85R11272 YDB-D
	By: Shaheen	H.B. No. 1943

	A BILL TO BE ENTITLED
	AN ACT
	relating to the review and oversight of state agency contracts.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Chapter 322, Government Code, is amended by
	adding Sections 322.021, 322.0211, and 322.0212 to read as follows:
	Sec. 322.021.  STATE AGENCY CONTRACT OVERSIGHT. (a)  In this
	section:
	(1)  "Board" means the Legislative Budget Board.
	(2)  "State agency" has the meaning assigned by Section
	2054.003.
	(b)  The board may review state agency contracts to determine
	compliance with the contract management guide developed under
	Section 2054.554, the comptroller's procurement policy manuals,
	and each applicable state contracting law, rule, policy, and
	procedure.  The authority to review a state agency contract under
	this subsection applies regardless of the source of funds or method
	of financing for the contract and includes a contract funded only
	with nonappropriated funds.
	(c)  Board staff may request, and are entitled to obtain, any
	document related to a contract reviewed under this section or to a
	purchase under the contract.
	(d)  Each state agency shall cooperate with the board in
	conducting a contract review under this section and in resolving
	any issue resulting from the contract review.
	Sec. 322.0211.  NOTICE OF VIOLATION OF STATE CONTRACTING
	LAW; CORRECTIVE ACTION PLAN.  (a)  If the Legislative Budget Board
	determines under Section 322.021 that a state agency contract
	violates the contract management guide, the comptroller's
	procurement policy manuals, or a state contracting law, rule,
	policy, or procedure, the board's director may provide to the board
	and the state agency, comptroller, and governor written notice of
	the violation. A notice provided under this section must:
	(1)  detail the specific provision violated by the
	contract;
	(2)  recommend actions to be taken to address the
	violation and any identified risks related to the contract;
	(3)  list potential remedies for the violation; and
	(4)  state any enforcement mechanism that may be
	assessed under Section 322.0212 for the violation.
	(b)  A state agency that receives notice of a violation under
	Subsection (a) shall develop a written corrective action plan
	consistent with the board's recommendations and provide the plan to
	the board not later than the 30th calendar day after the date the
	agency receives the notice.
	(c)  The board may monitor a state agency's implementation of
	the corrective action plan.
	Sec. 322.0212.  ENFORCEMENT. (a)  The Legislative Budget
	Board may assess an enforcement mechanism against a state agency
	that the board determines under Section 322.021 is in violation of
	the contract management guide, the comptroller's procurement
	policy manuals, or a state contracting law, rule, policy, or
	procedure.  The enforcement mechanism must be assessed in
	accordance with the schedule developed under Subsection (b).
	(b)  The board may establish a schedule of enforcement
	mechanisms that may be assessed against a state agency for a
	violation described by Subsection (a). The enforcement mechanisms
	may include:
	(1)  enhanced monitoring of the state agency's
	contracts by board personnel;
	(2)  required consultation with the Contract Advisory
	Team established under Section 2262.101 or the quality assurance
	team established under Section 2054.158 before issuance of a
	contract by the state agency;
	(3)  targeted audits by the State Auditor's Office at
	the request of the board; and
	(4)  recommended cancellation of a contract determined
	to contain a violation described by Section 322.0211(a).
	(c)  The board's director may recommend to the board an
	enforcement mechanism to be assessed against a state agency for a
	contract violation.
	(d)  The board may increase the severity of an enforcement
	mechanism assessed against a state agency for repeated contract
	violations described by Section 322.0211(a).
	(e)  The board may dismiss an enforcement mechanism assessed
	against a state agency by the board for a contract violation
	described by Section 322.0211(a) on successful implementation of a
	corrective action plan by the agency under Section 322.0211(b).
	SECTION 2.  Section 2262.101, Government Code, is amended by
	adding Subsection (g) to read as follows:
	(g)  The team shall provide to the Legislative Budget Board a
	copy of:
	(1)  each recommendation made under Subsection (a)(1)
	on a solicitation or contract document not later than the 10th
	calendar day after the date the team makes the recommendation; and
	(2)  any written explanation submitted by a state
	agency under Subsection (d)(2) stating the reason a recommendation
	is not applicable to the contract under review not later than the
	10th calendar day after the date the team receives the explanation.
	SECTION 3.  This Act takes effect September 1, 2017.