By: Parker H.B. No. 4682 A BILL TO BE ENTITLED AN ACT relating to the procurement of contracts in the state BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. relating to Section 2262.002(b), Government Code, is amended to read as follows: (b) Except as otherwise provided by this chapter, this [This] chapter does not apply to contracts of the Texas Department of Transportation that: (1) relate to highway construction or highway engineering; or (2) are subject to Section 201.112, Transportation Code. SECTION 2. Section 2262.101, Government Code, is amended to read as follows: Sec. 2262.101. CREATION; DUTIES. The Contract Advisory Team is created to assist state agencies in improving contract management practices by: (1) [reviewing the solicitation of major contracts by state agencies; [(2)] reviewing any findings or recommendations made by the state auditor, including those made under Section 2262.052(b), regarding a state agency's compliance with the contract management guide; and (2) [(3)] providing recommendations to the commission regarding: (A) the development of the contract management guide; and (B) the training under Section 2262.053. SECTION 3. Chapter 2262, Government Code, is amended by adding Subchapter D to read as follows: SUBCHAPTER D. COLLABORATION WITH PRIVATE PROCUREMENT SPECIALIST Sec. 2262.151. DEFINITIONS. In this subchapter: (1) "High-cost contract" means a state agency contract that has a value of at least $10 million; (2) "Major information resources project" has the meaning assigned by Section 2054.003(10). (3) "Solicitation" means a solicitation for bids, offers, qualifications, proposals, or similar expressions of interest for a high-cost contract. Sec. 2262.152. USE OF PRIVATE PROCUREMENT SPECIALIST. The comptroller of public accounts shall establish rules for the purchasing and procurement of contracts pursuant to the requirements herein: (1) Except as otherwise provided in 2262.153(c), all high-cost contracts shall require the collaboration of a private procurement specialist for the purposes of satisfying the requirements found in 2262.153(a) and 2262.153(b); (2) In assigning a private procurement specialist the comptroller of public accounts and the respective state agency shall take the following into account: (i) a private procurement specialist's relative experience and knowledge on the given subject associated with the high-cost contract, and (ii) any fees or costs otherwise associated in securing the services of the private procurement specialist. (3) review and approve an action related to a high-cost contract as provided by Section 2262.153; (4) provide recommendations and assistance to state agency personnel throughout the contract management process; and (5) coordinate and consult with the assigned private procurement specialist on all high-cost contracts relating to a major information resources project. Sec. 2262.153. REVIEW AND APPROVAL; WAIVER. (a) Each state agency must collaborate with a private procurement specialist before taking the following actions in relation to a high-cost contract: (1) publicly releasing solicitation documents; (2) executing a final contract; and (3) making a payment or a series of payments that equal half of the contract value. (b) In determining whether to approve an action described by Subsection (a), the assigned private procurement specialist and the comptroller of public accounts shall review related documentation to ensure that potential risks related to the high-cost contract have been identified and mitigated. (c) The comptroller of public accounts by rule may adopt criteria for waiving the review and approval requirements under Subsections (a) and (b). (d) The private procurement specialist's fee is to be paid by the appropriate agency out of funds appropriated. Sec. 2262.155. SOLICITATION AND CONTRACT CANCELLATION. After review of and comment on the matter by the Legislative Budget Board and the governor, the assigned private procurement specialist may recommend the cancellation of a solicitation or a contract during the review process under Section 2262.153 if: (1) a proposed solicitation is not in the best interest of the state; (2) a proposed contract would place the state at an unacceptable risk if executed; or (3) an executed contract is experiencing performance failure or payment irregularities. SECTION 4. Section 2262.051(f), Government Code, is repealed. SECTION 5. Subchapter D, Chapter 2262, Government Code, as added by this Act, applies only in relation to a contract: (1) for which the solicitation of bids, offers, qualifications, proposals, or similar expressions of interest is published on or after September 1, 2009; (2) that is extended or modified on or after September 1, 2009; or (3) for which a change order is submitted on or after September 1, 2009. SECTION 6. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2009.