By: Nelson  S.B. No. 799
         (In the Senate - Filed February 24, 2021; March 11, 2021,
  read first time and referred to Committee on Finance;
  April 6, 2021, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 15, Nays 0; April 6, 2021,
  sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 799 By:  Nelson
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to contracting procedures and requirements for
  governmental entities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2054.003(10), Government Code, is
  amended to read as follows:
               (10)  "Major information resources project" means:
                     (A)  any information resources technology project
  identified in a state agency's biennial operating plan whose
  development costs exceed $5 million and that:
                           (i)  requires one year or longer to reach
  operations status;
                           (ii)  involves more than one state agency;
  or
                           (iii)  substantially alters work methods of
  state agency personnel or the delivery of services to clients;
  [and]
                     (B)  any information resources technology project
  designated by the legislature in the General Appropriations Act as
  a major information resources project; and
                     (C)  any information resources technology project
  of a state agency designated for additional monitoring under
  Section 2261.258(a)(1) if the development costs for the project
  exceed $5 million.
         SECTION 2.  Section 2054.008(b), Government Code, is amended
  to read as follows:
         (b)  A state agency shall provide written notice to the
  Legislative Budget Board of a contract for a major information
  system. The notice must be on a form prescribed by the Legislative
  Budget Board and filed not later than the 30th [10th] day after the
  date the agency enters into the contract.
         SECTION 3.  Section 2054.1181(a), Government Code, is
  amended to read as follows:
         (a)  The [At the direction of the governor, lieutenant
  governor, or speaker of the house of representatives, the]
  department shall provide additional oversight services [for major
  information resources projects], including risk management,
  quality assurance services, independent project monitoring, and
  project management, for major information resources projects
  described by Section 2054.003(10)(C) and for other major
  information resources projects selected for oversight by the
  governor, lieutenant governor, or speaker of the house of
  representatives. A state agency with a project subject to
  [selected for] oversight shall pay for oversight by the department
  and quality assurance team based on a funding model developed by the
  department. The department may contract with a vendor to provide
  the necessary oversight at the department's direction.
         SECTION 4.  Sections 2155.132(a), (b), and (e), Government
  Code, are amended to read as follows:
         (a)  A state agency is delegated the authority to purchase
  goods and services if the purchase does not exceed $50,000
  [$15,000]. If the comptroller determines that a state agency has
  not followed the comptroller's rules or the laws related to the
  delegated purchases, the comptroller shall report its
  determination to the members of the state agency's governing body
  and to the governor, lieutenant governor, speaker of the house of
  representatives, and Legislative Budget Board.
         (b)  The comptroller by rule may delegate to a state agency
  the authority to purchase goods and services if the purchase
  exceeds $50,000 [$15,000]. In delegating purchasing authority
  under this subsection or Section 2155.131, the comptroller shall
  consider factors relevant to a state agency's ability to perform
  purchasing functions, including:
               (1)  the capabilities of the agency's purchasing staff
  and the existence of automated purchasing tools at the agency;
               (2)  the certification levels held by the agency's
  purchasing personnel;
               (3)  the results of the comptroller's procurement
  review audits of an agency's purchasing practices; and
               (4)  whether the agency has adopted and published
  protest procedures consistent with those of the comptroller as part
  of its purchasing rules.
         (e)  Competitive bidding, whether formal or informal, is
  required for a purchase by a state agency if the purchase:
               (1)  exceeds $10,000 [$5,000]; and
               (2)  is made under a written contract.
         SECTION 5.  Section 2155.144, Government Code, is amended by
  adding Subsection (o) to read as follows:
         (o)  If the Health and Human Services Commission does not
  receive any responsive bids on a competitive solicitation for goods
  or services for a state hospital operated by a health and human
  services agency or a state supported living center as defined by
  Section 531.002, Health and Safety Code, the commission after
  making a written determination that competition is not available
  may negotiate with and award the contract to any qualified vendor
  who meets the requirements of the original solicitation:
               (1)  at a price consistent with the current market
  value of the goods or services; and
               (2)  for a term not to exceed five years.
         SECTION 6.  Section 2155.264, Government Code, is amended to
  read as follows:
         Sec. 2155.264.  AGENCY SOLICITATION OF BIDS OR PROPOSALS FOR
  ACQUISITION OVER $25,000 [$15,000]. A state agency that proposes
  to make a purchase or other acquisition that will cost more than
  $25,000 [$15,000] shall solicit bids or proposals from each
  eligible vendor on the master bidders list that serves the agency's
  geographic region. A state agency may also solicit bids or
  proposals through the use of on-line electronic transmission.
         SECTION 7.  Section 2157.068, Government Code, is amended by
  amending Subsections (e-1) and (e-2) and adding Subsection (e-4) to
  read as follows:
         (e-1)  Except as provided by Subsection (e-4), a [A] state
  agency contracting to purchase a commodity item shall use the list
  maintained as required by Subsection (e) as follows:
               (1)  for a contract with a value of $50,000 or less, the
  agency may directly award the contract to a vendor included on the
  list without submission of a request for pricing to other vendors on
  the list;
               (2)  for a contract with a value of more than $50,000
  but not more than $1 million, the agency must submit a request for
  pricing to at least three vendors included on the list in the
  category to which the contract relates; and
               (3)  for a contract with a value of more than $1 million
  but not more than $10 [$5] million, the agency must submit a request
  for pricing to at least six vendors included on the list in the
  category to which the contract relates or all vendors on the
  schedule if the category has fewer than six vendors.
         (e-2)  A state agency may not enter into a contract to
  purchase a commodity item if the value of the contract exceeds $10
  [$5] million.
         (e-4)  For a contract with a value of more than $5 million but
  not more than $10 million, a state agency may purchase a commodity
  item using a purchasing method designated by the comptroller under
  Section 2157.006(a)(2).
         SECTION 8.  Section 2166.2551, Government Code, is amended
  to read as follows:
         Sec. 2166.2551.  CONTRACT NOTIFICATION. The commission or
  an agency whose project is exempted from all or part of this chapter
  under Section 2166.003 shall provide written notice to the
  Legislative Budget Board of a contract for a construction project
  if the amount of the contract, including an amendment,
  modification, renewal, or extension of the contract, exceeds
  $50,000 [$14,000]. The notice must be on a form prescribed by the
  Legislative Budget Board and filed not later than the 30th [10th]
  day after the date the agency enters into the contract.
         SECTION 9.  Section 2254.006, Government Code, is amended to
  read as follows:
         Sec. 2254.006.  CONTRACT NOTIFICATION. A state agency,
  including an institution of higher education as defined by Section
  61.003, Education Code, shall provide written notice to the
  Legislative Budget Board of a contract for professional services,
  other than a contract for physician or optometric services, if the
  amount of the contract, including an amendment, modification,
  renewal, or extension of the contract, exceeds $50,000 [$14,000].
  The notice must be on a form prescribed by the Legislative Budget
  Board and filed not later than the 30th [10th] day after the date
  the agency enters into the contract.
         SECTION 10.  Subchapter A, Chapter 2254, Government Code, is
  amended by adding Section 2254.008 to read as follows:
         Sec. 2254.008.  CONTRACT FOR PROFESSIONAL SERVICES OF
  PHYSICIANS, OPTOMETRISTS, AND REGISTERED NURSES.  (a)  
  Notwithstanding Section 2254.003, if a governmental entity is
  procuring services provided in connection with the professional
  employment or practice of a professional described by Section
  2254.002(2)(B)(v), (vi), or (ix) and the number of contracts to be
  awarded under this section is not otherwise limited, the
  governmental entity may make the selection and award on the basis
  of:
               (1)  the provider's agreement to payment of a set fee,
  as a range or lump-sum amount; and
               (2)  the provider's affirmation and the governmental
  entity's verification that the provider has the necessary
  occupational licenses and experience.
         (b)  Notwithstanding Sections 2155.083 and 2261.051, a
  contract awarded under this section is not subject to competitive
  advertising and proposal evaluation requirements.
         SECTION 11.  Section 2254.0301(a), Government Code, is
  amended to read as follows:
         (a)  A state agency shall provide written notice to the
  Legislative Budget Board of a contract for consulting services if
  the amount of the contract, including an amendment, modification,
  renewal, or extension of the contract, exceeds $50,000 [$14,000].
  The notice must be on a form prescribed by the Legislative Budget
  Board and filed not later than the 30th [10th] day after the date
  the entity enters into the contract.
         SECTION 12.  Section 2262.051, Government Code, is amended
  by adding Subsections (i) and (j) to read as follows:
         (i)  The guide must include:
               (1)  instructions to assist a state agency in
  identifying the agency procurements that require an additional or
  secondary agency employee to serve as a contact for the procurement
  and establishing procedures for notifying vendors when to contact
  the additional or secondary agency employee;
               (2)  a general outline for the training a state agency
  must provide to the agency's procurement evaluators related to the
  goods and services the evaluator reviews for purchase by the
  agency; and
               (3)  the information a state agency must include in a
  contract file on the evaluator for that procurement, including the
  reasons the person was selected and the person's relevant
  qualifications.
         (j)  For a procurement in an amount that exceeds $20 million,
  the guide must require a state agency to notify interested parties
  at least two months before the date the agency issues the
  solicitation for the procurement.
         SECTION 13.  Section 264.603(a), Family Code, is amended to
  read as follows:
         (a)  The commission shall contract with one statewide
  organization that is exempt from federal income taxation under
  Section 501(a), Internal Revenue Code of 1986, as an organization
  described by Section 501(c)(3) of that code [and designated as a
  supporting organization under Section 509(a)(3) of that code,] and
  that is composed of individuals or groups of individuals who have
  expertise in the dynamics of child abuse and neglect and experience
  in operating volunteer advocate programs to provide training,
  technical assistance, and evaluation services for the benefit of
  local volunteer advocate programs. The contract shall:
               (1)  include measurable goals and objectives relating
  to the number of:
                     (A)  volunteer advocates in the program; and
                     (B)  children receiving services from the
  program; and
               (2)  follow practices designed to ensure compliance
  with standards referenced in the contract.
         SECTION 14.  The changes in law made by this Act apply only
  to a contract for which a state agency first advertises or otherwise
  solicits offers, bids, proposals, qualifications, or other
  applicable expressions of interest on or after the effective date
  of this Act.  A contract for which a state agency first advertises
  or otherwise solicits offers, bids, proposals, qualifications, or
  other applicable expressions of interest before the effective date
  of this Act is governed by the law as it existed immediately before
  the effective date of this Act, and that law is continued in effect
  for that purpose.
         SECTION 15.  As soon as practicable after the effective date
  of this Act, the Department of Information Resources shall adopt
  rules necessary to implement the changes in law made by this Act.
         SECTION 16.  If before implementing any provision of this
  Act a state agency determines that a waiver or authorization from a
  federal agency is necessary for implementation of that provision,
  the agency affected by the provision shall request the waiver or
  authorization and may delay implementing that provision until the
  waiver or authorization is granted.
         SECTION 17.  This Act takes effect September 1, 2021.
 
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