84R18751 YDB-F
 
  By: Davis of Harris H.B. No. 3736
 
  Substitute the following for H.B. No. 3736:
 
  By:  Hunter C.S.H.B. No. 3736
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to conflicts of interest by 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 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.
               (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), 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.
         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 September 1, 2015.