Ethics: Texas' Conflict of Interest Definition

This page is intended to provide general information and does not necessarily address all aspects of this topic. Because the facts of each situation may vary, this information may need to be supplemented by consulting legal advisors. It reflects in summary form statutes/constitutional provisions/legislative chamber rules in effect as of 5/31/2008 or statutes set to take effect shortly thereafter.

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Texas' Policy Statutory Reference

GOVERNMENT CODE
TITLE 5. OPEN GOVERNMENT; ETHICS
SUBTITLE B. ETHICS
CHAPTER 572. PERSONAL FINANCIAL DISCLOSURE, STANDARDS OF CONDUCT, AND CONFLICT OF INTEREST
SUBCHAPTER A. GENERAL PROVISIONS
§ 572.005. Determination of Substantial Interest

An individual has a substantial interest in a business entity if the individual:

(1) has a controlling interest in the business entity;

(2) owns more than 10 percent of the voting interest in the business entity;

(3) owns more than $25,000 of the fair market value of the business entity;

(4) has a direct or indirect participating interest by shares, stock, or otherwise, regardless of whether voting rights are included, in more than 10 percent of the profits, proceeds, or capital gains of the business entity;

(5) is a member of the board of directors or other governing board of the business entity;

(6) serves as an elected officer of the business entity; or

(7) is an employee of the business entity.

Tex. Gov't Code § 572.005 (2007).

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Center for Ethics in Government