| 1 | 1 | | 85R5871 YDB-F |
|---|
| 2 | 2 | | By: Kuempel H.B. No. 1610 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to the disclosure of interested parties by business |
|---|
| 8 | 8 | | entities contracting with governmental entities or state agencies. |
|---|
| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 10 | | SECTION 1. Section 2252.908(a)(3), Government Code, is |
|---|
| 11 | 11 | | amended to read as follows: |
|---|
| 12 | 12 | | (3) "Interested party" means a person who has a |
|---|
| 13 | 13 | | controlling interest, as defined by Section 171.0001, Tax Code, in |
|---|
| 14 | 14 | | a business entity with whom a governmental entity or state agency |
|---|
| 15 | 15 | | contracts or who actively participates in facilitating the contract |
|---|
| 16 | 16 | | or negotiating the terms of the contract, including a broker, |
|---|
| 17 | 17 | | intermediary, adviser, or attorney for the business entity. |
|---|
| 18 | 18 | | SECTION 2. Sections 2252.908(b), (d), and (f), Government |
|---|
| 19 | 19 | | Code, are amended to read as follows: |
|---|
| 20 | 20 | | (b) This section applies only to a contract that a business |
|---|
| 21 | 21 | | entity enters into or seeks to enter into with [of] a governmental |
|---|
| 22 | 22 | | entity or state agency that: |
|---|
| 23 | 23 | | (1) requires an action or vote by the governing body of |
|---|
| 24 | 24 | | the governmental entity or state agency before the contract may be |
|---|
| 25 | 25 | | signed; and [or] |
|---|
| 26 | 26 | | (2) has a value of at least $10 [$1] million. |
|---|
| 27 | 27 | | (d) A governmental entity or state agency may not enter into |
|---|
| 28 | 28 | | a contract described by Subsection (b) with a business entity that |
|---|
| 29 | 29 | | does not have a disclosure of interested parties on file with the |
|---|
| 30 | 30 | | Texas Ethics Commission [unless the business entity, in accordance |
|---|
| 31 | 31 | | with this section and rules adopted under this section, submits a |
|---|
| 32 | 32 | | disclosure of interested parties to the governmental entity or |
|---|
| 33 | 33 | | state agency at the time the business entity submits the signed |
|---|
| 34 | 34 | | contract to the governmental entity or state agency]. |
|---|
| 35 | 35 | | (f) A business entity subject to this section shall submit a |
|---|
| 36 | 36 | | disclosure of interested parties to the Texas Ethics Commission: |
|---|
| 37 | 37 | | (1) annually until expiration of the contract to which |
|---|
| 38 | 38 | | this section applies; and |
|---|
| 39 | 39 | | (2) not later than the 30th day after the date of any |
|---|
| 40 | 40 | | material change in the interested parties previously disclosed by |
|---|
| 41 | 41 | | the business entity under this section [Not later than the 30th day |
|---|
| 42 | 42 | | after the date the governmental entity or state agency receives a |
|---|
| 43 | 43 | | disclosure of interested parties required under this section, the |
|---|
| 44 | 44 | | governmental entity or state agency shall submit a copy of the |
|---|
| 45 | 45 | | disclosure to the Texas Ethics Commission]. |
|---|
| 46 | 46 | | SECTION 3. Not later than December 1, 2017, the Texas Ethics |
|---|
| 47 | 47 | | Commission shall adopt any rules necessary to comply with the |
|---|
| 48 | 48 | | changes in law made by this Act. |
|---|
| 49 | 49 | | SECTION 4. The changes in law made by this Act apply only to |
|---|
| 50 | 50 | | a contract for which the request for bids or proposals or other |
|---|
| 51 | 51 | | applicable expressions of interest is made public on or after |
|---|
| 52 | 52 | | January 1, 2018. |
|---|
| 53 | 53 | | SECTION 5. This Act takes effect September 1, 2017. |
|---|