sale;
135	135	(14) identification of each blind trust that complies
136	136	with Subsection (c), including:
137	137	(A) the category of the fair market value of the
138	138	trust;
139	139	(B) the date the trust was created;
140	140	(C) the name and address of the trustee; and
141	141	(D) a statement signed by the trustee, under
142	142	penalty of perjury, stating that:
143	143	(i) the trustee has not revealed any
144	144	information to the individual, except information that may be
145	145	disclosed under Subdivision (8); and
146	146	(ii) to the best of the trustee's knowledge,
147	147	the trust complies with this section;
148	148	(15) if the aggregate cost of goods or services sold
149	149	under one or more written contracts described by this subdivision
150	150	exceeds $10,000 in the year covered by the report, identification
151	151	of each written contract, including the name of each party to the
152	152	contract:
153	153	(A) for the sale of goods or services in the
154	154	amount of $2,500 or more;
155	155	(B) to which the individual, the individual's
156	156	spouse, the individual's dependent child, or any business entity of
157	157	which the individual, the individual's spouse, or the individual's
158	158	dependent child, independently or in conjunction with one or more
159	159	persons described by this subsection, has at least a 50 percent
160	160	ownership interest is a party; and
161	161	(C) with:
162	162	(i) a governmental entity; or
163	163	(ii) a person who contracts with a
164	164	governmental entity, if the individual or entity described by
165	165	Paragraph (B) performs work arising out of the contract,
166	166	subcontract, or agreement between the person and the governmental
167	167	entity for a fee; and
168	168	(16) if the individual is a member of the legislature
169	169	and provides bond counsel services to an issuer, as defined by
170	170	Section 1201.002(1), identification of the following for each
171	171	issuance for which the individual served as bond counsel:
172	172	(A) the amount of the issuance;
173	173	(B) the name of the issuer;
174	174	(C) the date of the issuance;
175	175	(D) the amount of fees paid to the individual,
176	176	and whether the amount is:
177	177	(i) less than $5,000;
178	178	(ii) at least $5,000 but less than $10,000;
179	179	(iii) at least $10,000 but less than
180	180	$25,000; or
181	181	(iv) $25,000 or more; and
182	182	(E) the amount of fees paid to the individual's
183	183	firm, if applicable, and whether the amount is:
184	184	(i) less than $5,000;
185	185	(ii) at least $5,000 but less than $10,000;
186	186	(iii) at least $10,000 but less than
187	187	$25,000; or
188	188	(iv) $25,000 or more.
189	189	SECTION 3. Section 572.032, Government Code, is amended by
190	190	amending Subsection (a) and adding Subsection (d) to read as
191	191	follows:
192	192	(a) Financial statements filed under this subchapter are
193	193	public records. The commission shall maintain the statements in
194	194	separate alphabetical files and in a manner that is accessible to
195	195	the public during regular office hours and make the statements
196	196	available to the public on the commission's website not later than
197	197	the 15th day after the date the statement is required to be filed or
198	198	is actually filed, whichever is later.
199	199	(d) The commission is not required to continue to make
200	200	available on its website a financial statement that may be
201	201	destroyed under Subsection (c). The commission may not make
202	202	available on its website a financial statement that the commission
203	203	is required to destroy under Subsection (c).
204	204	SECTION 4. Sections 572.022(b) and 572.032(b), Government
205	205	Code, are repealed.
206	206	SECTION 5. The changes in law made by this Act to Sections
207	207	572.022 and 572.023, Government Code, apply only to a financial
208	208	statement filed under Subchapter B, Chapter 572, Government Code,
209	209	on or after January 1, 2021. A financial statement filed before
210	210	January 1, 2021, is governed by the law in effect on the date of
211	211	filing, and the former law is continued in effect for that purpose.
212	212	SECTION 6. This Act takes effect immediately if it receives
213	213	a vote of two-thirds of all the members elected to each house, as
214	214	provided by Section 39, Article III, Texas Constitution. If this
215	215	Act does not receive the vote necessary for immediate effect, this
216	216	Act takes effect September 1, 2019.