89R16216 RDS-D
By: Hinojosa H.B. No. 5279
A BILL TO BE ENTITLED
AN ACT
relating to consideration of the compensation of a vendor's chief
executive officer as an additional relevant factor in determining
the best value for the state when awarding a state contract.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 2155, Government Code, is
amended by adding Section 2155.0745 to read as follows:
Sec. 2155.0745. ADDITIONAL RELEVANT FACTORS: SALARY
EQUALIZATION. In determining the best value for the state, an
additional relevant factor a state agency shall consider is whether
the vendor's chief executive officer receives total annual
compensation from the vendor, including cash, equity, and other
benefits, in an amount that is not more than 20 times the median
annual compensation paid by the vendor to all full-time employees
of the vendor.
SECTION 2. 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, if applicable, is made public
on or after the effective date of this Act.
SECTION 3. This Act takes effect September 1, 2025.