81R10588 MTB-D
By: Vaught H.B. No. 4387
A BILL TO BE ENTITLED
AN ACT
relating to the development of contract terms regarding
noncompliance by state contractors.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 2262, Government Code, is
amended by adding Section 2262.005 to read as follows:
Sec. 2262.005. CONTRACT TERMS RELATING TO NONCOMPLIANCE.
(a) The comptroller shall develop recommendations for contract
terms regarding penalties for contractors that do not comply with a
state contract, including for:
(1) failure by the contractor to comply with state
law;
(2) failure by the contractor to maintain adequate
personnel or resources; and
(3) fraud by the contractor.
(b) The recommendations under Subsection (a) must provide
for:
(1) the recovery of money paid by a state agency for
services not provided by the contractor under the contract or paid
to another contractor to perform those services;
(2) the recovery of any increased operational costs
incurred by a state agency as a result of a contractor's
noncompliance;
(3) the imposition of penalties on a sliding scale
based on the contract amount, the type of noncompliance, and
whether damages are recoverable for the noncompliance under a
contract term developed under Subdivision (1) or (2); and
(4) excluding a contractor from the solicitation
process for state contracts without regard to whether the
contractor has been barred under Section 2155.077 from
participating in contracts subject to Subtitle D.
(c) A state agency shall include applicable recommended
terms developed under Subsection (a) in a contract entered into by
the agency.
SECTION 2. (a) As soon as practicable, and not later than
May 1, 2010, the comptroller of public accounts shall develop the
terms required by Section 2262.005, Government Code, as added by
this Act.
(b) A state agency is not required to comply with Section
2262.005, Government Code, as added by this Act, until September 1,
2010.
SECTION 3. This Act takes effect September 1, 2009.