Texas 2009 - 81st Regular

Texas Senate Bill SB953 Latest Draft

Bill / Introduced Version Filed 02/01/2025

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                            81R1396 YDB-D
 By: Shapleigh S.B. No. 953


 A BILL TO BE ENTITLED
 AN ACT
 relating to contracting issues of state agencies.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1. Section 2155.004(a), Government Code, is amended
 to read as follows:
 (a) A state agency may not accept a bid or award a contract
 that includes proposed financial participation by a person who
 participated, to any extent, [received compensation from the agency
 to participate] in preparing the specifications or request for
 proposals on which the bid or contract is based.
 SECTION 2. Section 2155.077(b), Government Code, is amended
 to read as follows:
 (b) Except as provided by Subsection (d) and subject to
 Chapter 2262, the commission shall bar a vendor from participating
 in state contracts under Subsection (a) for a period that is
 commensurate with the seriousness of the vendor's action and the
 damage to the state's interests.
 SECTION 3. Section 2155.144(d), Government Code, is amended
 to read as follows:
 (d) The [Subject to Subsection (e), the] agency shall [may]
 consider all relevant factors in determining the best value,
 including:
 (1) all start-up, [any] installation, transition,
 monitoring, and administrative costs;
 (2) the delivery terms;
 (3) the quality and reliability of the vendor's goods
 or services;
 (4) the extent to which the goods or services meet the
 agency's needs;
 (5) indicators of probable vendor performance under
 the contract such as past vendor performance, the vendor's
 financial resources and ability to perform, the vendor's experience
 and responsibility, and the vendor's ability to provide reliable
 maintenance agreements;
 (6) the impact on the ability of the agency to comply
 with laws and rules relating to historically underutilized
 businesses or relating to the procurement of goods and services
 from persons with disabilities;
 (7) the total long-term cost to the agency of
 acquiring the vendor's goods or services, including the cost of
 replacing the vendor's goods or services if the vendor fails to
 fulfill its obligations under the contract and the local economic
 impact of any state employee job loss associated with the
 procurement;
 (8) the cost of any employee training associated with
 the acquisition;
 (9) the effect of an acquisition on agency
 productivity;
 (10) the acquisition price; and
 (11) any other factor relevant to determining the best
 value for the agency in the context of a particular acquisition.
 SECTION 4. Section 2262.001, Government Code, is amended by
 amending Subdivisions (3) and (4) and adding Subdivision (3-a) to
 read as follows:
 (3) "Contract manager" means a person who:
 (A) is employed by a state agency; and
 (B) has significant contract management duties
 for the state agency[, as determined by the agency in consultation
 with the state auditor].
 (3-a)  "Executive director" means the administrative
 head of a state agency.
 (4) "Major contract" means a contract, including a
 renewal of a contract, that has a value of at least $1 million.
 SECTION 5. Section 2262.002, Government Code, is amended by
 adding Subsection (c) to read as follows:
 (c)  The comptroller on a case-by-case basis may exempt a
 state agency from the requirements of this chapter.
 SECTION 6. Sections 2262.051(a) and (b), Government Code,
 are amended to read as follows:
 (a) In consultation with the attorney general, the
 Department of Information Resources, [the comptroller,] and the
 state auditor, the comptroller [commission] shall develop or
 periodically update a contract management guide for use by state
 agencies. Participation by the state auditor under this
 subsection is subject to approval by the legislative audit
 committee for inclusion in the audit plan under Section 321.013(c).
 (b) The comptroller [commission] may adopt rules necessary
 to develop or update the guide.
 SECTION 7. Section 2262.052, Government Code, as amended by
 Chapters 309 (H.B. 3042) and 785 (S.B. 19), Acts of the 78th
 Legislature, Regular Session, 2003, is reenacted and amended to
 read as follows:
 Sec. 2262.052. COMPLIANCE WITH GUIDE. (a) Each state
 agency shall review, adopt, and comply with the contract management
 guide.
 (b) Subject to the legislative audit committee's approval
 of including the work described by this subsection in the audit plan
 under Section 321.013(c), the state auditor shall:
 (1) periodically monitor compliance with this
 section;
 (2) report any noncompliance to:
 (A) the governor;
 (B) the lieutenant governor;
 (C) the speaker of the house of representatives;
 and
 (D) the team; and
 (3) assist, in coordination with the attorney general
 and the comptroller, a noncomplying state agency to comply with
 this section.
 (c)  The comptroller may on a case-by-case basis exempt a
 state agency from complying with the contract management guide.
 SECTION 8. The heading to Section 2262.053, Government
 Code, is amended to read as follows:
 Sec. 2262.053. TRAINING FOR CONTRACT MANAGERS.
 SECTION 9. Section 2262.053, Government Code, is amended by
 amending Subsections (a), (b), and (d) and adding Subsections (e),
 (f), and (g) to read as follows:
 (a) In coordination with the [comptroller,] Department of
 Information Resources, [and] state auditor, and Health and Human
 Services Commission, the comptroller or a private vendor selected
 by the comptroller [commission] shall develop [or administer] a
 training program for contract managers.
 (b) The training must provide the contract manager with
 information regarding how to:
 (1) fairly and objectively select and negotiate with
 the most qualified contractor;
 (2) establish rates and prices that are cost-effective
 and that reflect the cost of providing the service;
 (3) include provisions in a contract that hold the
 contractor accountable for results;
 (4) form, monitor, oversee, and enforce a contract;
 (5) make payments consistent with the contract;
 (6) comply with any requirements or goals contained in
 the contract management guide; and
 (7) use and apply contract planning and procurement
 skills and advanced sourcing strategies, techniques, and tools.
 (d) The comptroller [Texas Building and Procurement
 Commission] shall administer the training program under this
 section.
 (e)  The comptroller shall certify contract managers who
 have completed the contract management training required under this
 section and keep a list of those contract managers.
 (f)  The program developed under this section must include a
 separate class on ethics and contracting.
 (g)  A state agency or educational entity may develop
 qualified contract manager training to supplement the training
 required under this section. The comptroller may incorporate the
 training developed by the agency or entity into the training
 program under this section.
 SECTION 10. Subchapter B, Chapter 2262, Government Code, is
 amended by adding Section 2262.0535 to read as follows:
 Sec. 2262.0535.  TRAINING FOR GOVERNING BODIES.  (a)  The
 comptroller or a private vendor selected by the comptroller shall
 adapt the program developed under Section 2262.053 to develop an
 abbreviated contract management and oversight program for training
 the members of the governing bodies of state agencies.  The training
 may be provided together with other required training for members
 of state agency governing bodies.
 (b)  All members of the governing body of a state agency
 shall complete at least one course of the training developed under
 this section. This subsection does not apply to a state agency that
 does not enter into any contracts.
 SECTION 11. Section 2262.054, Government Code, is amended
 to read as follows:
 Sec. 2262.054. PUBLIC COMMENT. The comptroller
 [commission] by rule may establish procedures by which each state
 agency is required to invite public comment by publishing the
 proposed technical specifications for major contracts on the
 Internet through the information service known as the Texas
 Marketplace or through a suitable successor information service.
 The guide must define "technical specifications."
 SECTION 12. Subchapter B, Chapter 2262, Government Code, is
 amended by adding Sections 2262.055 through 2262.068 to read as
 follows:
 Sec. 2262.055.  FEES FOR TRAINING. The comptroller shall
 set and collect a fee from state agencies that receive training
 under this subchapter in an amount that recovers the comptroller's
 costs for the training.
 Sec. 2262.056.  CONTRACT MANAGEMENT STAFF; WORKLOAD
 MEASURES.  Each state agency shall:
 (1)  identify appropriate staffing levels necessary to
 perform the contract management duties and activities required
 under this chapter; and
 (2)  develop workload measures and standards for the
 contract management staff.
 Sec. 2262.057.  STATE AGENCY REPOSITORY. Each state agency
 shall maintain in a central location all contracts for that agency.
 Sec. 2262.058.  REPORTING CONTRACTOR PERFORMANCE. (a)
 After a contract is completed or otherwise terminated, each state
 agency shall review the contractor's performance under the
 contract.
 (b)  Using the forms developed by the team under Sections
 2262.104 and 2262.105, the state agency shall report to the
 comptroller on the results of the review regarding the contractor's
 performance under the contract.
 Sec. 2262.059.  CONTRACTOR PERFORMANCE DATABASE. (a)  The
 comptroller shall store in a database contractor performance
 reviews as provided by this section.
 (b)  The comptroller shall evaluate the contractor's
 performance based on the information reported under Section
 2262.058 and criteria established by the comptroller by rule.
 Based on the results of the evaluation, the comptroller shall
 determine whether the contractor is approved or not approved under
 this subsection or barred under Section 2155.077.  The comptroller
 by rule shall state generally the reasons for which a contractor
 will be determined to be approved or not approved under this
 subsection.
 (c)  The comptroller shall establish an evaluation process
 that allows vendors who receive an unfavorable contractor
 performance review or who are the subject of an unfavorable
 determination made by the comptroller under Subsection (b) to
 protest the unfavorable review or unfavorable determination by the
 comptroller.
 (d)  The comptroller shall develop a database that
 incorporates the performance reviews and aggregates the reviews for
 each contractor.  The database must also include the determination
 made by the comptroller under Subsection (b) for each contractor.
 (e)  A state agency may use the performance review database
 to determine whether to award a contract to a contractor included in
 the database.
 Sec. 2262.060.  EXCLUDING CONTRACTOR FROM SOLICITATION
 PROCESS.  Based on its own contractor performance reviews and on
 information in the database developed under Section 2262.059, a
 state agency may exclude a contractor from the solicitation process
 for a contract if the agency determines the contractor has
 performed poorly on a previous state contract without regard to
 whether the contractor has been barred under Section 2155.077.
 Sec. 2262.061.  PERFORMANCE MEASURES; REPORTS. (a)  Each
 state agency shall develop a plan and timeline for incorporating
 process-oriented and outcome-based performance measures into all
 contracts entered into by the agency.  This includes ensuring that
 performance measures are written into each contract before
 execution.
 (b)  Before including the performance measures in a state
 agency contract, a state agency shall make available to the public a
 draft of the proposed performance measures and allow adequate time
 for review, comment, and incorporation of comments into the
 performance measures.
 (c)  Not later than March 1 of each year, each state agency
 shall report to the team, governor, lieutenant governor, and
 speaker of the house of representatives regarding performance
 measures in the agency's contracts. The report must describe the
 agency's efforts to include performance-based provisions in the
 agency's contracts.
 (d)  Each state agency shall make the report accessible to
 the public on the agency's website.
 Sec. 2262.062.  ANNUAL EVALUATION OF CERTAIN CONTRACTS. A
 state agency that enters into a contract with a monetary value that
 exceeds the monetary threshold provided by comptroller rule shall
 have an independent evaluator annually review the contract and the
 contractor's performance under the contract to determine whether
 the contractor is complying with the contract terms.
 Sec. 2262.063.  CONTRACT MANAGERS. (a)  Each state agency
 that enters into contracts other than interagency contracts shall
 establish a career ladder program for contract management in the
 agency.
 (b)  An employee hired as a contract manager may engage in
 procurement planning, contract solicitation, contract formation,
 price establishment, and other contract activities.
 (c)  Each state agency shall determine, in consultation with
 the state auditor, the amount and significance of contract
 management duties sufficient for an employee to be considered a
 contract manager under this chapter.
 (d)  A contract manager shall complete the training program
 and become certified under Section 2262.053.
 Sec. 2262.064.  APPROVAL OF CONTRACTS. (a)  Each state
 agency shall establish formal guidelines regarding who may approve
 a contract for the agency.
 (b)  Each state agency shall adopt administrative rules to
 establish:
 (1)  a monetary threshold above which agency contracts
 and amendments to or extensions of agency contracts require written
 authorization by the agency executive director; and
 (2)  a monetary threshold above which a draft contract
 may not be entered into unless the agency complies with public
 notice, public comment, and governing body approval procedures
 strictly analogous to rulemaking procedures under Chapter 2001
 before the contract is entered into.
 (c)  A state agency may not enter into a contract unless the
 contract is:
 (1)  approved and signed by at least two persons
 authorized to approve contracts for the agency; or
 (2)  approved by the agency's governing body in an open
 meeting.
 (d)  A person authorized to approve contracts for a state
 agency must sign a conflict-of-interest statement agreeing to
 disclose any potential conflict of interest before approving a
 contract.
 (e)  A state agency contract must include a provision
 designating who may authorize amendments to the contract for the
 state agency.  For state agency contracts valued in excess of $1
 million, the agency executive director must authorize a contract
 amendment in writing.
 (f)  Each state agency shall annually report to the
 comptroller a list of persons authorized to approve contracts at
 the agency. The list must include each person's name, position, and
 supervisory responsibility, if any.
 Sec. 2262.065.  NEGOTIATION OF CONTRACT BY SINGLE EMPLOYEE
 PROHIBITED. A state agency may not negotiate a contract with only
 one employee engaging in the negotiation.
 Sec. 2262.066.  DEVELOPMENT OF OPTIMIZED MODEL FOR CERTAIN
 CONTRACTS. (a)  If a state agency determines that a proposed
 contract or proposed contract extension or amendment would
 outsource existing services or functions performed by the agency
 that have a value of $10 million or more, the agency shall create an
 optimized model for the identified functions or services to
 determine how and at what cost the agency could most efficiently
 provide the functions or services.
 (b)  The model must show consideration of all relevant
 factors, including:
 (1) best practices in Texas and other states;
 (2) available technology;
 (3) access to benefits and services for clients;
 (4) program integrity; and
 (5)  assessment of state agency skills available
 throughout the life of the project.
 (c)  An agency that develops an optimized model under this
 section shall use it as the basis for cost comparison when deciding
 whether to outsource the identified functions or services.
 (d)  A model developed under this section is confidential and
 is not subject to disclosure under Chapter 552 until a final
 determination has been made to award the contract for which the
 model was developed.
 Sec. 2262.067.  ANALYSIS OF SERVICES AND FUNCTIONS.  (a)  In
 this section, "inherently governmental in nature" means a function
 or service that involves the exercise or use of governmental
 authority or discretion.
 (b)  If a state agency determines that a proposed contract or
 proposed contract extension or amendment would outsource existing
 services or functions performed by the agency that have a value of
 $10 million or more, then before the agency may issue a competitive
 solicitation for the contract or amend or extend the contract, the
 agency shall contract with the State Council on Competitive
 Government for its staff to perform an analysis to determine if any
 of the services or functions to be performed under the contract or
 contract extension or amendment are inherently governmental in
 nature.
 (c)  Except as provided by Subsection (e), if the State
 Council on Competitive Government determines that a service or
 function to be performed under the contract or contract extension
 or amendment is inherently governmental in nature, the state agency
 may not:
 (1)  contract with a private entity to perform the
 service or function; or
 (2)  amend or extend the contract, if a private entity
 is to perform the service or function under the contract extension
 or amendment.
 (d)  The analysis required under this section must use the
 guidelines developed by the State Council on Competitive
 Government.
 (e)  A state agency may contract with a private entity to
 perform a service or function or amend or extend an existing
 contract to allow a private entity to perform a service or function
 that the State Council on Competitive Government determines to be
 inherently governmental in nature if the chief administrative
 officer of the agency issues a report stating that there is a
 compelling state interest in outsourcing the service or function.
 Sec. 2262.068.  FULL AND FAIR COST COMPARISON.  (a)  If a
 state agency determines that a proposed contract or proposed
 contract extension or amendment would outsource existing services
 or functions performed by the agency that have a value greater than
 $10 million or another amount provided by comptroller rule, the
 agency shall:
 (1)  conduct a full and fair cost comparison to
 determine whether a private entity could perform the service or
 function with a comparable or better level of quality at a cost
 savings to the state; and
 (2)  prepare a business case providing the initial
 justification for the proposed contract or proposed contract
 extension or amendment that includes:
 (A)  the results of the comparison required under
 Subdivision (1); and
 (B)  the anticipated return on investment in terms
 of cost savings and efficiency for the proposed contract or
 proposed contract extension or amendment.
 (b)  To perform the comparison required by Subsection
 (a)(1), the state agency may:
 (1)  contract with the State Council on Competitive
 Government to have its staff perform the comparison; or
 (2) use the methodology provided in Section 2162.103.
 (c)  A state agency shall submit the business case required
 under Subsection (a)(2) to the governor, lieutenant governor,
 speaker of the house of representatives, Legislative Budget Board,
 and standing committees of the legislature that have primary
 jurisdiction over the agency, over state appropriations, and over
 state purchasing.
 SECTION 13. Section 2262.101, Government Code, is amended
 to read as follows:
 Sec. 2262.101. CREATION; DUTIES. (a) 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]
 (3) providing recommendations to the comptroller
 [commission] regarding:
 (A) the development of the contract management
 guide; [and]
 (B) the training under Section 2262.053; and
 (C)  any state agency that should be exempt under
 Section 2262.002(c) or 2262.052(c) from complying with the contract
 management guide;
 (4)  certifying that state agencies have complied with
 Sections 2262.066 and 2262.068; and
 (5)  setting standards for outsourcing state services
 and prescribing methods for monitoring those services.
 (b)  The team shall consult with state agencies in developing
 forms, contract terms, guidelines, and criteria required under this
 chapter.
 SECTION 14. Section 2262.102(a), Government Code, is
 amended to read as follows:
 (a) The team consists of the following five members:
 (1) one member from the attorney general's office;
 (2) two members [one member] from the comptroller's
 office;
 (3) one member from the Department of Information
 Resources; and
 (4) [one member from the Texas Building and
 Procurement Commission; and
 [(5)] one member from the governor's office.
 SECTION 15. Subchapter C, Chapter 2262, Government Code, is
 amended by adding Sections 2262.104 and 2262.105 to read as
 follows:
 Sec. 2262.104.  UNIFORM DEFINITIONS AND FORMS. (a)  The team
 established under Section 2262.101 shall develop and publish a
 uniform set of definitions for use as applicable in state
 contracts.  Each state agency shall use the terminology as
 applicable in the contracts entered into by the agency.
 (b)  The team shall develop and publish a uniform and
 automated set of forms that a state agency must use in the different
 stages of the contracting process.
 Sec. 2262.105.  FORMS FOR REPORTING CONTRACTOR PERFORMANCE.
 As part of the uniform forms published under Section 2262.104, the
 team shall develop forms for use by state agencies in reporting a
 contractor's performance under Section 2262.058.
 SECTION 16. Chapter 2262, Government Code, is amended by
 adding Subchapters D, E, F, and G to read as follows:
 SUBCHAPTER D. CONTRACT PROVISIONS
 Sec. 2262.151.  USE OF UNIFORM FORMS.  A state agency shall
 use the forms developed under Section 2262.104 as templates,
 guides, or samples for contracts entered into by the agency.
 Sec. 2262.152.  CONTRACT TERMS RELATING TO NONCOMPLIANCE.
 (a)  A state agency contract shall include provisions authorizing
 the agency to impose clearly defined penalties for noncompliance
 with contract terms. The provisions must include mechanisms for
 identifying when a contractor fails to comply with the contract
 terms, remedies to compel compliance, and remedies available for
 persons affected by the noncompliance.
 (b)  The team shall develop recommendations for contract
 terms regarding penalties for contractors who do not comply with a
 contract, including penalties for contractors who do not disclose
 conflicts of interest under Section 2262.201.  The team may develop
 recommended contract terms that are generally applicable to state
 contracts and terms that are applicable to important types of state
 contracts.
 (c)  A state agency may include applicable recommended terms
 in a contract entered into by the agency.
 Sec. 2262.153.  REQUIRED PROVISION RELATING TO
 SUBCONTRACTOR COMPLIANCE.  Each state agency contract must require
 that each contractor provide a list of all subcontractors for the
 contract and include a provision that:
 (1)  holds the contractor responsible for the conduct
 of all subcontractors in complying with the contractor's contract
 with the state agency; and
 (2)  requires each subcontractor to disclose all
 potential conflicts of interest to the state agency, according to
 guidelines developed under Section 2262.201(b), when the
 subcontractor contracts with or is otherwise hired by the
 contractor.
 Sec. 2262.154.  LANGUAGE CONTAINED IN REQUEST FOR PROPOSALS.
 Each state agency contract must incorporate the language used in
 the request for proposals for that contract.
 Sec. 2262.155.  PROVISION RELATED TO POLITICAL
 CONTRIBUTIONS.  Each contract entered into by a state agency must
 include a provision that prohibits the contractor from making a
 campaign contribution to an elected official during the term of the
 contract.
 Sec. 2262.156.  REQUIRED CONTRACTOR DISCLOSURE STATEMENT;
 OUTSOURCING. (a)  Each contract entered into by a state agency must
 include a provision requiring disclosure of any services materially
 necessary to fulfill the contract, including services performed by
 a subcontractor, that will be or are performed in a country other
 than the United States.  This section does not apply to services
 that are occasional, minor, or incidental to fulfilling the
 contract.
 (b)  The contract must include a provision allowing the state
 agency to terminate the contract and solicit a new contract, except
 when a contractor takes prompt corrective action described by
 Subsection (c), if:
 (1)  the contractor or a subcontractor of the
 contractor performs a service materially necessary to fulfill the
 contract in a country other than the United States; and
 (2)  the contractor does not disclose in the contract
 that the service will be performed in a country other than the
 United States.
 (c)  A contractor may replace a subcontractor without
 termination of a contract under this section if the contractor
 determines that the subcontractor is performing a service
 materially necessary to fulfill the contract in a country other
 than the United States and did not disclose that fact to the
 contractor.
 SUBCHAPTER E. ETHICS; CONFLICT OF INTEREST; PROHIBITIONS
 Sec. 2262.201.  CONTRACTOR CONFLICTS OF INTEREST. (a)  Each
 contractor who responds to a state agency's contract solicitation
 shall disclose in its response all potential conflicts of interest
 to the agency.
 (b)  The team shall develop guidelines to aid contractors and
 state agencies in identifying potential conflicts of interest.
 Sec. 2262.202.  EXECUTIVE DIRECTORS; ETHICS IN CONTRACTING
 CLASS. Each executive director of a state agency shall annually
 complete the ethics and contracting class developed under Section
 2262.053(f).  This section does not apply to a state agency that
 does not enter into any contracts.
 Sec. 2262.203.  PROHIBITIONS RELATED TO STATE CONTRACTS.
 (a) A state agency may not enter into or renew a contract with a
 person who has as an employee a former state agency employee who was
 involved in contracting for the agency in the preceding six months.
 (b)  A state agency may not employ an individual who was
 employed by a person that conducts business with the state agency
 before the last day of the sixth month after the date the individual
 was last employed by the person.
 (c)  The team may exempt a state agency from a prohibition
 provided by Subsection (a) or (b).
 SUBCHAPTER F. CHANGES TO CONTRACTS
 Sec. 2262.251.  CONTRACT AMENDMENTS, EXTENSIONS, AND CHANGE
 ORDERS. (a)  An extension of or amendment to a contract, including
 a change order, is subject to the same rules and approval processes
 as the original contract.
 (b)  A state agency may not extend or amend a contract
 unless:
 (1)  the agency complies with the same rules and
 approval processes for the extension or amendment as required for
 the original contract; and
 (2)  a contract manager for the agency states in
 writing why the extension or amendment is necessary.
 (c)  This section does not affect whether a state agency is
 required to undertake a new solicitation process in the manner
 required for a new contract in order to extend or amend a contract.
 Sec. 2262.252.  AMENDMENT REQUIRING SIGNIFICANT ALTERATION.
 A state agency may not amend a contract to significantly alter the
 original terms or monetary value of the contract awarded through a
 competitive bidding process unless the state agency conducts
 another competitive bidding process for the goods or services under
 the new terms.
 Sec. 2262.253.  CERTAIN CONTRACT EXTENSIONS.  This
 subchapter does not apply to contract extensions that are
 specifically established as a component of the original
 procurement.
 SUBCHAPTER G. OFFICE OF CONTRACT MANAGEMENT; HIGH-RISK CONTRACTS
 Sec. 2262.301. DEFINITIONS. In this subchapter:
 (1)  "High-risk contract" means a state agency contract
 that:
 (A) has a value of at least $10 million; or
 (B)  has a value of less than $10 million, but has
 high-risk factors as identified by a state agency's office of
 contract management.
 (2)  "Major information resources project" has the
 meaning assigned by Section 2054.003(10).
 (3)  "Quality assurance team" means the quality
 assurance team established under Section 2054.158.
 (4)  "Solicitation" means a solicitation for bids,
 offers, qualifications, proposals, or similar expressions of
 interest for a high-risk contract.
 Sec. 2262.302.  ESTABLISHMENT; GENERAL DUTIES.  Each state
 agency subject to this chapter shall establish an office of
 contract management to:
 (1)  develop criteria for identifying high-risk
 factors in contracts;
 (2)  review and approve an action related to a
 high-risk contract as provided by Section 2262.303;
 (3)  provide recommendations and assistance to agency
 personnel throughout the contract management process; and
 (4)  coordinate and consult with the quality assurance
 team on all high-risk contracts relating to a major information
 resources project.
 Sec. 2262.303.  REVIEW AND APPROVAL; WAIVER.  (a)  A state
 agency must receive approval from the agency's office of contract
 management before taking the following actions in relation to a
 high-risk 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 agency's office of contract management shall
 review related documentation to ensure that potential risks related
 to the high-risk contract have been identified and mitigated.
 (c)  The comptroller by rule may adopt criteria for waiving
 the review and approval requirements under Subsections (a) and (b).
 Sec. 2262.304.  SOLICITATION AND CONTRACT CANCELLATION.
 After review of and comment on the matter by the Legislative Budget
 Board and the governor, a state agency's office of contract
 management may recommend the cancellation of a solicitation or a
 contract during the review process under Section 2262.303 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.
 Sec. 2262.305.  AUDIT OF HIGH-RISK CONTRACT.  The state
 auditor shall conduct an audit of a state agency contract
 identified as high risk by a state agency or the team.
 SECTION 17. Sections 2155.004(e), 2262.001(1-a), and
 2262.0011, Government Code, are repealed.
 SECTION 18. (a) Sections 2262.065 through 2262.068,
 Government Code, and Subchapter G, Chapter 2262, Government Code,
 as added by this Act, apply only to a contract for which a state
 agency first advertises or otherwise solicits bids, proposals,
 offers, or qualifications on or after the effective date of this
 Act.
 (b) Section 2262.201(a), Government Code, as added by this
 Act, applies only in relation to a contract for which a state agency
 first solicits bids, proposals, offers, or qualifications on or
 after the date that the Contract Advisory Team's guidelines
 regarding potential conflicts of interest take effect.
 SECTION 19. Not later than May 1, 2010, the comptroller of
 public accounts shall develop the training program, including the
 ethics and contracting class, required by Section 2262.053,
 Government Code, as amended by this Act, and Section 2262.0535,
 Government Code, as added by this Act.
 SECTION 20. A member of a governing body of a state agency
 is not required to complete the training developed under Section
 2262.0535, Government Code, as added by this Act, until September
 1, 2011.
 SECTION 21. An executive director of a state agency is not
 required to comply with Section 2262.202, Government Code, as added
 by this Act, until September 1, 2011.
 SECTION 22. A contract manager is not required to be
 certified under Chapter 2262, Government Code, as amended by this
 Act, until September 1, 2011.
 SECTION 23. (a) As soon as practicable, and not later than
 May 1, 2010, the Contract Advisory Team shall develop the forms,
 criteria, recommendations, and provisions required by this Act,
 including Sections 2262.104, 2262.105, 2262.152, and 2262.201(b),
 Government Code, as added by this Act.
 (b) A state agency is not required to comply with Sections
 2262.057 through 2262.064 and Sections 2262.151, 2262.152,
 2262.153, and 2262.156, Government Code, as added by this Act,
 until September 1, 2011. A state agency may comply earlier if the
 forms, electronic requirements, database, or other items are
 available before that date.
 SECTION 24. This Act takes effect November 1, 2009.