Bill Text: TX HB1943 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to the review and oversight of state agency contracts.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-03-29 - Referred directly to s/c on Budget Transparency and Reform by chair [HB1943 Detail]
Download: Texas-2017-HB1943-Introduced.html
85R11272 YDB-D | ||
By: Shaheen | H.B. No. 1943 |
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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. |