Tex. Loc. Gov't Code § 502.051 · Subchapter B. CORPORATE POWERS AND LIMITATIONS
WRITTEN CONTRACT REQUIRED FOR BUSINESS RECRUITMENT OR DEVELOPMENT.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) Except under a written contract approved by the corporation's board of directors, a corporation may not pay compensation, including a commission or fee, or another thing of value to a broker, agent, or other third party who:
(1) is involved in business recruitment or development; and
(2) is not an employee of the corporation.
(b) A corporation that violates Subsection (a) is liable to this state for a civil penalty in an amount not to exceed $10,000.
(c) The attorney general may bring an action to recover the civil penalty in a district court in Travis County or the county in which the violation occurred.
Notes and commentary — not statutory text
History
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/LG/htm/LG.502.htm
- Text hash
- sha256 b1432bb049e8be81686a327e71d1149920ac7d75d7832ea48ac63c78472f0ce0
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.