Texas Senate Bill SB1067

Texas 2019 - 86th Regular

Caption

Relating to notice and approval of the assignment of vendor's rights under state agency contracts for services.

Impact

The implementation of SB1067 is designed to enhance accountability and oversight regarding the assignment of vendor rights in service contracts. By ensuring that assignments are subject to review, it aims to protect sensitive information and maintain the integrity of contracts awarded by state agencies. This measure is particularly relevant in the context of increasing concerns regarding data privacy and security, especially when sensitive personal data may be managed by third-party vendors. As a result, the law could lead to more stringent scrutiny of vendor assignments, thereby mitigating risks associated with potential breaches of sensitive information.

Summary

Senate Bill 1067, introduced by Senator Nelson, seeks to amend the Government Code by instituting a requirement for state agencies to approve any assignment of vendor rights under contracts for services. This bill specifically mandates that a vendor awarded such a contract cannot transfer their rights to third parties without obtaining prior approval from the responsible state agency. Furthermore, the bill emphasizes transparency by requiring state agencies to notify the Legislative Budget Board of proposed assignments, particularly when contracts pertain to major information resources projects or involve sensitive personal information stored or processed in foreign jurisdictions.

Sentiment

The sentiment regarding SB1067 appears to be generally supportive among legislators concerned with data privacy and contract integrity. Proponents emphasize the importance of ensuring that sensitive information remains secure and that state agencies retain oversight over contracted services. However, there may be concerns expressed by vendors about the potential bureaucratic hurdles imposed by the need for prior approval and notification, which could complicate business operations and responsiveness in the market.

Contention

Notable points of contention may arise around the interpretation of what constitutes 'sensitive personal information' and the processes involved in the approval of contract assignments. Vendors could argue that the bill may limit their operational flexibility and create delays in contract execution. Furthermore, the requirement for agencies to notify the Legislative Budget Board could be viewed as an additional regulatory burden. The balance between regulatory oversight and operational efficiency will likely be a key topic of discussion among stakeholders as the bill progresses.