85R11272 YDB-D     By: Shaheen H.B. No. 1943       A BILL TO BE ENTITLED   AN ACT   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.