CHAPTER 572. PERSONAL FINANCIAL DISCLOSURE, STANDARDS OF CONDUCT, AND CONFLICT OF INTEREST

Statutes > Texas Statutes > GOVERNMENT CODE > TITLE 5. OPEN GOVERNMENT; ETHICS > CHAPTER 572. PERSONAL FINANCIAL DISCLOSURE, STANDARDS OF CONDUCT, AND CONFLICT OF INTEREST

GOVERNMENT CODE

TITLE 5. OPEN GOVERNMENT; ETHICS

SUBTITLE B. ETHICS

CHAPTER 572. PERSONAL FINANCIAL DISCLOSURE, STANDARDS OF CONDUCT,

AND CONFLICT OF INTEREST

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 572.001. POLICY; LEGISLATIVE INTENT. (a) It is the policy

of this state that a state officer or state employee may not have

a direct or indirect interest, including financial and other

interests, or engage in a business transaction or professional

activity, or incur any obligation of any nature that is in

substantial conflict with the proper discharge of the officer's

or employee's duties in the public interest.

(b) To implement this policy and to strengthen the faith and

confidence of the people of this state in state government, this

chapter provides standards of conduct and disclosure requirements

to be observed by persons owing a responsibility to the people

and government of this state in the performance of their official

duties.

not only as a guide for official conduct of those persons but

also as a basis for discipline of those who refuse to abide by

its terms.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 572.002. GENERAL DEFINITIONS. In this chapter:

(1) "Appointed officer" means:

(A) the secretary of state;

(B) an individual appointed with the advice and consent of the

senate to the governing board of a state-supported institution of

higher education;

office specified by the Texas Constitution or a statute of this

state, excluding an appointee to a vacated elective office; or

(D) an individual who is a member of the governing board or

commission of a state agency, who is not appointed, and who is

not otherwise:

(i) an elected officer;

(ii) an officer described by Paragraphs (A) through (C); or

(iii) an executive head of a state agency.

(2) "Business entity" means any entity recognized by law through

which business for profit is conducted, including a sole

proprietorship, partnership, firm, corporation, holding company,

joint stock company, receivership, or trust.

(3) "Commission" means the Texas Ethics Commission.

(4) "Elected officer" means:

(A) a member of the legislature;

(B) an executive or judicial officer elected in a statewide

election;

(D) a member of the State Board of Education;

(E) a district attorney or criminal district attorney; or

(F) an individual appointed to fill a vacancy in an office or

appointed to a newly created office who, if elected to the office

instead of appointed, would be an elected officer under this

subdivision.

(5) "Executive head of a state agency" means the director,

executive director, commissioner, administrator, chief clerk, or

other individual who is appointed by the governing body or

highest officer of the state agency to act as the chief executive

or administrative officer of the agency and who is not an

appointed officer. The term includes the chancellor or highest

executive officer of a university system and the president of a

public senior college or university as defined by Section 61.003,

Education Code.

(6) "State party chair" means the state chair of any political

party receiving more than two percent of the vote for governor in

the most recent general election.

(7) "Person" means an individual or a business entity.

(8) "Regulatory agency" means any department, commission, board,

or other agency, except the secretary of state and the

comptroller, that:

(A) is in the executive branch of state government;

(B) has authority that is not limited to a geographical portion

of the state;

state; and

(D) has constitutional or statutory authority to engage in

regulation.

(9) "Salaried appointed officer" means an appointed officer who

receives or is authorized to receive a salary for state service

but not a per diem or other form of compensation.

(10) "State agency" means:

(A) a department, commission, board, office, or other agency

that:

(i) is in the executive branch of state government;

(ii) has authority that is not limited to a geographical portion

of the state; and

(iii) was created by the Texas Constitution or a statute of this

state;

(B) a university system or an institution of higher education as

defined by Section 61.003, Education Code, other than a public

junior college; or

statute of this state.

(11) "State employee" means an individual, other than a state

officer, who is employed by:

(A) a state agency;

(B) the Supreme Court of Texas, the Court of Criminal Appeals of

Texas, a court of appeals, or the Texas Judicial Council; or

council, or committee, including the Legislative Budget Board,

the Texas Legislative Council, the State Auditor's Office, and

the Legislative Reference Library.

(12) "State officer" means an elected officer, an appointed

officer, a salaried appointed officer, an appointed officer of a

major state agency, or the executive head of a state agency.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1997, 75th Leg., ch. 1134, Sec. 12, Sept.

1, 1997.

Amended by:

Acts 2005, 79th Leg., Ch.

1253, Sec. 1, eff. June 18, 2005.

Sec. 572.003. DEFINITION: APPOINTED OFFICER OF MAJOR STATE

AGENCY. (a) In this chapter, "appointed officer of a major

state agency" means an individual listed in Subsection (b) or

(c).

(b) The term means:

(1) the Banking Commissioner of The Banking Department of Texas;

(2) the fire fighters' pension commissioner;

(3) the administrative director of the Office of Court

Administration of the Texas Judicial System;

(4) the chief executive of the Office of Public Utility Counsel;

(5) the executive director of the State Bar of Texas;

(6) the director of the lottery division of the Texas Lottery

Commission;

(7) the deputy in charge of the department of security in the

lottery division of the Texas Lottery Commission;

(8) the director of the bingo division of the Texas Lottery

Commission; or

(9) the secretary of state.

(1) the Public Utility Commission of Texas;

(2) the Texas Department of Economic Development;

(3) the Texas Commission on Environmental Quality;

(4) the Texas Alcoholic Beverage Commission;

(5) The Finance Commission of Texas;

(6) the Texas Facilities Commission;

(7) the Texas Board of Criminal Justice;

(8) the board of trustees of the Employees Retirement System of

Texas;

(9) the Texas Transportation Commission;

(10) the Texas Workers' Compensation Commission;

(11) the Texas Department of Insurance;

(12) the Parks and Wildlife Commission;

(13) the Public Safety Commission;

(14) the Texas Ethics Commission;

(15) the State Securities Board;

(16) the Texas Water Development Board;

(17) the governing board of a public senior college or

university as defined by Section 61.003, Education Code, or of

The University of Texas Southwestern Medical Center at Dallas,

The University of Texas Medical Branch at Galveston, The

University of Texas Health Science Center at Houston, The

University of Texas Health Science Center at San Antonio, The

University of Texas System Cancer Center, The University of Texas

Health Science Center at Tyler, University of North Texas Health

Science Center at Fort Worth, Texas Tech University Health

Sciences Center, Texas State Technical College--Harlingen, Texas

State Technical College--Marshall, Texas State Technical

College--Sweetwater, or Texas State Technical College--Waco;

(18) the Texas Higher Education Coordinating Board;

(19) the Texas Workforce Commission;

(20) Repealed by Acts 2009, 81st Leg., R.S., Ch. 87, Sec.

11.012, eff. September 1, 2009.

(21) the board of trustees of the Teacher Retirement System of

Texas;

(22) the Credit Union Commission;

(23) the School Land Board;

(24) the board of the Texas Department of Housing and Community

Affairs;

(25) the Texas Racing Commission;

(26) the State Board of Dental Examiners;

(27) the Texas State Board of Medical Examiners;

(28) the Board of Pardons and Paroles;

(29) the Texas State Board of Pharmacy;

(30) the Department of Information Resources governing board;

(31) the Motor Vehicle Board;

(32) the Texas Real Estate Commission;

(33) the board of directors of the State Bar of Texas;

(34) the bond review board;

(35) the Texas Board of Health;

(36) the Texas Board of Mental Health and Mental Retardation;

(37) the Texas Board on Aging;

(38) the Texas Board of Human Services;

(39) the Texas Funeral Service Commission;

(40) the board of directors of a river authority created under

the Texas Constitution or a statute of this state; or

(41) the Texas Lottery Commission.

(d) The term includes the successor in function as provided by

law to an office listed in Subsection (b) or (c) if that office

is abolished.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.06(a), eff.

Sept. 1, 1995; Acts 2001, 77th Leg., ch. 238, Sec. 3, eff. May

22, 2001; Acts 2003, 78th Leg., ch. 817, Sec. 10.04, eff. Sept.

1, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

937, Sec. 3.09, eff. September 1, 2007.

Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 11.012, eff. September 1, 2009.

Sec. 572.004. DEFINITION: REGULATION. In this chapter,

"regulation" means rulemaking, adjudication, or licensing. In

this definition:

(1) "Adjudication" means the process of an agency for

formulating an order.

(2) "License" includes all or part of an agency permit,

certificate, approval, registration, charter, membership,

statutory exemption, or other form of permission.

(3) "Licensing" includes the process of an agency concerning the

grant, renewal, denial, revocation, suspension, annulment,

withdrawal, limitation, amendment, modification, or conditioning

of a license.

(4) "Order" means all or part of a final disposition, whether

affirmative, negative, injunctive, or declaratory in form, of an

agency in a matter other than rulemaking but including licensing.

(5) "Rule" means all or part of an agency statement of general

or particular applicability and future effect designed to

implement, interpret, or prescribe law or policy or to describe

the organization, procedure, or practice requirements of an

agency.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 572.005. DETERMINATION OF SUBSTANTIAL INTEREST. An

individual has a substantial interest in a business entity if the

individual:

(1) has a controlling interest in the business entity;

(2) owns more than 10 percent of the voting interest in the

business entity;

(3) owns more than $25,000 of the fair market value of the

business entity;

(4) has a direct or indirect participating interest by shares,

stock, or otherwise, regardless of whether voting rights are

included, in more than 10 percent of the profits, proceeds, or

capital gains of the business entity;

(5) is a member of the board of directors or other governing

board of the business entity;

(6) serves as an elected officer of the business entity; or

(7) is an employee of the business entity.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 572.006. DETERMINATION OF DEPENDENT CHILD. An individual's

child, including an adopted child or stepchild, is the

individual's dependent during a calendar year in which the

individual provides more than 50 percent of the child's support.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 572.007. PENALTIES IMPOSED BY COMMISSION. This chapter

does not prohibit the imposition of civil penalties by the

commission in addition to criminal penalties or other sanctions

imposed by law.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 572.008. VENUE. An offense under this chapter, including

perjury, may be prosecuted in Travis County or in any other

county in which it may be prosecuted under the Code of Criminal

Procedure.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

SUBCHAPTER B. PERSONAL FINANCIAL STATEMENT

Sec. 572.021. FINANCIAL STATEMENT REQUIRED. Except as provided

by Section 572.0211, a state officer, a partisan or independent

candidate for an office as an elected officer, and a state party

chair shall file with the commission a verified financial

statement complying with Sections 572.022 through 572.0252.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 2003, 78th Leg., ch. 249, Sec. 5.01, eff.

Sept. 1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

630, Sec. 2, eff. June 17, 2005.

Acts 2005, 79th Leg., Ch.

1253, Sec. 2, eff. June 18, 2005.

Sec. 572.0211. FILING BY HOLDOVER OFFICER NOT REQUIRED. (a) An

appointed officer who resigns from office and who ceases to

participate in the state agency's functions is not required to

file a financial statement that is due because of service in that

office after the effective date of the resignation.

(b) An appointed officer whose term of office expires and who

ceases to participate in the functions of the state agency is not

required to file a financial statement that is due because of

service in that office after the date the term of office expires.

whose functions are transferred to another state agency is not

required to file a financial statement that is due because of

service after the date that the agency is abolished or the

functions of the agency are transferred.

(d) An appointed officer who resigns or whose term of office

expires who does not intend to participate in the functions of

the state agency shall deliver written notice of the officer's

intention to the governor and the commission.

Added by Acts 2005, 79th Leg., Ch.

630, Sec. 1, eff. June 17, 2005.

Sec. 572.022. REPORTING CATEGORIES; REQUIRED DESCRIPTIONS. (a)

If an amount in a financial statement is required to be reported

by category, the individual filing the statement shall report

whether the amount is:

(1) less than $5,000;

(2) at least $5,000 but less than $10,000;

(3) at least $10,000 but less than $25,000; or

(4) $25,000 or more.

(b) The individual filing the statement shall report an amount

of stock by category of number of shares instead of by category

of dollar value and shall report whether the amount is:

(1) less than 100 shares;

(2) at least 100 but less than 500 shares;

(3) at least 500 but less than 1,000 shares;

(4) at least 1,000 but less than 5,000 shares;

(5) at least 5,000 but less than 10,000 shares; or

(6) 10,000 shares or more.

description of real property by reporting:

(1) the street address, if available, or the number of lots or

number of acres, as applicable, in each county, and the name of

the county, if the street address is not available; and

(2) the names of all persons retaining an interest in the

property, excluding an interest that is a severed mineral

interest.

(d) For a gift of cash or a cash equivalent such as a negotiable

instrument or gift certificate that is reported in accordance

with Section 572.023(b)(7), the individual filing the statement

shall include in the description of the gift a statement of the

value of the gift.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 2003, 78th Leg., ch. 249, Sec. 5.02, eff.

Sept. 1, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

342, Sec. 1, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

342, Sec. 2, eff. September 1, 2007.

Sec. 572.023. CONTENTS OF FINANCIAL STATEMENT IN GENERAL. (a)

A financial statement must include an account of the financial

activity of the individual required by this subchapter to file a

financial statement and an account of the financial activity of

the individual's spouse and dependent children if the individual

had actual control over that activity for the preceding calendar

year.

(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

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;

(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.

is a trust as to which:

(1) the trustee:

(A) is a disinterested party;

(B) is not the individual;

(D) is not a public officer or public employee; and

(E) was not appointed to public office by the individual or by a

public officer or public employee the individual supervises; and

(2) the trustee has complete discretion to manage the trust,

including the power to dispose of and acquire trust assets

without consulting or notifying the individual.

(d) If a blind trust under Subsection (c) is revoked while the

individual is subject to this subchapter, the individual must

file an amendment to the individual's most recent financial

statement, disclosing the date of revocation and the previously

unreported value by category of each asset and the income derived

from each asset.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 2003, 78th Leg., ch. 249, Sec. 5.03, eff.

Sept. 1, 2003.

Sec. 572.024. INFORMATION ABOUT SERVICES FOR LOBBYISTS OR

LOBBYIST EMPLOYERS. A state officer who receives a fee for

services rendered by the officer to or on behalf of a person

required to be registered under Chapter 305, or to or on behalf

of a person or entity that the officer actually knows directly

compensates or reimburses a person required to be registered

under Chapter 305, shall report on the financial statement the

name of each person or entity for which the services were

rendered and the category of the amount of each fee.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 572.025. INFORMATION ABOUT LEGISLATORS' REPRESENTATION

BEFORE EXECUTIVE STATE AGENCIES. A member of the legislature who

represents another person for compensation before an executive

state agency shall report on the financial statement:

(1) the name of the agency;

(2) the person represented by the member; and

(3) the category of the amount of compensation received by the

member for that representation.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 572.0251. INFORMATION ABOUT LEGISLATIVE CONTINUANCES. A

member or member-elect of the legislature licensed to practice

law in this state who represents a party to a civil or criminal

case for compensation and on that party's behalf applies for or

obtains a legislative continuance under Section 30.003, Civil

Practice and Remedies Code, or under another law or rule that

requires or permits a court to grant a continuance on the grounds

that an attorney for a party is a member or member-elect of the

legislature shall report on the financial statement:

(1) the name of the party represented;

(2) the date on which the member or member-elect was retained to

represent the party;

(3) the style and cause number of the action in which the

continuance was sought and the court and jurisdiction in which

the action was pending when the continuance was sought;

(4) the date on which the member or member-elect applied for a

continuance; and

(5) whether the continuance was granted.

Added by Acts 2003, 78th Leg., ch. 249, Sec. 5.04, eff. Sept. 1,

2003.

Sec. 572.0252. INFORMATION ABOUT 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 category of the amount of any fee accepted for making a

referral for legal services.

Added by Acts 2003, 78th Leg., ch. 249, Sec. 5.04, eff. Sept. 1,

2003.

Sec. 572.026. FILING DATES FOR STATE OFFICERS AND STATE PARTY

CHAIRS. (a) Not later than April 30 each year, a state officer

or a state party chair shall file the financial statement as

required by this subchapter.

(b) An individual who is appointed to serve as a salaried

appointed officer or an appointed officer of a major state agency

or who is appointed to fill a vacancy in an elective office shall

file a financial statement not later than the 30th day after the

date of appointment or the date of qualification for the office,

or if confirmation by the senate is required, before the first

committee hearing on the confirmation, whichever date is earlier.

head of a state agency shall file a financial statement not later

than the 45th day after the date on which the individual assumes

the duties of the position. A state agency shall immediately

notify the commission of the appointment or employment of an

executive head of the agency.

(d) An individual required to file a financial statement under

Subsection (a) may request the commission to grant an extension

of not more than 60 days for filing the statement. The commission

shall grant the request if it is received before the filing

deadline or if a timely filing or request for extension is

prevented because of physical or mental incapacity. The

commission may not grant more than one extension to an individual

in one year except for good cause shown.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 2003, 78th Leg., ch. 249, Sec. 5.05, eff.

Sept. 1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

1253, Sec. 3, eff. June 18, 2005.

Acts 2005, 79th Leg., Ch.

1253, Sec. 4, eff. June 18, 2005.

Acts 2007, 80th Leg., R.S., Ch.

248, Sec. 1, eff. May 25, 2007.

Sec. 572.027. FILING DATES FOR CANDIDATES. (a) Not later than

the 40th day after the date of the regular filing deadline for an

application for a place on the ballot in the general primary

election, an individual who is a partisan or independent

candidate for an office as an elected officer shall file the

financial statement required by this subchapter.

(b) If the deadline under which a candidate files an application

for a place on the ballot, other than the regular filing deadline

for an independent candidate, or files a declaration of write-in

candidacy falls after the date of the regular filing deadline for

candidates in the general primary election, the candidate shall

file the financial statement not later than the 30th day after

that later deadline. However, if that deadline falls after the

35th day before the date of the election in which the candidate

is running, the candidate shall file the statement not later than

the fifth day before the date of that election.

an office as an elected officer shall file the financial

statement not later than the fifth day before the date of that

election.

(d) An individual nominated to fill a vacancy in a nomination as

a candidate for a position as an elected officer under Chapter

145, Election Code, shall file the financial statement not later

than the 15th day after the date the certificate of nomination

required by Section 145.037 or 145.038, Election Code, is filed.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1997, 75th Leg., ch. 1134, Sec. 13, eff.

Sept. 1, 1997.

Sec. 572.028. DUPLICATE STATEMENTS. If an individual has filed

a financial statement under one provision of this subchapter

covering the preceding calendar year, the individual is not

required to file a financial statement required under another

provision of this subchapter to cover that same year if, before

the deadline for filing the statement under the other provision,

the individual notifies the commission in writing that the

individual has already filed a financial statement under the

provision specified.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 572.029. TIMELINESS OF FILING. (a) The deadline for

filing a financial statement required by this subchapter is 5

p.m. of the last day designated in the applicable provision for

filing the statement.

(b) If the last day for filing the financial statement is a

Saturday, Sunday, or holiday included under Subchapter B, Chapter

662, the statement is timely if filed on the next day that is not

a Saturday, Sunday, or listed holiday.

addressed and placed in the United States Post Office or in the

hands of a common or contract carrier not later than the last day

for filing the financial statement. The post office cancellation

mark or the receipt mark of a common or contract carrier is prima

facie evidence of the date the statement was deposited with the

post office or carrier. The individual filing the statement may

show by competent evidence that the actual date of posting was

different from that shown by the marks.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 572.030. PREPARATION AND MAILING OF FORMS. (a) The

commission shall design forms that may be used for filing the

financial statement under this subchapter.

(b) The commission shall mail to each individual required to

file under this subchapter a notice that:

(1) states that the individual is required to file a financial

statement under this subchapter;

(2) identifies the filing dates for the financial statement as

provided by Sections 572.026 and 572.027;

(3) describes the manner in which the individual may obtain the

financial statement forms and instructions from the commission's

Internet website;

(4) states that on request of the individual, the commission

will mail to the individual a copy of the financial statement

forms and instructions; and

(5) states, if applicable, the fee for mailing the forms and

instructions and the manner in which the individual may pay the

fee.

(1) before the 30th day before the deadline for filing the

financial statement under Section 572.026(a) or (c), except as

otherwise provided by this subsection;

(2) not later than the 15th day after the applicable deadline

for filing an application for a place on the ballot or a

declaration of write-in candidacy for candidates required to file

under Section 572.027(a), (b), or (c);

(3) not later than the seventh day after the date of appointment

for individuals required to file under Section 572.026(b), or if

the legislature is in session, sooner if possible; and

(4) not later than the fifth day after the date the certificate

of nomination is filed for candidates required to file under

Section 574.027(d).

(d) The commission shall mail a copy of the financial statement

forms and instructions to an individual not later than the third

business day after the date the commission receives the

individual's request for the forms and instructions.

(e) The commission may charge a fee for mailing the financial

statement forms and instructions to an individual. The amount of

the fee may not exceed the reasonable cost of producing and

mailing the forms and instructions.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1997, 75th Leg., ch. 1134, Sec. 14, eff.

Sept. 1, 1997.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

299, Sec. 1, eff. June 15, 2007.

Sec. 572.031. DETERMINATION OF COMPLIANCE WITH SUBCHAPTER. (a)

The commission shall conduct a continuing survey to determine

whether all individuals required to file financial statements

under this subchapter have filed statements in compliance with

this subchapter.

(b) If the commission determines that an individual has failed

to file the statement in compliance with this subchapter, the

commission shall send a written statement of the determination to

the appropriate prosecuting attorneys of the state.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 572.032. PUBLIC ACCESS TO STATEMENTS. (a) Financial

statements filed under this subchapter are public records. The

commission shall maintain the statements in separate alphabetical

files and in a manner that is accessible to the public during

regular office hours.

(a-1) The commission shall remove the home address of a judge or

justice from a financial statement filed under this subchapter

before:

(1) permitting a member of the public to view the statement; or

(2) providing a copy of the statement to a member of the public.

(b) During the one-year period following the filing of a

financial statement, each time a person requests to see the

financial statement, excluding the commission or a commission

employee acting on official business, the commission shall place

in the file a statement of the person's name and address, whom

the person represents, and the date of the request. The

commission shall retain that statement in the file for one year

after the date the requested financial statement is filed.

ceases to be a state officer, the commission may and on

notification from the former state officer shall destroy each

financial statement filed by the state officer.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

638, Sec. 1, eff. June 15, 2007.

Sec. 572.033. CIVIL PENALTY. (a) The commission shall

determine from any available evidence whether a statement

required to be filed under this subchapter is late. On making a

determination that the statement is late, the commission shall

immediately mail a notice of the determination to the individual

responsible for filing the statement and to the appropriate

attorney for the state.

(b) If a statement is determined to be late, the individual

responsible for filing the statement is liable to the state for a

civil penalty of $500. If a statement is more than 30 days late,

the commission shall issue a warning of liability by registered

mail to the individual responsible for the filing. If the penalty

is not paid before the 10th day after the date on which the

warning is received, the individual is liable for a civil penalty

in an amount determined by commission rule, but not to exceed

$10,000.

for a late filing of a sworn statement.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 2003, 78th Leg., ch. 249, Sec. 5.06, eff.

Sept. 1, 2003.

Sec. 572.034. CRIMINAL PENALTY. (a) An individual commits an

offense if the individual is a state officer or candidate or

state party chair and knowingly and wilfully fails to file a

financial statement as required by this subchapter.

(b) An offense under this section is a Class B misdemeanor.

under this section, it is a defense that the individual did not

receive copies of the financial statement form required by this

subchapter to be mailed to the individual.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Amended by:

Acts 2005, 79th Leg., Ch.

1253, Sec. 5, eff. June 18, 2005.

SUBCHAPTER C. STANDARDS OF CONDUCT AND CONFLICT OF INTEREST

PROVISIONS

Sec. 572.051. STANDARDS OF CONDUCT; STATE AGENCY ETHICS POLICY.

(a) A state officer or employee should not:

(1) accept or solicit any gift, favor, or service that might

reasonably tend to influence the officer or employee in the

discharge of official duties or that the officer or employee

knows or should know is being offered with the intent to

influence the officer's or employee's official conduct;

(2) accept other employment or engage in a business or

professional activity that the officer or employee might

reasonably expect would require or induce the officer or employee

to disclose confidential information acquired by reason of the

official position;

(3) accept other employment or compensation that could

reasonably be expected to impair the officer's or employee's

independence of judgment in the performance of the officer's or

employee's official duties;

(4) make personal investments that could reasonably be expected

to create a substantial conflict between the officer's or

employee's private interest and the public interest; or

(5) intentionally or knowingly solicit, accept, or agree to

accept any benefit for having exercised the officer's or

employee's official powers or performed the officer's or

employee's official duties in favor of another.

(b) A state employee who violates Subsection (a) or an ethics

policy adopted under Subsection (c) is subject to termination of

the employee's state employment or another employment-related

sanction. Notwithstanding this subsection, a state officer or

employee who violates Subsection (a) is subject to any applicable

civil or criminal penalty if the violation also constitutes a

violation of another statute or rule.

(1) adopt a written ethics policy for the agency's employees

consistent with the standards prescribed by Subsection (a) and

other provisions of this subchapter; and

(2) distribute a copy of the ethics policy and this subchapter

to:

(A) each new employee not later than the third business day

after the date the person begins employment with the agency; and

(B) each new officer not later than the third business day after

the date the person qualifies for office.

(d) The office of the attorney general shall develop, in

coordination with the commission, and distribute a model policy

that state agencies may use in adopting an agency ethics policy

under Subsection (c). A state agency is not required to adopt

the model policy developed under this subsection.

(e) Subchapters E and F, Chapter 571, do not apply to a

violation of this section.

(f) Notwithstanding Subsection (e), if a person with knowledge

of a violation of an agency ethics policy adopted under

Subsection (c) that also constitutes a criminal offense under

another law of this state reports the violation to an appropriate

prosecuting attorney, then, not later than the 60th day after the

date a person notifies the prosecuting attorney under this

subsection, the prosecuting attorney shall notify the commission

of the status of the prosecuting attorney's investigation of the

alleged violation. The commission shall, on the request of the

prosecuting attorney, assist the prosecuting attorney in

investigating the alleged violation. This subsection does not

apply to an alleged violation by a member or employee of the

commission.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

629, Sec. 1, eff. September 1, 2007.

Sec. 572.052. REPRESENTATION BY LEGISLATORS BEFORE STATE

AGENCIES; CRIMINAL OFFENSE. (a) A member of the legislature may

not, for compensation, represent another person before a state

agency in the executive branch of state government unless the

representation:

(1) is pursuant to an attorney-client relationship in a criminal

law matter; or

(2) involves the filing of documents that involve only

ministerial acts on the part of the commission, agency, board,

department, or officer.

(b) A member of the legislature commits an offense if the member

violates this section. An offense under this subsection is a

Class A misdemeanor.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993. Amended by Acts 1997, 75th Leg., ch. 1134, Sec. 15, eff.

Sept. 1, 1997; Acts 2003, 78th Leg., ch. 249, Sec. 5.07, eff.

Sept. 1, 2003.

Sec. 572.053. VOTING BY LEGISLATORS ON CERTAIN MEASURES OR

BILLS; CRIMINAL OFFENSE. (a) A member of the legislature may

not vote on a measure or a bill, other than a measure that will

affect an entire class of business entities, that will directly

benefit a specific business transaction of a business entity in

which the member has a controlling interest.

(b) In this section, "controlling interest" includes:

(1) an ownership interest or participating interest by virtue of

shares, stock, or otherwise that exceeds 10 percent;

(2) membership on the board of directors or other governing body

of the business entity; or

(3) service as an officer of the business entity.

violates this section. An offense under this subsection is a

Class A misdemeanor.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 572.0531. NOTICE REQUIRED FOR INTRODUCTION OR SPONSORSHIP

OF OR VOTING ON CERTAIN MEASURES OR BILLS BY LEGISLATORS. (a) A

member shall file a notice as required by Subsection (b) before

introducing, sponsoring, or voting on a measure or bill if the

member's spouse or a person related to the member within the

first degree by consanguinity, as determined under Subchapter B,

Chapter 573, is registered as a lobbyist under Chapter 305 with

respect to the subject matter of the measure or bill.

(b) A member of the house of representatives to whom Subsection

(a) applies shall file a written notice of that fact with the

chief clerk of the house of representatives. A senator to whom

Subsection (a) applies shall file a written notice of that fact

with the secretary of the senate. The member shall also file a

notice with the commission. A notice filed under this subsection

must:

(1) identify:

(A) the member;

(B) the measure, bill, or class of measures or bills with

respect to which the notice is required under this section; and

(2) be included in the journal of the house to which the member

belongs.

applies shall file a notice with the commission identifying:

(1) the person;

(2) the member; and

(3) the class of measures or bills with respect to which notice

is required under this section.

(d) A person related to the member to whom Subsection (a)

applies shall file the notice required by Subsection (c) not

later than:

(1) the beginning of a regular or special legislative session as

to which the person is registered as a lobbyist under Chapter 305

and will communicate directly with a member of the legislative

branch with respect to the measure, bill, or class of measures or

bills; or

(2) the seventh business day after the day the person agrees to

accept reimbursement or compensation to communicate directly with

a member of the legislative branch with respect to the measure,

bill, or class of measures or bills, if the person agrees to

accept the reimbursement or compensation after the beginning of a

legislative session.

(e) A member of the legislature who violates this section is

subject to discipline by the house to which the member belongs,

as provided by Section 11, Article III, Texas Constitution.

(f) In this section, "communicates directly with" and "member of

the legislative branch" have the meanings assigned by Section

305.002.

Added by Acts 2003, 78th Leg., ch. 249, Sec. 5.08, eff. Sept. 1,

2003.

Sec. 572.054. REPRESENTATION BY FORMER OFFICER OR EMPLOYEE OF

REGULATORY AGENCY RESTRICTED; CRIMINAL OFFENSE. (a) A former

member of the governing body or a former executive head of a

regulatory agency may not make any communication to or appearance

before an officer or employee of the agency in which the member

or executive head served before the second anniversary of the

date the member or executive head ceased to be a member of the

governing body or the executive head of the agency if the

communication or appearance is made:

(1) with the intent to influence; and

(2) on behalf of any person in connection with any matter on

which the person seeks official action.

(b) A former state officer or employee of a regulatory agency

who ceases service or employment with that agency on or after

January 1, 1992, may not represent any person or receive

compensation for services rendered on behalf of any person

regarding a particular matter in which the former officer or

employee participated during the period of state service or

employment, either through personal involvement or because the

case or proceeding was a matter within the officer's or

employee's official responsibility.

(1) a state officer of a regulatory agency; or

(2) a state employee of a regulatory agency who is compensated,

as of the last date of state employment, at or above the amount

prescribed by the General Appropriations Act for step 1, salary

group 17, of the position classification salary schedule,

including an employee who is exempt from the state's position

classification plan.

(d) Subsection (b) does not apply to a rulemaking proceeding

that was concluded before the officer's or employee's service or

employment ceased.

(e) Other law that restricts the representation of a person

before a particular state agency by a former state officer or

employee of that agency prevails over this section.

(f) An individual commits an offense if the individual violates

this section. An offense under this subsection is a Class A

misdemeanor.

(g) In this section, the comptroller and the secretary of state

are not excluded from the definition of "regulatory agency."

(h) In this section:

(1) "Participated" means to have taken action as an officer or

employee through decision, approval, disapproval, recommendation,

giving advice, investigation, or similar action.

(2) "Particular matter" means a specific investigation,

application, request for a ruling or determination, rulemaking

proceeding, contract, claim, charge, accusation, arrest, or

judicial or other proceeding.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 572.055. CERTAIN SOLICITATIONS OF REGULATED BUSINESS

ENTITIES PROHIBITED; CRIMINAL OFFENSE. (a) An association or

organization of employees of a regulatory agency may not solicit,

accept, or agree to accept anything of value from a business

entity regulated by that agency and from which the business

entity must obtain a permit to operate that business in this

state or from an individual directly or indirectly connected with

that business entity.

(b) A business entity regulated by a regulatory agency and from

which the business entity must obtain a permit to operate that

business in this state or an individual directly or indirectly

connected with that business entity may not offer, confer, or

agree to confer on an association or organization of employees of

that agency anything of value.

operation or inspection of motor vehicles or an agency charged

with enforcing the parks and wildlife laws of this state.

(d) A person commits an offense if the person intentionally or

knowingly violates this section. An offense under this subsection

is a Class A misdemeanor.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 572.056. CONTRACTS BY STATE OFFICERS WITH GOVERNMENTAL

ENTITIES; CRIMINAL OFFENSE. (a) A state officer may not solicit

or accept from a governmental entity a commission, fee, bonus,

retainer, or rebate that is compensation for the officer's

personal solicitation for the award of a contract for services or

sale of goods to a governmental entity.

(b) This section does not apply to:

(1) a contract that is awarded by competitive bid as provided by

law and that is not otherwise prohibited by law; or

(2) a court appointment.

political subdivision of the state, or a governmental entity

created under the Texas Constitution or a statute of this state.

(d) A state officer who violates this section commits an

offense. An offense under this subsection is a Class A

misdemeanor.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 572.057. CERTAIN LEASES PROHIBITED. (a) A member of the

legislature, an executive or judicial officer elected in a

statewide election, or a business entity in which the legislator

or officer has a substantial interest may not lease any office

space or other real property to the state, a state agency, the

legislature or a legislative agency, the Supreme Court of Texas,

the Court of Criminal Appeals, or a state judicial agency.

(b) A lease made in violation of Subsection (a) is void.

elected officer on June 16, 1989, for as long as the officer

holds that office.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 572.058. PRIVATE INTEREST IN MEASURE OR DECISION;

DISCLOSURE; REMOVAL FROM OFFICE FOR VIOLATION. (a) An elected

or appointed officer, other than an officer subject to

impeachment under Article XV, Section 2, of the Texas

Constitution, who is a member of a board or commission having

policy direction over a state agency and who has a personal or

private interest in a measure, proposal, or decision pending

before the board or commission shall publicly disclose the fact

to the board or commission in a meeting called and held in

compliance with Chapter 551. The officer may not vote or

otherwise participate in the decision. The disclosure shall be

entered in the minutes of the meeting.

(b) An individual who violates this section is subject to

removal from office on the petition of the attorney general on

the attorney general's own initiative or on the relation of a

resident or of any other member of the board or commission. The

suit must be brought in a district court of Travis County or of

the county where the violation is alleged to have been committed.

evidence that the defendant violated this section and that an

ordinary prudent person would have known the individual's conduct

to be a violation of this section, the court shall enter judgment

removing the defendant from office.

(d) A suit under this section must be brought before the second

anniversary of the date the violation is alleged to have been

committed, or the suit is barred.

(e) The remedy provided by this section is cumulative of other

methods of removal from office provided by the Texas Constitution

or a statute of this state.

(f) In this section, "personal or private interest" has the same

meaning as is given to it under Article III, Section 22, of the

Texas Constitution, governing the conduct of members of the

legislature. For purposes of this section, an individual does not

have a "personal or private interest" in a measure, proposal, or

decision if the individual is engaged in a profession, trade, or

occupation and the individual's interest is the same as all

others similarly engaged in the profession, trade, or occupation.

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1,

1993.

Sec. 572.059. INDEPENDENCE OF STATE AND LOCAL OFFICERS ACTING IN

LEGISLATIVE CAPACITY. (a) In this section, "legislative

measure" includes:

(1) a bill, resolution, order, or other proposal to adopt,

enact, amend, or repeal a statute, ordinance, rule, or policy of

general application;

(2) a proposal to adopt, enact, amend, or repeal, or to grant a

variance or other exception to, a zoning ordinance; or

(3) a proposed constitutional amendment or charter amendment

subject to a vote of the electorate.

(b) For purposes of Subsection (a), a measure that is applicable

to a class or subset of persons or matters that is defined in

general terms without naming the particular persons or matters is

a measure of general application.

acting in a legislative capacity, a state or local officer,

whether elected or appointed, including a member of the governing

body of a school district or other political subdivision of this

state, may not be subject to disciplinary action or a sanction,

penalty, disability, or liability for:

(1) an action permitted by law that the officer takes in the

officer's official capacity regarding a legislative measure;

(2) proposing, endorsing, or expressing support for or

opposition to a legislative measure or taking any action

permitted by law to support or oppose a legislative measure;

(3) the effect of a legislative measure or of a change in law

proposed by a legislative measure on any person; or

(4) a breach of duty, in connection with the member's practice

of or employment in a licensed or regulated profession or

occupation, to disclose to any person information, or to obtain a

waiver or consent from any person, regarding:

(A) the officer's actions relating to a legislative measure; or

(B) the substance, effects, or potential effects of a

legislative measure.

Added by Acts 2003, 78th Leg., ch. 1206, Sec. 1, eff. June 20,

2003.

Sec. 572.060. SOLICITATION OF OR RECOMMENDATIONS REGARDING

CONTRIBUTIONS TO CHARITABLE ORGANIZATIONS AND GOVERNMENTAL

ENTITIES. (a) Unless otherwise prohibited by the Code of

Judicial Conduct, a state officer or state employee may:

(1) solicit from any person a contribution to:

(A) an organization that:

(i) is exempt from income taxation under Section 501(a),

Internal Revenue Code of 1986, by being listed under Section

501(c)(3) of that code;

(ii) does not attempt to influence legislation as a substantial

part of the organization's activities; and

(iii) has not elected under Section 501(h), Internal Revenue

Code of 1986, to have that subsection apply to the organization;

(B) a governmental entity; or

(2) recommend to any person that the person make a contribution

to an organization or entity described by Subdivision (1).

(b) A monetary contribution solicited or recommended as provided

by Subsection (a) must:

(1) be paid or made directly to the charitable organization or

governmental entity by the person making the contribution;

(2) be in the form of a check, money order, or similar

instrument payable to the charitable organization or governmental

entity; or

(3) be in the form of a deduction from a state employee's salary

or wage payment under the state employee charitable campaign

under Subchapter I, Chapter 659.

Subsection (a) that is not a monetary contribution must be

delivered directly to the charitable organization or governmental

entity by the person making the contribution.

(d) A contribution paid as provided by Subsection (b) or

delivered as provided by Subsection (c) is not:

(1) a political contribution to, or political expenditure on

behalf of, the state officer or state employee for purposes of

Title 15, Election Code;

(2) an expenditure for purposes of Chapter 305; or

(3) a benefit to the state officer or state employee for

purposes of Sections 36.08 and 36.09, Penal Code.

Added by Acts 2005, 79th Leg., Ch.

53, Sec. 1, eff. September 1, 2005.

Sec. 572.061. CERTAIN GRATUITIES AUTHORIZED. This subchapter

does not prohibit the acceptance of a gratuity that is accepted

and reported in accordance with Section 11.0262, Parks and

Wildlife Code.

Added by Acts 2005, 79th Leg., Ch.

639, Sec. 3, eff. September 1, 2005.

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Texas Codes and Statutes

CHAPTER 572. PERSONAL FINANCIAL DISCLOSURE, STANDARDS OF CONDUCT, AND CONFLICT OF INTEREST