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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of conflicts of interest of officials of |
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municipalities, counties, and certain other local governments. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 171, Local Government Code, is amended |
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by adding Section 171.011 to read as follows: |
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Sec. 171.011. TRANSACTIONS INVOLVING REAL ESTATE. (a) A |
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local public official or a business entity in which a local public |
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official has a substantial interest may not enter into a real estate |
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transaction with the local governmental entity of which the person |
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is an official if the official would financially benefit from the |
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transaction. |
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(b) A charitable contribution deduction from the Internal |
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Revenue Service is not considered a financial benefit. |
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SECTION 2. (a) A local public official or business entity |
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that has entered into a transaction prohibited by Section 171.011, |
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Local Government Code, as added by this Act, before the effective |
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date of this Act, shall remove the official or entity, as |
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applicable, from the real estate transaction not later than |
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September 1, 2026. |
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(b) In the case of exceptional circumstances, a local public |
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official or business entity may submit a request to the Texas |
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Facilities Commission to approve the continuance after September 1, |
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2026, of a real estate transaction subject to Subsection (a) of this |
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section. |
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(c) If a local public official or business entity would |
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receive a financial gain from the removal from a real estate |
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transaction as described by Subsection (a) of this section, the |
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Texas Facilities Commission shall review the terms of the real |
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estate transaction and the removal of the local public official or |
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business entity to ensure that the local governmental entity will |
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receive the fair market value of the property. |
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SECTION 3. This Act takes effect September 1, 2023. |