Bill Text: TX HB579 | 2017-2018 | 85th Legislature | Engrossed
Bill Title: Relating to notice by a state agency regarding certain contracts for which the total value exceeds that of the initial contract.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2017-05-08 - Referred to Finance [HB579 Detail]
Download: Texas-2017-HB579-Engrossed.html
| By: Turner | H.B. No. 579 | |
|
|
||
|
|
||
| relating to notice by a state agency regarding certain contracts | ||
| for which the total value exceeds that of the initial contract. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter F, Chapter 2261, Government Code, is | ||
| amended by adding Section 2261.2555 to read as follows: | ||
| Sec. 2261.2555. NOTICE OF CERTAIN COST THAT EXCEEDS | ||
| CONTRACT AMOUNT; ENFORCEMENT. (a) Subject to Subsection (a-1), | ||
| for each state agency contract to purchase services from a vendor | ||
| for which the total value of the contract after any contract | ||
| amendment exceeds the total value of the initial contract by the | ||
| greater of five percent or more or $1 million or more, the state | ||
| agency in accordance with procedures established by the Legislative | ||
| Budget Board shall provide notice of the excessive cost to: | ||
| (1) the governor; | ||
| (2) the lieutenant governor; | ||
| (3) the speaker of the house of representatives; | ||
| (4) each member of the legislature; | ||
| (5) the board; and | ||
| (6) the state auditor's office. | ||
| (a-1) Subsection (a) applies only to a contract the cost of | ||
| which is paid for with appropriated funds. | ||
| (b) The state agency must provide the notice required under | ||
| Subsection (a) not later than the 30th day after the date of the | ||
| disclosure or discovery that the expected total value of the | ||
| contract after any contract amendment exceeds the total value of | ||
| the initial contract by the greater of five percent or more or $1 | ||
| million. The notice must include: | ||
| (1) the amount of the cost increase; | ||
| (2) the reason for the cost increase; | ||
| (3) any opportunity the state agency had to lessen the | ||
| cost or to purchase the service from another vendor after the first | ||
| discovery or disclosure of any cost increase to the agency; and | ||
| (4) any other information the Legislative Budget Board | ||
| determines relevant. | ||
| (c) The Legislative Budget Board may assess an enforcement | ||
| mechanism against a state agency that the board determines has | ||
| failed to provide notice as required by this section. The | ||
| enforcement mechanism must be assessed in accordance with the | ||
| schedule developed under Subsection (d). | ||
| (d) The Legislative Budget Board may establish a schedule of | ||
| enforcement mechanisms that may be assessed against a state agency | ||
| for a violation described by Subsection (c). 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 to purchase | ||
| services from a vendor for which the total value of the contract | ||
| after any contract amendment exceeds the total value of the initial | ||
| contract by the greater of five percent or more or $1 million or | ||
| more. | ||
| (e) The Legislative Budget Board's director may recommend | ||
| to the board an enforcement mechanism to be assessed against a state | ||
| agency for a violation described by Subsection (c). The board may | ||
| increase the severity of an enforcement mechanism assessed against | ||
| a state agency for repeated violations. | ||
| (f) The Legislative Budget Board may dismiss an enforcement | ||
| mechanism assessed against a state agency by the board for a | ||
| violation described by Subsection (c) on successful implementation | ||
| of corrective action approved by the board. | ||
| SECTION 2. 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 3. This Act takes effect September 1, 2017. | ||
