81R5994 MTB-D
By: Zaffirini S.B. No. 1805
A BILL TO BE ENTITLED
AN ACT
relating to contracting issues of state agencies, including ethics
issues related to state contracting.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 322.020, Government Code, is amended by
amending Subsections (b), (c), and (e) and adding Subsection (g) to
read as follows:
(b) Each state agency shall provide the Legislative Budget
Board:
(1) copies of the following documents:
(A) [(1)] each major contract entered into by the
agency; and
(B) [(2)] each request for proposal, invitation
to bid, or comparable solicitation related to the major contract;
and
(2) information regarding each major contract entered
into by the agency, including:
(A) the name of the contractor;
(B) the contract value;
(C) the beginning date and end date of the
contract;
(D) a description of any amendments made to the
contract;
(E) cumulative payments and encumbrances under
the contract;
(F) key contract terms that are out of compliance
in terms of timeliness standards; and
(G) any other information that the board
considers necessary.
(c) The Legislative Budget Board shall post on the Internet:
(1) each major contract of a state agency; [and]
(2) each request for proposal, invitation to bid, or
comparable solicitation related to the major contract; and
(3) information provided to the board under Subsection
(b)(2) regarding a major contract.
(e) The Legislative Budget Board shall make the information
searchable by contract value, state agency, [and] vendor, and date,
including both the beginning date and the end date of the contract.
The Legislative Budget Board may make the information searchable by
other subjects as appropriate.
(g) The Legislative Budget Board shall set appropriate
criteria to determine when and what information should be updated.
SECTION 2. Section 2113.102(a), Government Code, is amended
to read as follows:
(a) A state agency may not use appropriated money to
contract with a person to audit [the financial records or accounts
of] the agency except:
(1) as provided by[:
[(1)] Subsections (b), (c), and (d); and
(2) in accordance with Section 321.020 [Chapter 466,
pertaining to the state lottery;
[(3) Chapter 2306, pertaining to the Texas Department
of Housing and Community Affairs; and
[(4) Chapter 361, Transportation Code, pertaining to
the Texas Turnpike Authority division of the Texas Department of
Transportation].
SECTION 3. Section 2162.103(a), Government Code, is amended
to read as follows:
(a) In comparing the cost of providing a service, the
council shall consider the:
(1) cost of supervising the work of a private
contractor; [and]
(2) cost of a state agency's performance of the
service, including:
(A) the costs of the comptroller, attorney
general, and other support agencies; and
(B) other indirect costs related to the agency's
performance of the service;
(3) installation costs and any other initial costs
associated with a contract with a private contractor;
(4) other costs associated with the transition to
using a private contractor's goods or services; and
(5) cost savings to the state if a private contractor
were awarded the contract.
SECTION 4. Section 2262.001, Government Code, is amended by
amending Subdivisions (3) and (4) and adding Subdivision (3-a) to
read as follows:
(3) "Contract manager" means a person who:
(A) is employed by a state agency; and
(B) has significant contract management duties
for the state agency[, as determined by the agency in consultation
with the state auditor].
(3-a) "Executive director" means the administrative
head of a state agency.
(4) "Major contract" means a contract, including a
renewal of a contract, that has a value of at least $1 million.
SECTION 5. Subchapter A, Chapter 2262, Government Code, is
amended by adding Section 2262.0015 to read as follows:
Sec. 2262.0015. APPLICABILITY TO CERTAIN CONTRACTS. (a)
The comptroller by rule shall establish threshold requirements that
exclude small or routine contracts, including purchase orders, from
the application of this chapter.
(b) This chapter does not apply to an enrollment contract
described by 1 T.A.C. Section 391.183 as that section existed on
November 1, 2007.
SECTION 6. The heading to Section 2262.053, Government
Code, is amended to read as follows:
Sec. 2262.053. TRAINING FOR CONTRACT MANAGERS.
SECTION 7. Section 2262.053, Government Code, is amended by
amending Subsections (a) and (d) and adding Subsections (e), (f),
and (g) to read as follows:
(a) In coordination with the [comptroller,] Department of
Information Resources, [and] state auditor, and Health and Human
Services Commission, the comptroller or a private vendor selected
by the comptroller [commission] shall develop [or administer] a
training program for contract managers.
(d) The comptroller [Texas Building and Procurement
Commission] shall administer the training program under this
section.
(e) The comptroller shall certify contract managers who
have completed the contract management training required under this
section and keep a list of those contract managers.
(f) The program developed under this section must include a
separate class on ethics and contracting.
(g) A state agency or educational entity may develop
qualified contract manager training to supplement the training
required under this section. The comptroller may incorporate the
training developed by the agency or entity into the training
program under this section.
SECTION 8. Subchapter B, Chapter 2262, Government Code, is
amended by adding Section 2262.0535 and Sections 2262.055 through
2262.066 to read as follows:
Sec. 2262.0535. TRAINING FOR GOVERNING BODIES. (a) The
comptroller or a private vendor selected by the comptroller shall
adapt the program developed under Section 2262.053 to develop an
abbreviated program for training the members of the governing
bodies of state agencies. The training may be provided together
with other required training for members of state agency governing
bodies.
(b) All members of the governing body of a state agency
shall complete at least one course of the training developed under
this section. This subsection does not apply to a state agency that
does not enter into any contracts.
Sec. 2262.055. FEES FOR TRAINING. The comptroller shall
set and collect a fee from state agencies that receive training
under this subchapter in an amount that recovers the comptroller's
costs for the training.
Sec. 2262.056. STATE AGENCY REPOSITORY. Each state agency
shall maintain in a central location all contracts for that agency.
Sec. 2262.057. REPORTING CONTRACTOR PERFORMANCE. (a)
After a contract is completed or otherwise terminated, each state
agency shall review the contractor's performance under the
contract.
(b) Using the forms developed by the team under Sections
2262.104 and 2262.105, the state agency shall report to the
comptroller on the results of the review regarding the contractor's
performance under the contract.
Sec. 2262.058. CONTRACTOR PERFORMANCE DATABASE. (a) The
comptroller shall store in a database contractor performance
reviews as provided by this section.
(b) The comptroller shall evaluate the contractor's
performance based on the information reported under Section
2262.057 and criteria established by the comptroller.
(c) The comptroller shall establish an evaluation process
that allows vendors who receive an unfavorable performance review
to protest any classification given by the comptroller.
(d) The comptroller shall develop a database that
incorporates the performance reviews and aggregates the reviews for
each contractor.
(e) A state agency may use the performance review database
to determine whether to award a contract to a contractor reviewed in
the database.
Sec. 2262.059. EXCLUDING CONTRACTOR FROM SOLICITATION
PROCESS. Based on its own contractor performance reviews and on
information in the database developed under Section 2262.058, a
state agency may exclude a contractor from the solicitation process
for a contract if the agency determines the contractor has
performed poorly on a previous state contract without regard to
whether the contractor has been barred under Section 2155.077.
Sec. 2262.060. PERFORMANCE MEASURES; REPORTS. (a) Each
state agency shall develop a plan for incorporating performance
measures into all contracts entered into by the agency. This
includes ensuring that performance measures are written into each
contract prior to execution.
(b) Not later than March 1 of each year, each state agency
shall report to the team, governor, lieutenant governor, and
speaker of the house of representatives regarding performance
measures in the agency's contracts. The report must describe the
agency's efforts to include performance-based provisions in the
agency's contracts.
(c) The state agency shall make the report accessible to the
public on the agency's website.
Sec. 2262.061. CONTRACT MANAGERS. (a) Each state agency
that enters into contracts other than interagency contracts shall
establish a career ladder program for contract management in the
agency.
(b) An employee hired as a contract manager may engage in
procurement planning, contract solicitation, contract formation,
price establishment, and other contract activities.
(c) Each state agency shall determine, in consultation with
the state auditor, the amount and significance of contract
management duties sufficient for an employee to be considered a
contract manager under this chapter.
Sec. 2262.062. APPROVAL OF CONTRACTS. (a) Each state
agency shall establish formal guidelines regarding who may approve
a contract for the agency.
(b) Each state agency shall adopt administrative rules to
establish a monetary threshold above which agency contracts and
amendments to or extensions of agency contracts require written
authorization by the agency executive director.
(c) For state agency contracts valued in excess of $1
million the agency executive director must authorize a contract
amendment in writing.
(d) Each state agency shall annually report to the
comptroller a list of each person authorized to approve contracts
at the agency. The list must include the person's name, position,
and supervisory responsibility, if any.
Sec. 2262.063. NEGOTIATION OF CONTRACT BY SINGLE EMPLOYEE
PROHIBITED. A state agency may not negotiate a contract with only
one employee engaging in the negotiation.
Sec. 2262.064. DEVELOPMENT OF OPTIMIZED MODEL FOR CERTAIN
CONTRACTS. (a) If a state agency determines that a proposed
contract or proposed contract extension or amendment would
outsource existing services or functions performed by the agency
that have a value of $10 million or more, or that would lead to the
loss of 100 or more existing state employee positions, the agency
shall create an optimized model for the identified functions or
services to determine how and at what cost the agency could most
efficiently provide the functions or services.
(b) The model must show consideration of all relevant
factors, including:
(1) best practices in this state and other states;
(2) available technology;
(3) access to benefits and services for clients;
(4) program integrity; and
(5) assessment of state agency skills available
throughout the life of the project.
(c) An agency that develops an optimized model under this
section shall use it as the basis for cost comparison when deciding
whether to outsource the identified functions or services.
(d) A model developed under this section is confidential and
is not subject to disclosure under Chapter 552 until a final
determination has been made to award the contract for which the
model was developed.
Sec. 2262.065. ANALYSIS OF SERVICES AND FUNCTIONS. (a) In
this section, "inherently governmental in nature" means a function
or service that involves the exercise or use of governmental
authority or discretion.
(b) If a state agency determines that a proposed contract or
proposed contract extension or amendment would outsource existing
services or functions performed by the agency that have a value of
$10 million or more, or would lead to the loss of 100 or more
existing state employee positions, then before the agency may issue
a competitive solicitation for the contract or amend or extend the
contract the agency shall contract with the State Council on
Competitive Government for its staff to perform an analysis to
determine if any of the services or functions to be performed under
the contract or contract extension or amendment are inherently
governmental in nature.
(c) Except as provided by Subsection (e), if the State
Council on Competitive Government determines that a service or
function to be performed under the contract or contract extension
or amendment is inherently governmental in nature, the state agency
may not:
(1) contract with a private entity to perform the
service or function; or
(2) amend or extend the contract, if a private entity
is to perform the service or function under the contract extension
or amendment.
(d) The analysis required under this section must use the
standards and policies contained in the Office of Federal
Procurement Policy, Policy Letter 92-1, or comparable guidelines
developed by the State Council on Competitive Government.
(e) A state agency may contract with a private entity to
perform a service or function or amend or extend an existing
contract to allow a private entity to perform a service or function
that the State Council on Competitive Government determines to be
inherently governmental in nature if the chief administrative
officer of the agency issues a report stating that there is a
compelling state interest in outsourcing the service or function.
Sec. 2262.066. FULL AND FAIR COST COMPARISON. (a) If a
state agency determines that a proposed contract or proposed
contract extension or amendment would outsource existing services
or functions performed by the agency that have a value of $10
million or more, or that would lead to the loss of 100 or more
existing state employee positions, the agency shall:
(1) conduct a full and fair cost comparison to
determine whether a private entity could perform the service or
function with a comparable or better level of quality at a cost
savings to the state; and
(2) prepare a business case providing the initial
justification for the proposed contract or proposed contract
extension or amendment that includes:
(A) the results of the comparison required under
Subdivision (1); and
(B) the anticipated return on investment in terms
of cost savings and efficiency for the proposed contract or
proposed contract extension or amendment.
(b) To perform the comparison required by Subsection
(a)(1), a state agency may:
(1) contract with the State Council on Competitive
Government to have its staff perform the comparison; or
(2) use the methodology provided in Section 2162.103.
(c) A state agency shall submit the business case required
under Subsection (a)(2) to the governor, lieutenant governor,
speaker of the house of representatives, Legislative Budget Board,
and standing committees of the legislature that have primary
jurisdiction over the agency, over state appropriations, and over
state purchasing.
SECTION 9. Section 2262.101, Government Code, is amended to
read as follows:
Sec. 2262.101. CREATION; DUTIES. (a) The Contract
Advisory Team is created to assist state agencies in improving
contract management practices by:
(1) [reviewing the solicitation of major contracts by
state agencies;
[(2)] reviewing any findings or recommendations made
by the state auditor, including those made under Section
2262.052(b), regarding a state agency's compliance with the
contract management guide; [and]
(2) [(3)] providing recommendations to the
comptroller [commission] regarding:
(A) the development of the contract management
guide; and
(B) the training under Section 2262.053; and
(3) certifying that state agencies have complied with
Sections 2262.064 and 2262.066.
(b) The team shall consult with state agencies in developing
forms, contract terms, guidelines, and criteria required under this
chapter.
SECTION 10. Section 2262.102(a), Government Code, is
amended to read as follows:
(a) The team consists of the following five members:
(1) one member from the attorney general's office;
(2) one member from the comptroller's office;
(3) one member from the Department of Information
Resources;
(4) [one member from the Texas Building and
Procurement Commission; and
[(5)] one member from the governor's office; and
(5) one member from the State Council on Competitive
Government.
SECTION 11. Subchapter C, Chapter 2262, Government Code, is
amended by adding Sections 2262.104 and 2262.105 to read as
follows:
Sec. 2262.104. UNIFORM DEFINITIONS AND FORMS. (a) The team
shall develop and publish a uniform set of definitions for use as
applicable in state contracts.
(b) The team shall develop and publish a uniform and
automated set of forms that a state agency may use in the different
stages of the contracting process.
Sec. 2262.105. FORMS FOR REPORTING CONTRACTOR PERFORMANCE.
As part of the uniform forms published under Section 2262.104, the
team shall develop forms for use by state agencies in reporting a
contractor's performance under Section 2262.057.
SECTION 12. Chapter 2262, Government Code, is amended by
adding Subchapters D, E, F, and G to read as follows:
SUBCHAPTER D. CONTRACT PROVISIONS
Sec. 2262.151. USE OF UNIFORM FORMS. A state agency may use
the forms developed under Section 2262.104 as templates, guides, or
samples for contracts entered into by the agency.
Sec. 2262.152. CONTRACT TERMS RELATING TO NONCOMPLIANCE.
(a) The team shall develop recommendations for contract terms
regarding penalties for contractors who do not comply with a
contract, including penalties for contractors who do not disclose
conflicts of interest under Section 2262.201. The team may develop
recommended contract terms that are generally applicable to state
contracts and terms that are applicable to important types of state
contracts.
(b) A state agency may include applicable recommended terms
in a contract entered into by the agency.
Sec. 2262.153. REQUIRED PROVISION RELATING TO
SUBCONTRACTOR COMPLIANCE. Each state agency contract must require
that each contractor provide a list of all subcontractors for the
contract and include a provision that:
(1) holds the contractor responsible for the conduct
of all subcontractors in complying with the contractor's contract
with the state agency; and
(2) requires each subcontractor to disclose all
potential conflicts of interest to the state agency, according to
guidelines developed under Section 2262.201(b), when the
subcontractor contracts with or is otherwise hired by the
contractor.
Sec. 2262.154. REQUIRED CONTRACTOR DISCLOSURE STATEMENT;
STATE AGENCY EMPLOYEES. Before entering into a contract with the
state, a contractor and subcontractor shall disclose each employee:
(1) who was employed by:
(A) the state at any time during the two years
before the date of the disclosure and is now employed by the
contractor or subcontractor; or
(B) the contractor or subcontractor at any time
during the year before the date of the disclosure and is now
employed by the state; and
(2) who is materially involved in the development of
the contract terms or the management of the contract.
Sec. 2262.155. REQUIRED CONTRACTOR DISCLOSURE STATEMENT;
OUTSOURCING. (a) Each contract entered into by a state agency must
include a provision requiring disclosure of any services materially
necessary to fulfill the contract, including services performed by
a subcontractor, that will be or are performed in a country other
than the United States. This section does not apply to services
that are occasional, minor, or incidental to fulfilling the
contract.
(b) The contract must include a provision allowing the state
agency to terminate the contract and solicit a new contract, except
as provided by Subsection (d), if:
(1) the contractor or a subcontractor of the
contractor performs a service materially necessary to fulfill the
contract in a country other than the United States; and
(2) the contractor does not disclose in the contract
that the service will be performed in a country other than the
United States.
(c) A state agency that decides not to solicit a new
contract under circumstances in which the agency is authorized to
do so under a contract provision required by Subsection (b) shall
report this decision to:
(1) the governor;
(2) the lieutenant governor;
(3) the speaker of the house of representatives; and
(4) the team.
(d) A contractor may replace a subcontractor without
termination of a contract under this section if the contractor
determines that the subcontractor is performing a service
materially necessary to fulfill the contract in a country other
than the United States and did not disclose that fact to the
contractor.
Sec. 2262.156. HIRING PREFERENCE PROVISION FOR CERTAIN
LARGE CONTRACTS. If a state agency determines that a proposed
contract or proposed contract extension or amendment would
outsource existing services or functions performed by the agency
that have a value of $10 million or more, or that would lead to the
loss of 100 or more existing state employee positions, the contract
or contract amendment must contain a provision that requires the
contractor to give preference in hiring to former employees of a
state agency:
(1) whose employment is terminated because of the
contract or contract extension or amendment;
(2) who satisfy the contactor's hiring criteria for
that position; and
(3) whose salary requirements are competitive with
market rates for positions with equivalent skills and experience.
SUBCHAPTER E. ETHICS; CONFLICT OF INTEREST
Sec. 2262.201. CONTRACTOR CONFLICTS OF INTEREST. (a) Each
contractor who responds to a state agency's contract solicitation
shall disclose in its response all potential conflicts of interest
to the agency.
(b) The team shall develop guidelines to aid contractors and
state agencies in identifying potential conflicts of interest.
Sec. 2262.202. EXECUTIVE DIRECTORS; ETHICS IN CONTRACTING
CLASS. Each executive director of a state agency shall annually
complete the ethics and contracting class developed under Section
2262.053(f). This section does not apply to a state agency that
does not enter into any contracts.
SUBCHAPTER F. CHANGES TO CONTRACTS
Sec. 2262.251. CONTRACT AMENDMENTS, EXTENSIONS, AND CHANGE
ORDERS. (a) An extension of or amendment to a contract, including
a change order, is subject to the same approval processes as the
original contract.
(b) A state agency may not extend or amend a contract
unless:
(1) the agency complies with the same approval
processes for the extension or amendment as required for the
original contract; and
(2) a contract manager for the agency states in
writing why the extension or amendment is necessary.
(c) This section does not affect whether a state agency is
required to undertake a new solicitation process in the manner
required for a new contract in order to extend or amend a contract.
Sec. 2262.252. LARGE CHANGE IN CONTRACT VALUE. (a) If a
proposed contract amendment or extension changes the monetary value
of a contract by $1 million or more, the state agency must obtain
review and approval from the team and the agency's executive
director before the agency amends or extends the contract.
(b) This section does not apply to a proposed contract
amendment required by a state or federal statute.
Sec. 2262.253. CERTAIN CONTRACT EXTENSIONS. This
subchapter does not apply to contract extensions that are
specifically established as a component of the original
procurement.
SUBCHAPTER G. STATE OFFICE OF CONTRACT MANAGEMENT
Sec. 2262.301. DEFINITIONS. In this subchapter:
(1) "High-risk contract" means a state agency contract
that:
(A) has a value of at least $10 million; or
(B) has a value of less than $10 million, but has
high-risk factors as identified by the office.
(2) "Major information resources project" has the
meaning assigned by Section 2054.003(10).
(3) "Office" means the state office of contract
management.
(4) "Quality assurance team" means the quality
assurance team established under Section 2054.158.
(5) "Solicitation" means a solicitation for bids,
offers, qualifications, proposals, or similar expressions of
interest for a high-risk contract.
Sec. 2262.302. ESTABLISHMENT; GENERAL DUTIES. The
comptroller shall establish a state office of contract management
to:
(1) develop criteria for identifying high-risk
factors in contracts;
(2) review and approve an action related to a
high-risk contract as provided by Section 2262.303;
(3) provide recommendations and assistance to state
agency personnel throughout the contract management process; and
(4) coordinate and consult with the quality assurance
team on all high-risk contracts relating to a major information
resources project.
Sec. 2262.303. REVIEW AND APPROVAL; WAIVER. (a) Each state
agency must receive approval from the office before taking the
following actions in relation to a high-risk contract:
(1) publicly releasing solicitation documents;
(2) executing a final contract; and
(3) making a payment or a series of payments that equal
half of the contract value.
(b) In determining whether to approve an action described by
Subsection (a), the office shall review related documentation to
ensure that potential risks related to the high-risk contract have
been identified and mitigated.
(c) The comptroller by rule may adopt criteria for waiving
the review and approval requirements under Subsections (a) and (b).
Sec. 2262.304. SOLICITATION AND CONTRACT CANCELLATION.
After review of and comment on the matter by the Legislative Budget
Board and the governor, the office may recommend the cancellation
of a solicitation or a contract during the review process under
Section 2262.303 if:
(1) a proposed solicitation is not in the best
interest of the state;
(2) a proposed contract would place the state at an
unacceptable risk if executed; or
(3) an executed contract is experiencing performance
failure or payment irregularities.
SECTION 13. Section 2262.003, Government Code, is
transferred to Subchapter D, Chapter 2262, Government Code, as
added by this Act, is redesignated as Section 2262.157, Government
Code, and is amended to read as follows:
Sec. 2262.157 [2262.003]. REQUIRED [CONTRACT] PROVISION
RELATING TO AUDITING. (a) Each state agency shall include in each
of its contracts a term that provides that:
(1) the state auditor may conduct an audit or
investigation of any entity receiving funds from the state directly
under the contract or indirectly through a subcontract under the
contract;
(2) acceptance of funds directly under the contract or
indirectly through a subcontract under the contract acts as
acceptance of the authority of the state auditor, under the
direction of the legislative audit committee, to conduct an audit
or investigation in connection with those funds; and
(3) under the direction of the legislative audit
committee, an entity that is the subject of an audit or
investigation by the state auditor must provide the state auditor
with access to any information the state auditor considers relevant
to the investigation or audit.
(b) The state auditor shall provide assistance to a state
agency in developing the contract provisions.
SECTION 14. Section 51.923, Education Code, is amended to
read as follows:
Sec. 51.923. QUALIFICATIONS OF CERTAIN BUSINESS ENTITIES TO
ENTER INTO CONTRACTS WITH AN INSTITUTION OF HIGHER EDUCATION. (a)
In this section:
(1) "Business entity [Corporation]" means any entity
recognized by law through which business for profit is conducted,
including a sole proprietorship, partnership, firm, corporation,
limited liability company, holding company, joint stock company,
receivership, or trust [a corporation for profit organized under
the laws of this state or under laws other than the laws of this
state].
(2) "Governing board" has the meaning assigned by
Section 61.003 [of this code].
(3) "Institution of higher education" has the meaning
assigned by Section 61.003 [of this code].
(4) "Nonprofit corporation" means any organization
exempt from federal income tax under Section 501 of the Internal
Revenue Code of 1986 that does not distribute any part of its income
to any member, director, or officer.
(b) A nonprofit corporation is not disqualified from
entering into a contract or other transaction with an institution
of higher education even though one or more members of the governing
board of the institution of higher education also serves as a
member, [or] director, or officer of the nonprofit corporation.
(c) A business entity [corporation] is not disqualified
from entering into a contract or other transaction with an
institution of higher education even though one or more members of
the governing board of the institution of higher education has a
substantial interest in the business entity [also serves as a
stockholder or director of the corporation provided that no member
of the governing board owns or has a beneficial interest in more
than five percent of the corporation's outstanding capital stock
and further provided that the contract or transaction is:
[(1) an affiliation, licensing, or sponsored research
agreement; or
[(2) awarded by competitive bidding or competitive
sealed proposals].
(d) An institution of higher education is not prohibited
from entering into a contract or other transaction with a business
entity in which a member of the governing board of the institution
of higher education has a substantial interest [described in this
section] if the [any] board member [having an interest described in
this section in the contract or transaction] discloses that
interest in a meeting held in compliance with Chapter 551,
Government Code, and refrains from voting on the contract or
transaction. Any such contract or transaction requiring board
approval must be approved by an affirmative majority of the board
members voting on the contract or transaction.
(e) For purposes of this section, a member of a governing
board has a substantial interest in a business entity if:
(1) the member owns 10 percent or more of the voting
stock or shares of the business entity or owns either 10 percent or
more or $15,000 or more of the fair market value of the business
entity;
(2) funds received by the member from the business
entity exceed 10 percent of the member's gross income for the
previous year; or
(3) an individual related to the member in the first
degree by consanguinity or affinity, as determined under Chapter
573, Government Code, has an interest in the business entity as
described by Subdivision (1) or (2).
(f) A violation of this section does not render an action of
the governing board voidable unless the contract or transaction
that was the subject of the action would not have passed the
governing board without the vote of the member who violated this
section.
(g) This section preempts the common law of conflict of
interests as applied to members of a governing board of an
institution of higher education.
SECTION 15. Section 2262.051(f), Government Code, is
repealed.
SECTION 16. (a) Sections 2262.063 through 2262.066 and
2262.154, Government Code, and Subchapter G, Chapter 2262,
Government Code, as added by this Act, apply only to a contract for
which a state agency first advertises or otherwise solicits bids,
proposals, offers, or qualifications on or after the effective date
of this Act.
(b) Section 2262.201(a), Government Code, as added by this
Act, applies only in relation to a contract for which a state agency
first solicits bids, proposals, offers, or qualifications on or
after the date that the Contract Advisory Team's guidelines
regarding potential conflicts of interest take effect.
SECTION 17. Not later than May 1, 2010, the comptroller of
public accounts shall develop the training program, including the
ethics and contracting class, required by Section 2262.053,
Government Code, as amended by this Act, and Section 2262.0535,
Government Code, as added by this Act.
SECTION 18. A member of a governing body of a state agency
is not required to complete the training developed under Section
2262.0535, Government Code, as added by this Act, until September
1, 2011.
SECTION 19. An executive director of a state agency is not
required to comply with Section 2262.202, Government Code, as added
by this Act, until September 1, 2011.
SECTION 20. A contract manager is not required to be
certified under Chapter 2262, Government Code, as amended by this
Act, until September 1, 2011.
SECTION 21. (a) As soon as practicable, and not later than
May 1, 2010, the Contract Advisory Team shall develop the forms,
criteria, recommendations, and provisions required by this Act,
including Sections 2262.104, 2262.105, 2262.152, and 2262.201(b),
Government Code, as added by this Act.
(b) A state agency is not required to comply with Sections
2262.056 through 2262.062 and Sections 2262.153, 2262.155, and
2262.156, Government Code, as added by this Act, until September 1,
2011. A state agency may comply earlier if the forms, electronic
requirements, database, or other items are available before that
date.
SECTION 22. This Act takes effect November 1, 2009.