1. (a) Two or more entities are affiliated if:

   1. (1) the entities share common officers, directors, or controlling stockholders;
   2. (2) a family member of an officer, director, or controlling stockholder of one entity serves in a similar capacity in another of the entities;
   3. (3) an individual who has an interest in, or controls a part of, one entity either directly or indirectly also has an interest in, or controls a part of, another of the entities;
   4. (4) the entities are so closely connected or associated that one of the entities, either directly or indirectly, controls or has the power to control another entity;
   5. (5) one entity controls or has the power to control another of the entities; or
   6. (6) the entities are closely allied through an established course of dealings, including but not limited to the lending of financial assistance.
2. (b) In this section, an individual's family member is the individual's spouse, child, child's spouse, parent, parent's spouse, step-parent, step-parent's spouse, sibling, sibling's spouse, uncle, uncle's spouse, aunt, aunt's spouse, first cousin, first cousin's spouse, the individual's grandchild, the individual's grandparent, the individual's spouse's child or the individual's spouse's child's spouse.

Source Note:The provisions of this §9.27 adopted to be effective May 15, 2024, 49 TexReg 3373.