79R1377 MTB-D

By:  Delisi                                                       H.B. No. 2932



A BILL TO BE ENTITLED

AN ACT

relating to requiring state agency purchasing personnel to disclose 
certain family relationships with business entities receiving 
state agency contracts.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter A, Chapter 2262, Government Code, is 
amended by adding Section 2262.004 to read as follows:
	Sec. 2262.004.  REQUIRED NEPOTISM DISCLOSURE.  (a)  In this 
section:  
		(1)  "Major stockholder" means a person who directly or 
indirectly owns or controls more than a 10 percent interest or a 
pecuniary interest with a value exceeding $25,000 in a business 
entity.
		(2)  "Purchasing personnel" means an employee of a 
state agency who makes decisions on behalf of the state agency or 
recommendations regarding:
			(A)  contract terms or conditions on any contract; 
or               
			(B)  who is to be awarded any contract.                               
	(b)  Before a state agency may award a state contract for the 
purchase of goods or services to a business entity, each of the 
state agency's purchasing personnel working on the contract must 
disclose in writing to the administrative head of the state agency 
any relationship the purchasing personnel is aware about that the 
employee has with an employee, a partner, a major stockholder, or 
other owner of the business entity that is within a degree described 
by Section 573.002.
	(c)  The state auditor shall develop a form for use in 
reporting a relationship under Subsection (b).
	(d)  Notwithstanding Section 2262.001 or 2262.002, this 
section applies to:
		(1)  an institution of higher education as defined by 
Section 61.003, Education Code; and
		(2)  contracts of the Texas Department of 
Transportation that relate to highway construction or highway 
engineering.
	SECTION 2.  Section 2262.004, Government Code, as added by 
this Act, applies only to a contract awarded or extended on or after 
the effective date of this Act.
	SECTION 3.  This Act takes effect September 1, 2005.