Senate Finance met to take up a full agenda. This report covers testimony and discussion on two bills:  SB 9 (Hancock) relating to the constitutional limit on the rate of growth of appropriations & SB 533 (Nelson) relating to state agency contracting.
 
SB 9 (Hancock) Relating to the constitutional limit on the rate of growth of appropriations.

  • Multiplies population growth and inflation rate for limit calculation
  • Vance Ginn, TPPF – in favor of the bill, key to restrain spending
  • Eva DeLuna Castro, CPPP – finds the cap problematic including the super majority vote and the net effect would reduce the flexibility of the legislature in the future; believes current system is working
  • Voted favorably out of committee (8-0)

 
SB 533 (Nelson) Relating to state agency contracting.

  • Bill is laid out – builds upon work from last session (SB 20)
    • SB 533 authorizes the Governor, Lt. Governor, and Speaker to require additional review of major information resource projects
    • Strengthens the quality assurance team oversight of major information resources contracts
    • Bolsters review of agency procurement plans
    • Increases number of contracts under review by contract advisory team
    • Increase cap of contracts to $5 million
  • Committee substitute laid out – CS adds:
    • Directs comptroller to establish guidelines for agencies communication with vendors rather than requiring each agency to establish its own guidelines
    • Requires TEA to follow state guidelines when administering grants to education service centers
    • Establishes a chief procurement officer in comptroller’s office to coordinate contracting across agencies and leverage the states purchasing power
    • Clarifies that conflicts of interest are prohibited from the beginning of contract negotiations until the expiration of contract
    • Removes the duplicative posting requirements
    • Directs that sensitive information in contracts to not be posted online
    • Allows federal government and other states to purchase off of pre-negotiated contracts from the comptroller
  • West – in substitute asked about why she removed need to report on website for certain contracts
    • Duplicative reporting by LBB – agencies are already posting online  
  • West – asked about education service centers
    • Report earlier this year raised some concerns, substitute amends original provision and substitute puts onerous on TEA which she believes will address concerns she heard
  • Committee substitute voted favorably out of committee (8-0)