84R6609 YDB-D
	By: Price	H.B. No. 1027

	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.