LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION March 23, 2015 TO: Honorable Kevin Eltife, Chair, Senate Committee on Business & Commerce FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB543 by Zaffirini (Relating to certain requirements applicable to contracts entered into by, and the contract management process of, state agencies.), As Introduced The fiscal implications of the bill cannot be determined at this time because the number ofcontracts that would be subject to the review required by the bill is unknown. The bill would require agencies to submit contract amendments or extensions on major contracts that result in a monetary change in value of at least $1 million or 35 percent for review by the Contract Advisory Team. The bill would amend the Government Code to require agencies to adopt certain procurement related procedures and policies relating to the solicitation, negotiation, approval, management, oversight, and closeout of contracts. Agencies would be required to create a system for agency-wide reporting on contractor performance and the status of each contract at the agency. The bill would also require each state agency to maintain a comprehensive list that identifies all contracts made with the agency and essential information pertaining to those contracts. Agencies with certain procurement volumes would be required to create a contract administration team to verify contract performance and to maintain agency expertise on contract management and oversight.The bill would amend the Government Code to allow agencies to use appropriated funds to contract for auditing services in certain circumstances. The bill would repeal provisions of the Government Code exempting certain purchases from individuals with disabilities from competitive bidding. This would require organizations and individuals providing these goods to compete for contracts. The bill would eliminate certain procurement related advisory councils.The bill would take effect November 1, 2015, but entities would not be required to comply with certain provisions until September 1, 2017.The CPA estimates that there would be a cost to implement this provisions of the bill. However, the number of contracts statewide that would be subject to the new Contract Advisory Team review requirements is unknown, and therefore, the cost cannot be determined at this time; depending on the volume of contracts in question, costs could be significant. It is estimated that the remaining provisions of the bill could be absorbed within existing agency resources. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:212 Office of Court Administration, Texas Judicial Council, 301 Office of the Governor, 302 Office of the Attorney General, 303 Facilities Commission, 304 Comptroller of Public Accounts, 308 State Auditor's Office, 313 Department of Information Resources, 529 Health and Human Services Commission, 601 Department of Transportation LBB Staff: UP, CL, JI, KMc, LBe, TBo
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
March 23, 2015
TO: Honorable Kevin Eltife, Chair, Senate Committee on Business & Commerce FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB543 by Zaffirini (Relating to certain requirements applicable to contracts entered into by, and the contract management process of, state agencies.), As Introduced
TO: Honorable Kevin Eltife, Chair, Senate Committee on Business & Commerce
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB543 by Zaffirini (Relating to certain requirements applicable to contracts entered into by, and the contract management process of, state agencies.), As Introduced
Honorable Kevin Eltife, Chair, Senate Committee on Business & Commerce
Honorable Kevin Eltife, Chair, Senate Committee on Business & Commerce
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
SB543 by Zaffirini (Relating to certain requirements applicable to contracts entered into by, and the contract management process of, state agencies.), As Introduced
SB543 by Zaffirini (Relating to certain requirements applicable to contracts entered into by, and the contract management process of, state agencies.), As Introduced
The fiscal implications of the bill cannot be determined at this time because the number ofcontracts that would be subject to the review required by the bill is unknown.
The fiscal implications of the bill cannot be determined at this time because the number ofcontracts that would be subject to the review required by the bill is unknown.
The bill would require agencies to submit contract amendments or extensions on major contracts that result in a monetary change in value of at least $1 million or 35 percent for review by the Contract Advisory Team. The bill would amend the Government Code to require agencies to adopt certain procurement related procedures and policies relating to the solicitation, negotiation, approval, management, oversight, and closeout of contracts. Agencies would be required to create a system for agency-wide reporting on contractor performance and the status of each contract at the agency. The bill would also require each state agency to maintain a comprehensive list that identifies all contracts made with the agency and essential information pertaining to those contracts. Agencies with certain procurement volumes would be required to create a contract administration team to verify contract performance and to maintain agency expertise on contract management and oversight.The bill would amend the Government Code to allow agencies to use appropriated funds to contract for auditing services in certain circumstances. The bill would repeal provisions of the Government Code exempting certain purchases from individuals with disabilities from competitive bidding. This would require organizations and individuals providing these goods to compete for contracts. The bill would eliminate certain procurement related advisory councils.The bill would take effect November 1, 2015, but entities would not be required to comply with certain provisions until September 1, 2017.The CPA estimates that there would be a cost to implement this provisions of the bill. However, the number of contracts statewide that would be subject to the new Contract Advisory Team review requirements is unknown, and therefore, the cost cannot be determined at this time; depending on the volume of contracts in question, costs could be significant. It is estimated that the remaining provisions of the bill could be absorbed within existing agency resources.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 212 Office of Court Administration, Texas Judicial Council, 301 Office of the Governor, 302 Office of the Attorney General, 303 Facilities Commission, 304 Comptroller of Public Accounts, 308 State Auditor's Office, 313 Department of Information Resources, 529 Health and Human Services Commission, 601 Department of Transportation
212 Office of Court Administration, Texas Judicial Council, 301 Office of the Governor, 302 Office of the Attorney General, 303 Facilities Commission, 304 Comptroller of Public Accounts, 308 State Auditor's Office, 313 Department of Information Resources, 529 Health and Human Services Commission, 601 Department of Transportation
LBB Staff: UP, CL, JI, KMc, LBe, TBo
UP, CL, JI, KMc, LBe, TBo