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TEXAS GOVERNMENT ACCOUNTABILITY ASSOCIATION
Comprehensive Transparency and Ethics Policy for Texas Municipalities, Version 250203
(as may be amended, supplemented or otherwise modified from time to time, this “Policy”)
This Policy:
1. Is not applicable to any Elected Official’s candidacy or election that is regulated by
the Texas Ethics Commission; and
2. Does not waive the authority and discretion of any City, City Body, Elected Official,
or City Official to enforce higher ethical standards than those established by this
Policy.
SECTION 1. TRANSPARENCY & DISCLOSURES
1. General Covenants and Provisions. The transparency standards and requirements set
forth in this Policy shall extend to the City, all City Bodies, Elected Officials, City
Officials, Affiliated Organizations, Local Government Affiliate, and other Persons as
applicable.
2. Financial. The City must post to its website, at no cost to the public, for the current
fiscal year, and for each fiscal year following the adoption of this Policy by the City, the
information set out below in this Section. Unless stated otherwise below, all reports shall
be for each fiscal year.
a. ACFR. All Annual Comprehensive Financial Reports for the City.
b. Audits.
i. The City shall conduct a City-wide efficiency audit every three years,
which audit shall be conducted by an outside independent firm; provided,
however, the requirement to conduct an efficiency audit is waived if the
City has an annual budget of $2,000,000 or less for any year in which an
efficiency audit would otherwise be required. The scope of the audit shall
be to engage in fraud detection and to recommend suggested cost savings
and identify revenue opportunities. The draft audit report and the final
audit report shall be posted to the City’s website and the lead partner on
the audit shall be made available for a Q&A session with City residents
and taxpayers within 30 days of report completion.
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ii. The City shall conduct a City-wide financial audit every year, which audit
shall be conducted by an outside independent firm. The scope of the audit
shall be to engage in fraud detection, affirm the accuracy of all financial
reporting, and confirm proper accounting procedures are utilized. The
draft audit report and the final audit report shall be posted to the City’s
website and the lead partner on the audit shall be made available for a
Q&A session with City residents and taxpayers within 30 days of the final
audit report’s completion, subject to the relevant provisions of the
applicable accounting rules. No firm shall perform such audit for more
than 3 years in succession and no more than 6 times in 10 years.
c. Vendors. The City shall require all Vendors, in order to receive more than
$10,000 in payments during a fiscal year, to fill out and sign under penalty of
perjury, a form annually with the following information at a minimum:
i. Name of the Vendor;
ii. Address and phone number of the Vendor;
iii. Nature of such Subject Vendor’s business dealings with the City or any
City Body;
iv. Any Family Relationship between the Vendor or any Affiliate
Organization of the Vendor with an Elected Official or City Official
and/or any Elected Official or City Official’s Affiliate Organizations;
v. The amount and timing of all political contributions by the Vendor or any
Affiliate Organization of the Vendor to any Elected Officials in the
previous 24 months; and
vi. The name, position, and total payments of any individual employed by or
otherwise paid within the past 12 months by the Vendor or a Vendor’s
Affiliate Organization to a current or former Elected Official or City
Official or a Family Relationship of a current or former Elected Official or
City Official.
d. Local Government Affiliates. As a condition to receiving funds from the City, all
Local Government Affiliates shall annually agree in writing to complying with
this Policy.
e. Miscellaneous Financial Matters.
i. Individual Compensation. A complete list of the total compensation paid
to each Elected Official and City Official including wages, salary,
overtime, and benefits (including health, dental, life and pension) on an
annual basis organized by last name alphabetically.
ii. Vendor Searchability. An easily searchable database that includes a
unique identifying number, vendor name, amount paid, reason given for
amount paid if any, chart of account number and description to where
coded, date, and description, if any.
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3. Conflicts of Interest. The City shall post on its website accessible from the navigation
on the home page within 5 business days, the occurrence of any of the following with all
the relevant details:
a. City, City Body, & Local Government Affiliate Employment. If the City, City
Body, or any Local Government Affiliate hires or pays for any purpose (other
than for compensation listed above in Section 1.2.(e)(i)) an Elected Official or
City Official or any person that is a Family Relationship of any Elected Official or
City Official.
b. Favorable Granting of a Permit or Zoning Variance. If the City or a City Body
grants a permit or zoning variance to:
i. any Elected or City Official;
ii. any Family Relationship of any Elected Official or City Official; and/or
iii. any Affiliate Organization of any Elected Official or City Official or any
of their Family Relationships.
c. Favorable Passing of Ordinances. If the City or any City Body enacts or passes
any ordinance, legislation, rule, or regulation that is materially more favorable to
any of the following than other City area citizens and organizations:
i. any Elected or City Official;
ii. any Family Relationship of any Elected Official or City Official; and/or
iii. any Affiliate Organization of any Elected Official or City Official or any
of their Family Relationships.
d. Contracting. If the City, City Body, or any Local Government Affiliate signs a
contract with or enters into any agreement (written or otherwise) with:
i. any Elected or City Official;
ii. any Family Relationship of any Elected Official or City Official; and/or
iii. any Affiliate Organization of any Elected Official or City Official or any
of their Family Relationships.
e. Payments. The City, any City Body, or any Local Government Affiliate makes
any payments to any of the following that is not pursuant to a written contract and
which has not been previously disclosed pursuant to Section 1.3(a) or Section
1.3(d) above:
i. any Elected Official or City Official;
ii. any Family Relationship of any Elected Official or City Official; and/or
iii. any Affiliate Organization of any Elected Official or City Official or any
of their Family Relationships.
f. Services & Asset Sales. Any Elected Official or City Official, any Family
Relationship of any Elected Official or City Official, or any Affiliate Organization
of any Elected Official, City Official or any their Family Relationships purchases
on their own behalf or has another Person purchase on their behalf any material,
item, land, improvements, service, or anything of value from the City, a City
Body, or a Local Government Affiliate.
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4. City and City Body Meetings.
a. All meetings of the City Council as well as boards and commissions of the City
with members that are not employees of the City shall be fully subject to the
Texas Open Meetings Act and Texas Public Information Act without restriction.
If any court of law, administrative court, opinion, statute, or other ruling shall
determine that any entity described herein is not subject to the Texas Open
Meetings Act and/or Texas Public Information Act as a matter of law, said entity
shall regardless adopt the provisions of the Texas Open Meetings Act and Texas
Public Information Act and conduct its affairs in full compliance, including
waiving immunity for injunctive relief to enforce compliance.
b. All meetings involving a majority of the City Council shall be live-streamed and
video recorded. The City will take all necessary steps to ensure that any individual
speaking during the meeting, including any individual speaking to the City
Council or making any presentation to the City Council is both clearly visible and
identified during the live-stream and in the video recording. The City will ensure
that video and audio recordings of all City Council meetings are promptly made
available to the public, and in any event within 48 hours, on the City’s website.
c. The City Council shall be permitted to meet in closed executive session to discuss
certain sensitive or otherwise confidential information as allowed under Texas
state law; provided, however, that any individual matter that the City Council
proposes to have considered during a closed executive session must first be (1)
listed on the agenda of a regular meeting of such City Council, which such agenda
shall be made available to the public on the City’s website in advance of such
regular meeting, and (2) during that regular meeting of the City Council, approved
by a majority vote of the City Council to have such individual matter considered
during a later closed executive session.
d. The City Council shall be permitted to meet in closed executive session to discuss
certain sensitive or otherwise confidential information solely as required under
Texas state law.
5. Miscellaneous.
a. Organizational Chart. A comprehensive organizational chart identifying all City
Bodies, Elected Officials, City Officials, administrators, employees and other
staff and contract workers, the supervisor each person reports to, all position
descriptions, and contact information (including city phone number and city e-
mail address as applicable) updated at least quarterly and posted to the City’s
website.
b. Building Permit Application Procedures. The procedures required to apply for
all building permits and zoning variances with the specific time periods the
applicant can expect for all portions of the process for which the City is
responsible for performing.
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c. Open Records Requests. The City shall implement a system to allow citizens to
submit open records requests, to track such requests, and to receive responses to
such requests within 10 days at the lowest cost applicable under Texas state law,
and with only the redactions and limitations that are mandatory under Texas state
law.
d. City Body Appearances. Any Person who appears before a City Body, before
speaking, shall be asked to disclose any payments he or she or any Family
Relationship, Affiliate Organization, or Family Relationship’s Affiliate
Organization of he or she that have been received from a City Body in the past 12
months.
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SECTION 2. ETHICS & RELATED PROHIBITIONS & REQUIREMENTS
1. General Covenants and Provisions.
a. The ethics standards set forth in this Policy are designed to:
i. Encourage high ethical standards in official conduct by Elected Officials
and City Officials; and
ii. Establish minimum guidelines for ethical standards of conduct for all
Elected Officials and City Officials by setting forth those acts or actions
that are incompatible with the best interests of the City.
b. These standards shall extend to the City, all City Bodies, Elected Officials, City
Officials, Local Government Affiliates, Family Relationship, Affiliate
Organizations and other Persons as applicable.
2. Conflicts of Interest.
a. Decision Making.
i. Elected Officials may not vote on any matter in Section 1.3 above for
which they are a Conflicted Party.
ii. City Officials may not be the deciding party on any matter in Section 1.3
above for which they are a Conflicted Party.
b. Usage of City Property. Unless explicitly allowed in writing per the terms of
employment or office holding, an Elected Official or City Official shall not use,
or permit others to use, any City or City Body funds, property, or personnel for
non-City or non-City Body purposes, as applicable, except when otherwise
available to the public generally or to a class of residents on substantially the
same terms and conditions.
c. Representation. Elected Officials and City Officials shall not for pay, profit,
compensation, financial gain or other benefit represent or appear on behalf of
themselves or on behalf of non-City or non-City Body interests before the City or
City Body.
d. Personnel Reporting. No Person employed by the City or a City Body shall
report directly or indirectly to a Family Relationship without the affirmative,
public approval by the City Council.
e. Proper Contracting. No City Official shall be the decision maker for the hiring
of a Vendor whereby said Vendor or an Affiliate Organization of the Vendor is a
Family Relationship of the City Official.
3. Gifts. To avoid the appearance and risk of impropriety and self-enrichment, Elected
Officials and City Officials shall not solicit or accept any Gift from any Person doing
business with, seeking to do business with, or being regulated by the City. Those items or
services that do not constitute prohibited Gifts include, but are not limited to:
a. Political contributions made and reported in accordance with all applicable local,
state, and federal laws.
b. Awards publicly presented in recognition of public service.
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c. Entertainment, meals or refreshments furnished in conjunction with public events,
appearances, or ceremonies related to official city business, if furnished by the
sponsor of such public event, and meals and refreshments having a value of less
than $200.00 when furnished or provided to an Elected Official or City Official
during the conduct of public business.
d. Any item received by an Elected Official or City Official and immediately
donated to a charitable organization.
e. Meals, lodging, or transportation in connection with services rendered by the
Elected Official or City Official at a conference, seminar or similar event that is
more than merely perfunctory.
f. Attendance by an Elected Official or City Official at hospitality functions at local,
regional, state or national association meetings and/or conferences.
g. Pens, pencils, calendars, t-shirts, caps and similar items containing logos, slogans,
company names or other marketing material and commonly given out for
advertising purposes.
4. Use of Confidential Information. Elected Officials and City Officials shall not disclose
confidential or proprietary information, or any information they have acquired or
obtained in the course of any fiduciary capacity or relationship, that could adversely
influence the property, government, or affairs of the City, nor directly or indirectly use
his or her position to secure confidential information about any Person for their financial
benefit or gain.
5. Outside Employment and Political Activities.
a. Full-time City Officials must inform their supervisor in writing before engaging
in off-duty employment.
b. The City, City Bodies, and Local Government Affiliates shall abstain from
employing professional lobbyists. Any Elected Official or City Official who
advocates for changes in state or federal policy, regulations, or laws in their
capacity as an Elected Official or City Official shall disclose the matters promoted
or opposed and to whom on the City’s website within 72 hours of occurrence.
6. Former and Current Elected Officials and City Officials.
a. A former Elected Official or City Official shall not use or disclose confidential
government information acquired during service as an Elected Official or City
Official, provided that this Section shall not prohibit:
i. Any disclosure that is no longer confidential by law;
ii. The confidential reporting of illegal or unethical conduct to authorities
designated by law; or
iii. As required by court order or appropriate agency.
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b. A former paid Elected Official or City Official shall not represent for
compensation any person, group or entity, other than himself or herself, or his or
her immediate family members, before any Election Official, City Official, City
Council, or City Body for a period of 2 years after termination of his or her
official duties, except by the public permission of and disclosure by the City
Council.
SECTION 3. GLOSSARY OF DEFINED TERMS
1. Rules of Construction. Words used in the present tense include the future tense. Words
used in the plural number include the singular, and words in the singular include the
plural. The word “shall” is always mandatory. The word “herein” means in this Policy.
The word “regulations” means the provisions of any applicable ordinance, rule,
regulation or policy.
2. Defined Terms. For the purposes hereof, the following terms have the meanings set
forth below:
a. “Affiliate Organization” means any Person in which: (1) such Person or any
Family Relationship of such Person holds a five percent (5%) or greater beneficial
or ownership interest; and/or (2) such Person or any Family Relationship of such
Person is directly or indirectly involved in the management and/or control of such
entity.
b. “City” means any home rule city which has adopted a home rule charter for its
local self-governance and all its subsidiaries, or any general law city as defined in
the Tex. Local Gov’t Code.
c. “City Body” means the City Council and any commission or board of the City
created by the City Council, together with any other governing body or group
responsible for the management and administration of any City activities and their
subsidiaries. “City Body” shall also include all committees, sub-committees,
working groups, boards, corporations, local government corporations,
commissions, agencies, departments, funds, non-profits, or any other entity
created by any City Body.
d. “City Council” means the City Council or City Commission as defined in the City
Charter or Local Gov’t Code.
e. “City Official” means all persons appointed by the City Council or an individual
City Council Member to a City Body and all employees of the City with
supervisory roles and authority over policies and procedures. For the avoidance
of doubt, City Official shall not include the Elected Officials.
f. “Conflicted Party” means any Person who has entered into a relationship
categorized as a Conflict of Interest as described by Section 1(3) above.
g. “Elected Official” means the elected officers of the City, including the mayor of
the City and the members of the City Council.
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h. “Family Relationship” means any relationships within the third degree by
consanguinity or second degree by affinity, each as defined by Tex. Gov’t Code
Chapter 573. In relevant part, (A) Tex. Gov’t Code Chapter 573.023(c) provides
that “[a]n individual’s relatives within the third degree by consanguinity are the
individual’s: (1) parent or child (relatives in the first degree); (2) brother, sister,
grandparent or grandchild (relatives in the second degree); and (3) great-
grandparent, great-grandchild, aunt who is a sister of a parent of the individual,
uncle who is a brother of a parent of the individual, nephew who is a child of a
brother or sister of the individual, or niece who is a child of a brother or sister of
the individual (relatives in the third degree)..”; and (B) Tex. Gov’t Code Chapter
573.025(b) provides that “[a]n individuals relatives within the second degree by
affinity are: (1) anyone related by consanguinity to the individual’s spouse in one
of the ways named in Section 573.023(c)(1) and 573.023(c)(2); and (2) the spouse
of anyone related to the individual by consanguinity in one of the ways named in
Section 573.023(c)(1) and 573.023(c)(2).
i. “Gift” means a favor, service, hospitality, economic benefit, product or item
having a value of $200.00 or more, or $500.00 or more within a 12-month period.
A “Gift” does not include campaign contributions reported as required by local,
state, or Federal law, money, items, or benefits received from a relative if given
on account of kinship, or any value received by will, intestate succession, or as a
distribution from an inter vivos or testamentary trust established by a spouse or
ancestor.
j. “in writing” shall include by memorandum, letter, or email whereby receipt is
verified.
k. “Local Government Affiliate” means any Person in which payments (other than
compensation) from the City accounts for at least thirty percent (30%) of such
Person’s annual revenues, whereby the City or an Elected Official or City Official
appoints two or more board members, or whereby the City established or renews
such Person’s charter.
l. “Person” means any individual, corporation, sole proprietorship, organization,
government or governmental subdivision or agency, business trust, estate, trust,
partnership, association, limited liability company, and any other legal entity.
m. “TGAA” means the Texas Government Accountability Association, which has
been organized in accordance with the Interlocal Cooperation Act, Tex. Gov't
Code §791.001, et seq.
n. “Vendor” means any Person that receives payments from the City or any of its
City Bodies that is not employment compensation.
