S.B. No. 1681

	AN ACT
	relating to oversight and management of state contracts.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subchapter A, Chapter 2262, Government Code, is
	amended by adding Sections 2262.0015 and 2262.005 to read as
	follows:
	Sec. 2262.0015.  APPLICABILITY TO CERTAIN CONTRACTS.
	(a)  The comptroller by rule shall establish threshold
	requirements that exclude small or routine contracts, including
	purchase orders, from the application of this chapter.
	(b)  This chapter does not apply to an enrollment contract
	described by 1 T.A.C. Section 391.183 as that section existed on
	November 1, 2013.
	Sec. 2262.005.  CONSULTATION WITH STATE AGENCIES.  The
	comptroller shall consult with state agencies in developing forms,
	contract terms, and criteria required under this chapter.
	SECTION 2.  The heading to Section 2262.053, Government
	Code, is amended to read as follows:
	Sec. 2262.053.  TRAINING FOR CONTRACT MANAGERS.
	SECTION 3.  Section 2262.053, Government Code, is amended by
	amending Subsections (a) and (d) and adding Subsections (e) and (f)
	to read as follows:
	(a)  In coordination with the [comptroller,] Department of
	Information Resources, [and] state auditor, and Health and Human
	Services Commission, the comptroller [commission] shall develop
	[or administer] a training program for contract managers.
	(d)  The comptroller [Texas Building and Procurement
	Commission] shall administer [the] training [program] under this
	section.
	(e)  The comptroller shall certify contract managers who
	have completed the contract management training required under this
	section.
	(f)  A state agency may develop qualified contract manager
	training to supplement the training required under this section.
	The comptroller may incorporate the training developed by the
	agency into the training program under this section.
	SECTION 4.  Subchapter B, Chapter 2262, Government Code, is
	amended by adding Sections 2262.0535 and 2262.055 to read as
	follows:
	Sec. 2262.0535.  TRAINING FOR GOVERNING BODIES. (a)  The
	comptroller shall adapt the program developed under Section
	2262.053 to provide an abbreviated program for training the members
	of the governing bodies of state agencies. The training may be
	provided together with other required training for members of state
	agency governing bodies.
	(b)  All members of the governing body of a state agency
	shall complete at least one course of the training provided under
	this section. This subsection does not apply to a state agency that
	does not enter into any contracts.
	Sec. 2262.055.  VENDOR PERFORMANCE TRACKING SYSTEM.
	(a)  The comptroller shall evaluate the vendor's performance based
	on information reported by state agencies and criteria established
	by the comptroller.
	(b)  The comptroller shall establish an evaluation process
	that allows vendors who receive an unfavorable performance review
	to protest any classification given by the comptroller.
	(c)  The comptroller shall include the performance reviews
	in a vendor performance tracking system.
	SECTION 5.  Section 2262.101, Government Code, is amended to
	read as follows:
	Sec. 2262.101.  CREATION; DUTIES. (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 [of major]
	contracts of [by] state agencies that have a value of at least $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; [and]
	(3)  providing recommendations to the comptroller
	[commission] 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; and
	(6)  creating and periodically performing a risk
	assessment to determine the appropriate level of management and
	oversight of contracts by state agencies.
	(b)  The risk assessment created and performed under
	Subsection (a)(6) must include the following criteria:
	(1)  the amount of appropriations to the agency;
	(2)  total contract value as a percentage of
	appropriations to the agency; or
	(3)  the impact of the functions and duties of the state
	agency on the health, safety, and well-being of residents.
	(c)  The comptroller shall oversee the activities of the
	team, including ensuring that the team carries out its duties under
	Subsection (a)(5).
	(d)  A state agency shall:
	(1)  comply with a recommendation made under Subsection
	(a)(1); or
	(2)  submit a written explanation regarding why the
	recommendation is not applicable to the contract under review.
	(e)  The team may review documents under Subsection (a)(1)
	only for compliance with contract management and best practices
	principles and may not make a recommendation regarding the purpose
	or subject of the contract.
	(f)  The team may develop an expedited process for reviewing
	solicitations under Subsection (a)(1) for contracts:
	(1)  that the team identifies as posing a low risk of
	loss to the state; or
	(2)  for which templates will be used more than once by
	a state agency.
	SECTION 6.  Section 2262.102, Government Code, is amended by
	amending Subsection (a) and adding Subsections (c) and (d) to read
	as follows:
	(a)  The team consists of the following six [five] members:
	(1)  one member from the Health and Human Services
	Commission [attorney general's office];
	(2)  one member from the comptroller's office;
	(3)  one member from the Department of Information
	Resources;
	(4)  one member from the Texas Facilities [Building and
	Procurement] Commission; [and]
	(5)  one member from the governor's office; and
	(6)  one member from a small state agency.
	(c)  The attorney general's office shall provide legal
	assistance to the team.
	(d)  In this section, "small state agency" means a state
	agency with fewer than 100 employees.
	SECTION 7.  Chapter 2262, Government Code, is amended by
	adding Subchapter D to read as follows:
	SUBCHAPTER D. CONTRACT FORMS AND PROVISIONS
	Sec. 2262.151.  CONTRACT TERMS RELATING TO NONCOMPLIANCE.
	(a)  The comptroller shall develop recommendations for contract
	terms regarding remedies for noncompliance by contractors,
	including remedies for noncompliance with any required disclosure
	of conflicts of interest by contractors. The comptroller may
	develop recommended contract terms that are generally applicable to
	state contracts and terms that are applicable to important types of
	state contracts.
	(b)  A state agency may include applicable recommended terms
	in a contract entered into by the agency.
	Sec. 2262.152.  UNIFORM FORMS. The comptroller shall
	develop and make available a uniform and automated set of forms that
	a state agency may use in the different stages of the contracting
	process.
	Sec. 2262.153.  FORMS FOR REPORTING CONTRACTOR PERFORMANCE.
	As part of the uniform forms published under Section 2262.152, the
	comptroller shall develop forms for use by state agencies in
	reporting a contractor's performance for use in the vendor
	performance tracking system under Section 2262.055.
	SECTION 8.  Section 2262.003, Government Code, is
	transferred to Subchapter D, Chapter 2262, Government Code, as
	added by this Act, redesignated as Section 2262.154, Government
	Code, and amended to read as follows:
	Sec. 2262.154 [2262.003].  REQUIRED [CONTRACT] PROVISION
	RELATING TO AUDITING. (a)  Each state agency shall include in each
	of its contracts a term that provides that:
	(1)  the state auditor may conduct an audit or
	investigation of any entity receiving funds from the state directly
	under the contract or indirectly through a subcontract under the
	contract;
	(2)  acceptance of funds directly under the contract or
	indirectly through a subcontract under the contract acts as
	acceptance of the authority of the state auditor, under the
	direction of the legislative audit committee, to conduct an audit
	or investigation in connection with those funds; and
	(3)  under the direction of the legislative audit
	committee, an entity that is the subject of an audit or
	investigation by the state auditor must provide the state auditor
	with access to any information the state auditor considers relevant
	to the investigation or audit.
	(b)  The state auditor shall provide assistance to a state
	agency in developing the contract provisions.
	SECTION 9.  Subsection (f), Section 2262.051, Government
	Code, is repealed.
	SECTION 10.  Not later than May 1, 2014, the comptroller of
	public accounts shall develop the training program required by
	Section 2262.053, Government Code, as amended by this Act, and
	Section 2262.0535, Government Code, as added by this Act.
	SECTION 11.  A member of a governing body of a state agency
	is not required to complete the training provided under Section
	2262.0535, Government Code, as added by this Act, until September
	1, 2015.
	SECTION 12.  The comptroller of public accounts shall use
	the vendor performance tracking system established by the
	comptroller before the effective date of this Act in carrying out
	the comptroller's duties under Section 2262.055, Government Code,
	as added by this Act.
	SECTION 13.  A contract manager is not required to be
	certified under Chapter 2262, Government Code, as amended by this
	Act, until September 1, 2015.
	SECTION 14.  As soon as practicable, and not later than May
	1, 2014, the comptroller of public accounts and Contract Advisory
	Team shall develop the forms and recommendations required by this
	Act, including Sections 2262.151, 2262.152, and 2262.153,
	Government Code, as added by this Act.
	SECTION 15.  This Act takes effect November 1, 2013.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 1681 passed the Senate on
	April 24, 2013, by the following vote:  Yeas 30, Nays 0;
	May 24, 2013, Senate refused to concur in House amendments and
	requested appointment of Conference Committee; May 24, 2013, House
	granted request of the Senate; May 26, 2013, Senate adopted
	Conference Committee Report by the following vote:  Yeas 31,
	Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 1681 passed the House, with
	amendments, on May 22, 2013, by the following vote:  Yeas 148,
	Nays 0, two present not voting; May 24, 2013, House granted request
	of the Senate for appointment of Conference Committee;
	May 26, 2013, House adopted Conference Committee Report by the
	following vote:  Yeas 147, Nays 0, one present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor