Frequently Asked Questions

What is H.B. 914?

H.B. 914 is a new state law that requires members of the City Council and the City Manager to file a conflicts disclosure statement regarding their relationships with City vendors (including bidders and potential vendors). The new law also requires any vendor who contracts or seeks to contract with the City for the sale or purchase of property, goods, or services (including a bidder on a City contract) must file a "conflict of interest questionnaire" regarding the vendor's business relationships, if any, with council members or the city manager.

The law also applies to the board and chief executive of a local government corporation with respect to contracts of the corporation, and to vendors and potential vendors with the corporation.

The new law requires the conflicts statements and questionnaires to be filed beginning on January 1, 2006. H.B 914 is codified Chapter 176 of the Local Government Code. A copy of the new law is available at http://tlo2.tlc.state.tx.us/statutes/docs/LG/content/pdf/lg.005.00.000176.00.pdf.

Who is a "local government officer" for purposes of this law?

A "local government officer" is a member of the City Council, the City Manager, and the board members and the chief executive of a local government corporation. The definition in the law could also cover a member of a City board or commission, but because City boards do not contract, as a practical matter the provision is unlikely to affect board and commission members.

Who is a City vendor for purposes of this law?

A vendor is person who contracts or seeks to contract for the sale or purchase of property, goods, or services with the City, or who is an agent of such a person in the person's business with the City.

The word "person" in this context includes a corporation, organization, business trust, estate, trust, partnership, association, and any other legal entity, but doesn’t include another governmental entity.

So the new law applies to a local government officer’s relationships with:

• City contractors regardless of whether the contracts come before the council
• Individuals and businesses who seek to contract with the City, including bidders on City solicitations, (regardless of whether a bidder is awarded the contract)
• A person who acts as an agent for an individual or business that contracts with or seeks to contract with the City.

As used in this memo the term "vendor" includes potential vendors and agents of vendors and potential vendors.

When must a local government officer file a conflicts disclosure statement?

There are two triggers:

• An employment relationship between the officer or a family member and a vendor
• The receipt of gifts by the officer or a family member from a vendor

A local government officer must file a conflicts disclosure statement with respect to a vendor if the vendor has an employment or other business relationship with the officer or with a member of the officer’s family (see below for more information on family members) that results in the officer or a family member receiving taxable income.

A local government officer must also file a conflicts disclosure statement with respect to a vendor if the vendor has given the officer or a member of the officer’s family one or more gifts (other than gifts of food, lodging, transportation, or entertainment accepted as a guest) that have an aggregate value of more than $250 in the preceding 12-month period. (To satisfy the "guest" requirement for a gift of food, lodging, transportation, or entertainment, the host must be present.) Please note that the requirement to file upon receiving gifts, and the thresholds regarding gifts, do not imply that it is permissible under the law to receive such gifts. Under the City’s gift ordinance gifts from vendors would ordinarily be prohibited.

How is the 12-month period calculated with respect to the gifts threshold?

The 12-month period is calculated back from the date the local government officer become aware that either:

• a contract has been executed, or
• the City is considering doing business with the vendor

What does the law mean by a family member of a local government officer?

"Family members" include:

• the officer’s spouse,
• the officer’s parents and children,
• the parents and children of the officer’s spouse, and
• the spouses of the officer’s parents and children.

Where are conflicts disclosure statements and questionnaires filed, and what is the deadline for filing?

A local government officer must file a conflicts disclosure statement with the City Clerk 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 the statement.

A person who wishes to conduct business with the City must file a questionnaire with the City Clerk no later than seven days after the date the person begins contract discussions or negotiations with the city, or submits an application or response to a request for proposals or bids, correspondence, or another writing related to a potential agreement with a city.

A form may be filed electronically with the City Clerk by sending it via e-mail to the Clerk’s Office addressed to claine@ci.marble-falls.tx.us. A statement filed electronically satisfies the signature requirement and does not need to be notarized. Electronic filing assists the Clerk’s office, and is much appreciated.

Where can I get a form?

The form is prescribed by the Texas Ethics Commission. The forms are available on-line at http://www.ethics.state.tx.us/whatsnew/conflict_forms.htm. You may also get a form from the City Clerk.

What is the penalty for failing to file?

A knowing violation of the new law is a Class C misdemeanor ($500 fine).

Will filings be made public?

Yes. Reports filed under the new law are required to be posted on the City’s Internet website.

Where should vendors go for assistance?

If you have any questions about compliance, please consult your own legal counsel. Compliance is the individual responsibility of each individual, business, and agent who is subject to the law's filing requirement.