Texas 2019 - 86th Regular

Texas House Bill HB784 Compare Versions

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

Old	New	Differences
1	1	86R979 ATP-F
2	2	By: Davis of Harris H.B. No. 784
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to conflicts of interest of members of state agency
8	8	governing boards and governing officers; creating a criminal
9	9	offense.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subtitle B, Title 5, Government Code, is amended
12	12	by adding Chapter 576 to read as follows:
13	13	CHAPTER 576. CONFLICT OF INTEREST OF STATE AGENCY GOVERNING BOARD
14	14	MEMBER OR OFFICER
15	15	Sec. 576.001. DEFINITIONS. In this chapter:
16	16	(1) "Conflict of interest" means the conflict between
17	17	an official decision made by a state agency governing board member
18	18	or governing officer in the individual's official capacity and the
19	19	individual's private financial interest in which the individual
20	20	realizes any pecuniary gain.
21	21	(2) "Financial interest" means ownership or control,
22	22	directly or indirectly, of an ownership interest of at least five
23	23	percent in a person, including the right to share in profits,
24	24	proceeds, or capital gains, or an ownership interest that an
25	25	individual could reasonably foresee could result in any financial
26	26	benefit to the individual. The term does not include an interest in
27	27	a retirement plan, a blind trust, insurance coverage, or capital
28	28	gains.
29	29	(3) "State agency" means a board, commission, council,
30	30	committee, department, office, agency, or other governmental
31	31	entity in the executive branch of state government.
32	32	Sec. 576.002. DUTY TO DISCLOSE AND REFRAIN FROM
33	33	PARTICIPATION. (a) Except as provided by Subsection (b) or (c), in
34	34	each matter before the governing board of a state agency or, if the
35	35	agency is not governed by a multimember governing board, the
36	36	officer who governs the agency, for which a member of the board or
37	37	officer, as applicable, has a conflict of interest, the individual:
38	38	(1) shall disclose in writing the conflict of interest
39	39	to the agency; and
40	40	(2) may not participate in the decision on the matter.
41	41	(b) If a majority of the members of the governing board of a
42	42	state agency has a conflict of interest related to a matter before
43	43	the board or, if the agency is not governed by a multimember
44	44	governing board, the officer who governs the agency has a conflict
45	45	of interest on the matter, the board or officer may decide the
46	46	matter only if:
47	47	(1) each member, or the officer, as applicable, who
48	48	has a conflict of interest discloses in writing the conflict of
49	49	interest to the agency; and
50	50	(2) the board, or officer, as applicable, makes a
51	51	finding that an emergency exists that requires a decision on the
52	52	matter despite the conflict of interest.
53	53	(c) The duty to disclose a conflict of interest and refrain
54	54	from participation in the decision on a matter for a member of the
55	55	governing board of an institution of higher education, as those
56	56	terms are defined by Section 61.003, Education Code, is governed by
57	57	Section 51.923, Education Code.
58	58	Sec. 576.003. PUBLIC INFORMATION. A written disclosure
59	59	made under Section 576.002 is public information.
60	60	Sec. 576.004. REPORT TO TEXAS ETHICS COMMISSION; RULES.
61	61	(a) A state agency that receives a written disclosure under Section
62	62	576.002 shall file a copy of the disclosure with the Texas Ethics
63	63	Commission.
64	64	(b) The Texas Ethics Commission may adopt the rules
65	65	necessary to implement this chapter, including rules on the
66	66	disclosure to be filed with the commission under Subsection (a).
67	67	Sec. 576.005. CRIMINAL PENALTY. (a) An individual commits
68	68	an offense if the individual knowingly fails to comply with Section
69	69	576.002.
70	70	(b) An offense under this section is a Class B misdemeanor.
71	71	SECTION 2. Section 571.061(a), Government Code, is amended
72	72	to read as follows:
73	73	(a) The commission shall administer and enforce:
74	74	(1) Chapters 302, 303, 305, 572, 576, and 2004;
75	75	(2) Subchapter C, Chapter 159, Local Government Code,
76	76	in connection with a county judicial officer, as defined by Section
77	77	159.051, Local Government Code, who elects to file a financial
78	78	statement with the commission;
79	79	(3) Title 15, Election Code; and
80	80	(4) Sections 2152.064 and 2155.003.
81	81	SECTION 3. This Act takes effect September 1, 2019.