Texas House Bill HB4387

Texas 2009 - 81st Regular

Caption

Relating to the development of contract terms regarding noncompliance by state contractors.

Impact

If enacted, HB4387 could significantly alter the landscape of state contracting by ensuring that state agencies have the authority to enforce compliance through specified penalties. This could include mechanisms for recovering money paid for unfulfilled services, compensation for increased operational costs due to noncompliance, and imposing penalties on a case-by-case basis dependent on the severity and nature of the noncompliance. The bill further allows for excluding contractors from future state contracting opportunities based on their compliance history, strengthening the integrity of state contracts.

Summary

House Bill 4387 aims to establish new guidelines for developing contract terms related to noncompliance by state contractors. The proposed legislation stipulates that the Texas Comptroller will be responsible for creating recommendations for penalties that can be imposed on contractors failing to adhere to state laws and contract terms. The provisions specifically address scenarios such as a contractor's failure to maintain adequate personnel or resources and cases of fraud. By formalizing this process, the bill seeks to enhance oversight and accountability within state contracting processes.

Contention

While the bill is designed to bolster compliance among state contractors, it is expected to evoke differing opinions within the legislature. Supporters argue that establishing clear compliance terms protects public funds and maintains high standards for performance among contractors. Conversely, opponents could view the bill as potentially excessive, raising concerns about the implications for smaller contractors who may struggle to meet stringent compliance measures or face disproportionate penalties. This dynamic suggests that while the bill aims at improving accountability, stakeholders will need to balance oversight with fair treatment of all contractors.