BILL ANALYSIS

H.B. 2439

By: Parker

Government Efficiency & Reform

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Current Texas policy and procedures greatly utilize the private sector in delivering necessary public services.  Interested parties report that in recent fiscal years Texas has awarded more than 4,500 individual contracts worth approximately $1 million or more to private sector entities for delivering necessary public services.  However, these parties have noted that Texas would be well served in measuring the success of a procurement project not only in the ability of project participants to follow all applicable laws, but also in participants' ability to effectively and efficiently deliver public services.  Stakeholders have noted that such measurement could lead to greater emphasis on the productivity of a procurement project and, in turn, lead to the better delivery of necessary public services by contractors of the state.

H.B. 2439 seeks to address this issue by requiring the state auditor to review three large contracts for efficiency and effectiveness in providing services to Texans.

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

H.B. 2439 amends the Government Code to require the state auditor, each year under the annual audit plan for the state, to review at least three major state agency contracts that have a value of at least $1 million and involve the provision of services to residents of Texas based on the risk assessments performed by the state auditor. The bill limits such a review to an analysis of the efficiency and effectiveness of the contract in providing the services.

EFFECTIVE DATE

September 1, 2013.