(a) The comptroller may bar a vendor from participating in state contracts that are subject to this subtitle, including contracts for which purchasing authority is delegated to a state agency, for:
(1) substandard performance under a contract with the state or a state agency;
(2) material misrepresentations in a bid or proposal to the state or a state agency or during the course of performing a contract with the state or a state agency;
(3) fraud;
(4) breaching a contract with the state or a state agency; or
(5) repeated unfavorable performance reviews under § 2155.089 or repeated unfavorable classifications received by the vendor under § 2262.055 after considering the following factors:
(A) the severity of the substandard performance by the vendor;
(B) the impact to the state of the substandard performance;
(C) any recommendations by a contracting state agency that provides an unfavorable performance review;
(D) whether debarment of the vendor is in the best interest of the state; and
(E) any other factor that the comptroller considers relevant, as specified by comptroller rule.
(a-1) The comptroller shall bar a vendor from participating in state contracts that are subject to this subtitle, including contracts for which purchasing authority is delegated to a state agency, if the vendor has been:
(1) convicted of violating a federal law in connection with a contract awarded by the federal government for relief, recovery, or reconstruction efforts as a result of Hurricane Rita, as defined by § 39.459, Utilities Code, Hurricane Katrina, or any other disaster occurring after September 24, 2005;
(2) assessed a penalty in a federal civil or administrative enforcement action in connection with a contract awarded by the federal government for relief, recovery, or reconstruction efforts as a result of Hurricane Rita, as defined by § 39.459, Utilities Code, Hurricane Katrina, or any other disaster occurring after September 24, 2005; or
(3) convicted of any offense related to the direct support or promotion of human trafficking.

(a-2) The comptroller may bar a vendor from participating in state contracts that are subject to this subtitle, including contracts for which purchasing authority is delegated to a state agency, if more than two contracts between the vendor and the state have been terminated by the state for unsatisfactory vendor performance during the preceding three years.
(b) Except as provided by Subsection (d), the comptroller shall bar a vendor from participating in state contracts under Subsection (a) or (a-2) for a period that is commensurate with the seriousness of the vendor’s action and the damage to the state’s interests.
(c) The comptroller by rule shall:
(1) state generally the reasons for which a vendor may be barred from participating in state contracts and the periods for which the vendor may be barred; and
(2) prescribe the procedures under which the comptroller will determine whether and for how long a vendor will be barred.
(d) The comptroller shall bar a vendor from participating in state contracts under Subsection (a-1) for a period of five years from the date the vendor was convicted or the penalty was assessed.
(e) In this section:
(1) “Disaster” has the meaning assigned by § 418.004.
(2) “Hurricane Katrina” means the hurricane of that name that struck the gulf coast region of the United States in August 2005.