The bill, Substitute House Bill No. 7232, mandates the Office of Policy and Management (OPM) to conduct a comprehensive review of the state contracting process for all state agency contracts, particularly those involving service providers and nonprofit organizations. This review will be conducted in consultation with the Department of Administrative Services, the Office of the State Comptroller, and the Attorney General. The findings, which are to be reported by January 1, 2026, will assess staffing adequacy for contract drafting and processing, identify complications arising from the tiered procurement process, and evaluate payment policies that may delay timely payments. Additionally, the review will explore the feasibility of utilizing master contracts and reallocating funds from previous fiscal years to support ongoing programs.

The bill incurs a one-time cost of $950,000 in FY 26 for OPM to hire a consultant, as the current staff is insufficient to complete the review within the required timeframe. The review is expected to encompass approximately 36 agencies. The effective date of the bill is from passage, and it introduces new legal language regarding the review process while deleting no existing provisions.