86R27648 TSR-F
 
  By: Nelson, et al. S.B. No. 65
 
  (Geren)
 
  Substitute the following for S.B. No. 65:  No.
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to oversight of and requirements applicable to state
  agency contracting and procurement.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 441.1855, Government Code, is amended to
  read as follows:
         Sec. 441.1855.  RETENTION OF CONTRACT AND RELATED DOCUMENTS
  BY STATE AGENCIES. (a)  Notwithstanding Section 441.185 or
  441.187, a state agency:
               (1)  shall retain in its records each contract entered
  into by the state agency and all contract solicitation documents
  related to the contract; and
               (2)  may destroy the contract and documents only after
  the seventh anniversary of the date:
                     (A)  the contract is completed or expires; or
                     (B)  all issues that arise from any litigation,
  claim, negotiation, audit, open records request, administrative
  review, or other action involving the contract or documents are
  resolved.
         (b)  A contract solicitation document that is an electronic
  document must be retained under Subsection (a) in the document's
  electronic form. A state agency may print and retain the document
  in paper form only if the agency provides for the preservation,
  examination, and use of the electronic form of the document in
  accordance with Subsection (a), including any formatting or
  formulas that are part of the electronic format of the document.
         (c)  In this section:
               (1)  "Contract solicitation document" includes any
  document, whether in paper form or electronic form, that is used by
  a state agency to evaluate responses to a competitive solicitation
  for a contract issued by the agency.
               (2)  "Electronic document" means:
                     (A)  information that is created, generated,
  sent, communicated, received, or stored by electronic means; or
                     (B)  the output of a word processing, spreadsheet,
  presentation, or business productivity application.
         SECTION 2.  Section 2054.003(10), Government Code, is
  amended to read as follows:
               (10)  "Major information resources project" means:
                     (A)  any information resources technology project
  identified in a state agency's biennial operating plan whose
  development costs exceed $5 [$1] million and that:
                           (i)  requires one year or longer to reach
  operations status;
                           (ii)  involves more than one state agency;
  or
                           (iii)  substantially alters work methods of
  state agency personnel or the delivery of services to clients; and
                     (B)  any information resources technology project
  designated by the legislature in the General Appropriations Act as
  a major information resources project.
         SECTION 3.  Section 2054.055(b), Government Code, is amended
  to read as follows:
         (b)  The report must:
               (1)  assess the progress made toward meeting the goals
  and objectives of the state strategic plan for information
  resources management;
               (2)  describe major accomplishments of the state or a
  specific state agency in information resources management;
               (3)  describe major problems in information resources
  management confronting the state or a specific state agency;
               (4)  provide a summary of the total expenditures for
  information resources and information resources technologies by
  the state;
               (5)  make recommendations for improving the
  effectiveness and cost-efficiency of the state's use of information
  resources;
               (6)  describe the status, progress, benefits, and
  efficiency gains of the state electronic Internet portal project,
  including any significant issues regarding contract performance;
               (7)  provide a financial summary of the state
  electronic Internet portal project, including project costs and
  revenues;
               (8)  provide a summary of the amount and use of
  Internet-based training conducted by each state agency and
  institution of higher education;
               (9)  provide a summary of agency and statewide results
  in providing access to electronic and information resources to
  individuals with disabilities as required by Subchapter M;
               (10)  assess the progress made toward accomplishing the
  goals of the plan for a state telecommunications network and
  developing a system of telecommunications services as provided by
  Subchapter H; and
               (11)  identify proposed major information resources
  projects for the next state fiscal biennium, including project
  costs through stages of the project and across state fiscal years
  from project initiation to implementation[;
               [(12)     examine major information resources projects
  completed in the previous state fiscal biennium to determine the
  performance of the implementing state agency, cost and value
  effectiveness, timeliness, and other performance criteria
  necessary to assess the quality and value of the investment; and
               [(13)     examine major information resources projects
  after the second anniversary of the project's completion to
  determine progress toward meeting performance goals and operating
  budget savings].
         SECTION 4.  Section 2054.1181, Government Code, is amended
  by amending Subsection (b) and adding Subsection (j) to read as
  follows:
         (b)  In performing its duties under this section, the
  department shall:
               (1)  develop policies for the additional oversight of
  projects required by Subsection (a);
               (2)  implement project management standards;
               (3)  use effective risk management strategies;
               (4)  establish standards that promote the ability of
  information resources systems to operate with each other; and
               (5)  use industry best practices and process
  reengineering when feasible.
         (j)  A state agency may not amend a contract subject to
  review under Section 2054.158(b)(4) if the contract is at least 10
  percent over budget or the associated major information resources
  project is at least 10 percent behind schedule unless the agency:
               (1)  conducts a cost-benefit analysis with respect to
  canceling or continuing the project; and
               (2)  submits the analysis described by Subdivision (1)
  to the quality assurance team.
         SECTION 5.  Section 2054.158, Government Code, is amended by
  amending Subsection (b) and adding Subsections (d) and (e) to read
  as follows:
         (b)  The quality assurance team shall:
               (1)  develop and recommend policies and procedures to
  improve the development, implementation, and return on investment
  for state agency information resources technology projects;
               (2)  except as provided by Subsection (e), review a
  state agency's business case prepared for a major information
  resources project under Section 2054.303 and make recommendations
  [develop and recommend procedures] to improve the implementation of
  the project [state agency information resources technology
  projects by including considerations for best value and return on
  investment]; [and]
               (3)  provide annual training for state agency
  procurement and contract management staff on best practices and
  methodologies for information technology contracts;
               (4)  review and provide recommendations on the final
  negotiated terms of a contract for the development or
  implementation of a major information resources project with a
  value of at least $10 million; and
               (5)  provide a report to the governor, lieutenant
  governor, speaker of the house of representatives, and presiding
  officer of the standing committee of each house of the legislature
  with primary jurisdiction over appropriations by December 1 of each
  even-numbered year that includes:
                     (A)  the performance indicator report required by
  Section 2054.159(a);
                     (B)  a summary of any major issues identified in
  state agency reports submitted under Section 2054.159(f);
                     (C)  an appendix containing any justifications
  submitted to the quality assurance team under Section 2054.160(d);
  and
                     (D)  any additional information considered
  appropriate by the quality assurance team.
         (d)  The comptroller by rule shall develop guidelines for the
  additional or reduced monitoring of major information resources
  projects and associated contracts of state agencies during the
  periods described by Sections 2261.258(c)(2)(A), (B), and (C).
         (e)  The quality assurance team may waive the review
  authorized by Subsection (b)(2) for any project for which the team
  determines that a waiver of the review is appropriate because of the
  project's associated risk.
         SECTION 6.  Section 2054.159, Government Code, is amended by
  adding Subsections (f) and (g) to read as follows:
         (f)  For each major information resources project, a state
  agency shall provide the quality assurance team any verification
  and validation report or quality assurance report related to the
  project not later than the 10th day after the date the agency
  receives a request for the report.
         (g)  The quality assurance team may request any information
  necessary to determine a major information resources project's
  potential risk.
         SECTION 7.  Subchapter G, Chapter 2054, Government Code, is
  amended by adding Section 2054.160 to read as follows:
         Sec. 2054.160.  REVIEW OF CONTRACT FOR MAJOR INFORMATION
  RESOURCES PROJECT. (a)  For each contract for the development or
  implementation of a major information resources project with a
  value of at least $10 million, a state agency shall:
               (1)  submit the proposed terms of the contract to the
  quality assurance team before the start of negotiations; and
               (2)  submit the final negotiated unsigned contract to
  the quality assurance team for review under Section 2054.158(b)(4).
         (b)  After the quality assurance team makes a recommendation
  under Section 2054.158(b)(4), a state agency shall:
               (1)  comply with the recommendation; or
               (2)  submit to the quality assurance team a written
  explanation regarding why the recommendation is not applicable to
  the contract under review.
         (c)  Before amending a contract related to a major
  information resources project, a state agency must notify the
  governor, lieutenant governor, speaker of the house of
  representatives, presiding officer of the standing committee of
  each house of the legislature with primary jurisdiction over
  appropriations, and quality assurance team if:
               (1)  the total value of the amended contract exceeds or
  will exceed the initial contract value by 10 percent or more; or
               (2)  the amendment requires the contractor to provide
  consultative services, technical expertise, or other assistance in
  defining project scope or deliverables.
         (d)  A state agency shall provide to the quality assurance
  team a justification for an amendment subject to Subsection (c).
         SECTION 8.  Section 2054.301, Government Code, is amended to
  read as follows:
         Sec. 2054.301.  APPLICABILITY[; DEFINITION]. [(a)]  This
  subchapter applies only to[:
               [(1)]  a major information resources project[; and
               [(2)  a major contract].
         [(b)     In this subchapter, "major contract" means a major
  contract as defined by Section 2262.001(4) under which a vendor
  will perform or manage an outsourced function or process.]
         SECTION 9.  Section 2054.302(b), Government Code, is amended
  to read as follows:
         (b)  The department[, in consultation with the Legislative
  Budget Board and state auditor's office,] shall develop and provide
  guidelines and forms for the documents required by this subchapter.
         SECTION 10.  Section 2054.303, Government Code, is amended
  by amending Subsections (a) and (c) and adding Subsection (d) to
  read as follows:
         (a)  For each proposed major information resources project
  [or major contract], a state agency must prepare:
               (1)  a business case providing the initial
  justification for the project [or contract, including the
  anticipated return on investment in terms of cost savings and
  efficiency for the project or contract]; and
               (2)  if the state agency has been assigned the rating
  under Section 2261.258(a)(1):
                     (A)  a statewide impact analysis of the project's
  [or contract's] effect on the state's common information resources
  infrastructure[, including the possibility of reusing code or other
  resources]; and
                     (B) [(3)  in consultation with the department,] a
  technical architectural assessment of the project, if requested by
  the quality assurance team [or contract].
         (c)  The department shall use the analysis to ensure that the
  proposed project [or major contract] does not unnecessarily
  duplicate existing statewide information resources technology.
         (d)  After the quality assurance team makes a recommendation
  relating to a business case under Section 2054.158(b)(2), a state
  agency shall:
               (1)  comply with the recommendation; or
               (2)  submit to the quality assurance team a written
  explanation regarding why the recommendation is not applicable to
  the project under review.
         SECTION 11.  Sections 2054.304(a) and (b), Government Code,
  are amended to read as follows:
         (a)  A state agency shall develop a project plan for each
  major information resources project [or major contract].
         (b)  The [Except as provided by Subsection (c), the] state
  agency must file the project plan with the quality assurance team
  and the department before the agency[:
               [(1)]  spends more than 10 percent of allocated funds
  for the project [or major contract; or
               [(2)     first issues a vendor solicitation for the
  project or contract].
         SECTION 12.  Section 2054.305, Government Code, is amended
  to read as follows:
         Sec. 2054.305.  PROCUREMENT PLAN AND METHOD FOR MONITORING
  CONTRACTS. Before issuing a [vendor] solicitation for a [project
  or major] contract subject to review under Section 2054.158(b)(4),
  the state agency must develop, consistent with any acquisition plan
  provided in the guide developed under Section 2262.051 [department
  guidelines]:
               (1)  a procurement plan with anticipated service levels
  and performance standards for each contractor [vendor]; and
               (2)  a method to monitor changes to the scope of each
  contract.
         SECTION 13.  Section 2054.307(a), Government Code, is
  amended to read as follows:
         (a)  A state agency's executive director, or the executive
  director's designee, [information resources manager, designated
  project manager, and the agency employee in charge of information
  security for the agency] must approve [and sign]:
               (1)  each document required by this subchapter; and
               (2)  if the department requires the approval [and
  signatures], any other document related to this subchapter.
         SECTION 14.  Section 2102.005, Government Code, is amended
  to read as follows:
         Sec. 2102.005.  INTERNAL AUDITING REQUIRED. (a)  A state
  agency shall conduct a program of internal auditing that includes:
               (1)  an annual audit plan that is prepared using risk
  assessment techniques and that identifies the individual audits to
  be conducted during the year; and
               (2)  periodic audits of the agency's major systems and
  controls, including:
                     (A)  accounting systems and controls;
                     (B)  administrative systems and controls; and
                     (C)  electronic data processing systems and
  controls.
         (b)  In conducting the internal auditing program under
  Subsection (a), a state agency shall consider methods for ensuring
  compliance with contract processes and controls and for monitoring
  agency contracts.
         SECTION 15.  Section 2155.089, Government Code, is amended
  to read as follows:
         Sec. 2155.089.  REPORTING VENDOR PERFORMANCE. (a)  After a
  contract is completed or otherwise terminated, each state agency
  shall review the vendor's performance under the contract. If the
  value of the contract exceeds $5 million, the state agency shall
  review the vendor's performance:
               (1)  at least once each year during the term of the
  contract; and
               (2)  at each key milestone identified for the contract.
         (b)  The state agency shall report to the comptroller, using
  the tracking system established by Section 2262.055, on the results
  of each [the] review conducted under Subsection (a) regarding a
  vendor's performance under a contract.
         (b-1)  A state agency may not extend a vendor's contract
  until after the agency reports the results of each review of the
  vendor conducted under Subsection (a)(1) or (2), as applicable, in
  the manner prescribed by Subsection (b).
         (c)  This section does not apply to:
               (1)  an enrollment contract described by 1 T.A.C.
  Section 391.183 as that section existed on September 1, 2015; [or]
               (2)  a contract of the Employees Retirement System of
  Texas [or the Teacher Retirement System of Texas] except for a
  contract with a nongovernmental entity for claims administration of
  a group health benefit plan under Subtitle H, Title 8, Insurance
  Code; or
               (3)  a contract entered into by:
                     (A)  the comptroller under Section 2155.061; or
                     (B)  the Department of Information Resources
  under Section 2157.068.
         SECTION 16.  Section 2155.144, Government Code, is amended
  by adding Subsection (b-2) to read as follows:
         (b-2)  The Health and Human Services Commission is delegated
  the authority to procure goods and services related to a contract
  for:
               (1)  a project to construct or expand a state hospital
  operated by a health and human services agency or a state supported
  living center as defined by Section 531.002, Health and Safety
  Code; or
               (2)  a deferred maintenance project for a health
  facility described by Subdivision (1).
         SECTION 17.  Section 2254.024(a), Government Code, is
  amended to read as follows:
         (a)  This subchapter does not apply to or discourage the use
  of consulting services provided by:
               (1)  practitioners of professional services described
  in Subchapter A;
               (2)  private legal counsel;
               (3)  investment counselors;
               (4)  actuaries;
               (5)  medical or dental services providers; or
               (6)  other consultants whose services are determined by
  the governing board of a retirement system trust fund to be
  necessary for the governing board to perform its constitutional
  fiduciary duties[, except that the governing board shall comply
  with Section 2254.030].
         SECTION 18.  The heading to Section 2254.029, Government
  Code, is amended to read as follows:
         Sec. 2254.029.  PUBLICATION IN STATE BUSINESS DAILY [TEXAS
  REGISTER] BEFORE ENTERING INTO MAJOR CONSULTING SERVICES CONTRACT.
         SECTION 19.  Section 2254.029(a), Government Code, is
  amended to read as follows:
         (a)  Not later than the 30th day before the date it enters
  into a major consulting services contract, a state agency must post
  in the state business daily under Section 2155.083 [shall file with
  the secretary of state for publication in the Texas Register]:
               (1)  an invitation for consultants to provide offers of
  consulting services;
               (2)  the name of the individual who should be contacted
  by a consultant that intends to make an offer;
               (3)  the closing date for the receipt of offers; and
               (4)  the procedure by which the state agency will award
  the contract.
         SECTION 20.  Section 2254.031(a), Government Code, is
  amended to read as follows:
         (a)  A state agency that intends to renew, amend, or extend a
  major consulting services contract shall[:
               [(1)     file with the secretary of state for publication
  in the Texas Register the information required by Section 2254.030
  not later than the 20th day after the date the contract is renewed
  if the renewal contract is not a major consulting services
  contract; or
               [(2)]  comply with Sections 2254.028 and 2254.029 if
  the contract after the renewal, amendment, or extension [contract]
  is a major consulting services contract.
         SECTION 21.  Subchapter B, Chapter 2261, Government Code, is
  amended by adding Sections 2261.0525 and 2261.054 to read as
  follows:
         Sec. 2261.0525.  CERTIFICATION OF VENDOR ASSESSMENT
  PROCESS. (a)  Before a state agency may award a contract to a
  vendor, the agency's procurement director must review the process
  and all documents used by the agency to assess each vendor who
  responded to the solicitation. The procurement director must
  certify in writing that:
               (1)  the agency assessed each vendor's response to the
  solicitation using the evaluation criteria published in the
  solicitation or, if applicable, the written evaluation criteria
  established by the agency; and
               (2)  the final calculation of scoring of responses was
  accurate.
         (b)  A state agency shall justify in writing any change in
  the scoring of a vendor that occurs following the initial
  assessment and scoring of responses. The written justification
  must be reviewed by the agency's procurement director. The
  procurement director shall certify in writing that the change in
  scoring was appropriate.
         (c)  A state agency's procurement director may delegate to a
  person whose position in the agency's procurement office is at
  least equal to the position of contract manager the certification
  authority under this section if the agency has met the conditions
  prescribed by the comptroller under Section 2262.053(h).
         (d)  A written certification or justification required by
  this section must be placed in the contract file.
         Sec. 2261.054.  STATEMENT REGARDING VENDOR SELECTION
  REQUIRED FOR CERTAIN CONTRACT AWARDS. If a state agency awards a
  contract to a vendor who did not receive the highest score in an
  assessment process certified under Section 2261.0525, the agency
  shall state in writing in the contract file the reasons for making
  the award.
         SECTION 22.  The heading to Subchapter E, Chapter 2261,
  Government Code, is amended to read as follows:
  SUBCHAPTER E.  CONTRACTOR OVERSIGHT AND LIABILITY
         SECTION 23.  Subchapter E, Chapter 2261, Government Code, is
  amended by adding Section 2261.204 to read as follows:
         Sec. 2261.204.  LIABILITY PROVISIONS. (a)  Each state
  agency shall include in the contract file for each of its contracts
  for goods or services subject to this chapter a written explanation
  of the agency's decision to include or not include in the contract a
  provision for liquidated damages or another form of liability for
  damages caused by the contractor.
         (b)  A contract file must also include, if applicable, a
  written justification for any provision in the contract that limits
  the liability of a contractor for damages.
         (c)  If an extension of a state agency's contract described
  by Subsection (a) modifies a provision for liquidated damages or
  another provision relating to a contractor's liability for damages,
  the agency must amend the written explanation or justification
  required by this section to include a justification for the
  modification.
         SECTION 24.  Section 2261.251(b), Government Code, is
  amended to read as follows:
         (b)  This subchapter does not apply to a contract of the
  Employees Retirement System of Texas [or the Teacher Retirement
  System of Texas] except for a contract with a nongovernmental
  entity for claims administration of a group health benefit plan
  under Subtitle H, Title 8, Insurance Code.
         SECTION 25.  Section 2261.254(d), Government Code, is
  amended to read as follows:
         (d)  The governing body or governing official of a state
  agency, as appropriate, may delegate to the executive director or a
  deputy executive director of the agency the approval and signature
  authority under Subsection (c).
         SECTION 26.  Subchapter F, Chapter 2261, Government Code, is
  amended by adding Sections 2261.258 and 2261.259 to read as
  follows:
         Sec. 2261.258.  MONITORING ASSESSMENT BY STATE AUDITOR.
  (a)  Before July 1 of each year, the state auditor shall assign one
  of the following ratings to each of the 25 largest state agencies in
  that state fiscal year as determined by the Legislative Budget
  Board:
               (1)  additional monitoring warranted;
               (2)  no additional monitoring warranted; or
               (3)  reduced monitoring warranted.
         (b)  In assigning a rating to a state agency as required
  under Subsection (a), the state auditor shall consider the
  following information, as applicable:
               (1)  results of an audit of:
                     (A)  the agency conducted by the state auditor
  under Chapter 321; or
                     (B)  the agency's contracts and contract
  processes and controls conducted by the agency's internal auditors
  or by the state auditor;
               (2)  results of a purchase audit conducted by the
  comptroller under Section 2155.325;
               (3)  information reported by the quality assurance team
  established under Section 2054.158 relating to the agency's major
  information resources projects;
               (4)  information from the Contract Advisory Team
  established under Subchapter C, Chapter 2262, relating to reviews
  of the agency's contracts and contract solicitation documents;
               (5)  information relating to agency findings from a
  review of the agency conducted by:
                     (A)  the Legislative Budget Board; and
                     (B)  the Sunset Advisory Commission under Chapter
  325 (Texas Sunset Act);
               (6)  the agency's self-reported improvements to the
  agency's contracting processes; and
               (7)  any additional internal analysis provided by the
  agency.
         (c)  On or before September 1 of each year, the state auditor
  shall submit to the comptroller and the Department of Information
  Resources a report that:
               (1)  lists each state agency that was assigned a rating
  under Subsection (a); and
               (2)  for a state agency that was assigned a rating under
  Subsection (a)(1) or (3), specifies that additional or reduced
  monitoring, as applicable, is required during one or more of the
  following periods:
                     (A)  contract solicitation development;
                     (B)  contract formation and award; or
                     (C)  contract management and termination.
         (d)  In consultation with the Contract Advisory Team
  established under Subchapter C, Chapter 2262, the comptroller by
  rule shall develop guidelines for the additional or reduced
  monitoring of a state agency during the periods described by
  Subsections (c)(2)(A), (B), and (C) for a contract that falls under
  the monetary thresholds for review or monitoring by the Contract
  Advisory Team.
         (e)  In consultation with the quality assurance team
  established under Section 2054.158, the Department of Information
  Resources by rule shall develop guidelines for the additional or
  reduced monitoring of a state agency during the periods described
  by Subsections (c)(2)(A), (B), and (C) for a contract that falls
  under the monetary thresholds for review or monitoring by the
  quality assurance team.
         (f)  The state auditor may request any information necessary
  from a state agency, the Contract Advisory Team, or the quality
  assurance team to comply with the requirements of this section, and
  the agency or team, as applicable, shall provide the requested
  information.
         (g)  The state auditor, comptroller, and Department of
  Information Resources shall share information as necessary to
  fulfill their respective duties under this section.
         (h)  The state auditor's duties under this section must be
  included in the audit plan and approved by the legislative audit
  committee under Section 321.013.
         Sec. 2261.259.  ELECTRONIC COMPLIANCE SUBMISSIONS. A state
  agency that uses the centralized accounting and payroll system
  authorized under Sections 2101.035 and 2101.036 or an alternative
  computer software system for compliance requirements related to the
  procurement of goods or services may electronically submit to the
  comptroller using that computer software system a written
  justification, verification, notification, or acknowledgement
  required under this chapter or Subchapter B, Chapter 2155.
         SECTION 27.  Subchapter B, Chapter 2262, Government Code, is
  amended by adding Sections 2262.053 and 2262.056 to read as
  follows:
         Sec. 2262.053.  CONTRACT FILE CHECKLIST; CERTIFICATION OF
  AGENCY COMPLIANCE. (a)  Each state agency shall include in the
  contract file for each of its contracts a checklist to ensure the
  agency's compliance with state laws and rules relating to the
  acquisition of goods and services by the agency.
         (b)  The comptroller shall develop and periodically update a
  model contract file checklist and make the checklist available for
  use by state agencies.  The comptroller shall periodically update
  the checklist.
         (c)  The comptroller may adopt rules necessary to develop or
  update the model contract file checklist.
         (d)  The model contract file checklist must address each
  stage of the procurement process and must include, at a minimum, a
  description of:
               (1)  the documents that are required to be maintained
  during each stage of the procurement process in accordance with
  applicable state laws and comptroller rules; and
               (2)  the procedures and documents that are required to
  be completed during the following stages of the procurement
  process:
                     (A)  contract solicitation development;
                     (B)  contract formation and award; and
                     (C)  contract management.
         (e)  A state agency may develop its own contract file
  checklist based on the procurement and contracting needs of that
  agency, provided that the checklist developed by the agency is
  consistent with the comptroller's model contract file checklist and
  meets any requirements established by comptroller rule under
  Subsection (c).
         (f)  Before a state agency awards a contract to a vendor for
  the purchase of goods or services, the agency's contract manager or
  procurement director must:
               (1)  review the contents of the contract file for the
  contract, including the checklist, to ensure that all documents
  required by state law or applicable agency rules are complete and
  present in the file; and
               (2)  certify in a written document to be included in the
  contract file that the review required under Subdivision (1) was
  completed.
         (g)  A state agency's contract manager or procurement
  director may delegate to a person in the agency's procurement
  office the certification authority under this section.
         (h)  The comptroller by rule shall prescribe the conditions
  under which a state agency's contract manager or procurement
  director:
               (1)  must make the certification required by Subsection
  (f); and
               (2)  may delegate the certification authority under
  this section.
         Sec. 2262.056.  APPROVAL REQUIRED FOR ASSIGNMENT OF SERVICES
  CONTRACTS. (a)  In this section:
               (1)  "Major information resources project" has the
  meaning assigned by Section 2054.003.
               (2)  "Sensitive personal information" has the meaning
  assigned by Section 521.002, Business & Commerce Code.
         (b)  A vendor awarded a services contract by a state agency
  may not assign the vendor's rights under the contract to a third
  party unless the assignment is approved by the state agency.
         (c)  At least 14 days before a state agency rejects or
  approves a vendor's proposed assignment under Subsection (b), the
  state agency shall notify the Legislative Budget Board of the
  proposed assignment if the contract subject to the assignment:
               (1)  is for a major information resources project; or
               (2)  involves storing, receiving, processing,
  transmitting, disposing of, or accessing sensitive personal
  information in a foreign country.
         SECTION 28.  The following provisions of the Government Code
  are repealed:
               (1)  Sections 825.103(d) and (g);
               (2)  Section 2054.1181(f);
               (3)  Section 2054.1184;
               (4)  Sections 2054.159(c) and (d);
               (5)  Section 2054.304(c);
               (6)  Section 2254.030;
               (7)  Section 2254.031(c); and
               (8)  Section 2254.033(b).
         SECTION 29.  As soon as practicable after the effective date
  of this Act, the comptroller of public accounts, the Department of
  Information Resources, and each affected state agency as necessary,
  shall adopt the rules, processes, and procedures and take the
  actions necessary to implement the changes in law made by this Act.
         SECTION 30.  (a)  Except as provided by Subsections (b) and
  (c) of this section, this Act applies only in relation to a
  contract:
               (1)  for which a state agency first advertises or
  otherwise solicits bids, proposals, offers, or qualifications on or
  after the effective date of this Act;
               (2)  that is extended or modified on or after the
  effective date of this Act; or
               (3)  for which a change order is submitted on or after
  the effective date of this Act.
         (b)  Section 2262.056, Government Code, as added by this Act,
  applies only to a contract entered into or renewed on or after the
  effective date of this Act.
         (c)  The changes in law made by this Act that apply to a major
  consulting services contract apply only to a major consulting
  services contract entered into or amended, modified, renewed, or
  extended on or after the effective date of this Act.  A major
  consulting services contract entered into or amended, modified,
  renewed, or extended before the effective date of this Act is
  governed by the law in effect on the date the contract was entered
  into or amended, modified, renewed, or extended, and the former law
  is continued in effect for that purpose.
         SECTION 31.  Notwithstanding Section 2261.258, Government
  Code, as added by this Act, the first report required under that
  section is due on or before September 1, 2020.
         SECTION 32.  This Act takes effect September 1, 2019.