By: Nelson S.B. No. 533     (Geren)           A BILL TO BE ENTITLED   AN ACT   relating to state agency contracting and procurement.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 2054.1181(a), Government Code, is   amended to read as follows:          (a)  At the direction of the governor, lieutenant governor,   or speaker of the house of representatives [The quality assurance   team, in coordination with the governor, may recommend major   information resources projects to the department for oversight.   As   part of this oversight], the department shall provide additional   oversight services for major information resources projects,   including risk management, quality assurance services, independent   project monitoring, and project management.  A state agency with a   project 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 2.  Section 2054.158, Government Code, is amended to   read as follows:          Sec. 2054.158.  QUALITY ASSURANCE TEAM; DUTIES.  (a)  The   comptroller, state auditor, Legislative Budget Board, and   department shall:                (1)  create a quality assurance team to perform the   duties specified in this chapter and other law; [and]                (2)  specify in writing the responsibilities of the   comptroller, state auditor, Legislative Budget Board, and   department in performing the duties; and                (3)  create an automated project review system.          (b)  The quality assurance team shall:                (1)  develop and recommend policies and procedures to   improve state agency information resources technology projects;   [and]                (2)  develop and recommend procedures to improve the   implementation of state agency information resources technology   projects by including considerations for best value and return on   investment; and                (3)  provide annual training for state agency   procurement and contract management staff on best practices and   methodologies for information technology contracts.          (c)  The state auditor serves on the quality assurance team   as an advisor.          SECTION 3.  Section 2054.303(a), Government Code, is amended   to read as follows:          (a)  For each proposed major information resources project   or major contract, a state agency must prepare:                (1)  a business case providing the initial   justification for the project or contract, including the   anticipated return on investment in terms of cost savings and   efficiency for the project or contract; [and]                (2)  a statewide impact analysis of the project's or   contract's effect on the state's common information resources   infrastructure, including the possibility of reusing code or other   resources; and                (3)  in consultation with the department, a technical   architectural assessment of the project or contract.          SECTION 4.  Section 2054.304, Government Code, is amended by   adding Subsections (d) and (e) to read as follows:          (d)  In each project plan for a major information resources   project, the state agency shall consider incorporating into the   project the applicable best practices recommended in the quality   assurance team's annual report.          (e)  A state agency contract for a major information   resources project must comply with the requirements in the   comptroller's contract management guide developed under Section     2262.051.          SECTION 5.  Subchapter B, Chapter 2155, Government Code, is   amended by adding Sections 2155.090 and 2155.091 to read as   follows:          Sec. 2155.090.  VENDOR AND EMPLOYEE INTERACTION AND   COMMUNICATION POLICY.  The comptroller shall update a contract   management guide to include policies on the interactions and   communication between employees of the state agency and a vendor   that contracts with the state agency or seeks to conduct business   with the state agency.          (b)  This subtitle does not prohibit the exchange of   information between a state agency and a vendor related to future   solicitations or as necessary to monitor an existing contract.          Sec. 2155.091.  CHIEF PROCUREMENT OFFICER:  POWERS AND   DUTIES.  (a)  The comptroller shall employ a chief procurement   officer to serve as the chief procurement officer for this state.          (b)  The chief procurement officer has authority over state   agency procurement, including the authority to:                (1)  analyze state purchasing data to leverage state   purchasing power;                (2)  provide functional support to state agencies;                (3)  provide training on state purchasing and contract   management;                (4)  review major contract solicitations for   information technology projects monitored by the quality assurance   team under Section 2054.158;                (5)  review solicitations for major contracts reviewed   by the Contract Advisory Team under Section 2262.101;                (6)  delegate to a state agency authority to contract   for the purchase of a good or service valued in an amount specified   by comptroller rule; and                (7)  provide leadership on procurement issues.          (c)  A state agency shall comply with any request for   information from the chief procurement officer necessary to conduct   the analysis authorized by Subsection (b)(1).          (d)  The chief procurement officer shall coordinate with the   Department of Information Resources and the quality assurance team   to conduct a contract solicitation review required by Subsection   (a)(4) and make appropriate recommendations to the comptroller and   legislature based on the review.  This section grants the chief   procurement officer authority only to review a contract   solicitation.  The Department of Information Resources or the   appropriate state agency retains the authority to award a statewide   information resources contract as authorized by law.          (e)  The chief procurement officer shall coordinate with the   Contract Advisory Team to conduct the review required by Section   2262.101.  A state agency shall comply with any request for   information by the chief procurement officer that is necessary to   conduct the review.          SECTION 6.  Subchapter D, Chapter 2155, Government Code, is   amended by adding Section 2155.205 to read as follows:          Sec. 2155.205.  INTERSTATE PURCHASING.     (a)  Notwithstanding Section 2156.181 or other law, the   comptroller may enter into agreements to authorize state agencies   and political subdivisions of other states to purchase goods or   services through comptroller contracts.          (b)  The comptroller may charge a reasonable administrative   fee to state agencies and political subdivisions of other states   that purchase a good or service under this section.          SECTION 7.  Sections 2157.068(e-1) and (e-2), Government   Code, are amended to read as follows:          (e-1)  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 [$150,000], 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    [$150,000] but not more than $5 [$1] 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 $5    [$1] million.          SECTION 8.  Section 2261.252, Government Code, is amended by   adding Subsections (a-1) and (e) to read as follows:          (a-1)  A state agency employee or official is required to   disclose under Subsection (a) any potential conflict of interest   specified by state law or agency policy that is known by the   employee or official at any time during:                (1)  the procurement process, from the initial request   for bids for the purchase of goods or services from a private vendor   until the completed final delivery of the goods or services; or                (2)  the term of a contract with a private vendor.          (e)  This section applies only to a contract for the purchase   of goods or services solicited through a purchase order if the   amount of the purchase order exceeds $25,000.          SECTION 9.  Section 2261.253, Government Code, is amended by   amending Subsection (b) and adding Subsection (e) to read as   follows:          (b)  [A state agency monthly may post contracts described by]   Subsection (a) does not apply to a contract posted on the major   contracts database established under Section 322.020 [that are   valued at less than $15,000].          (e)  A state agency that posts a contract on its Internet   website as required under this section shall redact from the posted   contract:                (1)  information that is confidential under law;                (2)  information the attorney general determines is   excepted from public disclosure under Chapter 552; and                (3)  the social security number of any individual.          SECTION 10.  Section 2262.101(a), Government Code, is   amended to read as follows:          (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 contracts of   state agencies that have a value of at least $5 [$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;                (3)  providing recommendations to the comptroller   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;                (6)  developing and recommending policies and   procedures to improve state agency contract management practices;                (7)  developing and recommending procedures to improve   state agency contracting practices by including consideration for   best value; and                (8)  creating and periodically performing a risk   assessment to determine the appropriate level of management and   oversight of contracts by state agencies.          SECTION 11.  Section 2262.102, Government Code, is amended   by adding Subsection (a-1) to read as follows:          (a-1)  The chief procurement officer described by Section   2155.091 may add members to the team by designating members from   state agencies that agree to participate on the team.  A state   agency may decline a request to participate on the team under this   subsection by submitting a written statement declining the request   to the chief procurement officer.          SECTION 12.  Subchapter A, Chapter 8, Education Code, is   amended by adding Section 8.012 to read as follows:          Sec. 8.012.  CONTRACT MANAGEMENT GUIDE.  The agency shall   comply with the comptroller's contract management guide developed   under Section 2262.051, Government Code, in each contract between   the agency and a regional education service center established   under this chapter.          SECTION 13.  (a)  Not later than January 1, 2018, the   comptroller shall:                (1)  employ a chief procurement officer as required by   Section 2155.091, Government Code, as added by this Act;                (2)  modify the contract management guide as required   by Section 2262.051(i), Government Code, as added by this Act; and                (3)  adopt any rules necessary to implement the changes   in law made by this Act.          (b)  Not later than January 1, 2018, each state agency shall   adopt a vendor and employee interaction and communication policy as   required by Section 2155.090, Government Code, as added by this   Act.          (c)  The changes in law made by this Act apply only in   relation to a contract for which a state agency first advertises or   otherwise solicits bids, proposals, offers, or qualifications on or   after the effective date of this Act.          SECTION 14.  This Act takes effect September 1, 2017.