By Gallego H.B. No. 3
76R545 JRD-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the state's procurement of certain goods and services
1-3 and to 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. (a) This chapter applies
1-10 only to each procurement of goods or services made by a state
1-11 agency that is neither made by the General Services Commission nor
1-12 made under purchasing authority delegated to the agency by or under
1-13 Section 2155.131, 2155.132, or 2155.133.
1-14 (b) This chapter applies to contracts and to contract
1-15 management activities that are related to the procurements to which
1-16 it applies.
1-17 (c) Examples of procurements to which this chapter applies
1-18 include procurements described by Subsection (a) that:
1-19 (1) involve the procurement under one or more
1-20 contracts of a variety of goods and services, such as obtaining or
1-21 paying for all or part of the cost of acute or long-term medical or
1-22 nursing care for residents of this state;
1-23 (2) are made with federal money, to the extent that
1-24 the application of this chapter is not prohibited by federal law;
2-1 and
2-2 (3) are procurements 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 (d) The identity of the contractor and the source of funds
2-6 an agency will use to make a procurement are not relevant in
2-7 determining whether this chapter applies to a procurement and to
2-8 activities related to the procurement.
2-9 (e) The General Services Commission on request shall
2-10 determine whether a procurement or type of procurement:
2-11 (1) is made under purchasing authority delegated to an
2-12 agency by or under Section 2155.131, 2155.132, or 2155.133; or
2-13 (2) is made under some other source of purchasing
2-14 authority.
2-15 Sec. 2259.002. DEFINITIONS. In this chapter:
2-16 (1) "Contract" includes a grant, other than a grant
2-17 made to a school district or a grant made for other academic
2-18 purposes, under which the recipient of the grant is required to
2-19 perform a specific act or service, supply a specific type of
2-20 product, or both.
2-21 (2) "State agency" has the meaning assigned by Section
2-22 2151.002.
2-23 Sec. 2259.003. OPEN MARKET PURCHASES. This chapter does not
2-24 require a state agency to purchase a good or service under contract
2-25 if the agency is authorized under other law to purchase the good or
2-26 service on the open market.
3-1 (Sections 2259.004-2259.050 reserved for expansion
3-2 SUBCHAPTER B. DUTIES OF COMPTROLLER
3-3 Sec. 2259.051. CONTRACT MANAGEMENT STANDARDS SET BY
3-4 COMPTROLLER. (a) The comptroller shall develop in accordance with
3-5 this chapter and adopt by rule standards to govern state agency
3-6 contract management activities in relation to procurements to which
3-7 this chapter applies, including standards to promote or establish
3-8 efficient and effective contract monitoring, contractor selection
3-9 processes, standard contract provisions for different types of
3-10 contracts, subcontractor performance, contract management training
3-11 for state agency personnel involved in procurement and for members
3-12 of state agency governing bodies, and payment or reimbursement
3-13 rates and methods.
3-14 (b) Each state agency shall comply with the applicable
3-15 standards that the comptroller establishes by rule under this
3-16 chapter. In the course of its regular audits of state agencies, the
3-17 state auditor shall:
3-18 (1) audit for compliance with the comptroller's
3-19 contract management rules; and
3-20 (2) report instances of noncompliance to the
3-21 comptroller and to the Legislative Audit Committee.
3-22 (c) The comptroller may assess sanctions against a state
3-23 agency if the comptroller finds that the agency has violated the
3-24 comptroller's contract management rules. The severity of the
3-25 sanction imposed shall depend on the seriousness of the violation,
3-26 the circumstances of the violation, and the number of violations.
3-27 After notifying the agency of the finding of a violation, the
4-1 comptroller may choose to impose one of the following sanctions on
4-2 the agency:
4-3 (1) withholding from the agency all or part of the
4-4 agency's money for the travel expenses of agency officers and
4-5 employees;
4-6 (2) assessing an administrative penalty against the
4-7 agency's appropriation, not to exceed $2,000 per violation, and
4-8 transferring the amount of the penalty to the undedicated portion
4-9 of the general revenue fund;
4-10 (3) withholding from the agency not more than 15
4-11 percent of the money appropriated to the agency for administrative
4-12 expenses;
4-13 (4) revoking purchasing authority that has been
4-14 delegated to the agency and transferring the purchasing authority
4-15 as appropriate to the General Services Commission or the Health and
4-16 Human Services Commission; or
4-17 (5) withholding all program funds from the agency.
4-18 Sec. 2259.052. CONTRACT MANAGEMENT HANDBOOK. (a) The
4-19 comptroller shall publish a contract management handbook.
4-20 (b) The handbook must include:
4-21 (1) common terms and definitions;
4-22 (2) models for selecting contractors in different
4-23 types of circumstances;
4-24 (3) ways to manage a contract for which there is a
4-25 lack of competition in the contractor selection process that are
4-26 designed to compensate for the lack of competition;
4-27 (4) ways to assess the degree of risk in a contract;
5-1 (5) standard contract provisions for state agencies to
5-2 incorporate as applicable in their contracts, and other sample
5-3 contract provisions for agencies to consider;
5-4 (6) methods for creating and establishing by contract
5-5 a remedies schedule and a sanctions plan;
5-6 (7) sample contract monitoring programs; and
5-7 (8) other matters relating to the comptroller's
5-8 contract management and procurement authority under this chapter as
5-9 determined by the comptroller.
5-10 Sec. 2259.053. COORDINATION OF CONTRACT MONITORING. The
5-11 comptroller shall coordinate contract monitoring activities within
5-12 and among state agencies in relation to procurements to which this
5-13 chapter applies.
5-14 Sec. 2259.054. CONTRACT MANAGEMENT DATABASE. (a) The
5-15 comptroller shall establish a central contract management database
5-16 for the use of all state agencies. To the extent possible, the
5-17 comptroller shall make the database a part of the uniform statewide
5-18 accounting system.
5-19 (b) A state agency shall send to the comptroller in the
5-20 manner prescribed by the comptroller the information that the
5-21 agency possesses that the comptroller requires for inclusion in the
5-22 database. The comptroller may require information about
5-23 procurements that are not otherwise subject to this chapter if the
5-24 comptroller considers it advantageous to the state.
5-25 (c) The comptroller shall include in the database:
5-26 (1) information that will allow state agencies to
5-27 identify businesses that have previously contracted with the state
6-1 and businesses that have previously served as subcontractors under
6-2 contracts with the state; and
6-3 (2) information that will describe the nature of the
6-4 state's experience with those businesses.
6-5 (d) The comptroller shall include in the database at least
6-6 the following information for each contractor who has done business
6-7 with the state and for each subcontractor who has worked under a
6-8 state contract:
6-9 (1) its legal name and address;
6-10 (2) its Texas Identification Number;
6-11 (3) the type of organization or entity it is, such as
6-12 a corporation, partnership, nonprofit organization, or political
6-13 subdivision;
6-14 (4) any other names under which it has operated in the
6-15 previous three years;
6-16 (5) the names of state agencies for which it has
6-17 directly or indirectly supplied goods or services in the previous
6-18 three years;
6-19 (6) the unit prices it charges, if applicable; and
6-20 (7) the dollar amounts involved in the contracts under
6-21 which it has supplied goods or services to the state in the
6-22 previous three years.
6-23 (e) A state agency shall use the database for contract
6-24 management purposes that include:
6-25 (1) coordinating fiscal and program monitoring;
6-26 (2) sharing the results of fiscal and program
6-27 monitoring of contractors and subcontractors;
7-1 (3) using information in the database as an aid to
7-2 making decisions about contractor selection and contract renewals;
7-3 (4) detecting double-billing by contractors; and
7-4 (5) evaluating whether the state is paying comparable
7-5 costs for comparable goods and services.
7-6 Sec. 2259.055. DEBARMENT. (a) As part of its contract
7-7 management rules, the comptroller shall establish standards and
7-8 procedures under which a state agency may debar a contractor from
7-9 contracting with the agency or subcontracting under an agency
7-10 contract in relation to procurements to which this chapter applies.
7-11 (b) The comptroller's standards must clearly specify the
7-12 types of conduct that may subject a contractor or subcontractor to
7-13 debarment. The standards and procedures must provide for a range in
7-14 terms of time for which and types of contracts from which a
7-15 contractor or subcontractor may be debarred, based on the
7-16 seriousness of the breach of contract or substandard contract
7-17 performance and the extent to which the state's interests were
7-18 damaged by the conduct.
7-19 (c) All state agency proceedings to debar a contractor or
7-20 subcontractor in relation to procurements to which this chapter
7-21 applies, including procurements subject to Section 2155.144, as
7-22 added by Section 1, Chapter 1045, Acts of the 75th Legislature,
7-23 Regular Session, 1997, are governed by the comptroller's standards
7-24 and procedures.
7-25 (d) A proceeding to debar a contractor or subcontractor
7-26 under this section is a contested case under Chapter 2001. The
7-27 contractor or subcontractor is entitled to a hearing on request.
8-1 An administrative law judge of the State Office of Administrative
8-2 Hearings shall preside over any hearing in the case. The state
8-3 agency seeking to debar a contractor or subcontractor from
8-4 contracting directly or indirectly with the agency shall make the
8-5 final administrative determination in the case based on the
8-6 administrative law judge's proposal for decision, if a hearing was
8-7 conducted, and on the comptroller's rules.
8-8 (e) A contractor or subcontractor who is the subject of a
8-9 debarment proceeding under this section and who is aggrieved by the
8-10 final administrative decision is entitled to judicial review of the
8-11 decision.
8-12 Sec. 2259.056. RECOVERY OF COMPTROLLER'S COSTS. The
8-13 comptroller may, to the extent feasible, establish a system of
8-14 billings and charges that allows the comptroller to recover from
8-15 affected state agencies the comptroller's costs in implementing
8-16 this chapter. The Legislative Budget Board or the director of the
8-17 board must approve the reasonableness of the comptroller's bill or
8-18 charge before the state agency pays it.
8-19 Sec. 2259.057. COORDINATION WITH GENERAL SERVICES
8-20 COMMISSION. The comptroller and the General Services Commission
8-21 shall adopt a memorandum of understanding under which the
8-22 comptroller and the commission coordinate, to the extent feasible,
8-23 their respective duties related to procurement.
8-24 Sec. 2259.058. REPORT BY COMPTROLLER. The comptroller shall
8-25 report the findings and activities of that office under this
8-26 chapter semiannually to the Legislative Budget Board, the
8-27 Legislative Audit Committee, the House Appropriations Committee,
9-1 the Senate Finance Committee, the House General Investigating
9-2 Committee, and the Senate General Investigating Committee.
9-3 (Sections 2259.059-2259.100 reserved for expansion
9-4 SUBCHAPTER C. GENERAL STATE AGENCY CONTRACT MANAGEMENT DUTIES
9-5 Sec. 2259.101. AGENCY CONTRACT MANAGEMENT GUIDELINES.
9-6 (a) Each state agency that makes procurements to which this
9-7 chapter applies shall establish and adopt by rule clearly stated
9-8 and comprehensive written contract management guidelines.
9-9 (b) The guidelines must be consistent with the comptroller's
9-10 contract management handbook and must clearly reflect the state's
9-11 expectations to state agency staff and to potential contractors
9-12 with the agency.
9-13 (c) State agency management shall comply with the guidelines
9-14 and enforce the guidelines within and on behalf of the agency.
9-15 (d) The guidelines must at least:
9-16 (1) provide for the review of financial performance
9-17 and compliance records relating to performance under the agency's
9-18 contracts;
9-19 (2) establish standards and procedures consistent with
9-20 the comptroller's standards and procedures to debar breaching or
9-21 poorly performing contractors and subcontractors from future
9-22 contracting with the state agency or subcontracting under agency
9-23 contracts in relation to procurements to which this chapter
9-24 applies;
9-25 (3) establish contract management training
9-26 requirements that include a review of contract management
9-27 responsibilities;
10-1 (4) take into account the need for a reasonable degree
10-2 of uniformity in measuring contractor performance; and
10-3 (5) take into account the need to continue service to
10-4 state agency clients when contractor performance problems are being
10-5 addressed.
10-6 Sec. 2259.102. CONTRACT MANAGEMENT TRAINING. (a) Each
10-7 member of the governing body of a state agency that makes
10-8 procurements to which this chapter applies and each employee of the
10-9 agency whose duties include contract management or other
10-10 procurement responsibilities shall obtain training in contract
10-11 management. The training must include review of the comptroller's
10-12 statewide contract management standards.
10-13 (b) A state agency shall ensure that the training required
10-14 by this section is obtained.
10-15 (c) The General Services Commission shall coordinate
10-16 training under this section.
10-17 Sec. 2259.103. AGENCY PERFORMANCE MEASURES. The Legislative
10-18 Budget Board may develop performance measures relating to contract
10-19 management functions and require information from state agencies
10-20 that will allow the legislature to assess state agency progress in
10-21 effective contract management.
10-22 Sec. 2259.104. ANNUAL RISK ASSESSMENT. Each state agency
10-23 shall perform annually a risk assessment of its contracts and
10-24 submit a report of its findings to the Legislative Audit Committee
10-25 and the Legislative Budget Board not later than January 15.
11-1 (Sections 2259.105-2259.150 reserved for expansion
11-2 SUBCHAPTER D. CONTRACTOR SELECTION
11-3 Sec. 2259.151. COMPETITIVE CONTRACTOR SELECTION PROCEDURES.
11-4 Each state agency shall assess its contractor selection procedures
11-5 and shall use competitive selection procedures to the greatest
11-6 extent possible when selecting its contractors.
11-7 Sec. 2259.152. DETERMINING THE LOWEST AND BEST BID OR
11-8 PROPOSAL. (a) In determining the lowest and best bid or proposal,
11-9 a state agency shall consider:
11-10 (1) the vendor's price to provide the good or service;
11-11 (2) the probable quality of the offered good or
11-12 service; and
11-13 (3) the quality of the vendor's past performance in
11-14 contracting with the agency, with other state entities, or with
11-15 private sector entities.
11-16 (b) This section does not apply to a procurement covered by
11-17 Section 2155.144, as added by Section 1, Chapter 1045, Acts of the
11-18 75th Legislature, Regular Session, 1997.
11-19 Sec. 2259.153. DISCLOSURE OF POTENTIAL CONTRACTOR AND
11-20 SUBCONTRACTOR INFORMATION. (a) To aid in evaluating a potential
11-21 contractor's past performance and probable performance in the
11-22 future, a state agency making a procurement to which this chapter
11-23 applies shall require:
11-24 (1) that each potential contractor disclose in the
11-25 bid, proposal, or other applicable expression of interest the
11-26 identity of subcontractors it has recently used on similar
11-27 contracts and the identity of subcontractors it intends to use if
12-1 it is awarded the contract;
12-2 (2) that each potential contractor and each intended
12-3 subcontractor of a potential contractor disclose in the bid,
12-4 proposal, or other applicable expression of interest the names and
12-5 addresses of its directors, its principal stockholders, and any
12-6 other beneficiaries of the company;
12-7 (3) that each potential contractor and each intended
12-8 subcontractor of a potential contractor disclose in the bid,
12-9 proposal, or other applicable expression of interest:
12-10 (A) its previous or current contracts with any
12-11 state agency, including a description of the goods or services it
12-12 provides or provided under the other contracts and the amount of
12-13 money it receives or received under the contracts;
12-14 (B) previous or current contracts with any state
12-15 agency under which it was a subcontractor, including a description
12-16 of the goods or services it provides or provided under the other
12-17 contracts and the amount of money it receives or received under the
12-18 contracts; and
12-19 (C) any lawsuits, sanctions, or other negative
12-20 actions taken against it by the contracting agency, a contractor,
12-21 or a subcontractor in connection with a previous or current
12-22 contract with a state agency; and
12-23 (4) that each potential contractor and each intended
12-24 subcontractor of a potential contractor:
12-25 (A) disclose in the bid, proposal, or other
12-26 applicable expression of interest the current status of any
12-27 license, certificate, or other permit the potential contractor or
13-1 subcontractor is required to have to perform under the contract;
13-2 and
13-3 (B) certify, if true, in the bid, proposal, or
13-4 other applicable expression of interest that the license,
13-5 certificate, or other permit has not expired or been suspended or
13-6 revoked.
13-7 (b) A state agency shall include in its requests for bids,
13-8 proposals, or other applicable expression of interest a statement
13-9 about the applicability of relevant criminal law, including Section
13-10 37.10, Penal Code, to presenting information and documentation to
13-11 the agency in connection with a bid, proposal, or other applicable
13-12 expression of interest. A state agency shall refer to the
13-13 appropriate authorities for investigation or prosecution any
13-14 suspected violation of relevant criminal law, including Section
13-15 37.10, Penal Code, related to presenting information and
13-16 documentation to the agency in connection with a bid, proposal,
13-17 other applicable expression of interest, or contract.
13-18 Sec. 2259.154. CLARITY IN REQUESTS FOR BIDS OR PROPOSALS.
13-19 Before soliciting bids or proposals for a new contract or a
13-20 contract renewal, a state agency shall make a formal assessment of
13-21 the type of good or service to be solicited and shall provide a
13-22 clear definition of that good or service in the request for bids or
13-23 proposals.
13-24 (Sections 2259.155-2259.200 reserved for expansion
13-25 SUBCHAPTER E. CONTRACT PROVISIONS
13-26 Sec. 2259.201. PERFORMANCE MEASURES REQUIRED. (a) Each
13-27 state agency shall incorporate performance measures in each of its
14-1 contracts for goods or services that are subject to this chapter
14-2 that will allow the agency and state oversight agencies to assess
14-3 the quality of performance of contractors and subcontractors.
14-4 (b) The performance measures must include a schedule for
14-5 performance measurement. Performance must be measured more
14-6 frequently under contracts that present more risks.
14-7 Sec. 2259.202. CONTRACT OVERSIGHT PROVISIONS. (a) Each
14-8 state agency shall include contract oversight provisions in each of
14-9 its contracts for goods or services that are subject to this
14-10 chapter that reflect the amount of risk associated with the
14-11 contract.
14-12 (b) The contract oversight provisions must be designed to
14-13 ensure at a minimum that the fiscal performance and compliance
14-14 requirements of the contract are met.
14-15 (c) The contract oversight provisions must include a
14-16 provision that requires the contractor and subcontractors under the
14-17 contract to allow the state agency and state oversight entities
14-18 timely access to the records of the contractor or subcontractors
14-19 that may be needed to assess fiscal and compliance performance
14-20 under the contract. The contract provision must also provide that
14-21 the agency may cancel the contract or suspend payments under the
14-22 contract if the agency or a state oversight entity is not allowed
14-23 timely access to the records.
14-24 (d) The contract oversight provisions must include a
14-25 provision that requires the contractor and subcontractors under the
14-26 contract to promptly inform the state agency during the term of the
14-27 contract:
15-1 (1) of any proposed or final action to revoke,
15-2 suspend, or take any other disciplinary action in connection with,
15-3 a license, certificate, or other permit that the contractor or
15-4 subcontractor is required to have to perform under the contract;
15-5 and
15-6 (2) whether the license, certificate, or other permit
15-7 has expired.
15-8 Sec. 2259.203. REMEDIES AND SANCTIONS SCHEDULES. (a) Each
15-9 state agency shall create and incorporate in each of its contracts
15-10 for goods or services that are subject to this chapter a remedies
15-11 schedule, a graduated sanctions schedule, or both, for breach of
15-12 the contract or substandard performance under the contract. The
15-13 remedies and sanctions provisions must be consistent with the
15-14 comptroller's statewide standards.
15-15 (b) The comptroller and other state agencies shall design
15-16 fair and feasible standards that will hold contractors accountable
15-17 for breach of contract or substandard performance under a contract
15-18 without diminishing the number of able providers who are willing to
15-19 contract with the state.
15-20 Sec. 2259.204. CONTRACT PROVISIONS APPLICABLE TO
15-21 SUBCONTRACTORS; INFORMATION ABOUT SUBCONTRACTORS; SUBSTITUTION OF
15-22 SUBCONTRACTORS. (a) Each state agency shall include provisions in
15-23 each of its contracts for goods or services that are subject to
15-24 this chapter that ensure that all contract provisions that are
15-25 relevant to or affected by subcontractor performance are applied to
15-26 subcontractors. The agency may require in its contract with the
15-27 contractor:
16-1 (1) that certain subcontractors must contract directly
16-2 with the agency; or
16-3 (2) that the contractor must include specified
16-4 provisions in its written contracts with subcontractors.
16-5 (b) Each state agency shall include provisions in each of
16-6 its contracts for goods or services that are subject to this
16-7 chapter that require the primary contractor to report relevant
16-8 subcontractor information to the agency.
16-9 (c) Each state agency may include a provision in its
16-10 contracts for goods or services that are subject to this chapter
16-11 that requires the primary contractor to obtain the prior permission
16-12 of the agency before the primary contractor may substitute one
16-13 subcontractor for another to perform work under the contract, and
16-14 that specifies appropriate sanctions or remedies for a breach of
16-15 this provision. Each state agency shall include a provision in
16-16 each of its contracts for goods or services that are subject to
16-17 this chapter that requires the primary contractor to timely notify
16-18 the agency of a subcontractor substitution, and that allows the
16-19 agency to suspend payments under the contract for a breach of this
16-20 provision.
16-21 Sec. 2259.205. LIABILITY INSURANCE COVERAGE REQUIRED. Each
16-22 state agency shall, when feasible, include provisions in each of
16-23 its contracts for goods or services that are subject to this
16-24 chapter that require the contractor to carry director or officer
16-25 liability insurance coverage in an amount not less than the value
16-26 of the contract that is sufficient to protect the interests of the
16-27 state in the event an actionable act or omission by a director or
17-1 officer of the contractor damages the state's interests.
17-2 (Sections 2259.206-2259.250 reserved for expansion
17-3 SUBCHAPTER F. PAYMENT AND REIMBURSEMENT METHODS
17-4 Sec. 2259.251. PAYMENT METHODS AND CONTRACTOR SELECTION.
17-5 (a) In developing contract policies, the comptroller and other
17-6 state agencies shall consider the interaction of contractor
17-7 selection methods and payment methods.
17-8 (b) A state agency shall compensate for the risks inherent
17-9 in a lack of competition in the contractor selection process and in
17-10 the use of certain payment or reimbursement methods by including
17-11 appropriate provisions in the affected contracts and by
17-12 appropriately increasing its contract monitoring activities for
17-13 those contracts.
17-14 Sec. 2259.252. REEVALUATION OF PAYMENT AND REIMBURSEMENT
17-15 RATES. (a) To ensure that its payment and reimbursement methods
17-16 and rates are appropriate, each state agency that makes
17-17 procurements to which this chapter applies shall reevaluate at
17-18 least biennially its payment and reimbursement methods and rates,
17-19 especially methods and rates based on historical funding levels or
17-20 on a formula established by agency rule rather than being based on
17-21 reasonable and necessary actual costs incurred.
17-22 (b) A state agency shall submit formal rate reevaluation
17-23 information to the Legislative Budget Board and the comptroller as
17-24 part of the agency's legislative appropriations request.
17-25 (Sections 2259.253-2259.300 reserved for expansion
17-26 SUBCHAPTER G. CONTRACTOR OVERSIGHT
17-27 Sec. 2259.301. ANNUAL ASSESSMENT OF RISK. Under the
18-1 comptroller's direction, the management of each state agency that
18-2 makes procurements to which this chapter applies shall assess
18-3 annually the risk of fraud, abuse, or waste in its contractor
18-4 selection process, contract provisions, and payment and
18-5 reimbursement rates and methods and for the different types of
18-6 goods and services for which it contracts that are subject to this
18-7 chapter and submit a report of its findings to the Legislative
18-8 Audit Committee and the Legislative Budget Board not later than
18-9 January 15.
18-10 Sec. 2259.302. COSTS MUST BE REASONABLE AND NECESSARY. Each
18-11 state agency shall ensure through contract management activities
18-12 that all costs paid or reimbursed under a contract are reasonable
18-13 and necessary.
18-14 Sec. 2259.303. RESPONSIBILITY FOR MONITORING SUBCONTRACTORS.
18-15 (a) Each state agency shall establish clear guidelines in its
18-16 contracts that are subject to this chapter that establish the
18-17 extent to which the agency and the extent to which the primary
18-18 contractor is responsible for monitoring subcontractors.
18-19 (b) The state agency shall monitor the subcontractor's
18-20 performance if the subcontractor:
18-21 (1) is performing a significant percentage of the work
18-22 under the contract;
18-23 (2) receives from the agency, the contractor, or
18-24 another subcontractor a significant percentage of the contract
18-25 funds; or
18-26 (3) is responsible for performing a key component of
18-27 the work under the contract.
19-1 Sec. 2259.304. INFORMATION SHARING; COORDINATING OVERSIGHT.
19-2 (a) Each state agency shall make use of information from other
19-3 agencies in planning and executing fiscal and program monitoring of
19-4 its contractors and subcontractors.
19-5 (b) If a contractor has a contract with more than one
19-6 division of a state agency or more than one agency, the divisions
19-7 or agencies shall coordinate their contract monitoring activities
19-8 and share the results of their contract monitoring activities.
19-9 (c) The comptroller shall coordinate and manage activities
19-10 under this section.
19-11 Sec. 2259.305. DOUBLE-BILLING. (a) Each state agency that
19-12 makes procurements to which this chapter applies shall design and
19-13 implement procedures to detect and report double-billing by
19-14 contractors.
19-15 (b) Each state agency shall send reports of each
19-16 double-billing incident to the state auditor, the comptroller, the
19-17 legislature, and to any other state agency that paid the contractor
19-18 involved in the double-billing incident.
19-19 Sec. 2259.306. FRAUD DETECTION TECHNOLOGIES. With the
19-20 assistance of the comptroller and the state auditor, each state
19-21 agency that makes procurements to which this chapter applies shall
19-22 evaluate the costs and benefits of implementing new technologies in
19-23 fraud detection.
19-24 Sec. 2259.307. CONTRACT MONITORING RESPONSIBILITIES. As one
19-25 of its contract management policies, each state agency that makes
19-26 procurements to which this chapter applies shall establish and
19-27 adopt by rule a policy that clearly defines the contract monitoring
20-1 roles and responsibilities, if any, of internal audit staff and
20-2 other inspection, investigative, or audit staff.
20-3 Sec. 2259.308. ADDRESSING DEFICIENCIES IN PERFORMANCE.
20-4 (a) Each state agency that makes procurements to which this
20-5 chapter applies shall establish specific schedules for addressing
20-6 deficiencies in performance the agency identifies during its
20-7 contract monitoring activities. An agency shall address identified
20-8 deficiencies in accordance with its schedule.
20-9 (b) As part of its regular auditing of state agency
20-10 activities, the state auditor shall audit for compliance with this
20-11 section and report a failure to comply to the Legislative Budget
20-12 Board, the House Appropriations Committee, and the Senate Finance
20-13 Committee.
20-14 Sec. 2259.309. COMPARABLE COSTS. (a) Each state agency
20-15 that makes procurements to which this chapter applies shall monitor
20-16 performance under a contract to verify that comparable costs are
20-17 being charged for comparable goods and services.
20-18 (b) The state auditor on request shall assist a state
20-19 agency's monitoring efforts under this section.
20-20 SECTION 2. Section 321.013, Government Code, is amended by
20-21 adding Subsection (k) to read as follows:
20-22 (k) The Legislative Budget Board shall inform the State
20-23 Auditor when a state agency has received a large increase in
20-24 appropriations, including a large increase in federal or other
20-25 money passed through to the agency. The State Auditor shall
20-26 consider this information in devising the audit plan.
20-27 SECTION 3. Chapter 555, Government Code, is amended by
21-1 adding Subchapter C to read as follows:
21-2 SUBCHAPTER C. LICENSE RECORDS REQUESTED BY ANOTHER AGENCY
21-3 Sec. 555.051. DEFINITION. In this subchapter, "state
21-4 agency" means any board, commission, department, or other agency in
21-5 the executive, legislative, or judicial branch of state government.
21-6 Sec. 555.052. STATE AGENCY RIGHT OF ACCESS TO LICENSING
21-7 INFORMATION. (a) Notwithstanding other law, a state agency shall
21-8 on request provide another state agency with all relevant
21-9 information about the status of a license held or formerly held by
21-10 one of its licensees, if the requesting state agency states that
21-11 the information is needed to evaluate a bid or proposal or the
21-12 status of a contract. The requesting state agency may request the
21-13 information about its contractors or subcontractors or its
21-14 potential contractors or subcontractors.
21-15 (b) The requesting state agency may not disclose the
21-16 information outside the agency if the information is confidential
21-17 or excepted from required disclosure under other law.
21-18 SECTION 4. Section 555.003, Government Code, is amended to
21-19 read as follows:
21-20 Sec. 555.003. EXCEPTION. Subchapter B [This chapter] does
21-21 not apply to files that relate to drivers of motor vehicles and
21-22 that are maintained by the Department of Public Safety under
21-23 Subchapter C, Chapter 521, Transportation Code.
21-24 SECTION 5. The comptroller shall conduct an in-depth study
21-25 of the comparative costs and benefits of different standard payment
21-26 methods, such as the cost reimbursement method and the unit rate
21-27 method. State agencies shall cooperate with the comptroller in the
22-1 study. The comptroller shall report the results of the study to
22-2 the governor and to the presiding officer of each house of the
22-3 legislature not later than December 15, 2000.
22-4 SECTION 6. This Act takes effect September 1, 1999.
22-5 SECTION 7. The importance of this legislation and the
22-6 crowded condition of the calendars in both houses create an
22-7 emergency and an imperative public necessity that the
22-8 constitutional rule requiring bills to be read on three several
22-9 days in each house be suspended, and this rule is hereby suspended.