§ 12.2. Personal interest in city contracts.

No officer or employee of the city, nor any person related within the first degree by blood or marriage to such officer or employee, shall have a financial interest, direct or indirect, in any contract with the city, or be financially interested, directly or indirectly, in the sale to the city of any land, material, supplies or services, except on behalf of the city as an officer or employee; provided, however, that this section shall not apply in any instance where the interest of the officer or employee and/or relative as set out above does not exceed ten (10) per cent of the total stock or ownership of the corporation or entity involved, provided further, that such officer or employee shall disclose such interest of ten (10) per cent or less and shall refrain from voting upon or otherwise participating in his capacity as a city officer or employee in the making of such sale or in the making or performance of such contract. Any city officer or employee who willfully conceals such a financial interest or willfully violates the requirements of this section shall be guilty of malfeasance in office or position and shall forfeit his office or position. Violation of this section with the knowledge, expressed or implied, of the person or corporation contracted with or making a sale to the city shall render the contract or sale voidable by the council.

State law reference

Conflict of interest, V.T.C.A., Local Government Code § 171.001 et seq.