Sec. 305.028.  PROHIBITED CONFLICTS OF INTEREST.  (a)  In this section:
(1)  "Client" means a person or entity for which the registrant is registered or is required to be registered.
(2)  "Matter" means the subject matters for which a registrant has been reimbursed, retained, or employed by a client to communicate directly with a member of the legislative or executive branch.
(3)  "Person associated with the registrant" or "other associated person" means a partner or other person professionally associated with the registrant through a common business entity, other than a client, that reimburses, retains, or employs the registrant.
(b)  Except as permitted by Subsection (c) or (c-1), a registrant may not represent a client in communicating directly with a member of the legislative or executive branch to influence legislative subject matter or administrative action if the representation of that client:
(1)  involves a substantially related matter in which that client's interests are materially and directly adverse to the interests of:
(A)  another client of the registrant;
(B)  an employer or concern employing the registrant; or
(C)  another client of a person associated with the registrant; or
(2)  reasonably appears to be adversely limited by:
(A)  the registrant's, the employer's or concern's, or the other associated person's responsibilities to another client; or
(B)  the registrant's, employer's or concern's own interest, or other associated person's own business interests.
(c)  A registrant may represent a client in the circumstances described in Subsection (b) if:
(1)  the registrant reasonably believes the representation of each client will not be materially affected;
(2)  not later than the second business day after the date the registrant becomes aware of a conflict described by Subsection (b), the registrant provides written notice, in the manner required by the commission, to each affected client;  and
(3)  not later than the 10th day after the date the registrant becomes aware of a conflict described by Subsection (b), the registrant files with the commission a statement that:
(A)  indicates that there is a conflict;
(B)  states that the registrant has notified each affected client as required by Subdivision (2);  and
(C)  states the name and address of each affected client.
(c-1)  A registrant may represent a client in the circumstances described in Subsection (b)  without regard to whether the registrant reasonably believes the representation of each client will be materially affected if:
(1)  the registrant provides the written notice to each affected client as described by Subsection (c)(2) and files the statement described by Subsection (c)(3); and
(2)  after the registrant has provided the written notice described by Subsection (c)(2), each affected client of the registrant consents to the conflict and grants the registrant permission to continue the representation.
(d)  If a registrant has accepted representation in conflict with the restrictions of this section, or if multiple representation properly accepted becomes improper under this section, the registrant shall promptly withdraw from one or more representations to the extent necessary for any remaining representation not to be in conflict with this section.
(e)  If a registrant would be prohibited by this section from engaging in particular conduct, an employer or concern employing the registrant or a partner or other person associated with the registrant may not engage in that conduct.
(f)  In each report filed with the commission, a registrant shall, under oath, affirm that the registrant has, to the best of the registrant's knowledge, complied with this section.
(g)  The commission may receive complaints regarding a violation of this section.  If the commission determines a violation of this section has occurred, the commission, after notice and hearing:
(1)  shall impose a civil penalty in an amount not to exceed $2,000;  and
(2)  may rescind the person's registration and may prohibit the person from registering with the commission for a period not to exceed two years from the date of the rescission of the person's registration.
(h)  A penalty under this section is in addition to any other enforcement, criminal, or civil action that the commission or another person may take under this chapter or other law.
(i)  Repealed by Acts 2005, 79th Leg., Ch. 218, Sec. 3, eff. September 1, 2005.
(j)  A statement filed under Subsection (c) is not public information.
(k)  The commission may adopt rules to implement this section consistent with this chapter, the Texas Disciplinary Rules of Professional Conduct, and the common law of agency.
Added by Acts 2001, 77th Leg., ch. 1013, Sec. 1, eff. Sept. 1, 2001.  Amended by Acts 2003, 78th Leg., ch. 249, Sec. 4.08, 4.12, eff. Sept. 1, 2003;  Acts 2003, 78th Leg., ch. 1322, Sec. 1, eff. Sept. 1, 2003.
Amended by: 
Acts 2005, 79th Leg., Ch. 218 (H.B. 2202), Sec. 1, eff. September 1, 2005.
Acts 2005, 79th Leg., Ch. 218 (H.B. 2202), Sec. 3, eff. September 1, 2005.