Texas Administrative Code › Title 40 - SOCIAL SERVICES AND ASSISTANCE › Part 20 - TEXAS WORKFORCE COMMISSION › Chapter 802 - INTEGRITY OF THE TEXAS WORKFORCE SYSTEM › Subchapter C - LOCAL WORKFORCE DEVELOPMENT BOARD RESTRICTIONS › Section 802.41 - Board Member Conflicts of Interest

Current through Reg. 49, No. 28; July 12, 2024
(a)
				  Pursuant to WIA §117(g) (29 U.S.C.A.
				  §2832(g)), this section
				  sets forth the state's Board conflict of interest requirements for disclosure
				  and declaration of a conflict of interest by a Board member.
(b) A Board member may not vote on any matter
				  that would provide direct financial benefit to the member or the member's
				  immediate family, or on matters of the provision of services by the member or
				  the entity the member represents. No Board member may participate in a decision
				  in which the member has a direct or indirect interest, particularly a financial
				  interest, which is in substantial conflict with the discharge of the duties of
				  the Board.
(c) A Board member shall
				  avoid even the appearance of a conflict of interest. Prior to taking office,
				  Board members must provide to the Board Chair a written declaration of all
				  substantial business interests or relationships they, or their immediate
				  families, have with all businesses or organizations that have received,
				  currently receive, or are likely to receive contracts or funding from the
				  Board. Such declarations shall be updated within 30 days to reflect any changes
				  in such business interests or relationships. The Board shall appoint an
				  individual to timely review the disclosure information and advise the Board
				  Chair and appropriate members of potential conflicts.
(d) Prior to a discussion, vote, or decision
				  on any matter before a Board, if a member, or a person in the immediate family
				  of such member, has a substantial interest in or relationship to a business
				  entity, organization, or property that would be pecuniarily affected by any
				  official Board action, that member shall disclose the nature and extent of the
				  interest or relationship and shall abstain from voting on or in any other way
				  participating in the decision on the matter. All such abstentions shall be
				  recorded in the minutes of the Board meeting.
(e) Each Board must include in its
				  organizational plan or bylaws, or in a separate code of conduct, provisions for
				  penalties, sanctions, or other disciplinary actions for any direct violations
				  of the Board conflict of interest policy. The following definitions must be
				  incorporated into those provisions.
(1)
				  Immediate family--Any person related within the first degree of affinity
				  (marriage) or consanguinity (blood) to the person involved.
(2) Substantial interest--A person has a
				  substantial interest:
(A) in a business
				  entity if:
(i) the person owns 10 percent or
				  more of the voting stock or shares of the business, owns 10 percent or more, or
				  owns $5,000 or more, of the fair market value of a business; or
(ii) funds received by the person from the
				  business exceed 10 percent of the person's gross income for the previous
				  year;
(B) in real
				  property if the interest is an equitable or legal ownership with a fair market
				  value of $2,500 or more; or
(C) if
				  the Board member is related to a person in the first degree of affinity or
				  consanguinity who has a substantial interest as defined in subparagraph (A) or
				  (B) of this paragraph.