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A BILL TO BE ENTITLED
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AN ACT
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relating to notice by a state agency regarding certain contracts |
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for which the actual cost exceeds the contracted amount. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter F, Chapter 2261, Government Code, is |
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amended by adding Section 2261.2555 to read as follows: |
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Sec. 2261.2555. NOTICE OF CERTAIN COST THAT EXCEEDS |
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CONTRACT AMOUNT; ENFORCEMENT. (a) For each state agency contract |
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to purchase services from a vendor for which the actual cost of the |
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services exceeds the amount contracted for the services by $1 |
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million or more, the state agency in accordance with procedures |
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established by the Legislative Budget Board shall provide notice of |
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the excessive cost to: |
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(1) the governor; |
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(2) the lieutenant governor; |
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(3) the speaker of the house of representatives; |
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(4) each member of the legislature; |
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(5) the board; and |
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(6) the state auditor's office. |
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(b) The state agency must provide the notice required under |
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Subsection (a) not later than the 30th day after the date the actual |
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cost exceeds the contract amount by $1 million. The notice must |
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include: |
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(1) the amount of the excessive cost; |
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(2) the reason for the excessive cost; |
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(3) any opportunity the state agency had to lessen the |
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excessive cost or to purchase the services from another vendor |
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after the excessive cost was disclosed; and |
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(4) any other information the Legislative Budget Board |
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determines relevant. |
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(c) The Legislative Budget Board may assess an enforcement |
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mechanism against a state agency that the board determines has |
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failed to provide notice as required by this section. The |
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enforcement mechanism must be assessed in accordance with the |
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schedule developed under Subsection (d). |
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(d) The Legislative Budget Board may establish a schedule of |
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enforcement mechanisms that may be assessed against a state agency |
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for a violation described by Subsection (c). The enforcement |
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mechanisms may include: |
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(1) enhanced monitoring of the state agency's |
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contracts by board personnel; |
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(2) required consultation with the Contract Advisory |
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Team established under Section 2262.101 or the quality assurance |
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team established under Section 2054.158 before issuance of a |
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contract by the state agency; |
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(3) targeted audits by the state auditor's office at |
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the request of the board; and |
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(4) recommended cancellation of a contract to purchase |
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services for which the actual cost of the services is determined to |
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exceed the amount contracted for the services by $1 million or more. |
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(e) The Legislative Budget Board's director may recommend |
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to the board an enforcement mechanism to be assessed against a state |
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agency for a violation described by Subsection (c). The board may |
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increase the severity of an enforcement mechanism assessed against |
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a state agency for repeated violations. |
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(f) The Legislative Budget Board may dismiss an enforcement |
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mechanism assessed against a state agency by the board for a |
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violation described by Subsection (c) on successful implementation |
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of corrective action approved by the board. |
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SECTION 2. The changes in law made by this Act apply only to |
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a contract entered into on or after the effective date of this Act. |
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A contract entered into before that date is governed by the law in |
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effect immediately before the effective date of this Act, and the |
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former law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2017. |