Texas Ethics Commission:

An Inventory of Ethics Commission State Officers Personal Financial Statements (Part I: A-K) at the Texas State Archives, 1992-1996

Agency History

The Texas Ethics Commission was created by a constitutional amendment which the voters approved in November 1991 (Article III, Section 24a); it was established by Senate Bill 1, 72nd Texas Legislature, Regular Session, 1991, and began operations in January 1992. It has the following powers: to pursue sworn complaints alleging violations of state ethics laws (investigations into sworn complaints are confidential, but formal hearings on allegations are public); to penalize violators of state ethics laws; to sponsor ethics training and informational programs, and to explain compliance guidelines; to issue advisory opinions, which apply ethics laws to specific situations of fact; to require regulatory agencies of the executive branch to develop rules for the commission's approval that limit the acceptance of benefits from regulated entities; to recommend salary levels for members of the legislature and the lieutenant governor, which are submitted to the voters at the next general election; to set the per diem paid to legislators and to the lieutenant governor.

The laws and regulations that the commission enforces include those concerning the following: political contributions and expenditures and political advertising; lobbyist activities; financial disclosure and conduct of state officers and employees; and the contributions and expenditures for the race for speaker of the house. Prior to the creation of the Ethics Commission, the Secretary of State's office administered the filings required by these ethics laws. The advisory opinions which the commission issues concern these laws as well as laws governing bribery, corrupt influence, and abuse of office. These advisory opinions can be used as a defense in a criminal prosecution or in a matter involving civil penalties if the defendant relied on an opinion of the commission in making decisions regarding his or her behavior, or if the defendant's situation is substantially similar to that outlined in the opinion (the identity of a person requesting an advisory opinion is confidential).

The Ethics Commission consists of eight members representing the general public, serving overlapping four-year terms. Four are appointed by the governor, two by the lieutenant governor, and two by the speaker of the house, all of them chosen from lists provided by senate and house caucuses representing political parties required by law to hold primary elections (currently the Democratic and Republican parties). They are non-salaried positions, and the members annually elect a chair.

The Ethics Commission was preceded by a Public Servant Standards of Conduct Advisory Committee, created in 1981 to expire in 1983 (House Bill 3, 67th Texas Legislature, Regular Session); and a State Ethics Advisory Commission (appropriation: Senate Bill 22, 68th Texas Legislature, 1st Called Session, 1983).

A code of ethics for state officers and employees was created in 1957 by House Bill 3, 55th Texas Legislature, Regular Session. This legislation set forth standards of conduct for state officers and employees regarding possible conflicts of interest between their private interests and official duties. An individual having controlling interest in a business entity under state regulation was required to file an affidavit with the Secretary of State disclosing such interest. A stock fraud scandal involving several state officials, including the Speaker of the House, was uncovered in 1971, leading to a demand for tougher and more comprehensive ethics legislation. During the 1971 legislative session the 62nd Texas Legislature passed a new ethics law, House Bill 203, which called for more comprehensive financial disclosures and for the filing of these statements by all elected and appointed state officials, and any state or legislative employees whose salary exceeded $11,000. Few disclosure filings were made under this law as it was declared unconstitutional by the Texas Attorney General in January 1972. The 63rd Texas Legislature reworked the ethics legislation and passed House Bill 1 in 1973. Under the terms of this legislation annual financial statements are required to be filed by elected officers and candidates, salaried appointed officers, appointed officers of major state agencies, and executive heads of state agencies. These financial disclosures include a listing of assets and liabilities, all boards of directors that the person serves on, and executive positions held in corporations. These statements also include financial disclosures for the official's spouse and any dependent children over which he has actual control.

When the Ethics Commission was created in 1991, the law removed the requirement that appointed officers not required to file these personal financial statements must file an affidavit with the Secretary of State if they have, acquire, or divest themselves of substantial interest in a business entity subject to state regulation or a business entity conducting business with any state agency.

This filing was originally administered by the Enforcement Division of the Office of the Texas Secretary of State, then (in the early 1980s) by the Campaign and Ethics Section of the Elections Division, renamed the Disclosure Filings Section by 1984. In 1992, the Texas Ethics Commission was created, and assumed the administration and enforcement of this filing. As of 2008, approximately 3,300 public officials are required to file reports with the Ethics Commission.

(Sources include the Texas Ethics Commission appraisal report (May 2000); the Guide to Texas State Agencies, 10th edition (1999); the article by John G. Johnson on the Texas Ethics Commission in the New Handbook of Texas Online; the Texas Ethics Commission Strategic Plan, FY 1998-FY 2003; and the Texas Ethics Commission web site (http://www.ethics.state.tx.us), accessed November 2005.)

Scope and Contents of the Records

The Texas Ethics Commission administers certain ethics filings which were previously administered by the Texas Secretary of State, Disclosure Filings Section. Personal financial statements were created to comply with state ethics legislation providing for the disclosure of financial assets and possible conflicts of interest of elected, salaried, or appointed officers and executive heads of state agencies, and candidates for elected office. These filings help to ensure public accountability from state officers, encouraging high ethical standards by means of public scrutiny of the appropriate records.

These records consist of financial disclosure statements of the following: state officers (i.e., elected officers at the state or district level, appointed officers, salaried appointed officers, appointed officers of major state agencies, and executive heads of state agencies), candidates for elective office, and party chairmen. The records date 1992-1996. Files report the financial activities of the individual, and of his spouse and dependent children (if the individual had actual control over that financial activity during the preceding calendar year). Financial activities include the following types of assets and liabilities: (1) a list of all sources of occupational income, identified by employer, or if self-employed, by the nature of the occupation; (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 gift received from an individual related to the individual at any time within the second degree by consanguinity or affinity, as determined under Subchapter A, Chapter 573 of the Texas Government Code; a political contribution that was reported as required by law; and an expenditure required to be reported by a person required to be registered under Texas Government Code, Chapter 305; (8) identification of the source and the category of the amount of all income received as beneficiary of a trust and identification of each 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 or partnership 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, or proprietorships, stating the name of each corporation, firm, partnership, or proprietorship and the position held; (11) identification of any person providing transportation, meals, or lodging expenses permitted under Texas Penal Code, Section 36.07(b), and the amount of those expenses, other than expenditures required to be reported under Texas Government Code, Chapter 305; and (12) any partnership, joint venture, or other business association, excluding a publicly held corporation, in which both the state officer and a lobbyist registered under Texas Government Code, Chapter 305 have an interest.

This finding aid has been split into two separate finding aids due to electronic file size limitations imposed by TARO. If you are reading this electronically, click here for L thru Z. If you are reading this in paper, that finding aid is found at a separate divider within the binder.

Restrictions

Restrictions on Access

Because of the possibility that portions of these records fall under Public Information Act exceptions including, but not limited to, bank account numbers (V.T.C.A., Government Code, Section 552.136); driver's license numbers (V.T.C.A., Government Code, Section 552.130); and home addresses and phone numbers of government employees or officials (V.T.C.A., Government Code, Section 552.117), an archivist must review State officers personal financial statements before they can be accessed for research. The records may be requested for research under the provisions of the Public Information Act (V.T.C.A., Government Code, Chapter 552). The researcher may request an interview with an archivist or submit a request by mail (Texas State Library and Archives Commission, P. O. Box 12927, Austin, TX 78711), fax (512-463-5436), email (Dir_Lib@tsl.state.tx.us), or see our web page (http://www.tsl.state.tx.us/agency/customer/pia.html). Include enough description and detail about the information requested to enable the archivist to accurately identify and locate the information. If our review reveals information that may be excepted by the Public Information Act, we are obligated to seek an open records decision from the Attorney General on whether the records can be released. The Public Information Act allows the Archives ten working days after receiving a request to make this determination. The Attorney General has 45 working days to render a decision. Alternately, the Archives can inform you of the nature of the potentially excepted information and if you agree, that information can be redacted or removed and you can access the remainder of the records.

Materials do not circulate, but may be used in the State Archives search room. Materials will be retrieved from and returned to storage areas by staff members.

Restrictions on Use

Most records created by Texas state agencies are not copyrighted and may be freely used in any way. State records also include materials received by, not created by, state agencies. Copyright remains with the creator. The researcher is responsible for complying with U.S. Copyright Law (Title 17 U.S.C.).

Technical Requirements

None.

Related Material

Administrative Information

Preferred Citation

(Identify the item), Texas Ethics Commission state officers personal financial statements. Archives and Information Services Division, Texas State Library and Archives Commission.

Accession Information

Accession number: 2007/181

These records were transferred to the Archives and Information Services Division of the Texas State Library and Archives Commission by the Texas Ethics Commission on June 14, 2007.

Processing Information

Processed and initial inventory created by Tony Black, July 2007

Initial inventory finalized by Tony Black, March 2009

Appraisal Information

Texas State Archives staff completed an appraisal of the Texas Ethics Commission records in May 2000. (This appraisal report is online at http://www.tsl.state.tx.us/arc/appraisal/txethics.html, and also in the search room of the Texas State Archives.) Thirteen series on the agency’s retention schedule were determined to be archival, including State officers personal financial statements.

Detailed Description of the Records