The bill, H.B. No. 264, introduces a new provision in the Government Code that prohibits registered lobbyists from receiving state funds under contracts with the state or as compensation for services provided 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.

Additionally, the bill clarifies that the new restrictions apply only to state funds received after the effective date of the Act, while funds received prior to that date will continue to be governed by the existing law. The Act is set to take effect 91 days after the conclusion of the legislative session.

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