81R1396 YDB-D
 
  By: Shapleigh S.B. No. 953
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to contracting issues of state agencies.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2155.004(a), Government Code, is amended
  to read as follows:
         (a)  A state agency may not accept a bid or award a contract
  that includes proposed financial participation by a person who
  participated, to any extent, [received compensation from the agency
  to participate] in preparing the specifications or request for
  proposals on which the bid or contract is based.
         SECTION 2.  Section 2155.077(b), Government Code, is amended
  to read as follows:
         (b)  Except as provided by Subsection (d) and subject to
  Chapter 2262, the commission shall bar a vendor from participating
  in state contracts under Subsection (a) for a period that is
  commensurate with the seriousness of the vendor's action and the
  damage to the state's interests.
         SECTION 3.  Section 2155.144(d), Government Code, is amended
  to read as follows:
         (d)  The [Subject to Subsection (e), the] agency shall [may]
  consider all relevant factors in determining the best value,
  including:
               (1)  all start-up, [any] installation, transition,
  monitoring, and administrative costs;
               (2)  the delivery terms;
               (3)  the quality and reliability of the vendor's goods
  or services;
               (4)  the extent to which the goods or services meet the
  agency's needs;
               (5)  indicators of probable vendor performance under
  the contract such as past vendor performance, the vendor's
  financial resources and ability to perform, the vendor's experience
  and responsibility, and the vendor's ability to provide reliable
  maintenance agreements;
               (6)  the impact on the ability of the agency to comply
  with laws and rules relating to historically underutilized
  businesses or relating to the procurement of goods and services
  from persons with disabilities;
               (7)  the total long-term cost to the agency of
  acquiring the vendor's goods or services, including the cost of
  replacing the vendor's goods or services if the vendor fails to
  fulfill its obligations under the contract and the local economic
  impact of any state employee job loss associated with the
  procurement;
               (8)  the cost of any employee training associated with
  the acquisition;
               (9)  the effect of an acquisition on agency
  productivity;
               (10)  the acquisition price; and
               (11)  any other factor relevant to determining the best
  value for the agency in the context of a particular acquisition.
         SECTION 4.  Section 2262.001, Government Code, is amended by
  amending Subdivisions (3) and (4) and adding Subdivision (3-a) to
  read as follows:
               (3)  "Contract manager" means a person who:
                     (A)  is employed by a state agency; and
                     (B)  has significant contract management duties
  for the state agency[, as determined by the agency in consultation
  with the state auditor].
               (3-a)  "Executive director" means the administrative
  head of a state agency.
               (4)  "Major contract" means a contract, including a
  renewal of a contract, that has a value of at least $1 million.
         SECTION 5.  Section 2262.002, Government Code, is amended by
  adding Subsection (c) to read as follows:
         (c)  The comptroller on a case-by-case basis may exempt a
  state agency from the requirements of this chapter.
         SECTION 6.  Sections 2262.051(a) and (b), Government Code,
  are amended to read as follows:
         (a)  In consultation with the attorney general, the
  Department of Information Resources, [the comptroller,] and the
  state auditor, the comptroller [commission] shall develop or
  periodically update a contract management guide for use by state
  agencies.  Participation by the state auditor under this
  subsection is subject to approval by the legislative audit
  committee for inclusion in the audit plan under Section 321.013(c).
         (b)  The comptroller [commission] may adopt rules necessary
  to develop or update the guide.
         SECTION 7.  Section 2262.052, Government Code, as amended by
  Chapters 309 (H.B. 3042) and 785 (S.B. 19), Acts of the 78th
  Legislature, Regular Session, 2003, is reenacted and amended to
  read as follows:
         Sec. 2262.052.  COMPLIANCE WITH GUIDE.  (a)  Each state
  agency shall review, adopt, and comply with the contract management
  guide.
         (b)  Subject to the legislative audit committee's approval
  of including the work described by this subsection in the audit plan
  under Section 321.013(c), the state auditor shall:
               (1)  periodically monitor compliance with this
  section;
               (2)  report any noncompliance to:
                     (A)  the governor;
                     (B)  the lieutenant governor;
                     (C)  the speaker of the house of representatives;
  and
                     (D)  the team; and
               (3)  assist, in coordination with the attorney general
  and the comptroller, a noncomplying state agency to comply with
  this section.
         (c)  The comptroller may on a case-by-case basis exempt a
  state agency from complying with the contract management guide.
         SECTION 8.  The heading to Section 2262.053, Government
  Code, is amended to read as follows:
         Sec. 2262.053.  TRAINING FOR CONTRACT MANAGERS.
         SECTION 9.  Section 2262.053, Government Code, is amended by
  amending Subsections (a), (b), and (d) and adding Subsections (e),
  (f), and (g) to read as follows:
         (a)  In coordination with the [comptroller,] Department of
  Information Resources, [and] state auditor, and Health and Human
  Services Commission, the comptroller or a private vendor selected
  by the comptroller [commission] shall develop [or administer] a
  training program for contract managers.
         (b)  The training must provide the contract manager with
  information regarding how to:
               (1)  fairly and objectively select and negotiate with
  the most qualified contractor;
               (2)  establish rates and prices that are cost-effective
  and that reflect the cost of providing the service;
               (3)  include provisions in a contract that hold the
  contractor accountable for results;
               (4)  form, monitor, oversee, and enforce a contract;
               (5)  make payments consistent with the contract;
               (6)  comply with any requirements or goals contained in
  the contract management guide; and
               (7)  use and apply contract planning and procurement
  skills and advanced sourcing strategies, techniques, and tools.
         (d)  The comptroller [Texas Building and Procurement
  Commission] shall administer the training program under this
  section.
         (e)  The comptroller shall certify contract managers who
  have completed the contract management training required under this
  section and keep a list of those contract managers.
         (f)  The program developed under this section must include a
  separate class on ethics and contracting.
         (g)  A state agency or educational entity may develop
  qualified contract manager training to supplement the training
  required under this section. The comptroller may incorporate the
  training developed by the agency or entity into the training
  program under this section.
         SECTION 10.  Subchapter B, Chapter 2262, Government Code, is
  amended by adding Section 2262.0535 to read as follows:
         Sec. 2262.0535.  TRAINING FOR GOVERNING BODIES.  (a)  The
  comptroller or a private vendor selected by the comptroller shall
  adapt the program developed under Section 2262.053 to develop an
  abbreviated contract management and oversight program for training
  the members of the governing bodies of state agencies.  The training
  may be provided together with other required training for members
  of state agency governing bodies.
         (b)  All members of the governing body of a state agency
  shall complete at least one course of the training developed under
  this section. This subsection does not apply to a state agency that
  does not enter into any contracts.
         SECTION 11.  Section 2262.054, Government Code, is amended
  to read as follows:
         Sec. 2262.054.  PUBLIC COMMENT.  The comptroller
  [commission] by rule may establish procedures by which each state
  agency is required to invite public comment by publishing the
  proposed technical specifications for major contracts on the
  Internet through the information service known as the Texas
  Marketplace or through a suitable successor information service.
  The guide must define "technical specifications."
         SECTION 12.  Subchapter B, Chapter 2262, Government Code, is
  amended by adding Sections 2262.055 through 2262.068 to read as
  follows:
         Sec. 2262.055.  FEES FOR TRAINING. The comptroller shall
  set and collect a fee from state agencies that receive training
  under this subchapter in an amount that recovers the comptroller's
  costs for the training.
         Sec. 2262.056.  CONTRACT MANAGEMENT STAFF; WORKLOAD
  MEASURES.  Each state agency shall:
               (1)  identify appropriate staffing levels necessary to
  perform the contract management duties and activities required
  under this chapter; and
               (2)  develop workload measures and standards for the
  contract management staff.
         Sec. 2262.057.  STATE AGENCY REPOSITORY. Each state agency
  shall maintain in a central location all contracts for that agency.
         Sec. 2262.058.  REPORTING CONTRACTOR PERFORMANCE. (a)  
  After a contract is completed or otherwise terminated, each state
  agency shall review the contractor's performance under the
  contract.
         (b)  Using the forms developed by the team under Sections
  2262.104 and 2262.105, the state agency shall report to the
  comptroller on the results of the review regarding the contractor's
  performance under the contract.
         Sec. 2262.059.  CONTRACTOR PERFORMANCE DATABASE. (a)  The
  comptroller shall store in a database contractor performance
  reviews as provided by this section.
         (b)  The comptroller shall evaluate the contractor's
  performance based on the information reported under Section
  2262.058 and criteria established by the comptroller by rule.  
  Based on the results of the evaluation, the comptroller shall
  determine whether the contractor is approved or not approved under
  this subsection or barred under Section 2155.077.  The comptroller
  by rule shall state generally the reasons for which a contractor
  will be determined to be approved or not approved under this
  subsection.
         (c)  The comptroller shall establish an evaluation process
  that allows vendors who receive an unfavorable contractor
  performance review or who are the subject of an unfavorable
  determination made by the comptroller under Subsection (b) to
  protest the unfavorable review or unfavorable determination by the
  comptroller.
         (d)  The comptroller shall develop a database that
  incorporates the performance reviews and aggregates the reviews for
  each contractor.  The database must also include the determination
  made by the comptroller under Subsection (b) for each contractor.
         (e)  A state agency may use the performance review database
  to determine whether to award a contract to a contractor included in
  the database.
         Sec. 2262.060.  EXCLUDING CONTRACTOR FROM SOLICITATION
  PROCESS.  Based on its own contractor performance reviews and on
  information in the database developed under Section 2262.059, a
  state agency may exclude a contractor from the solicitation process
  for a contract if the agency determines the contractor has
  performed poorly on a previous state contract without regard to
  whether the contractor has been barred under Section 2155.077.
         Sec. 2262.061.  PERFORMANCE MEASURES; REPORTS. (a)  Each
  state agency shall develop a plan and timeline for incorporating
  process-oriented and outcome-based performance measures into all
  contracts entered into by the agency.  This includes ensuring that
  performance measures are written into each contract before
  execution.
         (b)  Before including the performance measures in a state
  agency contract, a state agency shall make available to the public a
  draft of the proposed performance measures and allow adequate time
  for review, comment, and incorporation of comments into the
  performance measures.
         (c)  Not later than March 1 of each year, each state agency
  shall report to the team, governor, lieutenant governor, and
  speaker of the house of representatives regarding performance
  measures in the agency's contracts. The report must describe the
  agency's efforts to include performance-based provisions in the
  agency's contracts.
         (d)  Each state agency shall make the report accessible to
  the public on the agency's website.
         Sec. 2262.062.  ANNUAL EVALUATION OF CERTAIN CONTRACTS. A
  state agency that enters into a contract with a monetary value that
  exceeds the monetary threshold provided by comptroller rule shall
  have an independent evaluator annually review the contract and the
  contractor's performance under the contract to determine whether
  the contractor is complying with the contract terms.
         Sec. 2262.063.  CONTRACT MANAGERS. (a)  Each state agency
  that enters into contracts other than interagency contracts shall
  establish a career ladder program for contract management in the
  agency.
         (b)  An employee hired as a contract manager may engage in
  procurement planning, contract solicitation, contract formation,
  price establishment, and other contract activities.
         (c)  Each state agency shall determine, in consultation with
  the state auditor, the amount and significance of contract
  management duties sufficient for an employee to be considered a
  contract manager under this chapter.
         (d)  A contract manager shall complete the training program
  and become certified under Section 2262.053.
         Sec. 2262.064.  APPROVAL OF CONTRACTS. (a)  Each state
  agency shall establish formal guidelines regarding who may approve
  a contract for the agency.
         (b)  Each state agency shall adopt administrative rules to
  establish:
               (1)  a monetary threshold above which agency contracts
  and amendments to or extensions of agency contracts require written
  authorization by the agency executive director; and
               (2)  a monetary threshold above which a draft contract
  may not be entered into unless the agency complies with public
  notice, public comment, and governing body approval procedures
  strictly analogous to rulemaking procedures under Chapter 2001
  before the contract is entered into.
         (c)  A state agency may not enter into a contract unless the
  contract is:
               (1)  approved and signed by at least two persons
  authorized to approve contracts for the agency; or
               (2)  approved by the agency's governing body in an open
  meeting.
         (d)  A person authorized to approve contracts for a state
  agency must sign a conflict-of-interest statement agreeing to
  disclose any potential conflict of interest before approving a
  contract.
         (e)  A state agency contract must include a provision
  designating who may authorize amendments to the contract for the
  state agency.  For state agency contracts valued in excess of $1
  million, the agency executive director must authorize a contract
  amendment in writing.
         (f)  Each state agency shall annually report to the
  comptroller a list of persons authorized to approve contracts at
  the agency. The list must include each person's name, position, and
  supervisory responsibility, if any.
         Sec. 2262.065.  NEGOTIATION OF CONTRACT BY SINGLE EMPLOYEE
  PROHIBITED. A state agency may not negotiate a contract with only
  one employee engaging in the negotiation.
         Sec. 2262.066.  DEVELOPMENT OF OPTIMIZED MODEL FOR CERTAIN
  CONTRACTS. (a)  If a state agency determines that a proposed
  contract or proposed contract extension or amendment would
  outsource existing services or functions performed by the agency
  that have a value of $10 million or more, the agency shall create an
  optimized model for the identified functions or services to
  determine how and at what cost the agency could most efficiently
  provide the functions or services.
         (b)  The model must show consideration of all relevant
  factors, including:
               (1)  best practices in Texas and other states;
               (2)  available technology;
               (3)  access to benefits and services for clients;
               (4)  program integrity; and
               (5)  assessment of state agency skills available
  throughout the life of the project.
         (c)  An agency that develops an optimized model under this
  section shall use it as the basis for cost comparison when deciding
  whether to outsource the identified functions or services.
         (d)  A model developed under this section is confidential and
  is not subject to disclosure under Chapter 552 until a final
  determination has been made to award the contract for which the
  model was developed.
         Sec. 2262.067.  ANALYSIS OF SERVICES AND FUNCTIONS.  (a)  In
  this section, "inherently governmental in nature" means a function
  or service that involves the exercise or use of governmental
  authority or discretion.
         (b)  If a state agency determines that a proposed contract or
  proposed contract extension or amendment would outsource existing
  services or functions performed by the agency that have a value of
  $10 million or more, then before the agency may issue a competitive
  solicitation for the contract or amend or extend the contract, the
  agency shall contract with the State Council on Competitive
  Government for its staff to perform an analysis to determine if any
  of the services or functions to be performed under the contract or
  contract extension or amendment are inherently governmental in
  nature.
         (c)  Except as provided by Subsection (e), if the State
  Council on Competitive Government determines that a service or
  function to be performed under the contract or contract extension
  or amendment is inherently governmental in nature, the state agency
  may not:
               (1)  contract with a private entity to perform the
  service or function; or
               (2)  amend or extend the contract, if a private entity
  is to perform the service or function under the contract extension
  or amendment.
         (d)  The analysis required under this section must use the
  guidelines developed by the State Council on Competitive
  Government.
         (e)  A state agency may contract with a private entity to
  perform a service or function or amend or extend an existing
  contract to allow a private entity to perform a service or function
  that the State Council on Competitive Government determines to be
  inherently governmental in nature if the chief administrative
  officer of the agency issues a report stating that there is a
  compelling state interest in outsourcing the service or function.
         Sec. 2262.068.  FULL AND FAIR COST COMPARISON.  (a)  If a
  state agency determines that a proposed contract or proposed
  contract extension or amendment would outsource existing services
  or functions performed by the agency that have a value greater than
  $10 million or another amount provided by comptroller rule, the
  agency shall:
               (1)  conduct a full and fair cost comparison to
  determine whether a private entity could perform the service or
  function with a comparable or better level of quality at a cost
  savings to the state; and
               (2)  prepare a business case providing the initial
  justification for the proposed contract or proposed contract
  extension or amendment that includes:
                     (A)  the results of the comparison required under
  Subdivision (1); and
                     (B)  the anticipated return on investment in terms
  of cost savings and efficiency for the proposed contract or
  proposed contract extension or amendment.
         (b)  To perform the comparison required by Subsection
  (a)(1), the state agency may:
               (1)  contract with the State Council on Competitive
  Government to have its staff perform the comparison; or
               (2)  use the methodology provided in Section 2162.103.
         (c)  A state agency shall submit the business case required
  under Subsection (a)(2) to the governor, lieutenant governor,
  speaker of the house of representatives, Legislative Budget Board,
  and standing committees of the legislature that have primary
  jurisdiction over the agency, over state appropriations, and over
  state purchasing.
         SECTION 13.  Section 2262.101, Government Code, is amended
  to read as follows:
         Sec. 2262.101.  CREATION; DUTIES.  (a)  The Contract
  Advisory Team is created to assist state agencies in improving
  contract management practices by:
               (1)  reviewing the solicitation of major contracts by
  state agencies;
               (2)  reviewing any findings or recommendations made by
  the state auditor, including those made under Section 2262.052(b),
  regarding a state agency's compliance with the contract management
  guide; [and]
               (3)  providing recommendations to the comptroller
  [commission] regarding:
                     (A)  the development of the contract management
  guide; [and]
                     (B)  the training under Section 2262.053; and
                     (C)  any state agency that should be exempt under
  Section 2262.002(c) or 2262.052(c) from complying with the contract
  management guide;
               (4)  certifying that state agencies have complied with
  Sections 2262.066 and 2262.068; and
               (5)  setting standards for outsourcing state services
  and prescribing methods for monitoring those services.
         (b)  The team shall consult with state agencies in developing
  forms, contract terms, guidelines, and criteria required under this
  chapter.
         SECTION 14.  Section 2262.102(a), Government Code, is
  amended to read as follows:
         (a)  The team consists of the following five members:
               (1)  one member from the attorney general's office;
               (2)  two members [one member] from the comptroller's
  office;
               (3)  one member from the Department of Information
  Resources; and
               (4)  [one member from the Texas Building and
  Procurement Commission; and
               [(5)]  one member from the governor's office.
         SECTION 15.  Subchapter C, Chapter 2262, Government Code, is
  amended by adding Sections 2262.104 and 2262.105 to read as
  follows:
         Sec. 2262.104.  UNIFORM DEFINITIONS AND FORMS. (a)  The team
  established under Section 2262.101 shall develop and publish a
  uniform set of definitions for use as applicable in state
  contracts.  Each state agency shall use the terminology as
  applicable in the contracts entered into by the agency.
         (b)  The team shall develop and publish a uniform and
  automated set of forms that a state agency must use in the different
  stages of the contracting process.
         Sec. 2262.105.  FORMS FOR REPORTING CONTRACTOR PERFORMANCE.  
  As part of the uniform forms published under Section 2262.104, the
  team shall develop forms for use by state agencies in reporting a
  contractor's performance under Section 2262.058.
         SECTION 16.  Chapter 2262, Government Code, is amended by
  adding Subchapters D, E, F, and G to read as follows:
  SUBCHAPTER D. CONTRACT PROVISIONS
         Sec. 2262.151.  USE OF UNIFORM FORMS.  A state agency shall
  use the forms developed under Section 2262.104 as templates,
  guides, or samples for contracts entered into by the agency.
         Sec. 2262.152.  CONTRACT TERMS RELATING TO NONCOMPLIANCE.  
  (a)  A state agency contract shall include provisions authorizing
  the agency to impose clearly defined penalties for noncompliance
  with contract terms. The provisions must include mechanisms for
  identifying when a contractor fails to comply with the contract
  terms, remedies to compel compliance, and remedies available for
  persons affected by the noncompliance.
         (b)  The team shall develop recommendations for contract
  terms regarding penalties for contractors who do not comply with a
  contract, including penalties for contractors who do not disclose
  conflicts of interest under Section 2262.201.  The team may develop
  recommended contract terms that are generally applicable to state
  contracts and terms that are applicable to important types of state
  contracts.
         (c)  A state agency may include applicable recommended terms
  in a contract entered into by the agency.
         Sec. 2262.153.  REQUIRED PROVISION RELATING TO
  SUBCONTRACTOR COMPLIANCE.  Each state agency contract must require
  that each contractor provide a list of all subcontractors for the
  contract and include a provision that:
               (1)  holds the contractor responsible for the conduct
  of all subcontractors in complying with the contractor's contract
  with the state agency; and
               (2)  requires each subcontractor to disclose all
  potential conflicts of interest to the state agency, according to
  guidelines developed under Section 2262.201(b), when the
  subcontractor contracts with or is otherwise hired by the
  contractor.
         Sec. 2262.154.  LANGUAGE CONTAINED IN REQUEST FOR PROPOSALS.
  Each state agency contract must incorporate the language used in
  the request for proposals for that contract.
         Sec. 2262.155.  PROVISION RELATED TO POLITICAL
  CONTRIBUTIONS.  Each contract entered into by a state agency must
  include a provision that prohibits the contractor from making a
  campaign contribution to an elected official during the term of the
  contract.
         Sec. 2262.156.  REQUIRED CONTRACTOR DISCLOSURE STATEMENT;
  OUTSOURCING. (a)  Each contract entered into by a state agency must
  include a provision requiring disclosure of any services materially
  necessary to fulfill the contract, including services performed by
  a subcontractor, that will be or are performed in a country other
  than the United States.  This section does not apply to services
  that are occasional, minor, or incidental to fulfilling the
  contract.
         (b)  The contract must include a provision allowing the state
  agency to terminate the contract and solicit a new contract, except
  when a contractor takes prompt corrective action described by
  Subsection (c), if:
               (1)  the contractor or a subcontractor of the
  contractor performs a service materially necessary to fulfill the
  contract in a country other than the United States; and
               (2)  the contractor does not disclose in the contract
  that the service will be performed in a country other than the
  United States.
         (c)  A contractor may replace a subcontractor without
  termination of a contract under this section if the contractor
  determines that the subcontractor is performing a service
  materially necessary to fulfill the contract in a country other
  than the United States and did not disclose that fact to the
  contractor.
  SUBCHAPTER E. ETHICS; CONFLICT OF INTEREST; PROHIBITIONS
         Sec. 2262.201.  CONTRACTOR CONFLICTS OF INTEREST. (a)  Each
  contractor who responds to a state agency's contract solicitation
  shall disclose in its response all potential conflicts of interest
  to the agency.
         (b)  The team shall develop guidelines to aid contractors and
  state agencies in identifying potential conflicts of interest.
         Sec. 2262.202.  EXECUTIVE DIRECTORS; ETHICS IN CONTRACTING
  CLASS. Each executive director of a state agency shall annually
  complete the ethics and contracting class developed under Section
  2262.053(f).  This section does not apply to a state agency that
  does not enter into any contracts.
         Sec. 2262.203.  PROHIBITIONS RELATED TO STATE CONTRACTS.
  (a) A state agency may not enter into or renew a contract with a
  person who has as an employee a former state agency employee who was
  involved in contracting for the agency in the preceding six months.
         (b)  A state agency may not employ an individual who was
  employed by a person that conducts business with the state agency
  before the last day of the sixth month after the date the individual
  was last employed by the person.
         (c)  The team may exempt a state agency from a prohibition
  provided by Subsection (a) or (b).
  SUBCHAPTER F. CHANGES TO CONTRACTS
         Sec. 2262.251.  CONTRACT AMENDMENTS, EXTENSIONS, AND CHANGE
  ORDERS. (a)  An extension of or amendment to a contract, including
  a change order, is subject to the same rules and approval processes
  as the original contract.
         (b)  A state agency may not extend or amend a contract
  unless:
               (1)  the agency complies with the same rules and
  approval processes for the extension or amendment as required for
  the original contract; and
               (2)  a contract manager for the agency states in
  writing why the extension or amendment is necessary.
         (c)  This section does not affect whether a state agency is
  required to undertake a new solicitation process in the manner
  required for a new contract in order to extend or amend a contract.
         Sec. 2262.252.  AMENDMENT REQUIRING SIGNIFICANT ALTERATION.
  A state agency may not amend a contract to significantly alter the
  original terms or monetary value of the contract awarded through a
  competitive bidding process unless the state agency conducts
  another competitive bidding process for the goods or services under
  the new terms.
         Sec. 2262.253.  CERTAIN CONTRACT EXTENSIONS.  This
  subchapter does not apply to contract extensions that are
  specifically established as a component of the original
  procurement.
  SUBCHAPTER G. OFFICE OF CONTRACT MANAGEMENT; HIGH-RISK CONTRACTS
         Sec. 2262.301.  DEFINITIONS. In this subchapter:
               (1)  "High-risk contract" means a state agency contract
  that:
                     (A)  has a value of at least $10 million; or
                     (B)  has a value of less than $10 million, but has
  high-risk factors as identified by a state agency's office of
  contract management.
               (2)  "Major information resources project" has the
  meaning assigned by Section 2054.003(10).
               (3)  "Quality assurance team" means the quality
  assurance team established under Section 2054.158.
               (4)  "Solicitation" means a solicitation for bids,
  offers, qualifications, proposals, or similar expressions of
  interest for a high-risk contract.
         Sec. 2262.302.  ESTABLISHMENT; GENERAL DUTIES.  Each state
  agency subject to this chapter shall establish an office of
  contract management to:
               (1)  develop criteria for identifying high-risk
  factors in contracts;
               (2)  review and approve an action related to a
  high-risk contract as provided by Section 2262.303;
               (3)  provide recommendations and assistance to agency
  personnel throughout the contract management process; and
               (4)  coordinate and consult with the quality assurance
  team on all high-risk contracts relating to a major information
  resources project.
         Sec. 2262.303.  REVIEW AND APPROVAL; WAIVER.  (a)  A state
  agency must receive approval from the agency's office of contract
  management before taking the following actions in relation to a
  high-risk contract:
               (1)  publicly releasing solicitation documents;
               (2)  executing a final contract; and
               (3)  making a payment or a series of payments that equal
  half of the contract value.
         (b)  In determining whether to approve an action described by
  Subsection (a), the agency's office of contract management shall
  review related documentation to ensure that potential risks related
  to the high-risk contract have been identified and mitigated.
         (c)  The comptroller by rule may adopt criteria for waiving
  the review and approval requirements under Subsections (a) and (b).
         Sec. 2262.304.  SOLICITATION AND CONTRACT CANCELLATION.
  After review of and comment on the matter by the Legislative Budget
  Board and the governor, a state agency's office of contract
  management may recommend the cancellation of a solicitation or a
  contract during the review process under Section 2262.303 if:
               (1)  a proposed solicitation is not in the best
  interest of the state;
               (2)  a proposed contract would place the state at an
  unacceptable risk if executed; or
               (3)  an executed contract is experiencing performance
  failure or payment irregularities.
         Sec. 2262.305.  AUDIT OF HIGH-RISK CONTRACT.  The state
  auditor shall conduct an audit of a state agency contract
  identified as high risk by a state agency or the team.
         SECTION 17.  Sections 2155.004(e), 2262.001(1-a), and
  2262.0011, Government Code, are repealed.
         SECTION 18.  (a)  Sections 2262.065 through 2262.068,
  Government Code, and Subchapter G, Chapter 2262, Government Code,
  as added by this Act, apply only to a contract for which a state
  agency first advertises or otherwise solicits bids, proposals,
  offers, or qualifications on or after the effective date of this
  Act.
         (b)  Section 2262.201(a), Government Code, as added by this
  Act, applies only in relation to a contract for which a state agency
  first solicits bids, proposals, offers, or qualifications on or
  after the date that the Contract Advisory Team's guidelines
  regarding potential conflicts of interest take effect.
         SECTION 19.  Not later than May 1, 2010, the comptroller of
  public accounts shall develop the training program, including the
  ethics and contracting class, required by Section 2262.053,
  Government Code, as amended by this Act, and Section 2262.0535,
  Government Code, as added by this Act.
         SECTION 20.  A member of a governing body of a state agency
  is not required to complete the training developed under Section
  2262.0535, Government Code, as added by this Act, until September
  1, 2011.
         SECTION 21.  An executive director of a state agency is not
  required to comply with Section 2262.202, Government Code, as added
  by this Act, until September 1, 2011.
         SECTION 22.  A contract manager is not required to be
  certified under Chapter 2262, Government Code, as amended by this
  Act, until September 1, 2011.
         SECTION 23.  (a)  As soon as practicable, and not later than
  May 1, 2010, the Contract Advisory Team shall develop the forms,
  criteria, recommendations, and provisions required by this Act,
  including Sections 2262.104, 2262.105, 2262.152, and 2262.201(b),
  Government Code, as added by this Act.
         (b)  A state agency is not required to comply with Sections
  2262.057 through 2262.064 and Sections 2262.151, 2262.152,
  2262.153, and 2262.156, Government Code, as added by this Act,
  until September 1, 2011. A state agency may comply earlier if the
  forms, electronic requirements, database, or other items are
  available before that date.
         SECTION 24.  This Act takes effect November 1, 2009.