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A-3.3. Conflict of Interest

  1. A conflict of interest may occur when a Board member can derive a personal benefit from actions or decisions made in their official capacity on the Board.
  2. Persons appointed to the Board must be free of personal financial interests and relationships that may present a conflict of interest with Board duties. A conflict of interest may exist whenever a Board member or their family member or relative has:
    1. A contractual relationship/financial relationship with or an ownership interest or other interest in a manufacturer/labeler, pharmacy benefits manager (PBM), or an entity HHSC has engaged to assist in developing the preferred drug lists or in administering the Board;
    2. A contractual relationship/financial relationship with a company, such as accepting employment or subcontracting with a manufacturer/labeler;
    3. A financial interest in an actual or proposed transaction or arrangement that may be of some business interest to HHSC or its affiliated organizations;
    4. Received direct or indirect payments or other transfers of value, gifts, compensation, royalties, rewards, or other goods or services valued at over $500 from a manufacturer/labeler with a financial interest in the outcome of a matter; or
    5. Other interests conflicting or interfering with the Board member's ability to perform their duties on the Board.
  3. Persons appointed to the Board must not knowingly do any of the following while serving as a Board member. These prohibitions also apply to the Board member's family members or relatives.
    1. Accept honoraria;
    2. Solicit, accept, or agree to accept any personal benefit that might reasonably tend to influence the Board member in the discharge of their official duties on the Board; or
    3. Solicit, accept, or agree to accept any personal benefit for having exercised his or her official powers or duties in favor of another person.
  4. Board members participating in a conference or meeting as presenters or panelists may accept reimbursement for actual travel, lodging, and meal expenses per the General Services Administration reimbursement rates.