By: Capriglione, Bonnen of Brazoria, Howard, H.B. No. 20
Walle, et al.
A BILL TO BE ENTITLED
AN ACT
relating to the review, oversight, and reporting of certain state
agency contracts and the assessment of certain state agency
projects.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Section 322.020, Government Code,
is amended to read as follows:
Sec. 322.020. [MAJOR] CONTRACTS DATABASE.
SECTION 2. Section 322.020, Government Code, is amended by
amending Subsections (a), (b), and (c) and adding Subsections
(b-1), (b-2), (b-3), and (b-4) to read as follows:
(a) In this section[, "major contract" means]:
(1) "Contract" means a contract, grant, or agreement
for the purchase or sale of goods or services that is entered into
or paid for, wholly or partly, by a state agency or an amendment,
modification, renewal, or extension of the contract, grant, or
agreement. The term includes a revenue generating contract, an
interagency or interlocal grant or agreement, a purchase order, or
other written expression of terms of agreement. [a contract for
which notice is required under one of the following sections:
[(A) Section 2054.008;
[(B) Section 2166.2551;
[(C) Section 2254.006; or
[(D) Section 2254.0301; or]
(2) "Institution of higher education" has the meaning
assigned by Section 61.003, Education Code.
(3) "State agency" has the meaning assigned by Section
2054.003 [a contract, including an amendment, modification,
renewal, or extension:
[(A) for which notice is not required under a
section listed in Subdivision (1);
[(B) that is not a purchase order, an interagency
contract, or a contract paid only with funds not appropriated by the
General Appropriations Act; and
[(C) with a value that exceeds $50,000].
(b) This section applies only to:
(1) a major consulting services contract, as defined
by Section 2254.021; and
(2) a contract, including any amendment,
modification, renewal, or extension of the contract, that has a
value that exceeds or is reasonably expected to exceed $50,000,
other than a contract of an institution of higher education that:
(A) is paid for solely with institutional funds
or hospital and clinic fees, as described by Section 51.009,
Education Code; or
(B) is for sponsored research.
(b-1) Not later than the 30th calendar day after the date a
contract is awarded, amended, modified, renewed, or extended, a
[Each] state agency shall provide written notice of the contract to
the Legislative Budget Board. The written notice must include
copies of the following documents:
(1) each [major] contract entered into by the agency,
including each amendment, modification, renewal, or extension of
the contract; and
(2) each request for proposal, invitation to bid, or
comparable solicitation related to the [major] contract.
(b-2) The requirement to provide copies of documents under
Subsection (b-1) does not apply to:
(1) an enrollment contract described by 1 T.A.C.
Section 391.183 as that section existed on September 1, 2015; or
(2) a contract of the Texas Department of
Transportation that:
(A) relates to highway construction or
engineering; or
(B) is subject to Section 201.112,
Transportation Code.
(b-3) A state agency may redact from the written notice
provided under Subsection (b-1) information excepted from
disclosure under Chapter 552, including information that may be
used to perpetrate fraud on the agency, such as:
(1) certain commercial or financial information;
(2) credit card, debit card, charge card, and access
device numbers; and
(3) government information related to security or
infrastructure issues for computers.
(b-4) For an institution of higher education, Subsection
(b-1) applies only if:
(1) for a major information system, as defined by
Section 2054.0965, the value exceeds $1 million and the contract is
paid with appropriated funds;
(2) for a construction project, the contract is paid
with appropriated funds; or
(3) for professional services, the contract is for
services other than physician or optometric service and is paid
with appropriated funds.
(b-5) The redaction of information under this subsection
does not exempt the information from the requirements of Section
552.021 or 552.221.
(c) The Legislative Budget Board shall post on the Internet
a copy of:
(1) each [major] contract, including each amendment,
modification, renewal, or extension of the contract [of a state
agency]; and
(2) each request for proposal, invitation to bid, or
comparable solicitation related to the [major] contract.
SECTION 3. Chapter 322, Government Code, is amended by
adding Sections 322.021, 322.0211, and 322.0212 to read as follows:
Sec. 322.021. STATE AGENCY CONTRACT OVERSIGHT. (a) In this
section:
(1) "Board" means the Legislative Budget Board.
(2) "Institution of higher education" has the meaning
assigned by Section 61.003, Education Code.
(3) "State agency" has the meaning assigned by Section
2054.003.
(b) Subject to Subsection (c), the board may review state
agency contracts to determine compliance with the contract
management guide developed under Section 2054.554, the
comptroller's procurement policy manuals, and each applicable
state contracting law, rule, policy, and procedure. The authority
to review a state agency contract under this subsection applies
regardless of the source of funds or method of financing for the
contract.
(c) This section does not apply to a contract of an
institution of higher education that is paid for solely with
institutional funds or hospital and clinic fees, as described by
Section 51.009, Education Code. The board shall review the
contract management handbook developed by an institution of higher
education as required by Section 51.9337(b)(3), Education Code,
when determining the institution's compliance with contracting
rules and procedures.
(d) Board staff may request, and are entitled to obtain, any
document related to a contract reviewed under this section or to a
purchase under the contract.
(e) Each state agency shall cooperate with the board in
conducting a contract review under this section and in resolving
any issue resulting from the contract review.
Sec. 322.0211. NOTICE OF VIOLATION OF STATE CONTRACTING
LAW; CORRECTIVE ACTION PLAN. (a) If the Legislative Budget Board
determines under Section 322.021 that a state agency contract
violates the contract management guide, the comptroller's
procurement policy manuals, or a state contracting law, rule,
policy, or procedure, the board's director shall provide notice of
the violation to the agency.
(b) A state agency shall provide a written response to the
notice provided under Subsection (a) not later than the 10th
business day after the date the agency receives the notice.
(c) If the board determines that the response provided by a
state agency under Subsection (b) does not adequately address or
resolve the violation determined under Subsection (a), the board's
director may provide to the board and the state agency,
comptroller, and governor written notice of the violation. A
violation notice provided under this subsection must:
(1) detail the specific provision violated by the
contract;
(2) recommend actions to be taken to address the
violation and any identified risks related to the contract;
(3) list potential remedies for the violation; and
(4) state any enforcement mechanism that may be
assessed under Section 322.0212 for the violation.
(d) A state agency that receives notice of a violation under
Subsection (c) shall develop a written corrective action plan
consistent with the board's recommendations and provide the plan to
the board not later than the 30th calendar day after the date the
agency receives the notice.
(e) The board may monitor a state agency's implementation of
the corrective action plan.
Sec. 322.0212. ENFORCEMENT. (a) The Legislative Budget
Board may assess an enforcement mechanism against a state agency
that the board determines under Section 322.021 is in violation of
the contract management guide, the comptroller's procurement
policy manuals, or a state contracting law, rule, policy, or
procedure. The enforcement mechanism must be assessed in
accordance with the schedule developed under Subsection (b).
(b) The board may establish a schedule of enforcement
mechanisms that may be assessed against a state agency for a
violation described by Subsection (a). The enforcement mechanisms
may include:
(1) enhanced monitoring of the state agency's
contracts by board personnel;
(2) required consultation with the Contract Advisory
Team established under Section 2262.101 or the quality assurance
team established under Section 2054.158 before issuance of a
contract by the state agency;
(3) targeted audits by the State Auditor's Office at
the request of the board; and
(4) recommended cancellation of a contract determined
to contain a violation described by Section 322.0211(a).
(c) The board's director may recommend to the board an
enforcement mechanism to be assessed against a state agency for a
contract violation.
(d) The board may increase the severity of an enforcement
mechanism assessed against a state agency for repeated contract
violations described by Section 322.0211(a).
(e) The board may dismiss an enforcement mechanism assessed
against a state agency by the board for a contract violation
described by Section 322.0211(a) on successful implementation of a
corrective action plan by the agency under Section 322.0211(d).
SECTION 4. Section 2054.0965, Government Code, is amended
by amending Subsection (b) and adding Subsection (c) to read as
follows:
(b) Except as otherwise modified by rules adopted by the
department, the review must include:
(1) an inventory of the agency's major information
systems[, as defined by Section 2054.008,] and other operational or
logistical components related to deployment of information
resources as prescribed by the department;
(2) an inventory of the agency's major databases and
applications;
(3) a description of the agency's existing and planned
telecommunications network configuration;
(4) an analysis of how information systems,
components, databases, applications, and other information
resources have been deployed by the agency in support of:
(A) applicable achievement goals established
under Section 2056.006 and the state strategic plan adopted under
Section 2056.009;
(B) the state strategic plan for information
resources; and
(C) the agency's business objectives, mission,
and goals;
(5) agency information necessary to support the state
goals for interoperability and reuse; and
(6) confirmation by the agency of compliance with
state statutes, rules, and standards relating to information
resources.
(c) In this section, "major information system" includes:
(1) one or more computers that in the aggregate cost
more than $100,000;
(2) a service related to computers, including computer
software, that costs more than $100,000; and
(3) a telecommunications apparatus or device that
serves as a voice, data, or video communications network for
transmitting, switching, routing, multiplexing, modulating,
amplifying, or receiving signals on the network and costs more than
$100,000.
SECTION 5. Subchapter F, Chapter 2054, Government Code, is
amended by adding Section 2054.1184 to read as follows:
Sec. 2054.1184. ASSESSMENT OF MAJOR INFORMATION RESOURCES
PROJECT. (a) A state agency proposing to spend appropriated funds
for a major information resources project must first conduct an
execution capability assessment to:
(1) determine the agency's capability for implementing
the project;
(2) reduce the agency's financial risk in implementing
the project; and
(3) increase the probability of the agency's
successful implementation of the project.
(b) A state agency shall submit to the department, the
quality assurance team established under Section 2054.158, and the
Legislative Budget Board a detailed report that identifies the
agency's organizational strengths and any weaknesses that will be
addressed before the agency initially spends appropriated funds for
a major information resources project.
(c) A state agency may contract with an independent third
party to conduct the assessment under Subsection (a) and prepare
the report described by Subsection (b).
SECTION 6. Section 2261.253, Government Code, is amended to
read as follows:
Sec. 2261.253. REQUIRED POSTING OF [CERTAIN CONTRACTS;
ENHANCED] CONTRACT INFORMATION AND PERFORMANCE MONITORING. (a)
Each [For each contract for the purchase of goods or services from a
private vendor, each] state agency shall post on its Internet
website's home page a link to the Legislative Budget Board's
contracts database established under Section 322.020. [website:
[(1) each contract the agency enters into, including
contracts entered into without inviting, advertising for, or
otherwise requiring competitive bidding before selection of the
contractor, until the contract expires or is completed;
[(2) the statutory or other authority under which a
contract that is not competitively bid under Subdivision (1) is
entered into without compliance with competitive bidding
procedures; and
[(3) the request for proposals related to a
competitively bid contract included under Subdivision (1) until the
contract expires or is completed.]
(b) For each contract in an amount of $15,000 or more for the
purchase of goods or services from a private vendor that is paid for
solely with institutional funds or hospital and clinic fees, as
described by Section 51.009, Education Code, an institution of
higher education, as defined by Section 61.003, Education Code,
shall post on the institution's Internet website:
(1) the contract, including a contract that does not
require competitive bidding before selection of the contractor,
until the contract expires or is completed;
(2) for a contract that does not require competitive
bidding, the statutory or other authority that allows the contract
to be entered into without compliance with competitive bidding
procedures; and
(3) the request for proposals related to a
competitively bid contract posted under Subdivision (1), until the
contract is completed [A state agency monthly may post contracts
described by Subsection (a) that are valued at less than $15,000].
(c) 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.
(d) An institution of higher education may redact
information from the contracts posted on the institution's Internet
website under Subsection (b) to the same extent as permitted under
Section 322.022(b-3). The redaction of information under this
subsection does not exempt the information from the requirements of
Section 552.021 or 552.221.
[(d) This section does not apply to a memorandum of
understanding, interagency contract, interlocal agreement, or
contract for which there is not a cost.]
SECTION 7. Section 2262.101, Government Code, is amended by
adding Subsection (g) to read as follows:
(g) The team shall provide to the Legislative Budget Board a
copy of:
(1) each recommendation made under Subsection (a)(1)
on a solicitation or contract document not later than the 10th
calendar day after the date the team makes the recommendation; and
(2) any written explanation submitted by a state
agency under Subsection (d)(2) stating the reason a recommendation
is not applicable to the contract under review not later than the
10th calendar day after the date the team receives the explanation.
SECTION 8. (a) Sections 2262.102(a) and (d), Government
Code, are amended to read as follows:
(a) The team consists of the following [six] members:
(1) one member from the Health and Human Services
Commission;
(2) one member from the comptroller's office;
(3) one member from the Department of Information
Resources;
(4) one member from the Texas Facilities Commission;
(5) one member from the governor's office; and
(6) one or more members [member] from any other [a
small] state agencies, as designated by the comptroller as the
comptroller considers necessary [agency].
(d) The comptroller may adopt rules regarding the
membership of the team, as appropriate, to implement this section
[In this section, "small state agency" means a state agency with
fewer than 100 employees].
(b) As soon as practicable after the effective date of this
Act, the comptroller shall designate one or more members to the
Contract Advisory Team as provided by Section 2262.102, Government
Code, as amended by this Act.
SECTION 9. The following sections of the Government Code
are repealed:
(1) Section 322.020(f);
(2) Section 2054.008;
(3) Section 2166.2551;
(4) Section 2254.006; and
(5) Section 2254.0301.
SECTION 10. The changes in law made by this Act apply to a
contract entered into or amended, modified, renewed, or extended on
or after the effective date of this Act. A contract entered into or
amended, modified, renewed, or extended before the effective date
of this Act is governed by the law in effect on the date the contract
was entered into or amended, modified, renewed, or extended, and
the former law is continued in effect for that purpose.
SECTION 11. This Act takes effect September 1, 2017.