89R22995 DRS-D     By: Bell of Montgomery H.B. No. 4314     Substitute the following for H.B. No. 4314:     By:  Bell of Montgomery C.S.H.B. No. 4314       A BILL TO BE ENTITLED   AN ACT   relating to prohibiting certain criteria in a local governmental   agency contractor selection process.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter Z, Chapter 271, Local Government   Code, is amended by adding Section 271.909 to read as follows:          Sec. 271.909.  CERTAIN CONTRACTING CRITERIA PROHIBITED. (a)     In this section, "governmental agency" has the meaning assigned by   Section 271.003.          (b)  Notwithstanding any other law, a governmental agency   that procures a good or service through a competitive process may   not:                (1)  consider any factor in the procurement process   other than a factor that:                      (A)  is required by law; or                      (B)  is objective, measurable, and directly   related to the cost, quality, reliability, or legal compliance of   the good or service being procured; or                (2)  give a preference to a bid based on environmental,   social, and governance criteria that do not directly relate to the   cost, quality, reliability, or legal compliance of the good or   service being procured.          (c)  For a competitive procurement process, a governmental   agency shall:                (1)  provide written contract selection criteria in all   publicly available bid specification requirements; and                (2)  include written contract selection criteria in the   solicitation documents at the time of vendor solicitation.          (d)  A person may submit to the attorney general a suspected   violation of this section.          (e)  If the attorney general determines that a governmental   agency has violated this section:                (1)  if the procurement process is ongoing and a   contract has not been awarded, the attorney general shall direct   the governmental agency in writing to remove any contract selection   criteria that the attorney general determines are prohibited under   this section; or                (2)  if a contract has been awarded but has not been   executed or performance of the contract has not been completed:                      (A)  the attorney general shall direct the   governmental agency in writing to terminate the contract not later   than the 10th day after the date the governmental agency receives   the notice; and                      (B)  the governmental agency shall provide   written proof of the termination of the contract to the attorney   general within the period prescribed by Paragraph (A).          (f)  If a governmental agency fails to terminate a contract   or provide written proof of the termination of a contract to the   attorney general as required by and within the period prescribed by   Subsection (e)(2), the contract is void.          (g)  The attorney general may bring an action for injunctive   or declaratory relief to enforce this section if a governmental   agency fails to comply with this section.          SECTION 2.  Section 271.909, Local Government Code, as added   by this Act, applies only to a contractor selection process   initiated on or after the effective date of this Act.          SECTION 3.  This Act takes effect September 1, 2025.