87R5598 MWC-D By: Blanco S.B. No. 538 A BILL TO BE ENTITLED AN ACT relating to information technology purchased through the Department of Information Resources. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Sections 2157.068(a) and (e-3), Government Code, are amended to read as follows: (a) In this section, "commodity items" means commercial software, hardware, or technology services, other than telecommunications services, that are generally available to businesses or the public and for which the department determines that a reasonable demand exists from [in] two or more customers, including state agencies and political subdivisions of this state, entities described by Subsection (j), and governmental entities of another state, that purchase the items through the department. The term includes seat management, through which a customer [state agency] transfers its personal computer equipment and service responsibilities to a private vendor to manage the personal computing needs for each desktop of the customer [in the state agency], including all necessary hardware, software, and support services. (e-3) The procedural requirements of Subsection (e-1) and the limitation prescribed by Subsection (e-2) do not apply to a state agency's purchase of commodity items under a department contract for the bulk purchase of commodity items intended for use by more than one customer [state agency]. SECTION 2. Section 2157.182, Government Code, is amended to read as follows: Sec. 2157.182. VALIDITY OF PREAPPROVED TERMS AND CONDITIONS; RENEGOTIATION. (a) Preapproved terms and conditions to which a vendor, the comptroller, and the department agree are valid for the duration of the initial contract [two years after the date of the agreement] and must include a provision authorizing the department to renegotiate [provide that] the terms and conditions at any time before the contract expires [are to be renegotiated before the end of the two years]. (b) The comptroller and the department jointly shall establish procedures to ensure that terms and conditions may be [are] renegotiated before they expire in a contract between the vendor and a state agency. SECTION 3. Section 2157.182, Government Code, as amended by this Act, applies only to a contract executed on or after the effective date of this Act. A contract executed before the effective date of this Act is governed by the law as it existed immediately before that date, and that law is continued in effect for that purpose. SECTION 4. This Act takes effect September 1, 2021.