S.B. No. 533
 
 
 
 
AN ACT
  relating to governmental entity contracting and procurement.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 572.069, Government Code, is amended to
  read as follows:
         Sec. 572.069.  CERTAIN EMPLOYMENT FOR FORMER STATE OFFICER
  OR EMPLOYEE RESTRICTED.  A former state officer or employee of a
  state agency who during the period of state service or employment
  participated on behalf of a state agency in a procurement or
  contract negotiation involving a person may not accept employment
  from that person before the second anniversary of the date the
  contract is signed or the procurement is terminated or withdrawn
  [officer's or employee's service or employment with the state
  agency ceased].
         SECTION 2.  Section 2054.1181(a), Government Code, is
  amended to read as follows:
         (a)  At the direction of the governor, lieutenant governor,
  or speaker of the house of representatives [The quality assurance
  team, in coordination with the governor, may recommend major
  information resources projects to the department for oversight.   As
  part of this oversight], the department shall provide additional
  oversight services for major information resources projects,
  including risk management, quality assurance services, independent
  project monitoring, and project management.  A state agency with a
  project selected for oversight shall pay for oversight by the
  department and quality assurance team based on a funding model
  developed by the department.  The department may contract with a
  vendor to provide the necessary oversight at the department's
  direction.
         SECTION 3.  Section 2054.158, Government Code, is amended to
  read as follows:
         Sec. 2054.158.  QUALITY ASSURANCE TEAM; DUTIES.  (a)  The
  comptroller, state auditor, Legislative Budget Board, and
  department shall:
               (1)  create a quality assurance team to perform the
  duties specified in this chapter and other law; [and]
               (2)  specify in writing the responsibilities of the
  comptroller, state auditor, Legislative Budget Board, and
  department in performing the duties; and
               (3)  create an automated project review system.
         (b)  The quality assurance team shall:
               (1)  develop and recommend policies and procedures to
  improve state agency information resources technology projects;
  [and]
               (2)  develop and recommend procedures to improve the
  implementation of state agency information resources technology
  projects by including considerations for best value and return on
  investment; and
               (3)  provide annual training for state agency
  procurement and contract management staff on best practices and
  methodologies for information technology contracts.
         (c)  The state auditor serves on the quality assurance team
  as an advisor.
         SECTION 4.  Section 2054.303(a), Government Code, is amended
  to read as follows:
         (a)  For each proposed major information resources project
  or major contract, a state agency must prepare:
               (1)  a business case providing the initial
  justification for the project or contract, including the
  anticipated return on investment in terms of cost savings and
  efficiency for the project or contract; [and]
               (2)  a statewide impact analysis of the project's or
  contract's effect on the state's common information resources
  infrastructure, including the possibility of reusing code or other
  resources; and
               (3)  in consultation with the department, a technical
  architectural assessment of the project or contract.
         SECTION 5.  Section 2054.304, Government Code, is amended by
  adding Subsections (d) and (e) to read as follows:
         (d)  In each project plan for a major information resources
  project, the state agency shall consider incorporating into the
  project the applicable best practices recommended in the quality
  assurance team's annual report.
         (e)  A state agency contract for a major information
  resources project must comply with the requirements in the
  comptroller's contract management guide developed under Section  
  2262.051.
         SECTION 6.  Subchapter B, Chapter 2155, Government Code, is
  amended by adding Sections 2155.090 and 2155.091 to read as
  follows:
         Sec. 2155.090.  VENDOR AND EMPLOYEE INTERACTION AND
  COMMUNICATION POLICY.  (a)  The comptroller shall update a contract
  management guide to include policies on the interactions and
  communication between employees of the state agency and a vendor
  that contracts with the state agency or seeks to conduct business
  with the state agency.
         (b)  This subtitle does not prohibit the exchange of
  information between a state agency and a vendor related to future
  solicitations or as necessary to monitor an existing contract.
         Sec. 2155.091.  CHIEF PROCUREMENT OFFICER:  POWERS AND
  DUTIES.  (a)  The comptroller shall employ a chief procurement
  officer to serve as the chief procurement officer for this state.
         (b)  The chief procurement officer has authority over state
  agency procurement, including the authority to:
               (1)  analyze state purchasing data to leverage state
  purchasing power;
               (2)  provide functional support to state agencies;
               (3)  provide training on state purchasing and contract
  management;
               (4)  review major contract solicitations for
  information technology projects monitored by the quality assurance
  team under Section 2054.158;
               (5)  review solicitations for major contracts reviewed
  by the Contract Advisory Team under Section 2262.101;
               (6)  delegate to a state agency authority to contract
  for the purchase of a good or service valued in an amount specified
  by comptroller rule; and
               (7)  provide leadership on procurement issues.
         (c)  A state agency shall comply with any request for
  information from the chief procurement officer necessary to conduct
  the analysis authorized by Subsection (b)(1).
         (d)  The chief procurement officer shall coordinate with the
  Department of Information Resources and the quality assurance team
  to conduct a contract solicitation review required by Subsection
  (a)(4) and make appropriate recommendations to the comptroller and
  legislature based on the review.  This section grants the chief
  procurement officer authority only to review a contract
  solicitation.  The Department of Information Resources or the
  appropriate state agency retains the authority to award a statewide
  information resources contract as authorized by law.
         (e)  The chief procurement officer shall coordinate with the
  Contract Advisory Team to conduct the review required by Section
  2262.101.  A state agency shall comply with any request for
  information by the chief procurement officer that is necessary to
  conduct the review.
         SECTION 7.  Subchapter D, Chapter 2155, Government Code, is
  amended by adding Section 2155.205 to read as follows:
         Sec. 2155.205.  INTERSTATE PURCHASING.  (a)  Subject to
  Section 2156.181 or other law, the comptroller may enter into
  agreements to authorize state agencies and political subdivisions
  of other states to purchase goods or services through comptroller
  contracts.
         (b)  The comptroller may charge a reasonable administrative
  fee to state agencies and political subdivisions of other states
  that purchase a good or service under this section.
         SECTION 8.  Sections 2157.068(e-1) and (e-2), Government
  Code, are amended to read as follows:
         (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 pricing to other vendors on
  the list;
               (2)  for a contract with a value of more than $50,000
  but not more than $1 million [$150,000], the agency must submit a
  request for pricing to at least three vendors included on the list
  in the category to which the contract relates; and
               (3)  for a contract with a value of more than $1 million 
  [$150,000] but not more than $5 [$1] million, the agency must submit
  a request for pricing to at least six vendors included on the list
  in the category to which the contract relates or all vendors on the
  schedule if the category has fewer than six vendors.
         (e-2)  A state agency may not enter into a contract to
  purchase a commodity item if the value of the contract exceeds $5 
  [$1] million.
         SECTION 9.  Section 2261.252, Government Code, is amended by
  adding Subsections (a-1), (e), and (f) to read as follows:
         (a-1)  A state agency employee or official is required to
  disclose under Subsection (a) any potential conflict of interest
  specified by state law or agency policy that is known by the
  employee or official at any time during:
               (1)  the procurement process, from the initial request
  for bids for the purchase of goods or services from a private vendor
  until the completed final delivery of the goods or services; or
               (2)  the term of a contract with a private vendor.
         (e)  This section applies only to a contract for the purchase
  of goods or services solicited through a purchase order if the
  amount of the purchase order exceeds $25,000.
         (f)  Section 51.923, Education Code, governs the conflicts
  of interest of the members of the governing board of an institution
  of higher education, as those terms are defined by Section 61.003,
  Education Code, and this section does not apply to those members.
         SECTION 10.  Section 2261.253, Government Code, is amended
  by adding Subsections (e), (f), (g), and (h) to read as follows:
         (e)  A state agency that posts a contract on its Internet
  website as required under this section shall redact from the posted
  contract:
               (1)  information that is confidential under law;
               (2)  information the attorney general determines is
  excepted from public disclosure under Chapter 552; and
               (3)  the social security number of any individual.
         (f)  The redaction of information under Subsection (e) does
  not exempt the information from the requirements of Section 552.021
  or 552.221.
         (g)  Subsection (a) does not apply to:
               (1)  a contract posted on the major contracts database
  established under Section 322.020; or
               (2)  a contract of an institution of higher education
  that is valued at less than $15,000 and paid with money other than
  funds appropriated to the institution by this state.
         (h)  In this section, "institution of higher education" has
  the meaning assigned by Section 61.003, Education Code, except that
  the term does not include a public junior college.
         SECTION 11.  Section 2262.101(a), Government Code, is
  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 $5 [$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;
               (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;
               (6)  developing and recommending policies and
  procedures to improve state agency contract management practices;
               (7)  developing and recommending procedures to improve
  state agency contracting practices by including consideration for
  best value; and
               (8)  creating and periodically performing a risk
  assessment to determine the appropriate level of management and
  oversight of contracts by state agencies.
         SECTION 12.  Section 2262.102, Government Code, is amended
  by adding Subsection (a-1) to read as follows:
         (a-1)  The chief procurement officer described by Section
  2155.091 may add members to the team by designating members from
  state agencies that agree to participate on the team.  A state
  agency may decline a request to participate on the team under this
  subsection by submitting a written statement declining the request
  to the chief procurement officer.
         SECTION 13.  Section 2269.056(b), Government Code, is
  amended to read as follows:
         (b)  The governmental entity shall base its selection among
  offerors on applicable criteria listed for the particular method
  used.  The governmental entity shall publish in the request for
  proposals or qualifications:
               (1)  the criteria that will be used to evaluate the
  offerors;
               (2)  [, and] the applicable weighted value for each
  criterion; and
               (3)  for state agencies, a detailed methodology for
  scoring each criterion.
         SECTION 14.  Section 2269.361(a), Government Code, is
  amended to read as follows:
         (a)  A governmental entity shall request proposals from
  design-build firms identified under Section 2269.359(c).  A
  response to a request for detailed proposals must be submitted on or
  before the earlier of the time for submission requested by the
  governmental entity or [firm must submit a proposal not later than]
  the 180th day after the date the governmental entity makes a public
  request for the proposals from the selected firms.  The request for
  proposals must include:
               (1)  a design criteria package;
               (2)  if the project site is identified, a geotechnical
  baseline report or other information that provides the design-build
  firm minimum geotechnical design parameters to submit a proposal;
               (3)  detailed instructions for preparing the technical
  proposal and the items to be included, including a description of
  the form and level of completeness of drawings expected; and
               (4)  the relative weighting of the technical and price
  proposals and the formula by which the proposals will be evaluated
  and ranked.
         SECTION 15.  Subchapter A, Chapter 8, Education Code, is
  amended by adding Section 8.012 to read as follows:
         Sec. 8.012.  CONTRACT MANAGEMENT GUIDE.  The agency shall
  comply with the comptroller's contract management guide developed
  under Section 2262.051, Government Code, in each contract between
  the agency and a regional education service center established
  under this chapter.
         SECTION 16.  Section 51.923(e), Education Code, is amended
  to read as follows:
         (e)  For purposes of this section, a member of a governing
  board has a substantial interest in a business entity if:
               (1)  the member owns one [10] percent or more of the
  voting stock or shares of the business entity or owns either one
  [10] percent or more or $15,000 or more of the fair market value of
  the business entity;
               (2)  funds received by the member from the business
  entity exceed one [10] percent of the member's gross income for the
  previous year;
               (3)  the member is an officer of the business entity or
  a member of the governing board of the business entity; or
               (4)  an individual related to the member in the first
  degree by consanguinity or affinity, as determined under Chapter
  573, Government Code, has an interest in the business entity as
  described by Subdivision (1), (2), or (3).
         SECTION 17.  (a)  Not later than January 1, 2018, the
  comptroller shall:
               (1)  employ a chief procurement officer as required by
  Section 2155.091, Government Code, as added by this Act; and
               (2)  adopt any rules necessary to implement the changes
  in law made by this Act.
         (b)  Not later than January 1, 2018, each state agency shall
  adopt a vendor and employee interaction and communication policy as
  required by Section 2155.090, Government Code, as added by this
  Act.
         (c)  The changes in law made by this Act apply only in
  relation 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.
         (d)  Notwithstanding the other provisions of this Act,
  Section 2269.361(a), Government Code, as amended by this Act,
  applies to a contract entered into on or after the effective date of
  this Act and for which a bid or other solicitation response was
  submitted after June 21, 2017.
         (e)  Notwithstanding the other provisions of this Act,
  Section 51.923, Education Code, as amended by this Act, applies
  only to a contract or other transaction entered into on or after the
  effective date of this Act.  A contract or other transaction entered
  into before the effective date of this Act is governed by the law in
  effect on the date on which the contract or other transaction was
  entered into, and the former law is continued in effect for that
  purpose.
         SECTION 18.  This Act takes effect September 1, 2017.
 
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 533 passed the Senate on
  April 20, 2017, by the following vote:  Yeas 31, Nays 0;
  May 19, 2017, Senate refused to concur in House amendments and
  requested appointment of Conference Committee; May 22, 2017, House
  granted request of the Senate; May 28, 2017, Senate adopted
  Conference Committee Report by the following vote:  Yeas 30,
  Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 533 passed the House, with
  amendments, on May 17, 2017, by the following vote:  Yeas 139,
  Nays 0, two present not voting; May 22, 2017, House granted request
  of the Senate for appointment of Conference Committee;
  May 28, 2017, House adopted Conference Committee Report by the
  following vote:  Yeas 144, Nays 2, one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
             Date
 
 
  ______________________________ 
            Governor