03-12-1991 (WEDC) Agenda Packet MEETING
DEVELOPMENT CORPORATION OF WYLIE, INC.
TUESDAY, MARCH 12, 1991
4:00 PM
2000 HIGHWAY 78 NORTH, WYLIE, TEXAS
CALL TO ORDER
ORDER OF PAGE
BUSINESS NUMBER BUSINESS
1 1-2 Consider Approval of Minutes of January 8, 1991 AfRI
Development Corporation of Wylie, Inc. Meeting OIAIR
2 Report From Treasurer on Status of Funds A pp
3 Presentation from Chamber of Commerce on Where
They Are and Where They are Going
4 Discuss and Consider Authorizing Payment to
The City of Wylie in the Amount of $50.00 for
March Rent Per Agreement
5 Discuss and Consider Authorizing Payment to
Wylie Printing and Office Supply in the Amount
Of $34.75 for Name Badges
•
6 3-15 Discuss and Consider Awarding Bid to Wylie
Insurance Agency for $50,000 Liability Insurance
7 Recess Regular Meeting
8 Convene to Workshop to Discuss Goals and
Objectives
9 Reconvene Regular Meeting
10 Citizen Participation
In Accordance With the Open Meeting Act, the
Development Corporation will hear comments of
Public Interest From Residents of the City of
Wylie. Any discussion must be limited to
placing the item on a future agenda for further
Consideration.
Wylie Residents Wishing to Speak Should Limit
Remarks to a Maximum of Five (5) Minutes
11 Adjourn
NOTICE OF REGULAR MEETING
Notice is hereby given that the Economic Development Corporation Board of
Wylie will meet at 4:00 P.M. on the ,a day of(24/ , 1991
at 2000 Highway 78, North, in the City of Wylie, Texas, for the purpose
of considering the above agenda.
d")
Carol/ya-, es,l Ci ecretary
c V
POSTED THIS THE e DAY OF (`MtVa, 1991, AT 3) M.
MEETING
DEVELOPMENT CORPORATION OF WYLIE, INC. "
TUESDAY, MARCH 12, 1991
4:00 PM
2000 HIGHWAY 78 NORTH, WYLIE, TEXAS
CALL TO ORDER
ORDER OF PAGE
BUSINESS NUMBER BUSINESS
1 1-2 Consider Approval of Minutes of January 8, 1991
Development Corporation of Wylie, Inc. Me ting
2 Report From Treasurer on Status of Funds
3 Presentation from Chamber of Commerce on Where la
They Are and Where They are Going
4 Discuss and Consider Authorizing Payment to
The City of Wylie in the Amount of $50.00 for
March Rent Per Agreement
O
5 Discuss and Consider Authorizing Payment to
Wylie Printing and Office Supply in the Amount
41
Of $34.75 for Name Badges
6 3-15 Discuss and Consider Awarding : 'd to Wylie /
Insurance Agency for $50,000 . . .ility Insurance
7 Recess Regular Meetin•
8 Convene to Works .p to Discuss Goals and
Objectives
9 Reconvene Regular Meeting
•
10 Citizen Participation
1101 In Accordance With the Open Meeting . t, the
Development Corporation will hear comnen,- of
Public Interest From Residents of the City of
Wylie. Any discussion must be limited .•
placing the item on a future agenda for furthe /..°° #°
Consideration.
•
Wylie Residents Wishing to Speak Should Limit
Remarks to a Maximum of Five (5) Minutes •
11 Adjourn
if)
NOTICE OF REGULAR MEETING
Notice is hereby given that the Economic Development Corporation Board of
Wylie will meet at 4:00 P.M. on the / _ day of("A?44D( , 1991
at 2000 Highway 78, North, in the City of Wylie, Texas, for the purpose
of considering the above agenda. (2 )1
Carol es, Ei ecretary /q/0
(8I)(i31)
POSTED THIS THE � DAY OF (4),, t'ea, 1991, AT,Y`t,, M. (
DIRECTORS OF DEVELOPMENT CORPORATION OF WYLIE, INC.
MINUTES
FEBRUARY 12 , 1991
The Directors of the Development Corporation of Wylie, Inc.
met in regular session at 4 : 00 P.M. on Tuesday, February 12 ,
1991 in the Conference Room at the Municipal Complex . A
quorum was present and notice of the meeting had been posted
in the time and manner required by law. Those present were
Jim Smith , President ; Bart Peddicord , Secretary-Treasurer;
and members Raymond Cooper and John Yeager . James Blakey,
Vice President arrived late . Also present were City
Manager, Bill Dashner and Mayor John Akin .
Jim Smith called the meeting to order .
APPROVAL OF MINUTES OF FEBRUARY 12, 1991 : A motion was made
and seconded that the minutes of the February 12, 1991
meeting be accepted as is . The motion carried with all in
favor . 4 15 9
0
APPROVAL OF TREASURER REPORT: Bart Peddicord , Secretary- T S1 di
Treasurer ; gave a report on the expenditures and revenues of 7110 '1
the Development Corporation of Wylie, Inc. He reported the 0
current balance to be $65 ,863 .43 . A current treasurer ' s S
report will be given at each meeting. A motion was made by
Raymond Cooper to accept the report as read and it was g
3f
seconded by John Yeager . The motion carried with all in
favor .
DISCUSS AND CONSIDER PURCHASE OF A FILE CABINET: Discussion
was made about the purchase of a used two (2) drawer legal
size fire proof file cabinet from Bart Peddicord ' s son for
$175 . 00 . Bart Peddicord abstained from discussion on this
item. Raymond Cooper stated this was a very good deal and
made a motion that we purchase it . John Yeager made a
second . Jim Smith - in favor, Raymond Cooper - in favor,
John Yeager - in favor . Bart Peddicord abstained from
voting on this item. Motion carried .
AUTHORIZE PAYMENT TO THE CITY OF WYLIE FOR EXPENSES INCURRED
IN ORGANIZING THE DEVELOPMENT CORPORATION OF WYLIE, INC: A
motion was made by Raymond Cooper to reimburse the City for
expense in the amount of $604 . 12 as per their invoice. The
motion was seconded by John Yeager . The motion carried with
all in favor .
DISCUSSION OF LETTER FROM ANITA COLLIN REGARDING RECEIPT OF
DEVELOPMENT CORPORATION FUNDS FROM CITY OF WYLIE:
Discussion was made as to how funds are received from the
City and what kind of documentation they will receive.
DISCUSSION WAS MADE ON COMMERCIAL INDUSTRIAL ZONING AND LAND
USE: Bart Peddicord brought the board up to date on the
types of zoning the City now has . There has been a sub-
committee appointed by the Planning and Zoning Commission to
look in to the zoning we presently have and to make
recommendations for changes . City Manager, Bill Dashner ,
reported that the City is in the process of recodifying and
preparing a Land Use Map for planning and zoning use. It
will be an official Land Use map and will be located in the
Council Chambers .
RECESS REGULAR MEETING: A motion was made to recess the
regular meeting by Raymond Cooper and seconded by Bart
Peddicord . The motion carried with all in favor .
WORKSHOP DISCUSSION OF GOALS AND OBJECTIVE: Discussion was
made about the objective of the Wylie Development Coloration
and what parameters it must work within . Discuss the
objectives of why the Wylie Chamber of Commerce was formed .
There will be a Texas Highway Department reception at Sanden
Corporation on the 28th of February. Discuss and Consider
having badges for the Development Corp . board members .
Discussion of whether we should or do we even want to get
involved in the issuance of bonds. Discussed building a
building that could eventually be leased , lease/purchase or
sold to a new business . Philosophy of this board .
Reconvene Open Meeting .
There being no other matters of business for discussion , a
motion was made to adjourn with all in favor .
Minutes of the February 12 , 1991 regular meeting approved by
the Board of Directors at its meeting on March 12 , 1991 .
Barton Peddicord, Secretary-Treasurer
DZ
MEMORANDUM
DATE: March 8 , 1991
TO: Bill Dashner, City Manager �]
FROM: Jim Holcomb, Purchasing Agent
RE: Bond Proposal for Wylie Development
Corporation
As requested , I have solicited competitive
proposals on a fidelity bond to cover the board
members of the Development Corporation of Wylie ,
Inc. All insurance agencies in the City of Wylie
were invited to submit proposals . I also contacted
several agencies outside the city with whom I have
had previous experience or to whom I had been
referred by others . To date, only Wylie Insurance
Agency has submitted a proposal . All others have
declined to respond to the solicitation .
The quote from Wylie Insurance Agency is for a
blanket fidelity bond from American States
Insurance Co . to cover all board members to a limit
of $150 , 000 .00 (no deductible) . This blanket
coverage is no more expensive than limiting the
coverage to just the officers of the corporation .
The 3 year prepaid premium is $1 , 545 .00 ($515 .00
annual cost) .
3
MEMORANDUM
DATE: March 8 , 1991
TO: Chairman and Members of Wylie Development
Corporation
FROM: Bill Dashner , Ex-Officio Member o 41410!fro'
Development Corporation Board
RE: Conflict of Interest on Wylie Insurance
Agency Bid
After conferring with the City Secretary and the
City Purchasing Agent we are of the opinion that
to award the fidelity bond insurance bid to Wylie
Insurance Agency will be a direct conflict of
interest prohibited by Chapter 171 of the Local
Governmental Code, Conflict of Interest Statues ,
State of Texas .
The Purchasing Agent solicited bids in town and
out of town and Wylie Insurance Agency was the
only bid received . I would recommend to the board
as City Manager and as ex-officio member that this
be rebid and that Wylie Insurance Agency be
precluded from bidding .
..c.
I
o . 51
-'' ',;. t �BTI"1LL C. MATTERS /1H'Ftt'C'1'ING PUBLIC WTI-
• RS AND EMPLOYF,F,S OF MORE THAN ONE
- c!• 71, TYPE OF LOCAL GOVERNMENT
r
�
pTER 171. REGULATION OF CONFLICTS OF INTER-
`:4$. EST OF OFFICERS OF MUNICIPALITIES, COUNTIES,
.
' ,..141. AND CERTAIN OTHER LOCAL GOVERNMENTS
y.,, won
;7..,r ICI001, Definitions.
171002, Substantial Interest in Business Entity.
171 003. Prohibited Acts; Penalty.
:: 171.004. Affidavit Required.
111005• Contract Authorized.
171006• Voting on Budget.
171,007, No Limitation on Common Law Remedies.
j71008. Effect of Violation of Chapter.
Library References
Municipal Corporations 0=231(3).
C.J.S. Municipal Corporations § 991.
WESTLAW Electronic Research
See WESTLAW Electronic Research Guide following the Preface.
§ 171.001. Definitions
See, also, italicized material following text of this section
In this chapter:
(1) "Local public official" means a member of
the unpaid,governing
o any odtror
another officer, whether elected, appointed, paid,
t
• (including a schooldistrict), ty, tnct, central apprais-
al district, transit authority
uooyo district, or other local governmental
who exercises responsibilities beyond those that areadvisory
s in mature.
(2) "Business entity" means a sole proprietorship, partnership,
a
cor-
poration, holding company, joint-stock company, receivership, trust, or any
other entity recognized by law.
Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.
Amendment by Acts 1987, 70th Leg., ch. 659, § 3
V.T.C.A. Government Code, § 311.031(c) provides, in part, that the
repeal of a statute by a code does not affect an amendment of the
statute by the same legislature which enacted the code and that the
amendment is preserved and given effect as part of the code provision.
Section 3 of Acts 1987, 70th Leg., ch. 659, amends subd. 1 of§ 1 of
Vernon's Ann.Civ.St. art. 988b [now,
this section] without reference to
303
7 f^
t'
i�
yt:
5
A i
ray'Fvv
I § 171.001 OFFICERS & EMPLOYEES—GENERALLY
"''•' I Title 3
the repeal of said article by Acts 1987, 70th Leg., ch. 149, § 49(1). As
so amended, subd. 1 of§ 1 reads:
"'Local public official' means a member of the governing body or
another officer, whether elected or appointed, paid or unpaid, of any
district (including a school district), county, city, precinct, central
appraisal district, transit authority or district, or other local govern-
mental entity who exercises responsibilities beyond those that are
advisory in nature, but does not include a board member of a higher
education authority created under Chapter 53, Education Code, unless
a vote, act, or participation by the board member as to the affairs of a
higher education authority would provide a financial benefit to a
financial institution, school, college, or university constituting a source
of income to the board member or being a business entity in which the
board member has an interest distinguishable from financial benefit
available to any other like financial institution or other school, college,
or university whose students are eligible for a student loan available
under Chapter 53, Education Code."
Historical Note
Prior Law:
Acts 1983, 68th Leg., p. 4079, ch. 640, § 1.
Vernon's Ann.Civ.St. art. 988b, § 1.
§ 171.002. Substantial Interest In Business Entity
See, also, italicized material following text of this section
(a) For purposes of this chapter, a person has a substantial interest in a
business entity if:
(1) the interest is ownership of 10 percent or more of the voting stock or
shares of the business entity or ownership of $2,500 or more of the fair
market value of the business entity; or
(2) funds received by the person from the business entity exceed 10
percent of the person's gross income for the previous year.
(b) A person has a substantial interest in real property if the interest is an
equitable or legal ownership with a fair market value of $2,500 or more.
(c) A local public official is considered to have a substantial interest under
this section if a person related to the official within the second degree by
consanguinity or affinity has a substantial interest under this section.
Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.
Amendment by Acts 1987, 70th Leg., ch. 362, § 1
V.T.C.A. Government Code, § 311.031(c) provides, in part, that the
repeal of a statute by a code does not affect an amendment of the
statute by the same legislature which enacted the code and that the
amendment is preserved and given effect as part of the code provision.
Section 1 of Acts 1987, 70th Leg., ch. 362, amends § 2 of Vernon's
Ann.Civ.St. art. 988b[now, this section]without reference to the repeal
304
CL
}•.
• NFLicTS OF INTEREST § 171.002
'Cr��. 171 Note 2 '
-,-,;, : article by Acts 1987, 70th Leg., ch. 149, 49 1 As so '*
o f said § O• n '
amended§ 2 reads:
"(a) A person has a substantial interest in a business entity if:
"(1) the person owns 10 percent or more of the voting stock or A,
•
shares or of the fair market value of the business entity or owns$5,000
or more of the fair market value of the business entity; or {'
"(2) funds received by the person from the business entity exceed 10
percent of the person's gross income for the previous year.
"(b) A person has a substantial interest in real property if the
interest is an equitable or legal ownership with a fair market value of
$2,500 or more.
'(c) An interest of a person related in the first degree by either
affinity or consanguinity to the local public official is a 'substantial
interest.'"
Revisor's Note
The source law refers to a person related "in the first or second degree by
either affinity or consanguinity" to a local official. The reference to the "first
degree" is omitted from the revised law because that concept is included
within the meaning of the revised terminology "within the second degree."
Historical Note
Law governing offenses committed prior to Prior Law:
effective date of Acts 1987, 70th Leg., ch. 362, Acts 1983, 68th Leg., p. 4079, ch. 640, § 2.
f I, see note following § 171.003. Vernon's Ann.Civ.St. art. 988b, § 2.
Notes of Decisions
• Conflicts between particular positions 6 district, a part of the expense of which was
Contracts prohibited 2 payable from the city treasury, and could not
Home rule cities 8 accept such employment so long as he re-
Influence exercised 7 rnained a city council member; such action
Personal pecuniary interest 1 was not in violation of Vernon's Ann.P.C.
Prior contracts 3 (1925) art. 373 (repealed; see, now, V.T.C.A.
Public housing tenancy 4 Penal Code, § 39.01) which was inapplicable.
Public officers 5 Op.Atty.Gen.1970, No. M-714.
Subdivision 2(a)(1) of Vernon's Ann.Civ.St.
art. 988b (repealed; now, this section) prohib-
I. Personal pecuniary Interest ited board member of Dallas police and fire
Under Texas law, the conflict of interest stat- pension fund from voting to invest pension
uses [Vernon's Ann.Civ.St. art. 988 (repealed; funds in any business entity in which he held a
see, now, this section) and Vernon's Ann.P.C. $2,500 ownership interest, whether or not that
(1925) arts. 371 and 373 (repealed; see, now, interest was in business entity which issues
V.T.C.A. Penal Code, § 39.01)] required that stock. Op.Atty.Gen.1985, No. JM-291.
the prohibited interest by a city official be a County clerk may, without conflict of inter-
personal pecuniary interest"in order to invali- est, purchase an interest in title company and
date a contract between the city and another. manage it part-time; however, he must main-
Crystal City v. Del Monte Corp. (C.A.1972) 463 taro a complete arm's length relationship with
F.2d 976, certiorari denied 93 S.Ct. 464, 409 title company. Op.Atty.Gen.1985, No. JM-310.
U.S. 1023, 34 L.Ed.2d 315.
A city councilman was "interested in" his 2. Contracts prohibited
contract of employment by the community ac- City cannot pay user fees to city councilmen
lion agency of the city, county, and school who operate a county landfill dump under
305
'i_ ..
5"s. ,1
r' •
y I § 171.002 OFFICERS & EMPLOYEES—cENERpLLI
Note 2 Title
contract with county. Op.Atty.Gen.1980, No. commissioner of local housing authority to t,
MW-155. tenant of local housing project. Op.Atty.G"
A city council may not contract with a gener-
1985, No. JM-308.
al contractor which has previously contracted Tenant board member's residency in hou,:r
Iwith a subcontractor employing a member of project did not implicate him in any conflict
the city council as an officer, if the firm em- interest described by Vernon's Ann.Civ.St. a-.
t I ployi the
member acts
as ads member of
988b (repealed; see, now, this section). cr
citythe j Atty.Gen.1985, No. JM-308.
city council does not automatically vacate his
or her office in the event that the city council 5. Public officers
so contracts. Op.Atty.Gen.1984, No. JM-171. A trustee of a Mental Health/Mental Rct rr
Vernon's Ann.Civ.St. art. 988b (repealed; dation Community Center was a local
now, puh!:
see, this section) did not prohibit con- officer within Vernon's Ann.Civ.St. art. 9<:;
stable from contracting with government of (repealed; see, now, this section). Op.At;+
i county in which his precinct was located. Op. Gen. 1986, No. JM-424.
Atty.Gen.1985, No. JM-270.
IA contract between a governmental body 6. Conflicts between particular positions
j i and a private entity in which a member of the Positions of city councilman and voluntce;
governmental body is pecuniarily interested fireman are not incompatible as a matter „
was voidable under the conditions set out in law. Op.Atty.Gen.1978, No. LA-154.
Vernon's Ann.Civ.St. art. 988b (repealed; see,
now, this section). Op.Attv.Gen.1986, No. JM- Const. Art. 16, § 40, permits school !cachet
424 paid from state funds to serve as city coun,i
member only if teacher receives no compen,a
Vernon's Ann.Civ.St. art. 988b (repealed; lion for city council service. Op.Attv.Gc::
see, now, this section) modified the common 1980, No. MW-230.
law concerning the pecuniary interest of a lo-
cal public official in contracts entered into by An individual may not serve as both fire
the governmental body they serve; governmen- chief and city council member of the City o!
tal body could contract with a private entity in Quitman by virtue of the common law doctrine
which a member of the governmental body of incompatibility; a person who accepts the
was pecuniarily interested if he followed the office of city council member automatically
disclosure and recusal procedure stated in such resigns as fire chief. Op.Atty.Gen.1982, No
article. Op.Att}•.Gen.1986, No. JM-424. MW-432.
Superintendent in charge of streets for the 7. Influence exercised
city of Madisonville is not precluded as a mat-
ter of law from engaging in the writing of bail Fact that no influence was exercised is not
bonds. Op.Attv.Gen.1986, No. JM-598. determinative of whether contract was viola
•
live of conflict of interest ordinance and stat
3. Prior contracts utes. Delta Elec. Const. Co. v. City of San
It was a violation of Vernon's Ann.Civ.St.art. Antonio (Civ.App.1969) 437 S.W.2d 602, ref,
988b(repealed; see, now, this section), but not n.r.e.
former Vernon's Ann.P.C. (1925) art. 373 (re-
pealed; see, now,V.T.C.A.Penal Code,§ 39.01) 8. Home rule cities
for a person elected city commissioner to re- Vernon's Ann.Civ.St. art. 988 (repealed; see.
main pecuniarily interested in a contract previ- now,this section)prohibiting conflicts of inter-
ously entered into by him with the city where- est involving city officers was inapplicable to
by the city sold water to him for resale to rural home rule cities, and trial court therefore act
customers. Op.Att}•.Gen.1975, No. H-638. ed properly in dismissing suit by citizens of
4. Public housing tenancy home rule city who sought to nullify city con•
tracts on ground of conflict of interest on part
Texas Constitution does not prohibit legisla- of mayor. Woolridge v. Folsom (Civ.App
ture from enacting a bill which requires one 1978) 564 S.W.2d 471.
§ 171.003. Prohibited Acts; Penalty
See, also, italicized material following text of this section
(a) Except as provided by Section 171.005 or 171.006, a local public official
commits an offense if the official knowingly:
306
,-es--. "
•
•
•w 5',
NFLICTS OF INTEREST +
§ 171 " '.k;'
171 .003
a
(1) participates in a vote or decision on a matter involving a business
•L;;' entity in which the official has a substantial interest if it is reasonably
foreseeable that an action on the matter would confer an economic benefits.
on the business entity;
(2) acts as surety for a business entity that has work, business, or a
contract with the governmental entity; or
(3) acts as surety on any official bond required of an officer of the
governmental entity.
(b) An offense under this section is a Class A misdemeanor.
Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.
Amendment by Acts 1987, 70th Leg., ch. 323, § 1; Acts 1987,
70th Leg., ch. 362, § 1
VT.C.A. Government Code, § 311.031(c) provides, in part, that the
repeal of a statute by a code does not affect an amendment of the
statute by the same legislature which enacted the code and that the
amendment is preserved and given effect as part of the code provision.
Section 1 of Acts 1987, 70th Leg., ch. 323, amends subsec. (a) of§ 3
of Vernon's Ann.Civ.St. art. 988b [now, this section' and § I of Acts
1987, 70th Leg., ch. 362, amends § 3 thereof, without reference to the
repeal of said article by Acts 1987, 70th Leg., ch. 149, § 49(1). As
amended by ch. 323, § 3(a) reads:
"(a) Except as provided by Section 5 of this Act, a local public
official commits an offense if he knowingly:
"(1) participates in a vote or decision on a matter involving a
business entity or real property in which the local public official has a
substantial interest if it is reasonably foreseeable that an action on the
matter would confer an economic benefit to the business entity in-
volved;
"(2) acts as surety for a business entity that has a contract, work, or
business with the governmental entity; or
"(3) acts as surety on any official bond required of an officer of the
governmental entity."
As amended by ch. 362, § 3 reads:
"(a) A local public official commits an offense if he knowingly:
"(1) violates Section 4 of this Act;
`(2) acts as surety for a business entity that has a contract, work, or
business with the governmental entity; or
"(3) acts as surety of an official bond required of an officer of the
governmental entity.
"(b) An offense under this section is a Class A misdemeanor."
307
• § 171.003 OFFICERS & EMPLOYEES—GENERALLY
Title S
e Historical Note
Section 4 of Acts 1987, 70th Leg., ch. 323 law as it existed before the effective date of
provides: this Act. Such an offense may be prosecuted
"An offense committed under Chapter 640, and a penalty imposed under the former lass as
Acts of the 68th Legislature, Regular Session, if this Act had not been enacted. The former
law is continued in effect for thispurpose.
1983 (Article 988b, Vernon's Texas Civil Stat-
utes), before the effective date of this Act is "(b) For the purposes of this section, an of.
governed by the law in existence on the date fense is committed before the effective date of
the offense occurred, and the former law is this Act if any element of the offense is corn.
continued in effect for that purpose." mitted before that date."
Section 2 of Acts 1987, 70th Leg., ch. 362
provides: Prior Law:
' ' "(a) The change in the law made by this Act Acts 1983, 68th Leg., p. 4079, ch. 640, § 3.
does not affect an offense committed under the Vernon's Ann.Civ.St. art. 988b, § 3.
' Cross References
Punishment, class A misdemeanors, see V.T.C.A. Penal Code, § 12.21.
' i
Notes of Decisions
Voting 1 member could reasonably have foreseen that
such action would result in interest income to
the lending institution from guaranteed stu-
1. Voting dent loans. Op.Atty.Gen.1984, No. JM-178.
A member of the board of directors of a A school trustee who engaged in school
higher education authority was a public offi-
cial within the meaning of Vernon's Ann. board deliberations leading up to a vote or
Civ.St. art. 988b (repealed; see, now, this sec- decision on a matter in which he was substan
tion), and such a board member with a sub- tially interested participated in a vote or den.
stantial interest in a lending institution violat- sion of that matter within § 3(a)(1) of ‘'cr
ed such article by knowingly participating in a non's Ann.Civ.St.art.988b(repealed; now,this
vote or decision of the board of directors if the section). Op.Atty.Gen. 1985, No. JM-379.
§ 171.004. Affidavit Required
• See, also, italicized material following text of this section
(a) If a local public official has a substantial interest in a business entity
that would be peculiarly affected by any official action taken by the governing
body, the official shall file, before a vote or decision on the matter, an
affidavit stating the nature and extent of the interest and shall abstain from
further participation in the matter.
(b) The affidavit must be filed with the official record keeper of the
governmental entity.
Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.
Amendment by Acts 1987, 70th Leg., ch. 323, § 2; Acts 1987,
70th Leg., ch. 362, § 1
V.T.C.A. Government Code, § 311.031(c) provides, in part, that the
repeal of a statute by a code does not affect an amendment of the
statute by the same legislature which enacted the code and that the
amendment is preserved and given effect as part of the code provision.
Section 2 of Acts 1987, 70th Leg., ch. 323 and§ 1 of Acts 1987, 70th
Leg., ch. 362, amend § 4 of Vernon's Ann.Civ.St. art. 988b [now, this
308
V
44
•
CONFLICTS OF INTEREST § 171.004
cb. 171
u , section] without reference to the repeal of said article by Acts 1987, ; ~ ',
70th Leg., ch. 149, § 49(1). As amended by ch. 323, § 4 reads:
"(a) If a local public official or a person related to that official in the 0 .
first or second degree by either affinity or consanguinity has a substan-
tial interest in a business entity that would be pecuniarily affected by
any official action taken by the governing body, the local public
official, before a vote or decision on the /natter, shall file an affidavit
stating the nature and extent of the interest and shall abstain from
further participation in the matter. The affidavit must be filed with
the official recordkeeper of the governmental entity.
"(b) If a local public official is required to file and does file an
affidavit of interest under Subsection (a) of this section, that official
shall not be required to abstain from further participation in the
matter or matters requiring such an affidavit if a majority of the
members of the governmental entity of which the official is a member
is composed of persons who are likewise required to file and who do
file affidavits of similar interests on the same official action."
As amended by ch. 362, § 4 reads:
"(a) If a local public official or a person related to that official in the
first degree by either affinity or consanguinity has a substantial inter-
est in a business entity or in real property, the local public official,
before a vote or decision on any matter involving the business entity or
the real property; shall file an affidavit stating the nature and extent of
the interest and shall abstain from further participation in the matter
if:
"(1) in the case of a substantial interest in a business entity the
action on the matter will have a special economic effect on the
business entity that is distinguishable from the effect on the public; or
"(2) in the case of a substantial interest in real property, it is
reasonably foreseeable that an action on the matter will have a special
economic effect on the value of the property, distinguishable from its
effect on the public.
(b) The affidavit must be filed with the official recordkeeper of the
governmental entity.
"(c) If a local public official is required to file and does file an
affidavit under Subsection (a) of this section, that official shall not be
required to abstain from further participation in the matter or matters
requiring such an affidavit if a majority of the members of the
governmental entity of which the official is a member is composed of
persons who are likewise required to file and who do file affidavits of
similar interests on the same official action."
Revisor's Note
The source law refers to a substantial interest of "a person related to that
official in the first or second degree by either affinity or consanguinity." That
reference is omitted from the revised law because the concept is covered by
Section 171.002(c).
309
1 /
1 ill
I I § 171.004 OFFICERS & EMPLOYEES—GENERALLY
III Title
Historical Note
� � I
.4,‘� , t 1^aw governing offenses committed prior to Prior Law:
ti4 ".1 ! I effective date of Acts 1987, 70th Leg., chs. 323 Acts 1983, 68th Leg., p. 4079, ch. 640, 6
and 362, see notes following § 171.003. Vernon's Ann.Civ.St. art. 988b, § 4,
"y,. ."-' = § 171.005. Contract Authorized
< r : See, also, italicized material following text of this section
t3
` The governing body of a governmental entity may contract for the purcha.c
of services or personal property with a business entity in which a member tit
the governing body has a substantial interest if the business entity is the cmh
business entity that:
i (1) provides the needed service or product within the jurisdiction of thr
I governmental entity; and
I (2) bids on the contract.
i
Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.
Amendment by Acts 1987, 70th Leg., ch. 323, § 3; Acts 1987,
70th Leg., ch. 362, § 1
V.T.C.A. Government Code, § 311.031(c) provides, in part, that the
repeal of a statute by a code does not affect an amendment of the
statute by the same legislature which enacted the code and that the
amendment is preserved and given effect as part of the code provision.
Section 3 of Acts 1987, 70th Leg., ch. 323 adds subsec. (c) to § 5 of
Vernon's Ann.Civ.St. art. 988b fnow this section and § 171.0061 and
§ 1 of Acts 1987, 70t1h Leg., ch. 362 amends § 5 thereof without
reference to the repeal of said article by Acts 1987, 70th Leg., ch. 149,
§ 49(1). As added by ch. 323, § 5(c) reads:
'A local public official may perform an act prohibited by Section 3
• of this Act if a majority of the membership of the governmental entity
of which the official is a member is composed of persons who are
required to file affidavits of similar interests under Subsection (b) of
Section 4 of this Act on the official action."
As amended by ch. 362, § 5 reads:
"The governing body of any local governmental entity must take a
separate vote on any budget item specifically dedicated to a contract
with an entity in which a member of the governing body has a
substantial interest and the affected member must abstain from that
separate vote. The member who has complied in abstaining in such
vote under procedures set forth in Sections 3 and 4 of this Act may
vote on a final budget only after the matter in which he is concerned
has been resolved. A local public official may perform an act prohib-
ited by Section 3 of this Act if an majority of the membership of the
governmental entity of which the official is a member is composed of
persons who are required to file affidavits of similar interests on the
official action."
310
•7Xdd a ct S .1 4.; `• f, +a
7, r }' f
i
�yrt
CO
NFLICTS OF INTEREST § 171,007
04. 171
Historical Note
• Law governing offenses committed prior to Prior Law:
tine date of Acts 1987, 70th Leg., chs. 323, Acts 1983, 68th Leg., 4079, ch. 640, § 5.
36+, see notes following § 171.003. Vernon's Ann.Civ.St. art. 988b, § 5(a). ± t.
§ 171.006. Voting on Budget
(a) The governing body of a governmental entity shall take a separate vote
on any budget item specifically dedicated to a contract with a business entity ;.:.:J:•
in which a member of the governing body has a substantial interest. f;
(b) The affected member may not participate in that separate vote, but may
rote on a final budget if:
(1) the member has complied with this chapter; and
(2) the matter in which the member is concerned has been resolved. •
Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.
Amendment by Acts 1987, 70th Leg., ch. 323, § 3; Acts 1987,
70th Leg., ch. 362, § 1
See italicized note following § 171.005.
Historical Note
Prior Law:
Acts 1983, 68th Leg., p. 4079, ch. 640, § 5.
Vernon's Ann.Civ.St. art. 988b, § 5(b).
§ 171.007. No Limitation on Common Law Remedies
See, also, italicized material following text of this section
The penalties and remedies provided by this chapter do not limit common
law remedies in tort, contract, or equity, including a suit for damages,
injunction, or mandamus.
Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.
Amendment by Acts 1987, 70th Leg., ch. 362, § 1
V.T.C.A. Government Code, § 311.031(c) provides, in part, that the
repeal of a statute by a code does not affect an amendment of the
statute by the same legislature which enacted the code and that the
amendment is preserved and given effect as part of the code provision.
Section 1 of Acts 1987, 70th Leg., ch. 362, amends § 6 of Vernon's
Ann.Civ.St. art. 988b [now, this section and § 171.008J without refer-
ence to the repeal of said article by Acts 1987, 70th Leg., ch. 149,
§ 49(1). As so amended, § 6 reads:
"(a) The finding by a court of a violation under this article does not
render an action of the governing body voidable unless the measure
that was the subject of an action involving conflict of interest would
311
/3
§ 171.007 OFFICERS & EMPLOYEES—GENERALLY
Title
not have passed the governing body without the vote of the person who
violated this article.
"(b) This Act preempts the common law of conflict of interest as
applied to local public officials defined in Section 1 of this Act.
"(c) This Act is cumulative of other statutes, city charter provisions
or ordinances defining and prohibiting conflict of interest."
" "• Historical Note
.' Law governing offenses committed prior to Prior Law:
effective date of Acts 1987, 70th Leg., ch. 362, Acts 1983, 68th Leg., p. 4079, ch. 640. § 6.
§ 1, see note following § 171.003. Vernon's Ann.Civ.St. art. 988b, § 6.
lx * i § 171.008. Effect of Violation of Chapter
The finding by a court of a violation under this chapter does not render an
i action of the governing body voidable unless the measure that was the subject
of an action involving a conflict of interest would not have passed the
governing body without the vote of the person who violated the chapter.
Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.
Amendment by Acts 1987, 70th Leg., ch. 362, § 1
See italicized note following § 171.007.
Historical Note
Prior Law:
Acts 1983, 68th Leg., p. 4079, ch. 640, § 6.
Vernon's Ann.Civ.St. art. 988b, § 6.
[Chapters 172 to 179 reserved for expansion]
312
TT • e1 A.• P,Y'tL -+1 �. t t 6 �.,
l 4 °
CHAPTER 180. MISCELLANEOUS PROVISIONS AFFECT- a
ING OFFICERS AND EMPLOYEES OF MUNICIPALI- S`.,. a
TIES, COUNTIES, AND CERTAIN OTHER LOCAL • �.
GOVERNMENTS
Section
180A01. Coercion of Police Officer or Fire Fighter in Connection With Political
Campaign.
1g0.002. Defense of Civil Suits Against Peace Officers.
180.003. Maximum Duty Hours of Peace Officers.
WESTLAW Electronic Research
See WESTLAW Electronic Research Guide following the Preface.
g 180.001. Coercion of Police Officer or Fire Fighter In Connection With
Political Campaign
(a) An individual commits an offense if the individual coerces a police
officer or a fire fighter to participate or to refrain from participating in a
political campaign.
(b) An offense under this section is a misdemeanor and is punishable by a
fine of not less than $500 or more than $2,000, confinement in the county jail
for not more than two years, or both a fine and confinement.
Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.
Historical Note
Prior Law:
Acts 1973, 63rd, Leg., p. 1255, ch. 457, § 2.
Vernon's Ann.Civ.St. art. 1269n.
•
Library References
Elections a311.2(I).
C.J.S. Elections § 334(1).
§ 180.002. Defense of Civil Suits Against Peace Officers
See, also, italicized material following text of this section
(a) In this section, "peace officer" has the meaning assigned by Article 2.12,
Code of Criminal Procedure.
(b) A municipality or special purpose district shall provide a peace officer
with legal counsel without cost to the officer to defend the officer against a
suit for damages by a party other than a governmental entity if:
(1) the officer is employed by it;
(2) legal counsel is requested by the officer; and
(3) the suit involves an official act of the officer within the scope of the
officer's authority.
313