Bulletin

Your Business’s Detailed Financial Information Posted on the Internet?

It’s possible. During the 2005 legislative session, the Texas Municipal League contacted our associate members regarding proposed ethics legislation that would prove extremely burdensome for those who seek to contract with cities or any other political subdivision. We received no response from any of our associate members, and the proposed legislation passed in the form of H.B. 914.

H.B. 914 requires any vendor that wishes to conduct business or to be considered for business with a city to file a “conflict of interest questionnaire.” The failure to file a completed questionnaire may lead to criminal prosecution. The conflict of interest questionnaire (FORM CIQ) was created by the Texas Ethics Commission (TEC) and is available online at www.ethics.state.tx.us.

Although the TEC created and adopted the form, it does not have enforcement or interpretative authority. In fact, the TEC did not provide adequate instruction to fill out the form. As such, TML is providing the following information to inform you of the bill’s requirements.

What is H.B. 914?

Effective January 1, 2006, H.B. 914 requires any person or business that contracts with a city or is considering doing business with a city to file a “conflicts of interest questionnaire.” The bill provides that failure to file the statement or questionnaire is punishable as a class C misdemeanor.

Who must file a “conflict of interest questionnaire”?

Any person who contracts or seeks to contract for the sale or purchase of property, goods, or services with a city or any other political subdivision (including submitting a bid on a contract) must file a questionnaire.

To what type of contracts does the bill apply?

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 or other political subdivision.

When must a vendor file the conflict of interest questionnaire?

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.

With whom should the questionnaire be filed?

The questionnaire should be filed with the city’s records administrator, which is usually the city secretary.

What about posting the information on the Internet?

A city is required to provide access to the completed questionnaires on the city’s Internet Web site.

For more information on how H.B. 914 may affect your business, please contact your industry’s trade association or your own legal counsel.