S.B. No. 533
AN ACT
relating to governmental entity contracting and procurement.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 572.069, Government Code, is amended to
read as follows:
Sec. 572.069. CERTAIN EMPLOYMENT FOR FORMER STATE OFFICER
OR EMPLOYEE RESTRICTED. A former state officer or employee of a
state agency who during the period of state service or employment
participated on behalf of a state agency in a procurement or
contract negotiation involving a person may not accept employment
from that person before the second anniversary of the date the
contract is signed or the procurement is terminated or withdrawn
[officer's or employee's service or employment with the state
agency ceased].
SECTION 2. Section 2054.1181(a), Government Code, is
amended to read as follows:
(a) At the direction of the governor, lieutenant governor,
or speaker of the house of representatives [The quality assurance
team, in coordination with the governor, may recommend major
information resources projects to the department for oversight. As
part of this oversight], the department shall provide additional
oversight services for major information resources projects,
including risk management, quality assurance services, independent
project monitoring, and project management. A state agency with a
project selected for oversight shall pay for oversight by the
department and quality assurance team based on a funding model
developed by the department. The department may contract with a
vendor to provide the necessary oversight at the department's
direction.
SECTION 3. Section 2054.158, Government Code, is amended to
read as follows:
Sec. 2054.158. QUALITY ASSURANCE TEAM; DUTIES. (a) The
comptroller, state auditor, Legislative Budget Board, and
department shall:
(1) create a quality assurance team to perform the
duties specified in this chapter and other law; [and]
(2) specify in writing the responsibilities of the
comptroller, state auditor, Legislative Budget Board, and
department in performing the duties; and
(3) create an automated project review system.
(b) The quality assurance team shall:
(1) develop and recommend policies and procedures to
improve state agency information resources technology projects;
[and]
(2) develop and recommend procedures to improve the
implementation of state agency information resources technology
projects by including considerations for best value and return on
investment; and
(3) provide annual training for state agency
procurement and contract management staff on best practices and
methodologies for information technology contracts.
(c) The state auditor serves on the quality assurance team
as an advisor.
SECTION 4. Section 2054.303(a), Government Code, is amended
to read as follows:
(a) For each proposed major information resources project
or major contract, a state agency must prepare:
(1) a business case providing the initial
justification for the project or contract, including the
anticipated return on investment in terms of cost savings and
efficiency for the project or contract; [and]
(2) a statewide impact analysis of the project's or
contract's effect on the state's common information resources
infrastructure, including the possibility of reusing code or other
resources; and
(3) in consultation with the department, a technical
architectural assessment of the project or contract.
SECTION 5. Section 2054.304, Government Code, is amended by
adding Subsections (d) and (e) to read as follows:
(d) In each project plan for a major information resources
project, the state agency shall consider incorporating into the
project the applicable best practices recommended in the quality
assurance team's annual report.
(e) A state agency contract for a major information
resources project must comply with the requirements in the
comptroller's contract management guide developed under Section
2262.051.
SECTION 6. Subchapter B, Chapter 2155, Government Code, is
amended by adding Sections 2155.090 and 2155.091 to read as
follows:
Sec. 2155.090. VENDOR AND EMPLOYEE INTERACTION AND
COMMUNICATION POLICY. (a) The comptroller shall update a contract
management guide to include policies on the interactions and
communication between employees of the state agency and a vendor
that contracts with the state agency or seeks to conduct business
with the state agency.
(b) This subtitle does not prohibit the exchange of
information between a state agency and a vendor related to future
solicitations or as necessary to monitor an existing contract.
Sec. 2155.091. CHIEF PROCUREMENT OFFICER: POWERS AND
DUTIES. (a) The comptroller shall employ a chief procurement
officer to serve as the chief procurement officer for this state.
(b) The chief procurement officer has authority over state
agency procurement, including the authority to:
(1) analyze state purchasing data to leverage state
purchasing power;
(2) provide functional support to state agencies;
(3) provide training on state purchasing and contract
management;
(4) review major contract solicitations for
information technology projects monitored by the quality assurance
team under Section 2054.158;
(5) review solicitations for major contracts reviewed
by the Contract Advisory Team under Section 2262.101;
(6) delegate to a state agency authority to contract
for the purchase of a good or service valued in an amount specified
by comptroller rule; and
(7) provide leadership on procurement issues.
(c) A state agency shall comply with any request for
information from the chief procurement officer necessary to conduct
the analysis authorized by Subsection (b)(1).
(d) The chief procurement officer shall coordinate with the
Department of Information Resources and the quality assurance team
to conduct a contract solicitation review required by Subsection
(a)(4) and make appropriate recommendations to the comptroller and
legislature based on the review. This section grants the chief
procurement officer authority only to review a contract
solicitation. The Department of Information Resources or the
appropriate state agency retains the authority to award a statewide
information resources contract as authorized by law.
(e) The chief procurement officer shall coordinate with the
Contract Advisory Team to conduct the review required by Section
2262.101. A state agency shall comply with any request for
information by the chief procurement officer that is necessary to
conduct the review.
SECTION 7. Subchapter D, Chapter 2155, Government Code, is
amended by adding Section 2155.205 to read as follows:
Sec. 2155.205. INTERSTATE PURCHASING. (a) Subject to
Section 2156.181 or other law, the comptroller may enter into
agreements to authorize state agencies and political subdivisions
of other states to purchase goods or services through comptroller
contracts.
(b) The comptroller may charge a reasonable administrative
fee to state agencies and political subdivisions of other states
that purchase a good or service under this section.
SECTION 8. Sections 2157.068(e-1) and (e-2), Government
Code, are amended to read as follows:
(e-1) A state agency contracting to purchase a commodity
item shall use the list maintained as required by Subsection (e) as
follows:
(1) for a contract with a value of $50,000 or less, the
agency may directly award the contract to a vendor included on the
list without submission of a request for pricing to other vendors on
the list;
(2) for a contract with a value of more than $50,000
but not more than $1 million [$150,000], the agency must submit a
request for pricing to at least three vendors included on the list
in the category to which the contract relates; and
(3) for a contract with a value of more than $1 million
[$150,000] but not more than $5 [$1] million, the agency must submit
a request for pricing to at least six vendors included on the list
in the category to which the contract relates or all vendors on the
schedule if the category has fewer than six vendors.
(e-2) A state agency may not enter into a contract to
purchase a commodity item if the value of the contract exceeds $5
[$1] million.
SECTION 9. Section 2261.252, Government Code, is amended by
adding Subsections (a-1), (e), and (f) to read as follows:
(a-1) A state agency employee or official is required to
disclose under Subsection (a) any potential conflict of interest
specified by state law or agency policy that is known by the
employee or official at any time during:
(1) the procurement process, from the initial request
for bids for the purchase of goods or services from a private vendor
until the completed final delivery of the goods or services; or
(2) the term of a contract with a private vendor.
(e) This section applies only to a contract for the purchase
of goods or services solicited through a purchase order if the
amount of the purchase order exceeds $25,000.
(f) Section 51.923, Education Code, governs the conflicts
of interest of the members of the governing board of an institution
of higher education, as those terms are defined by Section 61.003,
Education Code, and this section does not apply to those members.
SECTION 10. Section 2261.253, Government Code, is amended
by adding Subsections (e), (f), (g), and (h) to read as follows:
(e) A state agency that posts a contract on its Internet
website as required under this section shall redact from the posted
contract:
(1) information that is confidential under law;
(2) information the attorney general determines is
excepted from public disclosure under Chapter 552; and
(3) the social security number of any individual.
(f) The redaction of information under Subsection (e) does
not exempt the information from the requirements of Section 552.021
or 552.221.
(g) Subsection (a) does not apply to:
(1) a contract posted on the major contracts database
established under Section 322.020; or
(2) a contract of an institution of higher education
that is valued at less than $15,000 and paid with money other than
funds appropriated to the institution by this state.
(h) In this section, "institution of higher education" has
the meaning assigned by Section 61.003, Education Code, except that
the term does not include a public junior college.
SECTION 11. Section 2262.101(a), Government Code, is
amended to read as follows:
(a) The Contract Advisory Team is created to assist state
agencies in improving contract management practices by:
(1) reviewing and making recommendations on the
solicitation documents and contract documents for contracts of
state agencies that have a value of at least $5 [$10] million;
(2) reviewing any findings or recommendations made by
the state auditor, including those made under Section 2262.052(b),
regarding a state agency's compliance with the contract management
guide;
(3) providing recommendations to the comptroller
regarding:
(A) the development of the contract management
guide; and
(B) the training under Section 2262.053;
(4) providing recommendations and assistance to state
agency personnel throughout the contract management process;
(5) coordinating and consulting with the quality
assurance team established under Section 2054.158 on all contracts
relating to a major information resources project;
(6) developing and recommending policies and
procedures to improve state agency contract management practices;
(7) developing and recommending procedures to improve
state agency contracting practices by including consideration for
best value; and
(8) creating and periodically performing a risk
assessment to determine the appropriate level of management and
oversight of contracts by state agencies.
SECTION 12. Section 2262.102, Government Code, is amended
by adding Subsection (a-1) to read as follows:
(a-1) The chief procurement officer described by Section
2155.091 may add members to the team by designating members from
state agencies that agree to participate on the team. A state
agency may decline a request to participate on the team under this
subsection by submitting a written statement declining the request
to the chief procurement officer.
SECTION 13. Section 2269.056(b), Government Code, is
amended to read as follows:
(b) The governmental entity shall base its selection among
offerors on applicable criteria listed for the particular method
used. The governmental entity shall publish in the request for
proposals or qualifications:
(1) the criteria that will be used to evaluate the
offerors;
(2) [, and] the applicable weighted value for each
criterion; and
(3) for state agencies, a detailed methodology for
scoring each criterion.
SECTION 14. Section 2269.361(a), Government Code, is
amended to read as follows:
(a) A governmental entity shall request proposals from
design-build firms identified under Section 2269.359(c). A
response to a request for detailed proposals must be submitted on or
before the earlier of the time for submission requested by the
governmental entity or [firm must submit a proposal not later than]
the 180th day after the date the governmental entity makes a public
request for the proposals from the selected firms. The request for
proposals must include:
(1) a design criteria package;
(2) if the project site is identified, a geotechnical
baseline report or other information that provides the design-build
firm minimum geotechnical design parameters to submit a proposal;
(3) detailed instructions for preparing the technical
proposal and the items to be included, including a description of
the form and level of completeness of drawings expected; and
(4) the relative weighting of the technical and price
proposals and the formula by which the proposals will be evaluated
and ranked.
SECTION 15. Subchapter A, Chapter 8, Education Code, is
amended by adding Section 8.012 to read as follows:
Sec. 8.012. CONTRACT MANAGEMENT GUIDE. The agency shall
comply with the comptroller's contract management guide developed
under Section 2262.051, Government Code, in each contract between
the agency and a regional education service center established
under this chapter.
SECTION 16. Section 51.923(e), Education Code, is amended
to read as follows:
(e) For purposes of this section, a member of a governing
board has a substantial interest in a business entity if:
(1) the member owns one [10] percent or more of the
voting stock or shares of the business entity or owns either one
[10] percent or more or $15,000 or more of the fair market value of
the business entity;
(2) funds received by the member from the business
entity exceed one [10] percent of the member's gross income for the
previous year;
(3) the member is an officer of the business entity or
a member of the governing board of the business entity; or
(4) an individual related to the member in the first
degree by consanguinity or affinity, as determined under Chapter
573, Government Code, has an interest in the business entity as
described by Subdivision (1), (2), or (3).
SECTION 17. (a) Not later than January 1, 2018, the
comptroller shall:
(1) employ a chief procurement officer as required by
Section 2155.091, Government Code, as added by this Act; and
(2) adopt any rules necessary to implement the changes
in law made by this Act.
(b) Not later than January 1, 2018, each state agency shall
adopt a vendor and employee interaction and communication policy as
required by Section 2155.090, Government Code, as added by this
Act.
(c) The changes in law made by this Act apply only in
relation to a contract for which a state agency first advertises or
otherwise solicits bids, proposals, offers, or qualifications on or
after the effective date of this Act.
(d) Notwithstanding the other provisions of this Act,
Section 2269.361(a), Government Code, as amended by this Act,
applies to a contract entered into on or after the effective date of
this Act and for which a bid or other solicitation response was
submitted after June 21, 2017.
(e) Notwithstanding the other provisions of this Act,
Section 51.923, Education Code, as amended by this Act, applies
only to a contract or other transaction entered into on or after the
effective date of this Act. A contract or other transaction entered
into before the effective date of this Act is governed by the law in
effect on the date on which the contract or other transaction was
entered into, and the former law is continued in effect for that
purpose.
SECTION 18. This Act takes effect September 1, 2017.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 533 passed the Senate on
April 20, 2017, by the following vote: Yeas 31, Nays 0;
May 19, 2017, Senate refused to concur in House amendments and
requested appointment of Conference Committee; May 22, 2017, House
granted request of the Senate; May 28, 2017, Senate adopted
Conference Committee Report by the following vote: Yeas 30,
Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 533 passed the House, with
amendments, on May 17, 2017, by the following vote: Yeas 139,
Nays 0, two present not voting; May 22, 2017, House granted request
of the Senate for appointment of Conference Committee;
May 28, 2017, House adopted Conference Committee Report by the
following vote: Yeas 144, Nays 2, one present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor