The bill, S.B. No. 461, amends the Local Government Code to enhance the disclosure requirements regarding relationships with local government officers and vendors. Key definitions are updated, including the term "Agent," which now explicitly includes "a subcontractor and an employee." The definition of "Business relationship" has been revised to remove previous exclusions related to transactions regulated by governmental entities and those conducted at publicly available prices. Additionally, the definition of "Family member" is updated to reflect relationships within the third degree by consanguinity and the second degree by affinity, as determined by the Government Code.

Furthermore, the bill expands the definition of "Investment income" to include income generated from trusts, alongside existing categories such as dividends and interest from various accounts and investments. The changes will take effect for disclosure events occurring on or after January 1, 2026, while events prior to this date will continue to be governed by the existing law. The bill will become effective immediately if it receives a two-thirds majority vote in both houses; otherwise, it will take effect on September 1, 2025.

Statutes affected:
Introduced: Local Government Code 176.001 (Local Government Code 176)