| 1 | 1 | | 81R10588 MTB-D |
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| 2 | 2 | | By: Vaught H.B. No. 4387 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the development of contract terms regarding |
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| 8 | 8 | | noncompliance by state contractors. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter A, Chapter 2262, Government Code, is |
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| 11 | 11 | | amended by adding Section 2262.005 to read as follows: |
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| 12 | 12 | | Sec. 2262.005. CONTRACT TERMS RELATING TO NONCOMPLIANCE. |
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| 13 | 13 | | (a) The comptroller shall develop recommendations for contract |
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| 14 | 14 | | terms regarding penalties for contractors that do not comply with a |
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| 15 | 15 | | state contract, including for: |
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| 16 | 16 | | (1) failure by the contractor to comply with state |
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| 17 | 17 | | law; |
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| 18 | 18 | | (2) failure by the contractor to maintain adequate |
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| 19 | 19 | | personnel or resources; and |
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| 20 | 20 | | (3) fraud by the contractor. |
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| 21 | 21 | | (b) The recommendations under Subsection (a) must provide |
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| 22 | 22 | | for: |
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| 23 | 23 | | (1) the recovery of money paid by a state agency for |
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| 24 | 24 | | services not provided by the contractor under the contract or paid |
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| 25 | 25 | | to another contractor to perform those services; |
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| 26 | 26 | | (2) the recovery of any increased operational costs |
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| 27 | 27 | | incurred by a state agency as a result of a contractor's |
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| 28 | 28 | | noncompliance; |
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| 29 | 29 | | (3) the imposition of penalties on a sliding scale |
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| 30 | 30 | | based on the contract amount, the type of noncompliance, and |
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| 31 | 31 | | whether damages are recoverable for the noncompliance under a |
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| 32 | 32 | | contract term developed under Subdivision (1) or (2); and |
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| 33 | 33 | | (4) excluding a contractor from the solicitation |
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| 34 | 34 | | process for state contracts without regard to whether the |
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| 35 | 35 | | contractor has been barred under Section 2155.077 from |
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| 36 | 36 | | participating in contracts subject to Subtitle D. |
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| 37 | 37 | | (c) A state agency shall include applicable recommended |
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| 38 | 38 | | terms developed under Subsection (a) in a contract entered into by |
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| 39 | 39 | | the agency. |
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| 40 | 40 | | SECTION 2. (a) As soon as practicable, and not later than |
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| 41 | 41 | | May 1, 2010, the comptroller of public accounts shall develop the |
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| 42 | 42 | | terms required by Section 2262.005, Government Code, as added by |
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| 43 | 43 | | this Act. |
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| 44 | 44 | | (b) A state agency is not required to comply with Section |
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| 45 | 45 | | 2262.005, Government Code, as added by this Act, until September 1, |
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| 46 | 46 | | 2010. |
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| 47 | 47 | | SECTION 3. This Act takes effect September 1, 2009. |
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