89R5886 MP-D

By: Schatzline H.B. No. 1735

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the Texas Local Government Accountability Association; authorizing a fee.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The Local Government Code is amended by adding Title 15 to read as follows:

TITLE 15. ETHICS AND OPEN GOVERNMENT

SUBTITLE A. MUNICIPAL ETHICS AND OPEN GOVERNMENT

SUBTITLE B. COUNTY ETHICS AND OPEN GOVERNMENT

SUBTITLE C. ETHICS AND OPEN GOVERNMENT PROVISIONS APPLYING TO MORE

THAN ONE TYPE OF LOCAL GOVERNMENT

CHAPTER 671. TEXAS LOCAL GOVERNMENT ACCOUNTABILITY ASSOCIATION

Sec. 671.001. DEFINITIONS. In this chapter:

(1) "Association" means the Texas Local Government Accountability Association.

(2) "Ethics and transparency standards" means the ethics and transparency standards developed by the association under Section 671.003.

(3) "Local government" has the meaning assigned by Section 791.003, Government Code.

Sec. 671.002. ESTABLISHMENT. (a) The Texas Local Government Accountability Association is established as an association of local governments organized through contracts with member local governments.

(b) The association is a governmental unit and is entitled to governmental immunity to suit and from liability.

Sec. 671.003. POWERS AND DUTIES. (a) The association shall develop and publish ethics and transparency standards applicable to a local government. The association may amend and revise the ethics and transparency standards developed under this subsection.

(b) The association shall publish on its Internet website a standard contract for a local government to join the association.

(c) The association may charge an annual fee to association members.

Sec. 671.004. OPTIONAL ASSOCIATION MEMBERSHIP BY GOVERNING BODY VOTE. (a) Except as provided by Section 671.005, a local government may enter into a contract to join the association by a vote of the governing body of the local government.

(b) If the governing body of a local government elects to join the association, the governing body shall negotiate in good faith a contract with the association to join the association.

(c) Except as provided by Section 671.005, the governing body of a local government may terminate its contract with the association only in accordance with the terms of the contract entered into under this section. The governing body of a local government must hold at least two public hearings on the proposed termination before terminating the contract.

Sec. 671.005. REQUIRED ASSOCIATION MEMBERSHIP BY PETITION AND ELECTION. (a) On receipt of a petition requesting a local government join the association, the governing body of the local government shall hold an election in the local government on:

(1) the next uniform election date after the petition is submitted to the local government that allows sufficient time to comply with the requirements of other law; and

(2) the question of whether the local government should be required to contract with and join the association on the terms of the standard contract published under Section 671.003(b).

(b) A petition to a local government submitted under Subsection (a) must be signed by the lesser of:

(1) the number of qualified voters of the local government equal to two percent of the number of voters participating in the last general election held in the local government; or

(2) 1,000 qualified voters of the local government.

(c) The ballots for the election described by Subsection (a) shall be prepared to provide voting for or against the proposition: "Shall (name of local government) contract with the Texas Local Government Accountability Association under its standard contract to receive and follow the applicable local government ethics and transparency standards?"

(d) In an election held under Subsection (a), a local government may not include another measure on the ballot that negates, alters, or cancels the proposition described by Subsection (c).

(e) If a majority of the voters voting in an election held under Subsection (a) approve the proposition, not later than the 60th day after the date the election is certified, the local government shall enter into the version of the standard contract published by the association under Section 671.003(b) on the date the petition initiating the election was submitted.

(f) A local government described by Subsection (e) may not terminate the contract with the association unless the termination is approved at an election held for that purpose on a uniform election date. The local government may not terminate the contract until the election is certified. The ballots for the election shall be prepared to permit voting for or against the proposition: "Shall (name of local government) terminate its association with the Texas Local Government Accountability Association and thus permanently eliminate implementation of the transparency and ethics standards adopted by the Texas Local Government Accountability Association for (name of local government)?"

(g) To the extent of any conflict, this section prevails over any other law relating to propositions initiated by a petition.

Sec. 671.006. REQUIRED COMPLIANCE WITH ETHICS AND TRANSPARENCY STANDARDS. All officers, including elected officials, employees, agents, vendors, and independent contractors of a local government that is a member of the association are required to comply with and cooperate in the implementation of the ethics and transparency standards.

Sec. 671.007. COMPLAINT TO LOCAL GOVERNMENT. (a) A person may file a written complaint with a local government that is a member of the association if the person believes that an officer, including an elected official, employee, agent, vendor, or independent contractor of the local government is violating the ethics and transparency standards.

(b) The local government:

(1) shall investigate the allegation in a complaint filed under Subsection (a);

(2) not later than the 10th day after the date the local government receives the complaint, shall hold a hearing with the complainant;

(3) may set a reasonable time limit for the hearing;

(4) not later than the 10th day after the hearing date, shall provide a written response to the complainant that states the basis of the actions taken by the local government with regard to the complaint; and

(5) may consider any relevant information available to the local government when investigating a complaint.

Sec. 671.008. COMPLAINT TO ASSOCIATION. (a) After exhausting all remedies under Section 671.007, a person may file a complaint with the association regarding the alleged violation. The dispute shall be submitted to binding arbitration before an arbitrator appointed by the association. The arbitrator may order injunctive relief against only the local government or an officer, employee, agent, vendor, or independent contractor of a local government.

(b) A complainant who substantially prevails in the arbitration is entitled to an award of reasonable attorney's fees and costs from the local government. A local government may not be awarded attorney's fees or costs under this subsection.

Sec. 671.009. DENIAL OF STATE GRANT FUNDS. (a) A local government may not receive state grant funds, and state grant funds for the local government shall be denied, for the state fiscal year following the year in which a local government fails or refuses to cooperate in an action brought under Section 671.008.

(b) The comptroller shall adopt rules to implement this section uniformly among the state agencies from which state grant funds are distributed to a local government.

SECTION 2. This Act takes effect September 1, 2025.