Bill Text: TX HB18 | 2017 | 85th Legislature 1st Special Session | Introduced
Bill Title: Relating to conflicts of interest of members of state agency governing boards and governing officers; creating a criminal offense.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-08-06 - Committee report sent to Calendars [HB18 Detail]
Download: Texas-2017-HB18-Introduced.html
| 85S11718 MK-F | ||
| By: Davis of Harris | H.B. No. 18 | |
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| relating to conflicts of interest of members of state agency | ||
| governing boards and governing officers; creating a criminal | ||
| offense. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subtitle B, Title 5, Government Code, is amended | ||
| by adding Chapter 576 to read as follows: | ||
| CHAPTER 576. CONFLICT OF INTEREST OF 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. | ||
| (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) "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. | ||
| SECTION 2. 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 3. This Act takes effect December 1, 2017. | ||
