83R9253 JTS-D By: Smith H.B. No. 3681 A BILL TO BE ENTITLED AN ACT relating to the acceptance of bids for local government contracts from a person who received compensation from the local government for participating in the preparation of the bidding specifications. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter Z, Chapter 271, Local Government Code, is amended by adding Section 271.909 to read as follows: Sec. 271.909. CERTAIN BIDS AND CONTRACTS PROHIBITED. (a) In this section, "local government" means a municipality, county, or other political subdivision of this state subject to competitive bidding requirements. (b) A local government may not accept a bid or award a contract that includes proposed financial participation by a person who received compensation from the local government to participate in preparing the specifications or request for proposals on which the bid or contract is based. (c) A bid or award subject to the requirements of this section must include the following statement: "Under Section 271.909, Local Government Code, the vendor certifies that the individual or business entity named in this bid or contract is not ineligible to receive the specified contract and acknowledges that this contract may be terminated and payment withheld if this certification is inaccurate." (d) If a local government determines that an individual or business entity holding a local government contract was ineligible to have the contract accepted or awarded under Subsection (b), the local government may immediately terminate the contract without further obligation to the vendor. (e) This section does not create a cause of action to contest a bid or award of a local government contract. (f) This section does not prohibit a bidder or contract participant from providing free technical assistance to a local government. SECTION 2. The change in law made by this Act applies only to a request for proposals, competitive bidding notice, or other similar request issued by a local government on or after the effective date of this Act. SECTION 3. This Act takes effect September 1, 2013.