TITLE 1. ADMINISTRATION

PART 2. TEXAS ETHICS COMMISSION

CHAPTER 7. CONTRACTS

1 TAC §§7.1, 7.3, 7.5, 7.7, 7.9, 7.11, 7.55

The Texas Ethics Commission (the TEC) proposes new Texas Ethics Commission Rules in Chapter 7 (relating to Contracts). Specifically, the TEC proposes new rules to codify Vendor Protest Procedures, Vendor Protest Procedures for Vendor Performance Reports, Contract Monitoring, Enhanced Contract Monitoring and Veteran Heroes United in Business (VetHUB) Procedures, including §7.1 regarding Application, §7.3 regarding Definitions, §7.5 regarding Vendor Protest Procedures, §7.7 regarding Contract Monitoring, §7.9 regarding Enhanced Contract Monitoring, §7.11 Veteran heroes United in Businesses (VetHUB), and §7.55 regarding Vendor Protest Procedures for Vendor Performance Reports.

State law requires state agencies to "review and consider for readoption each of its rules … not later than the fourth anniversary of the date on which the rule takes effect and every four years after that date." Tex. Gov't Code §2001.039. The law further requires agencies to "readopt, readopt with amendments, or repeal a rule as the result of reviewing the rule under this section." Id.

The TEC is continuing its comprehensive review with the addition of Chapter 7, regarding Contracts. The addition of these rules seeks to provide clarity on the Commission's contract policies.

Amanda Arriaga, General Counsel, has determined that for the first five-year period the proposed new rules are in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the proposed new rules.

The General Counsel has also determined that for each year of the first five years the proposed new rules are in effect, the public benefit will be consistency and clarity in the Commission's rules regarding contracts. There will not be an effect on small businesses, microbusinesses or rural communities. There is no anticipated economic cost to persons who are required to comply with the proposed new rules.

The General Counsel has determined that during the first five years that the proposed new rules are in effect, they will not: create or eliminate a government program; require the creation of new employee positions or the elimination of existing employee positions; require an increase in future legislative appropriations to the agency; require an increase or decrease in fees paid to the agency; expand, limit, or repeal an existing regulation; create a new regulation; increase or decrease the number of individuals subject to the rules' applicability; or positively or adversely affect this state's economy.

The Commission invites comments on the proposed new rules from any member of the public. A written statement should be emailed to public_comment@ethics.state.tx.us, or mailed or delivered to James Tinley, Executive Director, Texas Ethics Commission, P.O. Box 12070, Austin, Texas 78711-2070. A person who wants to offer spoken comments to the Commission concerning the proposed new rules may do so at any Commission meeting during the agenda item relating to the proposed new rules. Information concerning the date, time, and location of Commission meetings is available by telephoning (512) 463-5800 or on the Commission's website at www.ethics.state.tx.us.

The new rules are proposed under Texas Government Code §571.062, which authorizes the Commission to adopt rules to administer Title 15 of the Election Code and Chapter 571 of the Government Code.

The proposed rules affect Chapter 6 of the Texas Ethics Commission Rules and Chapter 571 of the Government Code.

§7.1. Application.

This chapter applies to §2155.076, §2261.202 and §2262.253 of the Government Code.

§7.3. Definitions.

(a) Agency--The state agency governed by the Commission, as it functions and operates through the administrative staff hired by the Commission and its executive director.

(b) Commission--The Texas Ethics Commission, as constituted and described in the Texas Constitution, Article 3, §24a and in the Government Code, Chapter 571.

(c) Contract--A written contract between the agency and a contractor, under the terms of which the contractor agrees to provide goods or services to or for the agency.

(d) Executive director--The person employed by the Commission to serve as the agency's chief administrative officer, or any other employee of the Commission acting as the designee of the executive director.

(e) Vendor--A person that offers goods and services in the state.

§7.5. Vendor Protest Procedures.

(a) Per Tex. Gov't Code §2155.076, a state agency must adopt procedures for resolving vendor protests related to purchasing issues.

(b) A vendor who submitted a written response to a solicitation and did not receive the award may file a written protest.

(c) A valid protest must be:

(1) In writing and contain:

(A) the specific rule, statute or regulation the protesting vendor alleges the solicitation, contract award or tentative award violated;

(B) a specific description of each action by the agency that the protesting vendor alleges is a violation of the statutory or regulatory provision the protesting vendor identified in subparagraph (A) of this paragraph;

(C) a precise statement of the relevant facts including:

(i) sufficient documentation to establish that the protest has been timely filed;

(ii) a description of the adverse impact to the agency and the state; and

(iii) a description of the resulting adverse impact to the protesting vendor;

(D) a statement of the argument and authorities that the protesting vendor offers in support of the protest;

(E) an explanation of the subsequent action the vendor is requesting.

(2) signed by an authorized representative with the signature notarized; and

(3) filed in the time period specified in this section.

(d) To be considered by the Commission, a protest must be filed:

(1) by the end of the posted solicitation period, if the protest concerns the solicitation documents or actions associated with the publication of solicitation documents;

(2) by the day of the award of a contract resulting from the solicitation, if the protest concerns the evaluation or method of evaluation for a solicitation; or

(3) no later than 10 days after the notice of award, if the protest concerns the award.

(e) In the event of a timely protest or appeal under this section, the Commission shall not proceed further with the solicitation or with the award of the contract unless the Executive Director makes a written determination that the award of the contract without delay is necessary to protect the best interest of the Commission.

(f) Policies and procedures related to this section can be found in the Commission policy on the Commission website.

§7.7. Contract Monitoring.

(a) Per Tex. Gov't Code §2261.202, a state agency must adopt a policy that clearly defines the contract monitoring roles and responsibilities.

(b) The contract monitoring roles and responsibilities of the Commission's internal audit staff and other inspection, investigative, or compliance staff are as follows:

(1) The Commission does not have an Internal Auditor. The Executive Director, or Designee, will perform internal audit activities which will include performing audits of the contract management function and systems when they are warranted by the results of risk assessment or included in the audit plan approved by the Commission.

(2) The Administration Division will seek to improve contract compliance by serving as a central repository for agency contracts so the agency can perform contract compliance reviews.

(3) The Administration Division will assist the Requesting Division in monitoring agency contracts in connection with applicable historically underutilized and minority business contract requirements.

(4) The General Counsel Division will seek to improve contract compliance by reviewing and approving each contract.

(5) The Requesting Division will oversee the contract, monitor and report to other appropriate agency divisions regarding contract compliance.

(6) Upon contract close-out the Administration Division will file vendor performance reports, as required by the rules of the Comptroller of Public Accounts in 34 TAC Part 1, Chapter 20, Subchapter C (relating to Procurement), and §20.108 (relating to Vendor Performance Tracking System).

(7) The Commission does not have a criminal enforcement unit. Criminal activity related to agency contracts will be reported to the appropriate authorities as set out in statute.

§7.9. Enhanced Contract Monitoring.

(a) Per Tex. Gov't Code §2261.253, a state agency must establish a procedure to identify each contract that requires enhanced or performance monitoring, and submit information on those contracts to the agency's governing body.

(b) Contracts that are subject to enhanced contract monitoring include:

(1) Contracts for the purchase of goods or services that have a value in excess of $1 million for the life of the contract.

(2) Contracts that are identified based on an internal risk analysis.

(3) Any contracts identified by the Commission, Executive Director, or General Counsel.

(4) Contracts subject to enhanced contract or performance monitoring will be included in reports provided to the Commission.

(5) Contracts will be monitored in accordance with policies and procedures in the Commission's contract management handbook.

(6) The Commission will be notified, as appropriate, of any serious issue or risk that is identified with report to a contract monitored under this rule.

§7.11. Veteran Heroes United in Businesses (VetHUB).

In accordance with Tex. Gov't Code §2161.003, the Commission adopts by reference the Texas Comptroller of Public Accounts' rules in Texas Administrative Code, Title 34, Chapter 20, Subchapter D, Division 1 (relating to Historically Underutilized Businesses).

§7.55. Vendor Protest Procedures for Vendor Performance Reports.

(a) The Commission is required by §2155.089 and §2262.055 of the Texas Government Code to review a vendor's performance under a contract after the contract is completed or otherwise terminated. Vendor performance must be reported to the Comptroller using the Comptroller's tracking system to rate vendors on an A through F scale, with A being the highest grade.

(b) A vendor who receives a grade lower than a C in the vendor performance tracking system may file a protest regarding the lower grade assigned to the vendor in the system.

(c) Policies and procedures related to this section can be found in the Commission policy on the Commission website.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 12, 2026.

TRD-202600633

Amanda Arriaga

General Counsel

Texas Ethics Commission

Earliest possible date of adoption: March 29, 2026

For further information, please call: (512) 463-5800


CHAPTER 26. POLITICAL AND LEGISLATIVE ADVERTISING

1 TAC §26.2, §26.3

The Texas Ethics Commission (the TEC) proposes amendments to Texas Ethics Commission Rules in Chapter 26 (relating to Political and Legislative Advertising). Specifically, the TEC proposes amendments to §26.2 regarding Newsletter of Public Officer of a Political Subdivision and §26.3 regarding Legislative Advertising.

State law requires state agencies to "review and consider for readoption each of its rules … not later than the fourth anniversary of the date on which the rule takes effect and every four years after that date." Tex. Gov't Code §2001.039. The law further requires agencies to "readopt, readopt with amendments, or repeal a rule as the result of reviewing the rule under this section." Id.

The TEC is continuing its comprehensive review with a review of the TEC's rules regarding political and legislative advertising, which are codified in Chapter 26.

Amanda Arriaga, General Counsel, has determined that for the first five-year period the proposed amended rules are in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the proposed amended rules.

The General Counsel has also determined that for each year of the first five years the proposed amended rules are in effect, the public benefit will be consistency and clarity in the Commission's rules regarding political and legislative advertising. There will not be an effect on small businesses, microbusinesses or rural communities. There is no anticipated economic cost to persons who are required to comply with the proposed amended rules.

The General Counsel has determined that during the first five years that the proposed amended rules are in effect, they will not: create or eliminate a government program; require the creation of new employee positions or the elimination of existing employee positions; require an increase in future legislative appropriations to the agency; require an increase or decrease in fees paid to the agency; expand, limit, or repeal an existing regulation; create a new regulation; increase or decrease the number of individuals subject to the rules' applicability; or positively or adversely affect this state's economy.

The Commission invites comments on the proposed amended rules from any member of the public. A written statement should be emailed to public_comment@ethics.state.tx.us, or mailed or delivered to James Tinley, Executive Director, Texas Ethics Commission, P.O. Box 12070, Austin, Texas 78711-2070. A person who wants to offer spoken comments to the Commission concerning the proposed amended rules may do so at any Commission meeting during the agenda item relating to the proposed amended rules. Information concerning the date, time, and location of Commission meetings is available by telephoning (512) 463-5800 or on the Commission's website at www.ethics.state.tx.us.

The amended rules are proposed under Texas Government Code §571.062, which authorizes the Commission to adopt rules to administer Title 15 of the Election Code and Chapter 571 of the Government Code.

The proposed amended rules affect Chapter 255 of the Election Code.

§26.2. Newsletter of Public Officer of a Political Subdivision.

For purposes of §255.003 of the Election Code, a newsletter of a public officer of a political subdivision is not political advertising if:

(1) It includes no more than two pictures of a public officer per page and if the total amount of area covered by the pictures is no more than 20 percent of the page on which the pictures appear;

(2) It includes no more than eight personally phrased references (such as the public officer's name, "I", "me", "the city council member") on a page that is 8 ½" x 11" or larger, with a reasonable reduction in the number of such personally phrased references in pages smaller than 8 ½" x 11"; [and]

(3) When viewed as a whole and in the proper context:

(A) is informational rather than self-promotional;

(B) does not advocate passage or defeat of a measure; and

(C) does not support or oppose a candidate for nomination or election to a public office or office of political party, a political party, or a public officer; and[. ]

(4) Is published more than 60 days before the election.

§ 26.3. Legislative Advertising.

Political advertising as defined by the Election Code, § [Section] 251.001(16) (concerning Definitions), does not constitute legislative advertising under the Government Code, § [Section] 305.027 (concerning Required Disclosure on Legislative Advertising).

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 12, 2026.

TRD-202600634

Amanda Arriaga

General Counsel

Texas Ethics Commission

Earliest possible date of adoption: March 29, 2026

For further information, please call: (512) 463-5800


CHAPTER 34. REGULATION OF LOBBYISTS

The Texas Ethics Commission (the TEC) proposes an amendment to Texas Ethics Commission Rules in Chapter 34 (relating to Regulation of Lobbyists).

Specifically, the TEC proposes an amendment in Subchapter A of chapter 34 (regarding General Provisions), including §34.1 regarding Definitions.

The TEC also proposes amendments rules in Subchapter B of Chapter 20 (relating to Registration Required), including §34.41 regarding Expenditure Threshold and §34.43 regarding Compensation and Reimbursement Threshold.

State law requires state agencies to "review and consider for readoption each of its rules … not later than the fourth anniversary of the date on which the rule takes effect and every four years after that date." Tex. Gov't Code §2001.039. The law further requires agencies to "readopt, readopt with amendments, or repeal a rule as the result of reviewing the rule under this section." Id.

The TEC is continuing its comprehensive review with a review of the TEC's rules regarding regulation of lobbyists, which are codified in Chapter 34. These amendments seek to shorten, simplify, and reorganize the rules to eliminate surplusage and improve clarity on these restrictions.

Amanda Arriaga, General Counsel, has determined that for the first five-year period the proposed amended rules are in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the proposed amended rules.

The General Counsel has also determined that for each year of the first five years the proposed amended rules are in effect, the public benefit will be consistency and clarity in the Commission's rules regarding regulation of lobbyists. There will not be an effect on small businesses, microbusinesses or rural communities. There is no anticipated economic cost to persons who are required to comply with the proposed amended rules.

The General Counsel has determined that during the first five years that the proposed amended rules are in effect, they will not: create or eliminate a government program; require the creation of new employee positions or the elimination of existing employee positions; require an increase in future legislative appropriations to the agency; require an increase or decrease in fees paid to the agency; expand, limit, or repeal an existing regulation; create a new regulation; increase or decrease the number of individuals subject to the rule's applicability; or positively or adversely affect this state's economy.

The Commission invites comments on the proposed amended rules from any member of the public. A written statement should be emailed to public_comment@ethics.state.tx.us, or mailed or delivered to James Tinley, Executive Director, Texas Ethics Commission, P.O. Box 12070, Austin, Texas 78711-2070. A person who wants to offer spoken comments to the Commission concerning the proposed amended rules may do so at any Commission meeting during the agenda item relating to the proposed amended rules. Information concerning the date, time, and location of Commission meetings is available by telephoning (512) 463-5800 or on the Commission's website at www.ethics.state.tx.us.

SUBCHAPTER A. GENERAL PROVISIONS

1 TAC §34.1

The amended rules are proposed under Texas Government Code §571.062, which authorizes the Commission to adopt rules to administer Chapter 305 of the Government Code.

The proposed amended rules affect Chapter 305 of the Government Code.

§34.1. Definitions.

The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.

[(1) Communicates directly with, or any variation of that phrase--In Government Code, Chapter 305, and in this chapter includes communication by facsimile transmission.]

(1) [(2)] Expenditure--In Government Code, Chapter 305, and in this chapter does not include a payment of less than $200 that is fully reimbursed by the member of the legislative or executive branch who benefits from the expenditure if the member of the legislative or executive branch fully reimburses the person making the payment before the date the person would otherwise be required to report the payment.

(2) [(3)] Lobby activity--Direct communication with and preparation for direct communication with a member of the legislative or executive branch to influence legislation or administrative action.

(3) [(4)] Registrant--In Government Code, Chapter 305, and in this chapter means a person who is required to register as well as a person who has registered regardless of whether that person's registration was required.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 12, 2026.

TRD-202600636

Amanda Arriaga

General Counsel

Texas Ethics Commission

Earliest possible date of adoption: March 29, 2026

For further information, please call: (512) 463-5800


SUBCHAPTER B. REGISTRATION REQUIRED

1 TAC §34.41, §34.43

The amendments are proposed under Texas Government Code §571.062, which authorizes the Commission to adopt rules to administer Chapter 305 of the Government Code.

The proposed rules affect chapter 305 of the Government Code.

§34.41. Expenditure Threshold.

(a) A person must register as a lobbyist under chapter 305 of the Texas Government Code, if the person makes total expenditures of more than $650 [the amount specified in Tex. Gov't Code §305.003(a)(1), as amended by Figure 2 in 1 TAC §18.31] in a calendar quarter, not including expenditures for the person's own travel, food, lodging, or membership dues, on activities described in Government Code §305.006(b) to communicate directly with one or more members of the legislative or executive branch to influence legislation or administrative action.

(b) An expenditure made by a member of the judicial, legislative, or executive branch of state government or an officer or employee of a political subdivision of the state acting in his or her official capacity is not included for purposes of determining whether a person is required to register under Government Code, §305.003(a)(1).

(c) An expenditure made in connection with an event to promote the interests of a designated geographic area or political subdivision is not included for purposes of determining whether a person has crossed the registration threshold in Government Code, §305.003(a)(1), if the expenditure is made by a group that exists for the limited purpose of sponsoring the event or by a person acting on behalf of such a group.

§34.43. Compensation and Reimbursement Threshold.

(a) A person must register as a lobbyist under chapter 305 of the Texas Government Code if the person receives, or is entitled to receive under an agreement under which the person is retained or employed, more than $1,200 [the amount specified in Tex. Gov't Code §305.003(a)(2), as amended by Figure 2 in 1 TAC §18.31] in a calendar quarter in compensation and reimbursement, not including reimbursement for the person's own travel, food, lodging, or membership dues, from one or more other persons to communicate directly with a member of the legislative or executive branch to influence legislation or administrative action.

(b) For purposes of Government Code, §305.003(a)(2), and this chapter, a person is not required to register if the person spends not more than 40 hours for which the person is compensated or reimbursed during a calendar quarter engaging in lobby activity, including preparatory activity as described by §34.3 of this title.

(c) For purposes of Government Code, §305.003(a)(2), and this chapter, a person shall make a reasonable allocation of compensation between compensation for lobby activity and compensation for other activities.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 12, 2026.

TRD-202600637

Amanda Arriaga

General Counsel

Texas Ethics Commission

Earliest possible date of adoption: March 29, 2026

For further information, please call: (512) 463-5800


CHAPTER 45. CONFLICTS OF INTEREST

1 TAC §45.3, §45.8

The Texas Ethics Commission (the TEC) proposes an amendment and new rule in Texas Ethics Commission Rules in Chapter 45 (relating to Conflicts of Interest). Specifically, the TEC proposes an amendment to §45.3 regarding Definitions and new §45.8 regarding Additional Disclosures for Texas Comptroller of Public Accounts.

This proposal amends the rules regarding the additional disclosures for the Texas Comptroller.

State law requires state agencies to "review and consider for readoption each of its rules … not later than the fourth anniversary of the date on which the rule takes effect and every four years after that date." Tex. Gov't Code §2001.039. The law further requires agencies to "readopt, readopt with amendments, or repeal a rule as the result of reviewing the rule under this section." Id.

The TEC is continuing its comprehensive review with a review of the TEC's rules regarding conflicts of interest, which are codified in Chapter 45. These amendments seek to provide clarity to cross reference with 1 Texas Administrative Code §20.220.

Amanda Arriaga, General Counsel, has determined that for the first five-year period the proposed amended and new rules are in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the proposed amended and new rules.

The General Counsel has also determined that for each year of the first five years the proposed amended and new rules are in effect, the public benefit will be consistency and clarity in the Commission's rules regarding conflicts of interest. There will not be an effect on small businesses, microbusinesses or rural communities. There is no anticipated economic cost to persons who are required to comply with the proposed amended and new rules.

The General Counsel has determined that during the first five years that the proposed amended and new rules are in effect, they will not: create or eliminate a government program; require the creation of new employee positions or the elimination of existing employee positions; require an increase in future legislative appropriations to the agency; require an increase or decrease in fees paid to the agency; expand, limit, or repeal an existing regulation; create a new regulation; increase or decrease the number of individuals subject to the rules' applicability; or positively or adversely affect this state's economy.

The Commission invites comments on the proposed amended and new rules from any member of the public. A written statement should be emailed to public_comment@ethics.state.tx.us, or mailed or delivered to James Tinley, Executive Director, Texas Ethics Commission, P.O. Box 12070, Austin, Texas 78711-2070. A person who wants to offer spoken comments to the Commission concerning the proposed amended and new rules may do so at any Commission meeting during the agenda item relating to the proposed amended and new rules. Information concerning the date, time, and location of Commission meetings is available by telephoning (512) 463-5800 or on the Commission's website at www.ethics.state.tx.us.

The amended and new rules are proposed under Texas Government Code §571.062, which authorizes the Commission to adopt rules to administer Title 15 of the Election Code and Chapter 571 of the Government Code.

The proposed amended and new rules affect Section 2155.003 of the Government Code and 1 Texas Administrative Code §20.220.

§45.3. Definitions.

(a) Section 2155.003 of the Government Code applies to:

(1) the chief clerk,[; and]

(2) an employee who exercises discretion in connection with a contract, payment, claim, or other pecuniary transaction under the comptroller's purchasing authority, and[.]

(3) the Comptroller.

(b) Under §2155.003 of the Government Code the following words and terms shall have the following meanings:

(1) "Chief clerk" and "employee" includes the spouse or dependent child of the chief clerk or employee.

(2) "Have an interest in" or "in any manner be connected with," is limited to the purchasing authority that was transferred to the comptroller by §2151.004 of the Government Code, and means a right, share, equitable or legal claim to, or pecuniary interest in, a contract or bid.

(3) "Value," "reward," and "compensation" includes anything with a monetary value of $5 or more.

(c) Section 2155.003 of the Government Code does not apply to the ownership of stock the value of which does not exceed the lesser of $25,000 or 5% in any one company, or ownership of shares in a publicly traded mutual fund or similar investment vehicle in which the person does not exercise any discretion regarding the investment of the assets of the fund or other investment vehicle.

§45.8. Additional Disclosures for Texas Comptroller of Public Accounts.

For purposes of this section and §2155.003(e) of the Government Code, the procedure for the required additional disclosure can be found at 1 Texas Administrative Code §20.220 (relating to Additional Disclosure for the Texas Comptroller of Public Accounts).

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 12, 2026.

TRD-202600638

Amanda Arriaga

General Counsel

Texas Ethics Commission

Earliest possible date of adoption: March 29, 2026

For further information, please call: (512) 463-5800


CHAPTER 46. DISCLOSURE OF INTERESTED PARTIES

1 TAC §46.1, §46.5

The Texas Ethics Commission (the TEC) proposes amendments in Texas Ethics Commission Rules in Chapter 46 (relating to Disclosure of Interested Parties). Specifically, the TEC proposes amendments to §46.1 regarding Definitions and §46.5 regarding Disclosure of Interested Parties Form.

This proposal amends the rules regarding the disclosure of interested parties for certain contracts between governmental entities and business entities.

State law requires state agencies to "review and consider for readoption each of its rules … not later than the fourth anniversary of the date on which the rule takes effect and every four years after that date." Tex. Gov't Code §2001.039. The law further requires agencies to "readopt, readopt with amendments, or repeal a rule as the result of reviewing the rule under this section." Id.

The TEC is continuing its comprehensive review with a review of the TEC's rules regarding disclosure of interested parties, which are codified in Chapter 46.

Amanda Arriaga, General Counsel, has determined that for the first five-year period the proposed amended rules are in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the proposed amended rules.

The General Counsel has also determined that for each year of the first five years the proposed amended rules are in effect, the public benefit will be consistency and clarity in the Commission's rules regarding disclosure of interested parties. There will not be an effect on small businesses, microbusinesses or rural communities. There is no anticipated economic cost to persons who are required to comply with the proposed amended rules.

The General Counsel has determined that during the first five years that the proposed amended rules are in effect, they will not: create or eliminate a government program; require the creation of new employee positions or the elimination of existing employee positions; require an increase in future legislative appropriations to the agency; require an increase or decrease in fees paid to the agency; expand, limit, or repeal an existing regulation; create a new regulation; increase or decrease the number of individuals subject to the rules' applicability; or positively or adversely affect this state's economy.

The Commission invites comments on the proposed amended rules from any member of the public. A written statement should be emailed to public_comment@ethics.state.tx.us, or mailed or delivered to James Tinley, Executive Director, Texas Ethics Commission, P.O. Box 12070, Austin, Texas 78711-2070. A person who wants to offer spoken comments to the Commission concerning the proposed amended rules may do so at any Commission meeting during the agenda item relating to the proposed amended rules. Information concerning the date, time, and location of Commission meetings is available by telephoning (512) 463-5800 or on the Commission's website at www.ethics.state.tx.us.

The amended rules are proposed under Texas Government Code §571.062, which authorizes the Commission to adopt rules to administer Title 15 of the Election Code and Chapter 571 of the Government Code.

The proposed amended rules affect Section 2252.908 of the Government Code.

§46.1. Application.

(a) This chapter applies to §2252.908 of the Government Code.

[(b) Section 2252.908 of the Government Code applies only to a contract of a governmental entity or state agency entered into after December 31, 2015, that meets either of the following conditions:]

[(1) The contract requires an action or vote by the governing body of the entity or agency; or]

[(2) The value of the contract is at least $1 million.]

(b) [(c)] A contract does not require an action or vote by the governing body of a governmental entity or state agency if:

(1) The governing body has legal authority to delegate to its staff the authority to execute the contract;

(2) The governing body has delegated to its staff the authority to execute the contract; and

(3) The governing body does not participate in the selection of the business entity with which the contract is entered into.

§46.5. Disclosure of Interested Parties Form.

(a) A disclosure of interested parties form required by §2252.908 of the Government Code must be filed on an electronic form prescribed by the Commission. [commission that contains the following:

[(1) The name of the business entity filing the form and the city, state, and country of the business entity's place of business;]

[(2) The name of the governmental entity or state agency that is a party to the contract for which the form is being filed;]

[(3) The name of each interested party and the city, state, and country of the place of business of each interested party;]

[(4) The identification number used by the governmental entity or state agency to track or identify the contract for which the form is being filed and a short description of the services, goods, or other property used by the governmental entity or state agency provided under the contract; and]

[(5) An indication of whether each interested party has a controlling interest in the business entity, is an intermediary in the contract for which the disclosure is being filed, or both.]

(b) The certification of filing and the completed disclosure of interested parties form generated by the Commission's [commission] electronic filing application must be printed, signed by an authorized agency of the contracting business entity, and submitted to the governmental entity or state agency that is the party to the contract for which the form is being filed.

(c) A governmental entity or state agency that receives a completed disclosure of interested parties form and certification of filing shall notify the Commission [commission], in an electronic format prescribed by the Commission [commission], of the receipt of those documents not later than the 30th day after the date the governmental entity or state agency receives the disclosure.

(d) The Commission [commission] shall make each disclosure of interested parties form filed with the Commission [commission] under §2252.908(f) of the Government Code available to the public on the Commission's [commission] Internet website not later than the seventh business day after the date the Commission [commission] receives the notice required under subsection (c) of this section.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on February 12, 2026.

TRD-202600639

Amanda Arriaga

General Counsel

Texas Ethics Commission

Earliest possible date of adoption: March 29, 2026

For further information, please call: (512) 463-5800