By: Capriglione, Zerwas, Roberts, Walle, H.B. No. 18

Rose, et al.

A BILL TO BE ENTITLED

AN ACT

relating to oversight of and requirements applicable to state contracts and other state financial and accounting issues, including the delivery of certain Medicaid medical transportation program services; authorizing a fee.

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

ARTICLE 1. GENERAL STATE CONTRACTING AND OTHER FINANCIAL ISSUES

SECTION 1.01. Subchapter C, Chapter 316, Government Code, is amended by adding Section 316.025 to read as follows:

Sec. 316.025. CONTRACTS TO CONFORM WITH LIMITATIONS OF GENERAL APPROPRIATIONS ACT. Notwithstanding any other law, a contract obligation of a state agency, as defined by Section 2103.001, including an institution of higher education, as defined by Section 61.003, Education Code, may be limited or amended by the General Appropriations Act.

SECTION 1.02. Section 321.013, Government Code, is amended by adding Subsections (m) and (n) to read as follows:

(m) In devising the audit plan under Subsection (c), the State Auditor shall consider the performance of audits of programs operated by health and human services agencies that:

(1) have not recently received audit coverage; and

(2) have expenditures of less than $100 million per year.

(n) In devising the audit plan under Subsection (c), the State Auditor shall consider the performance of audits of programs operated by the Texas Alcoholic Beverage Commission that have not recently received audit coverage.

SECTION 1.03. Chapter 322, Government Code, is amended by adding Section 322.025 to read as follows:

Sec. 322.025. REPORT ON CONTRACT SPENDING. (a) In this section, "state agency" has the meaning assigned by Section 2056.001.

(b) Not later than September 15 of each year, the board shall issue a report detailing how much of each state agency's budget for the previous state fiscal year was spent on contracts.

SECTION 1.04. Section 441.1855, Government Code, is amended to read as follows:

Sec. 441.1855. RETENTION OF CONTRACT AND RELATED DOCUMENTS BY STATE AGENCIES. Notwithstanding Section 441.185 or 441.187, a state agency:

(1) for each contract entered into by the agency, shall retain in its records, to the extent the documents exist, [each contract entered into by the state agency and] all contract planning, solicitation, evaluation, monitoring, modification, and closeout documents related to the contract, including at a minimum:

(A) a copy of all general and internal correspondence related to the contract;

(B) the records or minutes of all internal or external meetings related to the contract, including sign-in sheets or agendas;

(C) a copy of all contractor invoices provided under the contract;

(D) any information relating to discount provisions for prompt payment under the contract and any letters related to contract price deductions or fee adjustments;

(E) a copy of all supporting documentation for contractor payments or progress payments under the contract;

(F) a copy of any audits performed involving the contract; and

(G) a copy of all conflict of interest documentation and forms required by law related to the contract; and

(2) shall retain [may destroy] the contract and documents described by Subdivision (1) until:

(A) [only after the seventh anniversary of] the date[:

[(A)] the contract is completed or expires; and [or]

(B) if [all] issues [that] arise from any litigation, claim, negotiation, audit, open records request, administrative review, or other action involving the contract or documents, the seventh anniversary of the date the issues are resolved.

SECTION 1.05. Section 531.102, Government Code, is amended by adding Subsection (a-7) to read as follows:

(a-7) The inspector general shall appoint oversight personnel to audit, review, and investigate high-risk contracts and procurement and contracting processes of the commission, as identified by the office of inspector general, and provide on a quarterly basis reports on the monitoring to the inspector general, attorney general, and governor. The quarterly reports must be posted on the commission's publicly accessible Internet website. The oversight personnel may work with the state auditor's office, governor's office, Legislative Budget Board, attorney general's office, quality assurance team established under Section 2054.158, and contract advisory team established under Subchapter C, Chapter 2262, in performing the oversight personnel's duties under this subsection.

SECTION 1.06. Subchapter F, Chapter 2054, Government Code, is amended by adding Section 2054.1184 to read as follows:

Sec. 2054.1184. ASSESSMENT OF MAJOR INFORMATION RESOURCES PROJECT. (a) A state agency proposing to spend appropriated funds for a major information resources project must first conduct an execution capability assessment to:

(1) determine the agency's capability for implementing the project;

(2) reduce the agency's financial risk in implementing the project; and

(3) increase the probability of the agency's successful implementation of the project.

(b) A state agency shall submit to the department, the quality assurance team established under Section 2054.158, and the Legislative Budget Board a detailed report that identifies the agency's organizational strengths and any weaknesses that will be addressed before the agency initially spends appropriated funds for a major information resources project.

(c) A state agency may contract with an independent third party to conduct the assessment under Subsection (a) and prepare the report described by Subsection (b).

SECTION 1.07. Section 2102.0091(c), Government Code, is amended to read as follows:

(c) In addition to the requirements of Subsection (a), a state agency shall file with the Governor's Office of Budget, Planning, and Policy, the state auditor, and the Legislative Budget Board an [any] action plan or other response issued by the state agency's governing board or the administrator of the state agency if the state agency does not have a governing board in response to every issue identified in the report of the state agency's internal auditor.

SECTION 1.08. Chapter 2115, Government Code, is amended by adding Section 2115.006 to read as follows:

Sec. 2115.006. OVERPAYMENTS BY STATE AGENCY. (a) If a state agency makes an overpayment to a vendor, the vendor must return the amount overpaid by the agency before the 121st calendar day after the date the vendor receives written notice of the overpayment. If the amount overpaid by the state agency is not returned before the 121st calendar day, the vendor is subject to late payment interest of 10 percent per year on the amount of the overpayment that has not been returned, which begins to accrue on the date the overpayment becomes overdue.

(b) If the vendor disputes that an overpayment has been made by a state agency, the vendor shall provide the state agency written notice of the dispute not later than the 30th day after the receipt of the notice required in Subsection (a). On resolution of the dispute, if the vendor is required to return an overpayment to the state agency, the vendor shall return the agreed overpayment before the 121st calendar day after the date the parties resolve the dispute. If the agreed overpayment is not returned before the 121st calendar day, the vendor is subject to late payment interest of 10 percent per year on the amount of the agreed overpayment that has not been returned, which begins to accrue on the date the agreed overpayment becomes overdue.

(c) This section does not apply to the return of any amount overpaid by a state agency to a vendor because of an incorrect contract, invoice, or other documentation.

SECTION 1.09. Section 2155.074(c), Government Code, is amended to read as follows:

(c) A state agency shall consult with and receive approval from the comptroller in an open meeting [commission] before considering factors other than price and meeting specifications when the agency procures through competitive bidding goods or services with a value that exceeds $100 million [$100,000]. The state agency shall retain in the agency's records a copy of the meeting minutes with the final executed contract.

SECTION 1.10. Subchapter B, Chapter 2155, Government Code, is amended by adding Section 2155.090 to read as follows:

Sec. 2155.090. REPORT ON PERFORMANCE BY AGENCY FOR CERTAIN PROCUREMENTS. (a) This section applies only to a procurement for services with a value of at least $1 million but not more than $5 million.

(b) Before a purchase of services under this chapter, each state agency, including the comptroller, must:

(1) create a written report evaluating the feasibility of the agency performing the service that is the subject of the proposed purchase; and

(2) if the agency determines from the evaluation that it is not feasible for the agency to perform the service, provide an explanation of why the agency reached that determination.

(c) A report created under this section must be included in the procurement analysis for the purchase.

SECTION 1.11. (a) Subchapter B, Chapter 2155, Government Code, is amended by adding Section 2155.091 to read as follows:

Sec. 2155.091. OPERATION AND MANAGEMENT OF STATE COOPERATIVE PURCHASING PROGRAMS. (a) Notwithstanding any other law, the Department of Information Resources, the comptroller, and the five state agencies with the largest budgets on September 1, 2017, shall jointly acquire from a single provider and implement a cloud-based, procure-to-pay project to operate and manage the state's cooperative purchasing programs, including the multiple award contract schedule under Subchapter I and commodity items under Section 2157.068.

(b) The project must:

(1) include procurement technology that:

(A) covers sourcing, contract management, contract ordering, and invoice processing;

(B) makes solicitations, contracts, proposals, and payments viewable by the public; and

(C) supports the collection of transaction fees from vendors;

(2) include consulting and marketing services;

(3) include authority to charge a vendor who participates in the project a one percent transaction fee to cover the costs of the project; and

(4) notwithstanding any other law, allow political subdivisions and nonprofit organizations to make purchases through the project.

(c) The division of the governor's office having responsibility for budget and policy shall oversee the project.

(b) The Department of Information Resources, the comptroller of public accounts, and the five state agencies with the largest budgets on September 1, 2017, shall enter into a contract for a project to operate and manage state cooperative purchasing programs as provided by Section 2155.091, Government Code, as added by this Act, not later than October 31, 2017, and the project under that section shall be implemented not later than December 31, 2018.

SECTION 1.12. Subchapter D, Chapter 2156, Government Code, is amended by adding Section 2156.182 to read as follows:

Sec. 2156.182. OTHER INTERSTATE PURCHASES AND SALES. Subject to any limitation imposed by Section 2156.181, the commission may authorize one or more state governments, agencies of other states, or other governmental entities to purchase goods or services through the commission. The commission may charge a reasonable administrative fee for a purchase of goods or services under this section.

SECTION 1.13. Subchapter I, Chapter 2166, Government Code, is amended by adding Section 2166.4065 to read as follows:

Sec. 2166.4065. ASSESSMENT AND IMPLEMENTATION OF CONTINUOUS COMMISSIONING OR EXISTING BUILDING COMMISSIONING PRACTICES. (a) In this section, "facility" means a facility with at least 100,000 gross square feet.

(b) A state agency with charge and control over a facility shall have a remote or on-site assessment of the facility performed by the Energy Systems Laboratory at Texas A&M Engineering Experiment Station or another qualified provider to determine whether implementation of continuous commissioning or existing building commissioning practices would result in estimated savings of at least 10 percent in utility costs for the facility. A state agency shall supply any documents necessary to perform the assessment. The state agency shall report to the Legislative Budget Board on the results of the assessment.

(c) If the results of an assessment performed under Subsection (b) show estimated utility cost savings of at least 10 percent, the state agency shall have the Energy Systems Laboratory at Texas A&M Engineering Experiment Station or another qualified provider prepare a plan for implementation of continuous commissioning or existing building commissioning practices and monitoring of the implementation for the state agency.

(d) If appropriated funds are unavailable for this purpose, a state agency may enter into a contract for the implementation of continuous commissioning or existing building commissioning practices for a facility to be paid for from the estimated savings in utility costs resulting from the implementation of the practices.

SECTION 1.14. Subchapter B, Chapter 2251, Government Code, is amended by adding Section 2251.031 to read as follows:

Sec. 2251.031. PAYMENT TO VENDOR. (a) A state agency may not:

(1) pay an invoice from a vendor unless the invoice directly correlates to a corresponding contract with the vendor; or

(2) make a payment to a vendor more than once per month under a contract, unless the contract specifically requires more than one payment per month.

(b) A payment by a state agency to a vendor under a contract must receive:

(1) the approval and signature of two employees of the state agency; or

(2) if a contract manager, as defined by Section 2262.001, has been assigned to the contract by the state agency, the approval and signature of the contract manager and one other employee of the state agency.

(c) If a finding is made that a payment was made without the signatures required under Subsection (b), the state agency may revoke the payment at any time but remains obligated to pay the vendor all amounts due under and as required by the contract regardless of whether the state agency complied with Subsection (b).

SECTION 1.15. Subchapter C, Chapter 2261, Government Code, is amended by adding Section 2261.103 to read as follows:

Sec. 2261.103. REQUIRED CONTRACT PROVISIONS. (a) An attorney representing a state agency shall assist in the drafting of a contract to be entered into by the agency in order to include at a minimum the provisions listed in Subsection (b) and other applicable provisions recommended in the contract management guide developed under Section 2262.051.

(b) The following are required provisions in each contract to which the provisions are applicable:

(1) amendments;

(2) antitrust;

(3) applicable law and venue;

(4) applicable law and conforming amendments;

(5) assignments;

(6) confidentiality and public information act;

(7) equal opportunity;

(8) federal, state, and local law requirements;

(9) felony criminal convictions;

(10) financial interests and gifts;

(11) immigration;

(12) no conflicts; and

(13) right to audit.

SECTION 1.16. Subchapter D, Chapter 2261, Government Code, is amended by adding Section 2261.152 to read as follows:

Sec. 2261.152. DOCUMENTATION REQUIRED FOR PAYMENT. (a) A state agency may not make a payment to a vendor without a contract, invoice, or other documentation that clearly demonstrates the agency's obligation to make a payment.

(b) This section does not apply to the return of any amount overpaid by a state agency to a vendor because of an incorrect contract, invoice, or other documentation.

SECTION 1.17. Section 2261.252, Government Code, is amended by adding Subsection (e) to read as follows:

(e) A state agency may not knowingly enter into a contract for the purchase of goods or services with a vendor who is related, a vendor whose governing board or executive officers include a person who is related, a vendor who employs a person directly involved in the bid submission process who is related, or who employs or subcontracts to a person directly performing the contracted work who is related, within the third degree by consanguinity or affinity, as determined under Chapter 573, to an employee of the state agency who has decision-making authority in any matter related to the contract.

SECTION 1.18. Subchapter F, Chapter 2261, Government Code, is amended by adding Section 2261.258 to read as follows:

Sec. 2261.258. REPORTING OF CONTRACT VIOLATION. (a) A state employee or member of the public may report to the comptroller a state contracting violation. The comptroller shall investigate a report made under this subsection.

(b) A state agency may not suspend or terminate the employment of, or take other adverse personnel action against, a state employee who in good faith reports a violation to the comptroller under this section.

(c) If, as a result of an investigation under this section of a state contracting violation that occurred before March 8, 2017, savings to the state are realized, the comptroller shall verify the amount of savings and an amount equal to 30 percent of the savings may be appropriated to the comptroller only for distribution to the state employee who reported the violation that initiated the investigation.

SECTION 1.19. Section 2262.005, Government Code, is amended to read as follows:

Sec. 2262.005. CONSULTATION WITH INTERESTED PARTIES [STATE AGENCIES]. The comptroller shall consult with state agencies, vendors, and other interested parties in developing rules, forms, contract terms, guides, manuals, and criteria required under this chapter.

SECTION 1.20. Section 2262.051, Government Code, is amended by amending Subsections (a), (b), (c), (d), and (g) and adding Subsections (i) and (j) to read as follows:

(a) In consultation with the attorney general, the Department of Information Resources, the [comptroller, and the] state auditor, and state agencies that award major contracts, the comptroller [commission] shall develop and [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.

(c) The guide must provide information regarding the primary duties of a contract manager, including how to:

(1) develop and negotiate a contract;

(2) select a contractor; [and]

(3) monitor contractor and subcontractor performance under a contract; and

(4) encourage competition for goods and services purchased by this state.

(d) The guide must include model provisions for state agency contracts. The guide must:

(1) distinguish between essential provisions that a state agency must include in a contract to protect the interests of this state and recommended provisions that a state agency may include in a contract;

(2) recognize the unique contracting needs of an individual state agency or program based on the size, nature, and type of goods or services purchased by the state agency or program and provide sufficient flexibility to accommodate those needs, consistent with protecting the interests of this state;

(3) include maximum contract periods under which a new competitive solicitation is not necessary; and

(4) include the model contract management process developed under Section 2262.104 and recommendations on the appropriate use of the model.

(g) The guide must establish procedures under which a state agency is required to:

(1) solicit explanations from qualified potential respondents who did not respond to a competitive solicitation for a contract on which fewer than two qualified bids were received by the agency; and

(2) develop and implement improved procurement practices.

(i) The guide must suggest best practices related to procurement metrics used by a state agency to measure and monitor the effectiveness of the state agency's procurement methods, including the:

(1) number and value of procurements made by the state agency;

(2) number of canceled procurements by the state agency;

(3) reasons for canceled procurements;

(4) common exceptions to the state agency's terms and conditions by a respondent;

(5) number of responses per competitive solicitation; and

(6) average length of time for each phase of the state agency's procurement processes, including the length of time:

(A) between the date the state agency issues the competitive solicitation and the date the state agency begins receiving responses to the solicitation;

(B) for the evaluation of responses to a competitive solicitation;

(C) of the negotiation between the state agency and a vendor; and

(D) between the date the state agency issues the competitive solicitation and the date the state agency awards a contract to a vendor.

(j) The guide may include references to procurement maturity models and procurement readiness assessments used by other large public and private enterprises.

SECTION 1.21. Subchapter B, Chapter 2262, Government Code, is amended by adding Section 2262.056 to read as follows:

Sec. 2262.056. CONTRACT MANAGERS REQUIRED FOR MAJOR CONTRACTS. A state agency, at a minimum, shall assign a contract manager for each major contract of the agency to manage the oversight of the contract.

SECTION 1.22. Chapter 2262, Government Code, is amended by adding Subchapter E to read as follows:

SUBCHAPTER E. CONTRACT OUTSIDE TACTICAL TEAM

Sec. 2262.201. DEFINITIONS. In this subchapter:

(1) "Information resources" has the meaning assigned by Section 2054.003.

(2) "Team" means a contract outside tactical team established under authority provided by this subchapter.

Sec. 2262.202. CONTRACT OUTSIDE TACTICAL TEAM. (a) From appropriated funds, a state agency shall enter into a contract with a team for assistance in improving information resources contract management practices for contracts that have a value of at least $100 million. The team shall review and make recommendations on the solicitation documents, contract documents, scope of work, project timeline and management, documentation requirements, audit schedule and audit scope, and technical issues for the contract.

(b) A team consists of the following members selected by the state agency:

(1) outside legal counsel; or

(2) providers of professional consulting services with expertise in the subject matter of the contract.

(c) A state agency may not select a provider of professional consulting 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.

(d) A state agency shall:

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

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

SECTION 1.23. (a) The comptroller of public accounts shall conduct an interim study on the effectiveness of the process of barring vendors from participation in state contracts under Section 2155.077, Government Code. The study must include an evaluation of the risk to the state posed by vendors who receive low performance grades under Section 2262.055, Government Code, but who are not barred under Section 2155.077, Government Code.

(b) Not later than December 1, 2018, the comptroller of public accounts shall submit a report on the findings of the study to the governor, lieutenant governor, and members of the legislature.

ARTICLE 2. DELIVERY OF MEDICAID MEDICAL TRANSPORTATION PROGRAM

SERVICES

SECTION 2.01. Section 531.0057(b), Government Code, is amended to read as follows:

(b) Subject to Section 531.024141, the [The] commission may contract with any public or private transportation provider or with any regional transportation broker for the provision of public transportation services.

SECTION 2.02. Section 531.02412, Government Code, is amended by adding Subsection (b) to read as follows:

(b) As part of the quality review assessment of the Medicaid medical transportation program under Subsection (a)(3), the commission shall hire a single independent vendor with appropriate expertise to conduct surveys of:

(1) the satisfaction rates of Medicaid recipients who are receiving medical transportation program services; and

(2) the unmet transportation needs of Medicaid recipients who are not receiving medical transportation program services and who are having difficulty obtaining transportation to health care appointments.

SECTION 2.03. Sections 531.02414(c) and (d), Government Code, are amended to read as follows:

(c) Except as provided by Section 531.024142 and notwithstanding [Notwithstanding] any other law, the commission may not delegate the commission's duty to supervise the medical transportation program to any other person, including through a contract with the Texas Department of Transportation for the department to assume any of the commission's responsibilities relating to the provision of services through that program.

(d) Subject to Sections 531.024141 and [Section] 533.00257, the commission may contract with a public transportation provider, as defined by Section 461.002, Transportation Code, a private transportation provider, or a regional transportation broker for the provision of public transportation services, as defined by Section 461.002, Transportation Code, under the medical transportation program.

SECTION 2.04. Subchapter B, Chapter 531, Government Code, is amended by adding Sections 531.024141 and 531.024142 to read as follows:

Sec. 531.024141. DELIVERY OF MEDICAID MEDICAL TRANSPORTATION PROGRAM SERVICES. (a) In this section:

(1) "Managed transportation organization" has the meaning assigned by Section 533.00257.

(2) "Medical transportation program" has the meaning assigned by Section 531.02414.

(b) Notwithstanding any other law, the commission shall use the most cost-effective delivery model for the provision of medical transportation program services throughout the state. In determining the most cost-effective delivery model, the commission shall, on a regional basis, consider using:

(1) a managed transportation delivery model in which managed transportation organizations and providers operate under a capitated rate system in accordance with Section 533.00257;

(2) a fee-for-service delivery model; or

(3) other delivery models deemed appropriate by the commission.

(c) Before soliciting bids for the provision of medical transportation program services in a region through a managed transportation delivery model or another selected delivery model deemed appropriate by the commission under Subsection (b)(3), the commission must conduct an assessment to determine if the applicable model is more cost-effective than a fee-for-service delivery model. If the commission determines that the managed transportation delivery model or other selected delivery model is potentially more cost-effective than a fee-for-service delivery model, the commission shall establish a cost threshold for accepting bids for the provision of medical transportation program services in the region through a managed transportation delivery model or the other selected delivery model.

(d) A cost threshold established under Subsection (c) must be:

(1) expressed as a cost per unit, such as a cost per recipient or a cost per trip; and

(2) based on historical data for the provision of medical transportation program services through a fee-for-service delivery model in the region.

(e) If the commission receives bids at or below the cost threshold established under Subsection (c) from qualified managed transportation organizations or qualified vendors seeking to provide services under the other selected delivery model, the commission shall provide medical transportation program services in the region through a managed transportation delivery model or the other selected delivery model, as applicable, and shall award contracts to managed transportation organizations or vendors based on the price and quality of the services to be provided by the organization or vendor.

(f) If the commission is unable to solicit bids from qualified managed transportation organizations or vendors at or below the cost threshold established under Subsection (c), the commission shall provide medical transportation program services through a fee-for-service delivery model in the region.

(g) For purposes of this section, a delivery model's cost-effectiveness is based on the price and quality of the services delivered through the model, in addition to any other requirements established by applicable state and federal procurement laws.

Sec. 531.024142. OVERSIGHT OF MEDICAID MEDICAL TRANSPORTATION PROGRAM SERVICES. (a) In this section, "medical transportation program" has the meaning assigned by Section 531.02414.

(b) Regardless of the delivery model selected by the commission under Section 531.024141 for the delivery of medical transportation program services, the commission shall:

(1) contract with a person to oversee the delivery of those services through the selected delivery model; and

(2) pay for the contract from the anticipated cost savings realized under the contract.

(c) In contracting for the oversight of medical transportation program services, the commission shall provide contracting opportunities to persons who employ veterans or other persons with disabilities whose services are available under Chapter 122, Human Resources Code.

(d) The person contracted under Subsection (b) shall maintain a record of each service provided under the medical transportation program, including the cost of mileage for the service, the cost of the service, and the cost of any software licensing support used to meet the requirements of this section. A managed transportation organization or vendor through which medical transportation program services are provided shall provide to the person contracted under Subsection (b) the information necessary for that person to comply with this subsection.

(e) Not later than December 1, 2018, the commission shall evaluate the oversight of medical transportation program services under this section for not more than a 90-day period to determine:

(1) the viability of continuing to contract with a person to oversee the services;

(2) the economic return on investment from contracting with a person to oversee the services; and

(3) route efficiency and reasonableness in the provision of the services.

(f) Subsection (e) and this subsection expire September 1, 2019.

SECTION 2.05. Sections 533.00257(b) and (c), Government Code, are amended to read as follows:

(b) If [Subject to Subsection (i),] the commission provides [shall provide] medical transportation program services [on a regional basis] through a managed transportation delivery model in accordance with Section 531.024141, the commission shall use [using] managed transportation organizations and providers, as appropriate, that:

(1) operate under a capitated rate system;

(2) assume financial responsibility under a full-risk model;

(3) operate a call center;

(4) use fixed routes when available and appropriate; and

(5) agree to provide data to the commission if the commission determines that the data is required to receive federal matching funds.

(c) Subject to Section 531.024141, the [The] commission shall procure managed transportation organizations [under the medical transportation program] through a competitive bidding process [for each managed transportation region as determined by the commission].

SECTION 2.06. Sections 533.00257(i) and (j), Government Code, are repealed.

SECTION 2.07. Section 531.024141, Government Code, as added by this article, applies to a contract entered into or renewed on or after the effective date of this Act. A contract entered into or renewed before that date is governed by the law in effect immediately before the effective date of this Act, and that law is continued in effect for that purpose.

SECTION 2.08. If before implementing any provision of this article a state agency determines that a waiver or authorization from a federal agency is necessary for implementation of that provision, the agency affected by the provision shall request the waiver or authorization and may delay implementing that provision until the waiver or authorization is granted.

ARTICLE 3. TRANSITION AND EFFECTIVE DATE

SECTION 3.01. Except as otherwise provided by this Act, this Act applies only in relation 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, and to a payment made under a contract described by this section.

SECTION 3.02. This Act takes effect September 1, 2017.