Texas Utilities Code - Section 12.152. Conflict Of Interest

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§ 12.152. CONFLICT OF INTEREST.  (a) A person is not 
eligible for appointment as a commissioner or executive director of 
the commission if:
		(1)  the person serves on the board of directors of a 
company that supplies fuel, utility-related services, or 
utility-related products to regulated or unregulated electric or 
telecommunications utilities;  or
		(2)  the person or the person's spouse:                                       
			(A)  is employed by or participates in the 
management of a business entity or other organization that is 
regulated by or receives funds from the commission;
			(B)  directly or indirectly owns or controls more 
than a 10 percent interest or a pecuniary interest with a value 
exceeding $10,000 in:
				(i)  a business entity or other organization 
that is regulated by or receives funds from the commission;  or
				(ii)  a utility competitor, utility 
supplier, or other entity affected by a commission decision in a 
manner other than by the setting of rates for that class of 
customer;
			(C)  uses or receives a substantial amount of 
tangible goods, services, or funds from the commission, other than 
compensation or reimbursement authorized by law for commission 
membership, attendance, or expenses;  or
			(D)  notwithstanding Paragraph (B), has an 
interest in a mutual fund or retirement fund in which more than 10 
percent of the fund's holdings at the time of appointment is in a 
single utility, utility competitor, or utility supplier in this 
state and the person does not disclose this information to the 
governor, senate, commission, or other entity, as appropriate.
	(b)  A person otherwise ineligible because of Subsection 
(a)(2)(B) may be appointed to the commission and serve as a 
commissioner or may be employed as executive director if the 
person:
		(1)  notifies the attorney general and commission that 
the person is ineligible because of Subsection (a)(2)(B);  and
		(2)  divests the person or the person's spouse of the 
ownership or control: 
			(A)  before beginning service or employment;  or                             
			(B)  if the person is already serving or employed, 
within a reasonable time.

Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept 1, 1997.  Amended by 
Acts 1999, 76th Leg., ch. 405, § 4, eff. Sept. 1, 1999.

Last modified: August 10, 2007