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