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Purchasing Legislative Update Texas 82 nd Session

Purchasing Legislative Update Texas 82 nd Session. Welcome Presenter: Gary Kerbow Dallas Independent School District. 82 nd Legislative Session Summary: 13.75% of House Bills filed passed both houses of the legislature (797 of 5,796) ¹

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Purchasing Legislative Update Texas 82 nd Session

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  1. Purchasing Legislative UpdateTexas 82nd Session Welcome Presenter: Gary Kerbow Dallas Independent School District

  2. 82nd Legislative Session Summary: 13.75% of House Bills filed passed both houses of the legislature (797 of 5,796)¹ 30% of Senate Bills filed passed both houses of the legislature (582 of 1,931) ¹ 23.8% of total bills passed both houses of the legislature (1,379 of 5,796) ¹ 1 – Legislative Library Reference of Texas

  3. 82nd Legislative Session Summary: • Procurement legislation was light for the 82nd Legislative Session • Laws are Divided into Three Discussion Points: • Laws with a Major Impact on Procurement • Laws with a Minor Impact on Procurement • Laws that Did Not Pass

  4. 82nd Legislative Session Summary: Laws with a Major Impact on Procurement: • HB628 – Construction Procurement and Restructuring of TEC §44.031 • HB675 – Football Helmet Safety • HB398 – Subcontractor Background Check Requirements • SB89 – Summer Nutrition Programs by School Districts

  5. 82nd Legislative Session Summary: • HB628 – Construction Procurement and Restructuring of TEC §44.031 • Major Changes: • All construction statutes repealed from §44.031 • Creation of Chapter 2267 of the Government Code consolidates construction and public works statutes for ALL local governments

  6. 82nd Legislative Session Summary: • HB628 Amends GC §2253.021 as Follows: • Removes Reverse Auction procurement method to obtain services related to a public work contract that requires payment and performance bonds

  7. 82nd Legislative Session Summary: • HB628 Amends TEC §11.168 as Follows: • Allows School Boards to enter into an agreement to improve land not owned or leased by a District if the improvement benefits real property owned by a District • Examples: Sidewalks, crosswalks, drainage, etc.

  8. 82nd Legislative Session Summary: • HB628 Amends TEC §44.031 (a) as Follows: • Restricts purchase under this code to goods and services • Adds language that restricts use of competitive bidding and competitive sealed proposals for construction services under this statute • Adds language to include allowance of any method provided by Chapter 2267 of the Government Code for Purchase of Construction Services • Removes provisions for use of a Construction Manager or Job Order Contract for construction

  9. 82nd Legislative Session Summary: • HB628 Amends TEC §44.031 (b) as Follows: • Adds one additional evaluation criterion to include: • for a contract for goods and services, other than goods and services related to telecommunications and information services, building construction and maintenance, or instructional materials, whether the vendor or the vendor's ultimate parent company or majority owner: • (A)  has its principal place of business in this state; or • (B)  employs at least 500 persons in this state

  10. 82nd Legislative Session Summary: • HB628 Amends TEC §44.031 (b) as Follows: • Adds one additional evaluation criterion to include: • for a contract for goods and services, other than goods and services related to telecommunications and information services, building construction and maintenance, or instructional materials, whether the vendor or the vendor's ultimate parent company or majority owner: • (A)  has its principal place of business in this state; or • (B)  employs at least 500 persons in this state

  11. 82nd Legislative Session Summary: • HB628 Amends TEC §44.031 (f) as Follows: • Adds Certified Public Accountants and Engineers to the list of professional services to be selected by method contained in GC §2254.003.

  12. 82nd Legislative Session Summary: • HB628 Adds TEC §44.0351 and §44.0352: • §44.0351 details procedures for use of Competitive Bids as a procurement method for purchases for good except for construction; • Process is same as previously statutes; • Changes option of use of evaluation criteria in 44.031 (b) from shall back to may. • Update: TEA Advises this language does trump what is contained in 44.031 (b). Criteria is considered to be mandatory

  13. 82nd Legislative Session Summary: • HB628 Adds TEC §44.0351 and §44.0352: • §44.0352 details procedures for use of Competitive Sealed Proposals as a procurement method for purchases for good except for construction; • Process is same as previously statutes

  14. 82nd Legislative Session Summary: • HB628 Adds TEC §44.0411 in regards to • Approval of Change Orders: • Change order cannot be approved unless additional funds are approved; • General Authority to approve change orders to Administration may be delegated; • Limits on Change Orders to no more than 25% of original contract price.

  15. 82nd Legislative Session Summary: • HB628 Adds TEC §46.0111 as Follows: • Procedures for taking action against a vendor for defective design, construction, renovation or improvement; • Provide written notice to Commissioner; • Commissioner may join action if funds are shared;

  16. 82nd Legislative Session Summary: • HB628 Adds TEC §46.0111 as Follows: • Procedures for taking action against a vendor for defective design, construction, renovation or improvement – Continued; • Proceeds awarded from judgment must be used to correct faulty design, construction, renovation or improvement; • District must return state’s share to comptroller not used to correct fault.

  17. 82nd Legislative Session Summary: • HB628 Adds GC §2267 as Follows: • Consolidates construction statutes for all local governments into one code;

  18. 82nd Legislative Session Summary: • HB628 Adds GC §2267 as Follows: • Retains Traditional Construction Delivery Methods: • Competitive Bidding; • Competitive Sealed Proposals; • Construction Manager As-Agent; At-Risk; • Design/Build; • Job Order Contract.

  19. 82nd Legislative Session Summary: • HB628 Adds GC §2267 as Follows: • Retains same requirements for Advertisements; • Retains same requirements for use of Architects and Engineers; • Retains same process for use of one or two-step process for both Construction Manager procurement models; • Retains same requirement for ranking notices.

  20. 82nd Legislative Session Summary: • HB628 Adds GC §2267 as Follows: • Retains same process to undergo prior to construction procurement: • Board must determine Construction Delivery Method; • Board must approve Evaluation criteria; • Board must delegate authority to receive, evaluate and rank proposal to Administration;

  21. 82nd Legislative Session Summary: • HB628 Adds GC §2267 as Follows: • Evaluation Process Changed Slightly: • Includes suggested criteria that local governments may consider: • The price; • Offeror’s experience and reputation; • Quality of Offeror's goods and services; • HUB requirements;

  22. 82nd Legislative Session Summary: • HB628 Adds GC §2267 as Follows: • Evaluation Process Changed Slightly: • Includes suggested criteria that local governments may consider - Continued: • Offeror’s safety record; • Offeror’s proposed personnel; • Offeror's financial capacity for project; • Any other relevant factor;

  23. 82nd Legislative Session Summary: • HB628 Adds GC §2267 as Follows: • What Local Governments May Not Do: • May Not consider if person is a member of or has another relationship with any organization; • Must ensure that any contract or agreement does not diminish the right of a person to work because of persons membership or relationship status with respect to an organization.

  24. 82nd Legislative Session Summary: • HB628 Adds GC §2267 as Follows: • Additional Information: • Includes more comprehensive description of Design/Build Construction Delivery Method; • Includes more comprehensive description of Job Order Contracting Construction Delivery Method.

  25. 82nd Legislative Session Summary: • HB675 Related to Football Helmet Safety: • Bans Use of Helmets Older than 16 Years Old; • Requires Helmets 10 Years Old or Older to be Reconditioned Every Two Years; • Districts Required to Keep Documents Proving Date of Purchase and Anytime a Helmet is Re-Conditioned

  26. 82nd Legislative Session Summary: • HB398 Related to Subcontractor Background Check Requirements : • This Bill filed to correct errant legislation from two previous Legislative Sessions. • This bill requires subcontractors to provide background checks as required under TEC 22.085, which applies to non-teacher employees and contracted employees.

  27. 82nd Legislative Session Summary: • HB398 Related to Subcontractor Background Check Requirements : • This amendment restricts anyone from providing services as a contractor or subcontractor if they have been convicted of a felony or misdemeanor offense that would prevent them from being employed as a school district employee.

  28. 82nd Legislative Session Summary: • SB89 Related to Summer Nutrition Programs: • Requires school districts with 50% or more enrollment eligible for free or reduced feeding program to provide a summer nutrition program. • Texas Department of Agriculture to notify qualifying districts by Oct. 31st of each year of responsibility to provide summer program.

  29. 82nd Legislative Session Summary: • SB89 Related to Summer Nutrition Programs - Continued: • Districts can request waiver by November 30th and must notify Nutrition Council in writing.

  30. 82nd Legislative Session Summary: • SB89 Related to Summer Nutrition Programs - Continued: • Districts can request and may receive waivers due to the following reasons: • Less than 100 students eligible for program; • Transportation for eligible students is insurmountable;

  31. 82nd Legislative Session Summary: • SB89 Related to Summer Nutrition Programs - Continued: • Construction or renovation of facilities prevents district from offering program. • Districts are unable to provide a summer nutrition program due to extenuating circumstances.

  32. 82nd Legislative Session Summary: Laws with a Minor Impact on Procurement: • HB782 – Appraisal Requirements for Bond Purchased Property • H.B. 782 amends current law relating to a requirement that certain bond issuers obtain an appraisal of property that is to be purchased with bond proceeds.

  33. 82nd Legislative Session Summary: Laws with a Minor Impact on Procurement: • HB1728 – Energy Performance Contracts • Allows energy savings performance contracts to apply to both new and existing facilities; • Allows flexibility to pay for such contracts with funds other than savings generated by the energy savings performance contracts.

  34. 82nd Legislative Session Summary: Laws with a Minor Impact on Procurement: • SB764 – Prohibition of use of School Resources for use of Hotel • S.B. 764 prohibits a school board from imposing taxes, issuing bonds, and authorizing the use of school district employees or school district property, money, or other resources to acquire property to build and operate a hotel. • The bill also precludes school boards from entering into any type of lease agreement for hotels.

  35. 82nd Legislative Session Summary: Laws with a Minor Impact on Procurement: • SB1393 – Use of Contracts to Purchase Electricity • Amends the definition of personal property in the Local Government Code to include electricity purchased by a governmental body for its own needs.

  36. 82nd Legislative Session Summary: Laws with a Minor Impact on Procurement: • SB760 – Relating to the Term of Interlocal Agreements • For cities and counties, GC §791.011 required Interlocal Agreements to be renewed annually. • This Bill amends this statue by allowing specified terms to Interlocal Agreements. • This allowance will provide governments to create long-term Interlocal agreements to undergo long-term projects.

  37. 82nd Legislative Session Summary: Laws with a Minor Impact on Procurement: • SB1610 – Relating to the Seat Belt Requirements for Certain Vehicles • In 2007, the legislature passed H.B. 323, requiring the installation of three-point, lap shoulder seat belts on all new school buses purchased on or after September 1, 2010. S.B. 1610 clarifies and simplifies this reimbursement provision by returning to the original language that passed the legislature in 2007. • School districts are required to comply with the seat belt provisions only to the extent that the legislature has appropriated money for the purpose of reimbursing school districts for expenses incurred in complying with the Act.

  38. 82nd Legislative Session Summary: Laws with a Minor Impact on Procurement: • HB1869 – Consideration of Bidder’s Principal’s Place of Business When Awarding a Contract • Previous legislation allowed for cities and counties in population of less than 250,000 to consider a vendor’s principal place of business if a local bidder’s offer was within three per cent of the low bid; • This bill removes the population brackets and allows city or county of any size to make such consideration.

  39. 82nd Legislative Session Summary: Laws with a Minor Impact on Procurement: • SB327 – Inclusion of Certain Veteran’s Groups as Small Business • This bill amends Chapter 2155 (Purchasing: General Rules and Procedures), Government Code, regarding state purchasing and historically underutilized businesses (HUBs) and small businesses. • The bill adds a veterans service agency to the definition of a "small business," and defines veterans service agency as a community-based organization exempt from taxation under Section 501(c)(3) of the Internal Revenue Code of 1986.

  40. 82nd Legislative Session Summary: Laws That Did NOT Pass: • HB2499 – Relating to Continuing Function of Department of Information Resources • This bill proposed to abolish the Department of Information Resources and transfer the purchasing responsibility to the State Comptroller’s office. • Timeline for this transference was proposed to be September 1, 2016. • Bill was passed but vetoed by Governor Perry on June 17, 2011.

  41. 82nd Legislative Session Summary: Summary: • Procurement Legislation was Light but Significant During the 82nd Legislative Session • Most Significant Change was HB628, which removed construction procurement from §44.031 and established it in GC 2267; • Additional evaluation criterion added to consider principal place of business of vendor’s parent company;

  42. 82nd Legislative Session Summary: Summary (Continued): • Evaluation Requirement in §44.031 suggested • Added requirements for Football Helmet Safety; • Summer Nutrition Program required for Districts with 50% eligibility or more; • Background Check Requirements for Subcontractors Clarified; • Department of Information Resources was Under Attack Once Again.

  43. 82nd Legislative Session Summary: Questions?

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