HBA-SEP H.B. 3032 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3032 By: Pitts State Affairs 3/21/2001 Introduced BACKGROUND AND PURPOSE Payment for results rather than for performing a process can increase the benefits of contracting and lower the associated costs for services, thus performance-based and contingency-based contracting have improved services and saved money. The comptroller of public accounts recommends that the General Services Commission (GSC) be required to develop boilerplate performance contracts and design contract-drafting guides for various types of contracts. The comptroller also recommends that certain state agencies be required to convert their contracts to a performance or contingency basis as they are renewed or executed and to report their progress in the agencies' strategic plans. House Bill 3032 requires GSC to develop sample contracts and requires certain agencies to convert their contracts to a performance or contingency basis. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 3032 amends the Government Code to require the General Services Commission (GSC), in cooperation with the comptroller of public accounts, to develop, not later than March 1, 2002, sample contracts for state agency purchases and to recommend standard terms for use in state agency contracts for the purchase of goods and services. The bill also requires GSC to make available on its Internet website the standard contract terms and a guide to drafting state agency contracts. A state agency that determines that a performance-based or contingency-based contract will provide the best value for the state may enter into such a contract to purchase the service or acquire the goods and services. When entering into such a contract a state agency is required to follow the competitive sealed proposals procedure. However, the Texas Department of Health, Texas Department of Transportation, Texas Department of Human Services, Texas Department of Mental Health and Mental Retardation, Texas Department of Criminal Justice, and the Department of Protective and Regulatory Services are required to use such contracts for each purchase and may acquire goods or services through these contracts without the oversight of GSC. These agencies are required to report in each agency's 2004 strategic plan the agency's progress in converting to performance-based or contingency-based contracts. Before January 1, 2003, at least 25 percent of the contracts for services or for goods and services entered into or renewed by these agencies on or after September 1, 2001 must be performance-based or contingency-based contracts. The bill authorizes GSC and the comptroller to complete an inventory of state agency contracts for services that are for an amount greater than $50,000 and in effect on September 1, 2002. The bill sets forth provisions regarding details the inventory may include. The bill requires GSC and the comptroller to evaluate, before December 1, 2003, the effects of converting to performance-based and contingencybased contracts in state agency purchases of goods and services and to report the results to the legislature. EFFECTIVE DATE September 1, 2001.