By:  Dukes                                                        H.B. No. 593



A BILL TO BE ENTITLED

AN ACT

relating to the eligibility of certain persons to contract with, 
and payment under certain contracts with, a governmental entity.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Sections 2155.004(a), (c), (d), and (e), 
Government Code, are amended to read as follows:
	(a)  A governmental entity [state agency] may not accept a 
bid from a person or award to a person a contract that includes 
proposed financial participation by the [a] person if:
		(1)  the person participated [who received 
compensation from the agency to participate] in preparing the bid
specifications or request for proposals on which the bid or 
contract is based; and
		(2)  the bid specifications or request for proposals on 
which the bid or contract is based:
			(A)  requires a work plan, project design, or 
other criteria for participation in the contract that is specific 
to that person or likely to limit or exclude competitors who provide 
similar goods or services; or
			(B)  includes a scope of required goods or 
services that is so narrowly defined that it is specific to that 
person or likely to limit or exclude competitors who provide 
similar goods or services.
	(c)  If a governmental entity [state agency] determines that 
an individual or business entity holding a governmental [state] 
contract was ineligible to have the contract accepted or awarded 
under Subsection (a) or (e), the governmental entity [state agency] 
may immediately terminate the contract without further obligation 
to the vendor.
	(d)  This section does not create a cause of action to 
contest a bid or award of a governmental [state] contract.
	(e)  A governmental entity may not accept a bid from or award 
a contract that is subject to this subtitle to an individual or 
business entity that is barred from participating in governmental 
contracts under Section 2155.077. [This section does not prohibit 
a bidder or contract participant from providing free technical 
assistance to a state agency.]
	SECTION 2.  Subchapter A, Chapter 2155, Government Code, is 
amended by adding Section 2155.006 to read as follows:
	Sec. 2155.006.  SUBCONTRACTOR PAYMENT.  If a dispute arises  
regarding a contract between a governmental entity and a 
contractor, any subcontractor shall be paid for the work completed 
under the contract if the work has been satisfactorily completed by 
the subcontractor and approved by the contractor and the 
governmental entity.
	SECTION 3.  The change in law made by this Act to Section 
2155.004(a), Government Code, applies only in relation to a 
contract for which the requests for bids or proposals or other 
applicable expressions of interest are made public on or after the 
effective date of this Act.
	SECTION 4.  This Act takes effect September 1, 2003.