SB 461

relating to disclosure of certain relationships with local
government officers and vendors.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Sections 176.001(1), (1-a), (2), and (2-d),
Local Government Code, are amended to read as follows:
(1)  "Agent" means a third party who undertakes to
transact some business or manage some affair for another person by
the authority or on account of the other person.  The term includes
a subcontractor and an employee.
(1-a)  "Business relationship" means a connection
between two or more parties based on commercial activity of one of
the parties.  [The term does not include a connection based on:
[(A)  a transaction that is subject to rate or fee
regulation by a federal, state, or local governmental entity or an
agency of a federal, state, or local governmental entity;
[(B)  a transaction conducted at a price and
subject to terms available to the public; or
[(C)  a purchase or lease of goods or services
from a person that is chartered by a state or federal agency and
that is subject to regular examination by, and reporting to, that
(2)  "Family member" means a person related to another
person within the third [first] degree by consanguinity or the
second degree by affinity, as determined under [described by]
Subchapter B, Chapter 573, Government Code.
(2-d)  "Investment income" means dividends, capital
gains, or interest income generated from:
(i)  checking or savings account;
(ii)  share draft or share account; or
(B)  a personal or business investment; [or]
(C)  a personal or business loan; or
SECTION 2.  The changes in law made by this Act apply only to
an event requiring disclosure that occurs on or after January 1,
2026.  An event requiring disclosure that occurs before that date is
governed by the law applicable to the event immediately before that
date, and the former law is continued in effect for that purpose.
SECTION 3.  This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution.  If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.