Honorable John Zerwas, Chair, House Committee on Appropriations
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
HB579 by Turner (Relating to notice of certain state agency contract cost that exceeds the amount of the contract.), As Introduced
No significant fiscal implication to the State is anticipated.
The bill would amend Chapter 2261 of the Government Code, regarding state contracting standards and oversight.
The bill would require a state agency to provide notice to the Governor, Lieutenant Governor, Speaker of the House of Representatives, and each member of the Legislature, in accordance with procedures established by the Comptroller of Public Accounts, for each of the agency's contracts to purchase services from a vendor for which the actual cost of the service exceeds the amount contracted for the service by $1 million or more.
The bill would require a state agency to provide the notice not later than the 30th day after a cost exceeds the contract amount by $1 million. The bill would require the notice to include the amount of the excessive cost, the reason for the excessive cost, any opportunity the agency had to lessen the excessive cost or purchase the service from another vendor after the excessive cost was disclosed, and any other information the Comptroller determines relevant.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
300 Trusteed Programs Within the Office of the Governor, 304 Comptroller of Public Accounts