HBA-CBW C.S.H.B. 1168 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 1168 By: Wilson State Affairs 3/30/2001 Committee Report (Substituted) 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. C.S.H.B. 1168 prohibits a lobbyist from representing opposing parties, except under certain conditions, and provides penalties for violators. 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 C.S.H.B. 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 except under certain conditions. The bill prohibits a lobbyist, except under certain conditions, 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. The bill requires the lobbyist to withdraw from any representation that is in conflict or becomes improper under the Act. The bill prohibits the lobbyist's employer or partner 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 authorizes the commission to receive complaints regarding a violation of the 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 authorizes the commission to rescind the person's registration and to prohibit the person from registering with the commission for a period not to exceed two years from the date of the rescission. The bill provides that if the person knowingly violates the conflict of interest provision in the Act, the person commits a Class B misdemeanor. EFFECTIVE DATE September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 1168 modifies the original to authorize a registrant (lobbyist) to represent opposing parties in communicating directly with a member or the legislative or executive branch to influence the same or different legislation or administration action if certain conditions are met. The original bill did not allow a lobbyist to represent opposing parties regarding the same legislation or administrative action under any circumstances. In addition, the substitute changes the conditions that must be met for a lobbyist to represent opposing parties. The conditions added to the substitute provide that a lobbyist may represent a client if the lobbyist notifies the opposing parties and notifies the Texas Ethics Commission (commission) of the potential conflict and that notice was provided to the parties. The condition contained in the original bill that was removed specified that the lobbyist could represent a client if the affected parties consented in writing after full disclosure to the representation. The substitute also deletes the provision that 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 out of the matter, unless prior written consent is obtained from all parties to the dispute. The substitute deletes the provision requiring the lobbyist to file with the commission a report describing the legislation that the lobbyist attempted to influence. The substitute differs from the original bill by authorizing, rather than requiring, the commission to rescind the person's registration if the person violates the Act and provides that if a person knowingly violates the Act, the person commits a Class B misdemeanor. The substitute differs from the original by authorizing the commission to prohibit a person from registering with the commission for a period not to exceed two years from the date of a registration rescission, rather than prohibiting the commission from allowing a person to register with the commission until the second anniversary of a registration rescission.