20-HB2727/SB2715 – Sexton/Gardenhire

Bill Description

This bill changes various provisions of present law concerning government contracts as follows:

(1) This bill adds noncompetitive procurement agreements to the list of the state's fee-for-service type contracts that the contract services subcommittee of the fiscal review committee is required to review;
(2) Present law requires that all requests to make a procurement by a noncompetitive contract are contemporaneously filed along with supporting information with the fiscal review committee of the general assembly, comptroller of the treasury, and the chief procurement officer. This bill specifies that "noncompetitive contract" includes any procurement arrangement, including, but not limited to, a grant. This bill also clarifies that information supporting a request to make a procurement by a noncompetitive contract is only required when the noncompetitive contract is subject to review;
(3) This bill requires the chief procurement officer to make a monthly report to the director of the fiscal review committee, which report must list the contracts, grants, or other non-competitive procurements that were awarded and negotiated during the prior month. The report must include the names of procuring agencies and vendors, identification of what was procured, the term, and any expenditures and revenue associated with the procurement. The report must also include any policy, procedure, or rule change to the state procurement processes planned for the following month;
(4) This bill requires the chief procurement officer to disclose conflicts of interest;
(5) This bill makes the chief procurement officer's duty to identify goods or services that may not be procured by competitive means because of the existence of a single source of supply permissive rather than mandatory; and
(6) This bill places moratorium on employment of a public officer or employee who is involved in making or administering a public agency by the contractor for 24 months following the end of the contract or one year following departure from such public employment or office, whichever occurs first. This bill places a similar moratorium on the chief procurement officer against employment by any party that contracts with the state for a period of 24 months after the chief procurement officer leaves office.

ON JUNE 1, 2020, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 2727, AS AMENDED.

AMENDMENT #1 specifies that the noncompetitive procurement agreements that the fiscal review committee must review are those to procure non-research-related goods or services from entities that are not governmental entities and includes grants and contracts. This amendment excludes from the definition of "noncompetitive contract" a grant or contract awarded to a public institution of higher education to procure research or public service-related goods or services; or to a governmental entity, including, but not limited to a local government. This amendment removes from the information that must be reported to the fiscal review committee an itemized listing of all contracts, grants, or any other competitive procurement means that were in the process of being negotiated for the previous month.

This amendment rewrites this bill's prohibition on a public officer or employee who is involved in making or administering a contract on behalf of a public agency being employed by the contractor for a certain period time (as described above in the bill summary) to instead make it a Class A misdemeanor to accept such employment. This amendment removes the prohibition specific to the chief procurement officer but specifies that a public officer or employee will be considered to be involved in administering or making a procurement agreement if the person oversees the performance of the agreement, has authority to make decisions regarding the agreement or to interpret the agreement, or participates in the development of the terms or award of the agreement. A public officer or employee is not involved in making or administering a procurement agreement solely because of the performance of ministerial duties related to the agreement.

TLRC Position

We alway support oversight and transparency of taxpayer money.

TLRC Observed Process

Passed the house unanimously and was deferred in senate state & local gov., as were so many other worthy bills, which makes one wonder why the house covered so much more than the senate in the same amount of time.

Vote Result: Pass House Only

Score: +5

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