City Attorney Darren Coker told viewers that Pearland enforces a three‑tier approach to conduct for elected officials — council rules, state law and a local ethics ordinance — and that the local rules in some respects are stricter than the state baseline.

Coker said state law (Texas Local Government Code chapter 171) treats a "substantial interest" as, for example, owning 10% of a company or deriving 10% of one’s gross income from it. "If that substantial interest exists, it's the responsibility of that council member to... file an affidavit that you have a conflict interest," he said, and to remove themselves from the meeting so other council members may deliberate.

The city’s ethics ordinance (referred to in the meeting as ordinance 16 42) adds an extra layer: if a council member recuses because of an interest, approval of the associated contract must receive a three‑quarters vote of those council members present, and the council must make a finding that the contract is the lowest responsible bid and is in the city's financial interest.

Coker also explained procurement law under Local Government Code chapter 252: staff prepares specifications and solicits competitive sealed bids (which are generally awarded to the lowest responsible bidder) or competitive sealed proposals (weighted, best‑value selection). He warned that failing to award a contract to the lowest responsible bidder can expose the council to a Class B misdemeanor under state/local law.

Mayor Mary Cole added that the city posts conflict and campaign finance disclosures online so the public can access them without filing an open‑records request; she noted she had filed and posted her own recent disclosures as an example of the transparency practice.

City staff said the city also requires additional disclosure when a council member has done business with a vendor and paid more than a specified threshold (cited in the meeting as about $10,000–$12,000 in the prior 12 months), even if that relationship does not meet the state’s "substantial interest" threshold.