STRAUS: House to Push Greater Oversight of State Contracts

Make executive agencies more accountable Texas Insider Report: AUSTIN Texas We have a responsibility to see that state agencies use public resources in a way that is appropriate and transparent said Speaker Joe Straus Friday announcing that the Texas House will soon release a budget proposal that significantly strengthens oversight of state agency contracts. The budget that the House will file in the coming weeks will require state agencies or institutions of higher education that award contracts or make purchases worth more than $10 million to meet several new reporting requirements. The requirements will also apply to contracts and purchases that are worth more than $1 million and do not go through a competitive bidding process. The agency issuing the contract would have to notify the:

1. Legislative Budget Board (LBB)
2. Governor
3. Texas State Auditor
4. the House Appropriations Committee Chairman
5. the Senate Finance Committee Chairman and
6. Chairs of any other committees with jurisdiction over contracting at least 30 days prior to the expenditure.

With that notice the agency would also be required to provide:

• Information about the nature of the contract and the vendor awarded it.
• A certification by the agencys executive director that the process used to award the contract or make the purchase complies with the states Contract Management Guide State of Texas Procurement Manual and all applicable laws.
  • If the process did not comply with those measures the agency would be required to explain what alternate process was used the legal justification for using that process and the individual directing the use of the alternate process.
• A certification by the agencys executive director that the agency can verify vendor performance and deliverables payment of goods and services only within the scope of the contract and other information.

Importantly the House budget will make clear that the State Comptroller should not allow the expenditure of funds if the Legislative Budget Board says the requirements listed above have not been met.

As legislators we are stewards of taxpayer dollars" said Speaker Straus (R-San Antonio). These reforms combined with legislative changes will help prevent abuses in the contracting process and make executive agencies more accountable to the Legislature and the public."

Speaker Straus has repeatedly stressed the need for responsible stewardship. Leading up to the beginning of the 84^th Legislature on Tuesday he has called for the House to continue its commitment to fiscal discipline to budget transparency and to greater accountability in the way agencies use taxpayer dollars.