• Home
  • CJCAT
    • North and East Texas County Judges and Commissioners Association
    • South Texas County Judges and Commissioners Association
    • West Texas County Judges and Commissioners Association
  • Conferences
    • Conference Galleries
    • Conference Close-Up
  • Texas County Directory
  • About Us
    • Advertise
    • Submissions
    • Contact Us
    • Subscribe
    • Previous Issues
      • 2019 Previous Issues
      • 2018 Previous Issues
      • 2017 Previous Issues
      • 2016 Previous Issues
      • 2015 Previous Issues
      • 2014 Previous Issues

Texas County Progress

The Official Publication of the County Judges and Commissioners Association of Texas

  • Home
    • Feature Story
  • Monuments of Justice
    • Why Stop In
  • Emergency Response
  • Road & Bridge
  • Jails
  • County Focus
  • Veterans

Disclosure of Interested Parties by Persons Contracting with Governmental Entities

December 28, 2020 by County Progress

Government Code 2252, 84th, 85th and 86th Legislative Sessions

During the 84th Legislative Session in 2015, House Bill 1295 was passed and signed into law, despite concerns expressed by local government officials and procurement professionals. The bill added Section 2252.908 to the Government Code.

  • A governmental entity may not enter into a contract that requires a vote by the governing body of the entity before the contract may be signed or that has a value of at least $1 million with a business entity unless the business entity submits a disclosure of interested parties to the governmental entity at the time the entity submits the signed contract to the governmental entity.
  • The disclosure must be submitted on a form prescribed by the Texas Ethics Commission. The form must include a list of each interested party for the contract of which the contracting entity is aware and the signature of the authorized agent of the contracting business entity, acknowledging that the disclosure is made under oath and under penalty of perjury.
  • Not later than the 30th day after the governmental entity receives a disclosure of interested parties, the entity shall submit a copy of the disclosure to the Texas Ethics Commission.
  • The Texas Ethics Commission was required to adopt rules to implement the law, determine the form, and post a copy of the form on the commission’s website.

Because most contracts that counties sign require Commissioners Court approval prior to execution, this law applies to most contracts entered into by the county. The Texas Ethics Commission rules and online form are available at www.ethics.state.tx.us/filinginfo/1295/.

“Interested parties” is defined as a person who has a controlling interest in a business entity with whom the county contracts, or who actively participates in facilitating the contract or negotiating the terms of the contract. This includes a broker, intermediary, adviser, or attorney for the business entity who receives compensation from the business entity, communicates directly with the governmental entity on behalf of the business regarding the contract, and is not an employee of the business.

In order to comply with this law, counties started including instructions for their vendors in bid and RFP specifications that require the vendors to go to the Texas Ethics Commission website to complete Form 1295 electronically and print, sign, notarize, and submit the form with their submittals, even if no interested parties exist. The governmental entity must acknowledge receipt of the filed Form 1295 by notifying the Texas Ethics Commission of the receipt. The Texas Ethics Commission posts the completed Form 1295 on its website within seven business days after receiving notification from the county.

During the 85th Legislative Session in 2017, Senate Bill 255 made changes in Vendor Disclosure Form 1295 as follows:

  • Contracts with a publicly traded business entity and electric and gas utilities are exempted.
  • Form 1295 must include a written, unsworn declaration by the authorized agent of the contracting business entity. (Removes the requirement for the document to be notarized.)
  • In order to ensure compliance with this disclosure requirement, elected officials should check to be sure that bid and RFP specifications have been updated for these requirements and that the proper disclosures are being made and submitted to the State of Texas. These changes apply to a contract entered into or amended on or after Jan. 1, 2018.

During the 86th Legislative session in 2019, Senate Bill 65 and House Bill 1495 provided further changes: Both bills added “contracts for services that would require a person to register as a lobbyist under Chapter 305” to the list of contracts that must comply with disclosure requirements of this statute.


By Narita Holmes, MBA, CPA, CIA

Government Procurement and Compliance Consultant

Former Ector County Purchasing Agent

Filed Under: County Purchasing, Feature Story Tagged With: disclosure of interest, Purchasing

Subscribe to County Progress

Subscribe: Newsletter | Magazine

January 2021

January 2021
If you'd like to view our previous issues, click here.

Diversifying Revenues

Presentation by Tarrant County Judge Glen Whitley

Search County Progress

Texas County Progress Courthouse Primer

County Courthouse Primer

The latest resolutions passed by the County Judges and Commissioners Association of Texas and the three Regional Associations are available at the links below.

County Judges and Commissioners Association of Texas Resolutions 2020

South Texas Resolutions 2020

West Texas Resolutions 2020

North & East Texas Resolutions 2020

The Cost of County Government: 2018 Unfunded Mandates Survey Report

Texas County Directory

Place your order for the updated 2021 Directory

Connect with us online.

Facebook spacer Twitter spacer LinkedIn

Search County Progress

Privacy Policy

Privacy Policy

Print Friendly and PDF

County Progress

3457 Curry Lane
Abilene, TX 79606
325.673.4822
countyprogress@zacpubs.com

Categories

© 2021 · Zachry Publications