By: Nelson	S.B. No. 20

	A BILL TO BE ENTITLED
	AN ACT
	relating to state agency contracting.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subchapter L, Chapter 441, Government Code, is
	amended by adding Section 441.1855 to read as follows:
	Sec. 441.1855.  RETENTION OF CONTRACT AND RELATED DOCUMENTS
	BY STATE AGENCIES. 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 fourth anniversary of the date the contract is completed or
	expires.
	SECTION 2.  Section 2151.002, Government Code, is amended to
	read as follows:
	Sec. 2151.002.  DEFINITION. Except as otherwise provided by
	this subtitle, in this subtitle, "state agency" means:
	(1)  a department, commission, board, office, or other
	agency in the executive branch of state government created by the
	state constitution or a state statute;
	(2)  the supreme court, the court of criminal appeals,
	a court of appeals, or the Texas Judicial Council; or
	(3)  a university system or an institution of higher
	education as defined by Section 61.003, Education Code[, except a
	public junior college].
	SECTION 3.  Section 2155.078, Government Code, is amended by
	amending Subsections (a) and (b) and adding Subsection (a-1) to
	read as follows:
	(a)  The 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 commission may establish and offer appropriate training to
	vendors on a cost recovery basis. The 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.
	(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.
	(b)  Notwithstanding [Except as provided by] Subsection (n),
	all state agency purchasing personnel, including agencies exempted
	from the purchasing authority of the commission, must receive the
	training and continuing education to the extent required by 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 commission. The equivalent training may count,
	as provided by Subsection (k), toward the continuing education
	requirements.
	SECTION 4.  Subchapter B, Chapter 2155, Government Code, is
	amended by adding Sections 2155.089 and 2155.090 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.
	(b)  The state agency shall report to the comptroller, using
	the tracking system described by Section 2155.090, on the results
	of the review regarding a vendor's performance under a contract.
	Sec. 2155.090.  VENDOR PERFORMANCE TRACKING SYSTEM. (a)
	The comptroller shall evaluate a vendor's performance based on the
	information reported under Section 2155.089 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.
	(d)  A state agency shall use the vendor performance tracking
	system to determine whether to award a contract to a vendor reviewed
	in the database.
	(e)  The comptroller shall make the vendor performance
	tracking system accessible to the public on the comptroller's
	Internet website.
	SECTION 5.  Section 2155.502, Government Code, is amended by
	amending Subsection (c) and adding Subsection (c-1) to read as
	follows:
	(c)  The commission may not list a multiple award contract on
	a schedule developed under Subsection (a) if the goods [or
	services] provided by that contract:
	(1)  are available from only one vendor; or
	(2)  [are telecommunications services, facilities, or
	equipment;
	[(3)]  are commodity items as defined by Section
	2157.068(a); or
	(3)  have a value that exceeds $1 million [(4)     are
	engineering services as described by Section 1001.003, Occupations
	Code, or architectural services as described by Section 1051.001,
	Occupations Code].
	(c-1)  The list of multiple award contracts may not include
	more than 35 percent of the number of vendors that competitively bid
	to provide a particular good under a multiple award contract.
	SECTION 6.  Subchapter I, Chapter 2155, Government Code, is
	amended by adding Section 2155.5035 to read as follows:
	Sec. 2155.5035.  USE OF SCHEDULE BY STATE AGENCY. (a) A
	state agency purchasing goods under a contract listed on the
	schedule shall:
	(1)  for a purchase with a value of $50,000 or less,
	directly award a contract to a vendor included on the schedule
	without submission of a request for bids to other vendors on the
	list;
	(2)  for a purchase with a value of more than $50,000
	but not more than $150,000, submit a request for proposals to at
	least three vendors included on the schedule in the category to
	which the purchase relates;
	(3)  for a purchase with a value of more than $150,000
	but not more than $1 million, submit a request for proposals to at
	least six vendors included on the schedule in the category to which
	the purchase relates; and
	(b)  The price listed for a good under a multiple award
	contract is a maximum price. A state agency may negotiate a lower
	price for goods under a contract listed on a schedule developed
	under this chapter.
	SECTION 7.  Section 2155.504, Government Code, is amended to
	read as follows:
	Sec. 2155.504.  USE OF SCHEDULE BY GOVERNMENTAL ENTITIES.
	(a) A [state agency or] local government may purchase goods [or
	services] directly from a vendor under a contract listed on a
	schedule developed under this subchapter. A purchase authorized by
	this section satisfies any requirement of state law relating to
	competitive bids or proposals and satisfies any applicable
	requirements of Chapter 2157.
	(b)  The price listed for a good [or service] under a
	multiple award contract is a maximum price. A [An agency or] local
	government may negotiate a lower price for goods [or services]
	under a contract listed on a schedule developed under this
	subchapter.
	SECTION 8.  Section 2155.505(a)(3), Government Code, is
	amended to read as follows:
	(3)  "Veterans service agency" means a community-based
	organization that:
	(A)  is exempt from taxation under Section 501(a),
	Internal Revenue Code of 1986, as an organization described in
	Section 501(c)(3) of that code;
	(B)  has as its principal purpose to provide
	housing, substance abuse treatment, case management services, and
	employment training to low-income veterans, disabled veterans, and
	homeless veterans and their families; and
	(C)  employs veterans to provide at least 75
	percent of the hours of direct labor by individuals required to
	produce goods [or provide services] required under a contract
	entered into under this section.
	SECTION 9.  Sections 2155.505(b) and (c), Government Code,
	are amended to read as follows:
	(b)  The commission shall strongly encourage each vendor
	with a contract listed on a schedule developed under this
	subchapter and who is not a historically underutilized business or
	small business to use historically underutilized or small
	businesses to sell goods [or provide a service] under the contract.
	If a vendor does not make a good faith effort to use historically
	underutilized and small businesses under the contract, the
	commission may exclude the vendor from being listed on a schedule
	developed under this subchapter.
	(c)  A historically underutilized business or small business
	may sell goods [or provide a service] under another vendor's
	contract listed on a schedule developed under this subchapter if:
	(1)  the contract is on a schedule developed under
	Section 2155.502;
	(2)  the vendor for the contract authorizes in writing
	the historically underutilized business or small business to sell
	goods [or provide a service] under that contract; and
	(3)  the historically underutilized business or small
	business provides that written authorization to the commission.
	SECTION 10.  Section 2157.068, Government Code, is amended
	by amending Subsection (a) and adding Subsections (e-1) and (e-2)to
	read as follows:
	(a)  In this section, "commodity items" means commercial
	software or[,] hardware[, or technology services, other than
	telecommunications services,] that is [are] generally available to
	businesses or the public and for which the department determines
	that a reasonable demand exists in two or more state agencies. The
	term includes seat management, through which a state agency
	transfers its personal computer equipment and service
	responsibilities to a private vendor to manage the personal
	computing needs for each desktop in the state agency, including all
	necessary hardware, software, and support services.
	(e-1)  A state agency contracting to purchase a commodity
	item shall use the list maintained as required by Subsection (e) as
	follows:
	(1)  for a contract with a value of $50,000 or less, the
	agency may directly award the contract to a vendor included on the
	list without submission of a request for bids to other vendors on
	the list;
	(2)  for a contract with a value of more than $50,000
	but not more than $150,000, the agency must submit a request for
	proposals to at least three vendors included on the list in the
	category to which the contract relates;
	(3)  for a contract with a value of more than $150,000
	but not more than $1 million, the agency must submit a request for
	proposals to at least six vendors included on the list in the
	category to which the contract relates; and
	(e-2)  A state agency may not enter into a contract to
	purchase a commodity item if the value of the contract exceeds $1
	million.
	SECTION 11.  Subchapter Z, Chapter 2252, Government Code, is
	amended by adding Section 2252.9011 to read as follows:
	Sec. 2252.9011.  CONTRACTS WITH FORMER OR RETIRED PRIVATE
	VENDOR EMPLOYEES. A state agency may not enter into an employment
	contract, a professional services contract under Chapter 2254, or a
	consulting services contract under Chapter 2254 with an individual
	who is a former or retired employee of a private vendor under which
	the individual will perform services for the agency related to the
	individual's former duties for the vendor under a contract with the
	agency before the second anniversary of the last date on which the
	individual was employed by the private vendor.
	SECTION 12.  Section 2254.021(6), Government Code, is
	amended to read as follows:
	(6)  "State governmental entity" means a state
	department, commission, board, office, institution, facility, or
	other agency the jurisdiction of which is not limited to a
	geographical portion of the state. The term includes a university
	system and an institution of higher education[, other than a public
	junior college,] as defined by Section 61.003, Education Code. The
	term does not include a political subdivision.
	SECTION 13.  Section 2261.001(a), Government Code, is
	amended to read as follows:
	(a)  This chapter applies only to each procurement of goods
	or services made by a state agency that is neither made by the
	comptroller nor made under purchasing authority delegated to the
	agency [by or] under [Section 51.9335 or 73.115, Education Code,
	or] Section 2155.131 or 2155.132.
	SECTION 14.  Chapter 2261, Government Code, is amended by
	adding Subchapter F to read as follows:
	SUBCHAPTER F. ETHICS, REPORTING, AND APPROVAL REQUIREMENTS FOR
	CERTAIN CONTRACTS
	Sec. 2261.251.  APPLICABILITY OF SUBCHAPTER. Section
	2261.001 does not apply to this subchapter.
	Sec. 2261.252.  DISCLOSURE OF POTENTIAL CONFLICTS OF
	INTEREST; CERTAIN CONTRACTS PROHIBITED. (a) Each state agency
	employee or official who is involved in procurement or in contract
	management for a state agency shall disclose to the agency any
	potential conflict of interest specified by state law or agency
	policy that is known by the employee or official with respect to any
	contract with a private vendor or bid for the purchase of goods or
	services from a private vendor by the agency.
	(b)  A state agency may not enter into a contract for the
	purchase of goods or services with a private vendor with whom any of
	the following agency employees or officials have a financial
	interest:
	(1)  a member of the agency's governing body;
	(2)  the governing official, executive director,
	general counsel, chief procurement officer, or procurement
	director of the agency; or
	(3)  a family member related to an employee or official
	described by Subdivision (1) or (2) within the second degree by
	affinity or consanguinity.
	(c)  A state agency employee or official has a financial
	interest in a person if the employee or official:
	(1)  owns or controls, directly or indirectly, an
	ownership interest of at least one percent in the person, including
	the right to share in profits, proceeds, or capital gains; or
	(2)  could reasonably foresee that a contract with the
	person could result in a financial benefit to the employee or
	official.
	(d)  A financial interest prohibited by this section does not
	include a retirement plan, blind trust, insurance coverage, or
	ownership interest of less than one percent in a corporation.
	Sec. 2261.253.  REQUIRED POSTING OF CERTAIN CONTRACTS;
	ENHANCED CONTRACT AND PERFORMANCE MONITORING. (a) For each
	contract for the purchase of goods or services from a private
	vendor, each state agency shall post on its Internet website a list
	of:
	(1)  each contract the agency enters into, including
	contracts entered into without inviting, advertising for, or
	otherwise requiring competitive bidding before selection of the
	contractor, until the contract expires or is completed;
	(2)  the statutory or other authority under which a
	contract that is not competitively bid under Subdivision (1) is
	entered into without compliance with competitive bidding
	procedures; and
	(3)  the request for proposals related to a
	competitively bid contract included under Subdivision (1) until the
	contract expires or is completed.
	(b)  A state agency monthly may post contracts described by
	Subsection (a) that are valued at less than $15,000.
	(c)  Each state agency by rule shall establish a procedure to
	identify each contract that requires enhanced contract or
	performance monitoring and submit information on the contract to
	the agency's governing body or, if the agency is not governed by a
	multimember governing body, the officer who governs the agency.
	The agency's contract management office or procurement director
	shall immediately notify the agency's governing body or governing
	official, as appropriate, of any serious issue or risk that is
	identified with respect to a contract monitored under this
	subsection.
	Sec. 2261.254.  CONTRACTS WITH VALUE EXCEEDING $1 MILLION.
	(a) For each contract for the purchase of goods or services that
	has a value exceeding $1 million, a state agency shall develop and
	implement contract reporting requirements that provide information
	on:
	(1)  compliance with financial provisions and delivery
	schedules under the contract;
	(2)  corrective action plans required under the
	contract and the status of any active corrective action plan; and
	(3)  any liquidated damages assessed or collected under
	the contract.
	(b)  Each state agency shall verify:
	(1)  the accuracy of any information reported under
	Subsection (a) that is based on information provided by a
	contractor; and
	(2)  the delivery time of goods or services scheduled
	for delivery under the contract.
	(c)  Except as provided by Subsection (d), a state agency may
	enter into a contract for the purchase of goods or services that has
	a value exceeding $1 million only if:
	(1)  the governing body of the state agency approves
	the contract and the approved contract is signed by the presiding
	officer of the governing body; or
	(2)  for a state agency that is not governed by a
	multimember governing body, the officer who governs the agency
	approves and signs the contract.
	(d)  The governing body or governing official of a state
	agency, as appropriate, may delegate to the executive director of
	the agency the approval and signature authority under Subsection
	(c).
	Sec. 2261.255.  CONTRACTS WITH VALUE EXCEEDING $5 MILLION.
	For each state agency contract for the purchase of goods or services
	that has a value exceeding $5 million, the contract management
	office or procurement director of the agency must:
	(1)  verify in writing that the solicitation and
	purchasing methods and contractor selection process comply with
	state law and agency policy; and
	(2)  submit to the governing body of the agency, or
	governing official of the agency if the agency is not governed by a
	multimember governing body, information on any potential issue that
	may arise in the solicitation, purchasing, or contractor selection
	process.
	Sec. 2261.256.  RISK ANALYSIS PROCEDURE; CONTRACT
	MANAGEMENT HANDBOOK; CONTRACT MANAGEMENT DATABASE. (a) Each state
	agency shall develop and comply with a risk analysis procedure. The
	procedure must provide for:
	(1)  assessing the risk of fraud, abuse, or waste in the
	contractor selection process, contract provisions, and payment and
	reimbursement rates and methods for the different types of goods
	and services for which the agency contracts; and
	(2)  identifying contracts that require enhanced
	contract monitoring.
	(b)  Each state agency shall publish a contract management
	handbook that establishes consistent contracting policies and
	practices to be followed by the agency and that is consistent with
	the comptroller's contract management guide. The agency handbook
	may include standard contract provisions and formats for the agency
	to incorporate in contracts.
	(c)  Each state agency shall establish a central contract
	management database that identifies each contract made with the
	agency.
	SECTION 15.  Section 2262.001(5), Government Code, is
	amended to read as follows:
	(5)  "State agency" has the meaning provided by Section
	2056.001, except that the term includes a university system or an
	institution of higher education as defined by Section 61.003,
	Education Code.
	SECTION 16.  Sections 2262.101(a), (b), and (c), Government
	Code, as amended by Chapters 676 (H.B. 1965) and 1227 (S.B. 1681),
	Acts of the 83rd Legislature, Regular Session, 2013, are reenacted
	and 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, including
	the value of any amendment to or extension of the contract
	authorized in the contract that would increase the value of the
	contract;
	(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 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) [(4)]  developing and recommending policies and
	procedures to improve state agency contract management practices;
	(7) [(5)]  developing and recommending procedures to
	improve state agency contracting practices by including
	consideration for best value; and
	(8) [(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 [reviewed]
	under Subsection (a)(8) [(a)(6)] must include[, but is not limited
	to] the following criteria:
	(1)  the amount of appropriations to the agency;
	(2)  total contract value as a percentage of
	appropriations to the agency; and [or]
	(3)  the impact of the functions and duties of the state
	agency on the health, safety, and well-being of residents
	[citizens].
	(c)  The comptroller shall oversee the activities of the
	team, including ensuring that the team carries out its duties under
	Subsections (a)(1), [Subsection] (a)(5), and (a)(7).
	SECTION 17.  Section 2262.102(a), Government Code, is
	amended to read as follows:
	Sec. 2262.102.  MEMBERS. (a)  The team consists of the
	following nine [six] members:
	(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 member from a small state agency;
	(7)  one member from the Texas Department of
	Transportation;
	(8)  one member from the Texas Education Agency; and
	(9)  one member from the Texas Commission on
	Environmental Quality.
	SECTION 18.  Subchapter C, Chapter 2262, Government Code, is
	amended by adding Section 2262.105 to read as follows:
	Sec. 2262.105.  QUARTERLY REPORT TO LEGISLATIVE BUDGET
	BOARD. The contract advisory team shall submit a quarterly report
	to the Legislative Budget Board on:
	(1)  the number of solicitation documents and contracts
	reviewed by the team in the preceding quarter;
	(2)  the number of documents and contracts reviewed
	under Subdivision (1) compared to the total number of contracts
	entered into by state agencies, expressed as a percentage; and
	(3)  whether state agencies accepted or rejected the
	team's recommendations and any reasons provided by the state
	agencies for rejecting the recommendations.
	SECTION 19.  The following provisions are repealed:
	(1)  Sections 51.9335(d) and 73.115(d), Education
	Code; and
	(2)  Sections 2155.448(d), 2155.502(d), 2261.001(d),
	and 2262.002(a), Government Code.
	SECTION 20.  (a) As soon as is practicable after the
	effective date of this Act, the executive directors of the Texas
	Department of Transportation, the Texas Education Agency, and the
	Texas Commission on Environmental Quality shall each appoint a
	member to the contract advisory team as required by Section
	2262.102, Government Code, as amended by this Act.
	(b)  As soon as is practicable after the effective date of
	this Act, the comptroller of public accounts, and each affected
	state agency as necessary, shall adopt the rules and procedures and
	take the actions necessary to implement the changes in law made by
	this Act.
	SECTION 21.  To the extent of any conflict, this Act prevails
	over another Act of the 84th Legislature, Regular Session, 2015,
	relating to nonsubstantive additions to and corrections in enacted
	codes.
	SECTION 22.  The changes in law made by this Act apply only
	to a contract entered into on or after the effective date of this
	Act. A contract entered into 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 23.  This Act takes effect September 1, 2015.