Section 502.051 - Written Contract Required for Business Recruitment or Development(a) Except under a written contract approved by the corporation's board of directors, a corporation may not pay compensation, including a commission or fee, or another thing of value to a broker, agent, or other third party who: (1) is involved in business recruitment or development; and(2) is not an employee of the corporation.(b) A corporation that violates Subsection (a) is liable to this state for a civil penalty in an amount not to exceed $10,000.(c) The attorney general may bring an action to recover the civil penalty in a district court in Travis County or the county in which the violation occurred.Tex. Loc. Gov't. Code § 502.051
Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 3.01, eff. 4/1/2009.