An entity that does business with the department is required to:

1. (1) disclose to the department in writing the existence of a conflict of interest involving an agreement between the entity and the department and adequately remedy the conflict:

   1. (A) before the effective date of the agreement; or
   2. (B) if the conflict of interest arises after the effective date of the agreement, within five working days after the date that the entity knows or should have known of the conflict;
2. (2) refrain from offering, giving, or agreeing to give a benefit to a member of the commission or to a department employee;
3. (3) adhere to all civil and criminal laws related to business;
4. (4) maintain good standing with the comptroller, other state agencies, states, and agencies of the federal government with which the entity has had a business relationship;

5. (5) notify the department in writing within five working days after the date that the entity knows or should have known of the existence of, and must adequately address:

   1. (A) a conviction of, a plea of guilty or nolo contendere to, a civil judgment for or a public admission to a crime or offense related to business by the entity;
   2. (B) debarment of the entity by the comptroller, another state agency, another state, or an agency of the federal government for a ground related to business integrity; or

   3. (C) any behavior of the entity that seriously and directly affects the entity's responsibility to the department and that is also a violation of:

      1. (i) the law; or
      2. (ii) the department's rules that relate to the entity's dealing with the department.

Source Note:The provisions of this §10.101 adopted to be effective January 6, 2011, 35 TexReg 11951.