By: Zaffirini S.B. No. 1681
(In the Senate - Filed March 8, 2013; March 25, 2013, read
first time and referred to Committee on Government Organization;
April 4, 2013, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 7, Nays 0; April 4, 2013,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1681 By: Garcia
A BILL TO BE ENTITLED
AN ACT
relating to oversight and management of state contracts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 2262, Government Code, is
amended by adding Sections 2262.0015 and 2262.005 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, 2013.
Sec. 2262.005. CONSULTATION WITH STATE AGENCIES. The
comptroller shall consult with state agencies in developing forms,
contract terms, and criteria required under this chapter.
SECTION 2. The heading to Section 2262.053, Government
Code, is amended to read as follows:
Sec. 2262.053. TRAINING FOR CONTRACT MANAGERS.
SECTION 3. Section 2262.053, Government Code, is amended by
amending Subsections (a) and (d) and adding Subsections (e) and (f)
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 [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.
(f) A state agency may develop qualified contract manager
training to supplement the training required under this section.
The comptroller may incorporate the training developed by the
agency into the training program under this section.
SECTION 4. Subchapter B, Chapter 2262, Government Code, is
amended by adding Sections 2262.0535 and 2262.055 to read as
follows:
Sec. 2262.0535. TRAINING FOR GOVERNING BODIES. (a) The
comptroller shall adapt the program developed under Section
2262.053 to provide 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 provided under
this section. This subsection does not apply to a state agency that
does not enter into any contracts.
Sec. 2262.055. VENDOR PERFORMANCE TRACKING SYSTEM. (a)
The comptroller shall evaluate the vendor's performance based on
information reported by state agencies and criteria established by
the comptroller.
(b) The comptroller shall establish an evaluation process
that allows vendors who receive an unfavorable performance review
to protest any classification given by the comptroller.
(c) The comptroller shall include the performance reviews
in a vendor performance tracking system.
SECTION 5. 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 and making recommendations on the
solicitation documents and final contract documents for [of major]
contracts of [by] state agencies that have a value of at least $10
million but not more than $100 million;
(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;
(4) providing recommendations and assistance to state
agency personnel throughout the contract management process;
(5) coordinating and consulting with the quality
assurance team established under Section 2054.158 on all contracts
relating to a major information resources project; and
(6) reviewing, making recommendations, and approving
contracts under Section 2262.104.
(b) The comptroller shall oversee the activities of the
team, including ensuring that the team carries out its duties under
Subsection (a)(5).
(c) A state agency shall:
(1) comply with a recommendation made under Subsection
(a)(1); or
(2) submit a written explanation regarding why the
recommendation is not applicable to the contract under review.
(d) The team may review documents under Subsection (a)(1)
only for compliance with contract management and best practices
principles and may not make a recommendation regarding the purpose
or subject of the contract.
SECTION 6. Section 2262.102, Government Code, is amended by
amending Subsection (a) and adding Subsection (c) 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 a small state agency.
(c) In this section, "small state agency" means a state
agency with fewer than 100 employees.
SECTION 7. Subchapter C, Chapter 2262, Government Code, is
amended by adding Section 2262.104 to read as follows:
Sec. 2262.104. REVIEW AND APPROVAL. Each state agency
shall receive recommendations and approval from the team before
taking the following actions in relation to a contract that has a
value of more than $100 million:
(1) publicly releasing solicitation documents; and
(2) executing a final contract.
SECTION 8. Chapter 2262, Government Code, is amended by
adding Subchapter D to read as follows:
SUBCHAPTER D. CONTRACT FORMS AND PROVISIONS
Sec. 2262.151. CONTRACT TERMS RELATING TO NONCOMPLIANCE.
(a) The comptroller shall develop recommendations for contract
terms regarding remedies for noncompliance by contractors,
including remedies for noncompliance with any required disclosure
of conflicts of interest by contractors. The comptroller 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. 2262.152. UNIFORM FORMS. The comptroller shall
develop and make available a uniform and automated set of forms that
a state agency may use in the different stages of the contracting
process.
Sec. 2262.153. FORMS FOR REPORTING CONTRACTOR PERFORMANCE.
As part of the uniform forms published under Section 2262.152, the
comptroller shall develop forms for use by state agencies in
reporting a contractor's performance for use in the vendor
performance tracking system under Section 2262.055.
SECTION 9. Section 2262.003, Government Code, is
transferred to Subchapter D, Chapter 2262, Government Code, as
added by this Act, redesignated as Section 2262.154, Government
Code, and amended to read as follows:
Sec. 2262.154 [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 10. Subsection (f), Section 2262.051, Government
Code, is repealed.
SECTION 11. Not later than May 1, 2014, the comptroller of
public accounts shall develop the training program required by
Section 2262.053, Government Code, as amended by this Act, and
Section 2262.0535, Government Code, as added by this Act.
SECTION 12. A member of a governing body of a state agency
is not required to complete the training provided under Section
2262.0535, Government Code, as added by this Act, until September
1, 2015.
SECTION 13. The comptroller of public accounts shall use
the vendor performance tracking system established by the
comptroller before the effective date of this Act in carrying out
the comptroller's duties under Section 2262.055, Government Code,
as added by this Act.
SECTION 14. A contract manager is not required to be
certified under Chapter 2262, Government Code, as amended by this
Act, until September 1, 2015.
SECTION 15. As soon as practicable, and not later than May
1, 2014, the comptroller of public accounts and Contract Advisory
Team shall develop the forms and recommendations required by this
Act, including Sections 2262.151, 2262.152, and 2262.153,
Government Code, as added by this Act.
SECTION 16. This Act takes effect November 1, 2013.
* * * * *