CHE(LEGAL) - PURCHASING AND ACQUISITION: VENDOR DISCLOSURES AND CONTRACTS

Note: For additional legal requirements applicable to purchases with federal funds, see CBB.

Required Vendor Disclosures

Disclosure of Interested Parties

  1. Requires an action or vote by the board before the contract may be signed;
  2. Has a value of at least $1 million; or
  3. Is for services that would require a person to register as a lobbyist under Government Code Chapter 305.

Exclusions

  1. A publicly traded business entity, including a wholly owned subsidiary of the entity;
  2. An electric utility, as defined by Utilities Code 31.002; or
  3. A gas utility, as defined by Utilities Code 121.001.

Required Form

Deadline

Contract Changes

  1. A disclosure of interested parties form was not filed for the existing contract; and either the changed contract requires an action or vote by the board or the value of the changed contract is at least $1 million; or
  2. The business entity submitted a disclosure of interested parties form to the district that is a party to the existing contract; and either there is a change to the disclosure; or the changed contract requires an action or vote by the board; or the value of the changed contract is at least $1 million greater than the value of the existing contract.

Definitions

  1. An ownership interest or participating interest in a business entity by virtue of units, percentage, shares, stock, or otherwise that exceeds ten percent;
  2. Membership on the board of directors or other governing body of a business entity of which the board or other governing body is composed of not more than ten members; or
  3. Service as an officer of a business entity that has four or fewer officers, or service as one of the four officers most highly compensated by a business entity that has more than four officers. This provision does not apply to an officer of a publicly held business entity or its wholly owned subsidiaries.

Conflict of Interest Questionnaire

  • Definitions;
  • Conflicts disclosure statements required to be filed by certain local government officers, including vendors who are also local government officers; and
  • Internet posting requirements for conflicts disclosure statements and questionnaires.
  1. Has an employment or other business relationship with a local government officer of the district, or a family member of the officer, described by Local Government Code 176.003(a)(2)(A);
  2. Has given a local government officer of the district, or a family member of the officer, one or more gifts with the aggregate value specified by Local Government Code 176.003(a)(2)(B), excluding any gift described by Local Government Code 176.003(a-1); or
  3. Has a family relationship with a local government officer of the district.
  1. The date that the vendor:
    1. Begins discussions or negotiations to enter into a contract with a district;
    2. Submits to the district an application, response to a request for proposals or bids, correspondence, or another writing related to a potential contract with the district; or
  2. The date the vendor becomes aware:
    1. Of an employment or other business relationship with a local government officer, or a family member of the officer described by Local Government Code 176.006(a);
    2. That the person has given one or more gifts described by Local Government Code 176.006(a); or
    3. Of a family relationship with a local government officer.

Updating Incomplete or Inaccurate Questionnaires

Validity of Contract

Required Contract Provisions

No Israel Boycott

  1. Is between a district and a company with ten or more full-time employees; and
  2. Has a value of $100,000 or more that is to be paid wholly or partly from public funds of the district.

Retention of Contracting Information

Application

  1. Has a stated expenditure of at least $1 million in public funds for the purchase of goods or services by the district; or
  2. Results in the expenditure of at least $1 million in public funds for the purchase of goods or services by the district in a fiscal year of the district.

Requirements

  1. Preserve all contracting information related to the contract as provided by the records retention requirements applicable to the district for the duration of the contract;
  2. Promptly provide to the district any contracting information related to the contract that is in the custody or possession of the entity on request of the district; and
  3. On completion of the contract, either:
    1. Provide at no cost to the district all contracting information related to the contract that is in the custody or possession of the entity; or
    2. Preserve the contracting information related to the contract as provided by the records retention requirements applicable to the district.

Bid and Contract Language

Notice of Noncompliance

  1. Be in writing;
  2. State the requirement that the entity has violated; and
  3. Unless the exception described below applies, advise the entity that the board may terminate the contract without further obligation to the entity if the entity does not cure the violation on or before the tenth business day after the date the board provides the notice.

Contract Termination

  1. The board provides the required notice to the entity that is party to the contract;
  2. The contracting entity does not cure the violation in the prescribed period;
  3. The board determines that the contracting entity has intentionally or knowingly failed to comply with a requirement of Government Code Chapter 552, Subchapter J; and
  4. The board determines that the entity has not taken adequate steps to ensure future compliance with the requirements of that subchapter.
  1. The entity produces contracting information requested by the board that is in the custody or possession of the entity not later than the tenth business day after the date the board makes the request; and
  2. The entity establishes a records management program to enable the entity to comply with Government Code Chapter 552, Subchapter J.
Exception

Prohibitions

Entertainment Event Contracts

Taxpayer Resource Transactions

  1. Common ownership, management, or control between the parties to the relationship;
  2. A franchise granted by the person or entity to the affiliate; or
  3. The granting or extension of a license or other agreement authorizing the affiliate to use the other person's or entity's brand name, trademark, service mark, or other registered identification mark.

Lobbying Restriction—Tobacco Education Grant Funds

  1. Lobbying expenses incurred by the district;
  2. A person or entity that is required to register with the Texas Ethics Commission under Government Code Chapter 305 (Registration of Lobbyists);
  3. Any partner, employee, employer, relative, contractor, consultant, or related entity of a person or entity described by item 2; or
  4. A person or entity who has been hired to represent associations or other entities for the purpose of affecting the outcome of legislation, agency rules, ordinances, or other government policies.

Prohibited Contracts

Bullard ISD

CHE(LEGAL)-P

UPDATE 117

DATE ISSUED: 6/8/2021