Disclosure of Interested Parties

Effective January 1, 2016, the East Montgomery County Improvement District or any other governmental entity may not enter into a contract requiring board approval unless the business entity submits a Disclosure of Interested Parties at the time the business entity submits the signed contract to the governmental entity or state agency. The Texas Ethics Commission has adopted rules requiring the business entity to file Form 1295 electronically with the Commission.

For the purposes of this form, an interested party is: (1) a person who has a controlling interest in a business entity with whom a governmental entity or state agency contracts; or (2) an intermediary.

1. Controlling Interest: An interested party has a controlling interest in the business entity if the interested party meets one or more of the following conditions:
   (a) has an ownership interest or participating interest in a business entity by virtue of units, percentage, shares, stock, or otherwise that exceeds 10 percent;
   (b) is a member of the board of directors or other governing body of a business entity of which the board or other governing body is composed of not more than 10 members; or
   (c) serves as an officer of a business entity that has four or fewer officers, or serves as one of the four officers most highly compensated by a business entity that has more than four officers. Subsection (c) of this section does not apply to an officer of a publicly held business entity or its wholly owned subsidiaries.
2. Intermediary Interest: An interested party has an intermediary interest in a contract if the person actively participates in facilitating a contract or negotiating the terms of a contract with a governmental entity or state agency, including a broker, intermediary, advisor, attorney, or representative of or agent for the business entity who meets all of the following conditions:(a) receives compensation from the business entity for the person’s participation; 
   (b) communicates directly with the governmental entity or state agency on behalf of the business entity regarding the contract; and
   (c) is not an employee of the business entity or of an entity with a controlling interest in the business entity.

Instructions for Completing a Form 1295:

1. Call the offices of Marks Richardson PC at (713)942-9922 to obtain a Contract ID number.
2. Go to https://www.ethics.state.tx.us/whatsnew/elf_info_form1295.htm and create a login or register a new account.
3. Click “Manage My 1295 Forms.”
4. Start a new certificate.
5. Enter the name of the business, city, state and country.
6. Click on “Other Governmental Entity.”
7. Enter “East Montgomery County Improvement District” in the blank provided for Agency/Entity Name.
8. Enter the Contract ID number provided to you by the offices of Marks Richardson PC.
9. Provide a description of goods and services to be supplied by applicant in reference to the contract.
10. Now, go to the bottom of the screen under “List of Interested Parties.” Click on the box that says “Add More.”
11. Type the name of the interested party, last name first and first name last.
12. Then type the city, state and country of the business and indicate whether the person has a controlling interest or an intermediary interest.
13. If there are additional names to add, click the button that says “Add More.”
14. Once there are no more names to add, click “Next.”
15. Click the box that states, “I swear, or affirm, under penalty of perjury that the information is true and correct.”
16. Fill in the name of the authorized agent for the organization.
17. Fill in the name of the person filling out/submitting the form, if different than #16.
18. Print the form and sign it. Email this form to Dawn Humphrey at dhumphrey@emctx.com
19. Click submit. This sends the certificate to the Texas Ethics Commission.