By: Kitzman H.B. No. 5237
A BILL TO BE ENTITLED
AN ACT
relating to the disclosure of certain contributions, expenditures,
and gifts between local government officers and vendors.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 5, Local Government Code, is
amended by adding Chapter 176A to read as follows:
CHAPTER 176A. DISCLOSURE OF CONTRIBUTIONS, EXPENDITURES, AND GIFTS
BETWEEN LOCAL GOVERNMENT OFFICERS AND VENDORS
Sec. 176A.001. DEFINITIONS. In this chapter:
(1) "Agent," "commission," "contract," "family
member," "gift," "local governmental entity," "local government
officer," and "records administrator" have the meanings assigned by
Section 176.001.
(2) "Contribution," "expenditure," and "political
committee" have the meanings assigned by Section 251.001, Election
Code.
(3) "Vendor" means a person who enters or seeks to
enter into a contract with a local governmental entity. The term
includes:
(A) an agent of a vendor; and
(B) an officer or employee of a governmental
entity if that individual is acting in a private capacity to enter
into the contract.
Sec. 176A.002. APPLICABILITY. This chapter applies only
to:
(1) a local governmental entity with a population of
eight hundred thousand or more;
(2) a local governmental entity located in a county
with a population of eight hundred thousand or more; and
(3) a local government officer of a local governmental
entity described by Subdivision (1) or (2).
Sec. 176A.003. CONFLICTS DISCLOSURE STATEMENT REQUIRED FOR
LOCAL GOVERNMENT OFFICERS. (a) A local government officer shall
file a conflicts disclosure statement with respect to a vendor if:
(1) the local governmental entity begins negotiations
to enter into a contract with the vendor; and
(2) at any time during the period beginning 24 months
before the date on which the negotiations begin and ending on the
date the negotiations are completed, the officer, a family member
of the officer, or an employee of the local governmental entity
accepted contributions or gifts that have an aggregate value of
$100 or more from the vendor, a political committee controlled by
the vendor, or a person the vendor or political committee solicited
to make the contribution or gift.
(b) A local government officer shall file the conflicts
disclosure statement required under Subsection (a) with the records
administrator of the local governmental entity not later than the
30th day after the later of the date:
(1) the negotiations described by Subsection (a)
began; or
(2) a contribution or gift is made that triggers the
disclosure requirements under Subsection (a).
(c) The commission shall adopt the conflicts disclosure
statement form for a local government officer's use under this
section. The conflicts disclosure statement must include:
(1) a description of each contribution or gift
described by Subsection (a)(2);
(2) an acknowledgment from the officer that:
(A) the disclosure applies to the officer, each
family member of the officer, and each employee of the local
governmental entity; and
(B) the statement covers the period described by
Subsection (a)(2); and
(3) the officer's signature acknowledging that the
statement is made under oath under penalty of perjury.
Sec. 176A.004. CONFLICTS DISCLOSURE STATEMENT REQUIRED FOR
VENDORS. (a) A vendor that begins negotiations with a local
governmental entity to enter into a contract shall file a conflicts
disclosure statement if:
(1) the vendor, a political committee controlled by
the vendor, or a person the vendor or political committee solicits
to make contributions or gifts for the vendor makes a contribution
or gift described by Section 176A.003(a)(2); or
(2) at any time during the period beginning 24 months
before the date on which the negotiations for the contract begin and
ending on the date the negotiations are completed, a local
government officer, a family member of the officer, or an employee
of the local governmental entity made expenditures or gifts that
have an aggregate value of $50 or more to the vendor or a political
committee controlled by the vendor.
(b) The vendor shall file the conflicts disclosure
statement with the records administrator of the local governmental
entity not later than the 30th day after the later of the date:
(1) the negotiations described by Subsection (a)
began; or
(2) a contribution, expenditure, or gift is made that
triggers the disclosure requirements under Subsection (a).
(c) The commission shall adopt a conflicts disclosure
statement for a vendor's use under this section. The conflicts
disclosure statement must include:
(1) a description of each contribution, expenditure,
or gift described by Subsection (a); and
(2) the vendor's signature acknowledging that the
statement is made under oath under penalty of perjury.
Sec. 176A.005. MAINTENANCE OF RECORDS. Each records
administrator shall:
(1) maintain a list of local government officers of
the local governmental entity and shall make that list available to
the public and any vendor who may be required to file a conflicts
disclosure statement under Section 176A.004; and
(2) maintain the statements that are required to be
filed under this chapter in accordance with the local governmental
entity's records retention schedule.
Sec. 176A.006. ELECTRONIC FILING. The requirements of this
chapter, including signature requirements, may be satisfied by
electronic filing in a form approved by the commission.
Sec. 176A.007. POSTING ON INTERNET. A local governmental
entity that maintains an Internet website shall provide access to
the conflicts disclosure statements required to be filed under this
chapter on the website. This subsection does not require a local
governmental entity to maintain an Internet website.
Sec. 176A.008. REQUIREMENTS CUMULATIVE. The requirements
of this chapter are in addition to any other disclosure required by
law.
Sec. 176A.009. APPLICATION OF PUBLIC INFORMATION LAW. This
chapter does not require a local governmental entity to disclose
any information that is excepted from disclosure by Chapter 552,
Government Code.
Sec. 176A.010. NONDISCLOSURE; CONTRACT PROHIBITION. If a
local government officer or a vendor fails to file a required
conflicts disclosure statement under this chapter, the local
governmental entity and vendor may not enter into a contract before
the fifth anniversary of the date the statement was required to be
filed.
SECTION 2. Not later than December 1, 2023, the Texas Ethics
Commission shall adopt the conflicts disclosure statement forms
required by Chapter 176A, Local Government Code, as added by this
Act.
SECTION 3. Notwithstanding Chapter 176A, Local Government
Code, as added by this Act, a local government officer and a vendor
are not required to file a conflicts disclosure statement under
that chapter before January 1, 2024.
SECTION 4. Chapter 176A, Local Government Code, as added by
this Act, does not apply to a contract entered into before January
1, 2024.
SECTION 5. This Act takes effect September 1, 2023.