Relating to consideration of the compensation of a vendor's chief executive officer as an additional relevant factor in determining the best value for the state when awarding a state contract.
HB 5279 requires Texas state agencies to consider whether a vendor’s chief executive officer earns total annual compensation (including cash, equity, and benefits) no more than 20 times the median annual pay of the vendor’s full-time employees when determining the "best value" for state contracts. This provision applies only to new contracts where requests for bids are published on or after September 1, 2025. The bill directly affects state agencies awarding contracts and vendors competing for those contracts. It adds a specific pay alignment metric to the existing evaluation criteria for state procurement.
Bill status
in committee
1 of 4 stages cleared
Introduction
Apr 2025
Committee Review
Floor Vote
Governor
Introduced Apr 7, 2025
Last action Apr 7, 2025
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Full legislative history
Actions timeline
Total actions
3
Key actions
0
Committee
1
Apr 7, 2025
Committee
Referred to Delivery of Government Efficiency
lower
Apr 7, 2025
Introduced
Read first time
lower
0 primary · 0 co-sponsors
Sponsors
No sponsor information available.
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