|(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
(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
(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.