TEXAS PUBLIC PURCHASING ASSOCIATION 2017 SUMMER MOMENTUM CONFERENCE. Galveston, Texas. June 14 16, LEGISLATIVE UPDATE. As of June 9, 2017

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1 TEXAS PUBLIC PURCHASING ASSOCIATION 2017 SUMMER MOMENTUM CONFERENCE Galveston, Texas June 14 16, LEGISLATIVE UPDATE PURCHASING BILLS WHICH PASSED THE 85 TH TEXAS LEGISLATURE As of June 9, 2017 Presented by Pam Kirkland, CPPO, CPPB TXPPA Legislative Chair Purchasing Agent, City of Plano, Texas

2 54 TOTAL PURCHASING RELATED BILLS MONITORED BY TXPPA Reporting Federal Grants (HB135, SB446) Various Preferences (SB60) Collective Bargaining (SB452, HB648) Verifying Wages (HB3357) Disclosure of Public Information (SB407, HB792, SB425, HB839) Safety Training of Construction Employees (HB863, SB475) E-verify for Contractors (HB1453, SB23, SB85, SB254) Procurement Notices (HB1541, HB1759, SB623) Disclosure of Interested Parties (HB1295, HB1610)) Prequalification of Construction Companies (HB3250) Job Order Contracting (HB3326) Worker s Compensation for Contractors (HB1477, SB474) 33 HOUSE BILLS 23 did not move/left pending in committee 7 moved some 3 passed 21 SENATE BILLS 13 did not move/left pending in committee 3 moved some 4 passed 1 vetoed 8 TOTAL PURCHASING RELATED BILLS PASSED 3 House bills 5 Senate bills

3 PURCHASING RELATED BILLS WHICH PASSED HB 89 Co- Relating to state contracts with and investments in companies that boycott Israel. King, Phil, Goldman, Davis, Sarah Anderson, Charles, Bohac, Burkett, Burns, Cain, Cosper, Cyrier, Dale, Dean, Hefner, Holland, Isaac, Klick, Drause, Lambert, Lang, Larson, Laubenberg, Leach, Miller, Rick, Morrison, Murphy, Oliverson, Parker, Paul, Rinaldi, Roberts, Schofield, Shine, Simmons, Springer, Stephenson, Strickland, Stucky, Swanson, Thompson, Ed, Tinderholt, White, Workman, Zedler Affected Statutes: Government Code, Chapter 2270 Adds Chapter 2270 to the Subtitle F, Title 10, Government Code to prohibit governmental entities (which includes cities, counties, public school, special purpose districts, etc.) from contracting with companies who boycott Israel and from investing in companies that boycott Israel. Requires contracts to have written verification from the company that it does not boycott Israel and will not boycott Israel during the term of the contract. The Comptroller shall prepare and maintain a list of companies that boycott Israel more and more and more. SB 134 Identical and SB 29 - Identical The Comptroller will have to prepare and maintain a list of companies that boycott Israel for use by governmental entities. Governmental entities will be required to include a clause in all contracts stating the company does not boycott Israel. Review with your City Attorney.

4 HB 1116 Relating to the repeal of certain state procurement advisory and approval procedures. Kacal, Shaheen Affected Statutes: Government Code 2155 Purchasing General Rules and Procedures Repeals Section Relative to procedures for awarding certain contracts and abolishes the statewide procurement advisory council. SB 632 Identical Should not have an impact on anyone other than State procurement officials.

5 HB 1571 Relating to the use of local government energy savings performance contracts for measures that avoid expected future operating or maintenance costs. Paddie Affected Statutes: Government Code, Section 302 SB Identical Requires political subdivisions (includes all local governments, cities, counties, school districts, special districts) to include the estimated amount of avoided expected future operating and maintenance costs in evaluating energy savings. (I.e. in addition to considering the fuel costs, energy costs, water costs, storm water fees, etc.). Actions: SIGNED BY THE GOVERNOR EFFECTIVE IMMEDIATELY (August 28, 2017) Will be of interest for those entities negotiating energy contracts, which includes more than just electricity.

6 SB 252 Relating to prohibiting governmental contracts with a company doing business with Iran, Sudan, or a foreign terrorist organization. Taylor, Van Affected Statutes: Government Code 2252 Contracting w/governmental Entities Terrorists. The bill would provide that a (1) a governmental entity, ( includes cities, counties, school districts and special districts), may not enter into a governmental contract with a company that does business with Iran, Sudan, or any known terrorist organization; and (2) the comptroller shall prepare and maintain and make available to each governmental entity, a list of companies known to have contracts with or provide supplies or services to a foreign terrorist organization. HB Identical What is the difference in this one and HB89?

7 SB 262 Relating to certain DIR purchases by state agencies and local governments. Zaffirini Affected Statutes: Government Code 2157 Purchase of Automated Information Systems DIR Purchases. Local governments (includes cities, counties, public schools and special districts) all allowed to participate in state contracts pursuant to Government Code Chapter This bill now requires local governments to adhere to the procedures outlined (e-1), which states: 1) for a contract value less than $50K, the agency may award a contract directly to a vendor without other quotes; 2) for contracts value of more than $50K but less than $150K, the agency must submit a request for pricing to at least 3 vendors on the list in the category to which the contract applies; 3) for contracts in value of more than $150K but not less than $1 million the agency must submit a request for pricing to at least 6 vendors in the category to which the contract applies (or all of them if less than 6 on the list). Will require local governments to compete purchases within the DIR contracts. No longer will you be able to pick a company and issue a purchase order just because they hold a state cooperative contract. Will prevent state contract holders from telling local governments they can do business with them because they hold a state contract. However, there is no mandate for local governments to award to the low bidder. Good practice.

8 SB 807 Relating to choice of law and venue for certain construction contracts. Creighton HB 1844 Identical Affected Statutes: Business & Commerce Code, Chapter 272 Laws Applicable to Certain Contracts for Construction or Repair of Real Property Improvements This bill adds construction contracts to the types of contracts where venue and choice of law would be restricted to Texas in the case of conflict resolution and/or litigation. Should not be an issue as most entities currently require Texas to be the choice of law in contracts. Review with your City Attorney.

9 SB 1289 Relating to the purchase of iron and steel products made in the United States for certain governmental entity projects. Creighton Affected Statutes: Government Code 2252 Contracting w/government Entities Effective: September 1, 2017 HB Identical State only. The bill would amend Chapter 2252 regarding contracts with government entities, to require state entities with projects relating to the construction, remodeling, or altering of a building, a structure, or infrastructure, including a road or highway, or who supply a material for such projects, to source iron or steel products used in such projects from the US. The bill would permit exceptions if these products are not produced in sufficient quantities in the US or if the use of products produced in the US will increase the total cost of the project by more than 20 percent. No impact on cities, counties or schools. State only.

10 SB 1215 Relating to responsibility for the consequences of defects in the plans, specifications, or related documents for the construction or repair of an improvement to real property. Hughes Affected Statutes: Business & Commerce Code Adds Chapter 59 Actions: The bill provides that a builder is not responsible for the consequences of defects in, and is not to be required to warranty the accuracy, adequacy, sufficiency, or suitability of, plans, specifications, or other design or bid documents provided to the builder by the person with whom the builder has entered into a construction contract. Also prevents an owner from requiring a builder to waive this protection by contract. PASSED THE HOUSE AND SENATE BUT WAS VETOED BY THE GOVERNOR ON GOVERNORS VETO MESSAGE: Senate Bill 1215 creates a joint interim committee of the Legislature to study construction contracts. The House and Senate can, and do, study topics in the interim without passage of a law. Legislation mandating legislative studies and legislative interim committees is unnecessary. The Legislature is free to study construction contracts with or without this bill.