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A BILL TO BE ENTITLED
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AN ACT
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relating to certain ethics requirements applicable to state |
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agencies, including required disclosures by state contractors. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Chapter 2263, Government Code, is |
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amended to read as follows: |
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CHAPTER 2263. ETHICS AND DISCLOSURE REQUIREMENTS FOR STATE |
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AGENCIES AND CONTRACTORS WITH STATE AGENCEIES [OUTSIDE FINANCIAL
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ADVISORS AND SERVICE PROVIDERS] |
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SECTION 2. Chapter 2263, Government Code, is amended by |
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designating Sections 2263.001 through 2263.006 as Subchapter A and |
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adding a heading to Subchapter A to read as follows: |
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SUBCHAPTER A. ETHICS AND DISCLOSURE REQUIREMENTS FOR OUTSIDE |
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FINANCIAL ADVISORS AND SERVICE PROVIDERS |
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SECTION 3. Sections 2263.001, 2263.002, 2263.003, and |
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2263.006, Government Code, are amended to read as follows: |
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Sec. 2263.001. APPLICABILITY. (a) This subchapter |
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[chapter] applies in connection with the management or investment |
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of any state funds managed or invested: |
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(1) under the Texas Constitution or other law, |
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including Chapters 404 and 2256; and |
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(2) by or for: |
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(A) a public retirement system as defined by |
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Section 802.001 that provides service retirement, disability |
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retirement, or death benefits for officers or employees of the |
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state; |
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(B) an institution of higher education as defined |
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by Section 61.003, Education Code; or |
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(C) another entity that is part of state |
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government and that manages or invests state funds or for which |
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state funds are managed or invested. |
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(b) This subchapter [chapter] applies in connection with |
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the management or investment of state funds without regard to |
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whether the funds are held in the state treasury. |
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(c) This subchapter [chapter] does not apply to or in |
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connection with a state governmental entity that does not manage or |
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invest state funds and for which state funds are managed or invested |
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only by the comptroller. |
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Sec. 2263.002. DEFINITION. In this subchapter [chapter], |
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"financial advisor or service provider" includes a person or |
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business entity who acts as a financial advisor, financial |
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consultant, money or investment manager, or broker. |
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Sec. 2263.003. CONSTRUCTION WITH OTHER LAW. To the extent |
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of a conflict between this subchapter [chapter] and another law, |
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the law that imposes a stricter ethics or disclosure requirement |
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controls. |
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Sec. 2263.006. PUBLIC INFORMATION. Chapter 552 controls |
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the extent to which information contained in a statement filed |
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under this subchapter [chapter] is subject to required public |
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disclosure or excepted from required public disclosure. |
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SECTION 4. Chapter 2263, Government Code, is amended by |
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adding Subchapters B and C to read as follows: |
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SUBCHAPTER B. MODEL ETHICS POLICY FOR STATE AGENCIES |
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Sec. 2263.051. MODEL ETHICS POLICY FOR STATE AGENCIES. A |
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state agency shall use the following model policy in adopting an |
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agency ethics policy under Section 572.051(c): |
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I. OVERVIEW. |
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Under Section 572.051(c), Government Code, the (agency) |
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adopts the following ethics policy: |
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This ethics policy prescribes standards of conduct for all |
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(agency) employees. |
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This ethics policy does not supersede any applicable federal |
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or Texas law or administrative rule. |
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All (agency) employees must familiarize themselves with this |
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ethics policy. |
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All (agency) employees must abide by all applicable federal |
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and Texas laws, administrative rules, and (agency) conduct |
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policies, including this ethics policy. An (agency) employee who |
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violates any provision of the (agency's) conduct policies is |
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subject to termination of the employee's state employment or |
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another employment-related sanction. An (agency) employee who |
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violates any applicable federal or Texas law or rule may be subject |
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to civil or criminal penalties in addition to any |
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employment-related sanction. |
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II. STANDARDS OF CONDUCT. |
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A. An (agency) employee may not: |
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(1) accept or solicit any gift, favor, or service |
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that might reasonably tend to influence the employee in the |
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discharge of official duties, or that the employee knows or should |
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know is being offered with the intent to influence the employee's |
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official conduct; |
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(2) intentionally or knowingly solicit, accept, |
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or agree to accept any benefit for having exercised the employee's |
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official powers or performed the employee's official duties in |
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favor of another; |
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(3) disclose confidential information, |
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information that is excepted from public disclosure under the Texas |
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Public Information Law, or information that has been ordered sealed |
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by a court that was acquired by the employee through the employee's |
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official position; |
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(4) accept other employment, including |
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self-employment, or engage in a business, charity, nonprofit |
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organization, or professional activity that the employee might |
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reasonably expect would require or induce the employee to disclose |
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confidential information, information that is excepted from public |
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disclosure under the Texas Public Information Law, or information |
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that has been ordered sealed by a court that was acquired by the |
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employee through the employee's official position; |
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(5) accept other employment, including |
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self-employment, or compensation or engage in a business, charity, |
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nonprofit organization, or professional activity that could |
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reasonably be expected to impair the employee's independence of |
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judgment in the performance of the employee's official duties; |
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(6) make personal investments, or have a personal |
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or financial interest, that could reasonably be expected to create |
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a substantial conflict between the employee's private interest and |
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the public interest; |
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(7) use state, time, property, facilities, or |
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equipment for any purpose other than official state business, |
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unless the use is reasonable and incidental and does not result in |
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any direct cost to the state or (agency), interfere with the |
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employee's official duties, or interfere with (agency) functions; |
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(8) use the employee's official position or |
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state-issued items, including a badge, indicating the employee's |
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position for financial gain, to obtain privileges, or to avoid |
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consequences of illegal acts; |
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(9) knowingly make misleading statements, either |
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oral or written, or provide false information in the course of |
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official state business; or |
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(10) engage in any political activity while on |
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state time or use state resources for any political activity. |
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B. An (agency) employee shall: |
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(1) perform the employee's official duties in a |
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lawful, professional, and ethical manner befitting the state and |
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(agency); and |
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(2) report any conduct or activity that the |
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employee believes to be in violation of this ethics policy to |
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(agency designee). |
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Sec. 2263.052. MODEL ETHICS POLICY PROVISIONS FOR |
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REGULATORY AGENCIES. Except as otherwise provided by law, a |
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regulatory agency shall use the following model policy provisions |
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in adopting an agency ethics policy that meets the standards of |
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Section 572.054(b): |
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REGULATORY AGENCIES. |
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(1) In this ethics policy: |
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(a) "Business entity" means any entity |
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recognized by law through which business for profit is conducted, |
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including a sole proprietorship, partnership, firm, corporation, |
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holding company, joint stock company, receivership, or trust. |
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(b) "Participated" means to have taken action |
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through decision, approval, disapproval, recommendation, giving of |
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advice, investigation, or similar action. |
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(c) "Particular matter" means a specific |
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investigation, application, request for a ruling or determination, |
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rulemaking proceeding, contract, claim, accusation, charge, |
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arrest, or judicial or other proceeding. |
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(d) "Regulatory agency" means a department, |
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commission, board, or other agency, other than the secretary of |
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state or the comptroller of public accounts, that: |
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(i) is in the executive branch of state |
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government; |
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(ii) has authority that is not limited to a |
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geographical portion of this state; |
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(iii) was created by the Texas Constitution |
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or a statute of this state; and |
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(iv) has constitutional or statutory |
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authority to engage in regulation. |
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(2) A former employee of the (agency) who was |
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compensated, as of the last date of state employment, at or above |
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the amount prescribed by the General Appropriations Act for step 1, |
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salary group A17, of the position classification salary schedule |
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may not represent any person or entity, or receive compensation for |
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services rendered on behalf of any person or entity, regarding a |
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particular matter in which the former employee participated during |
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the period of state service or employment, either through personal |
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involvement or because the case or proceeding was a matter within |
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the employee's official responsibility. |
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(3) Subsection (2) of this policy does not apply to a |
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rulemaking proceeding that was conducted before the date the |
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employee's service or employment ceased. |
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(4) Notwithstanding Subsection (1)(d) of this policy, |
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Subsection (2) of this policy applies to employees of the secretary |
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of state and the comptroller of public accounts. |
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(5) An association or organization of employees of the |
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(agency) may not solicit, accept, or agree to accept anything of |
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value from: |
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(a) a business entity regulated by the (agency) |
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and from which the business entity must obtain a permit to operate |
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the entity's business in this state; or |
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(b) an individual directly or indirectly |
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connected with a business entity regulated by the (agency) and from |
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which the business entity must obtain a permit to operate the |
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entity's business in this state. |
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SUBCHAPTER C. ETHICS AND DISCLOSURE REQUIREMENTS |
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FOR CONTRACTORS |
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Sec. 2263.101. REQUIRED CONTRACTOR DISCLOSURE STATEMENT; |
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STATE AGENCY EMPLOYEES. Before entering into a contract with the |
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state, a contractor and subcontractor and must disclose each |
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employee: |
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(1) who was employed by: |
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(A) the state at any time during the two years |
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preceding the date of the disclosure and is now employed by the |
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contractor or subcontractor; or |
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(B) the contractor or subcontractor at any time |
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during the year preceding the date of the disclosure and is now |
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employed by the state; and |
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(2) who is materially involved in the development of |
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the contract terms or the management of the contract. |
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Sec. 2263.102. REQUIRED CONTRACTOR DISCLOSURE STATEMENT; |
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OUTSOURCING. (a) Each contract entered into by a state agency must |
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include a provision requiring disclosure of any services materially |
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necessary to fulfill the contract, including services performed by |
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a subcontractor, that will be or are performed in a country other |
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than the United States. This section does not apply to services |
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that are occasional, minor, or incidental to fulfilling the |
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contract. |
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(b) The contract must include a provision allowing the state |
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agency to terminate the contract and solicit a new contract, expect |
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as provided by Subsection (d), if: |
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(1) the contractor or a subcontractor of the |
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contractor performs a service materially necessary to fulfill the |
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contract in a country other than the United States; and |
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(2) the contractor does not disclose in the contract |
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that the service will be performed in a country other than the |
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United States. |
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(c) A state agency that decides not to solicit a new |
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contract under circumstances in which the agency is authorized to |
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do so under a contract provision required by Subsection (b) shall |
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report this decision to: |
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(1) the governor; |
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(2) the lieutenant governor; |
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(3) the speaker of the house of representatives; |
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(4) the Contract Advisory Team. |
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(d) A contractor may replace a subcontractor without |
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termination of a contract under this section if the contractor |
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determines that the subcontractor is performing a service |
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materially necessary to fulfill the contract in a country other |
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than the United States and did not disclose that fact to the |
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contractor. |
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Sec. 2263.103. CONTRACTOR CONFLICTS OF INTEREST. (a) Each |
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contractor who responds to a state agency's contract solicitation |
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shall disclose in its response all potential conflicts of interest |
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to the agency. |
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(b) The Contract Advisory Team shall develop guidelines to |
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aid contractors and state agencies in identifying potential |
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conflicts of interest. |
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SECTION 5. (a) Section 2263.101, Government Code, as added |
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by this Act, applies only to a contract for which a state agency |
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first advertises or otherwise solicits bids, proposals, offers, or |
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qualifications on or after the effective date of this Act. |
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(b) Section 2263.103(a), Government Code, as added by this |
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Act, applies only in relation to a contract for which a state agency |
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first solicits bids, proposals, offers, or qualifications on or |
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after the date that the Contract Advisory Team's guidelines |
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regarding potential conflicts of interest take effect. |
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(c) A state agency is not required to comply with Section |
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2263.102, Government Code, as added by this Act, before September |
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1, 2015. |
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SECTION 6. This Act takes effect November 1, 2013. |