| 1 | 1 | | H.B. No. 1817 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | AN ACT |
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| 5 | 5 | | relating to the validity of a contract for which a disclosure of |
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| 6 | 6 | | interested parties is required. |
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| 7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 8 | | SECTION 1. Section 2252.908, Government Code, is amended by |
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| 9 | 9 | | adding Subsection (f-1) to read as follows: |
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| 10 | 10 | | (f-1) A contract described by Subsection (b) entered into by |
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| 11 | 11 | | a governmental entity or state agency is voidable for failure to |
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| 12 | 12 | | provide the disclosure of interested parties required by this |
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| 13 | 13 | | section only if: |
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| 14 | 14 | | (1) the governmental entity or state agency submits to |
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| 15 | 15 | | the business entity written notice of the business entity's failure |
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| 16 | 16 | | to provide the required disclosure; and |
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| 17 | 17 | | (2) the business entity fails to submit to the |
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| 18 | 18 | | governmental entity or state agency the required disclosure on or |
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| 19 | 19 | | before the 10th business day after the date the business entity |
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| 20 | 20 | | receives the written notice under Subdivision (1). |
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| 21 | 21 | | SECTION 2. A court in which a suit challenging the validity |
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| 22 | 22 | | of a contract described by Section 2252.908(b), Government Code, is |
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| 23 | 23 | | pending on the effective date of this Act may require the |
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| 24 | 24 | | governmental entity or state agency to provide the written notice |
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| 25 | 25 | | required under Section 2252.908(f-1), Government Code, as added by |
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| 26 | 26 | | this Act, if the court finds that failure to enforce that |
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| 27 | 27 | | requirement would cause an inequitable or unjust result for the |
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| 28 | 28 | | parties to the suit. |
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| 29 | 29 | | SECTION 3. A contract described by Section 2252.908(b), |
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| 30 | 30 | | Government Code, that was executed before the effective date of |
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| 31 | 31 | | this Act is presumed to have been properly executed in accordance |
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| 32 | 32 | | with Section 2252.908, Government Code, if an action to void or |
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| 33 | 33 | | invalidate the contract has not been filed with a court in this |
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| 34 | 34 | | state before the effective date of this Act. |
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| 35 | 35 | | SECTION 4. This Act takes effect immediately if it receives |
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| 36 | 36 | | a vote of two-thirds of all the members elected to each house, as |
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| 37 | 37 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 38 | 38 | | Act does not receive the vote necessary for immediate effect, this |
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| 39 | 39 | | Act takes effect September 1, 2023. |
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| 40 | 40 | | ______________________________ ______________________________ |
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| 41 | 41 | | President of the Senate Speaker of the House |
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| 42 | 42 | | I certify that H.B. No. 1817 was passed by the House on May 2, |
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| 43 | 43 | | 2023, by the following vote: Yeas 139, Nays 3, 1 present, not |
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| 44 | 44 | | voting. |
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| 45 | 45 | | ______________________________ |
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| 46 | 46 | | Chief Clerk of the House |
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| 47 | 47 | | I certify that H.B. No. 1817 was passed by the Senate on May |
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| 48 | 48 | | 18, 2023, by the following vote: Yeas 31, Nays 0. |
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| 49 | 49 | | ______________________________ |
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| 50 | 50 | | Secretary of the Senate |
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| 51 | 51 | | APPROVED: _____________________ |
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| 52 | 52 | | Date |
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| 53 | 53 | | _____________________ |
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| 54 | 54 | | Governor |
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