Bill Text: TX SB255 | 2017-2018 | 85th Legislature | Enrolled

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Bill Title: Relating to contracts with and training for governmental entities and vendors, including purchasing and contract management training; authorizing fees.

Sponsorship: Bipartisan Bill

Status: (Passed) 2017-06-09 - Effective on 9/1/17 [SB255 Detail]

Download: Texas-2017-SB255-Enrolled.html

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S.B. No. 255

AN ACT
relating to contracts with and training for governmental entities
and vendors, including purchasing and contract management
training; authorizing fees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 656.047, Government Code, is amended by
adding Subsection (c) to read as follows:
(c) A state agency that spends more than $5,000 in a state
fiscal year for a training or education program for any individual
administrator or employee shall, not later than August 31 of that
year, submit to the Legislative Budget Board a report including:
(1) a list of the administrators and employees
participating in a training or education program;
(2) the amount spent on each administrator or
employee; and
(3) the certification earned by each administrator or
employee through the training or education program.
SECTION 2. Subchapter C, Chapter 656, Government Code, is
amended by adding Sections 656.054 and 656.055 to read as follows:
Sec. 656.054. PURCHASING AND CONTRACT MANAGEMENT TRAINING
BY COMPTROLLER. (a) The comptroller shall develop training
programs provided by the comptroller under this subchapter to meet
the needs of state agencies.
(b) Each year a state agency shall estimate the number of
employees requiring purchasing or contract management training and
report the anticipated training needs of the state agency to the
comptroller in the manner and form prescribed by the comptroller.
(c) On an annual basis the comptroller shall assess the
number of employees requiring purchasing or contract management
training and shall maintain a regular schedule of classes to
accommodate that number.
(d) The comptroller may use staff or contract with private
or public entities, including state agencies, to conduct the
training.
(e) The comptroller may assess a fee for a training program,
including continuing education and certification, in an amount
sufficient to recover the costs incurred by the comptroller to
provide the training program under this subchapter.
Sec. 656.055. PURCHASING AND CONTRACT MANAGEMENT TRAINING
BY AGENCY. (a) A state agency, in consultation with the
comptroller, may develop agency-specific purchasing and contract
management training programs to be administered by the agency to
the agency's employees instead of or as a supplement to training
programs developed by the comptroller under this subchapter.
(b) An employee who participates in an agency-specific
training program under this section remains subject to any other
applicable certification requirements established for training
programs under this subchapter, including written or oral
examinations administered by the comptroller.
SECTION 3. Sections 2054.057, 2155.078, 2262.053, and
2262.0535, Government Code, are transferred to Subchapter C,
Chapter 656, Government Code, redesignated as Sections 656.050,
656.051, 656.052, and 656.053, Government Code, and amended to read
as follows:
Sec. 656.050 [2054.057]. TRAINING IN CONTRACT NEGOTIATION
FOR PURCHASES OF INFORMATION RESOURCES TECHNOLOGIES. (a) In this
section:
(1) "Department" means the Department of Information
Resources.
(2) "Information resources technologies" has the
meaning assigned by Section 2054.003.
(a-1) The department, with the cooperation of the
comptroller and other appropriate state agencies, shall develop and
implement a program to train state agency personnel in effectively
negotiating contracts for the purchase of information resources
technologies.
(b) The department shall make the training available to
state agency personnel who are directly or indirectly involved in
contract negotiations, such as senior or operational management,
purchasers, users of the purchased technologies, and personnel with
relevant technical, legal, or financial knowledge. State agency
personnel directly involved in contract negotiations for the
purchase of information resources technologies shall complete the
training developed by the department.
(c) The department shall include in the training:
(1) information on developing a structured purchasing
method that meets an agency's needs;
(2) information drawn from the state's previous
procurement experience about what is or is not advantageous for the
state;
(3) the perspective of state agencies with oversight
responsibilities related to the state's procurement of information
resources technologies; [and]
(4) information on how to use contracts entered into
by the department under Section 2157.068; and
(5) other information that the department considers to
be useful.
(d) The department may use its own staff or contract with
private entities or other state agencies to conduct the training.
Sec. 656.051 [2155.078]. TRAINING AND CERTIFICATION OF
STATE AGENCY PURCHASING PERSONNEL AND VENDORS. (a) The
comptroller [commission] shall establish and administer a system of
training, continuing education, and certification for state agency
purchasing personnel. The training and continuing education for
state agency purchasing personnel must include ethics training.
The comptroller [commission] may establish and offer appropriate
training to vendors on a cost recovery basis. The comptroller
[commission] may adopt rules to administer this section[, including
rules relating to monitoring a certified purchaser's compliance
with the continuing education requirements of this section].
(b) [(a-1)] The training, continuing education, and
certification required under Subsection (a) must include:
(1) training on the selection of an appropriate
procurement method by project type; and
(2) training conducted by the Department of
Information Resources on purchasing technologies.
(c) [(b)] Notwithstanding Subsection (i) [(n)], all state
agency purchasing personnel, including agencies exempted from the
purchasing authority of the comptroller [commission], must receive
the training and continuing education to the extent required by the
comptroller [rule of the commission. The training and continuing
education must include ethics training]. A state agency employee
who is required to receive the training may not participate in
purchases by the employing agency unless the employee has received
the required training or received equivalent training from a
national association recognized by the comptroller [commission.
The equivalent training may count, as provided by Subsection (k),
toward the continuing education requirements.
[(c) The commission shall set and collect a fee from state
agencies that employ purchasing personnel. The commission shall
set the fee in an amount that recovers the commission's costs under
this section].
(d) The comptroller [commission] may provide training,
continuing education, and certification under this section to
purchasing personnel employed by a political subdivision or other
public entity of the state. Political subdivision purchasing
personnel may receive, but are not required to receive, the
training, continuing education, or certification provided under
this section. [The commission shall collect the fees described by
Subsection (c) for training, education, or certification under this
subsection.]
(e) [The commission may provide training and continuing
education under this section using its own personnel or through
contracts with private entities. The commission may also, by
agreement with a public entity, use the services of persons
employed by the public entity to provide training and continuing
education under this section.
[(f) The commission shall provide at least three levels of
training under this section.
[(g)] The [basic] training provided by the comptroller
[level] must include instruction in:
(1) [an introduction to] contract purchasing methods;
(2) [,] ethical issues affecting purchasing
decisions;
(3) negotiation methods;
(4) writing specifications;
(5) the criteria for determining which product or
service offers the best value for the state;
(6) developing evaluation criteria;
(7) formal and informal bidding methods;
(8) complex negotiations;[,] and
(9) [instruction in] any other processes and issues
that the comptroller [commission] considers appropriate for
[introductory] purchasing training.
(f) [(h) The second training level must include advanced
instruction in formal and informal bidding methods, introduction to
negotiation methods, instruction in writing specifications, and
instruction in any other processes and issues that the commission
considers appropriate for the second level of purchasing training.
[(i) The third training level must include an introduction
to complex negotiations, instruction in the criteria for
determining which product or service offers the best value for the
state, and instruction in any other processes and issues that the
commission considers appropriate for advanced purchasing training.
[(j)] The comptroller [commission] may prescribe the
circumstances under which a state agency may delegate to a
certified purchaser signature purchasing authority to approve
purchase orders.
(g) [(k)] The comptroller [commission] shall require a
reasonable number of hours of continuing education to maintain [a]
certification [level]. The comptroller [commission] may allow
attendance at equivalent certification training recognized by the
comptroller [commission] to count toward the required number of
hours. Maintenance of [the] certification [level] may be by yearly
renewal or another reasonable renewal period comparable to
nationally recognized certification requirements. The comptroller
shall adopt rules to monitor compliance with this subsection.
(h) The comptroller shall certify a state agency employee as
a state agency purchaser when the employee has:
(1) completed the training required by this section or
as prescribed by rule; and
(2) passed a written examination.
(i) [(l) The commission's prerequisites for receiving a
level-two purchaser certification must include completion of the
basic training level, passage of a written examination, and a
minimum number of years of purchasing experience prescribed by the
commission.
[(m) The commission's prerequisites for receiving a
level-three purchaser certification must include completion of the
second training level, passage of a written examination, and a
minimum of three years of purchasing experience.
[(n)] This section does not apply to an institution to which
Section 51.9335, Education Code, applies or to an institution to
which Section 73.115, Education Code, applies.
Sec. 656.052 [2262.053]. TRAINING AND CERTIFICATION FOR
CONTRACT MANAGERS. (a) In this section:
(1) "Contract management guide" means the guide
developed under Section 2262.051.
(2) "Contract manager" has the meaning assigned by
Section 2262.001.
(a-1) In coordination with the Department of Information
Resources, state auditor, and Health and Human Services Commission,
the comptroller shall develop a training program for contract
managers.
(b) The training must provide the contract manager with
information regarding how to:
(1) fairly and objectively select and negotiate with
the most qualified contractor;
(2) establish prices that are cost-effective and that
reflect the cost of providing the service;
(3) include provisions in a contract that hold the
contractor accountable for results;
(4) monitor and enforce a contract;
(5) make payments consistent with the contract;
(6) comply with any requirements or goals contained in
the contract management guide; [and]
(7) use and apply advanced sourcing strategies,
techniques, and tools;
(8) maintain required documentation for contracting
decisions, changes to a contract, and problems with a contract;
(9) create a risk evaluation and mitigation strategy;
(10) create a plan for potential problems with the
contract;
(11) develop an accurate and comprehensive statement
of work; and
(12) complete the contract and evaluate performance
under the contract.
(c) Each state agency shall ensure that the agency's
contract managers complete the training developed under this
section.
(d) The comptroller shall administer training under this
section and may assess a fee for the training in an amount
sufficient to recover the comptroller's costs under this section.
(e) The comptroller shall certify contract managers who
have completed the contract management training required under this
section.
(f) A state agency may develop qualified contract manager
training to supplement the training required under this section.
The comptroller may incorporate the training developed by the
agency into the training program under this section.
(g) The comptroller shall adapt the training required under
this section and administer an abbreviated training program meeting
the relevant training requirements under this section for state
agency employees, other than contract managers, with contract
management duties.
(h) This section does not apply to:
(1) an institution of higher education as defined by
Section 61.003, Education Code; or
(2) a contract manager whose contract management
duties relate primarily to contracts described by Section
2262.002(b).
Sec. 656.053 [2262.0535]. TRAINING FOR GOVERNING BODIES.
(a) In this section, "state agency" has the meaning assigned by
Section 2056.001.
(a-1) The comptroller shall adapt the program developed
under Section 656.052 [2262.053] to provide an abbreviated program
for training the members of the governing bodies of state agencies.
The training may be provided together with other required training
for members of state agency governing bodies.
(b) All members of the governing body of a state agency
shall complete at least one course of the training provided under
this section. This subsection does not apply to a state agency that
does not enter into any contracts.
(c) The comptroller may assess a fee for the training
provided under this section in an amount sufficient to recover the
comptroller's costs under this section.
(d) This section does not apply to the Texas Transportation
Commission.
SECTION 4. Section 2056.002(b), Government Code, is amended
to read as follows:
(b) The Legislative Budget Board and the governor's office
[Governor's Office of Budget, Policy, and Planning] shall determine
the elements required to be included in each agency's strategic
plan. Unless modified by the Legislative Budget Board and the
governor's office [Governor's Office of Budget, Policy, and
Planning], and except as provided by Subsection (c), a plan must
include:
(1) a statement of the mission and goals of the state
agency;
(2) a description of the indicators developed under
this chapter and used to measure the output and outcome of the
agency;
(3) identification of the groups of people served by
the agency, including those having service priorities, or other
service measures established by law, and estimates of changes in
those groups expected during the term of the plan;
(4) an analysis of the use of the agency's resources to
meet the agency's needs, including future needs, and an estimate of
additional resources that may be necessary to meet future needs;
(5) an analysis of expected changes in the services
provided by the agency because of changes in state or federal law;
(6) a description of the means and strategies for
meeting the agency's needs, including future needs, and achieving
the goals established under Section 2056.006 for each area of state
government for which the agency provides services;
(7) a description of the capital improvement needs of
the agency during the term of the plan and a statement, if
appropriate, of the priority of those needs;
(8) identification of each geographic region of this
state, including the Texas-Louisiana border region and the
Texas-Mexico border region, served by the agency, and if
appropriate the agency's means and strategies for serving each
region;
(9) a description of the training of the agency's
contract managers under Section 656.052 [2262.053];
(10) an analysis of the agency's expected expenditures
that relate to federally owned or operated military installations
or facilities, or communities where a federally owned or operated
military installation or facility is located;
(11) an analysis of the strategic use of information
resources as provided by the instructions prepared under Section
2054.095; and
(12) other information that may be required.
SECTION 5. Sections 2252.908(c) and (e), Government Code,
are amended to read as follows:
(c) Notwithstanding Subsection (b), this section does not
apply to:
(1) a sponsored research contract of an institution of
higher education;
(2) an interagency contract of a state agency or an
institution of higher education; [or]
(3) a contract related to health and human services
if:
(A) the value of the contract cannot be
determined at the time the contract is executed; and
(B) any qualified vendor is eligible for the
contract;
(4) a contract with a publicly traded business entity,
including a wholly owned subsidiary of the business entity;
(5) a contract with an electric utility, as that term
is defined by Section 31.002, Utilities Code; or
(6) a contract with a gas utility, as that term is
defined by Section 121.001, Utilities Code.
(e) The disclosure of interested parties must be submitted
on a form prescribed by the Texas Ethics Commission that includes:
(1) a list of each interested party for the contract of
which the contracting business entity is aware; and
(2) a written, unsworn declaration subscribed by [the
signature of] the authorized agent of the contracting business
entity as true[, acknowledging that the disclosure is made under
oath and] under penalty of perjury that is in substantially the
following form:
"My name is ________________________________, my
date of birth is _________________, and my address is
_____________, ____________, _________, ____________,
(Street) (City) (State) (Zip Code)
__________________. I declare under penalty of
(Country)
perjury that the foregoing is true and correct.
Executed in _______ County, State of ________, on
the ________ day of ________, ________.
(Month) (Year)
____________________
Declarant".
SECTION 6. Section 2262.101(a), Government Code, is amended
to read as follows:
(a) The Contract Advisory Team is created to assist state
agencies in improving contract management practices by:
(1) reviewing and making recommendations on the
solicitation documents and contract documents for contracts of
state agencies that have a value of at least $10 million;
(2) reviewing any findings or recommendations made by
the state auditor, including those made under Section 2262.052(b),
regarding a state agency's compliance with the contract management
guide;
(3) providing recommendations to the comptroller
regarding:
(A) the development of the contract management
guide; and
(B) the training under Section 656.052
[2262.053];
(4) providing recommendations and assistance to state
agency personnel throughout the contract management process;
(5) coordinating and consulting with the quality
assurance team established under Section 2054.158 on all contracts
relating to a major information resources project;
(6) developing and recommending policies and
procedures to improve state agency contract management practices;
(7) developing and recommending procedures to improve
state agency contracting practices by including consideration for
best value; and
(8) creating and periodically performing a risk
assessment to determine the appropriate level of management and
oversight of contracts by state agencies.
SECTION 7. Section 2267.003, Government Code, is amended to
read as follows:
Sec. 2267.003. APPLICABILITY. This chapter does not apply
to:
(1) the financing, design, construction, maintenance,
or operation of a highway in the state highway system;
(2) a transportation authority operating [created]
under Chapter 451, 452, 453, or 460, Transportation Code, other
than a metropolitan rapid transit authority operating under Chapter
451, Transportation Code, in which the principal municipality has a
population of 1.9 million or more;
(3) any telecommunications, cable television, video
service, or broadband infrastructure other than technology
installed as part of a qualifying project that is essential to the
project; or
(4) except as provided by Section 2165.259, a
qualifying project located in the Capitol Complex, as defined by
Section 443.0071.
SECTION 8. (a) Not later than February 1, 2018, the
comptroller of public accounts shall adopt rules to implement
Section 656.051, Government Code, as transferred, redesignated,
and amended by this Act.
(b) Section 656.051, Government Code, as transferred,
redesignated, and amended by this Act, applies only to an
application for certification under that section that is submitted
on or after March 1, 2018. An application submitted 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 9. Section 2252.908, Government Code, as amended by
this Act, applies only to a contract entered into or amended on or
after January 1, 2018.
SECTION 10. This Act takes effect September 1, 2017.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 255 passed the Senate on
May 8, 2017, by the following vote: Yeas 28, Nays 3; and that the
Senate concurred in House amendments on May 26, 2017, by the
following vote: Yeas 27, Nays 4.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 255 passed the House, with
amendments, on May 24, 2017, by the following vote: Yeas 141,
Nays 2, two present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor