By Harris S.B. No. 466
75R2237 JRD-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the state's procurement of goods and services and to
1-3 the state's contract management activities.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subtitle F, Title 10, Government Code, is amended
1-6 by adding Chapter 2259 to read as follows:
1-7 CHAPTER 2259. STATE CONTRACTING STANDARDS AND OVERSIGHT
1-8 SUBCHAPTER A. GENERAL PROVISIONS
1-9 Sec. 2259.001. APPLICABILITY. This chapter applies to each
1-10 procurement of goods or services made by a state agency and to
1-11 contracts and contract management activities related to the
1-12 procurement. This chapter applies to the procurement and to
1-13 activities related to the procurement without regard to the
1-14 identity of the contractor or the source of funds the agency will
1-15 use to make the procurement, including a procurement that:
1-16 (1) is made by the General Services Commission;
1-17 (2) is not subject to the purchasing authority of the
1-18 General Services Commission or is made under delegated purchasing
1-19 authority;
1-20 (3) involves the procurement under one or more
1-21 contracts of a variety of goods and services, such as obtaining or
1-22 paying for all or part of the cost of acute or long-term medical or
1-23 nursing care for residents of this state;
1-24 (4) is made with federal money, to the extent that the
2-1 application of this chapter is not prohibited by federal law; or
2-2 (5) is a procurement of professional or consulting
2-3 services, to the extent that the application of this chapter is
2-4 consistent with Chapter 2254.
2-5 Sec. 2259.002. DEFINITION. In this chapter, "state agency"
2-6 has the meaning assigned by Section 2151.002.
2-7 (Sections 2259.003-2259.050 reserved for expansion
2-8 SUBCHAPTER B. DUTIES OF COMPTROLLER
2-9 Sec. 2259.051. CONTRACT MANAGEMENT STANDARDS SET BY
2-10 COMPTROLLER; SANCTIONS FOR NONCOMPLIANCE. (a) The comptroller
2-11 shall develop in accordance with this chapter and adopt by rule
2-12 standards to govern state agency contract management activities,
2-13 including standards to promote or establish efficient and effective
2-14 contract monitoring, contractor selection processes, standard
2-15 contract provisions for different types of contracts, subcontractor
2-16 performance, contract management training for state agency
2-17 personnel involved in procurement and for members of state agency
2-18 governing bodies, and payment or reimbursement rates and methods.
2-19 (b) Each state agency shall comply with the standards that
2-20 the comptroller establishes by rule under this chapter. In the
2-21 course of its audits of state agencies, the State Auditor shall:
2-22 (1) audit for compliance with the comptroller's
2-23 contract management rules; and
2-24 (2) report instances of noncompliance to the
2-25 comptroller and to the Legislative Audit Committee.
2-26 (c) The comptroller may assess sanctions against a state
2-27 agency if the comptroller finds that the agency has violated the
3-1 comptroller's contract management rules. The severity of the
3-2 sanction imposed shall depend on the seriousness of the violation,
3-3 the circumstances of the violation, and the number of violations.
3-4 After notifying the agency of the finding of a violation, the
3-5 comptroller may choose to impose one of the following sanctions on
3-6 the agency:
3-7 (1) withholding from the agency all or part of the
3-8 agency's money for the travel expenses of agency officers and
3-9 employees;
3-10 (2) assessing an administrative penalty against the
3-11 agency's appropriation, not to exceed $2,000 per violation, and
3-12 transferring the amount of the penalty to the undedicated portion
3-13 of the general revenue fund;
3-14 (3) withholding from the agency not more than 15
3-15 percent of the money appropriated to the agency for administrative
3-16 expenses;
3-17 (4) revoking purchasing authority that has been
3-18 delegated to the agency and transferring the purchasing authority
3-19 as appropriate to the General Services Commission or the Health and
3-20 Human Services Commission; or
3-21 (5) withholding all program funds from the agency.
3-22 Sec. 2259.052. CONTRACT MANAGEMENT HANDBOOK. (a) The
3-23 comptroller shall publish a contract management handbook.
3-24 (b) The handbook must include:
3-25 (1) common terms and definitions;
3-26 (2) models for selecting contractors in different
3-27 types of circumstances;
4-1 (3) ways to manage a contract for which there is a
4-2 lack of competition in the contractor selection process that are
4-3 designed to compensate for the lack of competition;
4-4 (4) ways to assess the degree of risk in a contract;
4-5 (5) standard contract provisions for state agencies to
4-6 incorporate as applicable in their contracts, and other sample
4-7 contract provisions for agencies to consider;
4-8 (6) methods for creating and establishing by contract
4-9 a remedies schedule and a sanctions plan;
4-10 (7) sample contract monitoring programs; and
4-11 (8) other matters relating to the comptroller's
4-12 contract management and procurement authority under this chapter as
4-13 determined by the comptroller.
4-14 Sec. 2259.053. COORDINATION OF CONTRACT MONITORING. The
4-15 comptroller shall coordinate contract monitoring activities within
4-16 and among state agencies.
4-17 Sec. 2259.054. COORDINATION OF CONTRACT MANAGEMENT TRAINING.
4-18 The comptroller shall coordinate contract management training for
4-19 members of state agency governing bodies and for state agency
4-20 employees involved in procurement and contract management.
4-21 Sec. 2259.055. CONTRACT MANAGEMENT DATABASE. (a) The
4-22 comptroller shall establish a central contract management database
4-23 for the use of all state agencies. To the extent possible, the
4-24 comptroller shall make the database a part of the uniform statewide
4-25 accounting system.
4-26 (b) A state agency shall send to the comptroller in the
4-27 manner prescribed by the comptroller the information that the
5-1 agency possesses that the comptroller requires for inclusion in the
5-2 database.
5-3 (c) The comptroller shall include in the database:
5-4 (1) information that will allow state agencies to
5-5 identify businesses that have previously contracted with the state
5-6 and businesses that have previously served as subcontractors under
5-7 contracts with the state; and
5-8 (2) information that will describe the nature of the
5-9 state's experience with those businesses.
5-10 (d) The comptroller shall include in the database at least
5-11 the following information for each contractor who has done business
5-12 with the state and for each subcontractor who has worked under a
5-13 state contract:
5-14 (1) its legal name and address;
5-15 (2) its Texas Identification Number;
5-16 (3) the type of organization or entity it is, such as
5-17 a corporation, partnership, nonprofit organization, or political
5-18 subdivision;
5-19 (4) any other names under which it has operated in the
5-20 previous five years;
5-21 (5) the names and addresses of its officers,
5-22 directors, and principal stockholders and of any of its other
5-23 beneficiaries;
5-24 (6) the names of state agencies for which it has
5-25 directly or indirectly supplied goods or services in the previous
5-26 five years; and
5-27 (7) the dollar amounts involved in the contracts under
6-1 which it has supplied goods or services to the state in the
6-2 previous five years.
6-3 (e) A state agency shall use the database for contract
6-4 management purposes that include:
6-5 (1) coordinating fiscal and program monitoring;
6-6 (2) sharing the results of fiscal and program
6-7 monitoring of contractors and subcontractors;
6-8 (3) using information in the database as an aid to
6-9 making decisions about contractor selection and contract renewals;
6-10 (4) detecting double-billing by contractors; and
6-11 (5) evaluating whether the state is paying comparable
6-12 costs for comparable goods and services.
6-13 Sec. 2259.056. DEBARMENT. (a) As part of its contract
6-14 management rules, the comptroller shall establish standards and
6-15 procedures:
6-16 (1) under which a state agency may debar a contractor
6-17 from contracting with the agency or subcontracting under an agency
6-18 contract; and
6-19 (2) under which the comptroller may debar a contractor
6-20 from contracting with the state or subcontracting under a state
6-21 contract.
6-22 (b) The comptroller's standards must clearly specify the
6-23 types of conduct that may subject a contractor or subcontractor to
6-24 debarment. The standards and procedures must provide for a range in
6-25 terms of time for which and types of contracts from which a
6-26 contractor or subcontractor may be debarred, based on the
6-27 seriousness of the breach of contract or substandard contract
7-1 performance and the extent to which the state's interests were
7-2 damaged by the conduct.
7-3 (c) All state agency proceedings to debar a contractor or
7-4 subcontractor are governed by the comptroller's standards and
7-5 procedures.
7-6 (d) A proceeding to debar a contractor or subcontractor is a
7-7 contested case under Chapter 2001. The contractor or subcontractor
7-8 is entitled to a hearing on request. An administrative law judge
7-9 of the State Office of Administrative Hearings shall preside over
7-10 any hearing in the case. The state agency seeking to debar a
7-11 contractor or subcontractor from contracting directly or indirectly
7-12 with the agency shall make the final administrative determination
7-13 in the case based on the administrative law judge's proposal for
7-14 decision, if a hearing was conducted, and on the comptroller's
7-15 rules. The comptroller shall determine whether to attempt to debar
7-16 a contractor or subcontractor from contracting directly or
7-17 indirectly with the state, and shall make the final administrative
7-18 determination in such a case based on the administrative law
7-19 judge's proposal for decision, if a hearing was conducted, and on
7-20 the comptroller's rules.
7-21 (e) A contractor or subcontractor who is the subject of a
7-22 debarment proceeding under this section and who is aggrieved by the
7-23 final administrative decision is entitled to judicial review of the
7-24 decision.
7-25 Sec. 2259.057. RECOVERY OF COMPTROLLER'S COSTS. The
7-26 comptroller may, to the extent feasible, establish a system of
7-27 billings and charges that allows the comptroller to recover from
8-1 affected state agencies the comptroller's costs in implementing
8-2 this chapter.
8-3 Sec. 2259.058. REPORT BY COMPTROLLER. The comptroller shall
8-4 report the findings and activities of that office under this
8-5 chapter semiannually to the Legislative Budget Board, the
8-6 Legislative Audit Committee, the House Appropriations Committee,
8-7 the Senate Finance Committee, the House General Investigating
8-8 Committee, and the Senate General Investigating Committee.
8-9 (Sections 2259.059-2259.100 reserved for expansion
8-10 SUBCHAPTER C. GENERAL STATE AGENCY CONTRACT MANAGEMENT DUTIES
8-11 Sec. 2259.101. AGENCY CONTRACT MANAGEMENT POLICIES. (a)
8-12 Each state agency shall establish and adopt by rule clearly stated
8-13 and comprehensive written contract management policies.
8-14 (b) The policies must be consistent with the comptroller's
8-15 contract management standards and must clearly reflect the state's
8-16 expectations to state agency staff and to potential contractors
8-17 with the agency.
8-18 (c) State agency management shall comply with the policies
8-19 and enforce the policies within and on behalf of the agency.
8-20 (d) The policies must at least:
8-21 (1) provide for the review of financial statements and
8-22 performance summaries;
8-23 (2) establish standards and procedures consistent with
8-24 the comptroller's standards and procedures to debar breaching or
8-25 poorly performing contractors and subcontractors from future
8-26 contracting with the state agency or subcontracting under agency
8-27 contracts;
9-1 (3) establish contract management training
9-2 requirements that include a review of contract management
9-3 responsibilities;
9-4 (4) take into account the need for a reasonable degree
9-5 of uniformity in measuring contractor performance; and
9-6 (5) take into account the need to continue service to
9-7 state agency clients when contractor performance problems are being
9-8 addressed.
9-9 Sec. 2259.102. ANNUAL RISK ASSESSMENT. Each state agency
9-10 shall perform annually a risk assessment of its contracts and
9-11 submit a report of its findings to the Legislative Audit Committee
9-12 and the Legislative Budget Board not later than January 15.
9-13 Sec. 2259.103. CONTRACT MANAGEMENT TRAINING. (a) Each
9-14 member of the governing body of a state agency and each state
9-15 agency employee whose duties include contract management or other
9-16 procurement responsibilities shall obtain training in contract
9-17 management. The training must include review of the comptroller's
9-18 statewide contract management standards.
9-19 (b) A state agency shall ensure that the training required
9-20 by this section is obtained.
9-21 (c) The comptroller shall coordinate training under this
9-22 section.
9-23 Sec. 2259.104. AGENCY PERFORMANCE MEASURES. The Legislative
9-24 Budget Board may develop performance measures relating to contract
9-25 management functions and require information from state agencies
9-26 that will allow the legislature to assess state agency progress in
9-27 effective contract management.
10-1 (Sections 2259.105-2259.150 reserved for expansion
10-2 SUBCHAPTER D. CONTRACTOR SELECTION
10-3 Sec. 2259.151. COMPETITIVE CONTRACTOR SELECTION PROCEDURES.
10-4 Each state agency shall assess its contractor selection procedures
10-5 and shall use competitive bidding and competitive sealed proposals
10-6 to the greatest extent possible when selecting its contractors.
10-7 Sec. 2259.152. DETERMINING THE LOWEST AND BEST BID OR
10-8 PROPOSAL. In determining the lowest and best bid or proposal, a
10-9 state agency shall consider:
10-10 (1) the vendor's price to provide the good or service;
10-11 (2) the probable quality of the offered good or
10-12 service; and
10-13 (3) the quality of the vendor's past performance in
10-14 contracting with the agency, with other state entities, or with
10-15 private sector entities.
10-16 Sec. 2259.153. DISCLOSURE OF CONTRACTOR AND SUBCONTRACTOR
10-17 INFORMATION IN BIDS OR PROPOSALS. (a) To aid in evaluating a
10-18 potential contractor's past performance and probable performance in
10-19 the future, a state agency shall require:
10-20 (1) that each bidder or proposal offeror disclose in
10-21 the bid or proposal the identity of subcontractors it has recently
10-22 used on similar contracts and the identity of subcontractors it
10-23 intends to use if it is awarded the contract;
10-24 (2) that each bidder or proposal offeror and each
10-25 intended subcontractor of a bidder or offeror disclose in the bid
10-26 or proposal the names and addresses of its directors, its principal
10-27 stockholders, and any other beneficiaries of the company;
11-1 (3) that each bidder or proposal offeror and each
11-2 intended subcontractor of a bidder or offeror disclose in the bid
11-3 or proposal:
11-4 (A) its previous or current contracts with any
11-5 state agency, including a description of the goods or services it
11-6 provides under the other contracts and the amount of money it
11-7 receives under the contracts;
11-8 (B) previous or current contracts with any state
11-9 agency under which it was a subcontractor, including a description
11-10 of the goods or services it provides under the other contracts and
11-11 the amount of money it receives under the contracts; and
11-12 (C) any lawsuits, sanctions, or other negative
11-13 actions taken against it by the contracting agency, a contractor,
11-14 or a subcontractor in connection with a previous or current
11-15 contract with a state agency; and
11-16 (4) that each bidder or proposal offeror and each
11-17 intended subcontractor of a bidder or offeror:
11-18 (A) disclose in the bid or proposal the current
11-19 status of any license, certificate, or other permit the bidder,
11-20 offeror, or subcontractor is required to have to perform under the
11-21 contract; and
11-22 (B) certify, if true, in the bid or proposal
11-23 that the license, certificate, or other permit has not expired or
11-24 been suspended or revoked.
11-25 (b) A state agency shall include in its requests for bids or
11-26 proposals a statement about the applicability of relevant criminal
11-27 law, including Section 37.10, Penal Code, to presenting information
12-1 and documentation to the agency in connection with a bid or
12-2 proposal. A state agency shall refer to the appropriate authorities
12-3 for investigation or prosecution any suspected violation of
12-4 relevant criminal law, including Section 37.10, Penal Code, related
12-5 to presenting information and documentation to the agency in
12-6 connection with a bid, proposal, or contract.
12-7 Sec. 2259.154. CLARITY IN REQUESTS FOR BIDS OR PROPOSALS.
12-8 Before soliciting bids or proposals for a new contract or a
12-9 contract renewal, a state agency shall make a formal assessment of
12-10 the type of good or service to be solicited and shall provide a
12-11 clear definition of that good or service in the request for bids or
12-12 proposals.
12-13 (Sections 2259.155-2259.200 reserved for expansion
12-14 SUBCHAPTER E. CONTRACT PROVISIONS
12-15 Sec. 2259.201. PERFORMANCE MEASURES REQUIRED. (a) Each
12-16 state agency shall incorporate performance measures in all its
12-17 contracts for goods or services that will allow the agency and
12-18 state oversight agencies to assess the quality of performance of
12-19 contractors and subcontractors.
12-20 (b) The performance measures must include a schedule for
12-21 performance measurement. Performance must be measured more
12-22 frequently under contracts that present more risks.
12-23 Sec. 2259.202. CONTRACT OVERSIGHT PROVISIONS. (a) Each
12-24 state agency shall include contract oversight provisions in all its
12-25 contracts for goods or services, and shall include enhanced
12-26 contract oversight provisions in contracts for which competition
12-27 was absent or insufficient in the contractor selection process.
13-1 (b) The contract oversight provisions must be designed to
13-2 ensure at a minimum that:
13-3 (1) money received by a contractor or subcontractor
13-4 under the contract is properly used by the contractor or
13-5 subcontractor for the intended purpose; and
13-6 (2) the good or service for which the state has
13-7 contracted is suitable and is effectively delivered.
13-8 (c) The contract oversight provisions must include a
13-9 provision that requires the contractor and subcontractors under the
13-10 contract to allow the state agency and state oversight entities
13-11 timely access to the records of the contractor or subcontractors
13-12 that may be needed to assess the status of the contract or to
13-13 assess performance under the contract. The contract provision must
13-14 also provide that the agency may cancel the contract or suspend
13-15 payments under the contract if the agency or a state oversight
13-16 entity is not allowed timely access to the records.
13-17 (d) The contract oversight provisions must include a
13-18 provision that requires the contractor and subcontractors under the
13-19 contract to promptly inform the state agency during the term of the
13-20 contract:
13-21 (1) of any proposed or final action to revoke,
13-22 suspend, or take any other disciplinary action in connection with,
13-23 a license, certificate, or other permit that the contractor or
13-24 subcontractor is required to have to perform under the contract;
13-25 and
13-26 (2) whether the license, certificate, or other permit
13-27 has expired.
14-1 Sec. 2259.203. REMEDIES AND SANCTIONS SCHEDULES. (a) Each
14-2 state agency shall create and incorporate in all its contracts for
14-3 goods or services a remedies schedule, a graduated sanctions
14-4 schedule, or both, for breach of the contract or substandard
14-5 performance under the contract. The remedies and sanctions
14-6 provisions must be consistent with the comptroller's statewide
14-7 standards.
14-8 (b) The comptroller and other state agencies shall design
14-9 fair and feasible standards that will hold contractors accountable
14-10 for breach of contract or substandard performance under a contract
14-11 without diminishing the number of able providers who are willing to
14-12 contract with the state.
14-13 Sec. 2259.204. CONTRACT PROVISIONS APPLICABLE TO
14-14 SUBCONTRACTORS; INFORMATION ABOUT SUBCONTRACTORS; SUBSTITUTION OF
14-15 SUBCONTRACTORS. (a) Each state agency shall include provisions in
14-16 all its contracts for goods or services that ensure that all
14-17 contract provisions that are relevant to or affected by
14-18 subcontractor performance are applied to subcontractors. The
14-19 agency may require in its contract with the contractor:
14-20 (1) that certain subcontractors must contract directly
14-21 with the agency; or
14-22 (2) that the contractor must include specified
14-23 provisions in its written contracts with subcontractors.
14-24 (b) Each state agency shall include provisions in all its
14-25 contracts for goods or services that require the primary contractor
14-26 to report relevant subcontractor information to the agency.
14-27 (c) Each state agency may include a provision in its
15-1 contracts for goods or services that requires the primary
15-2 contractor to obtain the prior permission of the agency before the
15-3 primary contractor may substitute one subcontractor for another to
15-4 perform work under the contract, and that specifies appropriate
15-5 sanctions or remedies for a breach of this provision. Each state
15-6 agency shall include a provision in all its contracts for goods or
15-7 services that requires the primary contractor to timely notify the
15-8 agency of a subcontractor substitution, and that allows the agency
15-9 to suspend payments under the contract for a breach of this
15-10 provision.
15-11 Sec. 2259.205. LIABILITY INSURANCE COVERAGE REQUIRED. Each
15-12 state agency shall include provisions in all its contracts for
15-13 goods or services that require the contractor to carry director or
15-14 officer liability insurance coverage in an amount not less than the
15-15 value of the contract that is sufficient to protect the interests
15-16 of the state in the event an actionable act or omission by a
15-17 director or officer of the contractor damages the state's
15-18 interests.
15-19 (Sections 2259.206-2259.250 reserved for expansion
15-20 SUBCHAPTER F. PAYMENT AND REIMBURSEMENT METHODS
15-21 Sec. 2259.251. COST-BENEFIT STUDY. The comptroller shall
15-22 conduct a comprehensive study of the comparative costs and benefits
15-23 of different standard payment methods, such as the cost
15-24 reimbursement method and the unit rate method. State agencies shall
15-25 cooperate with the comptroller in the study.
15-26 Sec. 2259.252. PAYMENT METHODS AND CONTRACTOR SELECTION.
15-27 (a) In developing contract policies, the comptroller and other
16-1 state agencies shall consider the interaction of contractor
16-2 selection methods and payment methods.
16-3 (b) A state agency shall compensate for the risks inherent
16-4 in a lack of competition in the contractor selection process and in
16-5 the use of certain payment or reimbursement methods by including
16-6 appropriate provisions in the affected contracts and by
16-7 appropriately increasing its contract monitoring activities for
16-8 those contracts.
16-9 Sec. 2259.253. REEVALUATION OF PAYMENT AND REIMBURSEMENT
16-10 RATES. (a) To ensure that its payment and reimbursement methods
16-11 and rates are appropriate, each state agency at least biennially
16-12 shall reevaluate its payment and reimbursement methods and rates,
16-13 especially methods and rates based on historical funding levels or
16-14 on a formula established by agency rule rather than being based on
16-15 reasonable and necessary actual costs incurred.
16-16 (b) Each state agency shall submit formal rate reevaluation
16-17 information to the Legislative Budget Board and the comptroller as
16-18 part of the agency's legislative appropriations request.
16-19 (Sections 2259.254-2259.300 reserved for expansion
16-20 SUBCHAPTER G. CONTRACTOR OVERSIGHT
16-21 Sec. 2259.301. ANNUAL ASSESSMENT OF RISK. Under the
16-22 comptroller's direction, the management of each state agency shall
16-23 assess annually the risk of fraud, abuse, or waste in its
16-24 contractor selection process, contract provisions, and payment and
16-25 reimbursement rates and methods and for the different types of
16-26 goods and services for which it contracts.
16-27 Sec. 2259.302. COSTS MUST BE REASONABLE AND NECESSARY. Each
17-1 state agency shall ensure through contract monitoring activities
17-2 that all costs paid or reimbursed under a contract are reasonable
17-3 and necessary.
17-4 Sec. 2259.303. RESPONSIBILITY FOR MONITORING SUBCONTRACTORS.
17-5 (a) Each state agency shall establish clear guidelines in its
17-6 contracts that establish the extent to which the agency and the
17-7 extent to which the primary contractor is responsible for
17-8 monitoring subcontractors.
17-9 (b) The state agency shall monitor the subcontractor's
17-10 performance if the subcontractor:
17-11 (1) is performing a significant percentage of the work
17-12 under the contract;
17-13 (2) receives from the agency, the contractor, or
17-14 another subcontractor a significant percentage of the contract
17-15 funds; or
17-16 (3) is responsible for performing a key component of
17-17 the work under the contract.
17-18 Sec. 2259.304. INFORMATION SHARING; COORDINATING OVERSIGHT.
17-19 (a) Each state agency shall make use of information from other
17-20 agencies in planning and executing fiscal and program monitoring of
17-21 its contractors and subcontractors.
17-22 (b) If a contractor has a contract with more than one
17-23 division of a state agency or more than one agency, the divisions
17-24 or agencies shall coordinate their contract monitoring activities
17-25 and share the results of their contract monitoring activities.
17-26 (c) The comptroller shall coordinate and manage activities
17-27 under this section.
18-1 Sec. 2259.305. DOUBLE-BILLING. (a) Each state agency shall
18-2 design and implement procedures to detect and report double-billing
18-3 by contractors.
18-4 (b) Each state agency shall send reports of each
18-5 double-billing incident to the State Auditor, the comptroller, the
18-6 legislature, and to any other state agency that paid the contractor
18-7 involved in the double-billing incident.
18-8 Sec. 2259.306. COMPARABLE COSTS. (a) Each state agency
18-9 shall monitor performance under a contract to verify that
18-10 comparable costs are being charged for comparable goods and
18-11 services.
18-12 (b) The State Auditor on request shall assist a state
18-13 agency's monitoring efforts under this section.
18-14 Sec. 2259.307. FRAUD DETECTION TECHNOLOGIES. With the
18-15 assistance of the comptroller and the State Auditor, each state
18-16 agency shall evaluate the costs and benefits of implementing new
18-17 technologies in fraud detection.
18-18 Sec. 2259.308. CONTRACT MONITORING RESPONSIBILITIES. As one
18-19 of its contract management policies, each state agency shall
18-20 establish and adopt by rule a policy that clearly defines the
18-21 contract monitoring roles and responsibilities of internal audit
18-22 staff and other inspection, investigative, or audit staff.
18-23 Sec. 2259.309. ADDRESSING DEFICIENCIES IN PERFORMANCE. (a)
18-24 Each state agency shall establish specific schedules for addressing
18-25 deficiencies in performance the agency identifies during its
18-26 contract monitoring activities. An agency shall address identified
18-27 deficiencies in accordance with its schedule.
19-1 (b) As part of its auditing of state agency activities, the
19-2 State Auditor shall audit for compliance with this section and
19-3 report a failure to comply to the Legislative Budget Board, the
19-4 House Appropriations Committee, and the Senate Finance Committee.
19-5 SECTION 2. Section 321.013, Government Code, is amended by
19-6 adding Subsection (k) to read as follows:
19-7 (k) The Legislative Budget Board shall inform the State
19-8 Auditor when a state agency has received a large increase in
19-9 appropriations, including a large increase in federal or other
19-10 money passed through to the agency. The State Auditor shall
19-11 consider this information in devising the audit plan.
19-12 SECTION 3. Section 496.051, Government Code, is amended to
19-13 read as follows:
19-14 Sec. 496.051. PURCHASING PROCEDURES. (a) The department
19-15 shall comply with any [special] purchasing procedures requiring
19-16 competition [competitive review] under Subtitle D, Title 10 [the
19-17 State Purchasing and General Services Act (Article 601b, Vernon's
19-18 Texas Civil Statutes)].
19-19 (b) The [board may authorize the executive director to adopt
19-20 policies allowing the institutional division to purchase directly
19-21 or at public auction livestock, agricultural commodities,
19-22 agricultural or industrial equipment, supplies, and raw materials
19-23 for agricultural or industrial production, breeding, consumption,
19-24 or resale, if the division determines that the purchase is
19-25 economically feasible and advantageous to the division. The State
19-26 Purchasing and General Services Act (Article 601b, Vernon's Texas
19-27 Civil Statutes) does not apply to purchases made under this
20-1 subsection. The institutional division shall notify the General
20-2 Services Commission as soon as practicable of a purchase made under
20-3 this subsection and the purchase price.]
20-4 [(c) To carry out Subsection (b), the] industry and
20-5 agricultural fund is created. The fund must be deposited in a
20-6 local bank. The fund may be expended only for purchases of
20-7 livestock, agricultural commodities, agricultural or industrial
20-8 equipment, supplies, and raw materials for agricultural or
20-9 industrial production, breeding, consumption, or resale [under
20-10 Subsection (b)]. Unexpended balances of the fund must be carried
20-11 forward from fiscal year to fiscal year.
20-12 SECTION 4. Chapter 555, Government Code, is amended by
20-13 adding Subchapter C to read as follows:
20-14 SUBCHAPTER C. LICENSE RECORDS REQUESTED BY ANOTHER AGENCY
20-15 Sec. 555.051. DEFINITION. In this subchapter, "state
20-16 agency" means any board, commission, department, or other agency in
20-17 the executive, legislative, or judicial branch of state government.
20-18 Sec. 555.052. STATE AGENCY RIGHT OF ACCESS TO LICENSING
20-19 INFORMATION. (a) Notwithstanding other law, a state agency shall
20-20 on request provide another state agency with all relevant
20-21 information about the status of a license held or formerly held by
20-22 one of its licensees, if the requesting state agency states that
20-23 the information is needed to evaluate a bid or proposal or the
20-24 status of a contract. The requesting state agency may request the
20-25 information about its contractors or subcontractors or its
20-26 potential contractors or subcontractors.
20-27 (b) The requesting state agency may not disclose the
21-1 information outside the agency if the information is confidential
21-2 or excepted from required disclosure under other law.
21-3 SECTION 5. Section 555.003, Government Code, is amended to
21-4 read as follows:
21-5 Sec. 555.003. EXCEPTION. Subchapter B [This chapter] does
21-6 not apply to files that relate to drivers of motor vehicles and
21-7 that are maintained by the Department of Public Safety under
21-8 Subchapter C, Chapter 521, Transportation Code [Section 21, Chapter
21-9 173, Acts of the 47th Legislature, Regular Session, 1941 (Article
21-10 6687b, Vernon's Texas Civil Statutes)].
21-11 SECTION 6. Section 552.116, Government Code, is amended to
21-12 read as follows:
21-13 Sec. 552.116. EXCEPTION: AUDIT [STATE AUDITOR] WORKING
21-14 PAPERS. An audit working paper or draft audit report of the state
21-15 auditor or of another governmental body in state government is
21-16 excepted from the requirements of Section 552.021.
21-17 SECTION 7. This Act takes effect September 1, 1997.
21-18 SECTION 8. The importance of this legislation and the
21-19 crowded condition of the calendars in both houses create an
21-20 emergency and an imperative public necessity that the
21-21 constitutional rule requiring bills to be read on three several
21-22 days in each house be suspended, and this rule is hereby suspended.