HB 1735

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. 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
(2)  "Ethics and transparency standards" means the
ethics and transparency standards developed by the association
(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
(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
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
(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
(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
(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
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.
(1)  shall investigate the allegation in a complaint
(2)  not later than the 10th day after the date the
local government receives the complaint, shall hold a hearing with
(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
(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
(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.