| 1 | 1 | | 88R12466 KBB-D |
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| 2 | 2 | | By: Dutton H.B. No. 3863 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the regulation of conflicts of interest of officials of |
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| 8 | 8 | | municipalities, counties, and certain other local governments. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 171, Local Government Code, is amended |
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| 11 | 11 | | by adding Section 171.011 to read as follows: |
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| 12 | 12 | | Sec. 171.011. TRANSACTIONS INVOLVING REAL ESTATE. (a) A |
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| 13 | 13 | | local public official or a business entity in which a local public |
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| 14 | 14 | | official has a substantial interest may not enter into a real estate |
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| 15 | 15 | | transaction with the local governmental entity of which the person |
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| 16 | 16 | | is an official if the official would financially benefit from the |
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| 17 | 17 | | transaction. |
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| 18 | 18 | | (b) A charitable contribution deduction from the Internal |
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| 19 | 19 | | Revenue Service is not considered a financial benefit. |
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| 20 | 20 | | SECTION 2. (a) A local public official or business entity |
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| 21 | 21 | | that has entered into a transaction prohibited by Section 171.011, |
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| 22 | 22 | | Local Government Code, as added by this Act, before the effective |
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| 23 | 23 | | date of this Act, shall remove the official or entity, as |
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| 24 | 24 | | applicable, from the real estate transaction not later than |
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| 25 | 25 | | September 1, 2026. |
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| 26 | 26 | | (b) In the case of exceptional circumstances, a local public |
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| 27 | 27 | | official or business entity may submit a request to the Texas |
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| 28 | 28 | | Facilities Commission to approve the continuance after September 1, |
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| 29 | 29 | | 2026, of a real estate transaction subject to Subsection (a) of this |
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| 30 | 30 | | section. |
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| 31 | 31 | | (c) If a local public official or business entity would |
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| 32 | 32 | | receive a financial gain from the removal from a real estate |
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| 33 | 33 | | transaction as described by Subsection (a) of this section, the |
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| 34 | 34 | | Texas Facilities Commission shall review the terms of the real |
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| 35 | 35 | | estate transaction and the removal of the local public official or |
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| 36 | 36 | | business entity to ensure that the local governmental entity will |
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| 37 | 37 | | receive the fair market value of the property. |
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| 38 | 38 | | SECTION 3. This Act takes effect September 1, 2023. |
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