(a)
Application.
This section shall apply to members of the city council and to other city officials.
(b)
Substantial interest defined.
A person subject to this section has a substantial interest in a business entity, person, or real property if the person:
(1)
Owns ten percent or more of the voting stock or shares of the business entity;
(2)
Owns either ten percent or more or $15,000.00 or more of the fair market value of the business entity;
(3)
Receives funds from the business entity that exceed ten (10) percent of the person’s gross income for the previous year (as stated in annual federal tax returns);
(4)
Has an equitable or legal ownership interest in real property with a fair market value of $2,500.00 or more; or
(5)
Currently provides or has within the preceding twelve (12) months provided goods or services to the business entity or a client of the business totaling $5,000.00 or more;
(6)
Receives or has received in the past two years an in-kind donation from a business entity that, if provided at fair market value, would be valued at $5,000.00 or more in a single calendar year; or
(7)
Accepts a campaign contribution totaling $2,500.00 or more in a twelve (12) month period from a person or PAC that represents the interests of the business entity.
(c)
Conflicts through relatives.
A city official subject to this section is considered to have a substantial interest in a matter if a person related to the city official in the first degree by consanguinity (blood or adoption) or affinity (marriage), as determined under chapter 573, Texas Government Code, has a substantial interest under this section.
(d)
Disclosure.
If a city official subject to this section has a substantial interest in a matter, business entity, or real property, the person must file an affidavit with the city secretary stating the nature and extent of the interest before a deliberation, vote, or decision involving the matter, business entity, or real property occurs, or within seven (7) calendar days of when the person becomes aware that the matter is under consideration by the city, whichever is earlier.
(e)
Abstention.
If a person subject to this section is required to file an affidavit under subsection (d), the person is required to abstain from participation, deliberation in any form, or votes in the matter, unless:
(1)
A majority of the members of the decision-making body of which the person is a member is composed of other persons who are also required to file and who do file affidavits of similar interests on the same official action;
(2)
In the case of a substantial interest in a business entity, the action on the matter will not have a special economic effect on the business entity distinguishable from the effect on other businesses or the general public; or
(3)
In the case of a substantial interest in real property, it is reasonably foreseeable that an action on the matter will not have a special economic effect on the value of the property distinguishable from its effects on other similarly situated properties throughout the city.
(Ordinance 365.01 adopted 12/12/18)