Gifts to Public Servants What you will learn: What constitutes bribery or an illegal gift When trustees can accept gifts When trustees must report gifts Key points: Be aware of the restrictions related to gifts to public servants. Absent a legal exception, avoid accepting gifts from vendors or others interested in school business. If a gift from a vendor is permitted by a legal exception, but is valued over $250, be sure to declare the gift on a proper disclosure form. About the Author: Amy Magee, Senior Attorney, TASB Legal Services Amy has been with TASB Legal Services for over six years. In her role as Senior Attorney, Amy develops and reviews school districts’ legal policies and community college districts’ legal and local policies. During her tenure, Amy has authored or contributed to a number of publications and training programs, including the Bullying and Harassment in Schools and Religion in the Public Schools programs. She is also a frequent presenter on a number of legal topics, including the First Amendment, technology in schools, and student issues. Amy received her bachelor of science in psychology with University and Foundation honors from Texas A&M University in May 1999. In 2002, Amy graduated from The University of Texas School of Law. Financial Responsibility Guide © 2015. Texas Association of School Boards, Inc. All rights reserved. 1 Gifts to Public Servants Introduction We all enjoy receiving gifts and perks, but for the trustees and employees of public schools, accepting gifts in relation to their public service can have serious consequences. To avoid legal and ethical missteps, trustees need to know how to respond when presented with gifts in the course of their work on behalf of public schools. Trustees are public servants. A public servant is a person elected, selected, appointed, employed, or otherwise designated as an officer, employee, or agent of government even if the person has not yet qualified for office or assumed his duties.1 Consequently, all individuals serving on behalf of public school districts—including trustees—are public servants subject to restrictions on accepting gifts.2 That means trustees need to think twice before accepting perks and benefits that are offered as a result of work on behalf of the school district. For example, may a trustee accept a meal from a long-time school district vendor while out of town at a regional training event? Is it proper to for a trustee to join a potential vendor on a hunting trip? In some instances, the Texas Penal Code or other law will prohibit a public servant from accepting a gift; in other instances, a gift will be permitted, but must be reported on a public record. Gift As Defined Under the Texas Penal Code A gift, or benefit as it is called in the Texas Penal Code, is anything “reasonably regarded as pecuniary gain or pecuniary advantage, including benefit to any other person in whose welfare the beneficiary has a direct and substantial interest.”3 Advisory opinions from the Texas Ethics Commission help further define benefit.4 Items of minimal value, such as a commemorative trinket, a plaque, or a cup of coffee, are not benefits if they are not solicited or offered in exchange for official action.5 On the other hand, most anything with a dollar value will be considered a benefit, including: commemorative items with an ascertainable dollar value, recreational activities, food and beverage, travel expenses, and event tickets.6 A benefit is essentially anything to which a price can be assigned.7 Bribery A person commits an offense if the person intentionally or knowingly offers, confers, or agrees to confer on another, or solicits, accepts, or agrees to accept from another any benefit as consideration for the recipient’s decision, opinion, recommendation, vote, or other exercise of discretion as a public servant.8 The statute does not include a threshold dollar amount; theoretically, any item with a monetary value could be offered or accepted as a potential bribe.9 A violation of this provision is a second degree felony.10 Financial Responsibility Guide © 2015. Texas Association of School Boards, Inc. All rights reserved. 2 A benefit does not constitute a bribe if it is neither offered nor accepted as consideration for an official act.11 Nevertheless, in the publication Texas Ethics, Gift & Honorarium Laws Made Easy, the attorney general points out that even an unsolicited gift that does not actually influence a public servant’s official decision could still be considered a bribe. The attorney general advises declining anything with a monetary value.12 Gift to a Public Servant by a Person Subject to His Jurisdiction Subject to the exceptions detailed below, a public servant who exercises discretion in connection with contracts, purchases, payments, claims, or other financial transactions of government commits an offense under Texas Penal Code section 36.08 if the person solicits, accepts, or agrees to accept any benefit from a person the public servant knows is interested in or likely to become interested in any contract, purchase, payment, claim, or transaction involving the exercise of his discretion.13 In addition, a public servant with judicial or administrative authority commits an offense if he solicits, accepts, or agrees to accept any benefit from a person the public servant knows is interested in or likely to become interested in any matter before the public servant or tribunal. A violation of this provision is a Class A misdemeanor.14 The Texas Penal Code includes a number of safe harbors that do not constitute impermissible gifts to public servants: Receipt of required fees: A fee prescribed by law to be received by the public servant is not an improper gift when it is paid (e.g., a taxpayer pays delinquent taxes to the school district’s business official).15 Payment for reason unrelated to school business: A benefit to which the public servant is lawfully entitled or for which he gives legitimate consideration in a capacity other than as a public servant is not an improper gift (e.g., a trustee receives payment for hay grown on the trustee’s land).16 Gift based on independent relationship: A gift or other benefit conferred on account of kinship or a personal, professional, or business relationship is not improper if it is based on a relationship that is independent of the public servant’s role with the school district (e.g., a trustee receives the gift of a barbeque grill from his brother-in-law).17 Political contributions: A political contribution governed by Title 15 of the Texas Election Code is not improper, so long as it is not offered as a bribe (e.g., a parent donates $50 to the board president’s re-election campaign).18 Items less than $50: An item with a value of less than $50, excluding cash or a negotiable instrument, is not prohibited by this section (e.g., a school district vendor hands out free computer mouse pads as part of its display at the TASB/TASA Convention).19 Use of district property: An item issued by the district that allows the use of property or facilities owned, leased, or operated by the district is not an improper gift (e.g., the district issues laptop computers to the trustees for use during their term of office).20 Financial Responsibility Guide © 2015. Texas Association of School Boards, Inc. All rights reserved. 3 Food, lodging, transportation, or entertainment as guest: Food, lodging, transportation, or entertainment accepted as a guest will not constitute an improper gift, so long as the donor makes any reports required by law. To meet the guest exception, an event must provide an opportunity for direct contact between the host and the recipient throughout the event (e.g., a law firm that represents the district buys the board members and the superintendent dinner while the officials are attending the TASB/TASA Convention).21 A public servant who receives an unsolicited benefit that the public servant is prohibited from accepting under Section 36.08 may donate the benefit to the district or may donate the benefit to a recognized tax-exempt charitable organization formed for educational, religious, or scientific purposes.22 Acceptance of Honorarium A public servant commits an offense under Texas Penal Code section 36.07 if the public servant solicits, accepts, or agrees to accept an honorarium, whether a gift or compensation, in consideration for services that the public servant would not have been requested to provide but for the public servant’s official position or duties. This section does not prohibit a public servant from accepting transportation and lodging expenses in connection with a conference or similar event in which the public servant renders services, such as addressing an audience or engaging in a seminar, to the extent that those services are more than merely perfunctory, or from accepting meals in connection with such an event. An offense under this section is a Class A misdemeanor.23 Rebate or Gift for Textbook Selection A trustee or school district employee commits an offense if the trustee or employee receives a commission or rebate on instructional materials for use in the district. In addition, a trustee or school employee commits an offense if he accepts a gift, favor, or service that is given to the school, might reasonably tend to influence the person’s selection of instructional materials, and could not be purchased with state textbook funds. “Gift, favor, or service” does not include staff development or instructional materials.24 Reporting Gifts Occasionally, gifts to school officials from school district vendors will be legally permitted, but will have to be publicly reported. Generally this will occur when the gifts fall within exceptions to the prohibitions in the Texas Penal Code, but the dollar value of the gifts exceeds $100. State law includes two relevant reporting requirements. The first is the conflicts disclosure requirement described at Texas Local Government Code chapter 176, satisfied by filing the conflicts disclosure statement, called Form CIS. The second is the financial disclosures required under the School Financial Integrity Rating System of Texas, or School FIRST. These requirements are addressed in TASB’s eSource article, “Gifts to Public School Trustees and Employees: What You Need to Know.”25 Financial Responsibility Guide © 2015. Texas Association of School Boards, Inc. All rights reserved. 4 Conclusion The rules on receiving gifts from vendors or others interested in school business are complicated, but accepting gifts without knowing the rules could risk personal criminal liability. If you are not sure whether a gift is allowed by law, seek further legal advice or simply decline the gift. This document is provided for educational purposes only and contains information to facilitate a general understanding of the law. It is neither an exhaustive treatment of the law on this subject nor is it intended to substitute for the advice of an attorney. It is important for the recipient to consult with the district's own attorney in order to apply these legal principles to specific fact situations. Copyright © 2015 Texas Association of School Boards, Inc. All rights reserved. This document is copyrighted by TASB but may be reproduced in order to share the information within your own school district. Further use or copying is prohibited without the consent of TASB Legal Services. Requests to duplicate or distribute this document should be made in writing to Director, Legal Services, Texas Association of School Boards, P.O. Box 400, Austin, Texas 78767-0400 or by e-mailing [email protected]. Updated September 2015 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Tex. Penal Code § 1.07(a)(41)(A). See TASB Policies BBFB(LEGAL)(LOCAL) (for trustees) and DBD(LEGAL)(LOCAL) (for employees). Tex. Penal Code § 36.01(3). The Texas Ethics Commission administers and enforces laws related to campaign finance and personal financial statements. The commission may also deliver advisory opinions regarding Texas Penal Code chapter 36 on bribery, gifts, and honoraria. Tex. Gov’t Code § 571.061. Op. Tex. Ethics Comm’n Nos. 61 (1992), 36 (1992) & 118 (1993). See, e.g., Op. Tex. Ethics Comm’n Nos. No. 4 (1992) (free family passes to recreational facilities); 12 (1992) (hunting trip, including lodging and food); 64 (1992) (food and beverages at a reception); 69 (1992) (tickets to intercollegiate athletic events, as well as other tickets with a face value such as concerts, plays, and lectures); 71 (1992) (free passes to charitable golf tournament, luncheon, and post-tournament reception); 75 (1992) (use of golf and tennis facilities and parking); 94 (1992) (banquet and hotel expenses); 97 (1992) (engraved clock valued at $50); 118 (1993) (food and beverage from vendor and free ride). Smith v. State, 959 S.W.2d 1 (Tex. App.—Waco 1997, pet. ref’d) (upholding university official’s conviction for bribery for soliciting travel expenses for his spouse to join him on a trip to visit a potential vendor). Tex. Penal Code § 36.02(a)(1). Contrast Tex. Penal Code § 36.02 (prohibiting bribery with no exceptions) with Tex. Penal Code § 36.10(a)(6) (prohibiting gifts to public servants with exception for gifts valued under $50). Tex. Penal Code § 36.02(e). Op. Tex. Ethics Comm’n No. 60 (1992). Office of the Texas Attorney General, Texas Ethics, Gift & Honorarium Laws Made Easy (2012). Tex. Penal Code § 36.08(d). Tex. Penal Code § 36.08(e), (h). Tex. Penal Code § 36.10(a)(1). Tex. Penal Code § 36.10(a)(1); Op. Tex. Att’y Gen. No. GA-87 (2003) (citing Op. Tex. Ethics Comm’n No. 416 (1999)). Tex. Penal Code § 36.10(a)(2); Op. Tex. Ethics Comm’n No. 90 (1992). Tex. Penal Code § 36.02(d), .10(a)(4). Tex. Penal Code § 36.10(a)(6). Tex. Penal Code § 36.10(a)(7). Tex. Penal Code § 36.10(b); Op. Tex. Ethics Comm’n No. 69 (1992). Tex. Penal Code § 36.08(i). Tex. Penal Code § 36.07; Op. Tex. Att’y Gen. No. H-551(1975). Tex. Educ. Code § 31.152. See TASB Policy EFAA(LEGAL) (explaining the requirements pertaining to the selection and adoption of instructional materials and textbooks). www.tasb.org/Services/Legal-Services/TASB-School-LaweSource/Governance/documents/gifts_to_public_sch_trustees_and_employees_sept15.pdf. Financial Responsibility Guide © 2015. Texas Association of School Boards, Inc. All rights reserved. 5
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