S.B. No. 943

	AN ACT
	relating to the disclosure of certain contracting information under
	the public information law.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 552.003, Government Code, is amended by
	amending Subdivision (1) and adding Subdivision (7) to read as
	follows:
	(1)  "Governmental body":
	(A)  means:
	(i)  a board, commission, department,
	committee, institution, agency, or office that is within or is
	created by the executive or legislative branch of state government
	and that is directed by one or more elected or appointed members;
	(ii)  a county commissioners court in the
	state;
	(iii)  a municipal governing body in the
	state;
	(iv)  a deliberative body that has
	rulemaking or quasi-judicial power and that is classified as a
	department, agency, or political subdivision of a county or
	municipality;
	(v)  a school district board of trustees;
	(vi)  a county board of school trustees;
	(vii)  a county board of education;
	(viii)  the governing board of a special
	district;
	(ix)  the governing body of a nonprofit
	corporation organized under Chapter 67, Water Code, that provides a
	water supply or wastewater service, or both, and is exempt from ad
	valorem taxation under Section 11.30, Tax Code;
	(x)  a local workforce development board
	created under Section 2308.253;
	(xi)  a nonprofit corporation that is
	eligible to receive funds under the federal community services
	block grant program and that is authorized by this state to serve a
	geographic area of the state; [and]
	(xii)  a confinement facility operated under
	a contract with any division of the Texas Department of Criminal
	Justice;
	(xiii)  a civil commitment housing facility
	owned, leased, or operated by a vendor under contract with the state
	as provided by Chapter 841, Health and Safety Code;
	(xiv)  an entity that receives public funds
	in the current or preceding state fiscal year to manage the daily
	operations or restoration of the Alamo, or an entity that oversees
	such an entity; and
	(xv)  the part, section, or portion of an
	organization, corporation, commission, committee, institution, or
	agency that spends or that is supported in whole or in part by
	public funds; and
	(B)  does not include:
	(i)  the judiciary; or
	(ii)  an economic development entity whose
	mission or purpose is to develop and promote the economic growth of
	a state agency or political subdivision with which the entity
	contracts if:
	(a)  the entity does not receive $1
	million or more in public funds from a single state agency or
	political subdivision in the current or preceding state fiscal
	year; or
	(b)  the entity:
	(1)  either:
	(A)  does not have the
	authority to make decisions or recommendations on behalf of a state
	agency or political subdivision regarding tax abatements or tax
	incentives; or
	(B)  does not require an
	officer of the state agency or political subdivision to hold office
	as a member of the board of directors of the entity;
	(2)  does not use staff or office
	space of the state agency or political subdivision for no or nominal
	consideration, unless the space is available to the public;
	(3)  to a reasonable degree,
	tracks the entity's receipt and expenditure of public funds
	separately from the entity's receipt and expenditure of private
	funds; and
	(4)  provides at least quarterly
	public reports to the state agency or political subdivision
	regarding work performed on behalf of the state agency or political
	subdivision.
	(7)  "Contracting information" means the following
	information maintained by a governmental body or sent between a
	governmental body and a vendor, contractor, potential vendor, or
	potential contractor:
	(A)  information in a voucher or contract relating
	to the receipt or expenditure of public funds by a governmental
	body;
	(B)  solicitation or bid documents relating to a
	contract with a governmental body;
	(C)  communications sent between a governmental
	body and a vendor, contractor, potential vendor, or potential
	contractor during the solicitation, evaluation, or negotiation of a
	contract;
	(D)  documents, including bid tabulations,
	showing the criteria by which a governmental body evaluates each
	vendor, contractor, potential vendor, or potential contractor
	responding to a solicitation and, if applicable, an explanation of
	why the vendor or contractor was selected; and
	(E)  communications and other information sent
	between a governmental body and a vendor or contractor related to
	the performance of a final contract with the governmental body or
	work performed on behalf of the governmental body.
	SECTION 2.  Subchapter B, Chapter 552, Government Code, is
	amended by adding Section 552.0222 to read as follows:
	Sec. 552.0222.  DISCLOSURE OF CONTRACTING INFORMATION.
	(a)  Contracting information is public and must be released unless
	excepted from disclosure under this chapter.
	(b)  The exceptions to disclosure provided by Sections
	552.110 and 552.1101 do not apply to the following types of
	contracting information:
	(1)  a contract described by Section 2261.253(a),
	excluding any information that was properly redacted under
	Subsection (e) of that section;
	(2)  a contract described by Section 322.020(c),
	excluding any information that was properly redacted under
	Subsection (d) of that section;
	(3)  the following contract or offer terms or their
	functional equivalent:
	(A)  any term describing the overall or total
	price the governmental body will or could potentially pay,
	including overall or total value, maximum liability, and final
	price;
	(B)  a description of the items or services to be
	delivered with the total price for each if a total price is
	identified for the item or service in the contract;
	(C)  the delivery and service deadlines;
	(D)  the remedies for breach of contract;
	(E)  the identity of all parties to the contract;
	(F)  the identity of all subcontractors in a
	contract;
	(G)  the affiliate overall or total pricing for a
	vendor, contractor, potential vendor, or potential contractor;
	(H)  the execution dates;
	(I)  the effective dates; and
	(J)  the contract duration terms, including any
	extension options; or
	(4)  information indicating whether a vendor,
	contractor, potential vendor, or potential contractor performed
	its duties under a contract, including information regarding:
	(A)  a breach of contract;
	(B)  a contract variance or exception;
	(C)  a remedial action;
	(D)  an amendment to a contract;
	(E)  any assessed or paid liquidated damages;
	(F)  a key measures report;
	(G)  a progress report; and
	(H)  a final payment checklist.
	(c)  Notwithstanding Subsection (b), information described
	by Subdivisions (3)(A) and (B) of that subsection that relates to a
	retail electricity contract may not be disclosed until the delivery
	start date.
	SECTION 3.  Section 552.104(a), Government Code, is amended
	to read as follows:
	(a)  Information is excepted from the requirements of
	Section 552.021 if a governmental body demonstrates that release of
	the [it is] information [that, if released,] would harm its
	interests by providing an [give] advantage to a competitor or
	bidder in a particular ongoing competitive situation or in a
	particular competitive situation where the governmental body
	establishes the situation at issue is set to reoccur or there is a
	specific and demonstrable intent to enter into the competitive
	situation again in the future.
	SECTION 4.  Section 552.110, Government Code, is amended to
	read as follows:
	Sec. 552.110.  EXCEPTION:  CONFIDENTIALITY OF TRADE SECRETS;
	CONFIDENTIALITY OF CERTAIN COMMERCIAL OR FINANCIAL INFORMATION.
	(a)  In this section, "trade secret" means all forms and types of
	information, including business, scientific, technical, economic,
	or engineering information, and any formula, design, prototype,
	pattern, plan, compilation, program device, program, code, device,
	method, technique, process, procedure, financial data, or list of
	actual or potential customers or suppliers, whether tangible or
	intangible and whether or however stored, compiled, or memorialized
	physically, electronically, graphically, photographically, or in
	writing if:
	(1)  the owner of the trade secret has taken reasonable
	measures under the circumstances to keep the information secret;
	and
	(2)  the information derives independent economic
	value, actual or potential, from not being generally known to, and
	not being readily ascertainable through proper means by, another
	person who can obtain economic value from the disclosure or use of
	the information.
	(b)  Except as provided by Section 552.0222, information [A
	trade secret obtained from a person and privileged or confidential
	by statute or judicial decision] is excepted from the requirements
	of Section 552.021 if it is demonstrated based on specific factual
	evidence that the information is a trade secret.
	(c)  Except as provided by Section 552.0222, commercial
	[(b)  Commercial] or financial information for which it is
	demonstrated based on specific factual evidence that disclosure
	would cause substantial competitive harm to the person from whom
	the information was obtained is excepted from the requirements of
	Section 552.021.
	SECTION 5.  Subchapter C, Chapter 552, Government Code, is
	amended by adding Section 552.1101 to read as follows:
	Sec. 552.1101.  EXCEPTION:  CONFIDENTIALITY OF PROPRIETARY
	INFORMATION. (a)  Except as provided by Section 552.0222,
	information submitted to a governmental body by a vendor,
	contractor, potential vendor, or potential contractor in response
	to a request for a bid, proposal, or qualification is excepted from
	the requirements of Section 552.021 if the vendor, contractor,
	potential vendor, or potential contractor that the information
	relates to demonstrates based on specific factual evidence that
	disclosure of the information would:
	(1)  reveal an individual approach to:
	(A)  work;
	(B)  organizational structure;
	(C)  staffing;
	(D)  internal operations;
	(E)  processes; or
	(F)  discounts, pricing methodology, pricing per
	kilowatt hour, cost data, or other pricing information that will be
	used in future solicitation or bid documents; and
	(2)  give advantage to a competitor.
	(b)  The exception to disclosure provided by Subsection (a)
	does not apply to:
	(1)  information in a voucher or contract relating to
	the receipt or expenditure of public funds by a governmental body;
	or
	(2)  communications and other information sent between
	a governmental body and a vendor or contractor related to the
	performance of a final contract with the governmental body or work
	performed on behalf of the governmental body.
	(c)  The exception to disclosure provided by Subsection (a)
	may be asserted only by a vendor, contractor, potential vendor, or
	potential contractor in the manner described by Section 552.305(b)
	for the purpose of protecting the interests of the vendor,
	contractor, potential vendor, or potential contractor.  A
	governmental body shall decline to release information as provided
	by Section 552.305(a) to the extent necessary to allow a vendor,
	contractor, potential vendor, or potential contractor to assert the
	exception to disclosure provided by Subsection (a).
	SECTION 6.  Section 552.131, Government Code, is amended by
	adding Subsection (b-1) to read as follows:
	(b-1)  An economic development entity whose mission or
	purpose is to develop and promote the economic growth of a state
	agency or political subdivision with which the entity contracts may
	assert the exceptions under this section in the manner described by
	Section 552.305(b) with respect to information that is in the
	economic development entity's custody or control.
	SECTION 7.  Sections 552.305(a) and (d), Government Code,
	are amended to read as follows:
	(a)  In a case in which information is requested under this
	chapter and a person's privacy or property interests may be
	involved, including a case under Section 552.101, [552.104,]
	552.110, 552.1101, [or] 552.114, 552.131, or 552.143, a
	governmental body may decline to release the information for the
	purpose of requesting an attorney general decision.
	(d)  If release of a person's proprietary information may be
	subject to exception under Section 552.101, 552.110, 552.1101,
	552.113, [or] 552.131, or 552.143, the governmental body that
	requests an attorney general decision under Section 552.301 shall
	make a good faith attempt to notify that person of the request for
	the attorney general decision. Notice under this subsection must:
	(1)  be in writing and sent within a reasonable time not
	later than the 10th business day after the date the governmental
	body receives the request for the information; and
	(2)  include:
	(A)  a copy of the written request for the
	information, if any, received by the governmental body; and
	(B)  a statement, in the form prescribed by the
	attorney general, that the person is entitled to submit in writing
	to the attorney general within a reasonable time not later than the
	10th business day after the date the person receives the notice:
	(i)  each reason the person has as to why the
	information should be withheld; and
	(ii)  a letter, memorandum, or brief in
	support of that reason.
	SECTION 8.  Section 552.321, Government Code, is amended by
	adding Subsection (c) to read as follows:
	(c)  A requestor may file suit for a writ of mandamus
	compelling a governmental body or an entity to comply with the
	requirements of Subchapter J.
	SECTION 9.  Chapter 552, Government Code, is amended by
	adding Subchapter J to read as follows:
	SUBCHAPTER J.  ADDITIONAL PROVISIONS RELATED TO CONTRACTING
	INFORMATION
	Sec. 552.371.  CERTAIN ENTITIES REQUIRED TO PROVIDE
	CONTRACTING INFORMATION TO GOVERNMENTAL BODY IN CONNECTION WITH
	REQUEST. (a)  This section applies to an entity that is not a
	governmental body that executes a contract with a governmental body
	that:
	(1)  has a stated expenditure of at least $1 million in
	public funds for the purchase of goods or services by the
	governmental body; or
	(2)  results in the expenditure of at least $1 million
	in public funds for the purchase of goods or services by the
	governmental body in a fiscal year of the governmental body.
	(b)  This section applies to a written request for public
	information received by a governmental body that is a party to a
	contract described by Subsection (a) for contracting information
	related to the contract that is in the custody or possession of the
	entity and not maintained by the governmental body.
	(c)  A governmental body that receives a written request for
	information described by Subsection (b) shall request that the
	entity provide the information to the governmental body.  The
	governmental body must send the request in writing to the entity not
	later than the third business day after the date the governmental
	body receives the written request described by Subsection (b).
	(d)  Notwithstanding Section 552.301:
	(1)  a request for an attorney general's decision under
	Section 552.301(b) to determine whether contracting information
	subject to a written request described by Subsection (b) falls
	within an exception to disclosure under this chapter is considered
	timely if made not later than the 13th business day after the date
	the governmental body receives the written request described by
	Subsection (b);
	(2)  the statement and copy described by Section
	552.301(d) is considered timely if provided to the requestor not
	later than the 13th business day after the date the governmental
	body receives the written request described by Subsection (b);
	(3)  a submission described by Section 552.301(e) is
	considered timely if submitted to the attorney general not later
	than the 18th business day after the date the governmental body
	receives the written request described by Subsection (b); and
	(4)  a copy described by Section 552.301(e-1) is
	considered timely if sent to the requestor not later than the 18th
	business day after the date the governmental body receives the
	written request described by Subsection (b).
	(e)  Section 552.302 does not apply to information described
	by Subsection (b) if the governmental body:
	(1)  complies with the requirements of Subsection (c)
	in a good faith effort to obtain the information from the
	contracting entity;
	(2)  is unable to meet a deadline described by
	Subsection (d) because the contracting entity failed to provide the
	information to the governmental body not later than the 13th
	business day after the date the governmental body received the
	written request for the information; and
	(3)  if applicable and notwithstanding the deadlines
	prescribed by Sections 552.301(b), (d), (e), and (e-1), complies
	with the requirements of those subsections not later than the
	eighth business day after the date the governmental body receives
	the information from the contracting entity.
	(f)  Nothing in this section affects the deadlines or duties
	of a governmental body under Section 552.301 regarding information
	the governmental body maintains, including contracting
	information.
	Sec. 552.372.  BIDS AND CONTRACTS. (a)  A contract
	described by Section 552.371 must require a contracting entity to:
	(1)  preserve all contracting information related to
	the contract as provided by the records retention requirements
	applicable to the governmental body for the duration of the
	contract;
	(2)  promptly provide to the governmental body any
	contracting information related to the contract that is in the
	custody or possession of the entity on request of the governmental
	body; and
	(3)  on completion of the contract, either:
	(A)  provide at no cost to the governmental body
	all contracting information related to the contract that is in the
	custody or possession of the entity; or
	(B)  preserve the contracting information related
	to the contract as provided by the records retention requirements
	applicable to the governmental body.
	(b)  Unless Section 552.374(c) applies, a bid for a contract
	described by Section 552.371 and the contract must include the
	following statement:  "The requirements of Subchapter J, Chapter
	552, Government Code, may apply to this (include "bid" or
	"contract" as applicable) and the contractor or vendor agrees that
	the contract can be terminated if the contractor or vendor
	knowingly or intentionally fails to comply with a requirement of
	that subchapter."
	(c)  A governmental body may not accept a bid for a contract
	described by Section 552.371 or award the contract to an entity that
	the governmental body has determined has knowingly or intentionally
	failed to comply with this subchapter in a previous bid or contract
	described by that section unless the governmental body determines
	and documents that the entity has taken adequate steps to ensure
	future compliance with the requirements of this subchapter.
	Sec. 552.373.  NONCOMPLIANCE WITH PROVISION OF SUBCHAPTER.
	A governmental body that is the party to a contract described by
	Section 552.371 shall provide notice to the entity that is a party
	to the contract if the entity fails to comply with a requirement of
	this subchapter applicable to the entity.  The notice must:
	(1)  be in writing;
	(2)  state the requirement of this subchapter that the
	entity has violated; and
	(3)  unless Section 552.374(c) applies, advise the
	entity that the governmental body may terminate the contract
	without further obligation to the entity if the entity does not cure
	the violation on or before the 10th business day after the date the
	governmental body provides the notice.
	Sec. 552.374.  TERMINATION OF CONTRACT FOR NONCOMPLIANCE.
	(a)  Subject to Subsection (c), a governmental body may terminate a
	contract described by Section 552.371 if:
	(1)  the governmental body provides notice under
	Section 552.373 to the entity that is party to the contract;
	(2)  the contracting entity does not cure the violation
	in the period prescribed by Section 552.373;
	(3)  the governmental body determines that the
	contracting entity has intentionally or knowingly failed to comply
	with a requirement of this subchapter; and
	(4)  the governmental body determines that the entity
	has not taken adequate steps to ensure future compliance with the
	requirements of this subchapter.
	(b)  For the purpose of Subsection (a), an entity has taken
	adequate steps to ensure future compliance with this subchapter if:
	(1)  the entity produces contracting information
	requested by the governmental body that is in the custody or
	possession of the entity not later than the 10th business day after
	the date the governmental body makes the request; and
	(2)  the entity establishes a records management
	program to enable the entity to comply with this subchapter.
	(c)  A governmental body may not terminate a contract under
	this section if the contract is related to the purchase or
	underwriting of a public security, the contract is or may be used as
	collateral on a loan, or the contract's proceeds are used to pay
	debt service of a public security or loan.
	Sec. 552.375.  OTHER CONTRACT PROVISIONS. Nothing in this
	subchapter prevents a governmental body from including and
	enforcing more stringent requirements in a contract to increase
	accountability or transparency.
	Sec. 552.376.  CAUSE OF ACTION NOT CREATED. This subchapter
	does not create a cause of action to contest a bid for or the award
	of a contract with a governmental body.
	SECTION 10.  The changes in law made by this Act apply only
	to a request for public information that is received by a
	governmental body or an officer for public information on or after
	the effective date of this Act.
	SECTION 11.  Subchapter J, Chapter 552, Government Code, as
	added by this Act, applies only to a contract described by that
	subchapter that is executed on or after the effective date of this
	Act.
	SECTION 12.  This Act takes effect January 1, 2020.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 943 passed the Senate on
	April 10, 2019, by the following vote: Yeas 29, Nays 1; and that
	the Senate concurred in House amendment on May 23, 2019, by the
	following vote: Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 943 passed the House, with
	amendment, on May 17, 2019, by the following vote: Yeas 144,
	Nays 2, one present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor