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Form 1295

Certificate of Interested Parties (Form 1295 must be filled out electronically with the Texas Ethics Commission’s online filing application, printed out, signed, and mailed to Magnolia ISD)

Magnolia ISD is required to comply with House Bill 1295, which amended the Texas Government Code by adding Section 2252.908, Disclosure of Interested Parties. Section 2252.908 prohibits Magnolia ISD from entering into a contract resulting from this procurement process (RFP, CSP, Quote, etc.) with a business entity unless the business entity submits a Certificate of Interested Parties (Form 1295) to Magnolia ISD at the time business entity submits the signed contract. The Texas Ethics Commission has adopted rules requiring the business entity to file Form 1295 electronically with the Texas Ethics Commission. The following definitions apply:

(1)”Business Entity” means an entity recognized by law through which business is conducted, including a sole proprietorship, partnership, or corporation. TEX. GOV’T CODE 2252.908(1).

(2)”Interested Party”means a person:
a) who has a controlling interest in a business entity with whom Magnolia ISD contracts; or
b) who actively participates in facilitating the contract or negotiating the terms of the contract, including a broker, intermediary, adviser, or attorney for the business entity. TEX. GOV’T CODE 2252.908(3).

(3)”Controlling interest”means:
a) an ownership interest or participating interest in a business entity by virtue of units, percentage, shares, stock, or otherwise that exceeds 10 percent;
b) membership on 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) service as an officer of a business entity that has four or fewer officers, or service as one of the four officers most highly compensated by a business entity that has more than four officers. TEX. ETHICS COMM. RULE 46.3(c).

(4)”Intermediary”means a person who actively participates in the facilitation of the contract or negotiating the contract, including a broker, adviser, attorney, or representative of or agent for the business entity who:
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. TEX. ETHICS COMM. RULE 46.3(e).

Proposers must file Form 1295 electronically with the Texas Ethics Commission using the online filing application, which can be found at Proposers must use the filing application on the Texas Ethics Commission’s website to enter the required information on Form 1295. Proposers must print a copy of the completed form, which will include a certification of filing containing a unique certification number. The Form 1295 must be signed by an authorized agent of the business entity. The completed Form 1295 with the certification of filing certificate number and signatures must be filed with Magnolia ISD by sending the completed form to the appropriate Magnolia ISD department.

Magnolia ISD must acknowledge the receipt of the filed Form 1295 by notifying the Texas Ethics Commission of the receipt of the filed Form 1295 no later than the 30th day after the date the contract binds all parties to the contract. After Magnolia ISD acknowledges the Form 1295, the Texas Ethics Commission will post the completed Form 1295 to its website within seven business days after receiving notice from Magnolia ISD.

Note: Publicly traded business entities are exempt from filing a Form 1295.