Code of Ethics
Code of Ordinances - Town of Flower Mound, Texas
Sec. 2-411. - Definitions.
The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
Compensation means any economic benefit received in return for services, property or investment.
Discretionary authority means the power to exercise any judgment in a decision or action.
Economic benefit means any money, real or personal property, purchase, sale, lease, contract, option, credit, loan, discount, service or other tangible or intangible thing of value, whether similar or dissimilar to those enumerated.
Employee means any person employed by the town, including those individuals employed on a part-time or seasonal basis, but such term shall not be extended to apply to any independent contractor.
Entity means a sole proprietorship, partnership, limited partnership, firm, corporation, professional corporation, holding company, joint stock company, receivership, trust or any other entity recognized by law through which business may be conducted.
Gift means a favor, hospitality or economic benefit, other than compensation.
Officer or official means any member of the town council and any appointive member of a board, commission, authority or committee set up by ordinance, the Charter, state law or otherwise on a temporary or permanent basis, but not members of a board, commission, authority or committee which functions only in an advisory or study capacity and which has no discretionary, governmental, quasijudicial or administrative authority.
Relative means any person related to an officer, official or employee within the first degree by consanguinity or affinity and shall include a spouse, father, mother, son, daughter, brother or sister.
Remote interest means an interest of a person or entity, including an official, who or which would be affected in the same way as the general public. The interest of a councilmember in the property tax rate, general town fees, town utility charges or a comprehensive zoning ordinance or other similar decision is a remote interest to the extent that the councilmember is affected in common with the general public.
Substantial interest means an interest in another person or an entity if:
(1) The interest is ownership of ten percent or more of the voting stock, shares or equity of the entity or ownership of $5,000.00 or more of the equity or market value of the entity;
(2) Funds received by the person from the other person or entity either during the previous 12 months or the previous calendar year equalled or exceeded $5,000.00 in salary, bonuses, commissions or professional fees or $20,000.00 in payment for goods, products or nonprofessional services, or ten percent of the person's gross income during that period, whichever is less;
(3) The person serves as a corporate officer or member of the board of directors or other governing board of the for-profit entity, other than a corporate entity owned or created by the town council; or
(4) The person is a creditor, debtor or guarantor of the other person or entity in an amount of $5,000.00 or more.
Substantial interest in real property means an interest in real property which is an equitable or legal ownership with a market value of $5,000.00 or more.
Substantial interest in partnerships, professional corporations and other entities means if a town officer, official or employee is a member of a partnership or professional corporation, or conducts business through another entity, a substantial interest of the partnership, professional corporation or entity shall be deemed to be a substantial interest of the town officer, official or employee if:
(1) The partnership or professional corporation has fewer than 20 partners or shareholders;
(2) Regardless of the number of partners or shareholders, the officer, official or employee has an equity interest, share of draw equal to or greater than five percent of the capital or revenues of the partnership, professional corporation or other entity; or
(3) With regard to the partnership, professional corporation or other entity's substantial interest in a particular client, the officer, official or employee has personally acted within the preceding 24 months in a professional or fiduciary capacity for that client.