By: Capriglione, Zerwas, Roberts, Walle, H.B. No. 18       Rose, et al.     A BILL TO BE ENTITLED   AN ACT   relating to oversight of and requirements applicable to state   contracts and other state financial and accounting issues,   including the delivery of certain Medicaid medical transportation   program services; authorizing a fee.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:   ARTICLE 1.  GENERAL STATE CONTRACTING AND OTHER FINANCIAL ISSUES          SECTION 1.01.  Subchapter C, Chapter 316, Government Code,   is amended by adding Section 316.025 to read as follows:          Sec. 316.025.  CONTRACTS TO CONFORM WITH LIMITATIONS OF   GENERAL APPROPRIATIONS ACT. Notwithstanding any other law, a   contract obligation of a state agency, as defined by Section   2103.001, including an institution of higher education, as defined   by Section 61.003, Education Code, may be limited or amended by the   General Appropriations Act.          SECTION 1.02.  Section 321.013, Government Code, is amended   by adding Subsections (m) and (n) to read as follows:          (m)  In devising the audit plan under Subsection (c), the   State Auditor shall consider the performance of audits of programs   operated by health and human services agencies that:                (1)  have not recently received audit coverage; and                (2)  have expenditures of less than $100 million per   year.          (n)  In devising the audit plan under Subsection (c), the   State Auditor shall consider the performance of audits of programs   operated by the Texas Alcoholic Beverage Commission that have not   recently received audit coverage.          SECTION 1.03.  Chapter 322, Government Code, is amended by   adding Section 322.025 to read as follows:          Sec. 322.025.  REPORT ON CONTRACT SPENDING. (a)  In this   section, "state agency" has the meaning assigned by Section   2056.001.          (b)  Not later than September 15 of each year, the board   shall issue a report detailing how much of each state agency's   budget for the previous state fiscal year was spent on contracts.          SECTION 1.04.  Section 441.1855, Government Code, is amended   to read as follows:          Sec. 441.1855.  RETENTION OF CONTRACT AND RELATED DOCUMENTS   BY STATE AGENCIES.  Notwithstanding Section 441.185 or 441.187, a   state agency:                (1)  for each contract entered into by the agency,   shall retain in its records, to the extent the documents exist,   [each contract entered into by the state agency and] all contract   planning, solicitation, evaluation, monitoring, modification, and   closeout documents related to the contract, including at a minimum:                      (A)  a copy of all general and internal   correspondence related to the contract;                      (B)  the records or minutes of all internal or   external meetings related to the contract, including sign-in sheets   or agendas;                      (C)  a copy of all contractor invoices provided   under the contract;                      (D)  any information relating to discount   provisions for prompt payment under the contract and any letters   related to contract price deductions or fee adjustments;                      (E)  a copy of all supporting documentation for   contractor payments or progress payments under the contract;                      (F)  a copy of any audits performed involving the   contract; and                      (G)  a copy of all conflict of interest   documentation and forms required by law related to the contract;   and                (2)  shall retain [may destroy] the contract and   documents described by Subdivision (1) until:                      (A)  [only after the seventh anniversary of] the   date[:                      [(A)]  the contract is completed or expires; and    [or]                      (B)  if [all] issues [that] arise from any   litigation, claim, negotiation, audit, open records request,   administrative review, or other action involving the contract or   documents, the seventh anniversary of the date the issues are   resolved.          SECTION 1.05.  Section 531.102, Government Code, is amended   by adding Subsection (a-7) to read as follows:          (a-7)  The inspector general shall appoint oversight   personnel to audit, review, and investigate high-risk contracts and   procurement and contracting processes of the commission, as   identified by the office of inspector general, and provide on a   quarterly basis reports on the monitoring to the inspector general,   attorney general, and governor.  The quarterly reports must be   posted on the commission's publicly accessible Internet website.     The oversight personnel may work with the state auditor's office,   governor's office, Legislative Budget Board, attorney general's   office, quality assurance team established under Section 2054.158,   and contract advisory team established under Subchapter C, Chapter   2262, in performing the oversight personnel's duties under this   subsection.          SECTION 1.06.  Subchapter F, Chapter 2054, Government Code,   is amended by adding Section 2054.1184 to read as follows:          Sec. 2054.1184.  ASSESSMENT OF MAJOR INFORMATION RESOURCES   PROJECT.  (a)  A state agency proposing to spend appropriated funds   for a major information resources project must first conduct an   execution capability assessment to:                (1)  determine the agency's capability for implementing   the project;                (2)  reduce the agency's financial risk in implementing   the project; and                (3)  increase the probability of the agency's   successful implementation of the project.          (b)  A state agency shall submit to the department, the   quality assurance team established under Section 2054.158, and the   Legislative Budget Board a detailed report that identifies the   agency's organizational strengths and any weaknesses that will be   addressed before the agency initially spends appropriated funds for   a major information resources project.          (c)  A state agency may contract with an independent third   party to conduct the assessment under Subsection (a) and prepare   the report described by Subsection (b).          SECTION 1.07.  Section 2102.0091(c), Government Code, is   amended to read as follows:          (c)  In addition to the requirements of Subsection (a), a   state agency shall file with the Governor's Office of Budget,   Planning, and Policy, the state auditor, and the Legislative Budget   Board an [any] action plan or other response issued by the state   agency's governing board or the administrator of the state agency   if the state agency does not have a governing board in response to   every issue identified in the report of the state agency's internal   auditor.          SECTION 1.08.  Chapter 2115, Government Code, is amended by   adding Section 2115.006 to read as follows:          Sec. 2115.006.  OVERPAYMENTS BY STATE AGENCY. (a)  If a   state agency makes an overpayment to a vendor, the vendor must   return the amount overpaid by the agency before the 121st calendar   day after the date the vendor receives written notice of the   overpayment. If the amount overpaid by the state agency is not   returned before the 121st calendar day, the vendor is subject to   late payment interest of 10 percent per year on the amount of the   overpayment that has not been returned, which begins to accrue on   the date the overpayment becomes overdue.          (b)  If the vendor disputes that an overpayment has been made   by a state agency, the vendor shall provide the state agency written   notice of the dispute not later than the 30th day after the receipt   of the notice required in Subsection (a). On resolution of the   dispute, if the vendor is required to return an overpayment to the   state agency, the vendor shall return the agreed overpayment before   the 121st calendar day after the date the parties resolve the   dispute. If the agreed overpayment is not returned before the 121st   calendar day, the vendor is subject to late payment interest of 10   percent per year on the amount of the agreed overpayment that has   not been returned, which begins to accrue on the date the agreed   overpayment becomes overdue.          (c)  This section does not apply to the return of any amount   overpaid by a state agency to a vendor because of an incorrect   contract, invoice, or other documentation.          SECTION 1.09.  Section 2155.074(c), Government Code, is   amended to read as follows:          (c)  A state agency shall consult with and receive approval   from the comptroller in an open meeting [commission] before   considering factors other than price and meeting specifications   when the agency procures through competitive bidding goods or   services with a value that exceeds $100 million [$100,000].  The   state agency shall retain in the agency's records a copy of the   meeting minutes with the final executed contract.          SECTION 1.10.  Subchapter B, Chapter 2155, Government Code,   is amended by adding Section 2155.090 to read as follows:          Sec. 2155.090.  REPORT ON PERFORMANCE BY AGENCY FOR CERTAIN   PROCUREMENTS. (a)  This section applies only to a procurement for   services with a value of at least $1 million but not more than $5   million.          (b)  Before a purchase of services under this chapter, each   state agency, including the comptroller, must:                (1)  create a written report evaluating the feasibility   of the agency performing the service that is the subject of the   proposed purchase; and                (2)  if the agency determines from the evaluation that   it is not feasible for the agency to perform the service, provide an   explanation of why the agency reached that determination.          (c)  A report created under this section must be included in   the procurement analysis for the purchase.          SECTION 1.11.  (a) Subchapter B, Chapter 2155, Government   Code, is amended by adding Section 2155.091 to read as follows:          Sec. 2155.091.  OPERATION AND MANAGEMENT OF STATE   COOPERATIVE PURCHASING PROGRAMS. (a) Notwithstanding any other   law, the Department of Information Resources, the comptroller, and   the five state agencies with the largest budgets on September 1,   2017, shall jointly acquire from a single provider and implement a   cloud-based, procure-to-pay project to operate and manage the   state's cooperative purchasing programs, including the multiple   award contract schedule under Subchapter I and commodity items   under Section 2157.068.          (b)  The project must:                (1)  include procurement technology that:                      (A)  covers sourcing, contract management,   contract ordering, and invoice processing;                      (B)  makes solicitations, contracts, proposals,   and payments viewable by the public; and                      (C)  supports the collection of transaction fees   from vendors;                (2)  include consulting and marketing services;                 (3)  include authority to charge a vendor who   participates in the project a one percent transaction fee to cover   the costs of the project; and                (4)  notwithstanding any other law, allow political   subdivisions and nonprofit organizations to make purchases through   the project.          (c)  The division of the governor's office having   responsibility for budget and policy shall oversee the project.          (b)  The Department of Information Resources, the   comptroller of public accounts, and the five state agencies with   the largest budgets on September 1, 2017, shall enter into a   contract for a project to operate and manage state cooperative   purchasing programs as provided by Section 2155.091, Government   Code, as added by this Act, not later than October 31, 2017, and the   project under that section shall be implemented not later than   December 31, 2018.          SECTION 1.12.  Subchapter D, Chapter 2156, Government Code,   is amended by adding Section 2156.182 to read as follows:          Sec. 2156.182.  OTHER INTERSTATE PURCHASES AND SALES.   Subject to any limitation imposed by Section 2156.181, the   commission may authorize one or more state governments, agencies of   other states, or other governmental entities to purchase goods or   services through the commission. The commission may charge a   reasonable administrative fee for a purchase of goods or services   under this section.          SECTION 1.13.  Subchapter I, Chapter 2166, Government Code,   is amended by adding Section 2166.4065 to read as follows:          Sec. 2166.4065.  ASSESSMENT AND IMPLEMENTATION OF   CONTINUOUS COMMISSIONING OR EXISTING BUILDING COMMISSIONING   PRACTICES.  (a)  In this section, "facility" means a facility with   at least 100,000 gross square feet.          (b)  A state agency with charge and control over a facility   shall have a remote or on-site assessment of the facility performed   by the Energy Systems Laboratory at Texas A&M Engineering   Experiment Station or another qualified provider to determine   whether implementation of continuous commissioning or existing   building commissioning practices would result in estimated savings   of at least 10 percent in utility costs for the facility. A state   agency shall supply any documents necessary to perform the   assessment. The state agency shall report to the Legislative   Budget Board on the results of the assessment.          (c)  If the results of an assessment performed under   Subsection (b) show estimated utility cost savings of at least 10   percent, the state agency shall have the Energy Systems Laboratory   at Texas A&M Engineering Experiment Station or another qualified   provider prepare a plan for implementation of continuous   commissioning or existing building commissioning practices and   monitoring of the implementation for the state agency.          (d)  If appropriated funds are unavailable for this purpose,   a state agency may enter into a contract for the implementation of   continuous commissioning or existing building commissioning   practices for a facility to be paid for from the estimated savings   in utility costs resulting from the implementation of the   practices.          SECTION 1.14.  Subchapter B, Chapter 2251, Government Code,   is amended by adding Section 2251.031 to read as follows:          Sec. 2251.031.  PAYMENT TO VENDOR. (a)  A state agency may   not:                (1)  pay an invoice from a vendor unless the invoice   directly correlates to a corresponding contract with the vendor; or                (2)  make a payment to a vendor more than once per month   under a contract, unless the contract specifically requires more   than one payment per month.          (b)  A payment by a state agency to a vendor under a contract   must receive:                (1)  the approval and signature of two employees of the   state agency; or                (2)  if a contract manager, as defined by Section   2262.001, has been assigned to the contract by the state agency, the   approval and signature of the contract manager and one other   employee of the state agency.          (c)  If a finding is made that a payment was made without the   signatures required under Subsection (b), the state agency may   revoke the payment at any time but remains obligated to pay the   vendor all amounts due under and as required by the contract   regardless of whether the state agency complied with Subsection   (b).          SECTION 1.15.  Subchapter C, Chapter 2261, Government Code,   is amended by adding Section 2261.103 to read as follows:          Sec. 2261.103.  REQUIRED CONTRACT PROVISIONS. (a)  An   attorney representing a state agency shall assist in the drafting   of a contract to be entered into by the agency in order to include at   a minimum the provisions listed in Subsection (b) and other   applicable provisions recommended in the contract management guide   developed under Section 2262.051.          (b)  The following are required provisions in each contract   to which the provisions are applicable:                (1)  amendments;                (2)  antitrust;                (3)  applicable law and venue;                (4)  applicable law and conforming amendments;                (5)  assignments;                (6)  confidentiality and public information act;                (7)  equal opportunity;                (8)  federal, state, and local law requirements;                (9)  felony criminal convictions;                (10)  financial interests and gifts;                (11)  immigration;                (12)  no conflicts; and                (13)  right to audit.          SECTION 1.16.  Subchapter D, Chapter 2261, Government Code,   is amended by adding Section 2261.152 to read as follows:          Sec. 2261.152.  DOCUMENTATION REQUIRED FOR PAYMENT. (a)  A   state agency may not make a payment to a vendor without a contract,   invoice, or other documentation that clearly demonstrates the   agency's obligation to make a payment.          (b)  This section does not apply to the return of any amount   overpaid by a state agency to a vendor because of an incorrect   contract, invoice, or other documentation.          SECTION 1.17.  Section 2261.252, Government Code, is amended   by adding Subsection (e) to read as follows:          (e)  A state agency may not knowingly enter into a contract   for the purchase of goods or services with a vendor who is related,   a vendor whose governing board or executive officers include a   person who is related, a vendor who employs a person directly   involved in the bid submission process who is related, or who   employs or subcontracts to a person directly performing the   contracted work who is related, within the third degree by   consanguinity or affinity, as determined under Chapter 573, to an   employee of the state agency who has decision-making authority in   any matter related to the contract.          SECTION 1.18.  Subchapter F, Chapter 2261, Government Code,   is amended by adding Section 2261.258 to read as follows:          Sec. 2261.258.  REPORTING OF CONTRACT VIOLATION. (a)  A   state employee or member of the public may report to the comptroller   a state contracting violation.  The comptroller shall investigate a   report made under this subsection.          (b)  A state agency may not suspend or terminate the   employment of, or take other adverse personnel action against, a   state employee who in good faith reports a violation to the   comptroller under this section.          (c)  If, as a result of an investigation under this section   of a state contracting violation that occurred before March 8,   2017, savings to the state are realized, the comptroller shall   verify the amount of savings and an amount equal to 30 percent of   the savings may be appropriated to the comptroller only for   distribution to the state employee   who reported the violation that   initiated the investigation.          SECTION 1.19.  Section 2262.005, Government Code, is amended   to read as follows:          Sec. 2262.005.  CONSULTATION WITH INTERESTED PARTIES [STATE   AGENCIES].  The comptroller shall consult with state agencies,   vendors, and other interested parties in developing rules, forms,   contract terms, guides, manuals, and criteria required under this   chapter.          SECTION 1.20.  Section 2262.051, Government Code, is amended   by amending Subsections (a), (b), (c), (d), and (g) and adding   Subsections (i) and (j) to read as follows:          (a)  In consultation with the attorney general, the   Department of Information Resources, the [comptroller, and the]   state auditor, and state agencies that award major contracts, the   comptroller [commission] shall develop and [or] periodically   update a contract management guide for use by state   agencies.  Participation by the state auditor under this   subsection is subject to approval by the legislative audit   committee for inclusion in the audit plan under Section 321.013(c).          (b)  The comptroller [commission] may adopt rules necessary   to develop or update the guide.          (c)  The guide must provide information regarding the   primary duties of a contract manager, including how to:                (1)  develop and negotiate a contract;                (2)  select a contractor; [and]                (3)  monitor contractor and subcontractor performance   under a contract; and                (4)  encourage competition for goods and services   purchased by this state.          (d)  The guide must include model provisions for state agency   contracts.  The guide must:                (1)  distinguish between essential provisions that a   state agency must include in a contract to protect the interests of   this state and recommended provisions that a state agency may   include in a contract;                (2)  recognize the unique contracting needs of an   individual state agency or program based on the size, nature, and   type of goods or services purchased by the state agency or program   and provide sufficient flexibility to accommodate those needs,   consistent with protecting the interests of this state;                (3)  include maximum contract periods under which a new   competitive solicitation is not necessary; and                (4)  include the model contract management process   developed under Section 2262.104 and recommendations on the   appropriate use of the model.          (g)  The guide must establish procedures under which a state   agency is required to:                (1)  solicit explanations from qualified potential   respondents who did not respond to a competitive solicitation for a   contract on which fewer than two qualified bids were received by the   agency; and                (2)  develop and implement improved procurement   practices.          (i)  The guide must suggest best practices related to   procurement metrics used by a state agency to measure and monitor   the effectiveness of the state agency's procurement methods,   including the:                (1)  number and value of procurements made by the state   agency;                (2)  number of canceled procurements by the state   agency;                (3)  reasons for canceled procurements;                (4)  common exceptions to the state agency's terms and   conditions by a respondent;                (5)  number of responses per competitive solicitation;   and                (6)  average length of time for each phase of the state   agency's procurement processes, including the length of time:                      (A)  between the date the state agency issues the   competitive solicitation and the date the state agency begins   receiving responses to the solicitation;                      (B)  for the evaluation of responses to a   competitive solicitation;                      (C)  of the negotiation between the state agency   and a vendor; and                      (D)  between the date the state agency issues the   competitive solicitation and the date the state agency awards a   contract to a vendor.          (j)  The guide may include references to procurement   maturity models and procurement readiness assessments used by other   large public and private enterprises.          SECTION 1.21.  Subchapter B, Chapter 2262, Government Code,   is amended by adding Section 2262.056 to read as follows:          Sec. 2262.056.  CONTRACT MANAGERS REQUIRED FOR MAJOR   CONTRACTS. A state agency, at a minimum, shall assign a contract   manager for each major contract of the agency to manage the   oversight of the contract.          SECTION 1.22.  Chapter 2262, Government Code, is amended by   adding Subchapter E to read as follows:   SUBCHAPTER E. CONTRACT OUTSIDE TACTICAL TEAM          Sec. 2262.201.  DEFINITIONS. In this subchapter:                (1)  "Information resources" has the meaning assigned   by Section 2054.003.                (2)  "Team" means a contract outside tactical team   established under authority provided by this subchapter.          Sec. 2262.202.  CONTRACT OUTSIDE TACTICAL TEAM.  (a)  From   appropriated funds, a state agency shall enter into a contract with   a team for assistance in improving information resources contract   management practices for contracts that have a value of at least   $100 million.  The team shall review and make recommendations on the   solicitation documents, contract documents, scope of work, project   timeline and management, documentation requirements, audit   schedule and audit scope, and technical issues for the contract.          (b)  A team consists of the following members selected by the   state agency:                (1)  outside legal counsel; or                (2)  providers of professional consulting services   with expertise in the subject matter of the contract.          (c)  A state agency may not select a provider of professional   consulting services or a group or association of providers or award   a contract for the services on the basis of competitive bids   submitted for the contract or for the services, but shall make the   selection and award:                (1)  on the basis of demonstrated competence and   qualifications to perform the services; and                (2)  for a fair and reasonable price.          (d)  A state agency shall:                (1)  comply with a recommendation made under Subsection   (a); or                (2)  submit a written explanation regarding why the   recommendation is not applicable to the contract under review.          SECTION 1.23.  (a) The comptroller of public accounts shall   conduct an interim study on the effectiveness of the process of   barring vendors from participation in state contracts under Section   2155.077, Government Code. The study must include an evaluation of   the risk to the state posed by vendors who receive low performance   grades under Section 2262.055, Government Code, but who are not   barred under Section 2155.077, Government Code.          (b)  Not later than December 1, 2018, the comptroller of   public accounts shall submit a report on the findings of the study   to the governor, lieutenant governor, and members of the   legislature.   ARTICLE 2.  DELIVERY OF MEDICAID MEDICAL TRANSPORTATION PROGRAM   SERVICES          SECTION 2.01.  Section 531.0057(b), Government Code, is   amended to read as follows:          (b)  Subject to Section 531.024141, the [The] commission may   contract with any public or private transportation provider or with   any regional transportation broker for the provision of public   transportation services.          SECTION 2.02.  Section 531.02412, Government Code, is   amended by adding Subsection (b) to read as follows:          (b)  As part of the quality review assessment of the Medicaid   medical transportation program under Subsection (a)(3), the   commission shall hire a single independent vendor with appropriate   expertise to conduct surveys of:                (1)  the satisfaction rates of Medicaid recipients who   are receiving medical transportation program services; and                (2)  the unmet transportation needs of Medicaid   recipients who are not receiving medical transportation program   services and who are having difficulty obtaining transportation to   health care appointments.          SECTION 2.03.  Sections 531.02414(c) and (d), Government   Code, are amended to read as follows:          (c)  Except as provided by Section 531.024142 and   notwithstanding [Notwithstanding] any other law, the commission   may not delegate the commission's duty to supervise the medical   transportation program to any other person, including through a   contract with the Texas Department of Transportation for the   department to assume any of the commission's responsibilities   relating to the provision of services through that program.          (d)  Subject to Sections 531.024141 and [Section] 533.00257,   the commission may contract with a public transportation provider,   as defined by Section 461.002, Transportation Code, a private   transportation provider, or a regional transportation broker for   the provision of public transportation services, as defined by   Section 461.002, Transportation Code, under the medical   transportation program.          SECTION 2.04.  Subchapter B, Chapter 531, Government Code,   is amended by adding Sections 531.024141 and 531.024142 to read as   follows:          Sec. 531.024141.  DELIVERY OF MEDICAID MEDICAL   TRANSPORTATION PROGRAM SERVICES. (a) In this section:                (1)  "Managed transportation organization" has the   meaning assigned by Section 533.00257.                (2)  "Medical transportation program" has the meaning   assigned by Section 531.02414.          (b)  Notwithstanding any other law, the commission shall use   the most cost-effective delivery model for the provision of medical   transportation program services throughout the state. In   determining the most cost-effective delivery model, the commission   shall, on a regional basis, consider using:                (1)  a managed transportation delivery model in which   managed transportation organizations and providers operate under a   capitated rate system in accordance with Section 533.00257;                (2)  a fee-for-service delivery model; or                (3)  other delivery models deemed appropriate by the   commission.          (c)  Before soliciting bids for the provision of medical   transportation program services in a region through a managed   transportation delivery model or another selected delivery model   deemed appropriate by the commission under Subsection (b)(3), the   commission must conduct an assessment to determine if the   applicable model is more cost-effective than a fee-for-service   delivery model. If the commission determines that the managed   transportation delivery model or other selected delivery model is   potentially more cost-effective than a fee-for-service delivery   model, the commission shall establish a cost threshold for   accepting bids for the provision of medical transportation program   services in the region through a managed transportation delivery   model or the other selected delivery model.          (d)  A cost threshold established under Subsection (c) must   be:                (1)  expressed as a cost per unit, such as a cost per   recipient or a cost per trip; and                (2)  based on historical data for the provision of   medical transportation program services through a fee-for-service   delivery model in the region.          (e)  If the commission receives bids at or below the cost   threshold established under Subsection (c) from qualified managed   transportation organizations or qualified vendors seeking to   provide services under the other selected delivery model, the   commission shall provide medical transportation program services   in the region through a managed transportation delivery model or   the other selected delivery model, as applicable, and shall award   contracts to managed transportation organizations or vendors based   on the price and quality of the services to be provided by the   organization or vendor.          (f)  If the commission is unable to solicit bids from   qualified managed transportation organizations or vendors at or   below the cost threshold established under Subsection (c), the   commission shall provide medical transportation program services   through a fee-for-service delivery model in the region.          (g)  For purposes of this section, a delivery model's   cost-effectiveness is based on the price and quality of the   services delivered through the model, in addition to any other   requirements established by applicable state and federal   procurement laws.          Sec. 531.024142.  OVERSIGHT OF MEDICAID MEDICAL   TRANSPORTATION PROGRAM SERVICES. (a) In this section, "medical   transportation program" has the meaning assigned by Section   531.02414.          (b)  Regardless of the delivery model selected by the   commission under Section 531.024141 for the delivery of medical   transportation program services, the commission shall:                (1)  contract with a person to oversee the delivery of   those services through the selected delivery model; and                (2)  pay for the contract from the anticipated cost   savings realized under the contract.          (c)  In contracting for the oversight of medical   transportation program services, the commission shall provide   contracting opportunities to persons who employ veterans or other   persons with disabilities whose services are available under   Chapter 122, Human Resources Code.          (d)  The person contracted under Subsection (b) shall   maintain a record of each service provided under the medical   transportation program, including the cost of mileage for the   service, the cost of the service, and the cost of any software   licensing support used to meet the requirements of this section. A   managed transportation organization or vendor through which   medical transportation program services are provided shall provide   to the person contracted under Subsection (b) the information   necessary for that person to comply with this subsection.          (e)  Not later than December 1, 2018, the commission shall   evaluate the oversight of medical transportation program services   under this section for not more than a 90-day period to determine:                (1)  the viability of continuing to contract with a   person to oversee the services;                (2)  the economic return on investment from contracting   with a person to oversee the services; and                (3)  route efficiency and reasonableness in the   provision of the services.          (f)  Subsection (e) and this subsection expire September 1,   2019.          SECTION 2.05.  Sections 533.00257(b) and (c), Government   Code, are amended to read as follows:          (b)  If [Subject to Subsection (i),] the commission provides   [shall provide] medical transportation program services [on a   regional basis] through a managed transportation delivery model in   accordance with Section 531.024141, the commission shall use   [using] managed transportation organizations and providers, as   appropriate, that:                (1)  operate under a capitated rate system;                (2)  assume financial responsibility under a full-risk   model;                (3)  operate a call center;                (4)  use fixed routes when available and appropriate;   and                (5)  agree to provide data to the commission if the   commission determines that the data is required to receive federal   matching funds.          (c)  Subject to Section 531.024141, the [The] commission   shall procure managed transportation organizations [under the   medical transportation program] through a competitive bidding   process [for each managed transportation region as determined by   the commission].          SECTION 2.06.  Sections 533.00257(i) and (j), Government   Code, are repealed.          SECTION 2.07.  Section 531.024141, Government Code, as added   by this article, applies to a contract entered into or renewed on or   after the effective date of this Act. A contract entered into or   renewed before that date is governed by the law in effect   immediately before the effective date of this Act, and that law is   continued in effect for that purpose.          SECTION 2.08.  If before implementing any provision of this   article a state agency determines that a waiver or authorization   from a federal agency is necessary for implementation of that   provision, the agency affected by the provision shall request the   waiver or authorization and may delay implementing that provision   until the waiver or authorization is granted.   ARTICLE 3.  TRANSITION AND EFFECTIVE DATE          SECTION 3.01.  Except as otherwise provided by this Act,   this Act applies only in relation to a contract for which a state   agency first advertises or otherwise solicits bids, proposals,   offers, or qualifications on or after the effective date of this   Act, and to a payment made under a contract described by this   section.          SECTION 3.02.  This Act takes effect September 1, 2017.