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Texas Prohibits Local Governments from Using Public Funds to Hire Lobbyists

Original title: Relating to the use by a political subdivision of public funds for lobbying and certain other activities.

Last action · July 14, 2025: FiledSponsor: Mike Olcott

Companion · SB 12same policy, Senate version
Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Proposed

s in Texas are prohibited from using public funds to hire registered lobbyists or to pay dues to nonprofit state associations that employ registered lobbyists, effective September 1, 2025. Taxpayers and residents are authorized to seek and recover attorney's fees against political subdivisions that violate these prohibitions. Exceptions are provided for elected officers, uncompensated staff communicating with legislators, and specific legislative services offered by nonprofit associations.

Why it matters

Local governments and county commissioners courts face new restrictions on how public tax revenues can be allocated toward association memberships and government relations contracts. Taxpayers gain direct legal standing to sue in court to halt prohibited expenditures and recover legal costs.

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

Political subdivisions

Political subdivisions are barred from using public funds to hire registered lobbyists or pay dues to associations that contract with lobbyists.

Directly affected

Taxpayers

Taxpayers gain explicit legal standing to seek injunctions and recover attorney's fees against local governments violating lobbyist spending restrictions.

Directly affected

Nonprofit state associations

Nonprofit associations representing political subdivisions risk losing dues revenue if they employ individuals required to register as lobbyists under Chapter 305.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

Can local government employees still talk to state legislators under this bill?
Yes. Employees and officers are not prohibited from providing information, appearing before legislative committees, or advocating for legislation if those actions do not require them to register as lobbyists under Chapter 305.
What recourse do local taxpayers have if a city or county violates these rules?
Taxpayers or residents of the can seek appropriate in court to stop the prohibited activity and recover their reasonable attorney's fees and costs if they win.
Are nonprofit associations that represent local governments entirely banned from offering legislative services?
No. Full-time employees of a nonprofit state association representing s are allowed to provide bill tracking, bill analysis, legislative alerts, direct informational communications, and testimony before legislative committees, provided those actions do not trigger lobbyist registration requirements.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

This bill did not become law - Died at adjournment · introduced in the House.

Procedural history

1 action
  1. Jul 14, 2025HouseIntroduced
    Filed

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Connected Entities

Local Government Code, Mike Olcott, Government Code
otherLocal Government Code“Statute amended at Section 89.002 regarding state association of counties”Map →
PersonMike Olcott“Bill author in the lower house”Map →
otherGovernment Code“Statute amended by adding Section 556.0056 and referencing Chapter 305 and Chapt”Map →

Sources

Open source document

capitol.texas.gov

Analysis Score

0–100
  • Significance20
    Lowered because this bill did not pass (its text scored 75)
  • Controversy65
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz45
    Current news / social attention level

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