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  85R7578 ATP-F
 
  By: Taylor of Collin, et al. S.B. No. 14
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the ethics of public officers and related requirements;
  creating criminal offenses.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1.  PENSION REVOCATION; LOSS OF LEGISLATIVE OFFICE
         SECTION 1.01.  Chapter 810, Government Code, is amended by
  adding Section 810.002 to read as follows:
         Sec. 810.002.  CERTAIN ELECTED OFFICIALS INELIGIBLE FOR
  RETIREMENT ANNUITY. (a)  In this section:
               (1)  "Governing body of a public retirement system" and
  "public retirement system" have the meanings assigned by Section
  802.001.
               (2)  "Qualifying felony" means any felony involving:
                     (A)  bribery;
                     (B)  the embezzlement, extortion, or other theft
  of public money;
                     (C)  perjury;
                     (D)  coercion of public servant or voter;
                     (E)  tampering with governmental record;
                     (F)  misuse of official information;
                     (G)  conspiracy or the attempt to commit any of
  the offenses described by Paragraphs (A)-(F); or
                     (H)  abuse of official capacity.
         (b)  This section applies only to a person who is:
               (1)  a member of the elected class of the Employees
  Retirement System of Texas as described by Section 812.002(a)(1) or
  (2); or
               (2)  otherwise eligible for membership in a public
  retirement system wholly or partly because the person held an
  elected office.
         (c)  Except as provided by Subsection (d), a member of a
  public retirement system is not eligible to receive a service
  retirement annuity under the retirement system if the member is
  convicted of a qualifying felony committed while in office and
  arising directly from the official duties of that elected office.
         (d)  The retirement system shall suspend payments of an
  annuity to a person ineligible to receive the annuity under
  Subsection (c). A person whose conviction is overturned on appeal
  or who meets the requirements for innocence under Section
  103.001(a)(2), Civil Practice and Remedies Code:
               (1)  is entitled to receive an amount equal to the
  accrued total of payments and interest earned on the payments
  withheld during the suspension period; and
               (2)  may resume receipt of annuity payments on payment
  to the retirement system of an amount equal to the contributions
  refunded to the person under Subsection (e).
         (e)  A member who is ineligible to receive a service
  retirement annuity under Subsection (c) is entitled to a refund of
  the member's service retirement annuity contributions, including
  interest earned on those contributions.
         (f)  Benefits payable to an alternate payee under Chapter 804
  who is recognized by a domestic relations order established before
  January 8, 2019, are not affected by a member's ineligibility to
  receive a service retirement annuity under Subsection (c).
         (g)  On conviction of a member for a qualifying felony, a
  court may, in the interest of justice and in the same manner as in a
  divorce proceeding, award half of the service retirement annuity
  forfeited by the member as the separate property of an innocent
  spouse if the annuity is partitioned or exchanged by written
  agreement of the spouses as provided by Subchapter B, Chapter 4,
  Family Code. The amount awarded to the innocent spouse may not be
  converted to community property.
         (h)  Ineligibility for a service retirement annuity under
  this section does not impair a person's right to any other
  retirement benefit for which the person is eligible.
         (i)  The governing body of a public retirement system shall
  adopt rules and procedures to implement this section.
         SECTION 1.02.  Chapter 601, Government Code, is amended by
  adding Section 601.011 to read as follows:
         Sec. 601.011.  VACANCY ON FINAL FELONY CONVICTION OF MEMBER
  OF LEGISLATURE, GOVERNOR, OR STATE ELECTED OFFICIAL. A member of
  the legislature, the governor, or a state elected official
  convicted of a felony vacates the member's, governor's, or
  official's office on the date the conviction becomes final.
  ARTICLE 2.  DISCLOSURE REQUIREMENTS
         SECTION 2.01.  Section 572.023, Government Code, is amended
  by amending Subsection (b) and adding Subsections (e) and (f) 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 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 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, in accordance with the contract between the
  person contracting with the governmental entity and the individual
  or entity described by Paragraph (B); 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.
         SECTION 2.02.  Section 572.0252, Government Code, is amended
  to read as follows:
         Sec. 572.0252.  INFORMATION ABOUT LEGAL REFERRALS. A state
  officer who is an attorney shall report on the financial statement:
               (1)  making or receiving any referral for compensation
  for legal 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 legal 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 legal fee, 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].
  ARTICLE 3. REPORTING OF LOBBYIST EXPENDITURES
         SECTION 3.01.  Section 305.0061, Government Code, is amended
  by amending Subsections (a), (b), and (c) and adding Subsection (h)
  to read as follows:
         (a)  If a registrant or a person on the registrant's behalf
  and with the registrant's consent or ratification makes
  expenditures that exceed 30 [60] percent of the amount of the
  legislative per diem in a day for transportation or lodging for a
  member of the legislative or executive branch or for the immediate
  family of a member of the legislative or executive branch, the
  registrant shall also state the following on the report filed under
  Section 305.006:
               (1)  the name of the member of the legislative or
  executive branch in whose behalf the expenditure is made;
               (2)  the place and date of the transportation or
  lodging; and
               (3)  the purpose of the transportation or lodging.
         (b)  If a registrant or a person on the registrant's behalf
  and with the registrant's consent or ratification makes
  expenditures that exceed 30 [60] percent of the amount of the
  legislative per diem in a day for food and beverages for a member of
  the legislative or executive branch or for the immediate family of a
  member of the legislative or executive branch or makes expenditures
  that exceed 30 [60] percent of the amount of the legislative per
  diem in a day for entertainment for a member of the legislative or
  executive branch or for the immediate family of a member of the
  legislative or executive branch, the registrant shall also state
  the following on the report filed under Section 305.006:
               (1)  the name of the member of the legislative or
  executive branch in whose behalf the expenditure is made;
               (2)  the place and date of the expenditure; and
               (3)  the amount of the expenditure by the appropriate
  category of the amount, as determined by the commission.
         (c)  If a registrant or a person on the registrant's behalf
  and with the registrant's consent or ratification gives to a member
  of the legislative or executive branch, or to the immediate family
  of a member of the legislative or executive branch, a gift or an
  award or memento, the value of which exceeds $50 per gift, award, or
  memento, the registrant shall also state the following on the
  report filed under Section 305.006:
               (1)  the name of the member of the legislative or
  executive branch in whose behalf the expenditure is made;
               (2)  a general description of the gift, award, or
  memento; and
               (3)  the amount of the expenditure by the appropriate
  category of the amount, as determined by the commission.
         (h)  If more than one registrant or persons acting on behalf
  of more than one registrant and with each registrant's consent or
  ratification collaborate to make an expenditure described by
  Section 305.006(b) together, each registrant shall report the total
  value of the shared expenditure as required by Subsection (a), (b),
  or (c), if the total value of the shared expenditure exceeds the
  amount provided under Subsection (a), (b), or (c).
         SECTION 3.02.  Section 305.024(a), Government Code, as
  amended by Chapters 92 (S.B. 1011) and 206 (H.B. 1508), Acts of the
  79th Legislature, Regular Session, 2005, is reenacted and amended
  to read as follows:
         (a)  Except as provided by Section 305.025, a person
  registered under Section 305.005 or a person on the registrant's
  behalf and with the registrant's consent or ratification may not
  offer, confer, or agree to confer:
               (1)  to an individual described by Section
  305.0062(a)(1), (2), (3), (4), or (5):
                     (A)  a loan, including the guarantee or
  endorsement of a loan; or
                     (B)  a gift of cash or a negotiable instrument as
  described by Section 3.104, Business & Commerce Code; or
               (2)  to an individual described by Section
  305.0062(a)(1), (2), (3), (4), (5), (6), or (7):
                     (A)  an expenditure for transportation and
  lodging;
                     (B)  an expenditure or series of expenditures for
  entertainment that in the aggregate exceed $500 in a calendar year;
                     (C)  an expenditure or series of expenditures for
  gifts that in the aggregate exceed $500 in a calendar year;
                     (D)  an expenditure for an award or memento that
  exceeds $500; or
                     (E)  an expenditure described by Section
  305.006(b)(1), (2), (3), or (6) unless:
                           (i) [(A)]  the registrant is present at the
  event; or
                           (ii) [(B)]  the expenditure is for a gift of
  food or beverages required to be reported under Section
  305.006(b)(4) in accordance with Section 305.0061(e-1).
         SECTION 3.03.  Section 305.024, Government Code, is amended
  by adding Subsection (d) to read as follows:
         (d)  The registrant shall notify a member of the legislative
  or executive branch when the registrant has reported, as to that
  member of the legislative or executive branch, expenditures that,
  in the aggregate, equal the monetary limits for expenditures under
  Subsection (a)(2).
         SECTION 3.04.  Section 305.031(a), Government Code, is
  amended to read as follows:
         (a)  A person commits an offense if the person intentionally
  or knowingly violates a provision of this chapter other than
  Section 305.022, 305.024(d), or 305.028. An offense under this
  subsection is a Class A misdemeanor.
         SECTION 3.05.  Section 305.024(c), Government Code, is
  repealed.
  ARTICLE 4. ELECTED OFFICIALS PROHIBITED FROM LOBBYING
         SECTION 4.01.  Section 141.001, Election Code, is amended by
  amending Subsection (a) and adding Subsections (e) and (f) to read
  as follows:
         (a)  To be eligible to be a candidate for, or elected or
  appointed to, a public elective office in this state, a person must:
               (1)  be a United States citizen;
               (2)  be 18 years of age or older on the first day of the
  term to be filled at the election or on the date of appointment, as
  applicable;
               (3)  have not been determined by a final judgment of a
  court exercising probate jurisdiction to be:
                     (A)  totally mentally incapacitated; or
                     (B)  partially mentally incapacitated without the
  right to vote;
               (4)  have not been finally convicted of a felony from
  which the person has not been pardoned or otherwise released from
  the resulting disabilities;
               (5)  have resided continuously in the state for 12
  months and in the territory from which the office is elected for six
  months immediately preceding the following date:
                     (A)  for a candidate whose name is to appear on a
  general primary election ballot, the date of the regular filing
  deadline for a candidate's application for a place on the ballot;
                     (B)  for an independent candidate, the date of the
  regular filing deadline for a candidate's application for a place
  on the ballot;
                     (C)  for a write-in candidate, the date of the
  election at which the candidate's name is written in;
                     (D)  for a party nominee who is nominated by any
  method other than by primary election, the date the nomination is
  made; and
                     (E)  for an appointee to an office, the date the
  appointment is made;
               (6)  on the date described by Subdivision (5), be
  registered to vote in the territory from which the office is
  elected; [and]
               (7)  not be required to be registered as a lobbyist
  under Chapter 305, Government Code; and
               (8)  satisfy any other eligibility requirements
  prescribed by law for the office.
         (e)  Except as restricted by Section 7.103(c), Education
  Code, if applicable, Subsection (a)(7) does not apply to:
               (1)  an office of a political subdivision with a
  population of 150,000 or less, other than the office of presiding
  officer of the governing body of the political subdivision,
  provided that the officeholder does not receive a salary or wage for
  that office; or
               (2)  the office of the presiding officer of the
  governing body of a political subdivision with a population of
  50,000 or less, provided that the presiding officer does not
  receive a salary or wage for that office.
         (f)  For purposes of Subsection (e), a presiding officer or
  other officeholder is not considered to have received a salary or
  wage if the officeholder refuses to accept a salary or wage offered
  or budgeted for that office.
         SECTION 4.02.  Subchapter A, Chapter 305, Government Code,
  is amended by adding Section 305.0031 to read as follows:
         Sec. 305.0031.  CERTAIN ELECTED OFFICERS MAY NOT REGISTER.
  (a) A member of Congress, a member of the legislature, or a holder
  of a statewide office may not register under this chapter.
         (b)  A registration under this chapter expires on the date a
  person takes office as a member of Congress, a member of the
  legislature, or a holder of a statewide office.
         SECTION 4.03.  Chapter 601, Government Code, is amended by
  adding Section 601.010 to read as follows:
         Sec. 601.010.  ELECTED OFFICER MAY NOT BE REGISTERED
  LOBBYIST. (a) A person may not qualify for a public elective
  office if the person is required to be registered as a lobbyist
  under Chapter 305.
         (b)  Except as restricted by Section 7.103(c), Education
  Code, if applicable, Subsection (a) does not apply to:
               (1)  an office for which the federal or state
  constitution prescribes exclusive qualification requirements;
               (2)  an office of a political subdivision with a
  population of 150,000 or less, other than the office of presiding
  officer of the governing body of the political subdivision,
  provided that the officeholder does not receive a salary or wage for
  that office; or
               (3)  the office of the presiding officer of the
  governing body of a political subdivision with a population of
  50,000 or less, provided that the presiding officer does not
  receive a salary or wage for that office.
         (c)  For purposes of Subsection (b), a presiding officer or
  other officeholder is not considered to have received a salary or
  wage if the officeholder refuses to accept a salary or wage offered
  or budgeted for that office.
  ARTICLE 5. CLOSING REVOLVING DOOR
         SECTION 5.01.  Subchapter C, Chapter 572, Government Code,
  is amended by adding Section 572.062 to read as follows:
         Sec. 572.062.  FORMER LEGISLATOR: LOBBYING RESTRICTED;
  CRIMINAL OFFENSE. (a) In this section:
               (1)  "Administrative action," "communicates directly
  with," "legislation," "member of the executive branch," and "member
  of the legislative branch" have the meanings assigned by Section
  305.002.
               (2)  "Legislative cycle" means the two-year period
  beginning on the first day of a regular legislative session and
  ending on the day before the first day of the succeeding regular
  legislative session.
         (b)  Except as provided by Subsection (c), a former member of
  the legislature may not engage in activities that require
  registration under Chapter 305 before the end of the legislative
  cycle following the legislative cycle in which the former member
  last served as a member of the legislature.
         (c)  Subsection (b) does not apply to a former member of the
  legislature who does not receive compensation other than
  reimbursement for actual expenses for communicating directly with a
  member of the legislative or executive branch to influence
  legislation or administrative action.
         (d)  A former member of the legislature who violates this
  section commits an offense. An offense under this section is a
  Class A misdemeanor.
  ARTICLE 6. PROHIBITION ON CERTAIN USES OF CAMPAIGN ACCOUNT
         SECTION 6.01.  Subchapter B, Chapter 305, Government Code,
  is amended by adding Section 305.029 to read as follows:
         Sec. 305.029.  EXPENDITURES FROM POLITICAL CONTRIBUTIONS
  RESTRICTED. (a) In this section, "political contribution" has the
  meaning assigned by Section 251.001, Election Code.
         (b)  Notwithstanding any other provision of law, a person
  required to register under this chapter may not, before the second
  anniversary of the date the last term for which the person was
  elected ends, knowingly make or authorize an expenditure under this
  chapter from political contributions accepted by the person as a
  candidate or officeholder.
  ARTICLE 7. TRANSITION; EFFECTIVE DATE
         SECTION 7.01.  (a) Section 141.001(a), Election Code, as
  amended by this Act, and Section 601.010, Government Code, as added
  by this Act, apply only to the eligibility and qualification
  requirements for a candidate or officer whose term of office will
  begin on or after the effective date of this Act. The eligibility
  and qualification requirements for a candidate or officer whose
  term of office will begin before the effective date of this Act are
  governed by the law in effect immediately before the effective date
  of this Act, and the former law is continued in effect for that
  purpose.
         (b)  The changes in law made by this Act to Sections
  305.0061, 305.024, and 305.031, Government Code, apply only to a
  gift, award, or memento given to or expenditures for
  transportation, lodging, food, beverages, or entertainment made
  for a member of the legislative or executive branch or the immediate
  family of a member of the legislative or executive branch on or
  after the effective date of this Act.  A gift, award, or memento
  given to or an expenditure for transportation, lodging, food,
  beverages, or entertainment made for a member of the legislative or
  executive branch or the immediate family of a member of the
  legislative or executive branch before the effective date of this
  Act is governed by the law in effect on the date the gift, award, or
  memento was given, or the date the expenditure for transportation,
  lodging, food, beverages, or entertainment was made, and the former
  law is continued in effect for that purpose.
         (c)  Section 305.029, Government Code, as added by this Act,
  applies to a political contribution, political expenditure, or
  lobbying expenditure made on or after January 8, 2019, from funds
  accepted as a political contribution, regardless of the date the
  funds were accepted.
         (d)  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.
         (e)  Section 572.062, Government Code, as added by this Act,
  applies only to a member of the legislature who ceases to be a
  member on or after the effective date of this Act.
         (f)  Section 810.002, Government Code, as added by this Act,
  applies only to a member of a public retirement system who holds or
  has held elected office and, on or after the effective date of this
  Act, commits an offense that is a qualifying felony as defined by
  that section. A person who commits a qualifying felony before the
  effective date of this Act is subject to the law in effect on the
  date the offense was committed, and the former law is continued in
  effect for that purpose. For purposes of this subsection, an
  offense was committed before the effective date of this Act if any
  element of the offense occurred before that date.
         SECTION 7.02.  This Act takes effect January 8, 2019.