reglab/statecodes huggingface dataset:
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2259 - Self-Insurance by Governmental Units › Subchapter C. Risk Retention Groups › Section 2259.063. Payment Source for Group: Local Government

Sec. 2259.063.  PAYMENT SOURCE FOR GROUP:  LOCAL GOVERNMENT.  (a)  A local government may make a payment under a risk retention group agreement from proceeds of taxes imposed by and revenues of the local government, including:
(1)  ad valorem, sales and use, and hotel occupancy taxes;
(2)  revenue derived by the local government from any system or other specified source;  or
(3)  any combination of taxes and revenue.
(b)  A local government that does not have authority to impose ad valorem taxes for payment of contractual debts may make a payment under a risk retention group agreement from an annual appropriation of proceeds of ad valorem taxes the local government is authorized to impose.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 5, eff. Sept. 1, 1999.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2260 - Resolution of Certain Contract Claims Against the State › Subchapter A. General Provisions › Section 2260.001. Definitions

Sec. 2260.001.  DEFINITIONS.  In this chapter:
(1)  "Contract" means a written contract between a unit of state government and a contractor for goods or services, or for a project as defined by Section 2166.001.  The term does not include a contract subject to Section 201.112, Transportation Code.
(2)  "Contractor" means an independent contractor who has entered into a contract directly with a unit of state government.  The term does not include:
(A)  a contractor's subcontractor, officer, employee, agent, or other person furnishing goods or services to a contractor;
(B)  an employee of a unit of state government;  or
(C)  a student at an institution of higher education.
(3)  "Institution of higher education" has the meaning assigned by Section 61.003, Education Code.
(4)  "Unit of state government" means the state or an agency, department, commission, bureau, board, office, council, court, or other entity that is in any branch of state government and that is created by the constitution or a statute of this state, including a university system or institution of higher education.  The term does not include a county, municipality, court of a county or municipality, special purpose district, or other political subdivision of this state.
Added by Acts 1999, 76th Leg., ch. 1352, Sec. 9, eff. Aug. 30, 1999.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2260 - Resolution of Certain Contract Claims Against the State › Subchapter A. General Provisions › Section 2260.002. Applicability

Sec. 2260.002.  APPLICABILITY.  This chapter does not apply to:
(1)  a claim for personal injury or wrongful death arising from the breach of a contract;
(2)  a contract executed or awarded on or before August 30, 1999; or
(3)  a claim for breach of contract to which Chapter 114, Civil Practice and Remedies Code, applies.
Added by Acts 1999, 76th Leg., ch. 1352, Sec. 9, eff. Aug. 30, 1999.  Amended by Acts 2001, 77th Leg., ch. 1422, Sec. 14.07, eff. Sept. 1, 2001.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 1260 (H.B. 586), Sec. 2, eff. September 1, 2013.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2260 - Resolution of Certain Contract Claims Against the State › Subchapter A. General Provisions › Section 2260.003. Damages

Sec. 2260.003.  DAMAGES.  (a)  The total amount of money recoverable on a claim for breach of contract under this chapter may not, after deducting the amount specified in Subsection (b), exceed an amount equal to the sum of:
(1)  the balance due and owing on the contract price;
(2)  the amount or fair market value of orders or requests for additional work made by a unit of state government to the extent that the orders or requests for additional work were actually performed; and
(3)  any delay or labor-related expense incurred by the contractor as a result of an action of or a failure to act by the unit of state government or a party acting under the supervision or control of the unit of state government.
(b)  Any amount owed the unit of state government for work not performed under a contract or in substantial compliance with its terms shall be deducted from the amount in Subsection (a).
(c)  Any award of damages under this chapter may not include:
(1)  consequential or similar damages, except delays or labor-related expenses described by Subsection (a)(3);
(2)  exemplary damages;
(3)  any damages based on an unjust enrichment theory;
(4)  attorney's fees; or
(5)  home office overhead.
(d)  Notwithstanding Subsection (c), an award of damages under this chapter may include attorney's fees if:
(1)  the claim is for breach of a written contract for:
(A)  engineering, architectural, or construction services; or
(B)  materials related to the services described by Paragraph (A); and
(2)  the amount in controversy is less than $250,000, excluding penalties, costs, expenses, prejudgment interest, and attorney's fees.
Added by Acts 1999, 76th Leg., ch. 1352, Sec. 9, eff. Aug. 30, 1999.  Amended by Acts 2001, 77th Leg., ch. 1272, Sec. 8.01, eff. June 15, 2001;  Acts 2001, 77th Leg., ch. 1422, Sec. 14.08, eff. Sept. 1, 2001.
Amended by:
Acts 2005, 79th Leg., Ch. 988 (H.B. 1940), Sec. 1, eff. September 1, 2005.
Acts 2017, 85th Leg., R.S., Ch. 840 (H.B. 2121), Sec. 1, eff. June 15, 2017.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2260 - Resolution of Certain Contract Claims Against the State › Subchapter A. General Provisions › Section 2260.004. Required Contract Provision

Sec. 2260.004.  REQUIRED CONTRACT PROVISION.  (a)  Each unit of state government that enters into a contract to which this chapter applies shall include as a term of the contract a provision stating that the dispute resolution process used by the unit of state government under this chapter must be used to attempt to resolve a dispute arising under the contract.
(b)  The attorney general shall provide assistance to a unit of state government in developing the contract provision required by this section.
Added by Acts 1999, 76th Leg., ch. 1352, Sec. 9, eff. Aug. 30, 1999.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2260 - Resolution of Certain Contract Claims Against the State › Subchapter A. General Provisions › Section 2260.005. Exclusive Procedure

Sec. 2260.005.  EXCLUSIVE PROCEDURE.  Subject to Section 2260.007, the procedures contained in this chapter are exclusive and required prerequisites to suit in accordance with Chapter 107, Civil Practice and Remedies Code.  This chapter does not prevent a contractor sued by a unit of state government from asserting a counterclaim or right of offset against the unit of state government in the court in which the unit of state government files the suit.
Added by Acts 1999, 76th Leg., ch. 1352, Sec. 9, eff. Aug. 30, 1999.  Amended by Acts 2001, 77th Leg., ch. 1158, Sec. 72, eff. June 15, 2001;  Acts 2001, 77th Leg., ch. 1272, Sec. 8.02, eff. June 15, 2001;  Acts 2001, 77th Leg., ch. 1422, Sec. 14.09, eff. Sept. 1, 2001.
Amended by:
Acts 2005, 79th Leg., Ch. 988 (H.B. 1940), Sec. 2, eff. September 1, 2005.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2260 - Resolution of Certain Contract Claims Against the State › Subchapter A. General Provisions › Section 2260.006. Sovereign Immunity

Sec. 2260.006.  SOVEREIGN IMMUNITY.  This chapter does not waive sovereign immunity to suit or liability.
Added by Acts 1999, 76th Leg., ch. 1352, Sec. 9, eff. Aug. 30, 1999.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2260 - Resolution of Certain Contract Claims Against the State › Subchapter A. General Provisions › Section 2260.007. Legislative Authority Retained; Interpretation of Chapter

Sec. 2260.007.  LEGISLATIVE AUTHORITY RETAINED;  INTERPRETATION OF CHAPTER.  (a) Notwithstanding Section 2260.005, the legislature retains the authority to deny or grant a waiver of immunity to suit against a unit of state government by statute, resolution, or any other means the legislature may determine appropriate.
(b)  This chapter does not and may not be interpreted to:
(1)  divest the legislature of the authority to grant permission to sue a unit of state government on the terms, conditions, and procedures that the legislature may specify in the measure granting the permission;
(2)  require that the legislature, in granting or denying permission to sue a unit of state government, comply with this chapter;  or
(3)  limit in any way the effect of a legislative grant of permission to sue a unit of state government unless the grant itself provides that this chapter may have that effect.
Added by Acts 2001, 77th Leg., ch. 1158, Sec. 73, eff. June 15, 2001;  Acts 2001, 77th Leg., ch. 1272, Sec. 8.03, eff. June 15, 2001;  Acts 2001, 77th Leg., ch. 1422, Sec. 14.10, eff. Sept. 1, 2001.  Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 9.021, eff. Sept. 1, 2003.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2260 - Resolution of Certain Contract Claims Against the State › Subchapter B. Negotiation of Claim › Section 2260.051. Claim for Breach of Contract; Notice

Sec. 2260.051.  CLAIM FOR BREACH OF CONTRACT;  NOTICE.  (a)  A contractor may make a claim against a unit of state government for breach of a contract between the unit of state government and the contractor.  The unit of state government may assert a counterclaim against the contractor.
(b)  A contractor must provide written notice to the unit of state government of a claim for breach of contract not later than the 180th day after the date of the event giving rise to the claim.
(c)  The notice must state with particularity:
(1)  the nature of the alleged breach;
(2)  the amount the contractor seeks as damages;  and
(3)  the legal theory of recovery.
(d)  A unit of state government must assert, in a writing delivered to the contractor, any counterclaim not later than the 60th day after the date of notice under Subsection (b).  A unit of state government that does not comply with this subsection waives the right to assert the counterclaim.
Added by Acts 1999, 76th Leg., ch. 1352, Sec. 9, eff. Aug. 30, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 988 (H.B. 1940), Sec. 3, eff. September 1, 2005.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2260 - Resolution of Certain Contract Claims Against the State › Subchapter B. Negotiation of Claim › Section 2260.052. Negotiation

Sec. 2260.052.  NEGOTIATION.
(a)  The chief administrative officer or, if designated in the contract, another officer of the unit of state government shall examine the claim and any counterclaim and negotiate with the contractor in an effort to resolve them.  The negotiation must begin not later than the 120th day after the date the claim is received.
(b)  Repealed by Acts 2005, 79th Leg., Ch. 988, Sec. 8, eff. September 1, 2005.
(c)  Each unit of state government with rulemaking authority shall develop rules to govern the negotiation and mediation of a claim under this section.  If a unit of state government does not have rulemaking authority, that unit shall follow the rules adopted by the attorney general.  A model rule for negotiation and mediation under this chapter shall be provided for voluntary adoption by units of state government through the coordinated efforts of the State Office of Administrative Hearings and the office of the attorney general.
Added by Acts 1999, 76th Leg., ch. 1352, Sec. 9, eff. Aug. 30, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 988 (H.B. 1940), Sec. 4, eff. September 1, 2005.
Acts 2005, 79th Leg., Ch. 988 (H.B. 1940), Sec. 8, eff. September 1, 2005.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2260 - Resolution of Certain Contract Claims Against the State › Subchapter B. Negotiation of Claim › Section 2260.053. Partial Resolution of Claim

Sec. 2260.053.  PARTIAL RESOLUTION OF CLAIM.  (a)  If the negotiation under Section 2260.052 results in the resolution of some disputed issues by agreement or in a settlement, the parties shall reduce the agreement or settlement to writing and each party shall sign the agreement or settlement.
(b)  A partial settlement or resolution of a claim does not waive a party's rights under this chapter as to the parts of the claim that are not resolved.
Added by Acts 1999, 76th Leg., ch. 1352, Sec. 9, eff. Aug. 30, 1999.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2260 - Resolution of Certain Contract Claims Against the State › Subchapter B. Negotiation of Claim › Section 2260.054. Payment of Claim From Appropriated Funds

Sec. 2260.054.  PAYMENT OF CLAIM FROM APPROPRIATED FUNDS.  A unit of state government may pay a claim resolved in accordance with this subchapter only from money appropriated to it for payment of contract claims or for payment of the contract that is the subject of the claim.  If money previously appropriated for payment of contract claims or payment of the contract is insufficient to pay the claim or settlement, the balance of the claim may be paid only from money appropriated by the legislature for payment of the claim.
Added by Acts 1999, 76th Leg., ch. 1352, Sec. 9, eff. Aug. 30, 1999.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2260 - Resolution of Certain Contract Claims Against the State › Subchapter B. Negotiation of Claim › Section 2260.055. Incomplete Resolution

Sec. 2260.055.  INCOMPLETE RESOLUTION.  If a claim is not entirely resolved under Section 2260.052 on or before the 270th day after the date the claim is filed with the unit of state government, unless the parties agree in writing to an extension of time, the contractor may file a request for a hearing under Subchapter C.
Added by Acts 1999, 76th Leg., ch. 1352, Sec. 9, eff. Aug. 30, 1999.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2260 - Resolution of Certain Contract Claims Against the State › Subchapter B. Negotiation of Claim › Section 2260.056. Mediation

Sec. 2260.056.  MEDIATION.  (a)  Before the 120th day after the date the claim is filed with the unit of state government and before the expiration of any extension of time under Section 2260.055, the parties may agree to mediate a claim made under this chapter.
(b)  The mediation shall be conducted in accordance with rules adopted under Section 2260.052(c).
Added by Acts 1999, 76th Leg., ch. 1352, Sec. 9, eff. Aug. 30, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 988 (H.B. 1940), Sec. 5, eff. September 1, 2005.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2260 - Resolution of Certain Contract Claims Against the State › Subchapter C. Contested Case Hearing › Section 2260.101. Definition

Sec. 2260.101.  DEFINITION.  In this subchapter, "office" means the State Office of Administrative Hearings.
Added by Acts 1999, 76th Leg., ch. 1352, Sec. 9, eff. Aug. 30, 1999.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2260 - Resolution of Certain Contract Claims Against the State › Subchapter C. Contested Case Hearing › Section 2260.102. Request for Hearing

Sec. 2260.102.  REQUEST FOR HEARING.  (a)  If a contractor is not satisfied with the results of negotiation with a unit of state government under Section 2260.052, the contractor may file a request for a hearing with the unit of state government.
(b)  The request must:
(1)  state the factual and legal basis for the claim;  and
(2)  request that the claim be referred to the State Office of Administrative Hearings for a contested case hearing.
(c)  On receipt of a request under Subsection (a), the unit of state government shall refer the claim to the State Office of Administrative Hearings for a contested case hearing under Chapter 2001, Government Code, as to the issues raised in the request.
Added by Acts 1999, 76th Leg., ch. 1352, Sec. 9, eff. Aug. 30, 1999.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2260 - Resolution of Certain Contract Claims Against the State › Subchapter C. Contested Case Hearing › Section 2260.103. Hearing Fee

Sec. 2260.103.  HEARING FEE.  (a)  The chief administrative law judge of the office may set a fee for a hearing before the office under this subchapter.
(b)  The chief administrative law judge of the office shall set the fee in an amount that:
(1)  is not less than $250;  and
(2)  allows the office to recover all or a substantial part of its costs in holding hearings.
(c)  The chief administrative law judge of the office by rule may establish a graduated fee scale, increasing the fee in relation to the amount in controversy.
(d)  The office may:
(1)  assess the fee against the party who does not prevail in the hearing;  or
(2)  apportion the fee against the parties in an equitable manner.
Added by Acts 1999, 76th Leg., ch. 1352, Sec. 9, eff. Aug. 30, 1999.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2260 - Resolution of Certain Contract Claims Against the State › Subchapter C. Contested Case Hearing › Section 2260.104. Hearing

Sec. 2260.104.  HEARING.  (a)  An administrative law judge of the office shall conduct a hearing in accordance with the procedures adopted by the chief administrative law judge of the office.
(b)  Within a reasonable time after the conclusion of the hearing, the administrative law judge shall issue a written decision containing the administrative law judge's findings and recommendations.
(c)  The administrative law judge shall base the decision on the pleadings filed with the office and the evidence received.
(d)  The decision must include:
(1)  the findings of fact and conclusions of law on which the administrative law judge's decision is based;  and
(2)  a summary of the evidence.
(e)  In a contested case hearing under this subchapter:
(1)  the decision may not be appealed except for abuse of discretion; and
(2)  the state agency may not change the finding of fact or conclusion of law, nor vacate or modify an order as provided in Section 2001.058(e).
(f)  Subchapter G, Chapter 2001, does not apply to a hearing under this section.
Added by Acts 1999, 76th Leg., ch. 1352, Sec. 9, eff. Aug. 30, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 988 (H.B. 1940), Sec. 6, eff. September 1, 2005.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2260 - Resolution of Certain Contract Claims Against the State › Subchapter C. Contested Case Hearing › Section 2260.105. Payment of Claim

Sec. 2260.105.  PAYMENT OF CLAIM.  (a)  The unit of state government shall pay the amount of the claim or part of the claim if:
(1)  the administrative law judge finds, by a preponderance of the evidence, that under the laws of this state the claim or part of the claim is valid;  and
(2)  the total amount of damages, after taking into account any counterclaim, is less than $250,000.
(a-1)  The unit of state government shall pay that part of the claim that is less than $250,000 if:
(1)  the administrative law judge finds, by a preponderance of the evidence, that under the laws of this state the claim or part of the claim is valid; and
(2)  the total amount of the damages, after taking into account any counterclaim, equals or exceeds $250,000.
(b)  A unit of state government shall pay a claim under this subchapter from money appropriated to it for payment of contract claims or for payment of the contract that is the subject of the claim.  If money previously appropriated for payment of contract claims or payment of the contract is insufficient to pay the claim, the balance of the claim may be paid only from money appropriated by the legislature for payment of the claim.
Added by Acts 1999, 76th Leg., ch. 1352, Sec. 9, eff. Aug. 30, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 988 (H.B. 1940), Sec. 7, eff. September 1, 2005.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2260 - Resolution of Certain Contract Claims Against the State › Subchapter C. Contested Case Hearing › Section 2260.1055. Report and Recommendation to Legislature

Sec. 2260.1055.  REPORT AND RECOMMENDATION TO LEGISLATURE.  (a)  If, after a hearing, the administrative law judge determines that a claim involves damages of $250,000 or more, the administrative law judge shall issue a written report containing the administrative law judge's findings and recommendations to the legislature.
(b)  The administrative law judge may recommend that the legislature:
(1)  appropriate money to pay the claim or part of the claim if the administrative law judge finds, by a preponderance of the evidence, that under the laws of this state the claim or part of the claim is valid;  or
(2)  not appropriate money to pay the claim and that consent to suit under Chapter 107, Civil Practice and Remedies Code, be denied.
Added by Acts 1999, 76th Leg., ch. 1352, Sec. 9, eff. Aug. 30, 1999.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2260 - Resolution of Certain Contract Claims Against the State › Subchapter C. Contested Case Hearing › Section 2260.106. Prejudgment Interest

Sec. 2260.106.  PREJUDGMENT INTEREST.  Chapter 304, Finance Code, applies to a judgment awarded to a claimant under this chapter, except that the applicable rate of interest may not exceed six percent.
Added by Acts 1999, 76th Leg., ch. 1352, Sec. 9, eff. Aug. 30, 1999.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2260 - Resolution of Certain Contract Claims Against the State › Subchapter C. Contested Case Hearing › Section 2260.107. Execution on State Property Not Authorized

Sec. 2260.107.  EXECUTION ON STATE PROPERTY NOT AUTHORIZED.  This chapter does not authorize execution on property owned by the state or a unit of state government.
Added by Acts 1999, 76th Leg., ch. 1352, Sec. 9, eff. Aug. 30, 1999.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2260 - Resolution of Certain Contract Claims Against the State › Subchapter C. Contested Case Hearing › Section 2260.108. Defense by Attorney General

Sec. 2260.108.  DEFENSE BY ATTORNEY GENERAL.  (a)  The attorney general shall defend a unit of state government in a contested case hearing covered by this chapter.
(b)  The attorney general may settle or compromise the portion of a claim that may result in state liability under this chapter.
Added by Acts 1999, 76th Leg., ch. 1352, Sec. 9, eff. Aug. 30, 1999.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2261 - State Contracting Standards and Oversight › Subchapter A. General Provisions › Section 2261.001. Applicability

Sec. 2261.001.  APPLICABILITY.  (a)  This chapter, other than Subchapter F, applies only to each procurement of goods or services made by a state agency that is neither made by the comptroller nor made under purchasing authority delegated to the agency by or under Section 51.9335 or 73.115, Education Code, or Section 2155.131 or 2155.132.
(b)  This chapter applies to contracts and to contract management activities that are related to the procurements to which it applies.
(c)  The comptroller on request shall determine whether a procurement or type of procurement:
(1)  is made under purchasing authority delegated to an agency by or under Section 2155.131 or 2155.132; or
(2)  is made under some other source of purchasing authority.
(d)  This chapter does not apply to a procurement made by the Texas Department of Transportation or a procurement paid for by local or institutional funds of an institution of higher education.
(e)  Repealed by Acts 2003, 78th Leg., ch. 309, Sec. 7.25.
Added by Acts 1999, 76th Leg., ch. 1498, Sec. 5, eff. Sept. 1, 1999.  Renumbered from Sec. 2259.001 by Acts 2001, 77th Leg., ch. 1420, Sec. 21.001(71), eff. Sept. 1, 2001.  Amended by Acts 2003, 78th Leg., ch. 309, Sec. 7.25, eff. June 18, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 937 (H.B. 3560), Sec. 1.76, eff. September 1, 2007.
Acts 2015, 84th Leg., R.S., Ch. 326 (S.B. 20), Sec. 17, eff. September 1, 2015.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2261 - State Contracting Standards and Oversight › Subchapter A. General Provisions › Section 2261.002. Definitions

Sec. 2261.002.  DEFINITIONS.  In this chapter:
(1)  "Contract" includes a grant, other than a grant made to a school district or a grant made for other academic purposes, under which the recipient of the grant is required to perform a specific act or service, supply a specific type of product, or both.
(2)  "State agency" has the meaning assigned by Section 2151.002.
Added by Acts 1999, 76th Leg., ch. 1498, Sec. 5, eff. Sept. 1, 1999.  Renumbered from Sec. 2259.002 by Acts 2001, 77th Leg., ch. 1420, Sec. 21.001(71), eff. Sept. 1, 2001.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2261 - State Contracting Standards and Oversight › Subchapter A. General Provisions › Section 2261.003. Open Market Purchases

Sec. 2261.003.  OPEN MARKET PURCHASES.  This chapter does not require a state agency to purchase a good or service under contract if the agency is authorized under other law to purchase the good or service on the open market.
Added by Acts 1999, 76th Leg., ch. 1498, Sec. 5, eff. Sept. 1, 1999.  Renumbered from Sec. 2259.003 by Acts 2001, 77th Leg., ch. 1420, Sec. 21.001(71), eff. Sept. 1, 2001.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2261 - State Contracting Standards and Oversight › Subchapter B. Contractor Selection › Section 2261.051. Competitive Contractor Selection Procedures

Sec. 2261.051.  COMPETITIVE CONTRACTOR SELECTION PROCEDURES.  Each state agency shall assess its contractor selection procedures and use competitive selection procedures to the greatest extent possible when selecting contractors.
Added by Acts 1999, 76th Leg., ch. 1498, Sec. 5, eff. Sept. 1, 1999.  Renumbered from Sec. 2259.051 by Acts 2001, 77th Leg., ch. 1420, Sec. 21.001(71), eff. Sept. 1, 2001.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2261 - State Contracting Standards and Oversight › Subchapter B. Contractor Selection › Section 2261.052. Determining Lowest and Best Bid or Proposal

Sec. 2261.052.  DETERMINING LOWEST AND BEST BID OR PROPOSAL.  (a)  In determining the lowest and best bid or proposal, a state agency shall consider:
(1)  the vendor's price to provide the good or service;
(2)  the probable quality of the offered good or service;  and
(3)  the quality of the vendor's past performance in contracting with the agency, with other state entities, or with private sector entities.
(b)  This section does not apply to a procurement covered by Section 2155.144.
Added by Acts 1999, 76th Leg., ch. 1498, Sec. 5, eff. Sept. 1, 1999.  Renumbered from Sec. 2259.052 by Acts 2001, 77th Leg., ch. 1420, Sec. 21.001(71), eff. Sept. 1, 2001.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2261 - State Contracting Standards and Oversight › Subchapter B. Contractor Selection › Section 2261.0525. Certification of Vendor Assessment Process

Sec. 2261.0525.  CERTIFICATION OF VENDOR ASSESSMENT PROCESS.  (a)  Before a state agency may award a contract to a vendor, the agency's procurement director must review the process and all documents used by the agency to assess each vendor who responded to the solicitation.  The procurement director must certify in writing that:
(1)  the agency assessed each vendor's response to the solicitation using the evaluation criteria published in the solicitation or, if applicable, the written evaluation criteria established by the agency; and
(2)  the final calculation of scoring of responses was accurate.
(b)  A state agency shall justify in writing any change in the scoring of a vendor that occurs following the initial assessment and scoring of responses.  The written justification must be reviewed by the agency's procurement director.  The procurement director shall certify in writing that the change in scoring was appropriate.
(c)  A state agency's procurement director may delegate to a person whose position in the agency's procurement office is at least equal to the position of contract manager the certification authority under this section if the agency has met the conditions prescribed by the comptroller under Section 2262.053(h).
(d)  A written certification or justification required by this section must be placed in the contract file.
Added by Acts 2019, 86th Leg., R.S., Ch. 953 (S.B. 65), Sec. 23, eff. September 1, 2019.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2261 - State Contracting Standards and Oversight › Subchapter B. Contractor Selection › Section 2261.053. Prohibition on Certain Bids and Contracts

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.
Added by Acts 2007, 80th Leg., R.S., Ch. 1302 (S.B. 608), Sec. 3, eff. September 1, 2007.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2261 - State Contracting Standards and Oversight › Subchapter B. Contractor Selection › Section 2261.054. Statement Regarding Vendor Selection Required for Certain Contract Awards

Sec. 2261.054.  STATEMENT REGARDING VENDOR SELECTION REQUIRED FOR CERTAIN CONTRACT AWARDS.  If a state agency awards a contract to a vendor who did not receive the highest score in an assessment process certified under Section 2261.0525, the agency shall state in writing in the contract file the reasons for making the award.
Added by Acts 2019, 86th Leg., R.S., Ch. 953 (S.B. 65), Sec. 23, eff. September 1, 2019.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2261 - State Contracting Standards and Oversight › Subchapter C. Contract Provisions › Section 2261.101. Remedies and Sanctions Schedules

Sec. 2261.101.  REMEDIES AND SANCTIONS SCHEDULES.  (a)  Each state agency shall create and incorporate in each of its contracts for goods or services that are subject to this chapter a remedies schedule, a graduated sanctions schedule, or both, for breach of the contract or substandard performance under the contract.
(b)  State agencies shall design fair and feasible standards that will hold contractors accountable for breach of contract or substandard performance under a contract without diminishing the number of able providers who are willing to contract with the state.
Added by Acts 1999, 76th Leg., ch. 1498, Sec. 5, eff. Sept. 1, 1999.  Renumbered from Sec. 2259.101 by Acts 2001, 77th Leg., ch. 1420, Sec. 21.001(71), eff. Sept. 1, 2001.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2261 - State Contracting Standards and Oversight › Subchapter C. Contract Provisions › Section 2261.102. Liability Insurance Coverage Required

Sec. 2261.102.  LIABILITY INSURANCE COVERAGE REQUIRED.  Each state agency shall, when feasible, include provisions in each of its contracts for goods or services that are subject to this chapter that require the contractor to carry director or officer liability insurance coverage in an amount not less than the value of the contract that is sufficient to protect the interests of the state in the event an actionable act or omission by a director or officer of the contractor damages the state's interests.
Added by Acts 1999, 76th Leg., ch. 1498, Sec. 5, eff. Sept. 1, 1999.  Renumbered from Sec. 2259.102 by Acts 2001, 77th Leg., ch. 1420, Sec. 21.001(71), eff. Sept. 1, 2001.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2261 - State Contracting Standards and Oversight › Subchapter D. Payment and Reimbursement Methods › Section 2261.151. Reevaluation of Payment and Reimbursement Rates

Sec. 2261.151.  REEVALUATION OF PAYMENT AND REIMBURSEMENT RATES.  (a)  To ensure that its payment and reimbursement methods and rates are appropriate, each state agency that makes procurements to which this chapter applies shall reevaluate at least biennially its payment and reimbursement methods and rates, especially methods and rates based on historical funding levels or on a formula established by agency rule rather than being based on reasonable and necessary actual costs incurred.
(b)  A state agency shall submit formal rate reevaluation information to the Legislative Budget Board and the comptroller on request.
Added by Acts 1999, 76th Leg., ch. 1498, Sec. 5, eff. Sept. 1, 1999.  Renumbered from Sec. 2259.151 by Acts 2001, 77th Leg., ch. 1420, Sec. 21.001(71), eff. Sept. 1, 2001.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2261 - State Contracting Standards and Oversight › Subchapter E. Contractor Oversight and Liability › Section 2261.201. Double-Billing

Sec. 2261.201.  DOUBLE-BILLING.  Each state agency that makes procurements to which this chapter applies shall design and implement procedures to detect and report double-billing by contractors.
Added by Acts 1999, 76th Leg., ch. 1498, Sec. 5, eff. Sept. 1, 1999.  Renumbered from Sec. 2259.201 by Acts 2001, 77th Leg., ch. 1420, Sec. 21.001(71), eff. Sept. 1, 2001.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2261 - State Contracting Standards and Oversight › Subchapter E. Contractor Oversight and Liability › Section 2261.202. Contract Monitoring Responsibilities

Sec. 2261.202.  CONTRACT MONITORING RESPONSIBILITIES.  As one of its contract management policies, each state agency that makes procurements to which this chapter applies shall establish and adopt by rule a policy that clearly defines the contract monitoring roles and responsibilities, if any, of internal audit staff and other inspection, investigative, or audit staff.
Added by Acts 1999, 76th Leg., ch. 1498, Sec. 5, eff. Sept. 1, 1999.  Renumbered from Sec. 2259.202 by Acts 2001, 77th Leg., ch. 1420, Sec. 21.001(71), eff. Sept. 1, 2001.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2261 - State Contracting Standards and Oversight › Subchapter E. Contractor Oversight and Liability › Section 2261.203. Comparable Costs

Sec. 2261.203.  COMPARABLE COSTS.  Each state agency that makes procurements to which this chapter applies shall monitor performance under a contract to verify that comparable costs are being charged for comparable goods and services.
Added by Acts 1999, 76th Leg., ch. 1498, Sec. 5, eff. Sept. 1, 1999.  Renumbered from Sec. 2259.203 by Acts 2001, 77th Leg., ch. 1420, Sec. 21.001(71), eff. Sept. 1, 2001.  Amended by Acts 2003, 78th Leg., ch. 785, Sec. 43, eff. Sept. 1, 2003.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2261 - State Contracting Standards and Oversight › Subchapter E. Contractor Oversight and Liability › Section 2261.204. Liability Provisions

Sec. 2261.204.  LIABILITY PROVISIONS.  (a)  Each state agency shall include in the contract file for each of its contracts for goods or services subject to this chapter a written explanation of the agency's decision to include or not include in the contract a provision for liquidated damages or another form of liability for damages caused by the contractor.
(b)  A contract file must also include, if applicable, a written justification for any provision in the contract that limits the liability of a contractor for damages.
(c)  If an extension of a state agency's contract described by Subsection (a) modifies a provision for liquidated damages or another provision relating to a contractor's liability for damages, the agency must amend the written explanation or justification required by this section to include a justification for the modification.
Added by Acts 2019, 86th Leg., R.S., Ch. 953 (S.B. 65), Sec. 25, eff. September 1, 2019.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2261 - State Contracting Standards and Oversight › Subchapter F. Ethics, Reporting, and Approval Requirements for Certain Contracts › Section 2261.251. Applicability of Subchapter

Sec. 2261.251.  APPLICABILITY OF SUBCHAPTER.  (a)  Notwithstanding Section 2261.001, this subchapter applies to the Texas Department of Transportation and to an institution of higher education acquiring goods or services under Section 51.9335 or 73.115, Education Code.
(b)  This subchapter does not apply to a contract of the Employees Retirement System of Texas except for a contract with a nongovernmental entity for claims administration of a group health benefit plan under Subtitle H, Title 8, Insurance Code.
Added by Acts 2015, 84th Leg., R.S., Ch. 326 (S.B. 20), Sec. 18, eff. September 1, 2015.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 953 (S.B. 65), Sec. 26, eff. September 1, 2019.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2261 - State Contracting Standards and Oversight › Subchapter F. Ethics, Reporting, and Approval Requirements for Certain Contracts › Section 2261.252. Disclosure of Potential Conflicts of Interest; Certain Contracts Prohibited

Sec. 2261.252.  DISCLOSURE OF POTENTIAL CONFLICTS OF INTEREST; CERTAIN CONTRACTS PROHIBITED.  (a)  Each state agency employee or official who is involved in procurement or in contract management for a state agency shall disclose to the agency any potential conflict of interest specified by state law or agency policy that is known by the employee or official with respect to any contract with a private vendor or bid for the purchase of goods or services from a private vendor by the agency.
(a-1)  A state agency employee or official is required to disclose under Subsection (a) any potential conflict of interest specified by state law or agency policy that is known by the employee or official at any time during:
(1)  the procurement process, from the initial request for bids for the purchase of goods or services from a private vendor until the completed final delivery of the goods or services; or
(2)  the term of a contract with a private vendor.
(b)  A state agency may not enter into a contract for the purchase of goods or services with a private vendor with whom any of the following agency employees or officials have a financial interest:
(1)  a member of the agency's governing body;
(2)  the governing official, executive director, general counsel, chief procurement officer, or procurement director of the agency; or
(3)  a family member related to an employee or official described by Subdivision (1) or (2) within the second degree by affinity or consanguinity.
(c)  A state agency employee or official has a financial interest in a person if the employee or official:
(1)  owns or controls, directly or indirectly, an ownership interest of at least one percent in the person, including the right to share in profits, proceeds, or capital gains; or
(2)  could reasonably foresee that a contract with the person could result in a financial benefit to the employee or official.
(d)  A financial interest prohibited by this section does not include a retirement plan, a blind trust, insurance coverage, or an ownership interest of less than one percent in a corporation.
(e)  This section applies only to a contract for the purchase of goods or services solicited through a purchase order if the amount of the purchase order exceeds $25,000.
(f)  Section 51.923, Education Code, governs the conflicts of interest of the members of the governing board of an institution of higher education, as those terms are defined by Section 61.003, Education Code, and this section does not apply to those members.
Added by Acts 2015, 84th Leg., R.S., Ch. 326 (S.B. 20), Sec. 18, eff. September 1, 2015.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 556 (S.B. 533), Sec. 9, eff. September 1, 2017.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2261 - State Contracting Standards and Oversight › Subchapter F. Ethics, Reporting, and Approval Requirements for Certain Contracts › Section 2261.253. Required Posting of Certain Contracts; Enhanced Contract and Performance Monitoring

Sec. 2261.253.  REQUIRED POSTING OF CERTAIN CONTRACTS; ENHANCED CONTRACT AND PERFORMANCE MONITORING.  (a)  For each contract for the purchase of goods or services from a private vendor, each state agency shall post on its Internet website:
(1)  each contract the agency enters into, including contracts entered into without inviting, advertising for, or otherwise requiring competitive bidding before selection of the contractor, until the contract expires or is completed;
(2)  the statutory or other authority under which a contract that is not competitively bid under Subdivision (1) is entered into without compliance with competitive bidding procedures; and
(3)  the request for proposals related to a competitively bid contract included under Subdivision (1) until the contract expires or is completed.
(b)  A state agency monthly may post contracts described by Subsection (a) that are valued at less than $15,000.
(c)  Each state agency by rule shall establish a procedure to identify each contract that requires enhanced contract or performance monitoring and submit information on the contract to the agency's governing body or, if the agency is not governed by a multimember governing body, the officer who governs the agency.  The agency's contract management office or procurement director shall immediately notify the agency's governing body or governing official, as appropriate, of any serious issue or risk that is identified with respect to a contract monitored under this subsection.
(d)  This section does not apply to a memorandum of understanding, interagency contract, interlocal agreement, or contract for which there is not a cost.
(e)  A state agency that posts a contract on its Internet website as required under this section shall redact from the posted contract:
(1)  information that is confidential under law;
(2)  information the attorney general determines is excepted from public disclosure under Chapter 552; and
(3)  the social security number of any individual.
(f)  The redaction of information under Subsection (e) does not exempt the information from the requirements of Section 552.021 or 552.221.
(g)  Subsection (a) does not apply to:
(1)  a contract posted on the major contracts database established under Section 322.020; or
(2)  a contract of an institution of higher education that is valued at less than $15,000 and paid with money other than funds appropriated to the institution by this state.
(h)  In this section, "institution of higher education" has the meaning assigned by Section 61.003, Education Code, except that the term does not include a public junior college.
Added by Acts 2015, 84th Leg., R.S., Ch. 326 (S.B. 20), Sec. 18, eff. September 1, 2015.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 556 (S.B. 533), Sec. 10, eff. September 1, 2017.