78R7396 KEG-D


By:  Dukes                                                        H.B. No. 593

Substitute the following for H.B. No. 593:                                    

By:  Davis of Harris                                          C.S.H.B. No. 593



A BILL TO BE ENTITLED

AN ACT

relating to the eligibility of certain persons to contract with a 
state agency.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Sections 2155.004(a), (c), and (e), Government 
Code, are amended to read as follows:
	(a)  A 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 state agency determines that an individual or 
business entity holding a state contract was ineligible to have the 
contract accepted or awarded under Subsection (a) or (e), the state 
agency may immediately terminate the contract without further 
obligation to the vendor.
	(e)  A state agency 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 state 
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.  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 3.  This Act takes effect September 1, 2003.