Texas 2019 86th Regular

Texas Senate Bill SB65 Comm Sub / Bill

Filed 03/14/2019

                    By: Nelson, Hall S.B. No. 65
 (In the Senate - Filed November 12, 2018; February 1, 2019,
 read first time and referred to Committee on Finance;
 March 14, 2019, reported adversely, with favorable Committee
 Substitute by the following vote:  Yeas 14, Nays 0; March 14, 2019,
 sent to printer.)
Click here to see the committee vote
 COMMITTEE SUBSTITUTE FOR S.B. No. 65 By:  Nelson


 A BILL TO BE ENTITLED
 AN ACT
 relating to oversight of and requirements applicable to state
 agency contracting and procurement.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Section 441.1855, Government Code, is amended to
 read as follows:
 Sec. 441.1855.  RETENTION OF CONTRACT AND RELATED DOCUMENTS
 BY STATE AGENCIES. (a)  Notwithstanding Section 441.185 or
 441.187, a state agency:
 (1)  shall retain in its records each contract entered
 into by the state agency and all contract solicitation documents
 related to the contract; and
 (2)  may destroy the contract and documents only after
 the seventh anniversary of the date:
 (A)  the contract is completed or expires; or
 (B)  all issues that arise from any litigation,
 claim, negotiation, audit, open records request, administrative
 review, or other action involving the contract or documents are
 resolved.
 (b)  A contract solicitation document that is an electronic
 document must be retained under Subsection (a) in the document's
 electronic form. A state agency may print and retain the document
 in paper form only if the agency provides for the preservation,
 examination, and use of the electronic form of the document in
 accordance with Subsection (a), including any formatting or
 formulas that are part of the electronic format of the document.
 (c)  In this section:
 (1)  "Contract solicitation document" includes any
 document, whether in paper form or electronic form, that is used by
 a state agency to evaluate responses to a competitive solicitation
 for a contract issued by the agency.
 (2)  "Electronic document" means:
 (A)  information that is created, generated,
 sent, communicated, received, or stored by electronic means; or
 (B)  the output of a word processing, spreadsheet,
 presentation, or business productivity application.
 SECTION 2.  Section 2054.003(10), Government Code, is
 amended to read as follows:
 (10)  "Major information resources project" means:
 (A)  any information resources technology project
 identified in a state agency's biennial operating plan whose
 development costs exceed $5 [$1] million and that:
 (i)  requires one year or longer to reach
 operations status;
 (ii)  involves more than one state agency;
 or
 (iii)  substantially alters work methods of
 state agency personnel or the delivery of services to clients; and
 (B)  any information resources technology project
 designated by the legislature in the General Appropriations Act as
 a major information resources project.
 SECTION 3.  Section 2054.055(b), Government Code, is amended
 to read as follows:
 (b)  The report must:
 (1)  assess the progress made toward meeting the goals
 and objectives of the state strategic plan for information
 resources management;
 (2)  describe major accomplishments of the state or a
 specific state agency in information resources management;
 (3)  describe major problems in information resources
 management confronting the state or a specific state agency;
 (4)  provide a summary of the total expenditures for
 information resources and information resources technologies by
 the state;
 (5)  make recommendations for improving the
 effectiveness and cost-efficiency of the state's use of information
 resources;
 (6)  describe the status, progress, benefits, and
 efficiency gains of the state electronic Internet portal project,
 including any significant issues regarding contract performance;
 (7)  provide a financial summary of the state
 electronic Internet portal project, including project costs and
 revenues;
 (8)  provide a summary of the amount and use of
 Internet-based training conducted by each state agency and
 institution of higher education;
 (9)  provide a summary of agency and statewide results
 in providing access to electronic and information resources to
 individuals with disabilities as required by Subchapter M;
 (10)  assess the progress made toward accomplishing the
 goals of the plan for a state telecommunications network and
 developing a system of telecommunications services as provided by
 Subchapter H; and
 (11)  identify proposed major information resources
 projects for the next state fiscal biennium, including project
 costs through stages of the project and across state fiscal years
 from project initiation to implementation[;
 [(12)     examine major information resources projects
 completed in the previous state fiscal biennium to determine the
 performance of the implementing state agency, cost and value
 effectiveness, timeliness, and other performance criteria
 necessary to assess the quality and value of the investment; and
 [(13)     examine major information resources projects
 after the second anniversary of the project's completion to
 determine progress toward meeting performance goals and operating
 budget savings].
 SECTION 4.  Section 2054.1181, Government Code, is amended
 by amending Subsection (b) and adding Subsection (j) to read as
 follows:
 (b)  In performing its duties under this section, the
 department shall:
 (1)  develop policies for the additional oversight of
 projects required by Subsection (a);
 (2)  implement project management standards;
 (3)  use effective risk management strategies;
 (4)  establish standards that promote the ability of
 information resources systems to operate with each other; and
 (5)  use industry best practices and process
 reengineering when feasible.
 (j)  A state agency may not amend a contract subject to
 review under Section 2054.158(b)(4) if the contract is at least 10
 percent over budget or the associated major information resources
 project is at least 10 percent behind schedule unless the agency:
 (1)  conducts a cost-benefit analysis with respect to
 canceling or continuing the project; and
 (2)  submits the analysis described by Subdivision (1)
 to the quality assurance team.
 SECTION 5.  Subchapter F, Chapter 2054, Government Code, is
 amended by adding Section 2054.137 to read as follows:
 Sec. 2054.137.  APPROVAL REQUIRED FOR ASSIGNMENT OF CERTAIN
 CONTRACTS. (a)  In this section, "sensitive personal information"
 has the meaning assigned by Section 521.002, Business & Commerce
 Code.
 (b)  This section applies only to a contract awarded by a
 state agency:
 (1)  for a major information resources project; or
 (2)  involving sensitive personal information.
 (c)  A vendor may not assign the vendor's rights under a
 contract to which this section applies to a third party unless the
 assignment is approved by the quality assurance team.
 (d)  A state agency that receives notice that a vendor
 proposes to make an assignment subject to approval under Subsection
 (c) shall notify the Legislative Budget Board and the quality
 assurance team of the proposed assignment.
 SECTION 6.  Section 2054.158, Government Code, is amended by
 amending Subsection (b) and adding Subsections (d) and (e) to read
 as follows:
 (b)  The quality assurance team shall:
 (1)  develop and recommend policies and procedures to
 improve the development, implementation, and return on investment
 for state agency information resources technology projects;
 (2)  except as provided by Subsection (e), review a
 state agency's business case prepared for a major information
 resources project under Section 2054.303 and make recommendations
 [develop and recommend procedures] to improve the implementation of
 the project [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;
 (4)  review and provide recommendations on the final
 negotiated terms of a contract for the development or
 implementation of a major information resources project with a
 value of at least $10 million; and
 (5)  provide a report to the governor, lieutenant
 governor, speaker of the house of representatives, and presiding
 officer of the standing committee of each house of the legislature
 with primary jurisdiction over appropriations by December 1 of each
 even-numbered year that includes:
 (A)  the performance indicator report required by
 Section 2054.159(a);
 (B)  a summary of any major issues identified in
 state agency reports submitted under Section 2054.159(f);
 (C)  an appendix containing any justifications
 submitted to the quality assurance team under Section 2054.160(d);
 and
 (D)  any additional information considered
 appropriate by the quality assurance team.
 (d)  The comptroller by rule shall develop guidelines for the
 additional or reduced monitoring of major information resources
 projects and associated contracts of state agencies during the
 periods described by Sections 2261.258(c)(2)(A), (B), and (C).
 (e)  The quality assurance team may waive the review
 authorized by Subsection (b)(2) for any project for which the team
 determines that a waiver of the review is appropriate because of the
 project's associated risk.
 SECTION 7.  Section 2054.159, Government Code, is amended by
 amending Subsection (b) and adding Subsections (f) and (g) to read
 as follows:
 (b)  The department by rule shall develop the performance
 indicators the quality assurance team is required to monitor under
 Subsection (a) and obtain the approval of each member of the quality
 assurance team for the performance indicators. In adopting rules
 under this subsection, the department shall consider applicable
 information technology industry standards.
 (f)  For each major information resources project, a state
 agency shall provide the quality assurance team any verification
 and validation report or quality assurance report related to the
 project not later than the 10th day after the date the agency
 receives a request for the report.
 (g)  The quality assurance team may request any information
 necessary to determine a major information resources project's
 potential risk.
 SECTION 8.  Subchapter G, Chapter 2054, Government Code, is
 amended by adding Section 2054.160 to read as follows:
 Sec. 2054.160.  REVIEW OF CONTRACT FOR MAJOR INFORMATION
 RESOURCES PROJECT. (a)  For each contract for the development or
 implementation of a major information resources project with a
 value of at least $10 million, a state agency shall:
 (1)  submit the proposed terms of the contract to the
 quality assurance team before the start of negotiations; and
 (2)  submit the final negotiated unsigned contract to
 the quality assurance team for review under Section 2054.158(b)(4).
 (b)  After the quality assurance team makes a recommendation
 under Section 2054.158(b)(4), a state agency shall:
 (1)  comply with the recommendation; or
 (2)  submit to the quality assurance team a written
 explanation regarding why the recommendation is not applicable to
 the contract under review.
 (c)  Before amending a contract related to a major
 information resources project, a state agency must notify the
 governor, lieutenant governor, speaker of the house of
 representatives, presiding officer of the standing committee of
 each house of the legislature with primary jurisdiction over
 appropriations, and quality assurance team if:
 (1)  the total value of the amended contract exceeds or
 will exceed the initial contract value by 10 percent or more; or
 (2)  the amendment requires the contractor to provide
 consultative services, technical expertise, or other assistance in
 defining project scope or deliverables.
 (d)  A state agency shall provide to the quality assurance
 team a justification for an amendment subject to Subsection (c).
 SECTION 9.  Section 2054.301, Government Code, is amended to
 read as follows:
 Sec. 2054.301.  APPLICABILITY[; DEFINITION]. [(a)]  This
 subchapter applies only to[:
 [(1)]  a major information resources project[; and
 [(2)  a major contract].
 [(b)     In this subchapter, "major contract" means a major
 contract as defined by Section 2262.001(4) under which a vendor
 will perform or manage an outsourced function or process.]
 SECTION 10.  Section 2054.302, Government Code, is amended
 by amending Subsection (b) and adding Subsection (d) to read as
 follows:
 (b)  The department[, in consultation with the Legislative
 Budget Board and state auditor's office,] shall develop and provide
 guidelines and forms for the documents required by this subchapter.
 (d)  The guidelines and forms developed under Subsection (b)
 must be approved by each member of the quality assurance team.
 SECTION 11.  Section 2054.303, Government Code, is amended
 by amending Subsections (a) and (c) and adding Subsection (d) 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)  if the state agency has been assigned the rating
 under Section 2261.258(a)(1):
 (A)  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
 (B) [(3)  in consultation with the department,] a
 technical architectural assessment of the project, if requested by
 the quality assurance team [or contract].
 (c)  The department shall use the analysis to ensure that the
 proposed project [or major contract] does not unnecessarily
 duplicate existing statewide information resources technology.
 (d)  After the quality assurance team makes a recommendation
 relating to a business case under Section 2054.158(b)(2), a state
 agency shall:
 (1)  comply with the recommendation; or
 (2)  submit to the quality assurance team a written
 explanation regarding why the recommendation is not applicable to
 the project under review.
 SECTION 12.  Sections 2054.304(a) and (b), Government Code,
 are amended to read as follows:
 (a)  A state agency shall develop a project plan for each
 major information resources project [or major contract].
 (b)  The [Except as provided by Subsection (c), the] state
 agency must file the project plan with the quality assurance team
 and the department before the agency[:
 [(1)]  spends more than 10 percent of allocated funds
 for the project [or major contract; or
 [(2)     first issues a vendor solicitation for the
 project or contract].
 SECTION 13.  Section 2054.305, Government Code, is amended
 to read as follows:
 Sec. 2054.305.  PROCUREMENT PLAN AND METHOD FOR MONITORING
 CONTRACTS. Before issuing a [vendor] solicitation for a [project
 or major] contract subject to review under Section 2054.158(b)(4),
 the state agency must develop, consistent with any acquisition plan
 provided in the guide developed under Section 2262.051 [department
 guidelines]:
 (1)  a procurement plan with anticipated service levels
 and performance standards for each contractor [vendor]; and
 (2)  a method to monitor changes to the scope of each
 contract.
 SECTION 14.  Section 2054.307(a), Government Code, is
 amended to read as follows:
 (a)  A state agency's executive director, or the executive
 director's designee, [information resources manager, designated
 project manager, and the agency employee in charge of information
 security for the agency] must approve [and sign]:
 (1)  each document required by this subchapter; and
 (2)  if the department requires the approval [and
 signatures], any other document related to this subchapter.
 SECTION 15.  Section 2102.005, Government Code, is amended
 to read as follows:
 Sec. 2102.005.  INTERNAL AUDITING REQUIRED. (a)  A state
 agency shall conduct a program of internal auditing that includes:
 (1)  an annual audit plan that is prepared using risk
 assessment techniques and that identifies the individual audits to
 be conducted during the year; and
 (2)  periodic audits of the agency's major systems and
 controls, including:
 (A)  accounting systems and controls;
 (B)  administrative systems and controls; and
 (C)  electronic data processing systems and
 controls.
 (b)  In conducting the internal auditing program under
 Subsection (a), a state agency shall consider methods for ensuring
 compliance with contract processes and controls and for monitoring
 agency contracts.
 SECTION 16.  Section 2155.089, Government Code, is amended
 to read as follows:
 Sec. 2155.089.  REPORTING VENDOR PERFORMANCE. (a)  After a
 contract is completed or otherwise terminated, each state agency
 shall review the vendor's performance under the contract. If the
 value of the contract exceeds $5 million, the state agency shall
 review the vendor's performance:
 (1)  at least once each year during the term of the
 contract; and
 (2)  at each key milestone identified for the contract.
 (b)  The state agency shall report to the comptroller, using
 the tracking system established by Section 2262.055, on the results
 of each [the] review conducted under Subsection (a) regarding a
 vendor's performance under a contract.
 (b-1)  A state agency may not extend a vendor's contract
 until after the agency reports the results of each review of the
 vendor conducted under Subsection (a)(1) or (2), as applicable, in
 the manner prescribed by Subsection (b).
 (c)  This section 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 Employees Retirement System of
 Texas [or the Teacher Retirement System of Texas] except for a
 contract with a nongovernmental entity for claims administration of
 a group health benefit plan under Subtitle H, Title 8, Insurance
 Code; or
 (3)  a contract entered into by:
 (A)  the comptroller under Section 2155.061; or
 (B)  the Department of Information Resources
 under Section 2157.068.
 SECTION 17.  Section 2155.144, Government Code, is amended
 by adding Subsection (b-2) to read as follows:
 (b-2)  The Health and Human Services Commission is delegated
 the authority to procure goods and services related to a contract
 for:
 (1)  a project to construct or expand a state hospital
 operated by a health and human services agency or a state supported
 living center as defined by Section 531.002, Health and Safety
 Code; or
 (2)  a deferred maintenance project for a health
 facility described by Subdivision (1).
 SECTION 18.  Section 2254.024(a), Government Code, is
 amended to read as follows:
 (a)  This subchapter does not apply to or discourage the use
 of consulting services provided by:
 (1)  practitioners of professional services described
 in Subchapter A;
 (2)  private legal counsel;
 (3)  investment counselors;
 (4)  actuaries;
 (5)  medical or dental services providers; or
 (6)  other consultants whose services are determined by
 the governing board of a retirement system trust fund to be
 necessary for the governing board to perform its constitutional
 fiduciary duties[, except that the governing board shall comply
 with Section 2254.030].
 SECTION 19.  The heading to Section 2254.029, Government
 Code, is amended to read as follows:
 Sec. 2254.029.  PUBLICATION IN STATE BUSINESS DAILY [TEXAS
 REGISTER] BEFORE ENTERING INTO MAJOR CONSULTING SERVICES CONTRACT.
 SECTION 20.  Section 2254.029(a), Government Code, is
 amended to read as follows:
 (a)  Not later than the 30th day before the date it enters
 into a major consulting services contract, a state agency must post
 in the state business daily under Section 2155.083 [shall file with
 the secretary of state for publication in the Texas Register]:
 (1)  an invitation for consultants to provide offers of
 consulting services;
 (2)  the name of the individual who should be contacted
 by a consultant that intends to make an offer;
 (3)  the closing date for the receipt of offers; and
 (4)  the procedure by which the state agency will award
 the contract.
 SECTION 21.  Section 2254.031(a), Government Code, is
 amended to read as follows:
 (a)  A state agency that intends to renew, amend, or extend a
 major consulting services contract shall[:
 [(1)     file with the secretary of state for publication
 in the Texas Register the information required by Section 2254.030
 not later than the 20th day after the date the contract is renewed
 if the renewal contract is not a major consulting services
 contract; or
 [(2)]  comply with Sections 2254.028 and 2254.029 if
 the contract after the renewal, amendment, or extension [contract]
 is a major consulting services contract.
 SECTION 22.  Subchapter B, Chapter 2261, Government Code, is
 amended by adding Sections 2261.0525 and 2261.054 to read as
 follows:
 Sec. 2261.0525.  CERTIFICATION OF VENDOR ASSESSMENT
 PROCESS. (a)  Before a state agency may award a contract to a
 vendor, the agency's procurement director must review the process
 and all documents used by the agency to assess each vendor who
 responded to the solicitation. The procurement director must
 certify in writing that:
 (1)  the agency assessed each vendor's response to the
 solicitation using the evaluation criteria published in the
 solicitation or, if applicable, the written evaluation criteria
 established by the agency; and
 (2)  the final calculation of scoring of responses was
 accurate.
 (b)  A state agency shall justify in writing any change in
 the scoring of a vendor that occurs following the initial
 assessment and scoring of responses. The written justification
 must be reviewed by the agency's procurement director. The
 procurement director shall certify in writing that the change in
 scoring was appropriate.
 (c)  A state agency's procurement director may delegate to a
 person whose position in the agency's procurement office is at
 least equal to the position of contract manager the certification
 authority under this section if the agency has met the conditions
 prescribed by the comptroller under Section 2262.053(h).
 (d)  A written certification or justification required by
 this section must be placed in the contract file.
 Sec. 2261.054.  STATEMENT REGARDING VENDOR SELECTION
 REQUIRED FOR CERTAIN CONTRACT AWARDS. If a state agency awards a
 contract to a vendor who did not receive the highest score in an
 assessment process certified under Section 2261.0525, the agency
 shall state in writing in the contract file the reasons for making
 the award.
 SECTION 23.  The heading to Subchapter E, Chapter 2261,
 Government Code, is amended to read as follows:
 SUBCHAPTER E.  CONTRACTOR OVERSIGHT AND LIABILITY
 SECTION 24.  Subchapter E, Chapter 2261, Government Code, is
 amended by adding Section 2261.204 to read as follows:
 Sec. 2261.204.  LIABILITY PROVISIONS. (a)  Each state
 agency shall include in the contract file for each of its contracts
 for goods or services subject to this chapter a written explanation
 of the agency's decision to include or not include in the contract a
 provision for liquidated damages or another form of liability for
 damages caused by the contractor.
 (b)  A contract file must also include, if applicable, a
 written justification for any provision in the contract that limits
 the liability of a contractor for damages.
 (c)  If an extension of a state agency's contract described
 by Subsection (a) modifies a provision for liquidated damages or
 another provision relating to a contractor's liability for damages,
 the agency must amend the written explanation or justification
 required by this section to include a justification for the
 modification.
 SECTION 25.  Section 2261.251(b), Government Code, is
 amended to read as follows:
 (b)  This subchapter does not apply to a contract of the
 Employees Retirement System of Texas [or the Teacher Retirement
 System of Texas] except for a contract with a nongovernmental
 entity for claims administration of a group health benefit plan
 under Subtitle H, Title 8, Insurance Code.
 SECTION 26.  Section 2261.254(d), Government Code, is
 amended to read as follows:
 (d)  The governing body or governing official of a state
 agency, as appropriate, may delegate to the executive director or a
 deputy executive director of the agency the approval and signature
 authority under Subsection (c).
 SECTION 27.  Subchapter F, Chapter 2261, Government Code, is
 amended by adding Sections 2261.258 and 2261.259 to read as
 follows:
 Sec. 2261.258.  MONITORING ASSESSMENT BY STATE AUDITOR.
 (a)  Before July 1 of each year, the state auditor shall assign one
 of the following ratings to each of the 25 largest state agencies in
 that state fiscal year as determined by the Legislative Budget
 Board:
 (1)  additional monitoring warranted;
 (2)  no additional monitoring warranted; or
 (3)  reduced monitoring warranted.
 (b)  In assigning a rating to a state agency as required
 under Subsection (a), the state auditor shall consider the
 following information, as applicable:
 (1)  results of an audit of:
 (A)  the agency conducted by the state auditor
 under Chapter 321; or
 (B)  the agency's contracts and contract
 processes and controls conducted by the agency's internal auditors
 or by the state auditor;
 (2)  results of a purchase audit conducted by the
 comptroller under Section 2155.325;
 (3)  information reported by the quality assurance team
 established under Section 2054.158 relating to the agency's major
 information resources projects;
 (4)  information from the Contract Advisory Team
 established under Subchapter C, Chapter 2262, relating to reviews
 of the agency's contracts and contract solicitation documents;
 (5)  information relating to agency findings from a
 review of the agency conducted by:
 (A)  the Legislative Budget Board; and
 (B)  the Sunset Advisory Commission under Chapter
 325 (Texas Sunset Act);
 (6)  the agency's self-reported improvements to the
 agency's contracting processes; and
 (7)  any additional internal analysis provided by the
 agency.
 (c)  On or before September 1 of each year, the state auditor
 shall submit to the comptroller a report that:
 (1)  lists each state agency that was assigned a rating
 under Subsection (a); and
 (2)  for a state agency that was assigned a rating under
 Subsection (a)(1) or (3), specifies that additional or reduced
 monitoring, as applicable, is required during one or more of the
 following periods:
 (A)  contract solicitation development;
 (B)  contract formation and award; or
 (C)  contract management and termination.
 (d)  The comptroller by rule shall develop guidelines for the
 additional or reduced monitoring of a state agency during the
 periods described by Subsections (c)(2)(A), (B), and (C) for a
 contract that falls under the monetary thresholds for review or
 monitoring by the Contract Advisory Team or the quality assurance
 team.
 (e)  The state auditor may request any information necessary
 from a state agency, the Contract Advisory Team, or the quality
 assurance team to comply with the requirements of this section, and
 the agency or team, as applicable, shall provide the requested
 information.
 (f)  The state auditor and the comptroller shall share
 information as necessary to fulfill their respective duties under
 this section.
 (g)  The state auditor's duties under this section must be
 included in the audit plan and approved by the legislative audit
 committee under Section 321.013.
 Sec. 2261.259.  ELECTRONIC COMPLIANCE SUBMISSIONS. A state
 agency that uses the centralized accounting and payroll system
 authorized under Sections 2101.035 and 2101.036 or an alternative
 computer software system for compliance requirements related to the
 procurement of goods or services may electronically submit to the
 comptroller using that computer software system a written
 justification, verification, notification, or acknowledgement
 required under this chapter or Subchapter B, Chapter 2155.
 SECTION 28.  Subchapter B, Chapter 2262, Government Code, is
 amended by adding Section 2262.053 to read as follows:
 Sec. 2262.053.  CONTRACT FILE CHECKLIST; CERTIFICATION OF
 AGENCY COMPLIANCE. (a)  Each state agency shall include in the
 contract file for each of its contracts a checklist to ensure the
 agency's compliance with state laws and rules relating to the
 acquisition of goods and services by the agency.
 (b)  The comptroller shall develop and periodically update a
 model contract file checklist and make the checklist available for
 use by state agencies.  The comptroller shall periodically update
 the checklist.
 (c)  The comptroller may adopt rules necessary to develop or
 update the model contract file checklist.
 (d)  The model contract file checklist must address each
 stage of the procurement process and must include, at a minimum, a
 description of:
 (1)  the documents that are required to be maintained
 during each stage of the procurement process in accordance with
 applicable state laws and comptroller rules; and
 (2)  the procedures and documents that are required to
 be completed during the following stages of the procurement
 process:
 (A)  contract solicitation development;
 (B)  contract formation and award; and
 (C)  contract management.
 (e)  A state agency may develop its own contract file
 checklist based on the procurement and contracting needs of that
 agency, provided that the checklist developed by the agency is
 consistent with the comptroller's model contract file checklist and
 meets any requirements established by comptroller rule under
 Subsection (c).
 (f)  Before a state agency awards a contract to a vendor for
 the purchase of goods or services, the agency's contract manager or
 procurement director must:
 (1)  review the contents of the contract file for the
 contract, including the checklist, to ensure that all documents
 required by state law or applicable agency rules are complete and
 present in the file; and
 (2)  certify in a written document to be included in the
 contract file that the review required under Subdivision (1) was
 completed.
 (g)  A state agency's contract manager or procurement
 director may delegate to a person in the agency's procurement
 office the certification authority under this section.
 (h)  The comptroller by rule shall prescribe the conditions
 under which a state agency's contract manager or procurement
 director:
 (1)  must make the certification required by Subsection
 (f); and
 (2)  may delegate the certification authority under
 this section.
 SECTION 29.  The following provisions of the Government Code
 are repealed:
 (1)  Section 2054.1181(f);
 (2)  Section 2054.1184;
 (3)  Sections 2054.159(c) and (d);
 (4)  Section 2054.304(c);
 (5)  Section 2254.030;
 (6)  Section 2254.031(c); and
 (7)  Section 2254.033(b).
 SECTION 30.  As soon as practicable after the effective date
 of this Act, the comptroller of public accounts, the Department of
 Information Resources, and each affected state agency as necessary,
 shall adopt the rules, processes, and procedures and take the
 actions necessary to implement the changes in law made by this Act.
 SECTION 31.  (a)  Except as provided by Subsections (b) and
 (c), this Act applies only in relation to a contract:
 (1)  for which a state agency first advertises or
 otherwise solicits bids, proposals, offers, or qualifications on or
 after the effective date of this Act;
 (2)  that is extended or modified on or after the
 effective date of this Act; or
 (3)  for which a change order is submitted on or after
 the effective date of this Act.
 (b)  Section 2054.137, Government Code, as added by this Act,
 applies only to a contract entered into or renewed on or after the
 effective date of this Act.
 (c)  The changes in law made by this Act that apply to a major
 consulting services contract apply only to a major consulting
 services contract entered into or amended, modified, renewed, or
 extended on or after the effective date of this Act.  A major
 consulting services 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 32.  Notwithstanding Section 2261.258, Government
 Code, as added by this Act, the first report required under that
 section is due on or before September 1, 2020.
 SECTION 33.  This Act takes effect September 1, 2019.
 * * * * *