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eXpendit

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Contract Expenditures — Former or Retired State Employees
Contracting with Former Employees of Regulatory Agencies

A former state officer or employee of a state regulatory agency may not provide services for compensation on a particular matter in which the employee participated while with the state agency. However, this “revolving door” provision does not prohibit the former state employee from working for employers they were familiar with in the course of their state employment.

Exception

The prohibition does not prevent a former state officer or employee of a regulatory agency from being an independent contractor of that agency.

Example

A state employee at the Texas Commission on Environmental Quality (TCEQ) is assigned to monitor the approval of applications for a TCEQ program. A year later that same employee is no longer employed with TCEQ and is an independent contractor for that same TCEQ program. The exception would apply in this case and the contractor would not be in violation.

See also: Consulting Services, Professional Services, Contracting with Former or Retired State Employees.

Sources [+]

Texas Government Code Sections 572.054(b)–(h) and 572.002(8), (12). See Opinion of Texas Ethics Commission NOS. 364, 353, 285, 232, 229, 212,167.

Definitions:

Independent contractor
A person who contracts to perform work or provide a service for the benefit of another and who ordinarily:
  • Acts as the employer of any employee of the contractor by paying wages, directing activities, and performing other similar functions characteristic of an employer-employee relationship.
  • Is free to determine the manner in which the work or service is performed, including the hours of labor or method of payment to any employee.
  • Is required to furnish or to have employees, if any, furnish necessary tools, supplies or materials to perform the work or service.
  • Possesses the skills required for the specific work or service. (Texas Labor Code 406.121(2))
Participated
To have taken action as an officer or employee through decision, approval, disapproval, recommendation, giving advice, investigation or similar action. (Texas Government Code 572.054(h))
Particular matter
A specific investigation, application, request for a ruling or determination, rulemaking proceeding, contract, claim, charge, accusation, arrest or judicial or other proceeding. (Texas Government Code 572.054(h))
Regulatory agency
Any department, commission, board or other agency that:
  • Is in the executive branch of state government,
  • Has authority not limited to a geographical portion of this state,
  • Was created by the Texas Constitution or a statute of this state, and
  • Has constitutional or statutory authority to engage in regulation. (Texas Government Code 572.002(8))
State officer
An elected officer, an appointed officer, a salaried appointed officer, an appointed officer of a major state agency or the executive head of a state agency. (Texas Government Code 572.002(12))