Texas § HS.242.0021 - CONTROLLING PERSON

§ HS.242.0021. CONTROLLING PERSON

CONTROLLING PERSON. (a) A person is a controlling person if the person has the ability, acting alone or in concert with others, to directly or indirectly influence, direct, or cause the direction of the management, expenditure of money, or policies of an institution or other person. (b) For purposes of this chapter, "controlling person" includes: (1) a management company, landlord, or other business entity that operates or contracts with others for the operation of an institution; (2) any person who is a controlling person of a management company or other business entity that operates an institution or that contracts with another person for the operation of an institution; and (3) any other individual who, because of a personal, familial, or other relationship with the owner, manager, landlord, tenant, or provider of an institution, is in a position of actual control or authority with respect to the institution, without regard to whether the individual is formally named as an owner, manager, director, officer, provider, consultant, contractor, or employee of the facility. (b-1) Notwithstanding any other provision of this section, for purposes of this chapter, a controlling person of an institution or of a management company or other business entity described by Subsection (b)(1) that is a publicly traded corporation or is controlled by a publicly traded corporation means an officer or director of the corporation. The term does not include a shareholder or lender of the publicly traded corporation. (c) A controlling person described by Subsection (b)(3) does not include a person, such as an employee, lender, secured creditor, or landlord, who does not exercise any influence or control, whether formal or actual, over the operation of an institution. (d) The executive commissioner may adopt rules that define the ownership interests and other relationships that qualify a person as a controlling person. Added by Acts 1997, 75th Leg., ch. 1159, Sec. 1.03, eff. Sept. 1, 1997. Amended by: Acts 2009, 81st Leg., R.S., Ch. 917 (H.B. 2972 ), Sec. 1, eff. September 1, 2009. Acts 2015, 84th Leg., R.S., Ch. 1 (S.B. 219 ), Sec. 3.0592, eff. April 2, 2015.