Bill Text: TX SB65 | 2019-2020 | 86th Legislature | Enrolled

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Bill Title: Relating to oversight of and requirements applicable to state agency contracting and procurement.

Sponsorship: Partisan Bill (Republican 5)

Status: (Passed) 2019-06-14 - Effective on 9/1/19 [SB65 Detail]

Download: Texas-2019-SB65-Enrolled.html

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S.B. No. 65

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. 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 6. Section 2054.159, Government Code, is amended by
adding Subsections (f) and (g) to read as follows:
(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 7. 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 8. 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 9. Section 2054.302(b), Government Code, is amended
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.
SECTION 10. 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 11. 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 12. 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 13. 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 14. 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 15. 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 16. 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 17. Section 2252.908(b), Government Code, is
amended to read as follows:
(b) This section applies only to a contract of a
governmental entity or state agency that:
(1) requires an action or vote by the governing body of
the entity or agency before the contract may be signed; [or]
(2) has a value of at least $1 million; or
(3) is for services that would require a person to
register as a lobbyist under Chapter 305.
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. (a) Section 2254.030, Government Code, is
amended to read as follows:
Sec. 2254.030. REQUIRED DISCLOSURE AND ITEMIZATION OF
CERTAIN EXPENDITURES RELATING TO LOBBYING ACTIVITIES [PUBLICATION
IN TEXAS REGISTER] AFTER ENTERING INTO A [MAJOR] CONSULTING
SERVICES CONTRACT. (a) A political subdivision that enters or has
entered into a contract for consulting services with a state
agency, regardless of whether the term of the contract has expired,
shall prominently display on the political subdivision's Internet
website the following regarding contracts for services that would
require a person to register as a lobbyist under Chapter 305:
(1) the execution dates;
(2) the contract duration terms, including any
extension options;
(3) the effective dates;
(4) the final amount of money the political
subdivision paid in the previous fiscal year; and
(5) a list of all legislation advocated for, on, or
against by all parties and subcontractors to the contract,
including the position taken on each piece of legislation in the
prior fiscal year.
(b) In lieu of displaying the items described by Subsections
(a)(1)-(5) regarding a contract for services that would require a
person to register as a lobbyist under Chapter 305, a political
subdivision may post on the political subdivision's Internet
website the contract for those services.
(c) Information required to be displayed on a political
subdivision's Internet website under this section is public
information subject to disclosure under Chapter 552.
(d) The proposed budget of a political subdivision
described by Subsection (a) must include, in a manner allowing for
as clear a comparison as practicable between those expenditures in
the proposed budget and actual expenditures for the same purpose in
the preceding year, a line item indicating expenditures for
directly or indirectly influencing or attempting to influence the
outcome of legislation or administrative action, as those terms are
defined in Section 305.002 [Not later than the 20th day after the
date of entering into a major consulting services contract, the
contracting state agency shall file with the secretary of state for
publication in the Texas Register:
[(1) a description of the activities that the
consultant will conduct;
[(2) the name and business address of the consultant;
[(3) the total value and the beginning and ending
dates of the contract; and
[(4) the dates on which documents, films, recordings,
or reports that the consultant is required to present to the agency
are due].
(b) Section 2254.030, Government Code, as amended by this
section, applies to a consulting services contract entered into by
a political subdivision before, on, or after the effective date of
this Act.
SECTION 22. 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 23. 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 24. The heading to Subchapter E, Chapter 2261,
Government Code, is amended to read as follows:
SUBCHAPTER E. CONTRACTOR OVERSIGHT AND LIABILITY
SECTION 25. 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 26. 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 27. 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 28. 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 and the Department of Information
Resources 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) In consultation with the Contract Advisory Team
established under Subchapter C, Chapter 2262, 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.
(e) In consultation with the quality assurance team
established under Section 2054.158, the Department of Information
Resources 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
quality assurance team.
(f) 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.
(g) The state auditor, comptroller, and Department of
Information Resources shall share information as necessary to
fulfill their respective duties under this section.
(h) 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 29. Subchapter B, Chapter 2262, Government Code, is
amended by adding Sections 2262.053 and 2262.056 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.
Sec. 2262.056. APPROVAL REQUIRED FOR ASSIGNMENT OF SERVICES
CONTRACTS. (a) In this section:
(1) "Major information resources project" has the
meaning assigned by Section 2054.003.
(2) "Sensitive personal information" has the meaning
assigned by Section 521.002, Business & Commerce Code.
(b) A vendor awarded a services contract by a state agency
may not assign the vendor's rights under the contract to a third
party unless the assignment is approved by the state agency.
(c) At least 14 days before a state agency rejects or
approves a vendor's proposed assignment under Subsection (b), the
state agency shall notify the Legislative Budget Board of the
proposed assignment if the contract subject to the assignment:
(1) is for a major information resources project; or
(2) involves storing, receiving, processing,
transmitting, disposing of, or accessing sensitive personal
information in a foreign country.
SECTION 30. The following provisions of the Government Code
are repealed:
(1) Section 825.103(g);
(2) Section 2054.1181(f);
(3) Section 2054.1184;
(4) Sections 2054.159(c) and (d);
(5) Section 2054.304(c);
(6) Section 2254.031(c); and
(7) Section 2254.033(b).
SECTION 31. 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 32. (a) Except as provided by Subsections (b) and
(c) of this section, 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 2262.056, 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 33. 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 34. This Act takes effect September 1, 2019.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 65 passed the Senate on
March 20, 2019, by the following vote: Yeas 31, Nays 0; and that
the Senate concurred in House amendments on May 24, 2019, by the
following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 65 passed the House, with
amendments, on May 22, 2019, by the following vote: Yeas 143,
Nays 0, two present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor