This section bars certain office executives, employees, and the general counsel from serving if they or their spouses have specified ties to contracting businesses, trade associations, or lobbyist registration.
Sec. 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. Section 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. (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. Added by Acts 1991, 72nd Leg., 2nd C.S., ch. 11, Sec. 3, eff. Sept. 1, 1991. Amended by Acts 1993, 73rd Leg., ch. 986, Sec. 4, eff. Sept. 1, 1993; Acts 1997, 75th Leg., ch. 1041, Sec. 7, eff. Sept. 1, 1997; Acts 2003, 78th Leg., ch. 814, Sec. 1.05, eff. Sept. 1, 2003.