By Dukes                                              H.B. No. 3537
         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 the barring of vendors from participation in state
 1-3     contracts.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 2155.077. Barring Vendor From
 1-6     Participation in State Contracts, is amended to read as follows:
 1-7           (a)  The commission [may] shall bar a vendor from
 1-8     participating in state contracts that are subject to this subtitle,
 1-9     including contracts for which purchasing authority is delegated to
1-10     a state agency, for:
1-11                 (1)  substandard performance under a contract with the
1-12     state or a state agency;
1-13                 (2)  material misrepresentations in a bid or proposal
1-14     to the state or a state agency or during the course of performing a
1-15     contract with the state or a state agency;
1-16                 (3)  fraud; [or]
1-17                 (4)  breaching a contract with the state or a state
1-18     agency[.];
1-19                 (5)  breaching a contract with a local or quasi
1-20     governmental entities in Texas including but not limited to cities,
1-21     counties, housing authorities, transportation authorities, river
1-22     authorities or other similar public purpose entities; or
1-23                 (6)  misrepresentation to subcontractors as to the
 2-1     amount and scope of their participation in previous awards made by
 2-2     State, local, or quasi governmental entities in Texas or other
 2-3     entities as noted in subsection (5).
 2-4           (b)  The commission shall bar a vendor from participating in
 2-5     state contracts under this section for a period that is
 2-6     commensurate with the seriousness of the vendor's action and the
 2-7     damage to the state's interests.
 2-8           (c)  The commission by rule shall:
 2-9                 (1)  state generally the reasons for which a vendor may
2-10     be barred from participating in state contracts and the periods for
2-11     which the vendor may be barred; and
2-12                 (2)  prescribe the procedures under which the
2-13     commission will determine whether and for how long a vendor will be
2-14     barred.
2-15           (d)  state institutions of higher learning are not exempt
2-16     from this subtitle.
2-17           SECTION 2.  This Act takes effect September 1, 2001.