Texas 2017 - 85th Regular

Texas House Bill HB579 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	85R24498 YDB-D
2	1		By: Turner H.B. No. 579
3		-	Substitute the following for H.B. No. 579:
4		-	By: Capriglione C.S.H.B. No. 579
5	2
6	3
7	4		A BILL TO BE ENTITLED
8	5		AN ACT
9	6		relating to notice by a state agency regarding certain contracts
10		-	for which the ~~actual cost~~ exceeds the ~~contracted amount~~.
	7	+	for which the total value exceeds that of the initial contract.
11	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	9		SECTION 1. Subchapter F, Chapter 2261, Government Code, is
13	10		amended by adding Section 2261.2555 to read as follows:
14	11		Sec. 2261.2555. NOTICE OF CERTAIN COST THAT EXCEEDS
15		-	CONTRACT AMOUNT; ENFORCEMENT. (a) For each state agency contract
16		-	to purchase services from a vendor for which the actual cost of the
17		-	services exceeds the amount contracted for the services by $1
18		-	million or more, the state agency in accordance with procedures
19		-	established by the Legislative Budget Board shall provide notice of
20		-	the excessive cost to:
	12	+	CONTRACT AMOUNT; ENFORCEMENT. (a) Subject to Subsection (a-1),
	13	+	for each state agency contract to purchase services from a vendor
	14	+	for which the total value of the contract after any contract
	15	+	amendment exceeds the total value of the initial contract by the
	16	+	greater of five percent or more or $1 million or more, the state
	17	+	agency in accordance with procedures established by the Legislative
	18	+	Budget Board shall provide notice of the excessive cost to:
21	19		(1) the governor;
22	20		(2) the lieutenant governor;
23	21		(3) the speaker of the house of representatives;
24	22		(4) each member of the legislature;
25	23		(5) the board; and
26	24		(6) the state auditor's office.
	25	+	(a-1) Subsection (a) applies only to a contract the cost of
	26	+	which is paid for with appropriated funds.
27	27		(b) The state agency must provide the notice required under
28		-	Subsection (a) not later than the 30th day after the date the actual
29		-	cost exceeds the contract amount by $1 million. The notice must
30		-	include:
31		-	(1) the amount of the excessive cost;
32		-	(2) the reason for the excessive cost;
	28	+	Subsection (a) not later than the 30th day after the date of the
	29	+	disclosure or discovery that the expected total value of the
	30	+	contract after any contract amendment exceeds the total value of
	31	+	the initial contract by the greater of five percent or more or $1
	32	+	million. The notice must include:
	33	+	(1) the amount of the cost increase;
	34	+	(2) the reason for the cost increase;
33	35		(3) any opportunity the state agency had to lessen the
34		-	~~excessive~~ cost or to purchase the ~~services~~ from another vendor
35		-	~~after~~ the ~~excessive cost was disclosed~~; and
	36	+	cost or to purchase the service from another vendor after the first
	37	+	discovery or disclosure of any cost increase to the agency; and
36	38		(4) any other information the Legislative Budget Board
37	39		determines relevant.
38	40		(c) The Legislative Budget Board may assess an enforcement
39	41		mechanism against a state agency that the board determines has
40	42		failed to provide notice as required by this section. The
41	43		enforcement mechanism must be assessed in accordance with the
42	44		schedule developed under Subsection (d).
43	45		(d) The Legislative Budget Board may establish a schedule of
44	46		enforcement mechanisms that may be assessed against a state agency
45	47		for a violation described by Subsection (c). The enforcement
46	48		mechanisms may include:
47	49		(1) enhanced monitoring of the state agency's
48	50		contracts by board personnel;
49	51		(2) required consultation with the Contract Advisory
50	52		Team established under Section 2262.101 or the quality assurance
51	53		team established under Section 2054.158 before issuance of a
52	54		contract by the state agency;
53	55		(3) targeted audits by the state auditor's office at
54	56		the request of the board; and
55	57		(4) recommended cancellation of a contract to purchase
56		-	services for which the actual cost of the services is determined to
57		-	exceed the amount contracted for the services by $1 million or more.
	58	+	services from a vendor for which the total value of the contract
	59	+	after any contract amendment exceeds the total value of the initial
	60	+	contract by the greater of five percent or more or $1 million or
	61	+	more.
58	62		(e) The Legislative Budget Board's director may recommend
59	63		to the board an enforcement mechanism to be assessed against a state
60	64		agency for a violation described by Subsection (c). The board may
61	65		increase the severity of an enforcement mechanism assessed against
62	66		a state agency for repeated violations.
63	67		(f) The Legislative Budget Board may dismiss an enforcement
64	68		mechanism assessed against a state agency by the board for a
65	69		violation described by Subsection (c) on successful implementation
66	70		of corrective action approved by the board.
67	71		SECTION 2. The changes in law made by this Act apply only to
68	72		a contract entered into on or after the effective date of this Act.
69	73		A contract entered into before that date is governed by the law in
70	74		effect immediately before the effective date of this Act, and the
71	75		former law is continued in effect for that purpose.
72	76		SECTION 3. This Act takes effect September 1, 2017.