S.B. No. 799
 
 
 
 
AN ACT
  relating to contracting procedures and requirements for
  governmental entities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 531.102, Government Code, is amended by
  adding Subsections (m-1) and (m-2) to read as follows:
         (m-1)  If the commission does not receive any responsive bids
  under Chapter 2155 on a competitive solicitation for the services
  of a qualified expert to review investigative findings under
  Subsection (l) or (m) and the number of contracts to be awarded
  under this subsection is not otherwise limited, the commission may
  negotiate with and award a contract for the services to a qualified
  expert on the basis of:
               (1)  the contractor's agreement to a set fee, either as
  a range or lump-sum amount; and 
               (2)  the contractor's affirmation and the office's
  verification that the contractor possesses the necessary
  occupational licenses and experience.
         (m-2)  Notwithstanding Sections 2155.083 and 2261.051, a
  contract awarded under Subsection (m-1) is not subject to
  competitive advertising and proposal evaluation requirements.
         SECTION 2.  Section 2054.003(10), Government Code, is
  amended to read as follows:
               (10)  "Major information resources project" means:
                     (A)  any information resources technology project
  identified in a state agency's biennial operating plan whose
  development costs exceed $5 million and that:
                           (i)  requires one year or longer to reach
  operations status;
                           (ii)  involves more than one state agency;
  or
                           (iii)  substantially alters work methods of
  state agency personnel or the delivery of services to clients;
  [and]
                     (B)  any information resources technology project
  designated by the legislature in the General Appropriations Act as
  a major information resources project; and
                     (C)  any information resources technology project
  of a state agency designated for additional monitoring under
  Section 2261.258(a)(1) if the development costs for the project
  exceed $5 million.
         SECTION 3.  Section 2054.008(b), Government Code, is amended
  to read as follows:
         (b)  A state agency shall provide written notice to the
  Legislative Budget Board of a contract for a major information
  system. The notice must be on a form prescribed by the Legislative
  Budget Board and filed not later than the 30th [10th] day after the
  date the agency enters into the contract.
         SECTION 4.  Section 2054.1181(a), Government Code, is
  amended to read as follows:
         (a)  The [At the direction of the governor, lieutenant
  governor, or speaker of the house of representatives, the]
  department shall provide additional oversight services [for major
  information resources projects], including risk management,
  quality assurance services, independent project monitoring, and
  project management, for major information resources projects
  described by Section 2054.003(10)(C) and for other major
  information resources projects selected for oversight by the
  governor, lieutenant governor, or speaker of the house of
  representatives. A state agency with a project subject to
  [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 5.  Section 2155.074, Government Code, is amended by
  amending Subsection (b) and adding Subsection (b-1) to read as
  follows:
         (b)  In determining the best value for the state, the
  purchase price and whether the goods or services meet
  specifications are principal considerations that must be balanced
  with other relevant factors [the most important considerations]. 
         (b-1)  The [However, the] comptroller or other state agency
  may, subject to Subsection (c) and Section 2155.075, consider the
  following [other] relevant factors under Subsection (b),
  including:
               (1)  installation costs;
               (2)  life cycle costs;
               (3)  the quality and reliability of the goods and
  services;
               (4)  the delivery terms;
               (5)  indicators of probable vendor performance under
  the contract such as past vendor performance, the vendor's
  financial resources and ability to perform, the vendor's experience
  or demonstrated capability and responsibility, and the vendor's
  ability to provide reliable maintenance agreements and support;
               (6)  the cost of any employee training associated with
  a purchase;
               (7)  the effect of a purchase on agency productivity;
               (8)  the vendor's anticipated economic impact to the
  state or a subdivision of the state, including potential tax
  revenue and employment; [and]
               (9)  the impact of a purchase on the agency's
  administrative resources; and
               (10)  other factors relevant to determining the best
  value for the state in the context of a particular purchase.
         SECTION 6.  Section 2155.075(a), Government Code, is amended
  to read as follows:
         (a)  For a purchase made through competitive bidding, the
  comptroller or other state agency making the purchase must specify
  in the request for bids:
               (1)  the factors other than price that the comptroller
  or agency will consider in determining which bid offers the best
  value for the state; and
               (2)  the proposal criteria the comptroller or agency
  will use when considering the factors described by Subdivision (1).
         SECTION 7.  Section 2155.089(c), Government Code, is amended
  to read as follows:
         (c)  This section does not apply to:
               (1)  an enrollment contract described by 1 T.A.C.
  Section 391.183 as that section existed on September 1, 2015;
               (2)  a contract of the Employees Retirement System of
  Texas except for a contract with a nongovernmental entity for
  claims administration of a group health benefit plan under Subtitle
  H, Title 8, Insurance Code; or
               (3)  a contract entered into by:
                     (A)  the comptroller under Section 2155.061; [or]
                     (B)  the Department of Information Resources
  under Section 2157.068; or
                     (C)  a university system or an institution of
  higher education, as those terms are defined by Section 61.003,
  Education Code.
         SECTION 8.  Sections 2155.132(a), (b), and (e), Government
  Code, are amended to read as follows:
         (a)  A state agency is delegated the authority to purchase
  goods and services if the purchase does not exceed $50,000
  [$15,000]. If the comptroller determines that a state agency has
  not followed the comptroller's rules or the laws related to the
  delegated purchases, the comptroller shall report its
  determination to the members of the state agency's governing body
  and to the governor, lieutenant governor, speaker of the house of
  representatives, and Legislative Budget Board.
         (b)  The comptroller by rule may delegate to a state agency
  the authority to purchase goods and services if the purchase
  exceeds $50,000 [$15,000]. In delegating purchasing authority
  under this subsection or Section 2155.131, the comptroller shall
  consider factors relevant to a state agency's ability to perform
  purchasing functions, including:
               (1)  the capabilities of the agency's purchasing staff
  and the existence of automated purchasing tools at the agency;
               (2)  the certification levels held by the agency's
  purchasing personnel;
               (3)  the results of the comptroller's procurement
  review audits of an agency's purchasing practices; and
               (4)  whether the agency has adopted and published
  protest procedures consistent with those of the comptroller as part
  of its purchasing rules.
         (e)  Competitive bidding, whether formal or informal, is
  required for a purchase by a state agency if the purchase:
               (1)  exceeds $10,000 [$5,000]; and
               (2)  is made under a written contract.
         SECTION 9.  Section 2155.144, Government Code, is amended by
  adding Subsection (o) to read as follows:
         (o)  If the Health and Human Services Commission does not
  receive any responsive bids on a competitive solicitation for goods
  or services for a state hospital operated by a health and human
  services agency or a state supported living center as defined by
  Section 531.002, Health and Safety Code, the commission after
  making a written determination that competition is not available
  may negotiate with and award the contract to any qualified vendor
  who meets the requirements of the original solicitation:
               (1)  at a price consistent with the current market
  value of the goods or services; and
               (2)  for a term not to exceed five years.
         SECTION 10.  Section 2155.264, Government Code, is amended
  to read as follows:
         Sec. 2155.264.  AGENCY SOLICITATION OF BIDS OR PROPOSALS FOR
  ACQUISITION OVER $25,000 [$15,000]. A state agency that proposes
  to make a purchase or other acquisition that will cost more than
  $25,000 [$15,000] shall solicit bids or proposals from each
  eligible vendor on the master bidders list that serves the agency's
  geographic region. A state agency may also solicit bids or
  proposals through the use of on-line electronic transmission.
         SECTION 11.  Section 2157.068, Government Code, is amended
  by amending Subsections (e-1) and (e-2) and adding Subsection (e-4)
  to read as follows:
         (e-1)  Except as provided by Subsection (e-4), a [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, 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
  but not more than $10 [$5] 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 $10
  [$5] million.
         (e-4)  For a contract with a value of more than $5 million but
  not more than $10 million, a state agency may purchase a commodity
  item using a purchasing method designated by the comptroller under
  Section 2157.006(a)(2).
         SECTION 12.  Section 2166.2551, Government Code, is amended
  to read as follows:
         Sec. 2166.2551.  CONTRACT NOTIFICATION. The commission or
  an agency whose project is exempted from all or part of this chapter
  under Section 2166.003 shall provide written notice to the
  Legislative Budget Board of a contract for a construction project
  if the amount of the contract, including an amendment,
  modification, renewal, or extension of the contract, exceeds
  $50,000 [$14,000]. The notice must be on a form prescribed by the
  Legislative Budget Board and filed not later than the 30th [10th]
  day after the date the agency enters into the contract.
         SECTION 13.  Section 2254.006, Government Code, is amended
  to read as follows:
         Sec. 2254.006.  CONTRACT NOTIFICATION. A state agency,
  including an institution of higher education as defined by Section
  61.003, Education Code, shall provide written notice to the
  Legislative Budget Board of a contract for professional services,
  other than a contract for physician or optometric services, if the
  amount of the contract, including an amendment, modification,
  renewal, or extension of the contract, exceeds $50,000 [$14,000].
  The notice must be on a form prescribed by the Legislative Budget
  Board and filed not later than the 30th [10th] day after the date
  the agency enters into the contract.
         SECTION 14.  Subchapter A, Chapter 2254, Government Code, is
  amended by adding Section 2254.008 to read as follows:
         Sec. 2254.008.  CONTRACT FOR PROFESSIONAL SERVICES OF
  PHYSICIANS, OPTOMETRISTS, AND REGISTERED NURSES.  (a)  
  Notwithstanding Section 2254.003, if a governmental entity is
  procuring services provided in connection with the professional
  employment or practice of a professional described by Section
  2254.002(2)(B)(v), (vi), or (ix) and the number of contracts to be
  awarded under this section is not otherwise limited, the
  governmental entity may make the selection and award on the basis
  of:
               (1)  the provider's agreement to payment of a set fee,
  as a range or lump-sum amount; and
               (2)  the provider's affirmation and the governmental
  entity's verification that the provider has the necessary
  occupational licenses and experience.
         (b)  Notwithstanding Sections 2155.083 and 2261.051, a
  contract awarded under this section is not subject to competitive
  advertising and proposal evaluation requirements.
         SECTION 15.  Section 2254.0301(a), Government Code, is
  amended to read as follows:
         (a)  A state agency shall provide written notice to the
  Legislative Budget Board of a contract for consulting services if
  the amount of the contract, including an amendment, modification,
  renewal, or extension of the contract, exceeds $50,000 [$14,000].
  The notice must be on a form prescribed by the Legislative Budget
  Board and filed not later than the 30th [10th] day after the date
  the entity enters into the contract.
         SECTION 16.  Section 2262.051, Government Code, is amended
  by adding Subsections (i) and (j) to read as follows:
         (i)  The guide must include:
               (1)  instructions to assist a state agency in
  identifying the agency procurements that require an additional or
  secondary agency employee to serve as a contact for the procurement
  and establishing procedures for notifying vendors when to contact
  the additional or secondary agency employee;
               (2)  a general outline for the training a state agency
  must provide to the agency's procurement evaluators related to the
  goods and services the evaluator reviews for purchase by the
  agency, including training on the implementation of best value
  standards under Section 2155.074;
               (3)  for a procurement in an amount that exceeds $20
  million, the information a state agency must include in a contract
  file on the evaluator for that procurement, including the reasons
  the person was selected and the person's relevant qualifications;
  and
               (4)  a model communications procedure for vendors and
  agency employees, developed in collaboration with representatives
  from vendors and state agencies.
         (j)  For a procurement in an amount that exceeds $20 million
  other than a contract entered into by the comptroller under Section
  2155.061, the guide must require a state agency to notify
  interested parties at least two months before the date the agency
  issues the solicitation for the procurement.
         SECTION 17.  Section 264.603(a), Family Code, is amended to
  read as follows:
         (a)  The commission shall contract with one statewide
  organization that is exempt from federal income taxation under
  Section 501(a), Internal Revenue Code of 1986, as an organization
  described by Section 501(c)(3) of that code [and designated as a
  supporting organization under Section 509(a)(3) of that code,] and
  that is composed of individuals or groups of individuals who have
  expertise in the dynamics of child abuse and neglect and experience
  in operating volunteer advocate programs to provide training,
  technical assistance, and evaluation services for the benefit of
  local volunteer advocate programs. The contract shall:
               (1)  include measurable goals and objectives relating
  to the number of:
                     (A)  volunteer advocates in the program; and
                     (B)  children receiving services from the
  program; and
               (2)  follow practices designed to ensure compliance
  with standards referenced in the contract.
         SECTION 18.  Section 44.0331(a), Education Code, is amended
  to read as follows:
         (a)  A school district that enters into a purchasing contract
  valued at $25,000 or more under Section 44.031(a)(5), under
  Subchapter F, Chapter 271, Local Government Code, or under any
  other cooperative purchasing program authorized for school
  districts by law shall document a [any] contract-related fee,
  including a [any] management fee, paid by or to the district and the
  purpose of each fee under the contract.
         SECTION 19.  The changes in law made by this Act apply only
  to a contract for which a state agency first advertises or otherwise
  solicits offers, bids, proposals, qualifications, or other
  applicable expressions of interest on or after the effective date
  of this Act.  A contract for which a state agency first advertises
  or otherwise solicits offers, bids, proposals, qualifications, or
  other applicable expressions of interest before the effective date
  of this Act is governed by the law as it existed immediately before
  the effective date of this Act, and that law is continued in effect
  for that purpose.
         SECTION 20.  As soon as practicable after the effective date
  of this Act, the Department of Information Resources shall adopt
  rules necessary to implement the changes in law made by this Act.
         SECTION 21.  If before implementing any provision of this
  Act a state agency determines that a waiver or authorization from a
  federal agency is necessary for implementation of that provision,
  the agency affected by the provision shall request the waiver or
  authorization and may delay implementing that provision until the
  waiver or authorization is granted.
         SECTION 22.  This Act takes effect September 1, 2021.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 799 passed the Senate on    
  April 19, 2021, by the following vote: Yeas 31, Nays 0; and that
  the Senate concurred in House amendments on May 29, 2021, by the
  following vote: Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 799 passed the House, with
  amendments, on May 25, 2021, by the following vote: Yeas 145,
  Nays 0, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor