79R3718 MTB-D

By:  Rodriguez                                                    H.B. No. 2169



A BILL TO BE ENTITLED

AN ACT

relating to ethics requirements for state agency purchasing 
personnel.      
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 2262.002, Government Code, is amended to 
read as follows:
	Sec. 2262.002.  EXEMPTIONS.  (a)  Except as otherwise 
provided by Section 2262.004, this [This] chapter does not apply to 
an institution of higher education as defined by Section 61.003, 
Education Code.
	(b)  Except as otherwise provided by Section 2262.004, this
[This] chapter does not apply to contracts of the Texas Department 
of Transportation that relate to highway construction or highway 
engineering.
	SECTION 2.  Subchapter A, Chapter 2262, Government Code, is 
amended by adding Section 2262.004 to read as follows:
	Sec. 2262.004.  CONFLICT OF INTEREST.  (a)  This section 
applies to state agency purchasing personnel, including purchasing 
personnel employed by an institution of higher education as defined 
by Section 61.003, Education Code, and any purchasing personnel 
employed by the Texas Department of Transportation.  In this 
section, "purchasing personnel" includes a person who makes 
recommendations or decisions regarding:
		(1)  preparation of a solicitation for a contract;                     
		(2)  evaluation of a bid or proposal;                                  
		(3)  contract terms or conditions on a contract; or                    
		(4)  who is to be awarded a contract.                                  
	(b)  State agency purchasing personnel shall disclose in 
writing to the administrative head of the applicable state agency 
whether the person:
		(1)  is employed by, participates in the management of, 
or is a paid consultant of a business entity or other organization;
		(2)  owns or controls, directly or indirectly, more 
than a 10 percent interest or a pecuniary interest with a value 
exceeding $10,000 in a business entity or other organization;
		(3)  has any relationship with a person who is an owner, 
manager, partner, or paid consultant of a business entity or other 
organization; or
		(4)  has any relationship with a person who owns or 
controls, directly or indirectly, more than a 10 percent interest 
or a pecuniary interest with a value exceeding $10,000 in a business 
entity or other organization.
	(c)  State agency purchasing personnel shall disclose a 
relationship described by Subsection (b)(3) or (4) without regard 
to whether the relationship is a personal, private, commercial, or 
business relationship.
	(d)  State agency purchasing personnel shall file annually a 
statement with the administrative head of the applicable state 
agency.  The statement must disclose each relationship and 
pecuniary interest described by Subsection (b) or, if no 
relationship or pecuniary interest described by that subsection 
existed during the disclosure period, must affirmatively state that 
fact.
	(e)  The annual statement must be filed not later than 
January 15 on a form prescribed by the state agency receiving the 
form.  The statement must cover the reporting period of the previous 
calendar year.
	(f)  State agency purchasing personnel shall promptly file a 
new or amended statement with the administrative head of the 
applicable state agency whenever there is new information to report 
under Subsection (b).
	(g)  State agency purchasing personnel may not make   
recommendations or decisions regarding a contract if a business 
entity or other organization listed or required to be listed in a 
statement under Subsection (d) responds to a solicitation for the 
contract. State agency purchasing personnel shall notify a 
supervisor and the administrative head of the applicable state 
agency of the response to the solicitation.
	SECTION 3.  State agency purchasing personnel are not 
required to comply with Section 2262.004, Government Code, as added 
by this Act, until January 15, 2006.
	SECTION 4.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.