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RULE §46.3Definitions

(a) "Contract" means a contract between a governmental entity or state agency and a business entity at the time it is voted on by the governing body or at the time it binds the governmental entity or state agency, whichever is earlier, and includes an amended, extended, or renewed contract.

(b) "Business entity" includes an entity through which business is conducted with a governmental entity or state agency, regardless of whether the entity is a for-profit or nonprofit entity. The term does not include a governmental entity or state agency.

(c) "Controlling interest" means:

  (1) an ownership interest or participating interest in a business entity by virtue of units, percentage, shares, stock, or otherwise that exceeds 10 percent;

  (2) membership on the board of directors or other governing body of a business entity of which the board or other governing body is composed of not more than 10 members; or

  (3) service as an officer of a business entity that has four or fewer officers, or service as one of the four officers most highly compensated by a business entity that has more than four officers. This paragraph does not apply to an officer of a publicly held business entity or its wholly owned subsidiaries.

(d) "Interested party" means:

  (1) a person who has a controlling interest in a business entity with whom a governmental entity or state agency contracts; or

  (2) an intermediary.

(e) "Intermediary," for purposes of this rule, means, a person who actively participates in the facilitation of the contract or negotiating the contract, including a broker, adviser, attorney, or representative of or agent for the business entity who:

  (1) receives compensation from the business entity for the person's participation;

  (2) communicates directly with the governmental entity or state agency on behalf of the business entity regarding the contract; and

  (3) is not an employee of the business entity or of an entity with a controlling interest in the business entity.

(f) "Signed" includes any symbol executed or adopted by a person with present intention to authenticate a writing, including an electronic signature.

(g) "Value" of a contract is based on the amount of consideration received or to be received by the business entity from the governmental entity or state agency under the contract.

Source Note: The provisions of this §46.3 adopted to be effective December 24, 2015, 40 TexReg 9113; amended to be effective May 2, 2016, 41 TexReg 3094; amended to be effective June 22, 2016, 41 TexReg 4431

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