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House Bill 1817 |
House Author: Capriglione |
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Effective: 6-9-23 |
Senate Sponsor: Hancock |
House Bill 1817 amends the Government Code to limit the circumstances under which an applicable contract entered into by a state agency or other governmental entity is considered voidable on the basis of the contracted business entity's failure to provide the requisite disclosure of interested parties to when the following occurs:
· the state agency or governmental entity submits to the business entity written notice of the business entity's failure to provide the disclosure; and
· the business entity fails to submit to the state agency or governmental entity the disclosure on or before the 10th business day after receiving such notice.
This limitation applies only to a contract that is for lobbying services, has a value of at least $1 million, or requires an action or vote by the governing body of the state agency or governmental entity before the contract may be signed.
House Bill 1817 authorizes a court in which a suit challenging the validity of such a contract is pending on the bill's effective date to require the state agency or other governmental entity to provide the required written notice if the court finds that failure to enforce that requirement would cause an inequitable or unjust result for the parties to the suit. The bill establishes that a contract executed before the bill's effective date is presumed to have been properly executed if an action to void or invalidate the contract has not been filed with a court in Texas before the bill's effective date.