Texas House Bill HB1295

Texas 2017 - 85th Regular

Caption

Relating to the disclosure of interested parties by business entities contracting with governmental entities and state agencies; authorizing a civil penalty.

Impact

The bill modifies Section 2252.908 of the Government Code, stipulating that any business entity that fails to provide this disclosure will incur civil penalties. Specifically, the penalties start at $500 for the first day of non-compliance and scale up to $10,000 for ongoing violations. This measure is likely to create a more rigorous compliance environment for businesses engaging in contracts with governmental entities, encouraging them to take their obligations seriously and adhere to legal transparency requirements.

Summary

House Bill 1295 aims to enhance the transparency of governmental contracting by requiring business entities that contract with governmental agencies to disclose any interested parties involved in the contract. This disclosure is intended to assist in identifying potential conflicts of interest by ensuring that all individuals or entities with a controlling interest in a business entity are properly documented in relation to contracts valued at $1 million or more. This legislative move is part of an ongoing effort to promote ethical standards and accountability within government dealings.

Contention

One notable point of contention surrounding HB 1295 involves the implications of disclosure requirements for private businesses. Critics argue that the bill may impose an excessive burden on smaller businesses that may not have the resources to navigate the complexities of compliance and disclosure. Supporters, however, contend that these measures are necessary to protect taxpayer interests and prevent corruption by ensuring that all stakeholders are disclosed and held accountable.

Additional_points

The legislation includes specific exemptions, such as those for higher education sponsored research contracts and contracts related to health and human services if the values are indeterminate at the time of execution. By establishing clear delineations about what constitutes an interested party and ensuring that the Texas Ethics Commission oversees compliance, the legislation seeks to bolster public trust in government processes.