84R6609 YDB-D
By: Price H.B. No. 1027
A BILL TO BE ENTITLED
AN ACT
relating to state agency contracting.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 2155.078(a) and (b), Government Code,
are amended to read as follows:
(a) The commission shall establish and administer a system
of training, continuing education, and certification for state
agency purchasing personnel. The training and continuing education
for state agency purchasing personnel must include ethics training.
The commission may establish and offer appropriate training to
vendors on a cost recovery basis. The commission may adopt rules to
administer this section, including rules relating to monitoring a
certified purchaser's compliance with the continuing education
requirements of this section.
(b) Notwithstanding [Except as provided by] Subsection (n),
all state agency purchasing personnel, including agencies exempted
from the purchasing authority of the commission, must receive the
training and continuing education to the extent required by rule of
the commission. The training and continuing education must include
ethics training. A state agency employee who is required to receive
the training may not participate in purchases by the employing
agency unless the employee has received the required training or
received equivalent training from a national association
recognized by the commission. The equivalent training may count,
as provided by Subsection (k), toward the continuing education
requirements.
SECTION 2. Chapter 2261, Government Code, is amended by
adding Subchapter F to read as follows:
SUBCHAPTER F. ETHICS, REPORTING, AND APPROVAL REQUIREMENTS FOR
CERTAIN CONTRACTS
Sec. 2261.251. APPLICABILITY OF SUBCHAPTER. Section
2261.001 does not apply to this subchapter.
Sec. 2261.252. DISCLOSURE OF POTENTIAL CONFLICTS OF
INTEREST; CERTAIN CONTRACTS PROHIBITED. (a) Each state agency
employee or official who is involved in procurement or in contract
management for a state agency shall disclose to the agency any
potential conflict of interest specified by state law or agency
policy that is known by the employee or official with respect to any
contract or bid for the purchase of goods or services by the agency.
(b) A state agency may not enter into a contract for the
purchase of goods or services with a person with whom any of the
following agency employees or officials have a financial interest:
(1) a member of the agency's governing body;
(2) the governing official, executive director,
general counsel, chief procurement officer, or procurement
director of the agency; or
(3) a family member related to an employee or official
described by Subdivision (1) or (2) within the second degree by
affinity or consanguinity.
(c) A state agency employee or official has a financial
interest in a person if the employee or official:
(1) owns or controls, directly or indirectly, an
ownership interest in the person, including the right to share in
profits, proceeds, or capital gains; or
(2) could reasonably foresee that a contract with the
person could result in a financial benefit to the employee or
official.
Sec. 2261.253. REQUIRED POSTING OF CERTAIN CONTRACTS;
ENHANCED CONTRACT AND PERFORMANCE MONITORING. (a) For each
contract for the purchase of goods or services, each state agency
shall post on its Internet website a list of:
(1) each contract the agency enters into without
inviting, advertising for, or otherwise requiring competitive
bidding before selection of the contractor; and
(2) the statutory or other authority under which the
contract described by Subdivision (1) may be entered into without
compliance with competitive bidding procedures.
(b) Each state agency by rule shall establish a procedure to
identify each contract that requires enhanced contract or
performance monitoring and submit information on the contract to
the agency's governing body or, if the agency is not governed by a
multimember governing body, the officer who governs the agency.
The agency's contract management office or procurement director
shall immediately notify the agency's governing body or governing
official, as appropriate, of any serious issue or risk that is
identified with respect to a contract monitored under this
subsection.
Sec. 2261.254. CONTRACTS WITH VALUE EXCEEDING $1 MILLION.
(a) For each contract for the purchase of goods or services that
has a value exceeding $1 million, a state agency shall develop and
implement contract reporting requirements that provide information
on:
(1) compliance with financial provisions and delivery
schedules under the contract;
(2) corrective action plans required under the
contract and the status of any active corrective action plan; and
(3) any liquidated damages assessed or collected under
the contract.
(b) Each state agency shall verify:
(1) the accuracy of any information reported under
Subsection (a) that is based on information provided by a
contractor; and
(2) the delivery time of goods or services scheduled
for delivery under the contract.
(c) Except as provided by Subsection (d), a state agency may
enter into a contract for the purchase of goods or services that has
a value exceeding $1 million only if:
(1) the governing body of the state agency approves
the contract and the approved contract is signed by the presiding
officer of the governing body; or
(2) for a state agency that is not governed by a
multimember governing body, the officer who governs the agency
approves and signs the contract.
(d) The governing body or governing official of a state
agency, as appropriate, may delegate to the executive director of
the agency the approval and signature authority under Subsection
(c).
Sec. 2261.255. CONTRACTS WITH VALUE EXCEEDING $5 MILLION.
For each state agency contract for the purchase of goods or services
that has a value exceeding $5 million, the contract management
office or procurement director of the agency must:
(1) verify in writing that the solicitation and
purchasing methods and contractor selection process comply with
state law and agency policy; and
(2) submit to the governing body of the agency, or
governing official of the agency if the agency is not governed by a
multimember governing body, information on any potential issue that
may arise in the solicitation, purchasing, or contractor selection
process.
Sec. 2261.256. RISK ANALYSIS PROCEDURE; CONTRACT
MANAGEMENT HANDBOOK; CONTRACT MANAGEMENT DATABASE. (a) Each state
agency shall develop and comply with a risk analysis procedure. The
procedure must provide for:
(1) assessing the risk of fraud, abuse, or waste in the
contractor selection process, contract provisions, and payment and
reimbursement rates and methods for the different types of goods
and services for which the agency contracts; and
(2) identifying contracts that require enhanced
contract monitoring.
(b) Each state agency shall publish a contract management
handbook that establishes consistent contracting policies and
practices to be followed by the agency. The handbook may include
standard contract provisions and formats for the agency to
incorporate in contracts.
(c) Each state agency shall establish a central contract
management database that identifies each contract made with the
agency.
SECTION 3. The changes in law made by this Act apply only to
a contract entered into on or after the effective date of this Act.
A contract entered into before that date is governed by the law in
effect immediately before the effective date of this Act, and the
former law is continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2015.