84R10101 YDB-D

By: Walle H.B. No. 3549

A BILL TO BE ENTITLED

AN ACT

relating to the review, approval, and monitoring of and reporting on state agency contracts.

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

SECTION 1. Section 2101.035, Government Code, is amended by adding Subsection (b) to read as follows:

(b) The comptroller shall provide within the uniform statewide accounting system for state agencies to be able to enter the following information with respect to a contract:

(1) the state agency solicitation number, contract number, contract amount, and purchase order number;

(2) any noncompetitive method used to procure the contract;

(3) payments made under the contract, including any payment made under the contract for an information resource technology project;

(4) any required review and approval of the contract by the contract advisory team; and

(5) any required quality assurance team approval of the contract.

SECTION 2. Section 2101.037, Government Code, is amended by adding Subsection (d) to read as follows:

(d) Each state agency shall report the information required by this subchapter and comptroller rules, including the information required in the uniform statewide accounting system under Section 2101.035(b).

SECTION 3. Subchapter C, Chapter 2101, Government Code, is amended by adding Section 2101.0373 to read as follows:

Sec. 2101.0373. CONTRACT MONITORING AND PAYMENTS. The comptroller shall monitor the total contract expenditures for each contract reported in the uniform statewide accounting system. The comptroller may not authorize a payment:

(1) that exceeds the amount of payments authorized under the contract; or

(2) for a major information resources project that has not been approved by the quality assurance team as required under Section 2054.158.

SECTION 4. Sections 2155.501(3) and (4), Government Code, are amended to read as follows:

(3) "Multiple award contract" means an award of a contract for an indefinite amount of one or more similar [goods or] services from a vendor.

(4) "Schedule" means a list of multiple award contracts from which agencies may purchase [goods and] services.

SECTION 5. Section 2155.502(c), Government Code, is amended to read as follows:

(c) The commission may not list a multiple award contract on a schedule developed under Subsection (a) if the [goods or] services provided by that contract:

(1) are available from only one vendor;

(2) are telecommunications services[, facilities, or equipment]; or

(3) are [commodity items as defined by Section 2157.068(a); or

[(4) are engineering services as described by Section 1001.003, Occupations Code, or] architectural services as described by Section 1051.001, Occupations Code.

SECTION 6. Section 2155.504, Government Code, is amended to read as follows:

Sec. 2155.504. USE OF SCHEDULE BY GOVERNMENTAL ENTITIES. (a) A state agency or local government may purchase [goods or] services directly from a vendor under a contract listed on a schedule developed under this subchapter. A purchase authorized by this section satisfies any requirement of state law relating to competitive bids or proposals and satisfies any applicable requirements of Chapter 2157.

(b) The price listed for a [good or] service under a multiple award contract is a maximum price. An agency or local government may negotiate a lower price for [goods or] services under a contract listed on a schedule developed under this subchapter.

SECTION 7. Section 2155.505(a)(3), Government Code, is amended to read as follows:

(3) "Veterans service agency" means a community-based organization that:

(A) is exempt from taxation under Section 501(a), Internal Revenue Code of 1986, as an organization described in Section 501(c)(3) of that code;

(B) has as its principal purpose to provide housing, substance abuse treatment, case management services, and employment training to low-income veterans, disabled veterans, and homeless veterans and their families; and

(C) employs veterans to provide at least 75 percent of the hours of direct labor by individuals required to [produce goods or] provide services required under a contract entered into under this section.

SECTION 8. Section 2262.101, Government Code, as amended by Chapters 676 (H.B. 1965) and 1227 (S.B. 1681), Acts of the 83rd Legislature, Regular Session, 2013, is reenacted and 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 and approving [making recommendations on the] solicitation documents and contract documents for contracts of state agencies that have a value of at least $10 million;

(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;

(3) providing recommendations to the comptroller regarding:

(A) the development of the contract management guide; and

(B) the training under Section 2262.053;

(4) providing recommendations and assistance to state agency personnel throughout the contract management process;

(5) coordinating and consulting with the quality assurance team established under Section 2054.158 on all contracts relating to a major information resources project; [and]

(6) [(4)] developing and recommending policies and procedures to improve state agency contract management practices;

(7) [(5)] developing and recommending procedures to improve state agency contracting practices by including consideration for best value; and

(8) [(6)] creating and periodically performing a risk assessment to determine the appropriate level of management and oversight of contracts by state agencies.

(b) The risk assessment created and performed [reviewed] under Subsection (a)(8) [(a)(6)] must include[, but is not limited to] the following criteria:

(1) the amount of appropriations to the agency;

(2) total contract value as a percentage of appropriations to the agency; or

(3) the impact of the functions and duties of the state agency on the health, safety, and well-being of residents [citizens].

(c) The comptroller shall oversee the activities of the team, including ensuring that the team carries out its duties under Subsections (a)(1), [Subsection] (a)(5), and (a)(7).

(d) The comptroller shall monitor a contract described by Subsection (a)(1) to determine whether:

(1) the solicitation and contract documents were reviewed and approved by the contract advisory team; and

(2) a payment under the contract exceeds the amount included in the solicitation documents for that contract.

(d-1) For a contract described by Subsection (a)(1), the comptroller may not authorize payments under the contract unless the solicitation and contract documents were reviewed and approved as required by that subdivision and the payment amount does not exceed the amount specified in the solicitation documents [A state agency shall:

[(1) comply with a recommendation made under Subsection (a)(1); or

[(2) submit a written explanation regarding why the recommendation is not applicable to the contract under review].

(e) The team may review and approve documents under Subsection (a)(1) only for compliance with contract management and best practices principles and may not make a recommendation regarding the purpose or subject of the contract.

(f) The team may develop an expedited process for reviewing and approving solicitations under Subsection (a)(1) for contracts:

(1) that the team identifies as posing a low risk of loss to the state; or

(2) for which templates will be used more than once by a state agency.

SECTION 9. Section 2155.502(e), Government Code, is repealed.

SECTION 10. (a) As soon as practicable after the effective date of this Act, the comptroller of public accounts shall adopt the rules and take the actions necessary to implement the changes in law made by this Act.

(b) The changes in law made by this Act apply only to a state agency contract entered into on or after January 1, 2016.

SECTION 11. To the extent of any conflict, this Act prevails over another Act of the 84th Legislature, Regular Session, 2015, relating to nonsubstantive additions to and corrections in enacted codes.

SECTION 12. This Act takes effect September 1, 2015.