Conflicts of Interest

During the 85th Legislative Regular Session (2015), the Texas Legislature passed House Bill 1295 requiring that a governmental entity or state agency may not enter into certain contracts with a business entity unless the business entity submits a disclosure of interested parties (Form 1295) to the governmental entity or state agency at the time the business entity submits the signed contract to the governmental entity or state agency.

Under Government Code 2252.908, law applies only to a contract between a governmental entity or state agency and a business entity at the time it is voted on by the governing body or at the time it binds the governmental entity or state agency, or whichever is earlier, including an amended, extended, or renewed contract, of a governmental entity or state agency that either:
(1) requires an action or vote by the governing body of the entity or agency before the contract may be signed; or
(2) has a value of at least $1 million.

The disclosure requirement applies to a contract entered into on or after January 1, 2016.

A contract does not require an action or vote by the governing body of a governmental entity or state agency if:

(1) the governing body has legal authority to delegate to its staff the authority to execute the contract;
(2) the governing body has delegated to its staff the authority to execute the contract; and
(3) the governing body does not participate in the selection of the business entity with which the contract is entered into.

The District requires that all contracts contain an attached Form 1295 at the time that the contract is voted on by the Board of Directors. It is the vendor’s or person’s responsibility to submit the questionnaire. The District the has 30 days from receipt of the Form to acknowledge its receipt. A business entity must file Form 1295 electronically with the Texas Ethics Commission using the online filing application. https://www.ethics.state.tx.us/whatsnew/elf_info_form1295.htm.

More information on the Disclosure of Interested Parties requirements may be found at https://www.ethics.state.tx.us/whatsnew/FAQ_Form1295.html