86R2672 SOS-D
By: Bettencourt S.B. No. 703
A BILL TO BE ENTITLED
AN ACT
relating to the reporting by local governmental entities of
expenditures for lobbying; providing a civil penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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, and 2004;
(1-a) Chapter 139, Local Government Code;
(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 2. Section 571.073, Government Code, is amended to
read as follows:
Sec. 571.073. REPORT. On or before December 31 of each
even-numbered year, the commission shall report to the governor and
legislature. The report must include:
(1) each advisory opinion issued by the commission
under Subchapter D in the preceding two years;
(2) a summary of commission activities in the
preceding two years, including:
(A) the number of sworn complaints filed with the
commission;
(B) the number of sworn complaints dismissed for
noncompliance with statutory form requirements;
(C) the number of sworn complaints dismissed for
lack of jurisdiction;
(D) the number of sworn complaints dismissed
after a finding of no credible evidence of a violation;
(E) the number of sworn complaints dismissed
after a finding of a lack of sufficient evidence to determine
whether a violation within the jurisdiction of the commission has
occurred;
(F) the number of sworn complaints resolved by
the commission through an agreed order;
(G) the number of sworn complaints in which the
commission issued an order finding a violation and the resulting
penalties, if any; and
(H) the number and amount of civil penalties
imposed for failure to timely file a statement or report, the number
and amount of those civil penalties fully paid, the number and
amount of those civil penalties partially paid, and the number and
amount of those civil penalties no part of which has been paid, for
each of the following category of statements and reports, listed
separately:
(i) financial statements required to be
filed under Chapter 572;
(ii) political contribution and
expenditure reports required to be filed under Section 254.063,
254.093, 254.123, 254.153, or 254.157, Election Code;
(iii) political contribution and
expenditure reports required to be filed under Section 254.064(b),
254.124(b), or 254.154(b), Election Code;
(iv) political contribution and
expenditure reports required to be filed under Section 254.064(c),
254.124(c), or 254.154(c), Election Code;
(v) political contribution and expenditure
reports required to be filed under Section 254.038 or 254.039,
Election Code; [and]
(vi) political contribution and
expenditure reports required to be filed under Section 254.0391,
Election Code; and
(vii) statements of expenditures for
lobbying by a local governmental entity required to be filed under
Chapter 139, Local Government Code; and
(3) recommendations for any necessary statutory
changes.
SECTION 3. Section 571.091(a), Government Code, is amended
to read as follows:
(a) The commission shall prepare a written opinion
answering the request of a person subject to any of the following
laws for an opinion about the application of any of these laws to
the person in regard to a specified existing or hypothetical
factual situation:
(1) Chapter 302;
(2) Chapter 303;
(3) Chapter 305;
(4) Chapter 2004;
(5) Chapter 572;
(5-a) Chapter 139, Local Government Code;
(6) Subchapter C, Chapter 159, Local Government Code,
as provided by Section 571.061(a)(2);
(7) Title 15, Election Code;
(8) Chapter 36, Penal Code;
(9) Chapter 39, Penal Code;
(10) Section 2152.064; or
(11) Section 2155.003.
SECTION 4. Subtitle C, Title 4, Local Government Code, is
amended by adding Chapter 139 to read as follows:
CHAPTER 139. REPORTING OF EXPENDITURES FOR LOBBYING BY LOCAL
GOVERNMENTAL ENTITIES
Sec. 139.001. DEFINITIONS. In this chapter:
(1) "Commission" means the Texas Ethics Commission.
(2) "Lobbying" means communicating directly with a
member of the legislative or executive branch for the purpose of
influencing legislative action on behalf of a person by whom an
individual is compensated or reimbursed.
(3) "Local governmental entity" means a county,
municipality, school district, or hospital district. The term does
not include a junior college district.
Sec. 139.002. STATEMENT OF EXPENDITURES FOR LOBBYING. (a)
In accordance with Subsection (b), the governing body of a local
governmental entity shall file with the commission a statement that
clearly and concisely shows the local governmental entity's total
expenditures for lobbying activities during the period covered by
the statement, including:
(1) the full name, business name, and business address
of each person required to register under Chapter 305, Government
Code, with whom the local governmental entity has contracted to
perform lobbying activities; and
(2) the total contract amount paid to each person
required to register under Chapter 305, Government Code, for
lobbying activities on behalf of the local governmental entity.
(b) A local governmental entity shall file two statements
each odd-numbered year as follows:
(1) the first statement shall be filed not later than
January 15 of each odd-numbered year and cover the period beginning
July 1 of the preceding odd-numbered year and ending December 31 of
the preceding even-numbered year; and
(2) the second statement shall be filed not later than
July 31 of each odd-numbered year and cover the period beginning
January 1 and ending June 30 of the year in which the statement is
filed.
(c) A local governmental entity shall post each statement
filed under this section on an easily accessible page on the
entity's Internet website.
Sec. 139.003. TIMELINESS OF FILING. (a) The deadline for
filing a statement of expenditures for lobbying required by Section
139.002 is 5 p.m. of the last day designated in the applicable
provision for filing the statement.
(b) If the last day for filing the statement of expenditures
for lobbying is a Saturday, Sunday, or holiday included under
Subchapter B, Chapter 662, the statement is timely if filed on the
next day that is not a Saturday, Sunday, or listed holiday.
(c) A statement of expenditures for lobbying is timely filed
if it is properly addressed and placed in the United States Postal
Service or in the hands of a common or contract carrier not later
than the last day for filing the statement. The post office
cancellation mark or the receipt mark of a common or contract
carrier is prima facie evidence of the date the statement was
deposited with the postal service or carrier. The local
governmental entity filing the statement may show by competent
evidence that the actual date of posting was different from that
shown by the marks.
Sec. 139.004. CIVIL PENALTY. (a) The commission shall
determine from any available evidence whether a statement of
expenditures for lobbying required to be filed under Section
139.002 is late. On making a determination that the statement is
late, the commission shall immediately mail a notice of the
determination to the governing body of the local governmental
entity responsible for filing the statement and to the appropriate
attorney for the state.
(b) If a statement is determined to be late, the local
governmental entity is liable to the state for a civil penalty of
$500. If a statement is more than 30 days late, the commission
shall issue a warning of liability by registered mail to the
governing body of the local governmental entity responsible for the
filing. If the penalty is not paid before the 10th day after the
date on which the warning is received, the local governmental
entity is liable for a civil penalty in an amount determined by
commission rule, but not to exceed $10,000.
Sec. 139.005. RULES. The commission shall adopt rules
necessary to implement this chapter, including rules prescribing
the form of a statement of expenditures for lobbying required by
Section 139.002.
SECTION 5. (a) Not later than December 1, 2019, the Texas
Ethics Commission shall adopt rules required by Section 139.005,
Local Government Code, as added by this Act.
(b) Notwithstanding Section 139.002, Local Government Code,
as added by this Act, the initial statement of expenditures for
lobbying activities required to be filed by that section on January
15, 2021, must cover the period beginning January 1, 2020, and
ending December 31, 2020.
SECTION 6. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2019.