Texas Government Code 481.0042 – Conflict of Interest
(a) A person may not be the executive director or an employee of the office employed in a “bona fide executive, administrative, or professional capacity,” as that phrase is used for purposes of establishing an exemption to the overtime provisions of the federal Fair Labor Standards Act of 1938 (29 U.S.C. § 201 et seq.), and its subsequent amendments, if the person:
(1) is employed by, participates in the management of, or is a paid consultant of a business entity that contracts with the office;
(2) owns or controls, directly or indirectly, more than a 10 percent interest in a business entity or other organization that contracts with the office;
(3) uses or receives a substantial amount of tangible goods, services, or funds from the office, other than compensation or reimbursement authorized by law for employee salaries and benefits; or
(4) is an officer, employee, or paid consultant of a trade association of businesses in the field of economic development or tourism or that contracts with the office.
(b) A person may not be the executive director or an employee of the office if the person’s spouse:
(1) is employed by, participates in the management of, or is a paid consultant of a business entity that contracts with the office;
(2) owns or controls, directly or indirectly, more than a 10 percent interest in a business entity or other organization that contracts with the office;
(3) uses or receives a substantial amount of tangible goods, services, or funds from the office; or
(4) is an officer, manager, or paid consultant of a trade association of businesses in the field of economic development or tourism or that contracts with the office.
Terms Used In Texas Government Code 481.0042
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
(c) For the purposes of this section, a trade association is a nonprofit, cooperative, and voluntarily joined association of business or professional competitors in this state designed to assist its members and its industry or profession in dealing with mutual business or professional problems and in promoting their common interest.
(d) For the purposes of this section, a business entity is a sole proprietorship, partnership, firm, corporation, holding company, joint stock company, receivership, trust, or any other entity recognized in law through which business for profit is conducted.
(e) A person may not be the executive director or an employee of the office if the person is required to register as a lobbyist under Chapter 305 because of the person’s activities for compensation on behalf of a business entity that has an interest in a contract with the office or a profession related to the operation of the office.
(f) A person may not act as the general counsel to the office if the person is required to register as a lobbyist under Chapter 305 because of the person’s activities for compensation on behalf of a profession related to the operation of the office.