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Conflict of Interest

Local Government Officer Conflict Disclosure Statement (Form CIS)

Texas Local Government Code, Chapter 176, House Bill 23

Local Government Code, Chapter 176, HB23 states that all Governmental entities are required to maintain record of Local Government Officers. A Local Government Officer is anyone who acts as an “Agent” of the governmental entity, such as one who exercises discretion in the planning, recommending, selecting, or contracting of a vendor, personnel with primary purchasing responsibilities. Also, those with budget authority, who have been assigned responsibility to enter requisitions, one who reviews and approves requisitions, and fundraising sponsors are considered to be LGO’s.

All who have been identified to be an LGO are required to complete and file Local Government Officer Conflict Disclosure Statement (Form CIS). Pursuant to Texas Government Code Section 176.009 All forms are to be filed with the District’s “records administrator” who is required to maintain a list of LGO’s.  This list must be available to the public and to any vendor who may be required to file a conflict of interest questionnaire.  Record of Local Government Officers will be maintained in the purchasing office with CISD’s records administrator, Elizabeth Sida, Purchasing Agent.   Local Government Officer Conflict Disclosure Statement (Form CIS) shall be collected per fiscal year. 

Per Changes to House Bill 23 passed by the Texas Legislature amending Section 1., Section 176.001, provisions were established relating to the disclosure of certain relationships between local government officers and vendors effective September 1, 2015. Changes due to HB 23: 1) Substantially changes and expands who is considered a “Local Government Officer” for purposes of who has to disclose; 2) expands the type of family relationships that have to be disclosed; 3) changes the types of gifts that have to be disclosed; and 4) revises language about criminal liability and employment actions that can be taken if someone fails to disclose.

It is the local government officer’s sole responsibility to disclose certain relationships where a family member or relative works for, or owns a company, or are in some form affiliated with a vendor that does business with the governmental entity (Canutillo ISD).  Per Local Government Code, Section 176.003, a disclosure shall be filed no later than seven days after the officer becomes aware that a conflict of interest exists.   This legal requirement went into effect January 1, 2006, pursuant to House Bill 914, Local Government Code, Chapter 176, it is a Class C misdemeanor to knowingly violate Section 176.003. In addition, non-filing of Form CIS will result in the employee’s non-compliance with District Policy BBFA (Legal) Conflict of interest Disclosures, and DBD (Legal), DBD (Local) Employment Requirements and Restrictions Conflict of Interest.

What must be disclosed: a. Gifts – Gifts from a Vendor to you or your family member if the value is more than$100 (previously $250) in a 12-month period preceding the date that the LGO becomes aware of a contractor entering or considering entering into a contract. You must report gifts of transportation, lodging, or entertainment as a guest, but do not have to report food as a guest. (Previously, this was not required if you were a guest of the vendor). b. Income – Income to LGO or family member from a vendor to a LGO or LGO’s family member in excess of $2,500 in the 12-month period preceding the date that the LGO becomes aware of a contractor entering or considering entering into a contract. c. Family Relationship - LGO must disclose a “family relationship” with vendor. This definition is broader than “family member,” which is limited to first degree relationships. "Family relationship" means a relationship between a person and another person within the third degree by consanguinity or the second degree by affinity, as those terms are defined by Subchapter B, Chapter 573, Government Code. A family relationship disclosure applies regardless of any monetary benefit received from the vendor.

 

Conflict of Interest Questionnaire (Form CIQ)

Texas Local Government Code, Chapter 176, House Bill 23

Canutillo Independent School District is required to comply with Local Government Code, Chapter 176, HB23 which states that all Governmental entities are required to maintain record of Local Government Officers. 

Per Changes to House Bill 23 passed by the Texas Legislature amending Section 1., Section 176.001, provisions were established relating to the disclosure of certain relationships between local government officers and vendors effective September 1, 2015. Changes due to HB 23:

1) Substantially changes and expands who is considered a “Local Government Officer” for purposes of who has to disclose.

2) Expands the type of family relationships that have to be disclosed.

3) Changes the types of gifts that have to be disclosed; and

4) Revises language about criminal liability and employment actions that can be taken if someone fails to disclose.

As of September 1, 2015, any vendor who does business with Canutillo ISD or who seeks to do business with CISD must fill out the Conflict-of-Interest Questionnaire (Form CIQ) whether or not a conflict of interest exists. If a conflict of interest exists, it is the vendors responsibility to disclose the relationship with an officer of the district and their family members with regard to persons or agents contracting with the District or persons or agents responding to District quotations, bids, proposals, or requests for qualifications.  The District is also required to disclosures made for employees in leadership positions and positions of influence.

Per Local Government Code, Section 176.003, a disclosure shall be filed no later than seven days after the officer or vendor becomes aware that a conflict of interest exists. 

“Local government officer” means: (A) a member of the governing body of a local governmental entity; (B) a director, superintendent, administrator, president, or other person designated as the executive officer of a local governmental entity; or (C) an agent of a local governmental entity who exercises discretion in the planning, recommending, selecting, or contracting of a vendor. Texas Local Government Code 176.001(4).

“Family relationship” means a relationship between a person and another person within the third degree by consanguinity or the second degree by affinity, as those terms are defined by Subchapter B, Chapter 573, Government Code. Texas Local Government Code 176.001(2-a).

“Vendor” means a person who enters or seeks to enter into a contract with a local governmental entity. The term includes an agent of a vendor. The term includes an officer or employee of a state agency when that individual is acting in a private capacity to enter into a contract. The term does not include a state agency except for Texas Correctional Industries. Texas Local Government Code 176.001(7).

“Business relationship” means a connection between two or more parties based on commercial activity of one of the parties. The term does not include a connection based on: (A) 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; (B) a transaction conducted at a price and subject to terms available to the public; or (C) 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. Texas Local Government Code 176.001(3). “Business relationship” means a connection between two or more parties based on commercial activity of one of the parties. The term does not include a connection based on: (A) 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; (B) a transaction conducted at a price and subject to terms available to the public; or (C) 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. Texas Local Government Code 176.001(3).