Texas 2011 - 82nd Regular

Texas Senate Bill SB68 Latest Draft

Bill / Introduced Version

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                            82R1294 MTB-F
 By: Zaffirini S.B. No. 68


 A BILL TO BE ENTITLED
 AN ACT
 relating to contracting issues of state agencies, including ethics
 issues related to state contracting.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Section 322.020, Government Code, is amended by
 amending Subsections (b), (c), and (e) and adding Subsection (g) to
 read as follows:
 (b)  Each state agency shall provide the Legislative Budget
 Board:
 (1)  copies of the following documents:
 (A) [(1)]  each major contract entered into by the
 agency; and
 (B) [(2)]  each request for proposal, invitation
 to bid, or comparable solicitation related to the major contract;
 and
 (2)  information regarding each major contract entered
 into by the agency, including:
 (A)  the name of the contractor;
 (B)  the contract value;
 (C)  the beginning date and end date of the
 contract;
 (D)  a description of any amendments made to the
 contract, including the costs of those amendments;
 (E)  cumulative payments and encumbrances under
 the contract;
 (F)  any anticipated cost savings to the state
 under the contract and a timeline for achieving those savings;
 (G)  key contract terms that are out of compliance
 in terms of timeliness standards, deliverables, and failure to meet
 performance measures; and
 (H)  any other information that the board, in
 consultation with the Contract Advisory Team and the state office
 of contract management, considers necessary.
 (c)  The Legislative Budget Board shall post on the Internet:
 (1)  each major contract of a state agency; [and]
 (2)  each request for proposal, invitation to bid, or
 comparable solicitation related to the major contract; and
 (3)  information provided to the board under Subsection
 (b)(2) regarding a major contract.
 (e)  The Legislative Budget Board shall make the information
 searchable by contract value, state agency, [and] vendor, and date,
 including both the beginning date and the end date of the contract.
 The Legislative Budget Board may make the information searchable by
 other subjects as appropriate.
 (g)  The Legislative Budget Board, in consultation with the
 Contract Advisory Team and the state office of contract management,
 shall set appropriate criteria to determine when and what
 information should be updated.
 SECTION 2.  Section 2113.102(a), Government Code, is amended
 to read as follows:
 (a)  A state agency may not use appropriated money to
 contract with a person to audit [the financial records or accounts
 of] the agency except:
 (1)  as provided by[:
 [(1)]  Subsections (b), (c), and (d); and
 (2)  in accordance with Section 321.020 [Chapter 466,
 pertaining to the state lottery;
 [(3)  Chapter 2306, pertaining to the Texas Department
 of Housing and Community Affairs; and
 [(4)  Chapter 361, Transportation Code, pertaining to
 the Texas Turnpike Authority division of the Texas Department of
 Transportation].
 SECTION 3.  Section 2162.103(a), Government Code, is amended
 to read as follows:
 (a)  In comparing the cost of providing a service, the
 council shall consider the:
 (1)  cost of supervising the work of a private
 contractor; [and]
 (2)  cost of a state agency's performance of the
 service, including:
 (A)  the costs of the comptroller, attorney
 general, and other support agencies; and
 (B)  other indirect costs related to the agency's
 performance of the service;
 (3)  installation costs and any other initial costs
 associated with a contract with a private contractor;
 (4)  other costs associated with the transition to
 using a private contractor's goods or services; and
 (5)  cost savings to the state if a private contractor
 were awarded the contract.
 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.  Subchapter A, Chapter 2262, Government Code, is
 amended by adding Section 2262.0015 to read as follows:
 Sec. 2262.0015.  APPLICABILITY TO CERTAIN CONTRACTS. (a)
 The comptroller by rule shall establish threshold requirements that
 exclude small or routine contracts, including purchase orders, from
 the application of this chapter.
 (b)  This chapter does not apply to an enrollment contract
 described by 1 T.A.C. Section 391.183 as that section existed on
 November 1, 2007.
 SECTION 6.  The heading to Section 2262.053, Government
 Code, is amended to read as follows:
 Sec. 2262.053.  TRAINING FOR CONTRACT MANAGERS.
 SECTION 7.  Section 2262.053, Government Code, is amended by
 amending Subsections (a) 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.
 (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 8.  Subchapter B, Chapter 2262, Government Code, is
 amended by adding Section 2262.0535 and Sections 2262.055 through
 2262.066 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 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.
 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.  STATE AGENCY REPOSITORY. Each state agency
 shall maintain in a central location all contracts for that agency.
 Sec. 2262.057.  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, governor, lieutenant governor, and speaker of the
 house of representatives on the results of the review regarding the
 contractor's performance under the contract.
 Sec. 2262.058.  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
 2262.057 and criteria established by the comptroller.
 (c)  The comptroller shall establish an evaluation process
 that allows vendors who receive an unfavorable performance review
 to protest any classification given by the comptroller.
 (d)  The comptroller shall develop a database that
 incorporates the performance reviews and aggregates the reviews for
 each contractor.
 (e)  A state agency may use the performance review database
 to determine whether to award a contract to a contractor reviewed in
 the database.
 (f)  The comptroller shall make the performance review
 database accessible to the public on the comptroller's Internet
 website.
 Sec. 2262.059.  EXCLUDING CONTRACTOR FROM SOLICITATION
 PROCESS. Based on its own contractor performance reviews and on
 information in the database developed under Section 2262.058, 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. 2262.060.  PERFORMANCE MEASURES; REPORTS. (a) Each
 state agency shall develop a plan for incorporating performance
 measures into all contracts entered into by the agency. This
 includes ensuring that performance measures are written into each
 contract prior to execution.
 (b)  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.
 (c)  The state agency shall make the report accessible to the
 public on the agency's website.
 Sec. 2262.061.  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.
 Sec. 2262.062.  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 a monetary threshold above which agency contracts and
 amendments to or extensions of agency contracts require written
 authorization by the agency executive director.
 (c)  For state agency contracts valued in excess of $1
 million the agency executive director must authorize a contract
 amendment in writing.
 (d)  Each state agency shall annually report to the
 comptroller a list of each person authorized to approve contracts
 at the agency. The list must include the person's name, position,
 and supervisory responsibility, if any.
 Sec. 2262.063.  NEGOTIATION OF CONTRACT BY SINGLE EMPLOYEE
 PROHIBITED. A state agency may not negotiate a contract with only
 one employee engaging in the negotiation.
 Sec. 2262.064.  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, or that would lead to the
 loss of 100 or more existing state employee positions, 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 this state 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 under Section
 2262.066 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. 2262.065.  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, or would lead to the loss of 100 or more
 existing state employee positions, 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
 standards and policies contained in the Office of Federal
 Procurement Policy, Policy Letter 92-1, or comparable 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. 2262.066.  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 of $10
 million or more, or that would lead to the loss of 100 or more
 existing state employee positions, 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), a 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)  Before executing a final contract, 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, state office of
 contract management, and standing committees of the legislature
 that have primary jurisdiction over the agency, over state
 appropriations, and over state purchasing.
 SECTION 9.  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]
 (2) [(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
 (3)  certifying that state agencies have complied with
 Sections 2262.064 and 2262.066.
 (b)  The team shall consult with state agencies in developing
 forms, contract terms, guidelines, and criteria required under this
 chapter.
 SECTION 10.  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)  one member from the comptroller's office;
 (3)  one member from the Department of Information
 Resources;
 (4)  [one member from the Texas Building and
 Procurement Commission; and
 [(5)]  one member from the governor's office; and
 (5)  one member from the State Council on Competitive
 Government.
 SECTION 11.  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
 shall develop and publish a uniform set of definitions for use as
 applicable in state contracts.
 (b)  The team shall develop and publish a uniform and
 automated set of forms that a state agency may 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 2262.057.
 SECTION 12.  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 may 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) 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.
 (b)  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.  REQUIRED CONTRACTOR DISCLOSURE STATEMENT;
 STATE AGENCY EMPLOYEES. Before entering into a contract with the
 state, a contractor and subcontractor shall disclose each employee:
 (1)  who was employed by:
 (A)  the state at any time during the two years
 before the date of the disclosure and is now employed by the
 contractor or subcontractor; or
 (B)  the contractor or subcontractor at any time
 during the year before the date of the disclosure and is now
 employed by the state; and
 (2)  who is materially involved in the development of
 the contract terms or the management of the contract.
 Sec. 2262.155.  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
 as provided by Subsection (d), 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 state agency that decides not to solicit a new
 contract under circumstances in which the agency is authorized to
 do so under a contract provision required by Subsection (b) shall
 report this decision to:
 (1)  the governor;
 (2)  the lieutenant governor;
 (3)  the speaker of the house of representatives; and
 (4)  the team.
 (d)  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.
 Sec. 2262.156.  HIRING PREFERENCE PROVISION FOR CERTAIN
 LARGE CONTRACTS. 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, or that would lead to the
 loss of 100 or more existing state employee positions, the contract
 or contract amendment must contain a provision that requires the
 contractor to give preference in hiring to former employees of a
 state agency:
 (1)  whose employment is terminated because of the
 contract or contract extension or amendment;
 (2)  who satisfy the contactor's hiring criteria for
 that position; and
 (3)  whose salary requirements are competitive with
 market rates for positions with equivalent skills and experience.
 SUBCHAPTER E. ETHICS; CONFLICT OF INTEREST
 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 AND 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.
 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 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 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.  LARGE CHANGE IN CONTRACT VALUE. (a) If a
 proposed contract amendment or extension changes the monetary value
 of a contract by $1 million or more, the state agency must obtain
 review and approval from the team and the agency's executive
 director before the agency amends or extends the contract.
 (b)  This section does not apply to a proposed contract
 amendment required by a state or federal statute.
 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. STATE OFFICE OF CONTRACT MANAGEMENT
 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;
 (B)  has a value of less than $10 million, but has
 high-risk factors as identified by the office; or
 (C)  would outsource existing services or
 functions performed by the agency that have a value of at least $10
 million or would lead to a loss of at least 100 existing state
 employee positions.
 (2)  "Major information resources project" has the
 meaning assigned by Section 2054.003.
 (3)  "Office" means the state office of contract
 management.
 (4)  "Quality assurance team" means the quality
 assurance team established under Section 2054.158.
 (5)  "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. The
 comptroller shall establish a state 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 state
 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) Each state
 agency must receive approval from the office 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 office shall review related documentation,
 including, for a contract that would outsource existing services or
 functions performed by the agency that have a value of at least $10
 million or would lead to the loss of at least 100 existing state
 employee positions, the optimized model developed under Section
 2262.064 and the cost comparison conducted under Section 2262.066,
 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, the office 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.
 SECTION 13.  Section 2262.003, Government Code, is
 transferred to Subchapter D, Chapter 2262, Government Code, as
 added by this Act, is redesignated as Section 2262.157, Government
 Code, and is amended to read as follows:
 Sec. 2262.157 [2262.003].  REQUIRED [CONTRACT] PROVISION
 RELATING TO AUDITING. (a) Each state agency shall include in each
 of its contracts a term that provides that:
 (1)  the state auditor may conduct an audit or
 investigation of any entity receiving funds from the state directly
 under the contract or indirectly through a subcontract under the
 contract;
 (2)  acceptance of funds directly under the contract or
 indirectly through a subcontract under the contract acts as
 acceptance of the authority of the state auditor, under the
 direction of the legislative audit committee, to conduct an audit
 or investigation in connection with those funds; and
 (3)  under the direction of the legislative audit
 committee, an entity that is the subject of an audit or
 investigation by the state auditor must provide the state auditor
 with access to any information the state auditor considers relevant
 to the investigation or audit.
 (b)  The state auditor shall provide assistance to a state
 agency in developing the contract provisions.
 SECTION 14.  Section 2262.051(f), Government Code, is
 repealed.
 SECTION 15.  (a) Sections 2262.063 through 2262.066 and
 2262.154, 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 16.  Not later than May 1, 2012, 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 17.  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, 2013.
 SECTION 18.  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, 2013.
 SECTION 19.  A contract manager is not required to be
 certified under Chapter 2262, Government Code, as amended by this
 Act, until September 1, 2013.
 SECTION 20.  (a) As soon as practicable, and not later than
 May 1, 2012, 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
 2262.056 through 2262.062 and Sections 2262.153, 2262.155, and
 2262.156, Government Code, as added by this Act, until September 1,
 2013. A state agency may comply earlier if the forms, electronic
 requirements, database, or other items are available before that
 date.
 SECTION 21.  This Act takes effect November 1, 2011.