TAPP Legislative Update - Texas Association of Public Purchasers

Update – 83
Leg. Session
Items of Interest to State Purchasers
David Duncan, Deputy Gen’l Counsel
Texas Comptroller of Public Accounts
A lively session
• A regular and THREE SPECIALS. Oh boy.
• Regular session had 5868 bills introduced in the
House and Senate, with 1437 passed (~24.5%).
Similar numbers from past sessions.
• Governor vetoed 28 (also about typical #).
• Big issues were funding (water and transportation),
education, and of course the end-of-session
abortion debate.
Purchasing bills – a few
got through
HB 194 (Farias) - “Veteran with a 20% service-connected disability” = HUB.
HB 535 (Davis, Yvonne) –created preference for goods and agricultural products
“manufactured” in Texas. VETOED
HB 586 (Workman) – waiver of sovereign immunity for architecture, engineering and
construction contracts.
HB 1965 (Harper-Brown) – CAT changes.
HB 1726 (Bohac) – “shipping coordination” bill.
HB 2472 (Cook) – DIR and TPASS Sunset bill.
HB 2873 (Harper-Brown) – low-risk contract management model.
HB 3116 (Cook) – Includes TSB in definition of ERP, authorizes movement of funding from DIR.
HB 3648 (Harper-Brown) – “Material changes to contracts” must go to board.
SB 1 (Williams) – CPA Budget riders 17 and 18 require HUB assessments and “compliance”
SB 59 (Nelson) – Repeals report for recycled products, repeals report outcome for HUB report.
SB 1368 (Davis) – PIA changes for “contracts involving the exchange or creation of public
information.” Requires new contract clause.
SB 1681 (Zaffirini) – More CAT changes.
HB 194 (Farias)
• Adds “veterans who have suffered a 20-percent
service-connected disability” to the definition of
“economically disadvantaged person”, thus
making them eligible for HUB status.
• Requires Comptroller to adopt rules to incorporate
the SDVs into the HUB program, and adopt goals
that are separate from the traditional HUB groups’
• Effective 9/1/13.
HB 535 (Davis, Yvonne)
• Added to the standard preference in 2155.444 the
word “manufactured” in addition to “produced”
and “grown” in Texas.
• Governor vetoed the bill.
• Veto statement said it was unnecessary and “did
not change current law.”
HB 586 (Workman)
• Waives the state’s sovereign immunity for contracts
involving engineering, architectural, or construction
services or for materials related to those, where
amount in dispute is $250K or more.
• Limits damage awards (somewhat).
• Allows for attorneys fees, BUT only if those fees are
available to either party under the contract.
• Venue in the county “where the claim occurred” or
the county where the state agency is
HB 1965 (Harper-Brown)
• CAT review threshold changed to $10MM, versus 1.
• CAT to develop “risk assessment matrix” for use by
state agencies.
• New requirement that “state agency shall . . .
comply with a recommendation made” by CAT or
“submit a written explanation regarding why the
recommendation is not applicable to the contract
under review.”
• Adds three new CAT members – HHSC, TFC and “a
small state agency” (<100 employees). Makes the
AG’s office the “legal advisor” to the CAT.
HB 1726 (Bohac)
• Odd bill relating to “shipping coordination services.”
• Originally required CPA to do a contract, final
amendment was “may” contract for such services.
• Amended version also written as a “realized
savings” contract.
HB 2472 (Cook)
• The DIR and TPASS Sunset bills.
• We passed – so we still exist/stay at CPA. Next review at
• New subchapter O of DIR statute on “Major Outsourced
Contracts” – require Board approval/oversight,
management plans and customer involvement.
• Additional new subchapter on contracting conflict of
interest standards at DIR, and contract management.
• Requires DIR and CPA “procurement coordination
committee” to work out issues between the two.
• New dates for submission of HUB reports.*
HB 2873 (Harper-Brown)
• Requires CAT to include the model contract
management process” into the CMG.
• Also requires CAT to “identify the types of
procurements that pose a low risk of loss to the state
and develop a model contract management
process for use with those procurements.”
• Latter concept could be coordinated with the “risk
matrix” concept from HB 1965.
HB 3116 (Cook)
• Very little bill, but major effect.
• Makes the TXSmartBuy system a part of the
“Enterprise Resource Planning” system definition in
Gov’t Code Chapter 2101.
• Has the effect of giving CPA control over the
collection and expenditure of the SmartBuy fee,
thus allowing us to fund and procure our own
system (not go through DIR’s TexasOnline/Texas.Gov
HB 3648 (Harper-Brown)
• Governs “material changes to contracts” – defined
as extending contract performance by six months
or more, or increasing amount paid under the
contract by 10% or more.
• Requires that all material changes must be decided
by the “governing body” of the agency in a
• Requires that performance of contracts “must
substantially comply with the terms contained in the
written solicitation for the contract and the terms
considered in awarding the contract” (??)
SB 1 (Williams)
• You’ve heard of this one, it’s called . . .
• Everyone gets a 1% raise, then 2% next year (and there
was much rejoicing . . . Yay!!!)
• The budget also contains a couple of riders in the
CPA budget (17 and 18) that require state agencies
to perform specific assessments of their HUB
programs and “compliance” demonstrations. Look
at this language!!
SB 59 (Nelson)
• The biennial standard “report cleanup bill.”
• Repeals the “recycled products report” in Gov’t
Code 2155.448(c).
• Also repeals the “destination” of the HUB annual
and semi-annual reports (Governor, Lt. Governor,
certain committees). Note – this differs from HB 2472,
which just changed the dates!
SB 1368 (Davis)
• Amends the Public Information Act (PIA), including
adding some contracting language.
• All contracts must be drafted “in consideration of” the
• Also must have a clause that specifies that all
information created pursuant to the contract must be
“available in a specific format that is . . . agreed upon in
the contract; and accessible by the public.”
• Cannot be waived by contract.
• All PIA requests for contracts must go to agency PIA
• Also amends PIA to clarify that all public info is subject to
the Act regardless of what (or whose) device it is on.
SB 1681 (Zaffirini)
• Another CAT bill.
• Requires CPA to come up with rules to exclude “small or
routine” contracts from CAT.
• Requires training for certified contract managers.
• Mandatory contract management training for agency
governing bodies. (CPA - 5/1/14, agencies – 9/1/15)
• CPA must come up with standard language for
agencies to use for contractor performance and conflict
of interest, and forms for “contract process” and VPTS.
• CPA “may” develop standard contract terms that will
apply to “important types of state contracts.”

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