The bill, H.B. No. 264, introduces a new provision in the Texas Government Code that prohibits registered lobbyists from receiving state funds under contracts with the state or as compensation for services rendered as state employees. Specifically, Section 305.0305 states that, with the exception of retirement benefits or other benefits related to prior service as an employee or contractor for the state, registrants are barred from receiving such funds. This aims to prevent conflicts of interest and ensure that public funds are not allocated to individuals who are actively lobbying the state.

Additionally, the bill clarifies that the new prohibition applies only to state funds received after the effective date of the Act, which is set to take effect 91 days after the conclusion of the legislative session. Any state funds received by lobbyists prior to this date will continue to be governed by the existing laws in place at that time. This transitional provision ensures that the bill does not retroactively affect previously received funds.

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