81R577 BEF-F

By: Eissler H.B. No. 1441

A BILL TO BE ENTITLED

AN ACT

relating to the relationship between and operation of the Texas Education Agency and regional education service centers.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter B, Chapter 7, Education Code, is amended by adding Section 7.030 to read as follows:

Sec. 7.030. CONTRACTS BETWEEN AGENCY AND REGIONAL EDUCATION SERVICE CENTERS. (a) For purposes of this section, a person is considered "purchasing personnel" if the person is:

(1) the commissioner;

(2) a deputy commissioner;

(3) an ethics advisor; or

(4) an employee of the agency who makes decisions or recommendations to the agency regarding:

(A) the terms or conditions for a contract with a regional education service center;

(B) whether to enter into a contract with a regional education service center; or

(C) whether to approve a contract with a regional education service center.

(b) Before entering into a contract with a regional education service center, the commissioner shall require each person who is purchasing personnel to disclose in writing to the commissioner and the general counsel of the agency any known personal, professional, business, or familial relationship between the person and an owner, employee, or paid consultant of a subcontractor of the regional education service center. The commissioner shall provide all statements received under this subsection to the comptroller or the comptroller's successor in function responsible for administering the procurement functions under Subtitle D, Title 10, Government Code. In this subsection, "owner" includes a major stockholder, partner, or sole proprietor.

(c) Each contract between the agency and a regional education service center must contain:

(1) a date for each signature to the contract;

(2) an independence statement in which each party:

(A) certifies that the contracting process was independent and free from actual or apparent conflicts of interest; and

(B) agrees to notify the other party if an actual or apparent conflict of interest arises that could impact either party's independence; and

(3) any other information required by the board of directors of the regional education service center.

(d) Before entering into a contract with a regional education service center, the agency shall publish a notice in the Texas Register of the agency's intent to enter into the contract. The notice must be published not later than the 14th day before the date the agency enters into the contract.

(e) When the agency enters into a contract with a regional education service center, the agency shall publish notice of the contract in the Texas Register not later than the 14th day after the date the contract is entered into.

(f) A notice under Subsection (d) or (e) must include:

(1) the name of the regional education service center;

(2) the total amount of the contract;

(3) a description of the services to be provided; and

(4) the term of the contract.

SECTION 2. Section 8.004, Education Code, is amended to read as follows:

Sec. 8.004. EXECUTIVE DIRECTOR. The regional education service center board of directors shall employ an executive director. Before finally hiring an executive director, the board of directors shall provide the commissioner an opportunity to review and provide written comments on the selection of the executive director. [The selection and dismissal of the executive director is subject to the approval of the commissioner.] The executive director is the chief executive officer of the regional education service center and may employ personnel as necessary to carry out the functions of the center.

SECTION 3. Subchapter B, Chapter 8, Education Code, is amended by adding Section 8.058 to read as follows:

Sec. 8.058. CONTRACTS FOR CONSULTING AND PROFESSIONAL SERVICES. (a) In this section:

(1) "Consulting service" means the service of studying or advising a regional education service center under a contract that does not involve the traditional relationship of employer and employee.

(2) "License" means a license, certificate, registration, permit, or other authorization that a person must obtain to engage in a particular business, occupation, or profession.

(3) "Licensing authority" means a department, commission, board, office, or other agency of this state or a political subdivision of this state that issues a license.

(4) "Professional services" has the meaning assigned by Section 2254.002, Government Code.

(b) The executive director of a regional education service center may enter into a contract for a consulting service or for professional services.

(c) If the executive director reasonably anticipates that the total value of the payments under a contract described by Subsection (b), or under an amendment, modification, renewal, or extension of a contract described by Subsection (b), will exceed $25,000, the executive director shall award the contract using competitive sealed proposals or another competitive procurement procedure that state agencies are allowed to use under state law and that is appropriate under the circumstances. The executive director shall:

(1) specifically determine that the person to whom the contract is awarded is capable of performing the work; and

(2) award the contract to the person whose proposal, bid, or offer will provide the best value to the regional education service center.

(d) A person may submit a bid or proposal for and enter into a contract described by Subsection (b), notwithstanding any law or rule that would otherwise prohibit the person as a license holder or as a person practicing a regulated occupation from:

(1) submitting a competitive bid or proposal for a professional services contract or consulting service contract; or

(2) entering into a professional services contract or consulting service contract awarded by competitive sealed proposals or another competitive procurement procedure.

(e) A licensing authority may not suspend or revoke a person's license or otherwise take disciplinary action against the person because the person submitted a bid or proposal or entered into a contract as provided by Subsection (d).

SECTION 4. Section 8.103, Education Code, is amended to read as follows:

Sec. 8.103. ANNUAL EVALUATION. (a) The commissioner shall conduct an annual evaluation of each [executive director and] regional education service center. Each evaluation must include:

(1) an audit of the center's finances;

(2) a review of the center's performance on the indicators adopted under Section 8.101; and

(3) a review of client satisfaction with services provided under Subchapter B [; and

[(4) a review of any other factor the commissioner determines to be appropriate].

(b) Each regional education service center board of directors shall conduct an annual evaluation of the center's executive director. Each evaluation must consider any written comments submitted by the commissioner.

SECTION 5. Section 2254.003(a), Government Code, is amended to read as follows:

(a) Except as provided by Section 2254.0035, a [A] governmental entity may not select a provider of professional services or a group or association of providers or award a contract for the services on the basis of competitive bids submitted for the contract or for the services, but shall make the selection and award:

(1) on the basis of demonstrated competence and qualifications to perform the services; and

(2) for a fair and reasonable price.

SECTION 6. Subchapter A, Chapter 2254, Government Code, is amended by adding Section 2254.0035 to read as follows:

Sec. 2254.0035. CERTAIN CONTRACTS WITH TEXAS EDUCATION AGENCY. (a) In this section:

(1) "License" means a license, certificate, registration, permit, or other authorization that a person must obtain to engage in a particular business, occupation, or profession.

(2) "Licensing authority" means a department, commission, board, office, or other agency of this state or a political subdivision of this state that issues a license.

(b) This section applies to a contract for professional services entered into by the Texas Education Agency when the amount of the contract, including an amendment, modification, renewal, or extension of the contract, exceeds $25,000.

(c) The Texas Education Agency shall award a contract to which this section applies using competitive sealed proposals or another competitive procurement procedure that state agencies are allowed to use under state law and that is appropriate under the circumstances. The Texas Education Agency shall:

(1) specifically determine that the person to whom the contract is awarded is capable of performing the work; and

(2) award the contract to the person whose proposal, bid, or offer will provide the best value to the state.

(d) A person may submit a bid or proposal for and enter into a contract to which this section applies, notwithstanding any law or rule that would otherwise prohibit the person as a license holder or as a person practicing a regulated occupation from:

(1) submitting a competitive bid or proposal for a professional services contract; or

(2) entering into a professional services contract awarded by competitive sealed proposals or another competitive procurement procedure.

(e) A licensing authority may not suspend or revoke a person's license or otherwise take disciplinary action against the person because the person submitted a bid or proposal or entered into a contract as provided by Subsection (d).

(f) A contract to which this section applies that is made in violation of this section is void as against public policy.

(g) A contract to which this section applies is exempt from all other provisions of this subchapter except Section 2254.002.

SECTION 7. Subchapter B, Chapter 2254, Government Code, is amended by adding Section 2254.041 to read as follows:

Sec. 2254.041. CERTAIN CONTRACTS WITH TEXAS EDUCATION AGENCY. (a) In this section:

(1) "License" means a license, certificate, registration, permit, or other authorization that a person must obtain to engage in a particular business, occupation, or profession.

(2) "Licensing authority" means a department, commission, board, office, or other agency of this state or a political subdivision of this state that issues a license.

(b) This section applies to a contract for a consulting service entered into by the Texas Education Agency when the amount of the contract, including an amendment, modification, renewal, or extension of the contract, exceeds $25,000.

(c) The Texas Education Agency shall award a contract to which this section applies using competitive sealed proposals or another competitive procurement procedure that state agencies are allowed to use under state law and that is appropriate under the circumstances. The Texas Education Agency shall:

(1) specifically determine that the person to whom the contract is awarded is capable of performing the work; and

(2) award the contract to the person whose proposal, bid, or offer will provide the best value to the state.

(d) A person may submit a bid or proposal for and enter into a contract to which this section applies, notwithstanding any law or rule that would otherwise prohibit the person as a license holder or as a person practicing a regulated occupation from:

(1) submitting a competitive bid or proposal for a consulting service contract; or

(2) entering into a consulting service contract awarded by competitive sealed proposals or another competitive procurement procedure.

(e) A licensing authority may not suspend or revoke a person's license or otherwise take disciplinary action against the person because the person submitted a bid or proposal or entered into a contract as provided by Subsection (d).

(f) A contract to which this section applies that is made in violation of this section is void as against public policy.

(g) Sections 2254.021 and 2254.024(a)(1) apply in relation to a contract to which this section applies. A contract to which this section applies is exempt from all other provisions of this subchapter.

SECTION 8. (a) Section 7.030, Education Code, as added by this Act, applies to a contract between the Texas Education Agency and a regional education service center entered into on or after the effective date of this Act. A contract entered into before the effective date of this Act is governed by the law in effect on the date the contract is entered into, and the former law is continued in effect for that purpose.

(b) Section 8.004, Education Code, as amended by this Act, applies to an executive director of a regional education service center selected on or after the effective date of this Act. The selection of an executive director selected before the effective date of this Act is governed by the law in effect when the executive director is selected, and the former law is continued in effect for that purpose.

(c) Section 8.058, Education Code, as added by this Act, applies to a contract entered into by a regional education service center on or after the effective date of this Act. A contract entered into before the effective date of this Act is governed by the law in effect on the date the contract is entered into, and the former law is continued in effect for that purpose.

(d) Section 8.103, Education Code, as amended by this Act, applies to an evaluation of a regional education service center conducted on or after the effective date of this Act. An evaluation of a regional education service center conducted before the effective date of this Act is governed by the law in effect when the evaluation is conducted, and the former law is continued in effect for that purpose.

(e) Section 2254.003(a), Government Code, as amended by this Act, and Sections 2254.0035 and 2254.041, Government Code, as added by this Act, apply to a contract entered into by the Texas Education Agency on or after the effective date of this Act. A contract entered into before the effective date of this Act is governed by the law in effect on the date the contract is entered into, and the former law is continued in effect for that purpose.

SECTION 9. This Act takes effect September 1, 2009.