Updates to the Ethics Code and Municipal Campaign Finance Code, as recommended by the Ethics Review Board, were approved by City Council on May 2, 2024. The final revisions, aimed at improving clarity and ensuring consistency with state laws, are effective October 1, 2024.
Ethics Code Revisions
2-41: Statement of Purpose
Final Details:
The scope now specifically includes any individual acting on behalf of the City (e.g., volunteers, contract/temporary employees). The notice regarding compliance with state and federal laws has been moved to the beginning of the Code to increase awareness of these additional requirements.
Rationale:
Expanding the scope enhances public confidence in City government. Additionally, moving the compliance notice ensures immediate awareness of broader legal obligations.
2-43: Conflicts of Interest
Final Details:
Provides guidance on when recusal is required for officials or employees serving on boards or in decision-making capacities outside the City (three-step test). Introduces a restriction that City officials or employees may not participate in making or awarding a contract benefiting a former employer within 12 months of starting their City employment or service.
Rationale:
The guidance and restrictions prevent real or perceived biases, thereby maintaining public trust and ensuring fairness in decision-making.
2-45: Gifts
Final Details:
Clarifies the distinction between a "gift" and an "honorarium" (which is subject to restriction under Texas Penal Code 36.07). Note: Penal Code 36.07 prohibits public servants from soliciting, accepting, or agreeing to accept an honorarium in consideration for services that they would not have been requested to provide but for the public servant's official position or duties.
Rationale:
Clarification distinguishes between an "honorarium" that is subject to the restriction under state law and a "gift" as defined under the City’s Ethics Code.
2-58: Prohibited Interest in Discretionary Contracts
Final Details:
Clarifies that the one-year restriction related to prohibited interest in contracts by former City officers and employees is specifically related to the awarding of the contract by City Council.
Rationale:
Provides additional guidance that a former City officer and/or employee may be able to submit a proposal for evaluation or participate in contract negotiations; however, the final awarding of the contract by City Council must be at least one year after the end of service to the City.
2-59: Disclosure of Parties, Owners, and Closely Related Persons
Final Details:
Clarifies that required disclosures must be made at the time a proposal is submitted but no later than 72 hours prior to action.
Rationale:
Early disclosure maintains transparency in the procurement process and provides sufficient time to verify eligibility and avoid late disqualifications.
2-82: Jurisdiction and Powers
Final Details:
Expands the ERB's discretion to accept or decline consideration of any alleged violation that has been resolved through other means.
Rationale:
Providing the ERB with additional discretion enhances its efficiency and effectiveness, ensuring that resources are allocated to matters that require further review.
2-92: Other Obligations
Final Details:
The notice of the duty to comply with state and federal law has been moved to the beginning of the Ethics Code, increasing awareness that those subject to the City’s Ethics Code and Municipal Campaign Finance Code may also be subject to other legal requirements.
Rationale:
Placing the notice at the beginning ensures immediate awareness of broader legal obligations, promoting comprehensive compliance from the start.
Municipal Campaign Finance Code Revisions
2-306: Campaign Bank Account Statements
Final Details:
Removes the requirement to provide copies of bank account statements to the City Clerk's Office. Texas Election Code does not require this, and removing the requirement protects sensitive information. Candidates must still maintain records of all reportable activity.
Rationale:
Aligns local requirements with state regulations and protects sensitive financial information while ensuring compliance with record-keeping requirements.
2-307: Electronic Filing of Campaign Finance Reports
Final Details:
Removes quarterly campaign finance filings and reverts to state-required semi-annual submissions and specific pre-election reports. Simplifies reporting requirements and reduces confusion caused by duplicate transactions in quarterly reports.
Rationale:
Simplifies reporting requirements to reduce administrative burden and potential errors from duplicate transactions, aligning with state mandates.
2-308: Political Action Committees
Final Details:
Permits General Political Action Committees (GPACs) to provide a general notice or a limited statement to the City Clerk's office versus the filing of a full campaign finance report. Allows for local reporting of applicable municipal transactions without the need for full campaign finance reports for GPACs contributing at multiple levels (state/federal).
Rationale:
Enables a streamlined reporting process for GPACs while ensuring local transparency and reducing unnecessary paperwork.
2-309: Contribution Prohibitions
Final Details:
Prohibits business-specific PACs and all company board members (for profit and non-profit) from contributing during high-profile contract prohibition periods. Note: Change rescinds previous exception for Non-Profit Board Officers. Prohibits all non-profit board members from contributing during high-profile contract prohibition periods.
Rationale:
Maintains public trust by preventing any perception of "pay to play" and ensures a level playing field for all entities seeking City contracts or zoning changes.
Resources
- Code Revisions(PDF, 146KB)
- View a printable version of the upcoming changes to the Ethics Code and Municipal Campaign Finance Code.
- Employee FAQ(PDF, 219KB)
- Guidance for City employees on the updated Ethics Code requirements
- Candidate and Officeholder FAQ(PDF, 239KB)
- Important information for candidates and officeholders regarding campaign finance updates.
- Vendor FAQ(PDF, 229KB)
- Key changes and compliance requirements for vendors working with the City, including non-profit organizations.