83R5465 MTB-F
	By: Zaffirini	S.B. No. 1680

	A BILL TO BE ENTITLED
	AN ACT
	relating to certain requirements applicable to contracts entered
	into by state agencies.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 2113.102(a), Government Code, is amended
	to read as follows:
	(a)  A state agency may not use appropriated money to
	contract with a person to audit [the financial records or accounts
	of] the agency except:
	(1)  as provided by[:
	[(1)]  Subsections (b), (c), and (d); and
	(2)  in accordance with Section 321.020 [Chapter 466,
	pertaining to the state lottery;
	[(3)     Chapter 2306, pertaining to the Texas Department
	of Housing and Community Affairs; and
	[(4)     Chapter 361, Transportation Code, pertaining to
	the Texas Turnpike Authority division of the Texas Department of
	Transportation].
	SECTION 2.  Section 2162.103(a), Government Code, is amended
	to read as follows:
	(a)  In comparing the cost of providing a service, the
	council shall consider the:
	(1)  cost of supervising the work of a private
	contractor; [and]
	(2)  cost of a state agency's performance of the
	service, including:
	(A)  the costs of the comptroller, attorney
	general, and other support agencies; and
	(B)  other indirect costs related to the agency's
	performance of the service;
	(3)  installation costs and any other initial costs
	associated with a contract with a private contractor;
	(4)  other costs associated with the transition to
	using a private contractor's goods or services; and
	(5)  cost savings to the state if a private contractor
	were awarded the contract.
	SECTION 3.  Section 2261.002, Government Code, is amended to
	read as follows:
	Sec. 2261.002.  DEFINITIONS. In this chapter:
	(1)  "Contract" includes an agreement or other written
	expression of terms of agreement, including an amendment, a
	modification, a renewal, or an extension, for the purchase or sale
	of goods or services that is entered into or paid for, wholly or
	partly, by a state agency during a fiscal year and a grant, other
	than a grant made to a school district or a grant made for other
	academic purposes, under which the recipient of the grant is
	required to perform a specific act or service, supply a specific
	type of product, or both. The term does not include:
	(A)  a contract that has been reported to the
	Legislative Budget Board under Section 2054.008, 2166.2551,
	2254.006, or 2254.0301;
	(B)  a purchase order;
	(C)  an interagency contract;
	(D)  an interlocal agreement;
	(E)  a contract with a value of not more than
	$50,000; or
	(F)  a contract paid only with funds not
	appropriated by the General Appropriations Act.
	(2)  "Contract manager" means a person who:
	(A)  is employed by a state agency; and
	(B)  has significant contract management duties
	for the state agency.
	(3)  "Executive director" means the administrative
	head of a state agency.
	(4)  "Major contract" means a contract, including a
	renewal of a contract, that has a value of $10 million or more. The
	term includes a service contract.
	(5)  "State agency" has the meaning assigned by Section
	2151.002.
	SECTION 4.  Subchapter A, Chapter 2261, Government Code, is
	amended by adding Sections 2261.004 and 2261.005 to read as
	follows:
	Sec. 2261.004.  STATE AGENCY REPOSITORY. Each state agency
	shall maintain in a central location all contracts for that agency.
	Sec. 2261.005.  CONTRACT REPORTING. (a)  In this section,
	"contract" includes a construction contract.
	(b)  The following sections prescribe reporting requirements
	for certain contracts:
	(1)  Section 322.020;
	(2)  Section 2054.008;
	(3)  Section 2166.2551;
	(4)  Section 2254.006; and
	(5)  Section 2254.0301.
	SECTION 5.  Subchapter C, Chapter 2261, Government Code, is
	amended by adding Sections 2261.103 and 2261.104 to read as
	follows:
	Sec. 2261.103.  USE OF UNIFORM FORMS.  A state agency may use
	any forms developed by the Contract Advisory Team as templates,
	guides, or samples for contracts entered into by the agency.
	Sec. 2261.104.  ESSENTIAL PROVISIONS. The following are
	required provisions in each contract, other than a grant:
	(1)  introduction;
	(2)  scope of work;
	(3)  indemnification or damage claims;
	(4)  price;
	(5)  specifications;
	(6)  funding out clause;
	(7)  antitrust;
	(8)  payment;
	(9)  affirmation clauses;
	(10)  technology access clause;
	(11)  dispute resolution;
	(12)  term of contract;
	(13)  confidential information;
	(14)  abandonment or default;
	(15)  right to audit;
	(16)  force majeure;
	(17)  ownership of intellectual property, including
	rights to data, documents, and computer software;
	(18)  independent contractor;
	(19)  termination; and
	(20)  buy Texas.
	SECTION 6.  The heading to Subchapter E, Chapter 2261,
	Government Code, is amended to read as follows:
	SUBCHAPTER E. CONTRACTING [CONTRACTOR] OVERSIGHT
	SECTION 7.  Subchapter E, Chapter 2261, Government Code, is
	amended by adding Sections 2261.204, 2261.205, 2261.206, 2261.207,
	2261.208, and 2261.209 to read as follows:
	Sec. 2261.204.  INFORMATION ON CONTRACTOR PERFORMANCE. (a)
	After a contract is completed or otherwise terminated, each state
	agency shall review the contractor's performance under the
	contract.
	(b)  Using forms made available to the state agency, a state
	agency shall report to the comptroller on the results of the review
	regarding a contractor's performance under a major contract.
	(c)  A state agency shall use any vendor performance tracking
	system available to state agencies to determine whether to award a
	contract to a person reviewed in the database.
	Sec. 2261.205.  EXCLUDING CONTRACTOR FROM SOLICITATION
	PROCESS.  Based on its own contractor performance reviews and on
	information in any vendor performance tracking system available to
	state agencies, a state agency may exclude a contractor from the
	solicitation process for a contract if the agency determines the
	contractor has performed poorly on a previous state contract
	without regard to whether the contractor has been barred under
	Section 2155.077.
	Sec. 2261.206.  CONTRACT MANAGERS. (a)  Each state agency
	that enters into contracts other than interagency contracts shall
	establish a career ladder program for contract management in the
	agency.
	(b)  An employee hired as a contract manager may engage in
	procurement planning, contract solicitation, contract formation,
	price establishment, and other contract activities.
	(c)  Each state agency shall determine, in consultation with
	the state auditor, the amount and significance of contract
	management duties sufficient for an employee to be considered a
	contract manager under this chapter.
	Sec. 2261.207.  APPROVAL OF CONTRACTS. (a)  Each state
	agency shall establish formal guidelines regarding who may approve
	a contract for the agency.
	(b)  Each state agency shall adopt administrative rules to
	establish a monetary threshold above which agency contracts and
	amendments to or extensions of agency contracts require written
	authorization by the agency executive director.
	(c)  For state agency contracts valued in excess of $1
	million the agency executive director must authorize a contract
	amendment in writing.
	(d)  Each state agency shall annually report to the
	comptroller a list of each person authorized to approve contracts
	at the agency. The list must include the person's name, position,
	and supervisory responsibility, if any.
	Sec. 2261.208.  NEGOTIATION OF MAJOR CONTRACT BY SINGLE
	EMPLOYEE PROHIBITED. A state agency may not negotiate a major
	contract with only one employee engaging in the negotiation.
	Sec. 2261.209.  CONTRACT REVIEW. A contract manager shall:
	(1)  periodically review and report on a contractor's
	performance throughout the term of a contract; and
	(2)  submit a quarterly report to the executive
	director of the agency on the results of the reviews performed under
	Subdivision (1).
	SECTION 8.  Chapter 2261, Government Code, is amended by
	adding Subchapters F and G to read as follows:
	SUBCHAPTER F. CHANGES TO CONTRACTS
	Sec. 2261.251.  CONTRACT AMENDMENTS, EXTENSIONS, AND CHANGE
	ORDERS. (a)  An extension of or amendment to a contract, including
	a change order, is subject to the same approval processes as the
	original contract.
	(b)  A state agency may not extend or amend a contract unless
	the agency complies with the same approval processes for the
	extension or amendment as required for the original contract and a
	contract manager for the agency states in writing why the extension
	or amendment is necessary.
	(c)  This section does not affect whether a state agency is
	required to undertake a new solicitation process in the manner
	required for a new contract in order to extend or amend a contract.
	Sec. 2261.252.  LARGE CHANGE IN CONTRACT VALUE.  (a)  If a
	proposed contract amendment or extension changes the monetary value
	of a contract by $1 million or more, the state agency must obtain
	review and approval from the Contract Advisory Team and the
	agency's executive director before the agency amends or extends the
	contract.
	(b)  This section does not apply to a proposed contract
	amendment required by a state or federal statute.
	Sec. 2261.253.  CERTAIN CONTRACT EXTENSIONS.  This
	subchapter does not apply to contract extensions that are
	specifically established as a component of the original
	procurement.
	SUBCHAPTER G. TRAINING
	Sec. 2261.301.  TRAINING FOR CONTRACT MANAGERS. (a) A state
	agency shall require a contract manager to be trained under Section
	2262.053.
	(b)  A state agency shall maintain a list of contract
	managers who have completed the contract management training.
	(c)  A state agency may develop qualified contract manager
	training to supplement the training required under this section.
	Sec. 2261.302.  TRAINING FOR GOVERNING BODIES.  All members
	of the governing body of a state agency shall complete at least one
	course of abbreviated training provided under Section 2262.053.
	This section does not apply to a state agency that does not enter
	into any contracts.
	SECTION 9.  Section 2262.003, Government Code, is
	transferred to Subchapter C, Chapter 2261, Government Code,
	redesignated as Section 2261.105, Government Code, and amended to
	read as follows:
	Sec. 2261.105 [2262.003].  REQUIRED [CONTRACT] PROVISION
	RELATING TO AUDITING. (a)  Each state agency shall include in each
	of its contracts a term that provides that:
	(1)  the state auditor may conduct an audit or
	investigation of any entity receiving funds from the state directly
	under the contract or indirectly through a subcontract under the
	contract;
	(2)  acceptance of funds directly under the contract or
	indirectly through a subcontract under the contract acts as
	acceptance of the authority of the state auditor, under the
	direction of the legislative audit committee, to conduct an audit
	or investigation in connection with those funds; and
	(3)  under the direction of the legislative audit
	committee, an entity that is the subject of an audit or
	investigation by the state auditor must provide the state auditor
	with access to any information the state auditor considers relevant
	to the investigation or audit.
	(b)  The state auditor shall provide assistance to a state
	agency in developing the contract provisions.
	SECTION 10.  Sections 2261.104 and 2261.208, Government
	Code, as added by this Act, apply only to a contract for which a
	state agency first advertises or otherwise solicits bids,
	proposals, offers, or qualifications on or after the effective date
	of this Act.
	SECTION 11.  A contract manager is not required to complete
	the training required under Section 2261.301, Government Code, as
	added by this Act, until September 1, 2015.
	SECTION 12.  A member of a governing body of a state agency
	is not required to complete the training required under Section
	2261.302, Government Code, as added by this Act, until September 1,
	2015.
	SECTION 13.  A state agency is not required to comply with
	Section 2261.004 and Sections 2261.204-2261.209, Government Code,
	as added by this Act, until September 1, 2015.
	SECTION 14.  This Act takes effect November 1, 2013.