By: Cook H.B. No. 2499
A BILL TO BE ENTITLED
AN ACT
relating to the continuation and functions of the Department of
Information Resources and the transfer of certain department
functions to the comptroller of public accounts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 572.054, Government Code, is amended by
adding Subsection (g-1) to read as follows:
(g-1) For purposes of this section, the Department of
Information Resources is a regulatory agency.
SECTION 2. Section 2054.005, Government Code, is amended to
read as follows:
Sec. 2054.005. SUNSET PROVISION. The Department of
Information Resources is subject to Chapter 325 (Texas Sunset Act).
Unless continued in existence as provided by that chapter, the
department is abolished and this chapter expires September 1, 2017
[2011].
SECTION 3. Sections 2054.021(a), (c), (g), and (h),
Government Code, are amended to read as follows:
(a) The department is governed by a board composed of seven
voting members appointed by the governor with the advice and
consent of the senate. One member must be employed by an
institution of higher education as defined by Section 61.003,
Education Code. Each member must have expertise in at least one of
the following areas:
(1) business or financial management;
(2) information technology;
(3) telecommunications; or
(4) any other area necessary for policymaking and
oversight of the department.
(c) Three [Two] groups each composed of three ex officio
members serve on the board on a rotating basis. The ex officio
members serve as nonvoting members of the board. [Only one group
serves at a time.] The first group is composed of the commissioner
of insurance, the executive commissioner of the Health and Human
Services Commission, and the executive director of a small state
agency [the Texas Department of Transportation]. [Members of the
first group serve for two-year terms that begin February 1 of every
other odd-numbered year and that expire on February 1 of the next
odd-numbered year.] The second group is composed of the executive
director of the Texas Department of Transportation, the
commissioner of education, and the executive director of a small
state agency. The third group is composed of the executive director
of the Texas Department of Criminal Justice, [and] the executive
director of the Parks and Wildlife Department, and the executive
director of a small state agency. Members of a [the second] group
serve on the board for two-year terms that begin February 1 of [the]
odd-numbered years [in which the terms of members of the first group
expire] and [that] expire on February 1 of the next odd-numbered
year. Only one group serves at a time. The governor shall appoint
the small state agency representative for each group. In this
subsection, "small state agency" means a state agency with fewer
than 100 employees.
(g) The training program must provide information to the
person regarding:
(1) this chapter and the board [the enabling
legislation that created the department and its policymaking body]
to which the person is appointed to serve;
(2) the programs operated by the department;
(3) the role and functions of the department;
(4) the rules of the department, with an emphasis on
the rules that relate to disciplinary and investigatory authority;
(5) the current budget for the department;
(6) the results of the most recent formal audit of the
department;
(7) the requirements of the:
(A) open meetings law, Chapter 551;
(B) open records law, Chapter 552; and
(C) administrative procedure law, Chapter 2001;
(8) the requirements of the conflict of interest laws
and other laws relating to public officials; [and]
(9) any applicable ethics policies adopted by the
department or the Texas Ethics Commission; and
(10) contract management training.
(h) A person appointed to the board under Subsection (a) is
entitled to reimbursement for travel expenses incurred in attending
the training program, as provided by the General Appropriations Act
and as if the person were a member of the board.
SECTION 4. Section 2054.022(c), Government Code, is amended
to read as follows:
(c) An employee of the department, other than the executive
director,[:
[(1) may not participate in the department's bidding
process, including the proposal development related to a contract
and the negotiation of a contract, if:
[(A) the employee receives more than five percent
of the employee's income from any likely bidder on the contract; or
[(B) the employee's spouse is employed by any
likely bidder on the contract; and
[(2)] may not:
(1) [(A)] be a person required to register as a
lobbyist under Chapter 305 because of the person's activities for
compensation on behalf of a business entity that has, or on behalf
of a trade association of business entities that have, a
substantial interest in the information resources technologies
industry; or
(2) [(B)] be employed by a state agency as a
consultant on information resources technologies.
SECTION 5. Section 2054.0285(b), Government Code, is
amended to read as follows:
(b) The executive director has authority for certain [all]
aspects of information technology for state agencies, including:
(1) the use of technology to support state goals;
(2) functional support to state agencies;
(3) [technology purchases;
[(4)] deployment of new technology;
(4) [(5)] delivery of technology services; and
(5) [(6)] provision of leadership on technology
issues.
SECTION 6. Subchapter B, Chapter 2054, Government Code, is
amended by adding Section 2054.0331 to read as follows:
Sec. 2054.0331. CUSTOMER ADVISORY COMMITTEE. (a) The
board shall appoint a customer advisory committee under Section
2054.033.
(b) The advisory committee is composed of customers who
receive services from each of the department's key programs and of
members of the public, including at least:
(1) one member representing a state agency with fewer
than 100 employees;
(2) one member appointed by the Information Technology
Council for Higher Education; and
(3) one public member.
(c) The advisory committee shall report to and advise the
board on the status of the department's delivery of critical
statewide services.
SECTION 7. Subchapter B, Chapter 2054, Government Code, is
amended by adding Sections 2054.0345 and 2054.0346 to read as
follows:
Sec. 2054.0345. DETERMINATION OF ADMINISTRATIVE FEES. (a)
The department shall adopt a process to determine the amount of the
administrative fee the department charges to administer any of its
programs, including fees charged for programs under Sections
2054.380 and 2170.057.
(b) The process must require that the amount of a fee
directly relate to the amount necessary for the department to
recover the cost of its operations, as determined by the
department's annual budget process.
(c) The department shall develop clear procedures directing
staff for each department program and the department's financial
staff to work together to determine the amount of administrative
fees. The procedures must require review and approval of all
administrative fees by the board, the executive director, and the
department's chief financial officer.
Sec. 2054.0346. REPORTING OF ADMINISTRATIVE FEES. (a) The
department shall report to the Legislative Budget Board all
administrative fees that the department sets under Section
2054.0345 each fiscal year. The report must include:
(1) the underlying analysis and methodology used to
determine the fee amounts; and
(2) the cost allocation charged to customers.
(b) The department shall post on the department's website
information about each administrative fee the department charges,
including a description of how the fee is determined. The
department must update this information when a contract amendment
or other action results in a major change to the costs incurred or
the price paid by the department or a customer of the department.
SECTION 8. Subchapter B, Chapter 2054, Government Code, is
amended by adding Section 2054.037 to read as follows:
Sec. 2054.037. NEGOTIATED RULEMAKING; ALTERNATIVE DISPUTE
RESOLUTION. (a) The board shall develop and implement a policy to
encourage the use of:
(1) negotiated rulemaking procedures under Chapter
2008 for the adoption of department rules; and
(2) appropriate alternative dispute resolution
procedures under Chapter 2009 to assist in the resolution of
internal and external disputes under the department's
jurisdiction.
(b) The department's procedures relating to alternative
dispute resolution must conform, to the extent possible, to any
model guidelines issued by the State Office of Administrative
Hearings for the use of alternative dispute resolution by state
agencies.
(c) The department shall:
(1) coordinate the implementation of the policy
adopted under Subsection (a);
(2) provide training as needed to implement the
procedures for negotiated rulemaking or alternative dispute
resolution; and
(3) collect data concerning the effectiveness of those
procedures.
SECTION 9. Subchapter B, Chapter 2054, Government Code, is
amended by adding Sections 2054.038, 2054.039, and 2054.040 to read
as follows:
Sec. 2054.038. INTERNAL AUDITOR; POWERS AND DUTIES. (a)
The board shall:
(1) appoint an internal auditor who reports directly
to the board and serves at the will of the board; and
(2) provide staff and other resources to the internal
auditor as appropriate.
(b) The internal auditor shall prepare an annual audit plan
using risk assessment techniques to rank high-risk functions in the
department. The internal auditor shall submit the annual audit
plan to the board for consideration and approval. The board may
change the plan as necessary or advisable.
(c) The internal auditor may bring before the board an issue
outside of the annual audit plan that requires the immediate
attention of the board.
(d) The internal auditor may not be assigned any operational
or management responsibilities that impair the ability of the
internal auditor to make an independent examination of the
department's operations. The internal auditor may provide guidance
or other advice before an operational or management decision is
made but may not make the decision, approve the decision, or
otherwise violate this subsection.
(e) The department shall give the internal auditor
unrestricted access to the activities and records of the department
unless restricted by other law.
Sec. 2054.039. OPEN MEETINGS EXCEPTION FOR INTERNAL
AUDITOR. A meeting between the board and the department's internal
auditor to discuss issues related to fraud, waste, or abuse is not
required to be an open meeting under Chapter 551.
Sec. 2054.040. AUDIT SUBCOMMITTEE. (a) The board shall
maintain an audit subcommittee of the board. The subcommittee
shall oversee the department's internal auditor and any other audit
issues that the board considers appropriate.
(b) The subcommittee shall evaluate whether the internal
auditor has sufficient resources to perform the auditor's duties
and ensure that sufficient resources are available.
SECTION 10. Subchapter B, Chapter 2054, Government Code, is
amended by adding Section 2054.041 to read as follows:
Sec. 2054.041. ADDITIONAL BOARD OVERSIGHT. (a) The board
shall adopt a policy describing the board's role in setting a
strategic direction for the department. The policy must address
the board's role in developing new initiatives for and service
offerings by the department, including requiring the board to
evaluate and approve new initiatives for, or categories of,
services offered by the department under the department's various
programs.
(b) The board shall regularly evaluate the extent to which
the department fulfills the department's information resources
technology mission by providing cost-effective services and
meeting customer needs.
(c) The board shall regularly evaluate department
operations, including an evaluation of analytical data and
information regarding trends in department revenue and expenses, as
well as performance information.
SECTION 11. Subchapter C, Chapter 2054, Government Code, is
amended by adding Section 2054.0525 to read as follows:
Sec. 2054.0525. ASSISTANCE TO STATE AGENCIES. The
department on request shall advise and provide technical assistance
to a state agency to determine the agency's information resources
technology needs and to solve the agency's information resources
technology problems.
SECTION 12. Section 2054.0565(a), Government Code, is
amended to read as follows:
(a) The comptroller [department] may include terms in a
procurement contract entered into by the comptroller [department],
including a contract entered into under Section 2157.068, that
allow the contract to be used by another state agency, a political
subdivision of this state, a governmental entity of another state,
or an assistance organization as defined by Section 2175.001.
SECTION 13. Section 2054.057, Government Code, is amended
to read as follows:
Sec. 2054.057. TRAINING IN CONTRACT NEGOTIATION. (a) The
[department, with the cooperation of the] comptroller and other
appropriate state agencies[,] shall develop and implement a program
to train state agency personnel in effectively negotiating
contracts for the purchase of information resources technologies.
(b) The comptroller [department] shall make the training
available to state agency personnel who are directly or indirectly
involved in contract negotiations, such as senior or operational
management, purchasers, users of the purchased technologies, and
personnel with relevant technical, legal, or financial knowledge.
(c) The comptroller [department] shall include in the
training:
(1) information on developing a structured purchasing
method that meets an agency's needs;
(2) information drawn from the state's previous
procurement experience about what is or is not advantageous for the
state;
(3) the perspective of state agencies with oversight
responsibilities related to the state's procurement of information
resources technologies; and
(4) other information that the comptroller
[department] considers to be useful.
(d) The comptroller [department] may use its own staff or
contract with private entities or other state agencies to conduct
the training.
SECTION 14. Subchapter C, Chapter 2054, Government Code, is
amended by adding Section 2054.061 to read as follows:
Sec. 2054.061. USE OF CONSULTANTS AND OUTSIDE STAFF. (a)
The department shall develop clear criteria for the appropriate use
of consultants and outside staff by the department to temporarily
augment the department's existing staff.
(b) The department shall annually analyze:
(1) the department's staffing needs;
(2) the need for and cost-effectiveness of contracting
for consultants and outside staff;
(3) whether the department could use department staff
to accomplish tasks proposed for the consultants and outside staff;
and
(4) whether and what type of training or additional
resources are necessary for the department to use the department's
own staff to accomplish tasks proposed for the consultants or
outside staff.
(c) In conjunction with the budget process, the department
shall provide the analysis to the board for approval. The
department may not hire or train any consultants or outside staff
unless it has been approved during this budget process.
SECTION 15. Subchapter C, Chapter 2054, Government Code, is
amended by adding Section 2054.062 to read as follows:
Sec. 2054.062. INFORMATION RESOURCES TECHNOLOGIES
CONSOLIDATION. (a) The department shall develop a consistent and
clear method of measuring the costs and progress of an information
resources technology consolidation initiative, including a
consolidation under Subchapter L.
(b) The department shall work with any entity involved in an
information resources technology consolidation to develop an
agreed on methodology for collecting and validating data to
determine a baseline assessment of costs. The department shall use
the data both in the department's initial cost projections and in
any later cost comparison. The department shall coordinate with
the internal auditor for guidance, subject to Section 2054.038(d),
on developing a methodology that provides an objective assessment
of costs and project status.
(c) Using the methodology agreed on under Subsection (b),
the department shall evaluate actual costs and cost savings related
to the consolidation. The department shall also evaluate the
progress of the department's information resources consolidation
projects compared to the initially projected timelines for
implementation. The evaluation results must break out the
information on both statewide and individual entity levels.
(d) The department shall annually report the evaluation
results to:
(1) the board;
(2) the Legislative Budget Board; and
(3) customers involved in the consolidation.
(e) The department shall post on the department's website
the report required by this section.
SECTION 16. Sections 2054.1015(b), (c), (d), and (e),
Government Code, are amended to read as follows:
(b) The comptroller [department] may require a state agency
to provide [to the department] a planned procurement schedule for
commodity items if the comptroller [department] determines that the
information in the schedule can be used to provide a benefit to the
state. If required by the comptroller [department], a state agency
must provide a planned procurement schedule for commodity items to
the comptroller and the department before the agency's operating
plan may be approved under Section 2054.102.
(c) The comptroller [department] shall use information
contained in the schedules to plan future vendor solicitations of
commodity items or for any other activity that provides a benefit to
the state.
(d) A state agency shall notify the comptroller
[department], the Legislative Budget Board, and the state auditor's
office if the agency makes a substantive change to a planned
procurement schedule for commodity items.
(e) The comptroller [department] shall specify hardware
configurations for state commodity items in its instructions for
the preparation of planned procurement schedules.
SECTION 17. Section 2054.122, Government Code, is amended
to read as follows:
Sec. 2054.122. COORDINATED TECHNOLOGY TRAINING. A state
agency each calendar quarter shall coordinate agency training for
the use of information resources technologies with training offered
or coordinated by the department or comptroller. The agency shall
use training offered or coordinated by the department or
comptroller if it meets agency requirements and is
cost-competitive.
SECTION 18. Section 2054.124, Government Code, is amended
to read as follows:
Sec. 2054.124. POWER MANAGEMENT SOFTWARE. (a) After
researching the software available, the comptroller [department]
shall by competitive bid select power management software to be
used, if technically feasible, by state agencies to reduce the
amount of energy required to operate state computer networks and
networked personal computers.
(b) [(c)] An institution of higher education shall
purchase, lease, or otherwise acquire and use power management
software only if the comptroller [department], in consultation with
the Information Technology Council for Higher Education,
determines that the institution of higher education's use of power
management software would provide cost savings to this state. In
making a determination under this subsection, the comptroller
[department] must perform the analysis described by Section
2054.121(c) in the same manner as the department under that
subsection. The analysis must include an assessment of how the use
of power management software affects the security of electronic
data, including data protected from public disclosure by state or
federal law.
SECTION 19. Subchapter L, Chapter 2054, Government Code, is
amended by adding Section 2054.392 to read as follows:
Sec. 2054.392. STATEWIDE TECHNOLOGY ACCOUNT. The
comptroller shall establish in the state treasury the statewide
technology account. The account is a revolving fund account for the
administration of this subchapter. The account is the depository
for all money received from entities served under this subchapter.
Money in the account may be used only for the operation and
management of a statewide technology center or for any other
purpose specified by the legislature.
SECTION 20. Chapter 2054, Government Code, is amended by
adding Subchapters N and O to read as follows:
SUBCHAPTER N. MAJOR OUTSOURCED CONTRACTS
Sec. 2054.501. MAJOR OUTSOURCED CONTRACT DEFINED; RULE.
The board by rule shall define what constitutes a major outsourced
contract with regard to contracts the department executes with
entities other than this state or a political subdivision of this
state. The definition must include as a major outsourced contract:
(1) outsourced contracts entered into under
Subchapter I and Subchapter L of this chapter or Chapter 2170; and
(2) contracts that exceed a monetary threshold, other
than those described by Subdivision (1).
Sec. 2054.502. BOARD APPROVAL AND OVERSIGHT OF MAJOR
OUTSOURCED CONTRACTS. (a) The department must receive approval
from the board before:
(1) entering into a major outsourced contract; or
(2) amending any major outsourced contract, if the
amendment has significant statewide impact.
(b) The board shall establish one or more subcommittees to
monitor the department's major outsourced contracts.
Sec. 2054.503. MANAGEMENT PLANS FOR MAJOR OUTSOURCED
CONTRACTS. (a) The department shall specify procedures for
administering, monitoring, and overseeing each major outsourced
contract by creating a management plan for each contract. In each
management plan, the department shall specify the department's
approach to managing and mitigating the risks inherent in each
contract.
(b) Department staff who perform contract administration
and program duties shall jointly develop the management plans with
input from executive management and the board. Each management plan
must be approved by the executive director.
(c) Each management plan must establish clear lines of
accountability and coordination of contract activities. The plan
must provide details about implementing the program that is the
subject of the contract as well as procedures for monitoring
contractor performance, identifying and mitigating risks related
to the contract, and involving and communicating with customers who
will be served by any programs implemented through the contract. As
appropriate, the plan must define an approach for transitioning
from one major outsourced contract to another major outsourced
contract.
(d) The department shall revise each management plan:
(1) as necessary to keep current during the
contracting process; and
(2) when the department renews, amends, or resolicits
a major outsourced contract to ensure the plan remains updated and
incorporates any changes resulting from a new contract.
Sec. 2054.504. CUSTOMER INVOLVEMENT IN MAJOR OUTSOURCED
CONTRACTS. The department shall establish formal procedures to
ensure customer involvement in decision making regarding each of
the department's major outsourced contracts, including initial
analysis, solicitation development, and contract award and
implementation, that affect those customers.
SUBCHAPTER O. ADDITIONAL PROVISIONS ON CONTRACTING
Sec. 2054.531. DEFINITION. In this subchapter, "contract
management guide" means the guide developed under this subchapter.
Sec. 2054.532. RULES. In addition to the rules adopted
under Subchapter N for major outsourced contracts, the board by
rule shall establish approval requirements for all other contracts,
including a monetary threshold above which board approval is
required before the contract may be executed.
Sec. 2054.533. CONFLICT OF INTEREST IN CONTRACTING. (a) A
department employee may not:
(1) have an interest in, or in any manner be connected
with, a contract or bid for a purchase of goods or services by the
department; or
(2) in any manner, including by rebate or gift,
directly or indirectly accept or receive from a person to whom a
contract may be awarded anything of value or a promise, obligation,
or contract for future reward or compensation.
(b) A department employee who violates Subsection (a)(2) is
subject to dismissal.
(c) The board shall adopt rules to implement this section.
(d) The department shall train staff in the requirements of
this section and Section 572.054 and incorporate the requirements
into the contract management guide and the department's internal
policies, including employee manuals.
Sec. 2054.534. CONTRACT MANAGEMENT TRAINING POLICY. (a)
The department shall develop a policy for training department staff
in contract management.
(b) The policy must establish contract management training
requirements for all staff involved in contract management,
including contract managers, program staff, and executive
management.
(c) The policy must specify the department's overall
approach to procuring and managing contracts, as well as
contract-specific procedures developed in the contract management
guide and under Subchapter N.
Sec. 2054.535. CONTRACT MANAGEMENT GUIDE; RULES. (a) The
department shall develop and periodically update a contract
management guide to provide an overall, consistent approach on
procurement and management of major outsourced contracts under
Subchapter N and other contracts. In updating the guide, the
department shall make changes based on contract experiences and
account for changing conditions to guide the updates.
(b) The department shall coordinate with the department's
internal auditor, subject to Section 2054.038(d), as needed for
assistance and guidance in developing procedures in the contract
management guide for monitoring contracts and individual
contractors.
(c) The board may adopt rules necessary to develop or update
the contract management guide.
(d) The contract management guide must provide information
regarding the department's:
(1) general approach to business case analysis,
procurement planning, contract solicitation, contract execution,
and contract monitoring and oversight;
(2) ethics standards and policies, including those
required by Section 2054.533; and
(3) approach to changing a program's internal
structure or model for delivering services to customers.
(e) The contract management guide must:
(1) establish clear lines of accountability, staff
roles and responsibilities, and decision-making authority for
program staff, contract management staff, executive management,
customers, and the board;
(2) include the procedures established under Section
2054.504 regarding customer involvement; and
(3) establish the department's process for evaluating
and managing risk during each stage of contract procurement,
implementation, and management.
(f) The contract management guide must describe the
expectations and standards for obtaining and using customer input
during all contract management phases.
SECTION 21. Sections 2155.502(a), (b), and (c), Government
Code, are amended to read as follows:
(a) The comptroller [commission] shall develop a schedule
of multiple award contracts that have been previously awarded using
a competitive process by:
(1) the federal government, including the federal
General Services Administration; or
(2) any other governmental entity in any state.
(b) In developing a schedule under Subsection (a) [or (e)],
the comptroller [commission or department, as appropriate,] shall
modify any contractual terms, with the agreement of the parties to
the contract, as necessary to comply with any federal or state
requirements, including rules adopted under this subchapter.
(c) The comptroller [commission] may not list a multiple
award contract on a schedule developed under Subsection (a) if the
goods or services provided by that contract:
(1) are available from only one vendor; or
(2) are telecommunications services, facilities, or
equipment[; or
[(3) are commodity items as defined by Section
2157.068(a)].
SECTION 22. Section 2155.503, Government Code, is amended
to read as follows:
Sec. 2155.503. RULES. (a) The comptroller [and the
department] shall adopt rules to implement this subchapter. The
rules must:
(1) establish standard terms for contracts listed on a
schedule; and
(2) maintain consistency with existing purchasing
standards.
(b) The comptroller [and the department] shall consult with
the attorney general in developing rules under this section.
SECTION 23. Section 2157.004, Government Code, is amended
to read as follows:
Sec. 2157.004. TRANSFERS AND LOANS. A state agency that
acquires a telecommunications device, system, or service or an
automated information system by interagency transfer, contract, or
loan, or by public loan, shall comply with the requirements that
apply to that acquisition under [of] Chapter 2054 and this chapter.
SECTION 24. Section 2157.068, Government Code, is amended
to read as follows:
Sec. 2157.068. PURCHASE OF INFORMATION TECHNOLOGY
COMMODITY ITEMS. (a) In this section, "commodity items" means
commercial software, hardware, or technology services, other than
telecommunications services, that are generally available to
businesses or the public and for which the comptroller [department]
determines that a reasonable demand exists in two or more state
agencies. The term includes seat management, through which a state
agency transfers its personal computer equipment and service
responsibilities to a private vendor to manage the personal
computing needs for each desktop in the state agency, including all
necessary hardware, software, and support services.
(b) The comptroller [department] shall negotiate with
vendors to attempt to obtain a favorable price for all of state
government on licenses for commodity items, based on the aggregate
volume of purchases expected to be made by the state. The terms and
conditions of a license agreement between a vendor and the
comptroller [department] under this section may not be less
favorable to the state than the terms of similar license agreements
between the vendor and retail distributors.
(c) In contracting for commodity items under this section,
the comptroller [department] shall make good faith efforts to
provide contracting opportunities for, and to increase contract
awards to, historically underutilized businesses and persons with
disabilities' products and services available under Chapter 122,
Human Resources Code.
(d) The comptroller [department] may charge a reasonable
administrative fee to a state agency, political subdivision of this
state, or governmental entity of another state that purchases
commodity items through the comptroller [department] in an amount
that is sufficient to recover costs associated with the
administration of this section. The comptroller shall develop a
clear procedure for calculating the fee under this subsection,
including procedures for review and approval of the fee.
(e) The comptroller [department] shall compile and maintain
a list of commodity items available for purchase through the
comptroller [department] that have a lower price than the prices
for commodity items otherwise available to state agencies under
this chapter. The comptroller [department] shall make the list
available on the comptroller's website [world wide web or on a
suitable successor to the world wide web if the technological
developments involving the Internet make it advisable to do so].
(f) The comptroller [department] may adopt rules regulating
a purchase by a state agency of a commodity item under this section,
including a requirement that, notwithstanding other provisions of
this chapter, the agency must make the purchase in accordance with a
contract developed by the comptroller [department] unless the
agency obtains:
(1) an exemption from the comptroller [department]; or
(2) express prior approval from the Legislative Budget
Board for the expenditure necessary for the purchase.
(g) The Legislative Budget Board's approval of a biennial
operating plan under Section 2054.102 is not an express prior
approval for purposes of Subsection (f)(2). A state agency must
request an exemption from the comptroller [department] under
Subsection (f)(1) before seeking prior approval from the
Legislative Budget Board under Subsection (f)(2).
(h) The comptroller [department] shall, in cooperation with
state agencies, establish guidelines for the classification of
commodity items under this section. The comptroller [department]
may determine when a statewide vendor solicitation for a commodity
item will reduce purchase prices for a state agency.
(i) Unless the agency has express statutory authority to
employ a best value purchasing method other than a purchasing
method designated by the comptroller [commission] under Section
2157.006(a)(2), a state agency shall use a purchasing method
provided by Section 2157.006(a) when purchasing a commodity item
if:
(1) the agency has obtained an exemption from the
comptroller [department] or approval from the Legislative Budget
Board under Subsection (f); or
(2) the agency is otherwise exempt from this section.
SECTION 25. Subchapter B, Chapter 2157, Government Code, is
amended by adding Section 2157.0685 to read as follows:
Sec. 2157.0685. REPORTING OF ADMINISTRATIVE FEES FOR
COMMODITY ITEMS. (a) The comptroller shall report to the
Legislative Budget Board any administrative fee the comptroller
sets under Section 2157.068 for each fiscal year. The report must
include the underlying analysis and methodology used to determine
the fee amounts.
(b) The comptroller shall post on the comptroller's website
information about the fee, including a description of how the fee is
determined. The comptroller must update this information when a
contract amendment or other action results in a major change to the
costs incurred or the price paid by the comptroller or a customer of
the comptroller.
SECTION 26. Subchapter B, Chapter 2157, Government Code, is
amended by adding Section 2157.069 to read as follows:
Sec. 2157.069. CLEARING FUND ACCOUNT. The comptroller
shall establish in the state treasury the clearing fund account.
The account is a revolving fund account for the administration of
Section 2157.068. The account is the depository for all money
received from entities served under that section. Money in the
account may be used only to administer that section or for any other
purpose specified by the legislature.
SECTION 27. Section 2157.121, Government Code, is amended
to read as follows:
Sec. 2157.121. ACQUISITION THROUGH COMPETITIVE SEALED
PROPOSALS. (a) The comptroller [commission] or other state agency
may acquire a telecommunications device, system, or service or an
automated information system by using competitive sealed proposals
if the comptroller [commission] determines that competitive sealed
bidding and informal competitive bidding are not practical or are
disadvantageous to the state.
(b) A state agency, other than the department under
Subsection (c), shall send its proposal specifications and criteria
to the comptroller [commission] for approval or request the
comptroller [commission] to develop the proposal specifications
and criteria.
(c) The department may acquire a telecommunications device,
system, or service [or an automated information system] by using
competitive sealed proposals without regard to whether the
comptroller [commission] makes the determination required under
Subsection (a) for other state agencies. This subsection applies
only to an acquisition under Subchapter H, Chapter 2054, or under
Chapter 2170.
SECTION 28. Section 2157.181(a), Government Code, is
amended to read as follows:
(a) The comptroller [commission, with the concurrence of
the department,] may negotiate with vendors preapproved terms and
conditions to be included in contracts relating to the purchase or
lease of [a telecommunication device, system, or service or] an
automated information system awarded to a vendor by a state agency.
SECTION 29. Section 2157.182, Government Code, is amended
to read as follows:
Sec. 2157.182. VALIDITY OF PREAPPROVED TERMS AND
CONDITIONS; RENEGOTIATION. (a) Preapproved terms and conditions
to which a vendor[, the commission,] and the comptroller
[department] agree are valid for two years after the date of the
agreement and must provide that the terms and conditions are to be
renegotiated before the end of the two years.
(b) The comptroller [commission and the department jointly]
shall establish procedures to ensure that terms and conditions are
renegotiated before they expire in a contract between the vendor
and a state agency.
SECTION 30. Section 2157.184, Government Code, is amended
to read as follows:
Sec. 2157.184. NOTIFICATION OF STATE AGENCIES AND VENDORS.
The comptroller [commission and the department jointly] shall
establish procedures to notify state agencies and potential vendors
of the provisions of this subchapter regarding preapproved terms
and conditions.
SECTION 31. Sections 2054.024(c), 2155.501(1),
2155.502(e), 2157.0611, and 2157.181(b), Government Code, are
repealed.
SECTION 32. (a) Not later than September 1, 2011, the
governor shall appoint the initial members of the governing board
of the Department of Information Resources under Section 2054.021,
Government Code, as amended by this Act. The governor shall
appoint:
(1) two members whose terms expire February 1, 2013;
(2) two members whose terms expire February 1, 2015;
and
(3) three members whose terms expire February 1, 2017.
(b) The terms of the current members of the board expire
September 1, 2011.
SECTION 33. (a) Not later than September 1, 2011, the
first group of ex officio members shall begin serving or be
appointed under Section 2054.021(c), Government Code, as amended by
this Act.
(b) The governor shall appoint to the first group an ex
officio member from a state agency with 100 or fewer employees under
Section 2054.021(c), Government Code, as amended by this Act. When
that member is appointed, the term of the executive director of the
Texas Department of Transportation expires.
(c) The commissioner of insurance and the executive
commissioner of the Health and Human Services Commission shall
continue to serve in the first group under Section 2054.021(c),
Government Code, as amended by this Act, until February 1, 2013.
SECTION 34. (a) In this section, "department" means the
Department of Information Resources.
(b) On the effective date of this Act, the powers and duties
of the department under Section 2157.068, Government Code, or other
law relating to information and communications technology
cooperative contracts are transferred to the comptroller.
(c) The department shall work in cooperation with and at the
direction of the comptroller to facilitate the transfer described
by this section.
(d) A rule, form, policy, procedure, or decision of the
department that is related to a power or duty transferred under
Subsection (b) of this section continues in effect as a rule, form,
policy, procedure, or decision of the comptroller until superseded
by an act of the comptroller.
(e) A court case, administrative proceeding, contract
negotiation, or other proceeding involving the department that is
related to a power or duty transferred under Subsection (b) of this
section is transferred without change in status to the comptroller,
and the comptroller assumes, without a change in status, the
position of the department in a negotiation or proceeding relating
to a power or duty transferred under Subsection (b) of this section
to which the department is a party.
(f) All department employees who primarily perform duties
related to a power or duty transferred under Subsection (b) of this
section, including employees who provide administrative support
for those powers or duties, are transferred to the office of the
comptroller. A management employee of the department who is
transferred to the office of the comptroller under this section
does not automatically continue to hold the person's management
position. To hold the management position on other than an interim
basis, the person must apply for the position with the comptroller.
(g) All personal property, including records, in the
custody of the department related to a power or duty transferred
under Subsection (b) of this section is transferred to and becomes
the property of the comptroller.
(h) All contracts, memoranda of understanding, leases, and
rights of the department related to a power or duty transferred
under Subsection (b) of this section are transferred to the
comptroller.
(i) All money appropriated by the legislature to the
department related to a power or duty transferred under Subsection
(b) of this section, including money for providing administrative
support, is transferred to the comptroller.
SECTION 35. The comptroller may not terminate a contract
entered into by the Department of Information Resources that is
transferred to the comptroller under this Act.
SECTION 36. Sections 2054.502 and 2054.533, Government
Code, as added by this Act, apply only to a contract for which a
solicitation of bids or proposals or similar expressions of
interest is published on or after September 1, 2011. A contract for
which a solicitation of bids or proposals or similar expressions of
interest is published before September 1, 2011, is governed by the
law in effect on the date the state agency first publishes the
solicitation of bids or proposals or similar expressions of
interest, and the former law is continued in effect for that
purpose.
SECTION 37. This Act takes effect September 1, 2011.