HomeMy WebLinkAboutWS Item 01 - House Bill 914 - the "Disclosure Act" BOYLE & LOWRY L.I;.P. ArronrYsA"COUNSELORS
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`Tia Email"
DATE. January 26, 2006
T . Linda Muff, City Secretary
FROM: ' Matthew C: G.Boyle,Assistant City Attorney
RE: H.B.No.,914 of the 79' Texas Legislature
You, ave inquired about the,new disclosure requirements of House ]Bill lo. 14 passed
during the regular session'of the 79th Texas Legislature (the,"Disclosure Act"); a copy of which
is included herewith below. The Disclosure Act was codified as Chapter 176 of the Texas Local
Government Code. After examining the Disclosure Act, and:the Texas Ethics Commission's
associated disclosure forms,we submit the following opinion.
As you are mare, the Disclosure Act creates 4 new filing requirement for City officers
and certain persons who contract with or are considering doing business with the City to make
certain financial and business disclosures: The Disclosure Act is applicable to the Mayor,
councilmem ers, 'City`Manager, City Secretary$ and each member of a City :Board or,
Commission. 'As required :by the Disclosure,Act, the Ethics Commission has adopted the
conflicts disclosure statement and the conflict of interest questionnaire that filers must use to file
with the City Secretary., The forms are available on the Ethics Commission website at
http://www.ethics4state.tx.us/forlil��/C`IS.Pdf'The fzling rules on such forms are explained below.
C,i tJ flclals
The conflicts statement must be filed with the City, ecretaryy within seven days of a city
official becoming aware ofeither of the following situations:
A city cfflicer or the,officees family member has an employment or bus%ncss relationship
that results in taxable income with a person who has contracted with the city,or with
whom the city"is considering doing business.
• A city officer or the officer's family member receives and accepts one or more gifts with
an aggregate value of$250 in the preceding 12 months from, a person who conducts
business or,is bseing considered for,butsmess witb the officers city.. ,
The tern family member includes all persons related to the city official who is related to another
person within the first degree:by consanguinity(blood)or affinity(marriage).This definition
includes a spouse,father,mother, son,daughter,father-in-law, mrother-in-Iaw, son-in-law,and so
on. A relationship chart is being sent to you under separate cover. A violation of th6 Disclosure
x Act constitutes a Class C misdemeanor,a fate only offense.If for any reason a city official fails
to timely,submit the statement or questionnaire,it is an affirmative defense to the prosecution of
such failure that the,official files such-,form o later than seven business days after the officer
receives notice of a violation.
Vendors
The Disclosure Act also requires a vendor that wishes to conduct business or be,
considered for business with,the City to file a conflict of interest questionnaire. The Disclosure
Act appl es to all persons or businesses who conduct business with the City,including those who
submit bids on city contracts,make purchases of surplus city property,or participate in any other
purchase or sales transactions with a city.
This requirement applies to vendors in the following situations.
* Any person who contracts or'seeks to contract for the sale or purchase of property,goods,
or,services with a local governmental entity, and
An agent of a person who contracts or seeks to'contract for the sale or purchase of
property, goods, or services with a,local governmental entity.
This provision includes persons or entities who submit bids on City contracts,make purchases of
surplusCity property,or participate in any otherpurchase or sales transactions with the City.As
such,we recommend that the following b included in:all future City bid materials:
"Pursuant to the requirements of Section 176.Oa2(a of the Texas Local.Government Cade,
vendors or respondents who meet the following criteria must fill out a conflict of interest
questionnaire no later than the 7th day after the person begins;contract discussions or
negotiations with the;City or submits to the City an application,response to a requestfor
proposals or bids,correspondence,or another writing related to a potential agreement with the-
City
A vendor or respondent that-
(1) contracts or seeks to contract for the sale or purchase of property, goods,or services with a
local governmental entity; o
(2);is an agent of a person described,in Sudivision(1) in the person;s business with a local
governmental entity.' Any person who meets the criteria As;for enforcement to ensure the
veracity of the vendors,the statute makes it a Class C Misdemeanor to violate the vendor
disclosure provisions."
City Restonsibilifles
The City is required to maintain a list of city officers who are subject to the Disclosure
Act and make the list available to the public.The list of officers should include both the office
and the name of such officer. Further,the City City must provide access to any completed statements
and questionnaires submitted to the City on the city's Internet Web site: While the City is the
designated,depository of these forms,the City i not responsible far"policing"the filing of such
forms nor for reporting alleged violations of the Disclosure Act. In addition,the City cannot
assume the responsibility for interpreting the Disclosure Act for third parties.
Conclusion
The Disclosure Act places new burdens on the City to disclose and maintain certain
information/statements of the relationships between officers/employees of the City and entities
that do business or will do business with the City. Thank you for your attention to these issues. In
the event you have any questions or concerns,please let me know.
Cc: Jennifer Hibbs,Assistant City Manager