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  S.B. No. 608
 
 
 
 
AN ACT
  relating to restrictions on state contracts with certain
  contractors.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter A, Chapter 2155, Government Code, is
  amended by adding Section 2155.006 to read as follows:
         Sec. 2155.006.  PROHIBITION ON CERTAIN BIDS AND CONTRACTS.  
  (a)  In this section:
               (1)  "Disaster" has the meaning assigned by Section
  418.004.
               (2)  "Hurricane Katrina" means the hurricane of that
  name that struck the gulf coast region of the United States in
  August 2005.
         (b)  A state agency may not accept a bid or award a contract,
  including a contract for which purchasing authority is delegated to
  a state agency, that includes proposed financial participation by a
  person who, during the five-year period preceding the date of the
  bid or award, has been:
               (1)  convicted of violating a federal law in connection
  with a contract awarded by the federal government for relief,
  recovery, or reconstruction efforts as a result of Hurricane Rita,
  as defined by Section 39.459, Utilities Code, Hurricane Katrina, or
  any other disaster occurring after September 24, 2005; or
               (2)  assessed a penalty in a federal civil or
  administrative enforcement action in connection with a contract
  awarded by the federal government for relief, recovery, or
  reconstruction efforts as a result of Hurricane Rita, as defined by
  Section 39.459, Utilities Code, Hurricane Katrina, or any other
  disaster occurring after September 24, 2005.
         (c)  A bid or award subject to the requirements of this
  section must include the following statement:
         "Under Section 2155.006, Government Code, the vendor
  certifies that the individual or business entity named in this bid
  or contract is not ineligible to receive the specified contract and
  acknowledges that this contract may be terminated and payment
  withheld if this certification is inaccurate."
         (d)  If a state agency determines that an individual or
  business entity holding a state contract was ineligible to have the
  bid accepted or contract awarded under Subsection (b), the state
  agency may immediately terminate the contract without further
  obligation to the vendor.
         (e)  This section does not create a cause of action to
  contest a bid or award of a state contract.
         SECTION 2.  Section 2155.077, Government Code, is amended by
  amending Subsection (b) and adding Subsections (a-1), (d), and (e)
  to read as follows:
         (a-1)  The commission shall bar a vendor from participating
  in state contracts that are subject to this subtitle, including
  contracts for which purchasing authority is delegated to a state
  agency, if the vendor has been:
               (1)  convicted of violating a federal law in connection
  with a contract awarded by the federal government for relief,
  recovery, or reconstruction efforts as a result of Hurricane Rita,
  as defined by Section 39.459, Utilities Code, Hurricane Katrina, or
  any other disaster occurring after September 24, 2005; or
               (2)  assessed a penalty in a federal civil or
  administrative enforcement action in connection with a contract
  awarded by the federal government for relief, recovery, or
  reconstruction efforts as a result of Hurricane Rita, as defined by
  Section 39.459, Utilities Code, Hurricane Katrina, or any other
  disaster occurring after September 24, 2005.
         (b)  Except as provided by Subsection (d), the [The]
  commission shall bar a vendor from participating in state contracts
  under Subsection (a) [this section] for a period that is
  commensurate with the seriousness of the vendor's action and the
  damage to the state's interests.
         (d)  The commission shall bar a vendor from participating in
  state contracts under Subsection (a-1) for a period of five years
  from the date the vendor was convicted or the penalty was assessed.
         (e)  In this section:
               (1)  "Disaster" has the meaning assigned by Section
  418.004.
               (2)  "Hurricane Katrina" means the hurricane of that
  name that struck the gulf coast region of the United States in
  August 2005.
         SECTION 3.  Subchapter B, Chapter 2261, Government Code, is
  amended by adding Section 2261.053 to read as follows:
         Sec. 2261.053.  PROHIBITION ON CERTAIN BIDS AND CONTRACTS.
  (a)  In this section:
               (1)  "Disaster" has the meaning assigned by Section
  418.004.
               (2)  "Hurricane Katrina" means the hurricane of that
  name that struck the gulf coast region of the United States in
  August 2005.
         (b)  Except as provided by Subsection (c), a state agency may
  not accept a bid or award a contract that includes proposed
  financial participation by a person who, during the five-year
  period preceding the date of the bid or award, has been:
               (1)  convicted of violating a federal law in connection
  with a contract awarded by the federal government for relief,
  recovery, or reconstruction efforts as a result of Hurricane Rita,
  as defined by Section 39.459, Utilities Code, Hurricane Katrina, or
  any other disaster occurring after September 24, 2005; or
               (2)  assessed a penalty in a federal civil or
  administrative enforcement action in connection with a contract
  awarded by the federal government for relief, recovery, or
  reconstruction efforts as a result of Hurricane Rita, as defined by
  Section 39.459, Utilities Code, Hurricane Katrina, or any other
  disaster occurring after September 24, 2005.
         (c)  A bid or award subject to the requirements of this
  section must include the following statement:
         "Under Section 2261.053, Government Code, the contractor
  certifies that the individual or business entity named in this bid
  or contract is not ineligible to receive the specified contract and
  acknowledges that this contract may be terminated and payment
  withheld if this certification is inaccurate."
         (d)  If a state agency determines that an individual or
  business entity holding a state contract was ineligible to have the
  bid accepted or contract awarded under Subsection (b), the state
  agency may immediately terminate the contract without further
  obligation to the contractor.
         (e)  This section does not create a cause of action to
  contest a bid or award of a state contract.
         SECTION 4.  The changes in law made by this Act apply only in
  relation to a state contract for which the request for bids or
  proposals or other applicable expressions of interest are made
  public on or after the effective date of this Act.
         SECTION 5.  This Act takes effect September 1, 2007.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 608 passed the Senate on
  March 28, 2007, by the following vote:  Yeas 30, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 608 passed the House on
  May 17, 2007, by the following vote:  Yeas 143, Nays 0, two
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor