(a) A person is not eligible for appointment as a commissioner or executive director of the commission if:
(1) the person serves on the board of directors of a company that supplies fuel, utility-related services, or utility-related products to regulated or unregulated electric or telecommunications utilities; or
(2) the person or the person's spouse:
(A) is employed by or participates in the management of a business entity or other organization that is regulated by or receives funds from the commission;
(B) directly or indirectly owns or controls more than a 10 percent interest in:
(i) a business entity or other organization that is regulated by or receives funds from the commission; or
(ii) a utility competitor, utility supplier, or other entity affected by a commission decision in a manner other than by the setting of rates for that class of customer;
(C) uses or receives a substantial amount of tangible goods, services, or funds from the commission, other than compensation or reimbursement authorized by law for commission membership, attendance, or expenses; or
(D) notwithstanding Paragraph (B), has an interest in a mutual fund or retirement fund in which more than 10 percent of the fund's holdings at the time of appointment is in a single utility, utility competitor, or utility supplier in this state and the person does not disclose this information to the governor, senate, commission, or other entity, as appropriate.
(b) A person otherwise ineligible because of Subsection (a)(2)(B) may be appointed to the commission and serve as a commissioner or may be employed as executive director if the person:
(1) notifies the attorney general and commission that the person is ineligible because of Subsection (a)(2)(B); and
(2) divests the person or the person's spouse of the ownership or control:
(A) before beginning service or employment; or
(B) if the person is already serving or employed, within a reasonable time.