Bill Text: TX HB579 | 2017-2018 | 85th Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to notice by a state agency regarding certain contracts for which the total value exceeds that of the initial contract.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2017-05-08 - Referred to Finance [HB579 Detail]
Download: Texas-2017-HB579-Comm_Sub.html
Bill Title: Relating to notice by a state agency regarding certain contracts for which the total value exceeds that of the initial contract.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2017-05-08 - Referred to Finance [HB579 Detail]
Download: Texas-2017-HB579-Comm_Sub.html
85R24498 YDB-D | |||
By: Turner | H.B. No. 579 | ||
Substitute the following for H.B. No. 579: | |||
By: Capriglione | C.S.H.B. No. 579 |
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relating to notice by a state agency regarding certain contracts | ||
for which the actual cost exceeds the contracted amount. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter F, Chapter 2261, Government Code, is | ||
amended by adding Section 2261.2555 to read as follows: | ||
Sec. 2261.2555. NOTICE OF CERTAIN COST THAT EXCEEDS | ||
CONTRACT AMOUNT; ENFORCEMENT. (a) For each state agency contract | ||
to purchase services from a vendor for which the actual cost of the | ||
services exceeds the amount contracted for the services by $1 | ||
million or more, the state agency in accordance with procedures | ||
established by the Legislative Budget Board shall provide notice of | ||
the excessive cost to: | ||
(1) the governor; | ||
(2) the lieutenant governor; | ||
(3) the speaker of the house of representatives; | ||
(4) each member of the legislature; | ||
(5) the board; and | ||
(6) the state auditor's office. | ||
(b) The state agency must provide the notice required under | ||
Subsection (a) not later than the 30th day after the date the actual | ||
cost exceeds the contract amount by $1 million. The notice must | ||
include: | ||
(1) the amount of the excessive cost; | ||
(2) the reason for the excessive cost; | ||
(3) any opportunity the state agency had to lessen the | ||
excessive cost or to purchase the services from another vendor | ||
after the excessive cost was disclosed; and | ||
(4) any other information the Legislative Budget Board | ||
determines relevant. | ||
(c) The Legislative Budget Board may assess an enforcement | ||
mechanism against a state agency that the board determines has | ||
failed to provide notice as required by this section. The | ||
enforcement mechanism must be assessed in accordance with the | ||
schedule developed under Subsection (d). | ||
(d) The Legislative Budget Board may establish a schedule of | ||
enforcement mechanisms that may be assessed against a state agency | ||
for a violation described by Subsection (c). 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 to purchase | ||
services for which the actual cost of the services is determined to | ||
exceed the amount contracted for the services by $1 million or more. | ||
(e) The Legislative Budget Board's director may recommend | ||
to the board an enforcement mechanism to be assessed against a state | ||
agency for a violation described by Subsection (c). The board may | ||
increase the severity of an enforcement mechanism assessed against | ||
a state agency for repeated violations. | ||
(f) The Legislative Budget Board may dismiss an enforcement | ||
mechanism assessed against a state agency by the board for a | ||
violation described by Subsection (c) on successful implementation | ||
of corrective action approved by the board. | ||
SECTION 2. The changes in law made by this Act apply only to | ||
a contract entered into on or after the effective date of this Act. | ||
A contract entered into before that date is governed by the law in | ||
effect immediately before the effective date of this Act, and the | ||
former law is continued in effect for that purpose. | ||
SECTION 3. This Act takes effect September 1, 2017. |