Rules
Proposed
PROPOSED RULES
At its February 2026, meeting, the Texas Ethics Commission (“TEC”) voted to propose the following amended and new rules: §7.1 regarding Application, §7.3 regarding Definitions, §7.5 regarding Vendor Protest Procedures, §7.55 regarding Vendor Protest Procedures for Vendor Performance Reports, §7.7 regarding Contract Monitoring, §7.9 regarding Enhanced Contract Monitoring, §7.11 regarding Veteran Heroes United in Business (VetHUB), §26.1 regarding Disclosure Statement, §26.2 regarding Newsletter of Public Officer of a Political Subdivision, §26.3 regarding Legislative Advertising, §34.1 regarding Definitions, §34.41 regarding Expenditure Threshold, §34.43 regarding Compensation and Reimbursement Threshold, §45.3 regarding Definitions, §45.8 regarding Additional Disclosures for Texas Comptroller of Public Accounts, §46.1 regarding Application and §46.5 regarding Disclosure of Interested Parties Form. The text of the proposed amended and new rules is located below.
Summary of Proposed Rules, in English
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 proposal of new Chapter 7 regarding contracts, and a review of the TEC’s rules regarding political and legislative advertising which are codified in Chapter 26, conflicts of interest which are codified in Chapter 45 and disclosure of interested parties which are codified in Chapter 46. The adoption of new rules and amendments to other rules seek to shorten, simplify, and reorganize the rules to eliminate surplusage and improve clarity on these chapters.
Resumen de las Reglas propuestas, en Español
La ley estatal exige que las agencias estatales “revisen y consideren la readopción de cada una de sus normas… a más tardar en el cuarto aniversario de la fecha en que la norma entre en vigor y cada cuatro años a partir de esa fecha”. Código Gubernamental de Texas §2001.039. La ley también exige que las agencias “readopten, readopten con enmiendas o deroguen una norma como resultado de la revisión de la misma conforme a esta sección”. Ibíd.
La Comisión de Ética de Texas (TEC) continúa su revisión integral con la propuesta del nuevo Capítulo 7 sobre contratos, y una revisión de las normas de la TEC relativas a la publicidad política y legislativa, codificadas en el Capítulo 26; los conflictos de intereses, codificados en el Capítulo 45; y la divulgación de partes interesadas, codificada en el Capítulo 46. La adopción de nuevas normas y las enmiendas a otras normas buscan acortar, simplificar y reorganizar las normas para eliminar redundancias y mejorar la claridad en estos capítulos.
The deleted language is indicated by [strikethrough] text.
The proposed language is indicated by underlined text.
CHAPTER 7. CONTRACTS
§7.1. Application.
This chapter applies to §2155.076, §2261.202 and §2262.253 of the Government Code.
§7.3. Definitions.
(1) 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.
(2) Commission - The Texas Ethics Commission, as constituted and described in the Texas Constitution, Article 3, §24a and in the Government Code, Chapter 571.
(3) 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.
(4) 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.
(5) 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.
§7.55. 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.
§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’ 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).
§26.1. Disclosure Statement.
(a) A disclosure statement that is required by §255.001, Election Code[, must contain the words "political advertising" or any recognizable abbreviation, and] must:
(1) appear on one line of text or on successive lines of text on the face of the political advertising; or
(2) be clearly spoken in the political advertising if the political advertising does not include written text.
(b) A disclosure statement is not required on political advertising printed on letterhead stationery if the letterhead contains the full name of one of the following:
(1) the person who paid for the political advertising;
(2) the political committee authorizing the political advertising; or
(3) the candidate authorizing the political advertising.
(c) A disclosure statement is not required on:
(1) campaign buttons, pins, or hats, or on objects whose size makes printing the disclosure impractical;
(2) political advertising posted or re-posted on an Internet website, as long as the person posting or re-posting the political advertising:
(A) is not an officeholder, candidate, or political committee;
(B) did not make an expenditure exceeding $100 in a reporting period for political advertising beyond the basic cost of hardware messaging software and bandwidth; and
(C) did not post or re-post the political advertising in return for consideration.
(3) the Internet social media profile webpage of a candidate or officeholder, provided the webpage clearly and conspicuously displays the full name of the candidate or officeholder; or
(4) political advertising posted or re-posted by a person on an Internet website, provided the advertising is posted with a link to a publicly viewable Internet webpage that:
(A) contains the disclosure statement; or
(B) is exempt from containing the disclosure statement under Subsection (c)(3).
(d) For the purposes of Subsection (c), an “Internet social media profile webpage” is an Internet webpage on a website where members of the public may, for no charge, connect electronically with other members of the public and share text, images, videos, and similar forms of communications.
§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).
§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.
§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.
§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.
(a) 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 Tex. Admin. Code §20.220.
§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.