Frequently Asked Questions (FAQs)
To assist officials and vendors in understanding House Bill (H.B.)
914, the Texas Municipal League (TML) developed these frequently
asked questions (FAQs).
Q: What local governmental entities are subject to H.B. 914?
A: Cities; local government corporations (e.g., economic
development corporations); city boards and commissions (e.g., boards
of adjustment and planning and zoning commissions); city authorities
(e.g., housing authorities); and almost every other type of political
subdivision in Texas.
Q: What vendors are subject to H.B. 914?
A: 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.
Q: Does this include a person who buys city property?
A: The bill appears to apply to all persons or businesses
who conduct business with a 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.
Q: What local government officials are subject to H.B. 914?
A: For most cities, the following officers are subject to
H.B. 914: mayors and city councilmembers; city manager or administrator;
city board, commission, and authority members; economic development
corporation board members; an executive director of an economic
development corporation; and any other person who is designated
as an executive officer of a city.
Q: What triggers the requirement that a city official file a conflicts
disclosure statement?
A: An officer subject to the bill, as outlined above, must
file a conflicts disclosure statement within seven days of becoming
aware of either of the following situations:
- A city officer or the officer’s family member
has an employment or business 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 twelve months from a person who conducts
business or is being considered for business with the city.
Q: What is a family member for purposes of the bill?
A: A family member is defined as a person 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, mother-in-law, son-in-law, and so on.
Q: Does receiving gifts such as food, lodging, transportation,
or entertainment make a city officer subject to the bill?
A: No, such gifts, regardless of amount, do not trigger
the conflicts disclosure statement requirement.
Q: With whom should the statement be filed?
A: The statement should be filed with the city’s records
administrator, which is usually the city secretary.
Q: What happens if a statement is not filed?
A: An officer who knowingly fails to file the statement
commits a class C misdemeanor. A class C misdemeanor is punishable
by a fine of up to $500.
Q: Who must file a “conflict of interest questionnaire”?
A: Any person who contracts or seeks to contract for the
sale or purchase of property, goods, or services with a city (including
submitting a bid on a city contract) must file a questionnaire.
Q: To what type of contracts does the bill apply?
A: Any written contract and any implied contract, such as
purchase orders, procurement card purchases, utility purchases,
and more. As written, the bill appears to apply to any purchase
made by a city. Of course, that interpretation will be extremely
burdensome to many cities. A more reasonable interpretation is that
the bill only applies to large, written contracts. But the plain
language of the bill does not unambiguously support that view. Thus,
city officials should consult with local legal counsel to determine
how strictly they wish to interpret the bill.
Q: When must a vendor file the conflict of interest questionnaire?
A: A person who wishes to conduct business with a city must
file a questionnaire 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.
Q: With whom should the questionnaire be filed?
A: The questionnaire should be filed with the city’s
records administrator, which is usually the city secretary.
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