| 1 | 1 | | 84R11796 MTB-D |
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| 2 | 2 | | By: Elkins H.B. No. 2973 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the establishment of the contract management division |
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| 8 | 8 | | of the Legislative Budget Board. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 2262, Government Code, is amended by |
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| 11 | 11 | | adding Subchapter E to read as follows: |
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| 12 | 12 | | SUBCHAPTER E. CONTRACT MANAGEMENT DIVISION |
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| 13 | 13 | | Sec. 2262.201. DEFINITION. In this subchapter, "division" |
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| 14 | 14 | | means the contract management division established by the |
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| 15 | 15 | | Legislative Budget Board under this subchapter. |
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| 16 | 16 | | Sec. 2262.202. ESTABLISHMENT; GENERAL DUTIES. (a) The |
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| 17 | 17 | | Legislative Budget Board shall establish a contract management |
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| 18 | 18 | | division to: |
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| 19 | 19 | | (1) provide recommendations and assistance to state |
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| 20 | 20 | | agency personnel throughout the contract management process; and |
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| 21 | 21 | | (2) review all contracts that have a value of at least |
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| 22 | 22 | | $5 million and identify certain contracts that are experiencing |
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| 23 | 23 | | cost overruns or performance failure or are otherwise demonstrating |
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| 24 | 24 | | poor management. |
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| 25 | 25 | | (b) For contracts identified under Subsection (a)(2), the |
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| 26 | 26 | | division shall: |
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| 27 | 27 | | (1) contact the state agency that executed the |
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| 28 | 28 | | contract to report on the issues identified by the division; and |
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| 29 | 29 | | (2) develop with the state agency a plan to address the |
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| 30 | 30 | | contract issues. |
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| 31 | 31 | | (c) The division shall notify the Legislative Budget Board |
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| 32 | 32 | | as soon as practicable if: |
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| 33 | 33 | | (1) the division is unable to develop a plan under |
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| 34 | 34 | | Subsection (b)(2) with a state agency; or |
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| 35 | 35 | | (2) a state agency fails to implement a plan developed |
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| 36 | 36 | | under Subsection (b)(2). |
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| 37 | 37 | | (d) If, after consultation with the division, the |
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| 38 | 38 | | Legislative Budget Board determines that further action is |
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| 39 | 39 | | necessary to prevent loss to the state from a contract for which a |
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| 40 | 40 | | plan was not developed or implemented as described by Subsection |
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| 41 | 41 | | (c)(1) or (2), the division shall: |
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| 42 | 42 | | (1) provide written notice to the governor of the risk |
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| 43 | 43 | | of loss to the state from the contract along with contract |
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| 44 | 44 | | documentation; and |
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| 45 | 45 | | (2) send a copy of the notice to the state agency that |
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| 46 | 46 | | executed the contract. |
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| 47 | 47 | | (e) The governor's office shall review the contract |
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| 48 | 48 | | documentation and consult with the division before making a |
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| 49 | 49 | | determination on whether to contact the governing body of the state |
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| 50 | 50 | | agency or the single state officer who governs the state agency to |
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| 51 | 51 | | work together to prevent loss to the state from the contract. |
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| 52 | 52 | | (f) A state agency shall provide the division any |
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| 53 | 53 | | information necessary for the division to perform the division's |
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| 54 | 54 | | duties under this section. |
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| 55 | 55 | | Sec. 2262.203. RULES. The Legislative Budget Board may |
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| 56 | 56 | | adopt rules to implement this subchapter. |
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| 57 | 57 | | SECTION 2. Subchapter E, Chapter 2262, Government Code, as |
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| 58 | 58 | | added by this Act, applies only to a contract for which a state |
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| 59 | 59 | | agency first advertises or otherwise solicits bids, proposals, |
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| 60 | 60 | | offers, or qualifications on or after the effective date of this |
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| 61 | 61 | | Act. |
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| 62 | 62 | | SECTION 3. This Act takes effect September 1, 2015. |
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