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.