Bill Text: TX HB1473 | 2019-2020 | 86th Legislature | Comm Sub


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

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2019-05-09 - Committee report sent to Calendars [HB1473 Detail]

Download: Texas-2019-HB1473-Comm_Sub.html
  86R29338 TJB-D
 
  By: Middleton, Dominguez, Bohac, Rosenthal, H.B. No. 1473
      Biedermann
 
  Substitute the following for H.B. No. 1473:
 
  By:  Bohac C.S.H.B. No. 1473
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to disclosure of certain relationships with local
  government officers and vendors.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 176.001(1), (1-a), (2), and (2-d),
  Local Government Code, are amended 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
  a subcontractor and an employee.
               (1-a)  "Business relationship" means a connection
  between two or more parties based on commercial activity of one of
  the parties.  [The term does not include a connection based on:
                     [(A)     a transaction that is subject to rate or fee
  regulation by a federal, state, or local governmental entity or an
  agency of a federal, state, or local governmental entity;
                     [(B)     a transaction conducted at a price and
  subject to terms available to the public; or
                     [(C)     a purchase or lease of goods or services
  from a person that is chartered by a state or federal agency and
  that is subject to regular examination by, and reporting to, that
  agency.]
               (2)  "Family member" means a person related to another
  person within the third [first] degree by consanguinity or the
  second degree by affinity, as determined under [described by]
  Subchapter B, Chapter 573, Government Code.
               (2-d)  "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 other than
  an investment in a:
                           (i)  mutual fund; or
                           (ii)  publicly traded company with a market
  capitalization of $2 billion or more; [or]
                     (C)  a personal or business loan; or
                     (D)  a trust.
         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, or a business entity in which the officer or
  a family member of the officer holds an ownership interest or is an
  employee, that results in the officer, [or] family member, or
  business entity receiving taxable income, including [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 an employment or other business
  relationship with the local government officer, a family member of
  the officer, or a business entity in which the officer or a family
  member of the officer holds an ownership interest or is an employee,
  that the officer anticipates will result in the officer, family
  member, or business entity receiving any amount of taxable income,
  including investment income, in the future;
                     (C)  has given to the local government officer,
  [or] a family member of the officer, or a business entity in which
  the officer or a family member of the officer holds an ownership
  interest or is an employee, 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
                     (D) [(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) or (B), including the nature and
  extent of the relationship; and
                     (B)  gifts accepted by the local government
  officer, [and] any family member of the officer, and any business
  entity in which the officer or a family member of the officer holds
  an ownership interest or is an employee, from a vendor during the
  12-month period described by Subsection (a)(2)(C) [(a)(2)(B)] if
  the aggregate value of the gifts accepted by the officer, [or a]
  family member, or business entity from that vendor exceeds $100;
               (2)  an acknowledgment from the local government
  officer that:
                     (A)  the disclosure applies to each:
                           (i)  family member of the officer; and
                           (ii)  business entity in which the officer
  or a family member of the officer holds an ownership interest or is
  an employee; and
                     (B)  the statement covers the 12-month period
  described by Subsection (a)(2)(C) [(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), (a-1), and (c), 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
  described by Section 176.003(a)(2)(A) or (B) with a local
  government officer of that local governmental entity, [or] a family
  member of the officer, or a business entity in which the officer or
  a family member of the officer holds an ownership interest or is an
  employee [described by Section 176.003(a)(2)(A)];
               (2)  has given a local government officer of that local
  governmental entity, [or] a family member of the officer, or a
  business entity in which the officer or a family member of the
  officer holds an ownership interest or is an employee, one or more
  gifts with the aggregate value specified by Section
  176.003(a)(2)(C) [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)(1) [(a)];
                     (B)  that the vendor has given one or more gifts
  described by Subsection (a)(2) [(a)]; or
                     (C)  of a family relationship with a local
  government officer.
         (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 filing the
  questionnaire:
               (1)  describe each employment or business [and family]
  relationship described by Section 176.003(a)(2)(A) or (B) the
  vendor has with each local government officer of the local
  governmental entity, a family member of the officer, or a business
  entity in which the officer or a family member of the officer holds
  an ownership interest or is an employee;
               (2)  describe each family relationship the vendor has
  with each local government officer of the local governmental
  entity;
               (3)  identify each employment or business relationship
  described by Subdivision (1) with respect to which the local
  government officer, a family member of the officer, or a business
  entity in which the officer or a family member of the officer holds
  an ownership interest or is an employee, receives, or is likely to
  receive, taxable income, including [other than] investment income,
  from the vendor;
               (4) [(3)]  identify each employment or business
  relationship described by Subdivision (1) with respect to which the
  vendor receives, or is likely to receive, taxable income, including
  [other than] investment income, that:
                     (A)  is received from, or at the direction of, a
  local government officer of the local governmental entity, a family
  member of the officer, or a business entity in which the officer or
  a family member of the officer holds an ownership interest or is an
  employee; and
                     (B)  is not received from the local governmental
  entity; and
               (5) [(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 percent
  or more].
         SECTION 4.  Not later than December 1, 2019, the Texas Ethics
  Commission shall adopt a conflicts disclosure statement consistent
  with Section 176.003, Local Government Code, as amended by this
  Act, and a conflict of interest questionnaire consistent with
  Section 176.006, Local Government Code, as amended by this Act.
         SECTION 5.  The changes in law made by this Act apply only to
  an event requiring disclosure that occurs on or after January 1,
  2020. An event requiring disclosure that occurs before that date is
  governed by the law applicable to the event immediately before that
  date, and the former law is continued in effect for that purpose.
         SECTION 6.  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, 2019.
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