Section 320.6 - Investigation of Failures to Report Conflicts of Interest(a) Any individual subject to this Chapter who becomes aware of a potential unreported conflict of interest shall immediately notify the Executive Director of the potential conflict of interest. If the potential conflict of interest is held by the Executive Director, the individual may submit the notice to the Chair.(b) An individual who is not subject to this Chapter who has a good faith belief that an individual who is subject to this Chapter has an unreported conflict of interest may submit written notice to the Executive Director of the potential conflict. If the potential conflict of interest is held by the Executive Director, the individual may submit the notice to the Chair. The written notice must provide all facts regarding the alleged conflict of interest known to the reporting individual.(c) Upon receipt of notice of a conflict under either subsection (a) or (b) of this section, the Executive Director must notify the Chair and the General Counsel. If the Chair receives the notice, the Chair shall notify the General Counsel.(d) After receiving a notice under this section, the General Counsel shall:(1) investigate the matter; and(2) provide an opinion to the Executive Director and Chair unless the alleged conflict is held by the Chair, then the opinion shall be provided to the Vice-chair instead. The opinion shall include: (A) a statement of the facts giving rise to the alleged conflict;(B) a determination of whether a conflict of interest, another impropriety, or self-dealing exists; and(C) if the opinion finds that a conflict of interest or another impropriety or self dealing exists, recommendations for any appropriate course of action.(e) After receiving the General Counsel's opinion and consulting with the member of the Board who receives notice under subsection (d) of this section, the Executive Director shall take immediate actions regarding the recusal of the individual from any discussion of or access to information regarding the matter at issue. If the alleged conflict of interest is held by the Executive Director, the Chair shall take actions to ensure the recusal of the Executive Director.(f) The Executive Director shall determine whether a conflict of interest exists involving the individual who is the subject of the investigation. If the Executive Director is alleged to hold the conflict, the Chair shall make the determination. The determination must include actions to be taken, if any, to address the conflict of interest, including reconsideration of an application. (1) The decision is final unless three or more members of the Board request that the issue be added to the agenda of the next meeting of the Board.(2) If a conflict of interest is present, the individual making the determination shall report the conflict to the Board, the Chief Compliance Officer, staff of the Commission, and General Counsel.(3) Unless specifically stated in the final determination, the validity of an action taken on an application is not affected if an individual that failed to report a conflict of interest participated in the action.10 Tex. Admin. Code § 320.6
Adopted by Texas Register, Volume 49, Number 31, August 2, 2024, TexReg 5768, eff. 8/6/2024