Bill Caption

Relating to conflicts of interest by members of state agency governing boards; creating a criminal offense.

Fiscal Notes

No significant fiscal implication to the State is anticipated.

Bill Analysis

This legislation would amend the Government Code to require those who serve as member of a state agency governing board or state agency officer that governs an agency, that does not have a governing board, and who are in a position to receive a pecuniary gain from a governing board or agency decision, to disclose the conflict of interest in writing to the state agency.

Also under this bill those who meet the above criteria are also subject:

• To not participating in the decision on the matter.
• If a majority of a governing board has a conflict of interest,  each member must provide a written disclosure.
• The board would be authorized to make decisions despite the conflict of interest, if determined the issue is an emergency in nature.

All required disclosures would need to be filed with the Texas Ethics Commission, and a criminal penalty is created if an individual causes an offense if they knowingly fail to comply with necessary disclosure requirements. The penalty is a class B misdemeanor. 

Vote Recommendation Notes

We support this legislation under personal responsibility.  It is necessary and just for those serving on governing boards funded by taxpayers to disclose any potential conflicts of interest in which the individual might benefit based on decisions made by the board or agency for which they serve.