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