Sec. 103.004.  RESTRICTIONS ON COUNCIL APPOINTMENT, MEMBERSHIP, OR EMPLOYMENT.  (a)  A person is not eligible for appointment or service as a citizen member if the person or the person's spouse:
(1)  is employed by or participates in the management of a business entity or other organization receiving funds at the council's direction; 
(2)  owns or controls directly or indirectly more than a 10 percent interest in a business entity or other organization receiving funds at the council's direction;  or
(3)  uses or receives a substantial amount of tangible goods, services, or funds from the department at the council's direction, other than compensation or reimbursement authorized by law for council membership, attendance, or expenses.
(b)  A person who is required to register as a lobbyist under Chapter 305, Government Code, may not serve as a member of the council or act as the general counsel.
(c)  An officer, employee, or paid consultant of a trade association in the field of health care may not be a member or employee of the council.  A person who is the spouse of an officer, employee, or paid consultant of a trade association in the field of health care may not be a member of the council and may not be an employee, including an employee exempt from the state's position classification plan, who is compensated at or above the amount prescribed by the General Appropriations Act for step 1, salary group 17, of the position classification salary schedule.
(d)  For purposes of Subsection (c), a trade association is a nonprofit, cooperative, and voluntary association of business or professional competitors designed to assist its members and its industry or profession in dealing with mutual business or professional problems and in promoting their common interests.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.