By Dukes                                              H.B. No. 3536
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain bids and contracts.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1. Section 2155.004.  Certain Bids and Contracts
 1-5     Prohibited, is amended to read as follows:
 1-6           (a)  A state agency may not accept a bid or award a contract
 1-7     that includes proposed financial participation by a person who
 1-8     [received compensation from the agency to] participated to any
 1-9     extent in preparing the specifications or request for proposals on
1-10     which the bid or contract is based.
1-11           (b)  A state agency may not accept a bid or award a contract
1-12     to any individual not residing in this state or business entity not
1-13     incorporated in or whose principal domicile is not in this state
1-14     unless the individual or business entity:
1-15                 (1)  holds a permit issued by the comptroller to
1-16     collect or remit all state and local sales and use taxes that
1-17     become due and owing as a result of the individual's or entity's
1-18     business in this state; or
1-19                 (2)  certifies that it does not sell tangible personal
1-20     property or services that are subject to the state and local sales
1-21     and use tax.
1-22           (c)  A bid or award subject to the requirements of this
1-23     section must include the following statement:
 2-1           "Under Section 2155.004, Government Code, the vendor
 2-2     certifies that the individual or business entity named in this bid
 2-3     or contract is not ineligible to receive the specified contract and
 2-4     acknowledges that this contract may be terminated and payment
 2-5     withheld if this certification is inaccurate."
 2-6           (d)  If a state agency determines that an individual or
 2-7     business entity holding a state contract was ineligible to have the
 2-8     contract accepted or awarded under Subsection (a)  or (b), the
 2-9     state agency may immediately terminate the contract without further
2-10     obligation to the vendor.
2-11           (e)  If the certification required under Subsection (b)(2) is
2-12     shown to be false, the vendor is liable to the state for attorney's
2-13     fees, the costs necessary to complete the contract, including the
2-14     cost of advertising and awarding a second contract, and any other
2-15     damages provided by law or contract.
2-16           (f)  This section does not create a cause of action to
2-17     contest a bid or award of a state contract.
2-18           (g)  In the absence of a certification by the vendor under
2-19     Subsection (b)(2), the purchasing state agency shall determine if a
2-20     prospective vendor holds a permit for the collection and remission
2-21     of state and local sales and use taxes.
2-22           [(h)  This section does not prohibit a bidder or contract
2-23     participant from providing free technical assistance to a state
2-24     agency.]
2-25           (h)  A state agency may not accept a bid from a person or
2-26     business which has been determined ineligible under section
 3-1     2155.077.
 3-2           SECTION 2. This Act takes effect September 1, 2001.