By: Capriglione (Senate Sponsor - Hancock) H.B. No. 1817
(In the Senate - Received from the House May 3, 2023;
May 5, 2023, read first time and referred to Committee on State
Affairs; May 16, 2023, reported favorably by the following vote:
Yeas 11, Nays 0; May 16, 2023, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to the validity of a contract for which a disclosure of
interested parties is required.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2252.908, Government Code, is amended by
adding Subsection (f-1) to read as follows:
(f-1) A contract described by Subsection (b) entered into by
a governmental entity or state agency is voidable for failure to
provide the disclosure of interested parties required by this
section only if:
(1) the governmental entity or state agency submits to
the business entity written notice of the business entity's failure
to provide the required disclosure; and
(2) the business entity fails to submit to the
governmental entity or state agency the required disclosure on or
before the 10th business day after the date the business entity
receives the written notice under Subdivision (1).
SECTION 2. A court in which a suit challenging the validity
of a contract described by Section 2252.908(b), Government Code, is
pending on the effective date of this Act may require the
governmental entity or state agency to provide the written notice
required under Section 2252.908(f-1), Government Code, as added by
this Act, if the court finds that failure to enforce that
requirement would cause an inequitable or unjust result for the
parties to the suit.
SECTION 3. A contract described by Section 2252.908(b),
Government Code, that was executed before the effective date of
this Act is presumed to have been properly executed in accordance
with Section 2252.908, Government Code, if an action to void or
invalidate the contract has not been filed with a court in this
state before the effective date of this Act.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2023.
* * * * *