1. (a) "Contract" includes an amended, extended, or renewed contract.
2. (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.

3. (c) "Controlling interest" means:

   1. (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. (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. (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.

4. (d) "Interested party" means:

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

5. (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. (1) receives compensation from the business entity for the person's participation;
   2. (2) communicates directly with the governmental entity or state agency on behalf of the business entity regarding the contract; and
   3. (3) is not an employee of the business entity.

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.