{"data":{"id":"us-tx/tex.-local-government-code-502.051","jurisdiction":"us-tx","citation":"Tex. Local Government Code § 502.051","heading":"WRITTEN CONTRACT REQUIRED FOR BUSINESS RECRUITMENT OR DEVELOPMENT.","body":"(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:\n(1) is involved in business recruitment or development; and\n(2) is not an employee of the corporation.\n(b) A corporation that violates Subsection (a) is liable to this state for a civil penalty in an amount not to exceed $10,000.\n(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.\nAdded by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009.","path":["LOCAL GOVERNMENT CODE","TITLE 12. PLANNING AND DEVELOPMENT","SUBTITLE C1. ADDITIONAL PLANNING AND DEVELOPMENT PROVISIONS APPLYING TO MORE THAN ONE TYPE OF LOCAL GOVERNMENT","CHAPTER 502. PROVISIONS APPLICABLE TO TYPE A AND TYPE B CORPORATIONS","SUBCHAPTER B. CORPORATE POWERS AND LIMITATIONS"],"source_url":"https://statutes.capitol.texas.gov/Docs/LG/htm/LG.502.htm#502.051","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:47:27Z","sha256":"914027b4804cf6b06ebd715b49cf664a0171de5dda20f0975aab336d0ed87929","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-local-government-code-502.001","next":"us-tx/tex.-local-government-code-502.052"},"notice":"GroundRules: Original legal text. Not legal advice."}