As used in this code of ethics and conduct, the following words and terms shall have the meaning ascribed hereto:
Advisory board.A board; commission or committee of the city that functions only in an advisory or study capacity.
Benefit.Anything reasonably regarded as pecuniary gain or pecuniary advantage, including benefit to any another person whose welfare the beneficiary has a direct and substantial interest. A pecuniary gain or advantage shall not include insignificant amounts or items of de minimis value. This policy does not establish dollar limits. “Insignificant [value]” and “de minimis” shall have their usual meanings and be subject to interpretation on a case-by-case basis.
Business entity.A sole proprietorship, partnership, firm, corporation, holding company, joint-stock company, receivership, trust, or any other entity recognized in law.
Candidate.Any person who declares for or files for any office of the city to be filled by election.
Code.This code of ethics and conduct.
Compensation.Any economic benefit received in return for labor, services, property, or investment.
Confidential information.Information to which the following apply:
(1) At the time of the use or disclosure of the information, the information is not a public record subject to public disclosure under the Texas Public Information Act; and
(2) The use or disclosure of the information will have, or could reasonably be expected to have, a material financial effect on any investment or interest in real property that a city officer, board or committee member, or any person to whom the city officer, board or committee member provides the information, has at the time of the use or disclosure of the information or acquires after the use or disclosure of the information.
Conflict of interest.Action upon any matter which would constitute a violation of this code of ethics, Texas Penal Code or Texas Local Government Code, chapter 171.
Decision.Any ordinance, resolution, contract, franchise, formal action or other matter voted on by the city council or other city board or commission, as well as the discussions or deliberations of the council, board or commission which can or may lead to a vote or formal action by that body.
Economic benefit.Any money; real or, personal property, purchase, sale, lease, contract, option, credit, loan discount, service, or other tangible or intangible thing of value, whether similar or dissimilar to those enumerated.
Entity.A sole proprietorship, partnership, limited liability partnership, firm, corporation, professional corporation, holding company, joint-stock company, joint venture, receivership, trust or any other entity recognized by law through which business may be conducted.
False.A knowing or willful misrepresentation or concealment of any item required to be disclosed by this chapter.
Family member.A person related in the first or second degree of consanguinity or affinity to any person subject hereto. Consanguinity - 1st degree is an individual’s parent or child; 2nd degree is the individual’s brother, sister, grandparent or grandchild. Affinity - 2nd degree is anyone related by consanguinity to the individual’s spouse within 1st or 2nd degree, or the spouse of anyone related to the individual by consanguinity within the 1st or 2nd degree. Not included - aunts, uncles, cousins.
Gift.A favor, hospitality, or economic benefit, other than compensation, but does not include campaign contributions reported as required by state law.
Intentionally.A person acts intentionally or with intent, with respect to the nature of his conduct or to a result of his or her conduct when it his or her conscious objective or desire to engage in the conduct or cause the result.
Knowingly.A person acts knowingly, or with knowledge, with respect to the nature of his or her conduct or to circumstances surrounding his or her conduct when he or she is aware of the nature of his or [her] conduct or that the circumstances exists. A person acts knowingly, or with knowledge, with respect to the result of his conduct when he or she is aware that his or her conduct is reasonably certain to cause the end result.
Ministerial act.An act performed in a prescribed manner and not requiring the exercise of any judgment or discretion.
Officer.Any member of the city council and any member of a board or commission or committee established by ordinance, charter or state law; provided no member of an advisory board or committee shall be deemed an officer of the city.
Person.An individual, proprietorship, partnership, corporation, association or other legal entity.
Substantial interest.(1) A person has a substantial interest in a business entity if:
(A) The interest is ownership of ten (10) percent or more of the voting stock or shares of the business entity or ownership of two thousand five hundred dollars ($2,500.00) or more of the fair market value of the business entity;
(B) Funds received by the person from the business entity exceed ten (10) percent of the person’s gross income for the previous year;
(C) A person has a substantial interest in real property if the interest is an equitable or legal ownership with a fair market value of two thousand five hundred dollars ($2,500.00) or more;
(D) An interest of a family member to the local public official is a “substantial interest”;
(E) The person holds a position of member of the board of directors or other governing body of the business entity;
(F) The person serves as an elected officer of the business entity;
(G) The person is an employee of the business entity;
(H) The person is a creditor, debtor or guarantor of any person, group or business entity in the amount of five thousand dollars ($5,000.00) or more; or
(I) Property of the person has been pledged to a person, group or business entity or is subject to a lien in favor of the person, group or business entity in the amount of five thousand dollars ($5,000.00) or more.
(2) A person does not have a substantial interest in a business entity if:
(A) The person holds a position as a member of the board of directors or other governing board of a business entity;
(B) The person has been designated by the city council to serve on such board;
(C) The person receives no remuneration either directly or indirectly, for his or her service on such board; and
(D) The primary nature of the business entity is either charitable, nonprofit or governmental.
(Ordinance 950-2012 adopted 10/9/12)