BILL ANALYSIS
By: Paxton
Committee Report (Substituted)
BACKGROUND AND PURPOSE
The passage of HB 26 during the 79th Legislative Session established a policy of making state contract documents generally available in an online format on a key-word searchable website. Prior to that time, there was no uniform policy across state government on what documents should be made available. Nor was there the ability for the public to locate specific documents relating to contracts across state government from one convenient online location.
However, HB 26 (79R) limited the contracts, which were required to be made available on the searchable website to those over $5 million. In order to further the goal of making state government more accessible and accountable to the general public, this substitute would make significantly more contracts easily accessible to the public.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
The bill amends Section 2177.052 of the Government Code by altering the definition of "major contract," for which notice is required, from a flat dollar amount to references to existing statutes that detail reporting requirements for state agency contracts.
Additionally, the bill extends the definition of "major contract" to include certain contracts with amendments, modifications, renewals or extensions; for which notice is not required under current statute; that is a purchase order, an interagency contact, or a contract paid only with funds not appropriated by the General Appropriations Act; and with a value that exceeds $50,000.
The bill is effective for a major contract, as defined, entered into on or after the effective date of the Act for purposes of complying with Section 322.020(c)(1) of the Government Code; and for which requests for proposal, invitation to bid, or comparable solicitation is made on or after the effective date of this Act, for purposes of complying with Section 322.020(c)(2) of the Government Code.
The bill also moves the responsibility for reporting the contracts in an online database to the Legislative Budget Board.
EFFECTIVE DATE
September 1, 2007.
COMPARISON OF ORIGINAL TO SUBSTITUTE
This original bill amends the Government Code by changing the definition of a "major contract," reducing it from $5 million to $10,000; whereas the substitute changes the definition of a "major contract" to differing amounts, based on current statutes that require the reports to be prepared and makes conforming changes to reflect this revision.
The substitute extends the definition of "major contract" to include certain contracts with amendments, modifications, renewals or extensions; for which notice is not required under current statute; that is a purchase order, an interagency contact, or a contract paid only with funds not appropriated by the General Appropriations Act; and with a value that exceeds $50,000; whereas, the original does not.
The original bill makes no change to existing code as to the state entity responsible for reporting contracts; whereas the substitute moves the responsibility for reporting the contracts in an online database to the Legislative Budget Board.