SB 65

86(R) - 2019
Senate Finance
House State Affairs
Senate Finance
House State Affairs

Vote Recommendation

  • Neutral
  • Neutral
  • Neutral
  • Positive
  • Neutral


Jane Nelson


Bob Hall


Charlie Geren

Bill Caption

Relating to oversight of and requirements applicable to state agency contracting and procurement.

Fiscal Notes

According to the Legislative Budget Board, the fiscal implications of the bill provisions related to the Teacher Retirement System cannot be determined at this time. For the other provisions of the bill, no significant fiscal implication to the State is anticipated.

Bill Analysis

SB 65 would make several changes to aid state agencies in improving compliance with contracting requirements.

This bill would change the qualifying information resources technology projects that are subject to oversight under the Information Resources Management Act by increasing the development costs from $1 million to $5 million.

The state auditor would be required to assign one of the following ratings to each of the 25 largest agencies in the state fiscal year as determined by the Legislative Budget Board: (1) additional monitoring warranted; (2) no additional monitoring warranted; or (3) reduced monitoring warranted. In accordance with the ratings, the comptroller would take appropriate action as described under the bill's provisions to improve the agency's compliance.

Among other things, this bill would also: remove several requirements regarding vendor solicitation for major information resources projects; require a state agency, in conducting the internal auditing program, to consider methods for ensuring compliance with contract processes and controls and for monitoring agency contracts; require a state agency to review the performance of a vendor under a contract with a value in excess of $5 million at least once a year during the term of the contract and at each key milestone identified for the contract; prohibit an agency from extending a vendor's contract until after the agency reports the results of each review; repeal provisions that exempt TRS from state contracting standards and oversight; and delegate to the Health and Human Services Commission the authority to procure goods and services related to a contract for a project to construct or expand certain state hospitals.

Vote Recommendation Notes

Texas Action recommends supporting SB 65 as it promotes limited government. The bill increases oversight and transparency for state agencies handing out taxpayer dollars for the fulfillment of contracts, and keeps these agencies more accountable. Increased scrutiny on where taxpayer dollars are going, especially when these dollars are changing hands to the private sector, is an important function of government.