Bill Text: TX HB3736 | 2015-2016 | 84th Legislature | Enrolled
Bill Title: Relating to conflicts of interest by members of state agency governing boards and governing officers and the contents and amendment of financial statements filed by certain persons; creating a criminal offense.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Vetoed) 2015-06-20 - Vetoed by the Governor [HB3736 Detail]
Download: Texas-2015-HB3736-Enrolled.html
H.B. No. 3736 |
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relating to conflicts of interest by members of state agency | ||
governing boards and governing officers and the contents and | ||
amendment of financial statements filed by certain persons; | ||
creating a criminal offense. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 572.023, Government Code, is amended by | ||
amending Subsections (a) and (b) and adding Subsection (e) to read | ||
as follows: | ||
(a) A financial statement must include an account of the | ||
financial activity for the preceding calendar year of: | ||
(1) any property characterized as separate property | ||
under Section 3.001, Family Code, of the individual required by | ||
this subchapter to file a financial statement; | ||
(2) any community property of which the individual | ||
required by this subchapter to file a financial statement has sole | ||
management, control, and disposition as provided by Section | ||
3.102(a), Family Code; | ||
(3) any community property of the individual required | ||
by this subchapter to file a financial statement, if the individual | ||
exercised both factual and legal control over the activity; and | ||
(4) [ |
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individual's [ |
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exercised or held the right to exercise any degree of legal or | ||
factual [ |
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(b) The account of financial activity consists of: | ||
(1) a list of all sources of occupational income, | ||
identified by employer, or if self-employed, by the nature of the | ||
occupation, including identification of a person or other | ||
organization from which the individual or a business in which the | ||
individual has a substantial interest received a fee as a retainer | ||
for a claim on future services in case of need, as distinguished | ||
from a fee for services on a matter specified at the time of | ||
contracting for or receiving the fee, if professional or | ||
occupational services are not actually performed during the | ||
reporting period equal to or in excess of the amount of the | ||
retainer, and the category of the amount of the fee; | ||
(2) identification by name and the category of the | ||
number of shares of stock of any business entity held or acquired, | ||
and if sold, the category of the amount of net gain or loss realized | ||
from the sale; | ||
(3) a list of all bonds, notes, and other commercial | ||
paper held or acquired, and if sold, the category of the amount of | ||
net gain or loss realized from the sale; | ||
(4) identification of each source and the category of | ||
the amount of income in excess of $500 derived from each source from | ||
interest, dividends, royalties, and rents; | ||
(5) identification of each guarantor of a loan and | ||
identification of each person or financial institution to whom a | ||
personal note or notes or lease agreement for a total financial | ||
liability in excess of $1,000 existed at any time during the year | ||
and the category of the amount of the liability; | ||
(6) identification by description of all beneficial | ||
interests in real property and business entities held or acquired, | ||
and if sold, the category of the amount of the net gain or loss | ||
realized from the sale; | ||
(7) identification of a person or other organization | ||
from which the individual or the individual's spouse or dependent | ||
children received a gift of anything of value in excess of $250 and | ||
a description of each gift, except: | ||
(A) a gift received from an individual related to | ||
the individual at any time within the second degree by | ||
consanguinity or affinity, as determined under Subchapter B, | ||
Chapter 573; | ||
(B) a political contribution that was reported as | ||
required by Chapter 254, Election Code; and | ||
(C) an expenditure required to be reported by a | ||
person required to be registered under Chapter 305; | ||
(8) identification of the source and the category of | ||
the amount of all income received as beneficiary of a trust, other | ||
than a blind trust that complies with Subsection (c), and | ||
identification of each trust asset, if known to the beneficiary, | ||
from which income was received by the beneficiary in excess of $500; | ||
(9) identification by description and the category of | ||
the amount of all assets and liabilities of a corporation, firm, | ||
partnership, limited partnership, limited liability partnership, | ||
professional corporation, professional association, joint venture, | ||
or other business association in which 50 percent or more of the | ||
outstanding ownership was held, acquired, or sold; | ||
(10) a list of all boards of directors of which the | ||
individual is a member and executive positions that the individual | ||
holds in corporations, firms, partnerships, limited partnerships, | ||
limited liability partnerships, professional corporations, | ||
professional associations, joint ventures, or other business | ||
associations or proprietorships, stating the name of each | ||
corporation, firm, partnership, limited partnership, limited | ||
liability partnership, professional corporation, professional | ||
association, joint venture, or other business association or | ||
proprietorship and the position held; | ||
(11) identification of any person providing | ||
transportation, meals, or lodging expenses permitted under Section | ||
36.07(b), Penal Code, and the amount of those expenses, other than | ||
expenditures required to be reported under Chapter 305; | ||
(12) any corporation, firm, partnership, limited | ||
partnership, limited liability partnership, professional | ||
corporation, professional association, joint venture, or other | ||
business association, excluding a publicly held corporation, in | ||
which both the individual and a person registered under Chapter 305 | ||
have an interest; | ||
(13) identification by name and the category of the | ||
number of shares of any mutual fund held or acquired, and if sold, | ||
the category of the amount of net gain or loss realized from the | ||
sale; [ |
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(14) identification of each blind trust that complies | ||
with Subsection (c), including: | ||
(A) the category of the fair market value of the | ||
trust; | ||
(B) the date the trust was created; | ||
(C) the name and address of the trustee; and | ||
(D) a statement signed by the trustee, under | ||
penalty of perjury, stating that: | ||
(i) the trustee has not revealed any | ||
information to the individual, except information that may be | ||
disclosed under Subdivision (8); and | ||
(ii) to the best of the trustee's knowledge, | ||
the trust complies with this section; | ||
(15) if the aggregate cost of goods or services sold | ||
under one or more written contracts described by this subdivision | ||
exceeds $10,000 in the year covered by the report, identification | ||
of each written contract, including the name of each party to the | ||
contract: | ||
(A) for the sale of: | ||
(i) goods in the amount of $2,500 or more; | ||
or | ||
(ii) services, including professional | ||
services as defined by Section 2254.002, consulting services as | ||
defined by Section 2254.021, or legal counsel, in the amount of | ||
$5,000 or more; | ||
(B) to which the individual or any business | ||
entity of which the individual has at least a 50 percent ownership | ||
interest is a party; and | ||
(C) with: | ||
(i) a governmental entity; or | ||
(ii) a person who contracts with a | ||
governmental entity, to fulfill one or more of the person's | ||
obligations to the governmental entity under that contract; | ||
(16) if the individual is a member of the legislature | ||
and provides bond counsel services to an issuer, as defined by | ||
Section 1201.002(1), identification of the following for each | ||
issuance for which the individual served as bond counsel: | ||
(A) the amount of the issuance; | ||
(B) the name of the issuer; | ||
(C) the date of the issuance; | ||
(D) the amount of fees paid to the individual, | ||
and whether the amount is: | ||
(i) less than $5,000; | ||
(ii) at least $5,000 but less than $10,000; | ||
(iii) at least $10,000 but less than | ||
$25,000; or | ||
(iv) $25,000 or more; and | ||
(E) the amount of fees paid to the individual's | ||
firm, if applicable, and whether the amount is: | ||
(i) less than $5,000; | ||
(ii) at least $5,000 but less than $10,000; | ||
(iii) at least $10,000 but less than | ||
$25,000; or | ||
(iv) $25,000 or more; and | ||
(17) identification of any other source of earned or | ||
unearned income not reported under another provision of this | ||
subsection, including public benefits or a pension, individual | ||
retirement account, or other retirement plan, and the category of | ||
the amount of income derived from each source. | ||
(e) In this section, "governmental entity" means the state, | ||
a political subdivision of the state, or an agency or department of | ||
the state or a political subdivision of the state. | ||
SECTION 2. Subchapter B, Chapter 572, Government Code, is | ||
amended by adding Section 572.0295 to read as follows: | ||
Sec. 572.0295. AMENDMENT OF STATEMENT. (a) A person who | ||
files a financial statement under this chapter may amend the | ||
statement. | ||
(b) A financial statement that is amended before the eighth | ||
day after the date the original statement was filed is considered to | ||
have been filed on the date on which the original statement was | ||
filed. | ||
SECTION 3. Subtitle B, Title 5, Government Code, is amended | ||
by adding Chapter 576 to read as follows: | ||
CHAPTER 576. CONFLICT OF INTEREST BY STATE AGENCY GOVERNING BOARD | ||
MEMBER OR OFFICER | ||
Sec. 576.001. DEFINITIONS. In this chapter: | ||
(1) "Conflict of interest" means the conflict between | ||
an official decision made by a state agency governing board member | ||
or governing officer in the individual's official capacity and the | ||
individual's private financial interest in which the individual | ||
realizes any pecuniary gain, if the pecuniary gain accrued to the | ||
individual as a member of a class of persons, including an | ||
occupation, profession, or industry, to a greater extent than any | ||
other member of the class. | ||
(2) "Financial interest" means ownership or control, | ||
directly or indirectly, of an ownership interest of at least five | ||
percent in a person, including the right to share in profits, | ||
proceeds, or capital gains, or an ownership interest that an | ||
individual could reasonably foresee could result in any financial | ||
benefit to the individual. The term does not include an interest in | ||
a retirement plan, a blind trust, insurance coverage, or capital | ||
gains. | ||
(3) "Rule" means all or part of a statement of a state | ||
agency that is of general or particular applicability and of future | ||
effect designed to implement, interpret, or prescribe law or policy | ||
for the state agency or to describe the organization, procedure, or | ||
practice requirements of the state agency. | ||
(4) "State agency" means a board, commission, council, | ||
committee, department, office, agency, or other governmental | ||
entity in the executive branch of state government. | ||
Sec. 576.002. DUTY TO DISCLOSE AND REFRAIN FROM | ||
PARTICIPATION. (a) Except as provided by Subsection (b) or (c), in | ||
each matter before the governing board of a state agency or, if the | ||
agency is not governed by a multimember governing board, the | ||
officer who governs the agency, for which a member of the board or | ||
officer, as applicable, has a conflict of interest, the individual: | ||
(1) shall disclose in writing the conflict of interest | ||
to the agency; and | ||
(2) may not participate in the decision on the matter. | ||
(b) If a majority of the members of the governing board of a | ||
state agency has a conflict of interest related to a matter before | ||
the board or, if the agency is not governed by a multimember | ||
governing board, the officer who governs the agency has a conflict | ||
of interest on the matter, the board or officer may decide the | ||
matter only if: | ||
(1) each member, or the officer, as applicable, who | ||
has a conflict of interest discloses in writing the conflict of | ||
interest to the agency; and | ||
(2) the board, or officer, as applicable, makes a | ||
finding that an emergency exists that requires a decision on the | ||
matter despite the conflict of interest. | ||
(c) The duty to disclose a conflict of interest and refrain | ||
from participation in the decision on a matter for a member of the | ||
governing board of an institution of higher education, as those | ||
terms are defined by Section 61.003, Education Code, is governed by | ||
Section 51.923, Education Code. | ||
Sec. 576.003. PUBLIC INFORMATION. A written disclosure | ||
made under Section 576.002 is public information. | ||
Sec. 576.004. REPORT TO TEXAS ETHICS COMMISSION; RULES. | ||
(a) A state agency that receives a written disclosure under Section | ||
576.002 shall file a copy of the disclosure with the Texas Ethics | ||
Commission. | ||
(b) The Texas Ethics Commission may adopt the rules | ||
necessary to implement this chapter, including rules on the | ||
disclosure to be filed with the commission under Subsection (a). | ||
Sec. 576.005. CRIMINAL PENALTY. (a) An individual commits | ||
an offense if the individual knowingly fails to comply with Section | ||
576.002. | ||
(b) An offense under this section is a Class B misdemeanor. | ||
Sec. 576.006. EXEMPTION. This chapter does not apply to: | ||
(1) the consideration of a proposed rule; or | ||
(2) a vote to adopt a proposed rule. | ||
SECTION 4. 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, 576, and 2004; | ||
(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 5. The changes in law made by this Act apply only to | ||
a financial statement filed under Subchapter B, Chapter 572, | ||
Government Code, as amended by this Act, on or after September 1, | ||
2015. A financial statement filed before September 1, 2015, is | ||
governed by the law in effect on the date of filing, and the former | ||
law is continued in effect for that purpose. | ||
SECTION 6. This Act takes effect September 1, 2015. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 3736 was passed by the House on May | ||
11, 2015, by the following vote: Yeas 135, Nays 0, 2 present, not | ||
voting; that the House refused to concur in Senate amendments to | ||
H.B. No. 3736 on May 28, 2015, and requested the appointment of a | ||
conference committee to consider the differences between the two | ||
houses; and that the House adopted the conference committee report | ||
on H.B. No. 3736 on May 31, 2015, by the following vote: Yeas 141, | ||
Nays 0, 2 present, not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 3736 was passed by the Senate, with | ||
amendments, on May 26, 2015, by the following vote: Yeas 31, Nays | ||
0; at the request of the House, the Senate appointed a conference | ||
committee to consider the differences between the two houses; and | ||
that the Senate adopted the conference committee report on H.B. No. | ||
3736 on May 31, 2015, by the following vote: Yeas 28, Nays 3. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: __________________ | ||
Date | ||
__________________ | ||
Governor |