Section 802.43 - Prohibition against Directly Delivering Services(a) A Board shall ensure, through the oversight and management of Board policies, that it does not directly deliver or determine eligibility for workforce services in its local workforce development area (workforce area) or contract with the following persons or entities to deliver or determine eligibility for workforce services: (2) A business, organization, or institution that a Board member represents on the Board;(3) A Board member's business, organization, or institution in which a Board member has a substantial financial interest; or(b) The prohibitions in this section do not apply to public education agencies, such as community colleges and independent school districts, that have Board members who fulfill the requirements set forth in Texas Government Code § 2308.256(a)(3)(A).(c) A Board may grant a one-year exception to the prohibitions described in subsection (a) of this section for a community-based organization that fulfills the requirements set forth in Texas Government Code § 2308.256(a)(2). The exception can be granted only by a two-thirds vote of the members present in an open meeting and cannot be granted for contracts for the operation of Workforce Solutions Offices.(d) A Board shall ensure that the Board, its members, or its employees do not directly control the daily activities of its workforce service providers. The Agency shall review a Board's compliance through an examination of the Board's exercise of direction and control over its workforce service providers. The Agency may use the factors for testing the employment status as set out in § 821.5 of this title.(e) Nothing in this section restricts a Board member or a Board member's organization from receiving Texas workforce system services and thereby being a customer of a Board's workforce service providers' services.40 Tex. Admin. Code § 802.43
The provisions of this §802.43 adopted to be effective February 7, 2011, 36 TexReg 604