Bill Text: TX HB20 | 2017-2018 | 85th Legislature | Engrossed
Bill Title: Relating to the review, oversight, and reporting of certain state agency contracts and the assessment of certain state agency projects.
Spectrum: Slight Partisan Bill (Republican 24-8)
Status: (Engrossed - Dead) 2017-05-10 - Referred to Finance [HB20 Detail]
Download: Texas-2017-HB20-Engrossed.html
By: Capriglione, Bonnen of Brazoria, Howard, | H.B. No. 20 | |
Walle, et al. |
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relating to the review, oversight, and reporting of certain state | ||
agency contracts and the assessment of certain state agency | ||
projects. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. The heading to Section 322.020, Government Code, | ||
is amended to read as follows: | ||
Sec. 322.020. [ |
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SECTION 2. Section 322.020, Government Code, is amended by | ||
amending Subsections (a), (b), and (c) and adding Subsections | ||
(b-1), (b-2), (b-3), and (b-4) to read as follows: | ||
(a) In this section[ |
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(1) "Contract" means a contract, grant, or agreement | ||
for the purchase or sale of goods or services that is entered into | ||
or paid for, wholly or partly, by a state agency or an amendment, | ||
modification, renewal, or extension of the contract, grant, or | ||
agreement. The term includes a revenue generating contract, an | ||
interagency or interlocal grant or agreement, a purchase order, or | ||
other written expression of terms of agreement. [ |
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(2) "Institution of higher education" has the meaning | ||
assigned by Section 61.003, Education Code. | ||
(3) "State agency" has the meaning assigned by Section | ||
2054.003 [ |
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(b) This section applies only to: | ||
(1) a major consulting services contract, as defined | ||
by Section 2254.021; and | ||
(2) a contract, including any amendment, | ||
modification, renewal, or extension of the contract, that has a | ||
value that exceeds or is reasonably expected to exceed $50,000, | ||
other than a contract of an institution of higher education that: | ||
(A) is paid for solely with institutional funds | ||
or hospital and clinic fees, as described by Section 51.009, | ||
Education Code; or | ||
(B) is for sponsored research. | ||
(b-1) Not later than the 30th calendar day after the date a | ||
contract is awarded, amended, modified, renewed, or extended, a | ||
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the Legislative Budget Board. The written notice must include | ||
copies of the following documents: | ||
(1) each [ |
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including each amendment, modification, renewal, or extension of | ||
the contract; and | ||
(2) each request for proposal, invitation to bid, or | ||
comparable solicitation related to the [ |
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(b-2) The requirement to provide copies of documents under | ||
Subsection (b-1) 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 Texas Department of | ||
Transportation that: | ||
(A) relates to highway construction or | ||
engineering; or | ||
(B) is subject to Section 201.112, | ||
Transportation Code. | ||
(b-3) A state agency may redact from the written notice | ||
provided under Subsection (b-1) information excepted from | ||
disclosure under Chapter 552, including information that may be | ||
used to perpetrate fraud on the agency, such as: | ||
(1) certain commercial or financial information; | ||
(2) credit card, debit card, charge card, and access | ||
device numbers; and | ||
(3) government information related to security or | ||
infrastructure issues for computers. | ||
(b-4) For an institution of higher education, Subsection | ||
(b-1) applies only if: | ||
(1) for a major information system, as defined by | ||
Section 2054.0965, the value exceeds $1 million and the contract is | ||
paid with appropriated funds; | ||
(2) for a construction project, the contract is paid | ||
with appropriated funds; or | ||
(3) for professional services, the contract is for | ||
services other than physician or optometric service and is paid | ||
with appropriated funds. | ||
(b-5) The redaction of information under this subsection | ||
does not exempt the information from the requirements of Section | ||
552.021 or 552.221. | ||
(c) The Legislative Budget Board shall post on the Internet | ||
a copy of: | ||
(1) each [ |
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modification, renewal, or extension of the contract [ |
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(2) each request for proposal, invitation to bid, or | ||
comparable solicitation related to the [ |
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SECTION 3. Chapter 322, Government Code, is amended by | ||
adding Sections 322.021, 322.0211, and 322.0212 to read as follows: | ||
Sec. 322.021. STATE AGENCY CONTRACT OVERSIGHT. (a) In this | ||
section: | ||
(1) "Board" means the Legislative Budget Board. | ||
(2) "Institution of higher education" has the meaning | ||
assigned by Section 61.003, Education Code. | ||
(3) "State agency" has the meaning assigned by Section | ||
2054.003. | ||
(b) Subject to Subsection (c), the board may review state | ||
agency contracts to determine compliance with the contract | ||
management guide developed under Section 2054.554, the | ||
comptroller's procurement policy manuals, and each applicable | ||
state contracting law, rule, policy, and procedure. The authority | ||
to review a state agency contract under this subsection applies | ||
regardless of the source of funds or method of financing for the | ||
contract. | ||
(c) This section does not apply to a contract of an | ||
institution of higher education that is paid for solely with | ||
institutional funds or hospital and clinic fees, as described by | ||
Section 51.009, Education Code. The board shall review the | ||
contract management handbook developed by an institution of higher | ||
education as required by Section 51.9337(b)(3), Education Code, | ||
when determining the institution's compliance with contracting | ||
rules and procedures. | ||
(d) Board staff may request, and are entitled to obtain, any | ||
document related to a contract reviewed under this section or to a | ||
purchase under the contract. | ||
(e) Each state agency shall cooperate with the board in | ||
conducting a contract review under this section and in resolving | ||
any issue resulting from the contract review. | ||
Sec. 322.0211. NOTICE OF VIOLATION OF STATE CONTRACTING | ||
LAW; CORRECTIVE ACTION PLAN. (a) If the Legislative Budget Board | ||
determines under Section 322.021 that a state agency contract | ||
violates the contract management guide, the comptroller's | ||
procurement policy manuals, or a state contracting law, rule, | ||
policy, or procedure, the board's director shall provide notice of | ||
the violation to the agency. | ||
(b) A state agency shall provide a written response to the | ||
notice provided under Subsection (a) not later than the 10th | ||
business day after the date the agency receives the notice. | ||
(c) If the board determines that the response provided by a | ||
state agency under Subsection (b) does not adequately address or | ||
resolve the violation determined under Subsection (a), the board's | ||
director may provide to the board and the state agency, | ||
comptroller, and governor written notice of the violation. A | ||
violation notice provided under this subsection must: | ||
(1) detail the specific provision violated by the | ||
contract; | ||
(2) recommend actions to be taken to address the | ||
violation and any identified risks related to the contract; | ||
(3) list potential remedies for the violation; and | ||
(4) state any enforcement mechanism that may be | ||
assessed under Section 322.0212 for the violation. | ||
(d) A state agency that receives notice of a violation under | ||
Subsection (c) shall develop a written corrective action plan | ||
consistent with the board's recommendations and provide the plan to | ||
the board not later than the 30th calendar day after the date the | ||
agency receives the notice. | ||
(e) The board may monitor a state agency's implementation of | ||
the corrective action plan. | ||
Sec. 322.0212. ENFORCEMENT. (a) The Legislative Budget | ||
Board may assess an enforcement mechanism against a state agency | ||
that the board determines under Section 322.021 is in violation of | ||
the contract management guide, the comptroller's procurement | ||
policy manuals, or a state contracting law, rule, policy, or | ||
procedure. The enforcement mechanism must be assessed in | ||
accordance with the schedule developed under Subsection (b). | ||
(b) The board may establish a schedule of enforcement | ||
mechanisms that may be assessed against a state agency for a | ||
violation described by Subsection (a). The enforcement mechanisms | ||
may include: | ||
(1) enhanced monitoring of the state agency's | ||
contracts by board personnel; | ||
(2) required consultation with the Contract Advisory | ||
Team established under Section 2262.101 or the quality assurance | ||
team established under Section 2054.158 before issuance of a | ||
contract by the state agency; | ||
(3) targeted audits by the State Auditor's Office at | ||
the request of the board; and | ||
(4) recommended cancellation of a contract determined | ||
to contain a violation described by Section 322.0211(a). | ||
(c) The board's director may recommend to the board an | ||
enforcement mechanism to be assessed against a state agency for a | ||
contract violation. | ||
(d) The board may increase the severity of an enforcement | ||
mechanism assessed against a state agency for repeated contract | ||
violations described by Section 322.0211(a). | ||
(e) The board may dismiss an enforcement mechanism assessed | ||
against a state agency by the board for a contract violation | ||
described by Section 322.0211(a) on successful implementation of a | ||
corrective action plan by the agency under Section 322.0211(d). | ||
SECTION 4. Section 2054.0965, Government Code, is amended | ||
by amending Subsection (b) and adding Subsection (c) to read as | ||
follows: | ||
(b) Except as otherwise modified by rules adopted by the | ||
department, the review must include: | ||
(1) an inventory of the agency's major information | ||
systems[ |
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logistical components related to deployment of information | ||
resources as prescribed by the department; | ||
(2) an inventory of the agency's major databases and | ||
applications; | ||
(3) a description of the agency's existing and planned | ||
telecommunications network configuration; | ||
(4) an analysis of how information systems, | ||
components, databases, applications, and other information | ||
resources have been deployed by the agency in support of: | ||
(A) applicable achievement goals established | ||
under Section 2056.006 and the state strategic plan adopted under | ||
Section 2056.009; | ||
(B) the state strategic plan for information | ||
resources; and | ||
(C) the agency's business objectives, mission, | ||
and goals; | ||
(5) agency information necessary to support the state | ||
goals for interoperability and reuse; and | ||
(6) confirmation by the agency of compliance with | ||
state statutes, rules, and standards relating to information | ||
resources. | ||
(c) In this section, "major information system" includes: | ||
(1) one or more computers that in the aggregate cost | ||
more than $100,000; | ||
(2) a service related to computers, including computer | ||
software, that costs more than $100,000; and | ||
(3) a telecommunications apparatus or device that | ||
serves as a voice, data, or video communications network for | ||
transmitting, switching, routing, multiplexing, modulating, | ||
amplifying, or receiving signals on the network and costs more than | ||
$100,000. | ||
SECTION 5. Subchapter F, Chapter 2054, Government Code, is | ||
amended by adding Section 2054.1184 to read as follows: | ||
Sec. 2054.1184. ASSESSMENT OF MAJOR INFORMATION RESOURCES | ||
PROJECT. (a) A state agency proposing to spend appropriated funds | ||
for a major information resources project must first conduct an | ||
execution capability assessment to: | ||
(1) determine the agency's capability for implementing | ||
the project; | ||
(2) reduce the agency's financial risk in implementing | ||
the project; and | ||
(3) increase the probability of the agency's | ||
successful implementation of the project. | ||
(b) A state agency shall submit to the department, the | ||
quality assurance team established under Section 2054.158, and the | ||
Legislative Budget Board a detailed report that identifies the | ||
agency's organizational strengths and any weaknesses that will be | ||
addressed before the agency initially spends appropriated funds for | ||
a major information resources project. | ||
(c) A state agency may contract with an independent third | ||
party to conduct the assessment under Subsection (a) and prepare | ||
the report described by Subsection (b). | ||
SECTION 6. Section 2261.253, Government Code, is amended to | ||
read as follows: | ||
Sec. 2261.253. REQUIRED POSTING OF [ |
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Each [ |
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website's home page a link to the Legislative Budget Board's | ||
contracts database established under Section 322.020. [ |
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(b) For each contract in an amount of $15,000 or more for the | ||
purchase of goods or services from a private vendor that is paid for | ||
solely with institutional funds or hospital and clinic fees, as | ||
described by Section 51.009, Education Code, an institution of | ||
higher education, as defined by Section 61.003, Education Code, | ||
shall post on the institution's Internet website: | ||
(1) the contract, including a contract that does not | ||
require competitive bidding before selection of the contractor, | ||
until the contract expires or is completed; | ||
(2) for a contract that does not require competitive | ||
bidding, the statutory or other authority that allows the contract | ||
to be entered into without compliance with competitive bidding | ||
procedures; and | ||
(3) the request for proposals related to a | ||
competitively bid contract posted under Subdivision (1), until the | ||
contract is completed [ |
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(c) Each state agency by rule shall establish a procedure to | ||
identify each contract that requires enhanced contract or | ||
performance monitoring and submit information on the contract to | ||
the agency's governing body or, if the agency is not governed by a | ||
multimember governing body, the officer who governs the agency. | ||
The agency's contract management office or procurement director | ||
shall immediately notify the agency's governing body or governing | ||
official, as appropriate, of any serious issue or risk that is | ||
identified with respect to a contract monitored under this | ||
subsection. | ||
(d) An institution of higher education may redact | ||
information from the contracts posted on the institution's Internet | ||
website under Subsection (b) to the same extent as permitted under | ||
Section 322.022(b-3). The redaction of information under this | ||
subsection does not exempt the information from the requirements of | ||
Section 552.021 or 552.221. | ||
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SECTION 7. Section 2262.101, Government Code, is amended by | ||
adding Subsection (g) to read as follows: | ||
(g) The team shall provide to the Legislative Budget Board a | ||
copy of: | ||
(1) each recommendation made under Subsection (a)(1) | ||
on a solicitation or contract document not later than the 10th | ||
calendar day after the date the team makes the recommendation; and | ||
(2) any written explanation submitted by a state | ||
agency under Subsection (d)(2) stating the reason a recommendation | ||
is not applicable to the contract under review not later than the | ||
10th calendar day after the date the team receives the explanation. | ||
SECTION 8. (a) Sections 2262.102(a) and (d), Government | ||
Code, are amended to read as follows: | ||
(a) The team consists of the following [ |
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(1) one member from the Health and Human Services | ||
Commission; | ||
(2) one member from the comptroller's office; | ||
(3) one member from the Department of Information | ||
Resources; | ||
(4) one member from the Texas Facilities Commission; | ||
(5) one member from the governor's office; and | ||
(6) one or more members [ |
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comptroller considers necessary [ |
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(d) The comptroller may adopt rules regarding the | ||
membership of the team, as appropriate, to implement this section | ||
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(b) As soon as practicable after the effective date of this | ||
Act, the comptroller shall designate one or more members to the | ||
Contract Advisory Team as provided by Section 2262.102, Government | ||
Code, as amended by this Act. | ||
SECTION 9. The following sections of the Government Code | ||
are repealed: | ||
(1) Section 322.020(f); | ||
(2) Section 2054.008; | ||
(3) Section 2166.2551; | ||
(4) Section 2254.006; and | ||
(5) Section 2254.0301. | ||
SECTION 10. The changes in law made by this Act apply to a | ||
contract entered into or amended, modified, renewed, or extended on | ||
or after the effective date of this Act. A 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 11. This Act takes effect September 1, 2017. |