Texas 2017 - 85th Regular

Texas House Bill HB20 Compare Versions

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Old	New		Differences
1		-	85R24067 YDB-D
2	1		By: Capriglione, Bonnen of Brazoria, Howard, H.B. No. 20
3	2		Walle, et al.
4		-	Substitute the following for H.B. No. 20:
5		-	By: Capriglione C.S.H.B. No. 20
6	3
7	4
8	5		A BILL TO BE ENTITLED
9	6		AN ACT
10	7		relating to the review, oversight, and reporting of certain state
11		-	agency contracts.
	8	+	agency contracts and the assessment of certain state agency
	9	+	projects.
12	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	11		SECTION 1. The heading to Section 322.020, Government Code,
14	12		is amended to read as follows:
15	13		Sec. 322.020. [MAJOR] CONTRACTS DATABASE.
16	14		SECTION 2. Section 322.020, Government Code, is amended by
17	15		amending Subsections (a), (b), and (c) and adding Subsections
18	16		(b-1), (b-2), (b-3), and (b-4) to read as follows:
19	17		(a) In this section[, "major contract" means]:
20	18		(1) "Contract" means a contract, grant, or agreement
21	19		for the purchase or sale of goods or services that is entered into
22	20		or paid for, wholly or partly, by a state agency or an amendment,
23	21		modification, renewal, or extension of the contract, grant, or
24	22		agreement. The term includes a revenue generating contract, an
25	23		interagency or interlocal grant or agreement, a purchase order, or
26	24		other written expression of terms of agreement. [a contract for
27	25		which notice is required under one of the following sections:
28	26		[(A) Section 2054.008;
29	27		[(B) Section 2166.2551;
30	28		[(C) Section 2254.006; or
31	29		[(D) Section 2254.0301; or]
32	30		(2) "Institution of higher education" has the meaning
33	31		assigned by Section 61.003, Education Code.
34	32		(3) "State agency" has the meaning assigned by Section
35	33		2054.003 [a contract, including an amendment, modification,
36	34		renewal, or extension:
37	35		[(A) for which notice is not required under a
38	36		section listed in Subdivision (1);
39	37		[(B) that is not a purchase order, an interagency
40	38		contract, or a contract paid only with funds not appropriated by the
41	39		General Appropriations Act; and
42	40		[(C) with a value that exceeds $50,000].
43	41		(b) This section applies only to:
44	42		(1) a major consulting services contract, as defined
45	43		by Section 2254.021; and
46	44		(2) a contract, including any amendment,
47	45		modification, renewal, or extension of the contract, that has a
48	46		value that exceeds or is reasonably expected to exceed $50,000,
49	47		other than a contract of an institution of higher education that:
50	48		(A) is paid for solely with institutional funds
51	49		or hospital and clinic fees, as described by Section 51.009,
52	50		Education Code; or
53	51		(B) is for sponsored research.
54	52		(b-1) Not later than the 30th calendar day after the date a
55	53		contract is awarded, amended, modified, renewed, or extended, a
56	54		[Each] state agency shall provide written notice of the contract to
57	55		the Legislative Budget Board. The written notice must include
58	56		copies of the following documents:
59	57		(1) each [major] contract entered into by the agency,
60	58		including each amendment, modification, renewal, or extension of
61	59		the contract; and
62	60		(2) each request for proposal, invitation to bid, or
63	61		comparable solicitation related to the [major] contract.
64	62		(b-2) The requirement to provide copies of documents under
65	63		Subsection (b-1) does not apply to:
66	64		(1) an enrollment contract described by 1 T.A.C.
67	65		Section 391.183 as that section existed on September 1, 2015; or
68	66		(2) a contract of the Texas Department of
69	67		Transportation that:
70	68		(A) relates to highway construction or
71	69		engineering; or
72	70		(B) is subject to Section 201.112,
73	71		Transportation Code.
74	72		(b-3) A state agency may redact from the written notice
75	73		provided under Subsection (b-1) information excepted from
76	74		disclosure under Chapter 552, including information that may be
77	75		used to perpetrate fraud on the agency, such as:
78	76		(1) certain commercial or financial information;
79	77		(2) credit card, debit card, charge card, and access
80	78		device numbers; and
81	79		(3) government information related to security or
82	80		infrastructure issues for computers.
83		-	(b-4) An institution of higher education shall report to the
84		-	board a contract paid with appropriated funds for:
85		-	(1) a purchase of a major information system, as
86		-	defined by Section 2054.0965, in an amount that exceeds $1 million;
87		-	(2) a construction project in an amount, including an
88		-	amount included in any amendment, modification, renewal, or
89		-	extension of the contract, that exceeds $50,000; and
90		-	(3) professional services, other than a physician or
91		-	optometric services, in an amount, including an amount included in
92		-	any amendment, modification, renewal, or extension of the contract,
93		-	that exceeds $50,000.
	81	+	(b-4) For an institution of higher education, Subsection
	82	+	(b-1) applies only if:
	83	+	(1) for a major information system, as defined by
	84	+	Section 2054.0965, the value exceeds $1 million and the contract is
	85	+	paid with appropriated funds;
	86	+	(2) for a construction project, the contract is paid
	87	+	with appropriated funds; or
	88	+	(3) for professional services, the contract is for
	89	+	services other than physician or optometric service and is paid
	90	+	with appropriated funds.
	91	+	(b-5) The redaction of information under this subsection
	92	+	does not exempt the information from the requirements of Section
	93	+	552.021 or 552.221.
94	94		(c) The Legislative Budget Board shall post on the Internet
95	95		a copy of:
96	96		(1) each [major] contract, including each amendment,
97	97		modification, renewal, or extension of the contract [of a state
98	98		agency]; and
99	99		(2) each request for proposal, invitation to bid, or
100	100		comparable solicitation related to the [major] contract.
101	101		SECTION 3. Chapter 322, Government Code, is amended by
102	102		adding Sections 322.021, 322.0211, and 322.0212 to read as follows:
103	103		Sec. 322.021. STATE AGENCY CONTRACT OVERSIGHT. (a) In this
104	104		section:
105	105		(1) "Board" means the Legislative Budget Board.
106	106		(2) "Institution of higher education" has the meaning
107	107		assigned by Section 61.003, Education Code.
108	108		(3) "State agency" has the meaning assigned by Section
109	109		2054.003.
110	110		(b) Subject to Subsection (c), the board may review state
111	111		agency contracts to determine compliance with the contract
112	112		management guide developed under Section 2054.554, the
113	113		comptroller's procurement policy manuals, and each applicable
114	114		state contracting law, rule, policy, and procedure. The authority
115	115		to review a state agency contract under this subsection applies
116	116		regardless of the source of funds or method of financing for the
117	117		contract.
118	118		(c) This section does not apply to a contract of an
119	119		institution of higher education that is paid for solely with
120	120		institutional funds or hospital and clinic fees, as described by
121	121		Section 51.009, Education Code. The board shall review the
122	122		contract management handbook developed by an institution of higher
123	123		education as required by Section 51.9337(b)(3), Education Code,
124	124		when determining the institution's compliance with contracting
125	125		rules and procedures.
126	126		(d) Board staff may request, and are entitled to obtain, any
127	127		document related to a contract reviewed under this section or to a
128	128		purchase under the contract.
129	129		(e) Each state agency shall cooperate with the board in
130	130		conducting a contract review under this section and in resolving
131	131		any issue resulting from the contract review.
132	132		Sec. 322.0211. NOTICE OF VIOLATION OF STATE CONTRACTING
133	133		LAW; CORRECTIVE ACTION PLAN. (a) If the Legislative Budget Board
134	134		determines under Section 322.021 that a state agency contract
135	135		violates the contract management guide, the comptroller's
136	136		procurement policy manuals, or a state contracting law, rule,
137	137		policy, or procedure, the board's director shall provide notice of
138	138		the violation to the agency.
139	139		(b) A state agency shall provide a written response to the
140	140		notice provided under Subsection (a) not later than the 10th
141	141		business day after the date the agency receives the notice.
142	142		(c) If the board determines that the response provided by a
143	143		state agency under Subsection (b) does not adequately address or
144	144		resolve the violation determined under Subsection (a), the board's
145	145		director may provide to the board and the state agency,
146	146		comptroller, and governor written notice of the violation. A
147	147		violation notice provided under this subsection must:
148	148		(1) detail the specific provision violated by the
149	149		contract;
150	150		(2) recommend actions to be taken to address the
151	151		violation and any identified risks related to the contract;
152	152		(3) list potential remedies for the violation; and
153	153		(4) state any enforcement mechanism that may be
154	154		assessed under Section 322.0212 for the violation.
155	155		(d) A state agency that receives notice of a violation under
156	156		Subsection (c) shall develop a written corrective action plan
157	157		consistent with the board's recommendations and provide the plan to
158	158		the board not later than the 30th calendar day after the date the
159	159		agency receives the notice.
160	160		(e) The board may monitor a state agency's implementation of
161	161		the corrective action plan.
162	162		Sec. 322.0212. ENFORCEMENT. (a) The Legislative Budget
163	163		Board may assess an enforcement mechanism against a state agency
164	164		that the board determines under Section 322.021 is in violation of
165	165		the contract management guide, the comptroller's procurement
166	166		policy manuals, or a state contracting law, rule, policy, or
167	167		procedure. The enforcement mechanism must be assessed in
168	168		accordance with the schedule developed under Subsection (b).
169	169		(b) The board may establish a schedule of enforcement
170	170		mechanisms that may be assessed against a state agency for a
171	171		violation described by Subsection (a). The enforcement mechanisms
172	172		may include:
173	173		(1) enhanced monitoring of the state agency's
174	174		contracts by board personnel;
175	175		(2) required consultation with the Contract Advisory
176	176		Team established under Section 2262.101 or the quality assurance
177	177		team established under Section 2054.158 before issuance of a
178	178		contract by the state agency;
179	179		(3) targeted audits by the State Auditor's Office at
180	180		the request of the board; and
181	181		(4) recommended cancellation of a contract determined
182	182		to contain a violation described by Section 322.0211(a).
183	183		(c) The board's director may recommend to the board an
184	184		enforcement mechanism to be assessed against a state agency for a
185	185		contract violation.
186	186		(d) The board may increase the severity of an enforcement
187	187		mechanism assessed against a state agency for repeated contract
188	188		violations described by Section 322.0211(a).
189	189		(e) The board may dismiss an enforcement mechanism assessed
190	190		against a state agency by the board for a contract violation
191	191		described by Section 322.0211(a) on successful implementation of a
192	192		corrective action plan by the agency under Section 322.0211(d).
193	193		SECTION 4. Section 2054.0965, Government Code, is amended
194	194		by amending Subsection (b) and adding Subsection (c) to read as
195	195		follows:
196	196		(b) Except as otherwise modified by rules adopted by the
197	197		department, the review must include:
198	198		(1) an inventory of the agency's major information
199	199		systems[, as defined by Section 2054.008,] and other operational or
200	200		logistical components related to deployment of information
201	201		resources as prescribed by the department;
202	202		(2) an inventory of the agency's major databases and
203	203		applications;
204	204		(3) a description of the agency's existing and planned
205	205		telecommunications network configuration;
206	206		(4) an analysis of how information systems,
207	207		components, databases, applications, and other information
208	208		resources have been deployed by the agency in support of:
209	209		(A) applicable achievement goals established
210	210		under Section 2056.006 and the state strategic plan adopted under
211	211		Section 2056.009;
212	212		(B) the state strategic plan for information
213	213		resources; and
214	214		(C) the agency's business objectives, mission,
215	215		and goals;
216	216		(5) agency information necessary to support the state
217	217		goals for interoperability and reuse; and
218	218		(6) confirmation by the agency of compliance with
219	219		state statutes, rules, and standards relating to information
220	220		resources.
221	221		(c) In this section, "major information system" includes:
222	222		(1) one or more computers that in the aggregate cost
223	223		more than $100,000;
224	224		(2) a service related to computers, including computer
225	225		software, that costs more than $100,000; and
226	226		(3) a telecommunications apparatus or device that
227	227		serves as a voice, data, or video communications network for
228	228		transmitting, switching, routing, multiplexing, modulating,
229	229		amplifying, or receiving signals on the network and costs more than
230	230		$100,000.
231		-	SECTION 5. Section 2261.253, Government Code, is amended to
	231	+	SECTION 5. Subchapter F, Chapter 2054, Government Code, is
	232	+	amended by adding Section 2054.1184 to read as follows:
	233	+	Sec. 2054.1184. ASSESSMENT OF MAJOR INFORMATION RESOURCES
	234	+	PROJECT. (a) A state agency proposing to spend appropriated funds
	235	+	for a major information resources project must first conduct an
	236	+	execution capability assessment to:
	237	+	(1) determine the agency's capability for implementing
	238	+	the project;
	239	+	(2) reduce the agency's financial risk in implementing
	240	+	the project; and
	241	+	(3) increase the probability of the agency's
	242	+	successful implementation of the project.
	243	+	(b) A state agency shall submit to the department, the
	244	+	quality assurance team established under Section 2054.158, and the
	245	+	Legislative Budget Board a detailed report that identifies the
	246	+	agency's organizational strengths and any weaknesses that will be
	247	+	addressed before the agency initially spends appropriated funds for
	248	+	a major information resources project.
	249	+	(c) A state agency may contract with an independent third
	250	+	party to conduct the assessment under Subsection (a) and prepare
	251	+	the report described by Subsection (b).
	252	+	SECTION 6. Section 2261.253, Government Code, is amended to
232	253		read as follows:
233	254		Sec. 2261.253. REQUIRED POSTING OF [CERTAIN CONTRACTS;
234	255		ENHANCED] CONTRACT INFORMATION AND PERFORMANCE MONITORING. (a)
235	256		Each [For each contract for the purchase of goods or services from a
236	257		private vendor, each] state agency shall post on its Internet
237	258		website's home page a link to the Legislative Budget Board's
238	259		contracts database established under Section 322.020. [website:
239	260		[(1) each contract the agency enters into, including
240	261		contracts entered into without inviting, advertising for, or
241	262		otherwise requiring competitive bidding before selection of the
242	263		contractor, until the contract expires or is completed;
243	264		[(2) the statutory or other authority under which a
244	265		contract that is not competitively bid under Subdivision (1) is
245	266		entered into without compliance with competitive bidding
246	267		procedures; and
247	268		[(3) the request for proposals related to a
248	269		competitively bid contract included under Subdivision (1) until the
249	270		contract expires or is completed.]
250	271		(b) For each contract in an amount of $15,000 or more for the
251	272		purchase of goods or services from a private vendor that is paid for
252	273		solely with institutional funds or hospital and clinic fees, as
253	274		described by Section 51.009, Education Code, an institution of
254	275		higher education, as defined by Section 61.003, Education Code,
255	276		shall post on the institution's Internet website:
256	277		(1) the contract, including a contract that does not
257	278		require competitive bidding before selection of the contractor,
258	279		until the contract expires or is completed;
259	280		(2) for a contract that does not require competitive
260	281		bidding, the statutory or other authority that allows the contract
261	282		to be entered into without compliance with competitive bidding
262	283		procedures; and
263	284		(3) the request for proposals related to a
264	285		competitively bid contract posted under Subdivision (1), until the
265	286		contract is completed [A state agency monthly may post contracts
266	287		described by Subsection (a) that are valued at less than $15,000].
267	288		(c) Each state agency by rule shall establish a procedure to
268	289		identify each contract that requires enhanced contract or
269	290		performance monitoring and submit information on the contract to
270	291		the agency's governing body or, if the agency is not governed by a
271	292		multimember governing body, the officer who governs the agency.
272	293		The agency's contract management office or procurement director
273	294		shall immediately notify the agency's governing body or governing
274	295		official, as appropriate, of any serious issue or risk that is
275	296		identified with respect to a contract monitored under this
276	297		subsection.
	298	+	(d) An institution of higher education may redact
	299	+	information from the contracts posted on the institution's Internet
	300	+	website under Subsection (b) to the same extent as permitted under
	301	+	Section 322.022(b-3). The redaction of information under this
	302	+	subsection does not exempt the information from the requirements of
	303	+	Section 552.021 or 552.221.
277	304		[(d) This section does not apply to a memorandum of
278	305		understanding, interagency contract, interlocal agreement, or
279	306		contract for which there is not a cost.]
280		-	SECTION 6. Section 2262.101, Government Code, is amended by
	307	+	SECTION 7. Section 2262.101, Government Code, is amended by
281	308		adding Subsection (g) to read as follows:
282	309		(g) The team shall provide to the Legislative Budget Board a
283	310		copy of:
284	311		(1) each recommendation made under Subsection (a)(1)
285	312		on a solicitation or contract document not later than the 10th
286	313		calendar day after the date the team makes the recommendation; and
287	314		(2) any written explanation submitted by a state
288	315		agency under Subsection (d)(2) stating the reason a recommendation
289	316		is not applicable to the contract under review not later than the
290	317		10th calendar day after the date the team receives the explanation.
291		-	SECTION 7. The following sections of the Government Code
	318	+	SECTION 8. (a) Sections 2262.102(a) and (d), Government
	319	+	Code, are amended to read as follows:
	320	+	(a) The team consists of the following [six] members:
	321	+	(1) one member from the Health and Human Services
	322	+	Commission;
	323	+	(2) one member from the comptroller's office;
	324	+	(3) one member from the Department of Information
	325	+	Resources;
	326	+	(4) one member from the Texas Facilities Commission;
	327	+	(5) one member from the governor's office; and
	328	+	(6) one or more members [member] from any other [a
	329	+	small] state agencies, as designated by the comptroller as the
	330	+	comptroller considers necessary [agency].
	331	+	(d) The comptroller may adopt rules regarding the
	332	+	membership of the team, as appropriate, to implement this section
	333	+	[In this section, "small state agency" means a state agency with
	334	+	fewer than 100 employees].
	335	+	(b) As soon as practicable after the effective date of this
	336	+	Act, the comptroller shall designate one or more members to the
	337	+	Contract Advisory Team as provided by Section 2262.102, Government
	338	+	Code, as amended by this Act.
	339	+	SECTION 9. The following sections of the Government Code
292	340		are repealed:
293	341		(1) Section 322.020(f);
294	342		(2) Section 2054.008;
295	343		(3) Section 2166.2551;
296	344		(4) Section 2254.006; and
297	345		(5) Section 2254.0301.
298		-	SECTION 8. The changes in law made by this Act apply to a
	346	+	SECTION 10. The changes in law made by this Act apply to a
299	347		contract entered into or amended, modified, renewed, or extended on
300	348		or after the effective date of this Act. A contract entered into or
301	349		amended, modified, renewed, or extended before the effective date
302	350		of this Act is governed by the law in effect on the date the contract
303	351		was entered into or amended, modified, renewed, or extended, and
304	352		the former law is continued in effect for that purpose.
305		-	SECTION 9. This Act takes effect September 1, 2017.
	353	+	SECTION 11. This Act takes effect September 1, 2017.