Tex. Local Government Code § 502.051
WRITTEN CONTRACT REQUIRED FOR BUSINESS RECRUITMENT OR DEVELOPMENT
Texas · Texas Local Government Code · Status: effective
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- Citation
- Tex. Local Government Code § 502.051, WRITTEN CONTRACT REQUIRED FOR BUSINESS RECRUITMENT OR DEVELOPMENT, Texas, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/694084
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Full text
(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.