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  84R6609 YDB-D
 
  By: Nelson S.B. No. 353
 
 
 
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.  Sections 2155.078(a) and (b), Government Code,
  are amended 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.
         (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 2.  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 or bid for the purchase of goods or services by the agency.
         (b)  A state agency may not enter into a contract for the
  purchase of goods or services with a person 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 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.
         Sec. 2261.253.  REQUIRED POSTING OF CERTAIN CONTRACTS;
  ENHANCED CONTRACT AND PERFORMANCE MONITORING.  (a)  For each
  contract for the purchase of goods or services, each state agency
  shall post on its Internet website a list of:
               (1)  each contract the agency enters into without
  inviting, advertising for, or otherwise requiring competitive
  bidding before selection of the contractor; and
               (2)  the statutory or other authority under which the
  contract described by Subdivision (1) may be entered into without
  compliance with competitive bidding procedures.
         (b)  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. The 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 3.  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 4.  This Act takes effect September 1, 2015.