For the purposes of this chapter, a conflict of interest is a circumstance arising out of existing or past activities, business interests, contractual relationships, or organizational structure of an entity, or a familial or domestic living relationship between a department employee and an employee of the entity, and because of which:

1. (1) the entity's objectivity in performing the scope of work sought by the department is or might be affected; or
2. (2) the entity's performance of services on behalf of the department or participation in an agreement with the department provides or may reasonably appear to provide an unfair competitive advantage to the entity or to a third party.

Source Note:The provisions of this §10.6 adopted to be effective January 6, 2011, 35 TexReg 11951.