Bill Text: TX SB2321 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to issues involving the administration or finances of state entities.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-03-21 - Referred to Finance [SB2321 Detail]
Download: Texas-2019-SB2321-Introduced.html
86R12129 AAF-D | ||
By: Creighton | S.B. No. 2321 |
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relating to issues involving the administration or finances of | ||
state entities. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 322.008, Government Code, is amended by | ||
adding Subsection (a-1) to read as follows: | ||
(a-1) For each state agency, institution, or other entity to | ||
which an appropriation is proposed by a general appropriations | ||
bill, the bill must include for each specific program or activity | ||
administered by the agency, institution, or entity: | ||
(1) a description of the program or activity; | ||
(2) the amount of the proposed appropriation; and | ||
(3) a statement that specifies the source of the | ||
proposed appropriation for the program or activity. | ||
SECTION 2. The heading to Section 322.020, Government Code, | ||
is amended to read as follows: | ||
Sec. 322.020. [ |
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SECTION 3. Section 322.020, Government Code, is amended by | ||
amending Subsections (a), (b), and (c) and adding Subsections | ||
(b-1), (b-2), (b-3), (b-4), and (b-5) 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 June 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 section 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 4. 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 5. Chapter 322, Government Code, is amended by | ||
adding Section 322.025 to read as follows: | ||
Sec. 322.025. REPORT ON SPENDING REDUCTION MEASURES. (a) | ||
Not later than September 1 of each even-numbered year, each entity | ||
that is required to submit a legislative appropriations request | ||
shall submit to the board a detailed report identifying measures by | ||
which the entity may reduce its expenditures from general revenue | ||
and general revenue-dedicated accounts by 1 percent, 5 percent, and | ||
10 percent in the next state fiscal biennium. | ||
(b) An entity described by Subsection (a) shall rank each of | ||
the 1 percent, 5 percent, and 10 percent spending reduction | ||
measures from highest to lowest priority. The entity shall assign | ||
higher priority to measures that: | ||
(1) have fewer consequences for the entity's programs | ||
and goals; | ||
(2) have less impact on populations served by the | ||
entity; or | ||
(3) eliminate redundancies and inefficiencies. | ||
(c) An entity described by Subsection (a) may not include in | ||
the report a spending reduction measure that would violate the | ||
state or federal constitution. | ||
(d) The board may exempt certain expenditures from | ||
consideration under this section. | ||
(e) The board may issue guidance regarding: | ||
(1) standards for reports required by this section, | ||
including format, content, and methods of submission; and | ||
(2) prioritizing spending reduction measures under | ||
Subsection (b). | ||
(f) The board may require an entity to submit the report | ||
under this section with the entity's legislative appropriations | ||
request. | ||
(g) Not later than December 1 of each even-numbered year, | ||
the board shall make reports received under this section available | ||
to the governor, lieutenant governor, speaker of the house of | ||
representatives, and members of the legislature. | ||
SECTION 6. Chapter 325, Government Code, is amended by | ||
adding Section 325.026 to read as follows: | ||
Sec. 325.026. REPORT TO SENATE COMMITTEE. (a) A | ||
governmental entity subject to this chapter shall deliver a report | ||
to the legislature that: | ||
(1) explains changes to the entity's rules made since | ||
the commission last completed a review of the entity and the | ||
consequences of those changes; and | ||
(2) provides a justification for making the changes | ||
described by Subdivision (1). | ||
(b) The report required under Subsection (a) must be | ||
delivered not later than November 30 of: | ||
(1) the sixth year after the year in which the | ||
commission completed a review of the entity if the entity was | ||
continued for a period of 12 years under Section 325.015; or | ||
(2) if the entity was continued for a period other than | ||
12 years under Section 325.015, the year that is halfway through the | ||
entity's continuance period. | ||
(c) A legislative committee may compel testimony by a | ||
representative of a governmental entity that is not a state agency | ||
regarding the subject of the report in the same way the committee | ||
may compel testimony from a representative of a state agency. | ||
SECTION 7. Sections 2001.0045(a), (b), and (c), Government | ||
Code, are amended to read as follows: | ||
(a) In this section, "state agency" has the meaning assigned | ||
by Section 2001.006 [ |
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(b) [ |
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state agency may not adopt a proposed rule for which the fiscal note | ||
for the notice required by Section 2001.024 states that the rule | ||
imposes a cost on any regulated person [ |
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state agency, a special district, and [ |
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unless on or before the effective date of the proposed rule the | ||
state agency: | ||
(1) repeals two state agency rules [ |
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impose [ |
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cost imposed on the person [ |
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rule; [ |
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(2) amends two state agency rules [ |
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the total costs [ |
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an amount [ |
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person [ |
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(3) repeals one state agency rule and amends one state | ||
agency rule to decrease the total costs imposed on the person by an | ||
amount equal to or greater than the cost imposed on the person by | ||
the proposed rule. | ||
(c) This section does not apply to a rule that: | ||
(1) relates to state agency procurement; | ||
(2) is amended to: | ||
(A) reduce the burden or responsibilities | ||
imposed on a regulated person [ |
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(B) decrease the person's [ |
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compliance with the rule; | ||
(3) is adopted in response to a natural disaster; or | ||
(4) [ |
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Protective Services[ |
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SECTION 8. 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 9. The heading to Section 2261.253, Government | ||
Code, is amended to read as follows: | ||
Sec. 2261.253. REQUIRED POSTING OF [ |
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SECTION 10. Sections 2261.253(a), (b), and (d), Government | ||
Code, are amended to read as follows: | ||
(a) Each [ |
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Internet 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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(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 322.020(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 11. 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 12. 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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SECTION 13. The heading to Chapter 2264, Government Code, | ||
is amended to read as follows: | ||
CHAPTER 2264. CERTAIN RESTRICTIONS ON [ |
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SUBSIDIES AND STATE CONTRACTS | ||
SECTION 14. Section 2264.101, Government Code, is | ||
transferred to Subchapter B, Chapter 2264, Government Code, | ||
redesignated as Section 2264.054, Government Code, and amended to | ||
read as follows: | ||
Sec. 2264.054 [ |
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local taxing jurisdiction, or economic development corporation, or | ||
the attorney general on behalf of the state or a state agency, may | ||
bring a civil action to recover any amounts owed to the public | ||
agency, state or local taxing jurisdiction, or economic development | ||
corporation under this subchapter [ |
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(b) The public agency, local taxing jurisdiction, economic | ||
development corporation, or attorney general, as applicable, shall | ||
recover court costs and reasonable attorney's fees incurred in an | ||
action brought under Subsection (a). | ||
(c) A business is not liable for a violation of this | ||
subchapter [ |
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the business, or by a person with whom the business contracts. | ||
SECTION 15. The heading to Subchapter C, Chapter 2264, | ||
Government Code, is amended to read as follows: | ||
SUBCHAPTER C. E-VERIFY PROGRAM [ |
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SECTION 16. Subchapter C, Chapter 2264, Government Code, is | ||
amended by adding Sections 2264.1011, 2264.102, 2264.103, and | ||
2264.104 to read as follows: | ||
Sec. 2264.1011. DEFINITIONS. In this subchapter: | ||
(1) "E-verify program" has the meaning assigned by | ||
Section 673.001. | ||
(2) "State agency" has the meaning assigned by Section | ||
2103.001. | ||
Sec. 2264.102. VERIFICATION BY CONTRACTORS. (a) A state | ||
agency may not award a contract for goods or services within this | ||
state to a contractor unless the contractor registers with and | ||
participates in the E-verify program to verify employee | ||
information. The contractor must continue to participate in the | ||
program during the term of the contract. | ||
(b) Each contract with a state agency must include the | ||
following statement: | ||
"______________ (name of contractor) certifies that | ||
__________ (name of contractor) is not ineligible to receive this | ||
contract under Subchapter C, Chapter 2264, Government Code, and | ||
acknowledges that if this certification is inaccurate or becomes | ||
inaccurate during the term of the contract, the contractor may be | ||
barred from participating in state contracts." | ||
(c) If a state agency determines that a contractor was | ||
ineligible to have the contract awarded under Subsection (a) or | ||
that a contractor has ceased participation in the E-verify program | ||
during the term of the contract, the state agency shall refer the | ||
matter to the comptroller for action. | ||
(d) Each state agency shall develop procedures for the | ||
administration of this section. | ||
Sec. 2264.103. BARRING FROM STATE CONTRACTS. (a) Using | ||
procedures prescribed under Section 2155.077, the comptroller | ||
shall bar a contractor from participating in state contracts if a | ||
state agency under Section 2264.102 determines that the contractor: | ||
(1) was awarded a contract in violation of Section | ||
2264.102; or | ||
(2) has ceased participation in the E-verify program | ||
during the term of the contract. | ||
(b) Debarment under this section is for a period of up to | ||
five years. | ||
(c) A contractor who registers with and participates in the | ||
E-verify program as provided by Section 2264.102 may not be barred | ||
under this section if, as a result of receiving inaccurate | ||
verification information from the E-verify program, the contractor | ||
hires or employs a person in violation of 8 U.S.C. Section 1324a. | ||
Sec. 2264.104. AFFIRMATIVE DEFENSE; DISCRIMINATION | ||
PROHIBITED. (a) It is an affirmative defense to a civil action for | ||
damages or the imposition of a civil penalty for an employer's | ||
refusal to hire or employ a person based on the employer's | ||
participation in the E-verify program as required by this | ||
subchapter that the employer participated in the E-verify program | ||
in accordance with the rules and guidelines of the program and | ||
received inaccurate information. | ||
(b) This section may not be construed to allow intentional | ||
discrimination of any class protected by law. | ||
SECTION 17. The following provisions are repealed: | ||
(1) Section 322.020(f), Government Code; | ||
(2) Section 2054.008, Government Code; | ||
(3) Section 2166.2551, Government Code; | ||
(4) Section 2254.006, Government Code; | ||
(5) Section 2254.0301, Government Code; | ||
(6) Sections 2261.253(e), (f), (g), and (h), | ||
Government Code; | ||
(7) Section 81.072, Natural Resources Code; and | ||
(8) Section 223.051, Transportation Code, as added by | ||
Chapter 533 (S.B. 312), Acts of the 85th Legislature, Regular | ||
Session, 2017. | ||
SECTION 18. Section 322.008, Government Code, as amended by | ||
this Act, applies to the general appropriations bills prepared for | ||
the 2022-2023 state fiscal biennium and subsequent bienniums. | ||
SECTION 19. Section 2001.0045, Government Code, as amended | ||
by this Act, applies only to a rule proposed by a state agency on or | ||
after the effective date of this Act. A rule proposed before that | ||
date is governed by the law in effect on the date the rule was | ||
proposed, and the former law is continued in effect for that | ||
purpose. | ||
SECTION 20. As soon as practicable after the effective date | ||
of this Act, the comptroller of public accounts 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 21. Each state agency subject to Subchapter C, | ||
Chapter 2264, Government Code, as amended by this Act, shall | ||
develop the procedures required under Section 2264.102(d), | ||
Government Code, as added by this Act, not later than October 1, | ||
2019. | ||
SECTION 22. Sections 2264.1011, 2264.102, and 2264.103, | ||
Government Code, as added by this Act, apply only in relation to a | ||
contract for which the request for bids or proposals or other | ||
applicable expression of interest is made public on or after the | ||
effective date of this Act. | ||
SECTION 23. Except as otherwise provided by this Act, 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 24. This Act takes effect September 1, 2019. |