BBFA(LEGAL) - ETHICS: CONFLICT OF INTEREST DISCLOSURES

Note: For information regarding conflicts of interest and depository contracts, see BDAE.

Substantial Interest Affidavit

  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.

Abstention

Definitions

"Substantial Interest"

  1. The person owns at least:
    1. Ten percent of the voting stock or shares of the business entity, or
    2. Either ten percent or $15,000 of the fair market value of the business entity.
  2. Funds received by the person from the business entity exceed ten percent of the person's gross income for the previous year.

"Business Entity"

"First-Degree Relatives"

"Local Public Official"

"Real Property"

Contracts Permitted

Separate Vote on Budget

Depository Bank

Violations

  1. Violates Local Government Code 171.004.
  2. Acts as surety for a business entity that has a contract, work, or business with a district.
  3. Act as surety on any official bond required of an officer of a district.

Voidable Actions

Conflicts Disclosure Statement

  1. Has an employment or other business relationship with the local government officer or a family member of the officer, and the business relationship results in the officer or family member receiving taxable income, other than investment income, that exceeds $2,500 during the 12-month period preceding the date that the officer becomes aware that:
    1. A contract between the district and the vendor has been executed; or
    2. The district is considering entering into a contract with the vendor;
  2. Has given to the local government officer or a family member of the officer one or more gifts, and the gift or gifts have an aggregate value of more than $100 in the 12-month period preceding the date the officer becomes aware that:
    1. A contract between the district and the vendor has been executed; or
    2. The district is considering entering into a contract with the vendor; or
  3. Has a family relationship with the local government officer.

Gifts—Exception

  1. A political contribution as defined by Title 15, Election Code; or
  2. Food accepted as a guest.

Filing Date

Vendor Questionnaire

Definitions

"Agent"

"Business Relationship"

  1. A transaction that is subject to rate or fee regulation by a federal, state, or local governmental entity or an agency of a federal, state, or local governmental entity;
  2. A transaction conducted at a price and subject to terms available to the public; or
  3. A purchase or lease of goods or services from a person that is chartered by a state or federal agency and that is subject to regular examination by, and reporting to, that agency.

"Family Member"

"Family Relationship"

"Gift"

"Investment Income"

  1. A personal or business:
    1. Checking or savings account,
    2. Share draft or share account, or
    3. Other similar account;
  2. A personal or business investment; or
  3. A personal or business loan.

"Local Government Officer"

"Records Administrator"

"Vendor"

Duties of Records Administrator

  1. Maintain a list of local government officers of the district and shall make that list available to the public and any vendor who may be required to file a conflict of interest questionnaire under Local Government Code 176.006; and
  2. Maintain the statements and questionnaires that are required to be filed under Government Code Chapter 176 in accordance with the district's records retention schedule. [See CPC]

Internet Posting

Violations

Affidavit Disclosing Interest in Property

  1. The affidavit shall be filed with the county clerk(s) of the county or counties in which the property is located and of the county in which the public servant resides within ten days before the date on which the property is to be acquired by purchase or condemnation.
  2. The affidavit must:
    1. State the name of the public servant and the public office title or job designation held or sought.
    2. Fully describe the property.
    3. Fully describe the nature, type, and amount of interest in the property, including the percentage of ownership interest and the date the interest was acquired.
    4. Include a verification of the truth of the information in the affidavit.
    5. Include an acknowledgment of the same type required for recording a deed in the deed records of a county.

"Public Servant"—Government Code

  1. A candidate for nomination or election to public office, or
  2. An officer of government.

Violations

Annual Financial Management Report

Trustee Financial Statement

  1. A board member has failed to comply with filing and recusal requirements applicable to the member under Chapter 171, Local Government Code;
  2. District financial accounting practices are not adequate to safeguard state and district funds; or
  3. A district has not met a standard set by the commissioner in the financial accountability rating system.

Electronic Filing

Confidentiality

Violations

Note: See also CBB for conflict of interest requirements when federal funds are involved.

Private Corporation

Sabinal ISD

BBFA(LEGAL)-P

UPDATE 112

DATE ISSUED: 1/15/2019