Bill Text: TX HB2473 | 2017-2018 | 85th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to the disclosure of gifts by vendors to certain local government officers and of certain relationships with local government officers; creating a criminal offense.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2017-05-15 - Received from the House [HB2473 Detail]

Download: Texas-2017-HB2473-Introduced.html

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85R6161 TJB-F
By: Davis of Harris H.B. No. 2473

A BILL TO BE ENTITLED
AN ACT
relating to the disclosure by vendors of gifts to certain local
government officers and of certain relationships with local
government officers; creating an offense.
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 GIFTS TO CERTAIN LOCAL GOVERNMENT
OFFICERS
Sec. 176A.001. DEFINITIONS. In this chapter:
(1) "Agent," "commission," "family member," "goods,"
and "local governmental entity" have the meanings assigned by
Section 176.001.
(2) "Entertainment" includes transportation to,
lodging for, and attendance at a function, event, or performance
that:
(A) a local government officer accepts as the
guest of a vendor;
(B) is not required to be reported under law
other than under this chapter; and
(C) is not prohibited by law.
(3) "Gift" means a benefit, including entertainment,
offered by a vendor and accepted by a local government officer. The
term does not include:
(A) a benefit offered based on kinship or a
personal, professional, or business relationship independent of
the official status of the local government officer accepting the
benefit; or
(B) food or beverages accepted by a local
government officer as the guest of a vendor.
(4) "Local government officer" means:
(A) a member of the governing body of a local
governmental entity; or
(B) a director, superintendent, administrator,
president, or other executive officer of a local governmental
entity who exercises discretion in the planning, recommending,
selecting, or contracting of a vendor.
(5) "Vendor" means a person or agent of the person who
enters or seeks to enter into a contract with a local governmental
entity for the provision of goods or services.
Sec. 176A.002. VENDOR DISCLOSURE FORM REQUIRED. (a) Not
later than the 15th day of the first month of each calendar quarter,
a vendor shall submit a completed disclosure form created by the
commission to a local governmental entity if the vendor:
(1) has a contract or is seeking to enter into a
contract with the local governmental entity; and
(2) has given one or more gifts during the preceding
calendar quarter with an aggregate value of more than $100 to a
local government officer of the local governmental entity.
(b) A disclosure form submitted by a vendor under this
section must include:
(1) a statement that the vendor:
(A) has a contract or is seeking to enter into a
contract with the local governmental entity; and
(B) has given one or more gifts during the
preceding calendar quarter with an aggregate value of more than
$100 to a local government officer of the local governmental
entity; and
(2) the dollar amount of the gift or gifts described by
Subdivision (1)(B) given to a local government officer, stated as a
total amount for each officer that accepted a gift from the vendor.
(c) This section does not apply to a gift given by a vendor
directly as part of the vendor's sponsorship of or contribution to
an event that benefits a nonprofit organization, if the nonprofit
organization is exempt from federal income taxation under Section
501(a), Internal Revenue Code of 1986, by being listed as an exempt
entity under Section 501(c)(3) of that code.
Sec. 176A.003. EXTENSION OF DEADLINE TO SUBMIT VENDOR
DISCLOSURE FORM. (a) A local governmental entity shall mail
written notice to a vendor if the vendor has not submitted a
disclosure form as required to be submitted under this chapter as
soon as practicable after the local governmental entity discovers
the omission.
(b) Notwithstanding Section 176A.002(a), on notification by
the local governmental entity under this section, the deadline for
the vendor to submit the disclosure form is extended to the 30th day
after the date the notice is mailed.
Sec. 176A.004. LIST OF GOVERNMENT OFFICERS. A local
governmental entity shall:
(1) create a complete list of all local government
officers of the local governmental entity;
(2) update the list as needed to ensure the accuracy of
the list;
(3) provide the most recently updated list to each
vendor that enters or seeks to enter into a contract with the local
governmental entity; and
(4) post and maintain the most recently updated list
on the local governmental entity's Internet website, if the local
governmental entity maintains a website.
Sec. 176A.005. PROHIBITION. (a) This section does not
apply to a solicitation for contributions authorized by the
Election Code.
(b) A local government officer may not solicit from a vendor
a gift on behalf of the local government officer, a family member of
the local government officer, or another person, including a local
governmental entity or nonprofit charitable organization.
Sec. 176A.006. OFFENSE. (a) A vendor commits an offense if
the vendor:
(1) is required to submit a disclosure form under
Section 176A.002; and
(2) knowingly fails to submit the disclosure form with
the appropriate local governmental entity before the 31st day after
the date the local governmental entity mails notice to the vendor as
required by Section 176A.003, if that notice is mailed.
(b) An offense under this section is a Class C misdemeanor.
(c) It is a defense to prosecution under this section that
the local governmental entity to which the vendor is required to
submit the disclosure form failed to create or update a complete
list of all local government officers of the local governmental
entity required by Section 176A.004.
Sec. 176A.007. COMMISSION ADVISORY OPINION. (a) The
commission may prepare a written advisory opinion answering the
request of a person subject to this chapter for an advisory opinion
about the application of this chapter to the person regarding a
specified existing or hypothetical factual situation.
(b) A request for an advisory opinion must be made in
writing to the commission.
(c) If the commission prepares an advisory opinion under
this section, Sections 571.093, 571.096, and 571.097, Government
Code, apply to the request and advisory opinion in the same manner
as those sections apply to a request or advisory opinion issued
under Section 571.091 of that code.
Sec. 176A.008. COMMISSION RULES. (a) The commission shall
adopt rules necessary to implement this chapter.
(b) The commission by rule shall prescribe the disclosure
form required to be submitted under Section 176A.002.
SECTION 2. Sections 176.003(a) and (e), Local Government
Code, are amended to read as follows:
(a) A local government officer shall file a conflicts
disclosure statement with respect to a vendor if:
(1) the vendor enters into a contract with the local
governmental entity [or the local governmental entity is
considering entering into a contract with the vendor]; and
(2) the vendor:
(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 has been executed; or
[(ii) the local governmental entity is
considering entering into a contract with the vendor;]
(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 in the 12-month period preceding
the date the officer becomes aware that:
[(i) a contract between the local
governmental entity and vendor 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.
(e) 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), 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 during
the 12-month period described by Subsection (a)(2)(B) if the
aggregate value of the gifts accepted by the officer or a family
member from that vendor exceeds $100];
(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)(A) [(a)(2)(B)]; and
(3) the signature of the local government officer
acknowledging that the statement is made under oath under penalty
of perjury.
SECTION 3. Sections 176.006(a) and (a-1), Local Government
Code, are amended to read as follows:
(a) A vendor shall file a completed conflict of interest
questionnaire if the vendor has [a business relationship with a
local governmental entity and]:
(1) [has] an employment or other business relationship
with a local government 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 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:
(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 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 has given one or more gifts
described by Subsection (a); or
[(C)] of a family relationship with a local
government officer.
SECTION 4. Section 176.009, Local Government Code, is
amended to read as follows:
Sec. 176.009. POSTING ON INTERNET. [(a)] A local
governmental entity that maintains an Internet website shall post
each statement and questionnaire [provide access to the statements
and to questionnaires required to be] filed under this chapter on
the [that] website not later than the 30th day after the date the
statement or questionnaire is filed. The local governmental entity
shall maintain the posting at least until the date the entity is no
longer required to maintain the statement or questionnaire under
Section 176.0065(2). [This subsection does not require a local
governmental entity to maintain an Internet website.]
SECTION 5. The following provisions of the Local Government
Code are repealed:
(1) Section 176.001(2-b);
(2) Sections 176.003(a-1) and (a-2); and
(3) Section 176.013(e).
SECTION 6. A local governmental entity, as defined by
Chapter 176A, Local Government Code, as added by this Act, shall
create and make available the complete list of all local government
officers required by Section 176A.004 of that chapter as soon as
practicable after the effective date of this Act, but not later than
January 1, 2018.
SECTION 7. The Texas Ethics Commission shall adopt rules
necessary to implement Chapter 176A, Local Government Code, as
added by this Act, and shall prescribe the disclosure form required
to be submitted under that chapter as soon as practicable after the
effective date of this Act, but not later than January 1, 2018.
SECTION 8. The changes in law made by Chapter 176, Local
Government Code, as amended by this Act, apply 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.
SECTION 9. The changes in law made by Chapter 176A, Local
Government Code, as added by this Act, apply only to an event
requiring disclosure that occurs on or after January 1, 2018.
SECTION 10. 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, 2017.