Section 231.006 - Ineligibility to Receive State Grants or Loans or Receive Payment on State Contracts(a) A child support obligor who is more than 30 days delinquent in paying child support and a business entity in which the obligor is a sole proprietor, partner, shareholder, or owner with an ownership interest of at least 25 percent is not eligible to:(1) receive payments from state funds under a contract to provide property, materials, or services; or(2) receive a state-funded grant or loan.(a-1) Repealed by Acts 2007, 80th Leg., R.S., Ch. 972, Sec. 65(1), eff. September 1, 2007.(b) A child support obligor or business entity ineligible to receive payments under Subsection (a) remains ineligible until:(1) all arrearages have been paid;(2) the obligor is in compliance with a written repayment agreement or court order as to any existing delinquency; or(3) the court of continuing jurisdiction over the child support order has granted the obligor an exemption from Subsection (a) as part of a court-supervised effort to improve earnings and child support payments.(c) A bid or an application for a contract, grant, or loan paid from state funds must include the name and social security number of the individual or sole proprietor and each partner, shareholder, or owner with an ownership interest of at least 25 percent of the business entity submitting the bid or application.(d) A contract, bid, or application subject to the requirements of this section must include the following statement: "Under Section 231.006, Family Code, the vendor or applicant certifies that the individual or business entity named in this contract, bid, or application is not ineligible to receive the specified grant, loan, or payment and acknowledges that this contract may be terminated and payment may be withheld if this certification is inaccurate."
(e) If a state agency determines that an individual or business entity holding a state contract is ineligible to receive payment under Subsection (a), the contract may be terminated.(f) If the certificate required under Subsection (d) is shown to be false, the vendor is liable to the state for attorney's fees, the costs necessary to complete the contract, including the cost of advertising and awarding a second contract, and any other damages provided by law or contract.(g) This section does not create a cause of action to contest a bid or award of a state grant, loan, or contract. This section does not impose a duty on the Title IV-D agency to collect information to send to the comptroller to withhold a payment to a business entity. The Title IV-D agency and other affected agencies are encouraged to develop a system by which the Title IV-D agency may identify a business entity that is ineligible to receive a state payment under Subsection (a) and to ensure that a state payment to the entity is not made. This system should be implemented using existing funds and only if the Title IV-D agency, comptroller, and other affected agencies determine that it will be cost-effective.(h) This section does not apply to a contract between governmental entities.(i) The Title IV-D agency may adopt rules or prescribe forms to implement any provision of this section.(j) A state agency may accept a bid that does not include the information required under Subsection (c) if the state agency collects the information before the contract, grant, or loan is executed.Amended By Acts 2007, 80th Leg., R.S., Ch. 972, Sec. 45, eff. 9/1/2007.Amended By Acts 2007, 80th Leg., R.S., Ch. 972, Sec. 65(1), eff. 9/1/2007.Amended By Acts 2003, 78th Leg., ch. 437, Sec. 1, eff. 9/1/2003Amended By Acts 2003, 78th Leg., ch. 1015, Sec. 2, eff. 9/1/2003.Amended By Acts 1999, 76th Leg., ch. 28, Sec. 1, eff. 9/1/1999Amended by Acts 1995, 74th Leg., ch. 751, Sec. 82, eff. 9/1/1995Added by Acts 1995, 74th Leg., ch. 20, Sec. 1, eff. 4/20/1995.