86R979 ATP-F
By: Davis of Harris H.B. No. 784
A BILL TO BE ENTITLED
AN ACT
relating to conflicts of interest of members of state agency
governing boards and governing officers; creating a criminal
offense.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle B, Title 5, Government Code, is amended
by adding Chapter 576 to read as follows:
CHAPTER 576. CONFLICT OF INTEREST OF STATE AGENCY GOVERNING BOARD
MEMBER OR OFFICER
Sec. 576.001. DEFINITIONS. In this chapter:
(1) "Conflict of interest" means the conflict between
an official decision made by a state agency governing board member
or governing officer in the individual's official capacity and the
individual's private financial interest in which the individual
realizes any pecuniary gain.
(2) "Financial interest" means ownership or control,
directly or indirectly, of an ownership interest of at least five
percent in a person, including the right to share in profits,
proceeds, or capital gains, or an ownership interest that an
individual could reasonably foresee could result in any financial
benefit to the individual. The term does not include an interest in
a retirement plan, a blind trust, insurance coverage, or capital
gains.
(3) "State agency" means a board, commission, council,
committee, department, office, agency, or other governmental
entity in the executive branch of state government.
Sec. 576.002. DUTY TO DISCLOSE AND REFRAIN FROM
PARTICIPATION. (a) Except as provided by Subsection (b) or (c), in
each matter before the governing board of a state agency or, if the
agency is not governed by a multimember governing board, the
officer who governs the agency, for which a member of the board or
officer, as applicable, has a conflict of interest, the individual:
(1) shall disclose in writing the conflict of interest
to the agency; and
(2) may not participate in the decision on the matter.
(b) If a majority of the members of the governing board of a
state agency has a conflict of interest related to a matter before
the board or, if the agency is not governed by a multimember
governing board, the officer who governs the agency has a conflict
of interest on the matter, the board or officer may decide the
matter only if:
(1) each member, or the officer, as applicable, who
has a conflict of interest discloses in writing the conflict of
interest to the agency; and
(2) the board, or officer, as applicable, makes a
finding that an emergency exists that requires a decision on the
matter despite the conflict of interest.
(c) The duty to disclose a conflict of interest and refrain
from participation in the decision on a matter for a member of the
governing board of an institution of higher education, as those
terms are defined by Section 61.003, Education Code, is governed by
Section 51.923, Education Code.
Sec. 576.003. PUBLIC INFORMATION. A written disclosure
made under Section 576.002 is public information.
Sec. 576.004. REPORT TO TEXAS ETHICS COMMISSION; RULES.
(a) A state agency that receives a written disclosure under Section
576.002 shall file a copy of the disclosure with the Texas Ethics
Commission.
(b) The Texas Ethics Commission may adopt the rules
necessary to implement this chapter, including rules on the
disclosure to be filed with the commission under Subsection (a).
Sec. 576.005. CRIMINAL PENALTY. (a) An individual commits
an offense if the individual knowingly fails to comply with Section
576.002.
(b) An offense under this section is a Class B misdemeanor.
SECTION 2. Section 571.061(a), Government Code, is amended
to read as follows:
(a) The commission shall administer and enforce:
(1) Chapters 302, 303, 305, 572, 576, and 2004;
(2) Subchapter C, Chapter 159, Local Government Code,
in connection with a county judicial officer, as defined by Section
159.051, Local Government Code, who elects to file a financial
statement with the commission;
(3) Title 15, Election Code; and
(4) Sections 2152.064 and 2155.003.
SECTION 3. This Act takes effect September 1, 2019.