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

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-Comm_Sub.html

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85R27711 TJB-F
By: Davis of Harris H.B. No. 2473
Substitute the following for H.B. No. 2473:
By: Davis of Harris C.S.H.B. No. 2473

A BILL TO BE ENTITLED
AN ACT
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.
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," "contract," "family
member," "goods," "local governmental entity," and "services" 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; and
(B) is not required to be reported by a vendor
under law other than under this chapter.
(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;
(B) food or beverages accepted by a local
government officer as the guest of a vendor; or
(C) a political contribution as defined by
Section 251.001, Election Code.
(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) a local government officer of the local
governmental entity; or
(B) a family member of 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:
(i) a local government officer of the local
governmental entity; or
(ii) a family member of 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 or a family
member of a local government officer, stated as a total amount for
each officer and family member that accepted a gift from the vendor.
(c) For purposes of this section:
(1) the value or dollar amount of a gift for which a
receipt is issued, other than an admission ticket to an event, is
the price paid by the vendor for the gift; and
(2) the value or dollar amount of a gift that is an
admission ticket to an event is:
(A) the price printed on the admission ticket; or
(B) the initial price paid to the first seller of
the admission ticket if the price is not printed on the ticket.
(d) 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:
(1) an organization that 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) of that code;
or
(2) a political committee as defined by Section
251.001, Election Code.
Sec. 176A.003. OFFENSE. (a) A vendor commits an offense if
the vendor:
(1) is required to submit a completed disclosure form
under Section 176A.002; and
(2) knowingly fails to submit the completed disclosure
form to the appropriate local governmental entity before the 15th
day of the first month of the calendar quarter following the
calendar quarter in which the form was required to be submitted
under Section 176A.002.
(b) An offense under this section is a Class C misdemeanor.
Sec. 176A.004. 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.005. 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. 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);
(3) Section 176.006(i); and
(4) Section 176.013(e).
SECTION 5. 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 6. (a) Except as provided by Subsection (b) of this
section, the changes in law made by this Act to 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.
(b) The change in law made by this Act by the repeal of
Section 176.006(i), Local Government Code, applies only to a
contract that is entered into on or after the effective date of this
Act. A contract entered into before the effective date of this Act
is governed by the law as it existed immediately before the
effective date of this Act, and that law is continued in effect for
that purpose.
SECTION 7. Chapter 176A, Local Government Code, as added by
this Act, applies only to an event requiring disclosure that occurs
on or after January 1, 2018.
SECTION 8. 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.