Bill Text: TX HB23 | 2015-2016 | 84th Legislature | Enrolled


Bill Title: Relating to disclosure of certain relationships with local government officers and vendors; creating criminal offenses.

Spectrum: Moderate Partisan Bill (Republican 4-1)

Status: (Passed) 2015-06-19 - Effective on 9/1/15 [HB23 Detail]

Download: Texas-2015-HB23-Enrolled.html
 
 
  H.B. No. 23
 
 
 
 
AN ACT
  relating to disclosure of certain relationships with local
  government officers and vendors; creating criminal offenses.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 176.001, Local Government Code, is
  amended by amending Subdivisions (1), (2), (2-a), (2-b), (3), and
  (4) and adding Subdivisions (2-c), (2-d), and (7) to read as
  follows:
               (1)  "Agent" means a third party who undertakes to
  transact some business or manage some affair for another person by
  the authority or on account of the other person. The term includes
  an employee.
               (2)  "Family member" means a person related to another
  person within the first degree by consanguinity or affinity, as
  described by Subchapter B, Chapter 573, Government Code[, except
  that the term does not include a person who is considered to be
  related to another person by affinity only as described by Section
  573.024(b), Government Code].
               (2-a)  "Family relationship" means a relationship
  between a person and another person within the third degree by
  consanguinity or the second degree by affinity, as those terms are
  defined by Subchapter B, Chapter 573, Government Code.
               (2-b)  "Gift" means a benefit offered by a person,
  including food, lodging, transportation, and entertainment
  accepted as a guest.  The term does not include a benefit offered on
  account of kinship or a personal, professional, or business
  relationship independent of the official status of the recipient.
               (2-c) "Goods" means personal property.
               (2-d) [(2-b)]  "Investment income" means dividends,
  capital gains, or interest income generated from:
                     (A)  a personal or business:
                           (i)  checking or savings account;
                           (ii)  share draft or share account; or
                           (iii)  other similar account;
                     (B)  a personal or business investment; or
                     (C)  a personal or business loan.
               (3)  "Local governmental entity" means a county,
  municipality, school district, charter school, junior college
  district, water district created under Subchapter B, Chapter 49,
  Water Code, or other political subdivision of this state or a local
  government corporation, board, commission, district, or authority
  to which a member is appointed by the commissioners court of a
  county, the mayor of a municipality, or the governing body of a
  municipality.  The term does not include an association,
  corporation, or organization of governmental entities organized to
  provide to its members education, assistance, products, or services
  or to represent its members before the legislative, administrative,
  or judicial branches of the state or federal government.
               (4)  "Local government officer" means:
                     (A)  a member of the governing body of a local
  governmental entity;
                     (B)  a director, superintendent, administrator,
  president, or other person designated as the executive officer of a 
  [the] local governmental entity; or
                     (C)  an agent [employee] of a local governmental
  entity who exercises discretion in the planning, recommending,
  selecting, or contracting of a vendor [with respect to whom the
  local governmental entity has, in accordance with Section 176.005,
  extended the requirements of Sections 176.003 and 176.004].
               (7)  "Vendor" means a person who enters or seeks to
  enter into a contract with a local governmental entity.  The term
  includes an agent of a vendor. The term includes an officer or
  employee of a state agency when that individual is acting in a
  private capacity to enter into a contract. The term does not
  include a state agency except for Texas Correctional Industries.
         SECTION 2.  The heading to Section 176.002, Local Government
  Code, is amended to read as follows:
         Sec. 176.002.  APPLICABILITY TO [CERTAIN] VENDORS AND OTHER
  PERSONS.
         SECTION 3.  Sections 176.002(a) and (b), Local Government
  Code, are amended to read as follows:
         (a)  This chapter applies to a person who is:
               (1)  a vendor [enters or seeks to enter into a contract
  with a local governmental entity]; or
               (2)  a local government officer [is an agent] of [a
  person described by Subdivision (1) in the person's business with]
  a local governmental entity.
         (b)  A person is not subject to the disclosure requirements
  of this chapter if the person is:
               (1)  a state, a political subdivision of a state, the
  federal government, or a foreign government; or
               (2)  an employee or agent of an entity described by
  Subdivision (1), acting in the employee's or agent's official
  capacity.
         SECTION 4.  Section 176.003, Local Government Code, is
  amended by amending Subsections (a) and (a-1) and adding Subsection
  (a-2) to read as follows:
         (a)  A local government officer shall file a conflicts
  disclosure statement with respect to a vendor [person described by
  Section 176.002(a)] if:
               (1)  the vendor [person] enters into a contract with
  the local governmental entity or the local governmental entity is
  considering entering into a contract with the vendor [person]; and
               (2)  the vendor [person]:
                     (A)  has an employment or other business
  relationship with the local government officer or a family member
  of the officer that results in the officer or family member
  receiving taxable income, other than investment income, that
  exceeds $2,500 during the 12-month period preceding the date that
  the officer becomes aware that:
                           (i)  a contract between the local
  governmental entity and vendor [described by Subdivision (1)] has
  been executed; or
                           (ii)  the local governmental entity is
  considering entering into a contract with the vendor [person]; [or]
                     (B)  has given to the local government officer or
  a family member of the officer one or more gifts that have an
  aggregate value of more than $100 [$250] in the 12-month period
  preceding the date the officer becomes aware that:
                           (i)  a contract between the local
  governmental entity and vendor [described by Subdivision (1)] has
  been executed; or
                           (ii)  the local governmental entity is
  considering entering into a contract with the vendor; or
                     (C)  has a family relationship with the local
  government officer [person].
         (a-1)  A local government officer is not required to file a
  conflicts disclosure statement in relation to a gift accepted by
  the officer or a family member of the officer if the gift is:
               (1)  [given by a family member of the person accepting
  the gift;
               [(2)]  a political contribution as defined by Title 15,
  Election Code; or
               (2) [(3)]  food[, lodging, transportation, or
  entertainment] accepted as a guest.
         (a-2)  A local government officer is not required to file a
  conflicts disclosure statement under Subsection (a) if the local
  governmental entity or vendor described by that subsection is an
  administrative agency created under Section 791.013, Government
  Code.
         SECTION 5.  Section 176.004, Local Government Code, is
  transferred to Section 176.003, Local Government Code,
  redesignated as Section 176.003(e), Local Government Code, and
  amended to read as follows:
         (e)  [Sec. 176.004.  CONTENTS OF DISCLOSURE STATEMENT.] The
  commission shall adopt the conflicts disclosure statement for local
  government officers for use under this section.  The conflicts
  disclosure statement must include:
               (1)  a requirement that each local government officer
  disclose:
                     (A)  an employment or other business relationship
  described by Subsection (a)(2)(A) [Section 176.003(a)], including
  the nature and extent of the relationship; and
                     (B)  gifts accepted by the local government
  officer and any family member of the officer from a vendor [person
  described by Section 176.002(a)] during the 12-month period
  described by Subsection (a)(2)(B) [Section 176.003(a)(2)(B)] if
  the aggregate value of the gifts[, excluding gifts described by
  Section 176.003(a-1),] accepted by the officer or a family member
  from that vendor exceeds $100 [person exceed $250];
               (2)  an acknowledgment from the local government
  officer that:
                     (A)  the disclosure applies to each family member
  of the officer; and
                     (B)  the statement covers the 12-month period
  described by Subsection (a)(2)(B) [Section 176.003(a)]; and
               (3)  the signature of the local government officer
  acknowledging that the statement is made under oath under penalty
  of perjury.
         SECTION 6.  Section 176.006, Local Government Code, is
  amended by amending Subsections (a), (a-1), (b), (c), (d), and (i)
  and adding Subsection (e) to read as follows:
         (a)  A vendor [person described by Section 176.002(a)] shall
  file a completed conflict of interest questionnaire if the vendor
  [person] has a business relationship with a local governmental
  entity and:
               (1)  has an employment or other business relationship
  with a local government [an] officer of that local governmental
  entity, or a family member of the officer, described by Section
  176.003(a)(2)(A); [or]
               (2)  has given a local government [an] officer of that
  local governmental entity, or a family member of the officer, one or
  more gifts with the aggregate value specified by Section
  176.003(a)(2)(B), excluding any gift described by Section
  176.003(a-1); or
               (3)  has a family relationship with a local government
  officer of that local governmental entity.
         (a-1)  The completed conflict of interest questionnaire must
  be filed with the appropriate records administrator not later than
  the seventh business day after the later of:
               (1)  the date that the vendor [person]:
                     (A)  begins discussions or negotiations to enter
  into a contract with the local governmental entity; or
                     (B)  submits to the local governmental entity an
  application, response to a request for proposals or bids,
  correspondence, or another writing related to a potential contract
  with the local governmental entity; or
               (2)  the date the vendor [person] becomes aware:
                     (A)  of an employment or other business
  relationship with a local government officer, or a family member of
  the officer, described by Subsection (a); [or]
                     (B)  that the vendor [person] has given one or
  more gifts described by Subsection (a); or
                     (C)  of a family relationship with a local
  government officer.
         (b)  The commission shall adopt a conflict of interest
  questionnaire for use under this section that requires disclosure
  of a vendor's [person's] business and family relationships with a
  local governmental entity.
         (c)  The questionnaire adopted under Subsection (b) must
  require, for the local governmental entity with respect to which
  the questionnaire is filed, that the vendor [person] filing the
  questionnaire:
               (1)  describe each employment or business and family
  relationship the vendor [person] has with each local government
  officer of the local governmental entity;
               (2)  identify each employment or business relationship
  described by Subdivision (1) with respect to which the local
  government officer receives, or is likely to receive, taxable
  income, other than investment income, from the vendor [person
  filing the questionnaire];
               (3)  identify each employment or business relationship
  described by Subdivision (1) with respect to which the vendor
  [person filing the questionnaire] receives, or is likely to
  receive, taxable income, other than investment income, that:
                     (A)  is received from, or at the direction of, a
  local government officer of the local governmental entity; and
                     (B)  is not received from the local governmental
  entity; and
               (4)  describe each employment or business relationship
  with a corporation or other business entity with respect to which a
  local government officer of the local governmental entity:
                     (A)  serves as an officer or director; or
                     (B)  holds an ownership interest of one [10]
  percent or more.
         (d)  A vendor [person described by Subsection (a)] shall file
  an updated completed questionnaire with the appropriate records
  administrator not later than the seventh business day after the
  date on which the vendor becomes aware of an event that would make a
  statement in the questionnaire incomplete or inaccurate.
         (e)  A person who is both a local government officer and a
  vendor of a local governmental entity is required to file the
  questionnaire required by Subsection (a)(1) only if the person:
               (1)  enters or seeks to enter into a contract with the
  local governmental entity; or
               (2)  is an agent of a person who enters or seeks to
  enter into a contract with the local governmental entity.
         (i)  The validity of a contract between a vendor [person
  described by Section 176.002] and a local governmental entity is
  not affected solely because the vendor [person] fails to comply
  with this section.
         SECTION 7.  Section 176.011, Local Government Code, is
  redesignated as 176.0065, Local Government Code, and amended to
  read as follows:
         Sec. 176.0065  [176.011].  MAINTENANCE OF RECORDS. A
  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 conflict of
  interest questionnaire under Section 176.006; and
               (2)  maintain the statements and questionnaires that
  are required to be filed under this chapter in accordance with the
  local governmental entity's records retention schedule.
         SECTION 8.  Chapter 176, Local Government Code, is amended
  by adding Section 176.013 to read as follows:
         Sec. 176.013.  ENFORCEMENT. (a) A local government officer
  commits an offense under this chapter if the officer:
               (1)  is required to file a conflicts disclosure
  statement under Section 176.003; and
               (2)  knowingly fails to file the required conflicts
  disclosure statement with the appropriate records administrator
  not later than 5 p.m. on the seventh business day after the date on
  which the officer becomes aware of the facts that require the filing
  of the statement.
         (b)  A vendor commits an offense under this chapter if the
  vendor:
               (1)  is required to file a conflict of interest
  questionnaire under Section 176.006; and
               (2)  either:
                     (A)  knowingly fails to file the required
  questionnaire with the appropriate records administrator not later
  than 5 p.m. on the seventh business day after the date on which the
  vendor becomes aware of the facts that require the filing of the
  questionnaire; or
                     (B)  knowingly fails to file an updated
  questionnaire with the appropriate records administrator not later
  than 5 p.m. on the seventh business day after the date on which the
  vendor becomes aware of an event that would make a statement in a
  questionnaire previously filed by the vendor incomplete or
  inaccurate.
         (c)  An offense under this chapter is:
               (1)  a Class C misdemeanor if the contract amount is
  less than $1 million or if there is no contract amount for the
  contract;
               (2)  a Class B misdemeanor if the contract amount is at
  least $1 million but less than $5 million; or
               (3)  a Class A misdemeanor if the contract amount is at
  least $5 million.
         (d)  A local governmental entity may reprimand, suspend, or
  terminate the employment of an employee who knowingly fails to
  comply with a requirement adopted under this chapter.
         (e)  The governing body of a local governmental entity may,
  at its discretion, declare a contract void if the governing body
  determines that a vendor failed to file a conflict of interest
  questionnaire required by Section 176.006.
         (f)  It is an exception to the application of Subsection (a)
  that the local government officer filed the required conflicts
  disclosure statement not later than the seventh business day after
  the date the officer received notice from the local governmental
  entity of the alleged violation.
         (g)  It is an exception to the application of Subsection (b)
  that the vendor filed the required questionnaire not later than the
  seventh business day after the date the vendor received notice from
  the local governmental entity of the alleged violation.
         SECTION 9.  The following provisions of the Local Government
  Code are repealed:
               (1)  Sections 176.003(c) and (d);
               (2)  Section 176.005;
               (3)  Sections 176.006(f), (g), and (h); and
               (4)  Section 176.007.
         SECTION 10.  As soon as practicable after the effective date
  of this Act, the Texas Ethics Commission shall adopt forms to
  implement this Act.
         SECTION 11.  (a) Chapter 176, Local Government Code, as
  amended by this Act, applies only to an event requiring disclosure
  that occurs on or after the effective date of this Act. An event
  requiring disclosure that occurs before the effective date of this
  Act is governed by the law applicable to the event immediately
  before the effective date of this Act, and the former law is
  continued in effect for that purpose.
         (b)  The repeal by this Act of Sections 176.003(c),
  176.005(c), and 176.006(f), Local Government Code, does not apply
  to an offense committed under those sections before the effective
  date of the repeal. An offense committed before the effective date
  of the repeal is governed by those sections as they existed on the
  date the offense was committed, and the former law is continued in
  effect for that purpose. For purposes of this subsection, an
  offense was committed before the effective date of the repeal if any
  element of the offense occurred before that date.
         SECTION 12.  This Act takes effect September 1, 2015.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 23 was passed by the House on April
  28, 2015, by the following vote:  Yeas 143, Nays 0, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 23 was passed by the Senate on May 27,
  2015, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor       
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