S.B. No. 1681
 
 
 
 
AN ACT
  relating to oversight and management of state contracts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter A, Chapter 2262, Government Code, is
  amended by adding Sections 2262.0015 and 2262.005 to read as
  follows:
         Sec. 2262.0015.  APPLICABILITY TO CERTAIN CONTRACTS.
  (a)  The comptroller by rule shall establish threshold
  requirements that exclude small or routine contracts, including
  purchase orders, from the application of this chapter.
         (b)  This chapter does not apply to an enrollment contract
  described by 1 T.A.C. Section 391.183 as that section existed on
  November 1, 2013.
         Sec. 2262.005.  CONSULTATION WITH STATE AGENCIES.  The
  comptroller shall consult with state agencies in developing forms,
  contract terms, and criteria required under this chapter.
         SECTION 2.  The heading to Section 2262.053, Government
  Code, is amended to read as follows:
         Sec. 2262.053.  TRAINING FOR CONTRACT MANAGERS.
         SECTION 3.  Section 2262.053, Government Code, is amended by
  amending Subsections (a) and (d) and adding Subsections (e) and (f)
  to read as follows:
         (a)  In coordination with the [comptroller,] Department of
  Information Resources, [and] state auditor, and Health and Human
  Services Commission, the comptroller [commission] shall develop
  [or administer] a training program for contract managers.
         (d)  The comptroller [Texas Building and Procurement
  Commission] shall administer [the] training [program] 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.
         SECTION 4.  Subchapter B, Chapter 2262, Government Code, is
  amended by adding Sections 2262.0535 and 2262.055 to read as
  follows:
         Sec. 2262.0535.  TRAINING FOR GOVERNING BODIES. (a)  The
  comptroller shall adapt the program developed under Section
  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.
         Sec. 2262.055.  VENDOR PERFORMANCE TRACKING SYSTEM.
  (a)  The comptroller shall evaluate the vendor's performance based
  on information reported by state agencies and criteria established
  by the comptroller.
         (b)  The comptroller shall establish an evaluation process
  that allows vendors who receive an unfavorable performance review
  to protest any classification given by the comptroller.
         (c)  The comptroller shall include the performance reviews
  in a vendor performance tracking system.
         SECTION 5.  Section 2262.101, Government Code, is amended to
  read as follows:
         Sec. 2262.101.  CREATION; DUTIES. (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 [of major]
  contracts of [by] 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; [and]
               (3)  providing recommendations to the comptroller
  [commission] regarding:
                     (A)  the development of the contract management
  guide; and
                     (B)  the training under Section 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; and
               (6)  creating and periodically performing a risk
  assessment to determine the appropriate level of management and
  oversight of contracts by state agencies.
         (b)  The risk assessment created and performed under
  Subsection (a)(6) must include the following criteria:
               (1)  the amount of appropriations to the agency;
               (2)  total contract value as a percentage of
  appropriations to the agency; or
               (3)  the impact of the functions and duties of the state
  agency on the health, safety, and well-being of residents.
         (c)  The comptroller shall oversee the activities of the
  team, including ensuring that the team carries out its duties under
  Subsection (a)(5).
         (d)  A state agency shall:
               (1)  comply with a recommendation made under Subsection
  (a)(1); or
               (2)  submit a written explanation regarding why the
  recommendation is not applicable to the contract under review.
         (e)  The team may review documents under Subsection (a)(1)
  only for compliance with contract management and best practices
  principles and may not make a recommendation regarding the purpose
  or subject of the contract.
         (f)  The team may develop an expedited process for reviewing
  solicitations under Subsection (a)(1) for contracts:
               (1)  that the team identifies as posing a low risk of
  loss to the state; or
               (2)  for which templates will be used more than once by
  a state agency.
         SECTION 6.  Section 2262.102, Government Code, is amended by
  amending Subsection (a) and adding Subsections (c) and (d) to read
  as follows:
         (a)  The team consists of the following six [five] members:
               (1)  one member from the Health and Human Services
  Commission [attorney general's office];
               (2)  one member from the comptroller's office;
               (3)  one member from the Department of Information
  Resources;
               (4)  one member from the Texas Facilities [Building and
  Procurement] Commission; [and]
               (5)  one member from the governor's office; and
               (6)  one member from a small state agency.
         (c)  The attorney general's office shall provide legal
  assistance to the team.
         (d)  In this section, "small state agency" means a state
  agency with fewer than 100 employees.
         SECTION 7.  Chapter 2262, Government Code, is amended by
  adding Subchapter D to read as follows:
  SUBCHAPTER D. CONTRACT FORMS AND PROVISIONS
         Sec. 2262.151.  CONTRACT TERMS RELATING TO NONCOMPLIANCE.
  (a)  The comptroller shall develop recommendations for contract
  terms regarding remedies for noncompliance by contractors,
  including remedies for noncompliance with any required disclosure
  of conflicts of interest by contractors. The comptroller may
  develop recommended contract terms that are generally applicable to
  state contracts and terms that are applicable to important types of
  state contracts.
         (b)  A state agency may include applicable recommended terms
  in a contract entered into by the agency.
         Sec. 2262.152.  UNIFORM FORMS. The comptroller shall
  develop and make available a uniform and automated set of forms that
  a state agency may use in the different stages of the contracting
  process.
         Sec. 2262.153.  FORMS FOR REPORTING CONTRACTOR PERFORMANCE.
  As part of the uniform forms published under Section 2262.152, the
  comptroller shall develop forms for use by state agencies in
  reporting a contractor's performance for use in the vendor
  performance tracking system under Section 2262.055.
         SECTION 8.  Section 2262.003, Government Code, is
  transferred to Subchapter D, Chapter 2262, Government Code, as
  added by this Act, redesignated as Section 2262.154, Government
  Code, and amended to read as follows:
         Sec. 2262.154 [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 9.  Subsection (f), Section 2262.051, Government
  Code, is repealed.
         SECTION 10.  Not later than May 1, 2014, the comptroller of
  public accounts shall develop the training program required by
  Section 2262.053, Government Code, as amended by this Act, and
  Section 2262.0535, Government Code, as added by this Act.
         SECTION 11.  A member of a governing body of a state agency
  is not required to complete the training provided under Section
  2262.0535, Government Code, as added by this Act, until September
  1, 2015.
         SECTION 12.  The comptroller of public accounts shall use
  the vendor performance tracking system established by the
  comptroller before the effective date of this Act in carrying out
  the comptroller's duties under Section 2262.055, Government Code,
  as added by this Act.
         SECTION 13.  A contract manager is not required to be
  certified under Chapter 2262, Government Code, as amended by this
  Act, until September 1, 2015.
         SECTION 14.  As soon as practicable, and not later than May
  1, 2014, the comptroller of public accounts and Contract Advisory
  Team shall develop the forms and recommendations required by this
  Act, including Sections 2262.151, 2262.152, and 2262.153,
  Government Code, as added by this Act.
         SECTION 15.  This Act takes effect November 1, 2013.
 
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1681 passed the Senate on
  April 24, 2013, by the following vote:  Yeas 30, Nays 0;
  May 24, 2013, Senate refused to concur in House amendments and
  requested appointment of Conference Committee; May 24, 2013, House
  granted request of the Senate; May 26, 2013, Senate adopted
  Conference Committee Report by the following vote:  Yeas 31,
  Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1681 passed the House, with
  amendments, on May 22, 2013, by the following vote:  Yeas 148,
  Nays 0, two present not voting; May 24, 2013, House granted request
  of the Senate for appointment of Conference Committee;
  May 26, 2013, House adopted Conference Committee Report by the
  following vote:  Yeas 147, Nays 0, one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
             Date
 
 
  ______________________________ 
            Governor