05/02/2011-CC-Agenda Packet-Work SessionTEXAS
AGENDA
CITY COUNCIL
WORKSESSION
MONDAY, MAY 25 2011
6#00 PM
502 ELM STREET
Call Meeting to Order.
Discussion on Future Annexations Along the West Side of Interstate 35.
Discussion on Impact Fees.
Discussion on the Ethics Policy for the City Council and the Board and Commission
Members.
Overview of Items on Regular Agenda.
Adjournment.
I, the undersigned authority, do hereby certify that this Notice of Meeting was posted on the
bulletin board, at the City Hall of the City of Sanger, Texas, a place convenient and readily
accessible to the general public at all times, and said notice was posted on the following date
and time: _
posted until m
Tami Taber, City Secretary
City of Sanger, Texas
is adjourned.
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at S'QO a.m. and shall remain
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This faciliTy is wheelchair accessible and accessible parking spaces are available. Requests for
accommodations or interpretive services must be made 48 hours prior to this meeting. Please contact
the City Secretary's office at (940) 45&7930 for further information.
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Re: Ethics policy
Attached is a draft of the new ethics policy for the City Council and board and commission members.
Also attached is the state statute on ethics and a document explaining the state statute. We will be
discussing it at the May 2'd work session. Due to the amount of information being provided I wanted to
get it to you as soon as possible. Let me know if you have any questions.
1
Ethics Code of Conduct
Purpose
Open, responsive and efficient local government requires public confidence in the integrity %J its
public servants. To preserve and enhance public trust it is imperative that all elected and
appointed officials conduct themselves ethically and avoid even the appearance of unethical
behavior. Elected and appointed officials are, and should be, held to a higher standard because
they are entrusted with public funds.
Scope
This Ethics Code spells out the ethical standards expected for those elected to the City Council or
appointed to any City board or commission. These standards in general follow Section 171 of
the Local Government Code but in some cases are more stringent and broader in scope. These
standards apply even if the individual is not subject to Section 171 of the Local Government
Code.
Definitions
Official —Means any person serving on the City Council or appointed by the Council to serve on
any City board or commission.
Immediate Family — Means an official's husband, wife, father, mother, brother, sister, son,
daughter, and like relatives by marriage such as a stepson, stepdaughter, father-in-law, mother-
in-law, brother-in-law, sister-in-law, son-in-law or daughter-in-law.
Interest —Means direct or indirect pecuniary or material benefit accruing to an official as a
result of a contract or transaction which is or may be the subject of an official act or action of the
City, except for such contracts or transactions which confer similar benefits to all other persons
and/or property similarly situated. For the purpose of this policy an official is deemed to have an
interest in the affairs of
l . Any person of the Official's immediate family as deemed herein.
2. Any business entity in which the Official or his immediate family has more than 10%
ownership or owns $15,000 or more of the fair market value of the entity.
3. Any business in which the voting stock of, or legal or beneficial ownership of, in excess
of 10% of the total stock or total legal and beneficial ownership, is controlled or owned
directly or indirectly by the Official or his or her immediate family.
4. Any Business if the Official or his or her immediate family receives more than 10% of
their gross income from the business in the previous year.
5. Any person or business entity with whom a contractual relationship exists with the
official or his or her immediate family; provided that a contractual obligation of less than
$2500, or a commercially reasonable loan made in the ordinary course of business or a
contract for a commercial retail sale shall not be deemed to create an interest in violation
of this chapter.
6. Any real property if the Official or his or her Immediate Family has a $2500 or greater
ownership in the property. A conflict of interest is deemed not to exist if it would not
have a special economic effect on the official's property that is distinguishable from its
effect on the general public.
Single Source — Is defined as any person or entity or representative or agent acting on behalf of a
person or entity.
Certain Priviieges or Exemptions Prohibited
No official shall use his/her position to secure special privileges or exemptions for him/herself or
any other person or persons. No official shall accept anything of value that may tend to
influence him/her in the discharge of his/her duties.
Incompatible Employment or Activity Prohibited
No official shall engage in or accept private employment or render services for private
individuals or entities or engage in any business or professional activity incompatible with the
proper discharge of his/her official duties, or when it would require or induce him/her to disclose
confidential information acquired by him/her by reason of his/her official position.
No official shall assist anyone with an adversarial matter involving the City except to the extent
required or compelled by law. No official shall represent or make an appearance as an advocate
in front of any board or commission of the City except in his/her official capacity as a
representative of the City or to represent his or her self.
Disclosure of Confidential Information Prohibited
No official shall, except as required by the legitimate performance of his/her duties, intentionally
disclose confidential information, including information gained in executive session, gained by
reason of his/her official position, nor shall he or she use confidential information for his/her
personal interest or gain.
Conflict of Interest
No official shall engage in any act which is in conflict with, or creates an appearance of conflict
with, the performance of his/her official duties.
Officials shall disclose their interest in any matter by filing an affidavit with the City Secretary
prior to the matter being considered by their respective board and shall abstain from discussion
or action on any matter in which they have an interest as defined herein.
Link to Affidavit of Conflict of Interest: http://www.ethics.state.tx.us/forms/CIS.pdf
Gifts
No official may accept gifts, except as exempted below or any other thing of value in excess of
$250.00 in a calendar year from any single source. The value of gifts given to the official's
immediate family shall be attributed to the official in calculating the annual value.
The following items are presumed not to influence and may be accepted by an official as long as
there is no demanded, suggested, implied or inferred action or inaction on the official's part in
exchange for receiving the item:
1. Unsolicited cards, flowers, plants, or food items under $50.00.
2. Unsolicited promotional items of nominal value such as pens and note pads.
3. Unsolicited awards in the form of a plaque, trophy, desk item, wall memento or similar
item.
4. Unsolicited items received for the purpose of evaluation or review and used for official
business.
5. Informational material, publications or subscriptions related to the recipient's official
duties.
6. Food and beverages at hosted receptions or infrequent business lunches or dinners related
to an official's official duties.
7. Admission to and the cost of food and beverages at events sponsored by or in conjunction
with a civic, charitable, governmental or community organization.
The presumptions above are rebuttable and may be overcome by the circumstances surrounding
the giving and acceptance of the item.
Use of Public Property
No official shall request or permit the use of City vehicles, equipment, materials, or property for
personal convenience or profit. Use is restricted to such services as are available to the general
public, for the conduct of official business and for such purposes and under such conditions as
are directed by administrative order of the City Manager.
Political Activities
No official shall use his/her official authority or influence for the purpose of interfering with or
influencing the result of a municipal election. No official shall campaign for or against any
candidate or issue while on City property. No official shall represent their advocacy or
opposition for any candidate or issue as the official position of the City. No Official shall use
their City email, City computer, City stationary, or any other City owned equipment for any
campaign related activities.
Conduct
Officials shall maintain a professional demeanor when representing the City. Officials shall
conduct themselves so as not to bring embarrassment or disgrace on the City. Further, no official
shall engage in any activity or associate with any group, either formal or informal, that has the
potential to embarrass or disgrace the City by the official's involvement.
Officials shall not knowingly file a false charge or complaint of a violation of this ethics code.
Officials shall not induce, coerce or attempt to induce or coerce anyone into violating the ethics
code. Officials shall in no way retaliate against any person making a complaint of violations of
this ethics code.
Complaints
Ethics complaints against an official maybe filed by anyone who is a parry to the alleged
violation. Complaints shall be in writing and shall detail the alleged violation including, but not
limited to, the date(s) and time(s) of the alleged violation if known, the Section(s) of the ethics
code that was allegedly violated, names and contact information for all parties and witnesses
involved, and a detailed narrative of what occurred. Complaints must be signed in the presence
of a Notary and notarized. Complaints shall be filed with the City Secretary. The City Secretary
will forward the complaint to the Ethics Board.
An official who is aware of a possible violation but who is not a party to the possible violation
has a duty to report the possible violation to the City Manager's office. In such a case the
complaining parry, at least initially, will be the City.
Investigations and Hearing
The Ethics Board shall investigate the complaint. The Ethics Board may call upon the City
Attorney for legal assistance. An official who is the complainant, defendant, or other parry to the
violation or witnesses is required to attend any interviews, if called, and to cooperate fully with
the investigating officer. The Ethics Board's report will document whether or not a possible
violation or violations has occurred and if there is sufficient evidence to substantiate the alleged
nolation(s). If the Ethics Board finds that one or more violations may have occurred and can be
substantiated, an Ethics Hearing will be scheduled. All parties involved will be notified in
writing of the date and time of the hearing. All parties shall have the opportunity to be heard and
present witnesses and evidence at the hearing, one at a time. Officials who are the complainant,
defendant, or other party to the violation or witnesses are required to attend the hearing, if called,
and to cooperate fully with the Ethics Board. After the Hearing the Ethics Board will issue a
written report to the City Council.
Council Action
The Council will meet to review the report and take any action it deems necessary. Any action
shall be in the form of a resolution. Possible actions include but are not limited to: private
censure, public censure, removal from office of appointed board or commission members, or any
combination of the above. Removal of a Board of adjustment member requires a charge and
public hearing before the City Council.
False or Frivolous Charges
Any person who files a knowingly frivolous or false charge shall be solely responsible for all
costs associated with the investigation. Nothing in this Policy impedes or prohibits a falsely
accused official from taking legal action against the Complainant if falsely or frivolously
accused regardless of any disciplinary action taken against the complainant by the City.
04/14/2011 LOCAL GOVERNMENT CODE CHAPTER ...
LOCAL GOVERNMENT CODE
TITLE 5. MATTERS AFFECTING PUBLIC OFFICERS AND EMPLOYEES
SUBTITLE C. MATTERS AFFECTING PUBLIC OFFICERS AND EMPLOYEES OF MORE
THAN ONE TYPE OF LOCAL GOVERNMENT
CHAPTER 171. REGULATION OF CONFLICTS OF INTEREST OF OFFICERS OF
MUNICIPALITIES, COUNTIES, AND CERTAIN OTHER LOCAL GOVERNMENTS
Sec. 171.001. DEFINITIONS. In this chapter:
(1) "Local public official" means a member of the
governing body or another officer, whether elected, appointed,
paid, or unpaid, of any district (including a school district),
county, municipality, precinct, central appraisal district, transit
authority or district, or other local governmental entity who
exercises responsibilities beyond those that are advisory in
nature.
(2) "Business entity" means a sole proprietorship,
partnership, firm, corporation, holding company, joint-stock
company, receivership, trust, or any other entity recognized by
law.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 171.002. SUBSTANTIAL INTEREST IN BUSINESS ENTITY. (a)
For purposes of this chapter, a person has a substantial interest
in a business entity if:
(1) the person owns 10 percent or more of the voting
stock or shares of the business entity or owns either 10 percent or
more or $15,000 or more of the fair market value of the business
entity; or
(2) funds received by the person from the business entity
exceed 10 percent of the person's gross income for the previous
tear .
(b) A person has a substantial interest in real property if
the interest is an equitable or legal ownership with a fair market
value of $2,500 or more.
...state.tx.us/Dots/LG/htm/LG.171.htm 1/5
04/14/2011 LOCAL GOVERNMENT CODE CHAPTER ...
(c) A local public official is considered to have a
substantial interest under this section if a person related to the
'>fficial in the first degree by consanguinity or affinity, as
determined under Chapter 573, Government Code, has a substantial
interest under this section.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended
by Acts 1989, 71st Leg., ch. 1, Sec. 40(a), eff. Aug. 28, 1989;
Acts 1991, 72nd Leg., ch. 561, Sec. 37, eff. Aug. 26, 1991; Acts
1995, 74th Leg., ch. 76, Sec. 5.95(27), eff. Sept. 1, 1995; Acts
1997, 75th Leg., ch. 849, Sec. 1, eff. Sept. 1, 1997.
Sec. 171.0025. APPLICATION OF CHAPTER TO MEMBER OF HIGHER
EDUCATION AUTHORITY. This chapter does not apply to a board member
of a higher education authority created under Chapter 53, Education
Code, unless a vote, act, or other participation by the board
member in the affairs of the higher education authority would
provide a financial benefit to a financial institution, school,
-ollege, or university that is:
(1) a source of income to the board member; or
(2) a business entity in which the board member has an
interest distinguishable from a financial benefit available to any
other similar financial institution or other school, college, or
university whose students are eligible for a student loan available
under Chapter 53, Education Code.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 41(a), eff. Aug. 28,
1989.
Sec. 171.003. PROHIBITED ACTS; PENALTY. (a) A local public
official commits an offense if the official knowingly:
(1) violates Section 171.004;
(2) acts as surety for a business entity that has work,
business, or a contract with the governmental entity; or
{3) acts as surety on any official bond required of an
officer of the governmental entity.
(b) An offense under this section is a Class A misdemeanor.
...state.tx.us/Does/LGjhtm/LG.171.htm 2/5
04/14/2011 LOCAL GOVERNMENT CODE CHAPTER ...
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended
by Acts 1989, 71st Leg., ch. 1, Sec. 40(a), eff. Aug. 28, 1989.
Sec. 171.004. AFFIDAVIT AND ABSTENTION FROM VOTING REQUIRED.
(a) If a local public official has a substantial interest in a
business entity or in real property, the official shall file,
before a vote or decision on any matter involving the business
entity or the real property, an affidavit stating the nature and
extent of the interest and shall abstain from further participation
in the matter if.
(1) in the case of a substantial interest in a business
entity the action on the matter will have a special economic effect
on the business entity that is distinguishable from the effect on
the public; or
(2) in the case of a substantial interest in real
property, it is reasonably foreseeable that an action on the matter
will have a special economic effect on the value of the property,
distinguishable from its effect on the public.
(b) The affidavit must be filed with the official record
keeper of the governmental entity.
(c) If a local public official is required to file and does
file an affidavit under Subsection (a), the official is not
required to abstain from further participation in the matter
requiring the affidavit if a majority of the members of the
governmental entity of which the official is a member is composed
of persons who are likewise required to file and who do file
affidavits of similar interests on the same official action.
Acts 1987, 7Oth Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended
by Acts 1989, /1st Leg., ch. 1. Sec. 40(a), eff. Aug. 28, 1989.
Sec. 171.005. VOTING ON BUDGET. (a) The governing body of a
governmental entity shall take a separate vote on any budget item
specifically dedicated to a contract with a business entity in
which a member of the governing body has a substantial interest.
(b) Except as provided by Section 171.004(c), the affected
member may not participate in that separate vote. The member may
vote on a final budget if.
...state.tx.us/Does/LG/htm/LG.171.htm 3/5
04/14/2011 LOCAL GOVERNMENT CODE CHAPTER ...
(1) the member has complied with this chapter; and
(2) the matter in which the member is concerned has been
'resolved.
Acts 1987, 70th Leg.,
Renumbered from Sec.
ch. 1, Sec. 40 {a) , of
ch. 149, Sec. 1, eff. Sept.
171.006 and amended by Acts
f. Aug. 28, 1989.
1, 1987 .
1989, 71st Leg.,
Sec. 171.006. EFFECT OF VIOLATION OF CHAPTER. The finding by
a court of a violation under this chapter does not render an action
of the governing body voidable unless the measure that was the
subject of an action involving a conflict of interest would not
have passed the governing body without the vote of the person who
violated the chapter.
Acts 1987, 70th Leg.,
Renumbered from Sec.
40(a), eff. Aug. 28,
ch. 149, Sec. 1, eff.
171.008 by Acts 1989,
1989.
Sept. 1, 1987.
71st Leg., ch. 1, Sec.
Sec. 171.007. COMMON LAW PREEMPTED; CUMULATIVE OF MUNICIPAL
PROVISIONS. (a) This chapter preempts the common law of conflict
of interests as applied to local public officials.
(b) This chapter is cumulative of municipal charter
provisions and municipal ordinances defining and prohibiting
conflicts of interests.
Amended by Acts 1989, 71st Leg., ch. 1, Sec. 40(a}, eff. Aug. 28,
1989.
Sec. 171.009, SERVICE ON BOARD OF CORPORATION FOR NO
COMPENSATION. It shall be lawful for a local public official to
serve as a member of the board of directors of private, nonprofit
corporations when such officials receive no compensation or other
remuneration from the nonprofit corporation or other nonprofit
ntity.
Added by Acts 1989, 71st Leg., ch. 475, Sec. 2, eff. Aug. 28, 1989.
...state.tx.usjDtKs%LG/htm/LG.171.htm 4/5
04/14/2011 LOCAL GOVERNMENT CODE CHAPTER ...
Sec. 171.010. PRACTICE OF LAW. (a) For purposes of this
chapter, a county judge or county commissioner engaged in the
private practice of law has a substantial interest in a business
entity if the official has entered a court appearance or signed
court pleadings in a matter relating to that business entity.
(b) A county judge or county commissioner that has a
substantial interest in a business entity as described by
Subsection (a} must comply with this chapter.
(c) A judge of a constitutional county court may not enter a
court appearance or sign court pleadings as an attorney in any
matter before:
(1) the court over which the judge presides; or
(2) any court in this state over which the judge's court
exercises appellate jurisdiction.
(d) Upon compliance with this chapter, a county judge or
commissioner may practice law in the courts located in the county
where the county judge or commissioner serves.
added by Acts 2003, 78th Leg., ch. 227, Sec. 21, eff. Sept. 1,
2003; Acts 2003, 78th Leg., ch. 1206, Sec. 3, eff. June 20, 2003.
...state.tx.us/DocsJLG/htm/LG.171.htm 5/5
2010 TEXAS CONFLICT
L
l
A nswers to the most frequently asked
about the Texas Conflict of I nterest
ZINDIA THOMAS
COUNTY AFFAIRS SECTION
OFFICE OF THE ATTORNEY GENERAL
(512)936-9901
JULIAN GRANT
MUNICIPAL AFFAIRS SECTION
OFFICE OF THE ATTORNEY GENERAL
(512)475-4683
BECKY CASARES
COUNTY AFFAIRS SECTION
OFFICE OF THE ATTORNEY GENERAL
(512)936-7949
ATTORNEY GENERAL OF TEXAS
L
questions
aws
GREG ABBOTT
Index to Conflict of Interest Laws FAQ
Issue Addressed Page Number
1. Application of conflict of interest laws to local officials.....................................................1
2. Application of conflict of interest laws to local boards.......................................................2
3. Application of conflict of interest laws to purely advisory committees ..............................2
4. Types of issues covered by conflict of interest laws...........................................................2
5. What constitutes a "business entity„....................................................................................3
6. What constitutes a "substantial interest" in a business entity..............................................3
7. Employment by a business entity........................................................................................4
8. Test for conflicts of interest regarding a business entity.....:...............................................4
9. Effect of indirect benefit from a contract.............................................................................4
10. What constitutes a "substantial interest" in real property....................................................5
11. Test for conflicts of interest regarding real property,
12. Whether the child of an official can create a potential conflict...........................................6
13. When the effect on official's business or property is the same as on the general public .....6
14. Required actions of official with conflict of interest...........................................................6
15. Inability of official with conflict to deliberate despite abstaining from vote ......................7
16. Ability of local entity to separate item from budget if conflict of interest. * * * * 0 a * a 6 0 4 6 4 6 * * a 4 4 & 0 0 a 0 47
IT Handling conflicts if a majority of the governmental body has conflict .............................7
18. Ability of a home rule city to provide conflict limits..........................................................8
19. Existence of state statutes that require stricter conflict limits or additional reports, ...........8
20. Conflict of interest limitations for depositories...................................................................8
21. Conflict of interest limitations for judges.....................................................:......................9
22. Conflict of interest limitations for lawyers..........................................................................9
23. Legality of contract that violates the conflict of interest laws. . 4 0 9 0 & 4 a * a a a 4 1 4 4 4 6 0 0 0 0 * * 0 . a 0 a 1 6 & & 6 a 6 * * 0 4 4 0 10
24. Removal from office for conflict of interest violations.....................................................10
25. Criminal penalties for conflict of interest violations.........................................................10
26. Conflict of law and economic development corporations.................................................11
27. Conflict of law and municipal utility districts...................................................................11
28. Whether direct, personal matters can be considered a conflict of interest ........................12
SampleAffidavit...........................................................................................................................413
Texas Conflict of Interest Laws Made Easy
Every time a local public official participates in contracting with his or her governmental entity or
owns real property that may be affected by that entity's actions, the official must consider whether
his or her discussion, decision or vote on an item will violate either Texas conflict of interest laws or
local conflict of interest provisions. Public officials need to be aware of the applicable standards for
determining when such a conflict of interest may exist and how such conflicts must be handled. The
following questions and answers provide a lay person's explanation of the general conflict of interest
laws that apply to Texas local officials. This handbook is to provide general guidance on the issues
raised in this area. While the Municipal Affairs and County Affairs sections of the Office of the
Attorney General are available to answer questions about this article from city and county officials,
local officials should consult with their legal counsel regarding the application of the law to the facts
of each particular situation. This document may give guidance to officials of other public entities as
well.
1. What conflict of interest laws apply to local public officials in Texas?
The general conflict of interest law for Texas city and county officials, as well as officials of other
Texas political subdivisions, is found in chapter 171 of the Texas Local Government Code.' Chapter
171 establishes the standard for determining when a local official has a conflict of interest that
would affect her ability to discuss, decide or vote on a particular item.' Chapter 171 conflict of
interest provisions apply to all local public officials.' Within a governmental unit, "local public
officials" are defined to include:
1) elected officials such as the members of the city council or county commissioners
(whether paid or unpaid); and
2) appointed officials (paid or unpaid) who exercise responsibilities that are more than
advisory in nature.4
It should be noted that other state and federal laws, as well as local provisions in the case of cities,
maybe applicable to officials in a particular situation. Whether a law is applicable depends on the
activity that the official is undertaking. Officials should work with local legal counsel to determine
whether their activities are subject to any such provisions. However, the general conflict of interest
provision for officials remains chapter 171 of the Local Government Code.
' TEx. Loc. Gov'T CODE Arr�. §§ 171.001 - .010 (Vernon 2008).
2 Id. § 171.002.
' Id. § 171.001(1).
4 Id.
2010 Texas Conflict of Interest Laws Made Easy •Office of the Attorney General
1
2. Do conflict of interest laws apply to persons appointed to local boards and
commissions (e.g., planning and zoning commission members)?
Chapter 171 conflict of interest laws apply to persons appointed to local boards and commissions if
the board or commission exercises powers that are more than advisory in nature.' For example,
members of a city's planning and zoning commission would be subject to chapter 171 conflict of
interest provisions. Accordingly, the ability of such officials to discuss or vote on an item would be
limited by these laws if the official has what is considered a conflict of interest on the issue.
3. Do conflict of interest laws apply to members of purely advisory
committees that are established by the local entity?
No, chapter 171 conflict of interest provisions apply to an officer who exercises responsibilities
beyond those that are advisory in nature.' Whether an officer exercises such responsibilities depends
upon the authority vested in him or her by law and not necessarily the title of a committee to which
he or she belongs.
A city may by ordinance, or city charter if it is a home rule city, adopt other provisions defining and
prohibiting conflicts of interest.'
4. What types of issues are covered by Texas conflict of interest laws?
Texas conflict of interest statutes do not address every conceivable conflict that may arise for a local
official. In fact, chapter 171 conflict laws are generally financial in nature and only cover two types
of conflicts of interest:
1) Business Entity conflicts: Conflicts due to a local official's substantial financial
interest in a "business entity" that has an issue before his or her governmental unit;
or
2) Real Property conflicts: Conflicts due to a local official's substantial financial
interest in "real property" that would be affected by his or her governmental unit'
action.'
If an item is being considered by a local official that does not involve a business entity or real
property, then chapter 171 conflict of interest laws would not be applicable.10
' Id.
6 Id.
' Id. § 171,007,
8 Id. § 171.002(a).
9 Id. § 171.002(b).
io Another restriction that rarely arises is in section 171.003, which prohibits an official from acting as a surety for
businesses doing business with the governmental entity and as a surety on bonds involving public officials.
2010 Texas Conflict of Interest Laws Made Easy •Office of the Attorney General
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5. What is the definition of a "bus4ness entity" for purposes of the conflict of
interest laws?
For purposes of Texas conflict of interest laws, a "business entity" means:
sole proprietorships, partnerships, firms, corporations, holding companies, joint-
stock companies, receiverships, trusts, and any other entity recognized by law as a
business entity."
Governmental entities such as cities or school districts are not considered business entities.12
Accordingly, if the issue before a city council involves a governmental entity, an official's
relationship with that entity would not subject that official to conflict of interest laws. However, an
economic development corporation is a business entity, so an official with a substantial interest in
the corporation would have to comply with chapter 171.13
6. What is considered a "substantial interest" in a business entity (such that it
would amount to a potential conflict of interest)?
There are four ways that a person could be deemed to have a "substantial interest" in a business
entity that would raise a potential conflict of interest. A person has a substantial interest in a
business entity if the person has a(n):
1) Stock interest: If the official owns 10 percent or more of the total voting stock or
shares of the business entity;14
2) Other ownership interest: If the official owns either 10 percent or more, or $15,000
or more, of the fair market value of the business entity;15
3) Income interest: If the official received more than 10 percent of his or her gross
income for the previous year from the business entity;16
4) Close family member with any of the above interests: If a close relative of the local
official has any %J the above types of interest in a business entity. A local official is
considered to have the same interest in a business entity that . his or her close
relatives have in that business entity. In this context, close relatives of an official
would include persons who are related to the official within the first degree by
consanguinity (blood) or affinity (marriage)." Such relatives would include an
official's father, father-in-law, mother, mother-in-law, daughter, daughter-in-law,
son, son-in-law and the spouse of the official.
' I TEx. LOC. Gov'T CODE ANN. § 171.001(2) (Vernon 2008).
'Z Op. Tex. Att'y Gen. Nos. DM-267 (1993); GA-31 (2003).
13 Op. Tex. Att'y Gen. No. JC-547 (2002).
14 TEx. Loc. GOV'T CODE A iN. § 171.002(a)(1) (Vernon 2008).
15 Id.
i6 Id. § 171.002(a)(2).
17 Id. § 171.002(c).
2010 Texas Conflict of Interest Laws Made Easy •Office of the Attorney General
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7. Is the fact that a local official is employed by a business entity sufficient to
create a potential conflict?
Being employed by a business entity will prevent a local official from discussing or voting on his or
her governmental unit's contract involving that business, provided more than 10 percent of the
official's previous year's income came from his or her employment with that business.
8. What is the test for conflict of interest regarding a business entity?
State law provides "two-part test for ascertaining whether a local official has a conflict of interest
regarding a business entity that would prevent the official from participating in a vote or discussion
on that item.18 To determine whether a conflict exists that would prevent that official's participation,
one should follow the following two-step analysis:
Step one ,substantial interest anal�isi: First, the official must determine if he or she
received more than 10 percent of his gross incomein the previous year from that
business entity or if he or she owns 10 percent or more of the voting stock or shares of
the business entity or has some other substantial ownership interest in the business
entity.19 (See Question 6, part 2, above.) If the official has such an interest or a close
relative of the official has such an interest,21 the official must consider the second part of
the test for determining if a conflict of interest exists.
Step two (�ecial economic effect analysisi: The official must determine whether the
action that the local entity is considering would have a special economic effect on the
business entity that is distinguishable from its general effect on the public.21
If it is determined that the official has a substantial interest in the business entity and it is likely that
the action would have a special economic effect on the business entity that is distinguishable from its
effect on the general public,22 a conflict of interest would exist. If a conflict of interest exists, the
official is prevented from discussing or voting on an issue involving that business entity.23
9. May an indirect benefit from a contract with a business constitute a
possible conflict of interest?
In certain situations, an indirect benefit that a local official may receive regarding a business entity
may be sufficient to constitute a conflict of interest. For example, the Dallas Court of Appeals
concluded that the definition of "substantial interest" did not distinguish between funds received
directly from a business entity and funds received indirectly. Whether a particular interest was a
"substantial interest" was a question of fact.'
1s
l9
20
21
z2
l 23
24
Id. § 171.004.
Id. § 171.002(c).
Id. § 171.004(a)(1).
Id.
Dallas County Flood Control.Dist. No. 1 v. Cross, 773 S.W.2d 49, 55 (Tex. App.—Dallas 1989, no writ).
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10. What is considered a "substantial interest" in real property (such that it
would amount to a potential conflict of interest).9
There are two ways that a person could be deemed to have a "substantial interest" in "real property"
such that it would amount to a potential conflict of interest).25 A person has a substantial interest in
real property if he or she has:
1) A $2 500 ownership interest in the real property: If the official has a legal or
equitable interest in real property worth $2,500 or more26 or
2) A close family member with a $2 500 ownership interest in the real property: If a
close relative of the local official has a legal or equitable interest in real property
worth $2,500 or more. An official is considered to have the same interest in a piece
of real property that his or her close relatives have in the real property. In this
context, close relatives of an official would include persons who are related to the
official within the first degree by consanguinity (blood) or affinity (marriage).27
Such relatives would include an official's father, father-in-law, mother, mother-in-
law, daughter, daughter-in-law, son, son-in-law and the spouse of the official.
11. What is the test for conflict of interest regarding real property?
State law provides atwo-part test for ascertaining whether a local official has a conflict of interest
regarding real property that would prevent the official from participating on that item.23 To
determine whether a conflict exists that would prevent that official's participation, one should follow
the following two-step analysis:
1) Substantial Interest Anal: The official must determine if the official has a legal
or equitable interest in real property worth $2,500 or more. If the official has such an
interest or a close relative of the official has such an interest, 21 the official must
consider the second part of the test for determining if a conflict of interest exists.
2) Special Economic Effect Anal: The official must determine whether the action
that the local unit is considering would have a special economic effect on the value
of the property that is distinguishable from its general effect on the public.30
If it is determined that the official has a substantial interest in the real property and it is likely the
action would have a special economic effect that is distinguishable from its effect on the general
public,31 a conflict of interest would exist. If a conflict of interest exists, the official is prevented
from discussing or voting on an issue involving that business entity."-
2' TEx. LoC. Gov'T CODE Atvv. § 171.002(b)-(c) (Vernon 2008).
z6 Id.
27 Id. § 171.002(c).
�$ Id. § 171.004.
'9 Id. § 171.002(c).
30 Id. § 171,004(a)(2).
31 Id.
32 Id. § 171.004(a).
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The fact that an action would affect property physically close to an official's own property does not
in itself establish a conflict of interest that would prevent an official from voting on that item. The
official must consider whether the proposed governmental action would have a special economic
effect on the value of his or her own property that is distinguishable from its effect on the general
public.33 For example, if a zoning, variance or platting request would have a special economic effect
on a city official's own property or the real property of a close relative of the official, the official
could not participate in the discussion or vote on that matter.
12. Might the part-time or summer job %J an official's child create a conflict of
interest?
If a local official's child worked at a job that constituted more than 10 percent of the child's income
for the previous year, that might create a potential conflict of interest for the parent. If the child had
such an interest, the,parent could not vote on or discuss local governmental business that would have
a special economic effect on the child's employer."
13. May a local official discuss or vote on an item if the effect of the voteon the
official's business or property interest is no different than its effect on the
general public?
Yes, an official may discuss and vote on an item if there is no distinguishable difference between the
item's effect on the local official and its effect on the general public." For example, a city may be
considering the adoption of a setback requirement that would apply to all residential lots. Such a
requirement arguably would not impact a city official's property in a more significant manner than it
would impact the property of other members of the general public. In such a situation, the official
could fully participate in the discussion and vote. Of course, if the official's property would be
specially enhanced by a change in the setback requirement, then it would be more likely to present a
conflict of interest issue for the official.
14. What actions must a local official take if the official has a conflict of
interest under chapter 171?
If a local official has a conflict of interest under the two-part test of chapter 171, the, official must
take three actions:
1) File an affidavit: The official must file an affidavit with the local unit's official
record keeper stating the nature and extent of the official's interest in the matter.36
This affidavit must be filed before any vote or decision on the matter.37 A sample
conflict of interest affidavit is attached to the end of this handbook;
33 Id. § 171.004(a)(2).
3`' Op. Tex. Att'y Gen. No. JC-63 (1999).
35 TEx, Loc. GOV'T CODE ANN. § 171,004 (Vernon 2008).
36 H § 171.004(a)-(b).
37 Id. § 171.004(a).
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2) Abstain from discussion on the item: The official must abstain from discussions or
other proceedings regarding the item;38 and
3) Abstain from voting on the item:39 The official must not vote on the item.
15. May a local official deliberate about an issue with which the official has a
conflict of interest if the official, abstains from voting on the issue?
No, a local official may not discuss an issue with which he or she has a conflict of interest even if he
or she abstains from voting on the item." If a conflict of interest exists, the official must file the
required affidavit and both abstain from discussing the matter and abstain from voting on the item.41
A member of a governmental body does not participate by merely attending an executive session on
the matter and remaining silent during the deliberations. However, it may be wise for the interested
public officer to refrain from attending open or closed meetings that address the matter in which he
or she is interested.42
16. May a local entity separate out an item from a budget to allow the official
with the conflict to vote on the budget?
Yes, a governing body of a local unit shall take a separate vote on any budget item involving a
business entity in which a local official has a substantial interest.43 The remaining officials without a
conflict may separately discuss and vote on the item involving that business entity. The official with
the conflict may then vote on the final overall budget once the matter for which there was a conflict
is resolved.' The official with the conflict must also have filed the required affidavit with the
official record keeper regarding the conflict."
17. What may a local entity do if a majority of the members of the
governmental body have a conflict of interest regarding an item to be
considered?
Chapter 171 conflict of interest laws do not prevent discussion or voting on the item if a majority of
the members of a governmental body have similar conflicts of interest on the same item.46 However,
prior to any deliberations on the matter, each of the members of the governmental body with a
conflict must have filed the required affidavit noting their interest in the item.'
38 Id.
39 1�
40 Id.
41 Id. § 171.004(a)-(b).
42 Op. Tex. Att'y Gen. No. GA-334 (2005).
43 TEx. Loc. Gov'T CODE ANN. § 171.005(a) (Vernon 2008).
44 Id. § 17LO05(b).
41 Id. § 171.004(b).
46 Id. § 171.004(c).
47 Id.
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18. May a home rule city provide further conflict of interest limitations on its
city officials and employees?
Yes, a home rule city (a city with a population of 5,000 or more that has adopted a city charter) may
provide further and more restrictive conflict of interest limitations on its officials and employees.48
Such restrictions may be contained in a city ordinance, city policy or within the city charter. For
example, some cities have ethics ordinances or city charter provisions that prevent their city officials
from discussing or voting on items if the official has any financial interest in the item.
19. Are there state statutes that provide stricter conflict of interest restrictions
for particular situations or for certain public officials or that contain
additional reporting requirements?
Yes, there are certain state statutes that provide stricter conflict of interest restrictions in particular
areas. For example, there are conflict of interest statutes within Chapter 312 of the Tax Code that
completely prohibit a local unit's governing body from approving a tax abatement if a member of
that body owns the property that is the subject of the tax abatement.49 If a local official has some
type of interest in the item before the governing body, the official will want to visit with local
counsel as to whether the interest constitutes a chapter 171 conflict of interest or presents a conflict
pursuant to some other state law.
Chapter 176 of the Local Government Code requires members of the governing body and executive
officers of local government entities to file a conflicts disclosure statement relating to a person that
the governmental entity has contracted with or is considering contracting with if the local officer or
his or her family members have certain business relationships with that person if certain thresholds
apply.50 It also requires a person who contracts or seeks to contract with the local governmental
entity to file a completed questionnaire disclosing the person's affiliations and business relationships
with each member of the governing body and executive officer of the entity. 51 The disclosure forms
are prepared by the Texas Ethics Commission, available at
www.ethics.state.tx.us/whatsnew/conflict forms.litm, and these must be filed by the entity's records
administrator and posted on the Internet.52
20. Are there special conflict of interest provisions that apply to the selection
of a local depository r
Yes, there are special conflict of interest provisions that apply to the selection of a local depository.
Prior to 19675 local entities were prohibited from using a bank as a depository if a member of the
governing body was an officer, director or shareholder of the bank.53 However, this prohibition has
been substantially diminished under current law .54 Local units can now contract with a depository
4s Id. § 171.007(b); Op. Tex. Att'y Gen. No. GA-68 (2003).
49 TEx. Tnx CODE ANN. § 312.204(d) (Vernon Supp. 2008).
50 TEx. Loc. Gov'T CODE ANN. § 176.003 (Vernon 2008). See also Op. Tex. Att'y Gen. No. GA-446 (2006),
s' TEx. Loc. GOV'T CODE ANV. § 17600064
s2 Id. §§ 176.004, 17600090
s3 Op. Tex. Att'y Gen. Nos. V-640 (1948); WW-957 (1960).
s4 TEx. GOV'T CODE ANN. § 404.0211 (state agencies) (Vernon 2005); TEx. Loc, GOV'T CODE AN, , § 1310903
(other political subdivisions) (Vernon 2008).
2010 Texas Conflict of Interest Laws Made Easy •Office of the Attorney General
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even if a local official or employee with the duty to select the depository is also an officer, director
or shareholder of the bank, unless the official or employee, either individually or collectively, owns
more than 10 percent of the bank's stock." In such a situation, the entity is required to have the
interested official or employee follow all of the procedures required for a chapter 171 conflict of
interest. These procedures would include filing an affidavit, abstaining from deliberations and
abstaining from the vote regarding the depository.56 If a majority of the remaining members of the
governing body vote to select the bank as a depository, it may serve as the local entity's depository.
A home rule city may adopt stricter conflict of interest provisions that would be applicable to the
selection of a city depository. For example, a city ordinance or city charter provision may prohibit
the selection of a city depository if a city official or employee has any financial interest in the bank.
When a city chooses its depository, its local legal counsel will want to review Local Government
Code Section 131.903 for its general provisions and exceptions, as well as any local provisions that
may be applicable.
21. Are there special conflict of interest laws that apply to judges a
Chapter 171 of the Local Government Code does not contain special conflict of interest laws that
apply to judges. However, judges are subject to the Code of Judicial Conduct.57 In basic terms,
these rules require that judges avoid actions that would suggest even the appearance of impropriety."
They also prohibit judges from having any financial interest in any aspect of a case that they handle
as judges. Furthermore, Article V, Section 11 of the Texas Constitution prohibits a judge from
presiding over any case where he or she may have either a direct personal or pecuniary interest.
Additionally, a judge may not preside over any case where he or she is related to either party by
affinity or consanguinity.59 For further information on the conflict of interest provisions that apply
to judges, contact the State Commission on Judicial Conduct. The staff of the Commission can be
reached at (512) 463-5533 or (877) 228-5750. If the judge is a lawyer, the judge would also be
subject to the canons of ethics applicable to lawyers as described in the following question.
22. Are there special conflict of interest laws that apply to lawyers (e.g., city
attorneys)?
Lawyers are subject to a special canons of ethics, the Texas Disciplinary Rules of Professional
Conduct, as a part of their state licensing as attorneys.60 In basic terms, these rules require that
attorneys advise their clients of any potential conflict of interest that the lawyer may have in his
representation of a client. The lawyer must also avoid any action that would compromise the
interests of his client." For further information on the conflict of interest provisions that apply to
lawyers, contact the State Bar of Texas. The staff of the State Bar can be reached at (512) 427-1463
or (800) 204-2222.
5'Gov'T CODE AIVN § 131.903(a)(2) (Vernon 2008).
56 Id § 171.004.
57 TEX, CODE JUD. CONDUCT, reprinted in TEX. GOV'T CODE ANN., tit. 2, subtit. G app. B (Vernon 2008).
58 TEX. CODE JUD. CONDUCT, Canon 2.
59 TEX. CONST. art. V § 11; City of Oak Cliff v. State, 79 S.W. 1068, 1069 (Tex. 1904); Op. Tex. Att'y Gen. No.
DM409 (1992).
6' TEX. DISCIPLINARY R. PROF'L CONDUCT 1.01 - 9.01, reprinted in TEX. GOVT CODE ANN., tit. 2, subtitle. G
app. A (Vernon 2005 & Supp. 2009).
61 TEX. DISCIPLINARY R. PROF'L CONDUCT 1.06 - 1.09.
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23. If an official's vote on a contract violates the conflict of interest laws, is the
contract illegal and void?
Not automatically and not necessarily. It is important to note that the term "void" is not the same
thing as the term "voidable." The law says that an action taken in violation of the conflict of interest
laws is voidable, meaning that it could be declared void by a court but that the action is not void
automatically. If a court finds that an official's vote or other action on a matter violated the conflict
of interest laws, the violation would not render the ultimate action or contract voidable unless it
would not have passed without the vote of the official who violated the conflict of interest law .62
24. Must a local official be removed from office if the official violates the
conflict of interest laws?
State law does not provide for an automatic removal of a local official from office due to an alleged
or proven violation of a conflict of interest law.6' However, if such a violation is proven, it may be
used as the basis for a removal of a member of a governing body for misconduct under state law or
other statutory or city charter criteria that allow a local official to be removed for cause."
25. May a person be charged with a crime if the official violates the conflict of
interest laws?
Yes, Chapter 171 of the Local Government Code provides four situations in which a public official
may be prosecuted for his or her actions or inaction regarding a conflict of interest.65 Specifically, a
local official can be prosecuted for.
1) Failure to File an Affidavit Noting a Conflict: Failing to file an affidavit with the
official record keeper noting the official's substantial interest in an item if such a
filing is required by Local Government Code Section 171.004;66
2) Participating in Discussions Re a� rding an Item for Which There is a Conflict:
Discussing or otherwise participating on an item if such participation is prohibited
under Local Government Code Section 171.004 due to a conflict of interest on that
item;67
3) Serving as a Surety for Certain Businesses: Acting as a surety for any business entity
that has work, business or a contract of any amount with the local entity;63 or
4)' Serving as a Surety for Local Official Bonds: Acting as a surety on any official bond
that is required for an official of a governmental body of the local entity.69
6'` TEx. LoC. Gov'T CODE ANN. § 171.006 (Vernon 2008); Op
6s TEY. LoC. Gov'T CODE ANN § 171.003 (Vernon 2008)'.
'
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Violation of any of the above four items can be prosecuted as a class A misdemeanor70 and is
punishable by a fine not to exceed $4,000 and/or up to one year in jail." Whether to prosecute an
alleged violation of the conflict of interest laws is subject to the prosecutorial discretion of the local
district attorney or prosecuting criminal county attorney. The attorney general does not have
original jurisdiction to prosecute violations of conflict of interest laws by public officials.
26. Does the conflict of interest law apply to directors of an economic
development corporation?
Chapter 171 of the Local Government Code does not apply to the directors of an economic
development corporation created tinder the Development Corporation Act of 1979 because such
corporations are not considered to be governmental entities.72 However, state laws governing
corporations may have their own provisions governing certain conflicts. For instance, the Texas
Non -Profit Act prohibits loans being made by the corporation to its director.73 "If a loan is made to a
Erector, the directors who vote for making the loan and any officers participating in making the
loan, `shall be jointly and severally liable to the corporation for the amount of such loan until
repayment thereof. ""' A corporation's board members should also check the corporate bylaws for
any discussion of board conflicts.
27. Do the conflict of interest laws apply to board members of a municipal
utility district?
Yes, Chapter 171 of the Local Government Code does apply to members of a municipal utility
district (MUD)." MUD board members may not participate in a vote on a matter involving a
business entity or real property if they have substantial interests in the matter and it is reasonably
foreseeable that action on the matter would confer an economic benefit on the business entity or real
property.' Chapter 171 also imputes to a MUD board member the substantial interests of certain
near relatives in a business entity or real property. "
70 Id. § 171.003(b).
" TEx. PEN. CODE ANN. § 12.21 (Vernon 2008).
72 Op. Tex. Att'y Gen. No. JC-338 (2001).
73 TEx. Bus. ORGs, CODE ANN. § 22.225(a) (Vernon Supp. 2008).
74 Id. § 22.225(b); Op. Tex. Att'y Gen. No. JC-338, (2001).
75 Op. Tex. Att'y Gen. No. JC-184 (2000).
76 Id.
77 Id.
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28. Do the conflict of interest laws apply to members of a local governing body
who have a direct, personal matter pending before the governing body?
Chapter 171 of the Local Government Code does not apply to direct, personal matters of a member
of a local governing body. It only applies to public officials that have a substantial financial interest
in a business entity or real property. However, public policy in Texas bars public officials from
casting a deciding vote in a matter concerning an issue in which the official has a direct, personal
interest.'$ For example, a member of a governing body would be disqualified from voting on a
resolution to pay his or her legal fees, or the legal fees of another member indicted on charges for
Open Meetings Act violations.79
78 Op. Tex. Att'y Gen. No. JC-294 (2000); Hager v. State ex rel. TeVaadt, 446 S.W.2d 43, 49 (Tex. Civ.
App.—Beaumont 1969, writ refd n.r.e.).
79 Op. Tex. Att'y Gen. No. JC-294 (2000).
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SAMPLE AFFIDAVIT
THE STATE OF TEXAS
COUNTY OF
I,
(Name)
(governing body, board, commission)
and hereby under oath state the following:
as a member of the
make this affidavit
I have a substantial interest in a business entity or real property that may receive a special economic
effect by a vote or decision of the
(governing body, board, commission)
and the
economic effect on my business entity or real property is distinguishable from its effect on the
general public. What constitutes a "substantial interest," "business entity," "real property" and a
"special economic effect" are terms defined in chapter 171 of the Texas Local Government Code.
I affirm that the business entity or real property referted to above is:
The nature of my substantial interest in this business entity or real property is:
❑ an ownership interest of 10 percent or more of the voting stock or shares of the
business entity;
❑ an ownership interest of 10 percent or $15,000 or more of the fair market value of the
business entity;
❑ fiends received from the business entity exceed 10 percent of (my, his,
her) gross income for the previous year;.
❑ real property is involved and (I, he, she) have/has an equitable or legal
ownership with a fair market value of at least $2500;
❑ a person who is related to me within the first degree of consanguinity (blood) or
affinity (marriage) has a substantial interest in the involved real property or business
2010 Texas Conflict of Interest Laws Made Easy • Offzce of the Attorney General
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entity. I have also checked which of the above types of interests my relative has in
the item.
Upon the filing of this affidavit with the official record keeper for the local governmental entity, I
affirm that I shall abstain from any discussion, vote, or decision involving this business entity or real
property and from any further participation in_this matter whatsoever.
Signed this the
Signature of public official
Title
BEFORE ME, the undersigned authority, this day personally appeared
and by oath swore that the facts herein above stated
(Name of affiant)
are true and correct to the best ofhis/her lrnowledge or belief.
Sworn to and subscribed before me on this the day of
Notary Public in and for the State of Texas
My commission expires:
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LOCAL GOVERNMENT OFFICER FORM CIS
CONFLICTS 1 L U T
(instructions for completing and filing this form are provided on the next page.)
This questionnaire reflects changes made to the law by H.B. 1491, 80th Leg., Regular Session. OFFICE USE ONLY
This is the notice to the appropriate local governmental entity that the following local
government officer has become aware of facts that require the officer to file this statement Date Received
in accordance with Chapter 176, Local Government Code.
1 Name of Local Government Officer
2 Office Held
3 Name of person described by Sections 176.002(a) and 176.003(a), Local Government Code
4 Description of the nature and extent of employment or other business relationship with person named in item 3
5 List gifts accepted by the local government officer and any family member, excluding gifts described by Section
176.003(a-1), if aggregate value of the gifts accepted from person named in item 3 exceed $250 during the 12-month
period described by Section 176.003(a)(2)(B)
Date Gift Accepted Description of Gift
Date Gift Accepted Description of Gift
Date Gift Accepted Description of Gift
(attach additional forms as necessary)
61 AFFIDAVIT
1 swear under penalty of perjury that the above statement is true and correct. I acknowledge
that the disclosure applies to a family member (as defined by Section 176.001(2), Local
Government Code) of this local government officer. I also acknowledge that this statement
covers the 12-month period described by Section 176.003(a), Local Government Conde.
Signature of Local Government Officer
AFFIX NOTARY STAMP / SEAL ABOVE
Sworn to and subscribed before me, by the said this the day
Of , 20 , to certify which, witness my hand and seal of office.
Signature of officer administering oath Printed name of officer administering oath Title of officer administering oath
Adopted 06/29/2007
I LOCAL GOVERNMENT OFFICER
CONFLICTS DISCLOSURE STATEMENT
Section 176.003 of the Local Government Code requires certain local government officers to file this form. A
"local government officer" is defined as a member of the governing body of a local governmental entity; a
director, superintendent, administrator, president, or other person designated as the executive officer of the
local governmental entity; or an employee of a local governmental entity with respect to whom the local
governmental entity has, in accordance with Section 176.005, extended the requirements of Sections 176.003
and 176.004. This form is required to be filed with the records administrator of the local governmental entity
not later than 5 p.m. on the seventh business day after the date on which the officer becomes aware of the
facts that require the filing of this statement.
A local government officer commits an offense if the officer knowingly violates Section 176.003, Local
Government Code. An offense under this section is a Class C misdemeanor.
Please refer to chapter 176 of the Local Government Code for detailed information regarding the requirement
to file this form.
The following numbers correspond to the numbered boxes on the other side.
1. Name of Local Government Offtcer. Enter the name of the local government officerfiling this statement.
2. Office Held. Enter the name of the office held by the local government officer filing this statement.
3. Name of person described by Sections 176.002(a) and 176.003(a), Local Government Code. Enter
the name of the person described by Section 176.002, Local Govemmem Code with whom the officer has an
employment or other business relationship as described by Section 176.003(a), Local Government Code.
4. Description of the nature and extent of employment or business relationship with person named
in item 3. Describe the nature and extent of the employment or other business relationship with the person
in item 3 as described by Section 176.003(a), Local Government Code.
5. List gifts accepted, excluding gifts described by Section 176.003(a-1), if aggregate value of the
gifts accepted from person named in item 3 exceed $250. List gifts accepted during the 12-month period
(described by Section 176.003(a), Local Government Code) by the local government officer or family member
of the officer, excluding gifts described by Section 176.003(aA ), from the person named in item 3 that in the
aggregate exceed $250 in value.
6. Affidavit. Signature of local government officer.
Adopted O6/29/2007
CONFLICT OF INTEREST QUESTIONNAIRE FORM CIQ
For vendor or other person doing business with local governmental entity
This questionnaire reflects changes made to the law by N.B. 1491, 80th Leg., Regular Session.
OFFICEUSEONLY
This questionnaire is being filed in accordance with Chapter 176, Local Government Code
Date Received
by a person who has a business relationship as defined by Section 176.001(1-a) with a local
governmental entity and the person meets requirements under Section 176.006(a).
By law this questionnaire must be filed with the records administrator of the local governmental
entity not later than the 7th business day after the date the person becomes aware of facts
that require the statement to be filed. See Section 176.006, Local Government Code.
A person commits an offense if the person knowingly violates Section 176.006, Local
Government Code. An offense under this section is a Class C misdemeanor.
1 Name of person who has a business relationship with local governmental entity.
2
Check this box if you are filing an update to a previously filed questionnaire.
(The law requires that you file an updated completed questionnaire with the appropriate filing authority not
later than the 7th business day after the date the originally filed questionnaire becomes incomplete or inaccurate.)
3
Name of local government officer with whom filer has employment or business relationship.
Name of Officer
This section (item 3 including subparts A, B, C & D) must be completed for each officer with whom the filer has an
employment or other business relationship as defined by Section 176.001(1-a), Local Government Code. Attach additional
pages to this Form CIQ as necessary.
A. Is the local government officer named in this section receiving or likely to receive taxable income, other than investment
income, from the filer of the questionnaire?
F] Yes D No
B. Is the filer of the questionnaire receiving or likely to receive taxable income, other than investment income, from or at the
direction. of the local government officer named in this section AND the taxable income is not received from the local
governmental entity?
Yes F] No
C. Is the filer of this questionnaire employed by a corporation or other business entity with respect to which the local
government officer serves as an officer or director, or holds an ownership of 10 percent or more?
F1 Yes O No
D. Describe each employment or business relationship with the local government officer named in this section.
Al
Signature of person doing business with the governmental entity Date
Adopted 06l29/2007