HBA-CBW H.B. 1168 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1168
By: Wilson
State Affairs
2/16/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, lobbying regulation does not include a client conflict
of interest provision.  A lobbyist is not prohibited from representing
clients who are both for and against the same issue.  House Bill 1168
prohibits a lobbyist from representing opposing parties and provides
penalties when there is a violation. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 1168 amends the Government Code to prohibit a registrant
(lobbyist) from representing opposing parties in communicating directly
with a member of the legislative or executive branch to influence the same
legislation or administrative action.  The bill prohibits a lobbyist from
representing a person in communicating directly with a member of the
legislative or executive branch to influence legislation or administrative
action if the representation of that person constitutes a conflict of
interest between that person and matters involving or surrounding the
lobbyist's employment.  If such a conflict of interest exists, the bill
authorizes the lobbyist to represent a  client if  the lobbyist reasonably
believes the representation of each client will not be materially affected
and each client consents in writing to the lobbyist's representation after
full disclosure of the common representation.   

The bill prohibits a lobbyist who has represented multiple parties in a
matter relating to the same legislation or administrative action from
representing any of the parties in a dispute arising from the matter,
unless prior written consent is obtained from all parties to the dispute. 

The bill requires the lobbyist to withdraw from any representation that is
in conflict or becomes improper under this Act.  The bill prohibits other
persons associated with the lobbyist from engaging in conduct prohibited by
the Act.  The bill requires the lobbyist to affirm, under oath, compliance
with these provisions in each report filed with the Texas Ethics Commission
(commission).   

The bill requires a lobbyist to file with the commission a report
describing each legislative document in which a client has retained the
lobbyist to communicate directly with a member of the legislative or
executive branch to influence legislative action. The bill requires the
lobbyist to simultaneously notify each of the lobbyist's clients of such a
report and sets forth reporting requirements.  

The bill authorizes the commission to receive complaints regarding a
violation of this Act and, if the commission determines a violation has
occurred, to impose any penalty it may impose under another state law.
Additionally, in such situations,  the bill requires the commission to
rescind the person's registration and prohibits the commission from
allowing the person to register with the commission until the second
anniversary of the date of the  rescission.   


 
EFFECTIVE DATE

September 1, 2001.