Tex. Gov't Code Section 305.022
Contingent Fees


(a)

A person may not retain or employ another person to influence legislation or administrative action for compensation that is totally or partially contingent on the passage or defeat of any legislation, the governor’s approval or veto of any legislation, or the outcome of any administrative action.

(b)

A person may not accept any employment or render any service to influence legislation or administrative action for compensation contingent on the passage or defeat of any legislation, the governor’s approval or veto of any legislation, or the outcome of any administrative action.

(c)

For purposes of this chapter:

(1)

A sales commission payable to an employee of a vendor of a product or service is not considered compensation contingent on the outcome of administrative action if the amount of the state agency purchasing decision does not exceed 10 million dollars.

(2)

A quarterly or annual compensation performance bonus payable to an employee of a vendor of a product or service is not considered compensation contingent on the outcome of administrative action.

(c-1)

Repealed by Acts 2015, 84th Leg., R.S., Ch. 815 , Sec. 2, eff. September 1, 2015.

(c-2)

For purposes of this chapter, a commission or fee paid to a person by a state agency is not considered compensation contingent on the outcome of an administrative action if the person paid a commission or a fee by a state agency:

(1)

is a registrant who reports the state agency as a client under this chapter; and

(2)

reports the full amount of the commission or fee in the manner required by commission rule.

(c-3)

Repealed by Acts 2015, 84th Leg., R.S., Ch. 815 , Sec. 2, eff. September 1, 2015.

(d)

This section does not prohibit the payment or acceptance of contingent fees:

(1)

expressly authorized by other law; or

(2)

for legal representation before state administrative agencies in contested hearings or similar adversarial proceedings prescribed by law or administrative rules.

(e)

For purposes of this section, the term “employee” means a person employed full-time by an employer to perform services for compensation. The term does not include an independent contractor or consultant.

(f)

The provisions of this chapter shall not be applicable to a transaction for the sale, lease, or services provided in connection with the sale or lease of any real properties or real properties interest owned or managed by the permanent school fund or General Land Office.
Acts 1985, 69th Leg., ch. 479, Sec. 1, eff. Sept. 1, 1985. Amended by Acts 1991, 72nd Leg., ch. 304, Sec. 2.13, eff. Jan. 1, 1992.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1174 (H.B. 3445), Sec. 4, eff. September 1, 2009.
Acts 2015, 84th Leg., R.S., Ch. 815 (H.B. 3517), Sec. 2, eff. September 1, 2015.

Source: Section 305.022 — Contingent Fees, https://statutes.­capitol.­texas.­gov/Docs/GV/htm/GV.­305.­htm#305.­022 (accessed Apr. 13, 2024).

Accessed:
Apr. 13, 2024

§ 305.022’s source at texas​.gov