Texas 2015 - 84th Regular

Texas Senate Bill SB1053 Compare Versions

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1	1	By: Zaffirini S.B. No. 1053
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the management of state contracts, including the
7	7	establishment of the contract management division of the
8	8	Legislative Budget Board.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 2262.002(a), Government Code, is amended
11	11	to read as follows:
12	12	(a) Except as provided by Section 2262.206, this [This]
13	13	chapter does not apply to an institution of higher education as
14	14	defined by Section 61.003, Education Code.
15	15	SECTION 2. Chapter 2262, Government Code, is amended by
16	16	adding Subchapter E to read as follows:
17	17	SUBCHAPTER E. CONTRACT MANAGEMENT DIVISION
18	18	Sec. 2262.201. DEFINITIONS. In this subchapter:
19	19	(1) "Division" means the contract management division
20	20	established by the Legislative Budget Board under this subchapter.
21	21	(2) "Major information resources project" has the
22	22	meaning assigned by Section 2054.003(10).
23	23	(3) "Quality assurance team" means the quality
24	24	assurance team established under Section 2054.158.
25	25	(4) "Contract Advisory Team" means the contract
26	26	advisory team established under Section 2262.101.
27	27	(5) "Contract" means an original contract or grant; a
28	28	contract or grant amendment; a contract or grant extension; a
29	29	purchase order; an interagency grant or agreement; or an interlocal
30	30	agreement.
31	31	(6) "High-risk contract" means a state agency contract
32	32	that:
33	33	(A) has a value of at least $10 million;
34	34	(B) has a value of less than $10 million, but has
35	35	high-risk factors as identified by the division;
36	36	(C) is entered into with an entity that is
37	37	incorporated outside of the United States;
38	38	(D) is entered into with an entity that, during
39	39	the five-year period preceding the date of the award of the
40	40	contract, has had a contract with a state agency or federal
41	41	governmental entity terminated or canceled for:
42	42	(i) a violation of, or noncompliance with,
43	43	the terms of the contract;
44	44	(ii) delivery of an ineffective product,
45	45	service, or system;
46	46	(iii) significant delays or cost overruns;
47	47	(iv) fraud;
48	48	(v) misconduct; or
49	49	(vi) any other event that resulted in the
50	50	termination or cancellation of the contract for cause; or
51	51	(E) is entered into with an entity that, at any
52	52	time during the five-year period preceding the date of the award of
53	53	the contract, has had a monetary judgment entered against the
54	54	entity as a result of litigation initiated by the state, a state
55	55	official, or a state agency.
56	56	Sec. 2262.202. ESTABLISHMENT; GENERAL DUTIES. The
57	57	Legislative Budget Board shall establish a contract management
58	58	division to:
59	59	(1) develop criteria for identifying high-risk
60	60	factors in contracts;
61	61	(2) define the information that must be included in
62	62	the required report and notice;
63	63	(3) coordinate and consult with the Contract Advisory
64	64	Team on all high-risk contracts; and
65	65	(4) coordinate and consult with the quality assurance
66	66	team on all high-risk contracts relating to a major information
67	67	resources project.
68	68	Sec. 2262.203. REVIEW AND REPORTING. (a) The division
69	69	shall:
70	70	(1) review high-risk contracts and identify certain
71	71	high-risk contracts for further monitoring and reporting; and
72	72	(2) report annually on the status of high-risk
73	73	contracts to the:
74	74	(A) governor;
75	75	(B) lieutenant governor;
76	76	(C) speaker of the house of representatives;
77	77	(D) presiding officer of the committee in the
78	78	house of representatives with primary responsibility for
79	79	appropriations; and
80	80	(E) presiding officer of the committee in the
81	81	senate with primary responsibility for appropriations.
82	82	(b) For contracts identified under Subsection (a)(1), the
83	83	division shall require the state agency that executed the contract
84	84	to report on the status of the contract monthly or quarterly, as
85	85	determined by the division.
86	86	(c) Based on reports received under Subsection (b), the
87	87	division shall notify the Legislative Budget Board as soon as
88	88	practicable of any high-risk contracts experiencing cost overruns
89	89	or performance failure or otherwise demonstrating poor management.
90	90	(d) A state agency shall provide the division any
91	91	information necessary for the division to perform the division's
92	92	duties under this section.
93	93	Sec. 2262.204. OUTSIDE SERVICES. (a) The division may
94	94	retain the services of private counsel or of private consultants
95	95	who have expertise in a technical matter that is the subject of a
96	96	high-risk contract or proposed high-risk contract.
97	97	(b) A state agency with a high-risk contract or proposed
98	98	high-risk contract for which private counsel or consultants are
99	99	retained by the division shall pay the costs and fees of the counsel
100	100	or consultants.
101	101	Sec. 2262.205. RECOMMENDATION OF CONTRACT CANCELLATION.
102	102	The division may recommend the cancellation of a contract of a state
103	103	agency to the agency and the Legislative Budget Board during the
104	104	review process under this subchapter if an executed contract is
105	105	experiencing performance failure or payment irregularities.
106	106	Sec. 2262.206. NOTIFICATION OF CERTAIN PURCHASES OR
107	107	CONTRACTS. (a) In this section, "institution of higher education"
108	108	has the meaning assigned by Section 61.003, Education Code.
109	109	(b) A state agency or institution of higher education may
110	110	not enter into a contract or make a purchase with an expected value
111	111	that exceeds or may reasonably be expected to exceed $10 million
112	112	unless the agency or institution, at least 30 business days before
113	113	the date of the contract or purchase, provides written notice of the
114	114	contract or purchase to:
115	115	(1) the division;
116	116	(2) the governor;
117	117	(3) the state auditor;
118	118	(4) the presiding officer of the committee in the
119	119	house of representatives with primary responsibility for
120	120	appropriations; and
121	121	(5) the presiding officer of the committee in the
122	122	senate with primary responsibility for appropriations.
123	123	(c) Subsection (d) applies only to a contract or purchase
124	124	with an expected value that exceeds or may reasonably be expected to
125	125	exceed $1 million and that is awarded or made:
126	126	(1) as a result of an emergency or following an
127	127	emergency procurement procedure authorized by law; or
128	128	(2) without advertising or otherwise soliciting bids,
129	129	proposals, offers, or qualifications relating to competitive
130	130	bidding processes required by state statutes, policies, or
131	131	procedures.
132	132	(d) A state agency or institution of higher education may
133	133	not enter into a contract or make a purchase described by Subsection
134	134	(c) unless, at least 24 hours before awarding the contract or making
135	135	the purchase, the agency or institution provides to the entities
136	136	described by Subsection (b) written notice and a clear statement of
137	137	the emergency and the necessity for the contract or purchase.
138	138	Sec. 2262.207. RULES. The Legislative Budget Board may
139	139	adopt rules to implement this subchapter.
140	140	Sec. 2262.208. NO CAUSE OF ACTION CREATED. This subchapter
141	141	does not create a cause of action.
142	142	SECTION 3. Subchapter E, Chapter 2262, Government Code, as
143	143	added by this Act, applies only to a contract or purchase for which
144	144	a state agency first advertises or otherwise solicits bids,
145	145	proposals, offers, or qualifications on or after the effective date
146	146	of this Act.
147	147	SECTION 4. On the effective date of this Act, a state agency
148	148	shall report to the contract management division of the Legislative
149	149	Budget Board all high-risk contracts, as defined by Section
150	150	2262.201, Government Code, as added by this Act, the agency
151	151	anticipates entering into during the state fiscal biennium
152	152	beginning September 1, 2015.
153	153	SECTION 5. This Act takes effect September 1, 2015.