Kristen Fancher

1. CONTRACTING DISCLOSURE
REQUIREMENTS & GROUNDWATER
LEASING CASE UPDATE
KristenFancher
May 19, 2016
TAGD Business Meeting
Legal Issues Panel

2. New Contracting Disclosure
Requirements
• HB 1295 (2015)
• Adds Section 2252.908 to Government Code
• Applies to special-purpose districts like GCDs
• Applies to most contracts with business entities
after Jan. 1, 2016

3. New Contracting Disclosure
Requirements
• Administered by Texas Ethics Commission

4. New Contracting Disclosure
Requirements
• Business entity must submit Form 1295 if the
contract:
1. Requires action or vote by the governing body; or
2. Has a value of > $1 million
• Requires gov’t entity to log into system and
acknowledge receipt of form
• Must be done no later than 30 days from the date the
contract binds the parties

5. General Overview
ContractingDisclosure
GCD to acknowledge receipt within 30 days of
effective date or contract is void
Most of work on the other party to file form
Most GCD contracts require compliance

6. Update on Groundwater Lease Case
City of Altus v. Spears
• 2015 federal case
• Recently became a final decision
• Spears won—groundwater lease considered
terminable-at-will
• Also won on payment issue

7. General Overview
Cityof Altus v. Spears
Helpful for confirming term of lease (beneficial use
consideration in 36.113)
Recital provisions are important (“Whereas....”)
Provides a good overview of Texas law re:
construction of groundwater lease terms

8. QUESTIONS?
KRISTEN O.FANCHER
SMITH ROBERTSON ELLIOTT &DOUGLAS,L.L.P.
221W.6TH STREET,SUITE 1100
AUSTIN,TEXAS 78701
512-225-1705
KFANCHER@SMITH-ROBERTSON.COM