HB1735 - Relating to the creation of the Texas Local Government Accountability Association; authorizing a fee.

  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.