Amend SB 365 by striking SECTION 3 of the bill (introduced version, page 4, lines 6-27 and page 5, lines 1-25) and substituting a new SECTION 3 to read as follows: SECTION 3. Section 2054.022, Government Code, is amended to read as follows: Sec. 2054.022. CONFLICT OF INTEREST. (a) A member of the board or an employee of the department may not: (1) be a person required to register as a lobbyist under Chapter 305 because of the person's activities for compensation on behalf of a business entity that has, or on behalf of a trade association of business entities that have, a substantial interest in the information resources technologies industry; (2) be an officer, employee, or paid consultant of a business entity that has, or of a trade association of business entities that have, a substantial interest in the information resources technologies industry and that may contract with state government; (3) own, control, or have, directly or indirectly, more than a 10 percent interest in a business entity that has a substantial interest in the information resources technologies industry and that may contract with state government; (4) receive more than 25 percent of the individual's income from a business entity that has a substantial interest in the information resources technologies industry and that may contract with state government; (5) be interested in or connected with a contract or bid for furnishing a state agency with information resources technologies; (6) be employed by a state agency as a consultant on information resources technologies; or (7) accept or receive money or another thing of value from an individual, firm, or corporation to whom a contract may be awarded, directly or indirectly, by rebate, gift, or otherwise. (b) A person who is the spouse of an officer, employee, or paid consultant of a business entity that has, or of a trade association of business entities that have, a substantial interest in the information resources technologies industry and that may contract with state government may not be: (1) a member of the board; or (2) an employee of the department who: (A) is exempt from the state's position classification plan; or (B) is compensated at or above the amount prescribed by the General Appropriations Act for step 1, salary group 17, of the position classification salary schedule. (c) For the purposes of this section, a trade association is a nonprofit, cooperative, and voluntarily joined association of business or professional competitors in this state designed to assist its members and its industry or profession in dealing with mutual business or professional problems and in promoting their common interest. (d) The executive director shall dismiss an employee of the department who violates a prohibition under Subsection (a), and the board shall remove the executive director if the executive director violates a prohibition under Subsection (a).