SB869

Regular Session

Relating to the deadline for the Texas Ethics Commission to resolve certain complaints.

ModeratePlan for compliance

Low Cost

Effective:2025-09-01

Enforcing Agencies

Texas Ethics Commission

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: September 1, 2025
Compliance Deadline: August 1, 2025 (Internal protocols must be updated prior to the effective date to handle the accelerated enforcement timeline).
Agency Rulemaking: The TEC is expected to repeal or amend current Rules 12.22 and 12.23 prior to September 2025. While the statute prohibits rules that extend the deadline, the agency will likely issue procedural guidance on how it intends to fast-track "preliminary reviews" to meet the 120-day mandate.

Immediate Action Plan

Audit Current Cycle: Conduct a full audit of all political activity records for the current cycle immediately. Enter the September 2025 regime with zero outstanding liabilities.
Update Protocols: Establish a written "48-Hour Response Protocol" for any mail or email received from the TEC.
Resolve Legacy Issues: If you are aware of potential reporting errors, self-report and resolve them *before* September 1, 2025, to utilize the current, more flexible administrative timeline.
Check Insurance: Confirm your liability insurance does not exclude "fines and penalties" or administrative defense costs.

Operational Changes Required

Contracts

Lobbying Master Services Agreements (MSAs): Amend agreements with external firms to require notification within 24 hours of any TEC inquiry. The 120-day clock is absolute; you cannot afford a vendor sitting on a notice for a week.
Indemnification Clauses: Strengthen indemnification language. Because the TEC is incentivized to litigate rather than negotiate, legal defense costs will rise. Ensure vendors cover these costs if their reporting errors trigger the complaint.
Employment Agreements: Review contracts for in-house Government Affairs Directors to clarify the scope of corporate legal defense coverage for individual ethics complaints.

Hiring/Training

Rapid Response Training: Train compliance staff and in-house counsel that a TEC inquiry is no longer an administrative annoyance but a pre-litigation event.
Settlement Authority: The General Counsel or Compliance Officer requires pre-authorized settlement authority ranges. You will not have time to convene a Board meeting before the TEC moves to the next enforcement stage.

Reporting & Record-Keeping

Real-Time Audit Readiness: The "amend-it-later" strategy is now high-risk. Reports must be accurate upon filing.
Evidence Digitization: All gift logs, receipts, and contribution data must be digitized and searchable. If a complaint is filed, you must be able to produce exculpatory evidence within 48 hours to force a dismissal before the agency commits to litigation.

Fees & Costs

Legal Defense Budget: While statutory fees remain unchanged, the Fiscal Note confirms the TEC is hiring additional attorneys specifically for hearings and litigation. Expect outside counsel costs for ethics defense to increase significantly as cases move to court faster.
Insurance: Review Directors & Officers (D&O) and Political Activity Liability policies to ensure they cover defense costs for civil litigation initiated by a state agency.

Strategic Ambiguities & Considerations

Definition of "Litigation": The statute tolls the deadline only for "litigation... regarding the complaint." It is currently unclear if filing a procedural motion, a request for an Attorney General opinion, or a Temporary Restraining Order (TRO) constitutes "litigation" sufficient to stop the clock.
The "preliminary finding" Loophole: To avoid mandatory dismissal at day 120, the TEC may aggressively issue "preliminary findings of violation" much earlier in the process. This shifts the burden to the respondent to prove innocence in a formal hearing, effectively skipping the informal resolution phase.

Need Help Understanding Implementation?

Our government affairs experts can walk you through this bill's specific impact on your operations.

Schedule Consultation

Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

Legislative Timeline

This bill's path through the Texas Legislature

TopicsElections Elections--candidates Ethics Ethics Commission, Texas

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

Senate Research Center	S.B. 869
89R5446 MZM-D	By: Birdwell
	State Affairs
	2/20/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

In 2019, the legislature adopted S.B. 548 into law which directed the Texas Ethics Commission (TEC) to either dismiss or propose a resolution for a formal complaint within a 120-day period; the only exception would be if the complaint were to proceed to litigation. The TEC, however, adopted without explicit authority what is now Rule 12.23(d), which provides the 120-day deadline is tolled (delayed) upon the issuance of a subpoena and resets "on the date the person to whom the subpoena is directed complies with the subpoena."

S.B. 869 clarifies that during an investigation of an official complaint, the TEC must either dismiss or propose a resolution within a 120-day period without tolling unless litigation is brought by the respondent or the commission regarding the complaint.

As proposed, S.B. 869 amends current law relating to the deadline for the Texas Ethics Commission to resolve certain complaints.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 571.1242(h), Government Code, as follows:

(h) Provides that, notwithstanding any other law, including Sections 571.1244 (Preliminary Review and Preliminary Review Procedures) and 571.136 (Extension of Deadline):

(1) creates this subdivision from existing text and makes nonsubstantive changes; and

(2) prohibits the Texas Ethics Commission (TEC) from tolling or extending the deadline under Subsection (g) (relating to requiring TEC to take certain actions upon receiving a respondent's response to notice) for a duration other than the duration described by Subdivision (1) (relating to providing that the deadline under Subsection (g) is tolled only for a certain duration) or adopting or enforcing a rule to toll or extend the deadline for a duration other than the duration described by that subdivision.

SECTION 2. Makes application of Section 571.1242(h), Government Code, as amended by this Act, prospective.

SECTION 3. Effective date: September 1, 2025.

Senate Authors

Sen. Brian BirdwellRepublican · Primary Author

Coauthors (3)

House Sponsor

Rep. Matthew ShaheenRepublican · Primary Sponsor

Bill Text(with markup)

S.B. No. 869

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to the deadline for the Texas Ethics Commission to resolve
	certain complaints.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 571.1242(h), Government Code, is amended
	to read as follows:
	(h) Notwithstanding any other law, including Sections
	571.1244 and 571.136:
	(1) the [~~The~~] deadline under Subsection (g) is tolled
	only for the duration of any litigation brought by the respondent or
	the commission regarding the complaint at issue; and
	(2) the commission may not toll or extend the deadline
	under Subsection (g) for a duration other than the duration
	described by Subdivision (1) or adopt or enforce a rule to toll or
	extend the deadline for a duration other than the duration
	described by that subdivision.
	SECTION 2. Section 571.1242(h), Government Code, as amended
	by this Act, applies only to a complaint filed with the Texas Ethics
	Commission under Chapter 571, Government Code, on or after the
	effective date of this Act. A complaint filed with the Texas Ethics
	Commission under that chapter before the effective date of this Act
	is governed by the law in effect on the date the complaint was
	filed, and the former law is continued in effect for that purpose.
	SECTION 3. This Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


February 21, 2025

TO:	Honorable Bryan Hughes, Chair, Senate Committee on State Affairs

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB869 by Birdwell (Relating to the deadline for the Texas Ethics Commission to resolve certain complaints.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for SB869, As Introduced: a negative impact of ($595,240) through the biennium ending August 31, 2027.

General Revenue-Related Funds, Five- Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026	($300,430)
2027	($294,810)
2028	($294,810)
2029	($294,810)
2030	($294,810)

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from General Revenue Fund 1
2026	($300,430)
2027	($294,810)
2028	($294,810)
2029	($294,810)
2030	($294,810)

Fiscal Analysis

The bill would amend the Government Code relating to the timing thatthe Texas Ethics Commission (TEC) has to investigate an alleged complaint. Under current practices, TEC has 120 days following a response from the alleged offender to either make an initial settlement offer or dismiss the complaint. This time is reset should TEC respond to the alleged offender with additional written questions.

The bill would remove the ability of TEC to toll the 120-day clock with additional questions or discovery requests in its preliminary review of the case, as currently established under TEC rules 12.22 and 12.23. According to the agency, under the provisions of the bill, in order to avoid mandatory dismissals TEC would be required to engage in hearings or litigation over discovery under the provisions of Government Code 571.1242(i). TEC currently has five attorneys engaged in enforcement and the agency estimates that an additional two attorneys would be required to maintain current levels of performance during these hearings.

Methodology

TEC estimates that each additional Attorney III position would cost $110,000 per year in salaries and $35,013 in benefits per fiscal year. According to the agency, initial additional operating expenses, such as computers and office space and equipment, would be $5,202 in fiscal year 2026 and $2,392 per fiscal year thereafter per attorney.

Technology

No additional technology costs beyond normal office expenses are anticipated.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

356 Texas Ethics Commission

LBB Staff:

JMc, WP, LCO, GP

Related Legislation

Explore more bills from this author and on related topics

Frequently Asked Questions

Common questions about SB869

What does Texas SB869 do?

SB869 eliminates the Texas Ethics Commission’s (TEC) ability to "toll" (pause) the 120-day deadline for resolving complaints through administrative discovery. This statutory cap forces the TEC to either settle, dismiss, or file suit immediately upon receiving a complaint, removing the years-long "negotiation phase" businesses previously relied upon. This change increases litigation risk for all entities under TEC jurisdiction, including PACs, lobbyists, and government vendors.

Who authored SB869?

SB869 was authored by Texas Senator Brian Birdwell during the Regular Session.

When was SB869 signed into law?

SB869 was signed into law by Governor Greg Abbott on June 20, 2025.

Which agencies enforce SB869?

SB869 is enforced by Texas Ethics Commission.

How urgent is compliance with SB869?

The compliance urgency for SB869 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of SB869?

The cost impact of SB869 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does SB869 address?

SB869 addresses topics including elections, elections--candidates, ethics and ethics commission, texas.

Legislative data provided by LegiScanLast updated: November 25, 2025

Need Strategic Guidance on This Bill?

Need help with Government Relations, Lobbying, or compliance? JD Key Consulting has the expertise you're looking for.