Bill Text: TX HB501 | 2017-2018 | 85th Legislature | Engrossed

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

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Bill Title: Relating to personal financial statements filed by public officers and candidates, including the disclosure of certain contracts, agreements, services, and compensation in and the amendment of those statements.

Spectrum: Moderate Partisan Bill (Republican 4-1)

Status: (Passed) 2017-06-06 - Effective on . . . . . . . . . . . . . . . [HB501 Detail]

Download: Texas-2017-HB501-Engrossed.html

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By: Capriglione, Button, González of El Paso, H.B. No. 501
Fallon

A BILL TO BE ENTITLED
AN ACT
relating to the disclosure of certain contracts, agreements,
services, and compensation in personal financial statements filed
by public officers and candidates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 572.023, Government Code, is amended by
amending Subsection (b) and adding Subsections (e), (f), and (g) to
read as follows:
(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:
(A) by description of a corporation, firm,
partnership, limited partnership, limited liability partnership,
professional corporation, professional association, joint venture,
or other business association in which five percent or more of the
outstanding ownership was held, acquired, or sold; and
(B) 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; [and]
(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 goods or services in the
amount of $2,500 or more;
(B) to which the individual, the individual's
spouse, the individual's dependent child, or any business entity of
which the individual, the individual's spouse, or the individual's
dependent child, independently or in conjunction with one or more
persons described by this subsection, 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, if the individual or entity described by
Paragraph (B) performs work arising out of the contract,
subcontract, or agreement between the person and the governmental
entity for a fee; and
(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.
(e) In this section, "governmental entity" means this
state, a political subdivision of the state, or an agency or
department of the state or a political subdivision of the state.
(f) Subsection (b)(15) does not require the disclosure of an
employment contract between a school district or open-enrollment
charter school and an employee of the district or school.
(g) An individual who complies with any applicable
requirements of Sections 51.954 and 51.955, Education Code, and
Section 2252.908 of this code, in an individual capacity or as a
member or employee of an entity to which those sections apply, is
not required to include in the account of financial activity the
information described by Subsection (b)(15) unless specifically
requested by the commission to include the information.
SECTION 2. Section 572.0252, Government Code, is amended to
read as follows:
Sec. 572.0252. INFORMATION ABOUT REFERRALS. (a) A state
officer [who is an attorney] shall report on the financial
statement, unless otherwise confidential or privileged:
(1) agreements with a governmental entity, as defined
by Section 572.023(e), for making or receiving any referral for
compensation for [legal] services, if the state officer personally
enters into the agreement or directly performs the services; [and]
(2) the date the referral is made or received;
(3) the style of the case referred, if applicable; and
(4) the percentage of the fee paid or received that was
agreed to between the parties to the referral as the referral fee,
or if the referral fee is not determined as a percentage of the fee
for services, the agreed amount of the fee paid or received [the
category of the amount of any fee accepted for making a referral for
legal services].
(b) Subsection (a) does not apply to a judicial appointment
made in a civil, family, or criminal proceeding, including an
appointment as a guardian ad litem or attorney ad litem.
SECTION 3. The changes in law made by this Act to Section
572.0252, Government Code, apply only to an agreement for making or
receiving a referral entered into on or after the effective date of
this Act. An agreement entered into before the effective date of
this Act is governed by the law in effect when the agreement was
entered into, and the former law is continued in effect for that
purpose.
SECTION 4. The changes in law made by this Act to Subchapter
B, Chapter 572, Government Code, apply only to a financial
statement filed under Subchapter B, Chapter 572, Government Code,
as amended by this Act, on or after January 8, 2019. A financial
statement filed before January 8, 2019, is governed by the law in
effect on the date of filing, and the former law is continued in
effect for that purpose.
SECTION 5. This Act takes effect January 8, 2019.