| 1 | 1 | | 89R589 AMF-D |
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| 2 | 2 | | By: Middleton S.B. No. 461 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to disclosure of certain relationships with local |
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| 10 | 10 | | government officers and vendors. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Sections 176.001(1), (1-a), (2), and (2-d), |
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| 13 | 13 | | Local Government Code, are amended to read as follows: |
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| 14 | 14 | | (1) "Agent" means a third party who undertakes to |
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| 15 | 15 | | transact some business or manage some affair for another person by |
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| 16 | 16 | | the authority or on account of the other person. The term includes |
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| 17 | 17 | | a subcontractor and an employee. |
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| 18 | 18 | | (1-a) "Business relationship" means a connection |
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| 19 | 19 | | between two or more parties based on commercial activity of one of |
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| 20 | 20 | | the parties. [The term does not include a connection based on: |
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| 21 | 21 | | [(A) a transaction that is subject to rate or fee |
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| 22 | 22 | | regulation by a federal, state, or local governmental entity or an |
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| 23 | 23 | | agency of a federal, state, or local governmental entity; |
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| 24 | 24 | | [(B) a transaction conducted at a price and |
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| 25 | 25 | | subject to terms available to the public; or |
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| 26 | 26 | | [(C) a purchase or lease of goods or services |
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| 27 | 27 | | from a person that is chartered by a state or federal agency and |
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| 28 | 28 | | that is subject to regular examination by, and reporting to, that |
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| 29 | 29 | | agency.] |
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| 30 | 30 | | (2) "Family member" means a person related to another |
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| 31 | 31 | | person within the third [first] degree by consanguinity or the |
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| 32 | 32 | | second degree by affinity, as determined under [described by] |
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| 33 | 33 | | Subchapter B, Chapter 573, Government Code. |
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| 34 | 34 | | (2-d) "Investment income" means dividends, capital |
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| 35 | 35 | | gains, or interest income generated from: |
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| 36 | 36 | | (A) a personal or business: |
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| 37 | 37 | | (i) checking or savings account; |
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| 38 | 38 | | (ii) share draft or share account; or |
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| 39 | 39 | | (iii) other similar account; |
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| 40 | 40 | | (B) a personal or business investment; [or] |
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| 41 | 41 | | (C) a personal or business loan; or |
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| 42 | 42 | | (D) a trust. |
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| 43 | 43 | | SECTION 2. The changes in law made by this Act apply only to |
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| 44 | 44 | | an event requiring disclosure that occurs on or after January 1, |
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| 45 | 45 | | 2026. An event requiring disclosure that occurs before that date is |
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| 46 | 46 | | governed by the law applicable to the event immediately before that |
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| 47 | 47 | | date, and the former law is continued in effect for that purpose. |
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| 48 | 48 | | SECTION 3. This Act takes effect immediately if it receives |
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| 49 | 49 | | a vote of two-thirds of all the members elected to each house, as |
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| 50 | 50 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 51 | 51 | | Act does not receive the vote necessary for immediate effect, this |
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| 52 | 52 | | Act takes effect September 1, 2025. |
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