Governor Martinez has signed Senate Bill 432 prohibiting state and local government employees who are involved in the contracting process from subsequently being employed by a contractor. The bill expands the existing Governmental Conduct Act to apply to state and local government employees involved in the procurement process.

Under the new law, state agencies are barred from entering into contracts with a business represented by a person who has been an employee of the state within one year if the value of the contract is in excess of $1,000 and the contract is a direct result of an official act by the former employee. The law becomes effective July 1, 2011.