HB 5418 Summary

• Personal service agreements costing $20,000-$50,000 with terms under one year must use competitive negotiation or competitive quotations unless the State Contracting Standards Board grants a sole source waiver; the board posts all waiver requests on the State Contracting Portal.

• Personal service agreements exceeding $50,000 or with terms over one year require secretary approval and must be based on competitive negotiation unless the State Contracting Standards Board grants a waiver; secretary must approve or deny applications within 15 business days or approval is deemed granted.

• Secretary may establish an incentive program for nonprofit human services providers with contracts under $1 million serving no more than 150 persons, allowing providers to retain a percentage of cost savings with at least 50% used to expand services.

• State Contracting Standards Board appoints a Chief Procurement Auditor (six-year term) to conduct triennial compliance audits, establish procedures for monitoring contracting regulations, operate an anonymous complaint hotline, and issue compliance reports within 30 days of audits.

• Board must develop a standardized procurement and project management education and training certification program required for all supervisory and nonsupervisory state employees with procurement responsibilities; all provisions effective October 1, 2019.