Section 20.158 - 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.(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 paragraph (1) or (2) of this subsection 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 shall not apply to contracts of the Employees Retirement System of Texas or the Teacher Retirement System of Texas, except for a contract with a nongovernmental entity for claims administration of a group health benefit plan under Insurance Code, Title 8, Subtitle H. Notwithstanding Government Code, § 2261.001, this section applies to the Texas Department of Transportation and to an institution of higher education acquiring goods or services under Education Code, § 51.9335 or § 73.115.34 Tex. Admin. Code § 20.158
Adopted by Texas Register, Volume 42, Number 03, January 20, 2017, TexReg 232, eff. 1/24/2017