Rules
Proposed
PROPOSED RULES
At its September 2024, meeting, the Texas Ethics Commission voted to propose the following amended and new rules: §40.2 regarding Disclosure of Financial Activity, §40.3 regarding PFS Required for Each Year of Service, §40.5 regarding Assets and Liabilities of Business Associations, §40.9 regarding Exchange Traded Funds and Real Estate Investment Trusts, §40.11 regarding Publicly Traded Corporation as Source of Income, §40.13 regarding Beneficial Interest in Real Property Includes Real Property Held in a Trust, §40.15 regarding Identification of the Source of Rents Derived from Rental Property, and §50.1 regarding Legislative Per Diem. The text of the proposed amended and new rules are located below.
Summary of Proposed Rules, in English
Chapter 40: These amendments and new rules are intended to clarify the requirements of a personal financial statements filed under Chapter 572 of the Government Code and to make sure the reporting requirements are consistent with state law.
Chapter 50.1: The Texas Constitution requires the TEC to set the per diem to which members of the legislature and the lieutenant governor are entitled for each day during each regular and special session of the Legislature. Tex. Const. art. III, §§24(a), 24a(e). The rule as amended would set the per diem for members of the legislature and the lieutenant governor at $267 for each day during the regular session and any special session. The rate is equal to set for a per diem in Austin, Texas for a federal employee by the General Services Administration.
Resumen de las Reglas Propuestas, en español
Capítulo 40: Estas enmiendas y las reglas nuevas tienen la intención de clarificar los requisitos de los estados de cuentas financieros personales que se sometieron bajo el Capítulo 572 del Código Gubernamental y para asegurar que los requerimientos del reporte son consistentes con la ley estatal.
Capítulo 50.1: La Constitución de Texas requiere que la Comisión de Ética de Texas (TEC por sus siglas en ingls) fije el costo por día, el cual los miembros de la legislatura y el vicegobernador son elegibles por cada día durante la sesión regular y especial de la Legislatura de Texas. El Artículo III, §§24(a), 24a(e) de la Constitución de Texas. La regla como está enmendada fijaría la cuota diaria para los miembros de la legislatura y el vicegobernador a $267 por cada día durante la sesión regular y cualquier sesión especial de la Legislatura de Texas.
§40.2. Disclosure of Financial Activity
Text of Proposed Amended Rule
§40.3. PFS Required for Each Year of Service
Text of Proposed New Rule
§40.5. Assets and Liabilities of Business Associations
Text of Proposed New Rule
§40.9. Exchange Traded Funds and Real Estate Investment Trusts
Text of Proposed New Rule
§40.11. Publicly Traded Corporation as Source of Income
Text of Proposed Amended Rule
§40.13. Beneficial Interest in Real Property Includes Real Property Held in a Trust
Text of Proposed New Rule
§40.15. Identification of the Source of Rents Derived from Rental Property
Text of Proposed New Rule
§50.1. Legislative Per Diem
Text of Proposed Amended Rule
§§40.2. through 40.15.
Text of Proposed Amended and New Rules
The proposed new language is indicated by underlined text.
The deleted text is indicated by [strikethrough] text.
Chapter 40. FINANCIAL DISCLOSURE FOR PUBLIC OFFICERS
§40.2. Disclosure of Financial Activity.
For purposes of §572.023 of the Government Code, a filer’s personal financial statement must include:
(1) the filer’s financial activity in which the filer held an ownership interest, including but not limited to community property; and
(2) the financial activity of the filer’s spouse and dependent children if the filer exercised [or held the right to exercise] any degree of [legal or] factual control over the activity, notwithstanding a partition agreement.
§40.3. PFS Required for Each Year of Service.
(a) A state officer who serves for any portion of a calendar year must file a PFS the following year covering financial activity that occurred during the portion of the year the state officer held office.
(b) A member of the legislature who retires at the end of the member’s term in January is not required to file a PFS covering the calendar year of service in which member retires.
(c) Comments:
(1) For example, under subsection 40.3(a) of this section, if a state officer ceases to be a state officer in October 2024, the state officer is required to file a PFS in by the deadline provided by §572.026(a) of the Government Code in calendar year 2025, covering financial activity that occurred through October 2024, provided the state officer does not holdover.
(2) Under subsection 40.3(b) of this section, a member of the legislature who retires at the end of the member’s term in January 2025 is required to file a PFS in 2025 covering calendar year 2024. The member is not required to file a PFS in calendar year 2026 covering calendar year 2025 by virtue of service from January 1 to January 6 of 2025, before the member’s successor is sworn into office.
§40.5. Assets and Liabilities of Business Associations.
Assets and liabilities of business associations that must be reported under §572.023(b)(9) of the Government Code shall be reported as though they are the assets and liabilities of the individual filer.
§40.9. Exchange Traded Funds and Real Estate Investment Trusts.
Ownership interests in exchange-traded funds and real estate investment trusts shall be reported under §572.023(b)(2) of the Government Code as though they were shares of stock.
§40.11. Publicly Traded Corporation as Source of Income [over $500].
For purposes of §572.023(b)(4), Government Code, a publicly traded corporation is identified as a source of income by disclosing its full name in addition to the category of the amount of income.
§40.13. Beneficial Interest in Real Property Includes Real Property Held in a Trust.
(a) Except as provided in subsection (b), a filer must disclose real property held in a trust for the benefit of the filer as a beneficial interest in real property under §572.023(b)(6) of the Government Code.
(b) A filer is not required to disclose real property held in a blind trust that complies with §572.023(c) of the Government Code only if the filer does not have actual knowledge of the property held in a trust for the filer’s benefit.
§40.15. Identification of the Source of Rents Derived from Rental Property.
An identification of the source of rents derived from a rental property must include the name of the lessee and the address of the rental property.
§50.1. Legislative Per Diem
Text of Proposed Amended Rules
The proposed new language is indicated by underlined text.
The deleted text is indicated by [strikethrough] text.
Chapter 50. LEGISLATIVE SALARIES AND PER DIEM
(a) The legislative per diem is $267 [$221]. The per diem is intended to be paid to each member of the legislature and the lieutenant governor for each day during the regular session and for each day during any special session.
(b) If necessary, this rule shall be applied retroactively to ensure payment of the $267 [$221] per diem for 2025 [2019].