H.B. No. 2626
    1-1                                AN ACT
    1-2  relating to the continuation and operation of the General Services
    1-3  Commission and to the transfer of certain functions to or from the
    1-4  commission; the purchase, financing, management, and use of real
    1-5  and personal property of the state; and contracting for certain
    1-6  services provided to the state or among state agencies; providing
    1-7  for the issuance of revenue bonds; making an appropriation.
    1-8        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-9        SECTION 1.  Section 1.02(3), State Purchasing and General
   1-10  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   1-11  amended to read as follows:
   1-12              (3)  "Historically underutilized <Disadvantaged>
   1-13  business" means:
   1-14                    (A)  a corporation formed for the purpose of
   1-15  making a profit in which at least 51 percent of all classes of the
   1-16  shares of stock or other equitable securities are owned by one or
   1-17  more persons who:
   1-18                          (i)  are socially disadvantaged because of
   1-19  their identification as members of certain groups, including black
   1-20  Americans, Hispanic Americans, women, Asian Pacific Americans, and
   1-21  Native Americans, and <who> have suffered the effects of
   1-22  discriminatory practices or similar insidious circumstances over
   1-23  which they have no control; and
   1-24                          (ii)  have a proportionate interest and
    2-1  demonstrate active participation in the control, operation, and
    2-2  management of the corporation's affairs;
    2-3                    (B)  a sole proprietorship created for the
    2-4  purpose of making a profit that is 100 percent owned, operated, and
    2-5  controlled by a person described by Paragraph (A)(i) of this
    2-6  subdivision;
    2-7                    (C)  a partnership formed for the purpose of
    2-8  making a profit in which at least 51 percent of the assets and
    2-9  interest in the partnership is owned by one or more persons who:
   2-10                          (i)  are described by Paragraph (A)(i) of
   2-11  this subdivision; and
   2-12                          (ii)<.  Those persons must> have a
   2-13  proportionate interest and demonstrate active participation in the
   2-14  control, operation, and management of the partnership affairs;
   2-15                    (D)  a joint venture in which each entity in the
   2-16  joint venture is a historically underutilized <disadvantaged>
   2-17  business under this subdivision; or
   2-18                    (E)  a supplier contract between a historically
   2-19  underutilized <disadvantaged> business under this subdivision and a
   2-20  prime contractor under which the historically underutilized
   2-21  <disadvantaged> business is directly involved in the manufacture or
   2-22  distribution of the supplies or materials or otherwise warehouses
   2-23  and ships the supplies.
   2-24        SECTION 2.  Section 1.02, State Purchasing and General
   2-25  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   2-26  amended by adding Subdivisions (4), (5), and (6) to read as
   2-27  follows:
    3-1              (4)  "Automated information systems" means any
    3-2  automated information systems, the computers on which they are
    3-3  automated, or a service related to the automation of information
    3-4  systems or the computers on which they are automated, including
    3-5  computer software, awarded to a vendor by a state agency covered by
    3-6  the Information Resources Management Act (Article 4413(32j),
    3-7  Revised Statutes) or any telecommunications apparatus or device
    3-8  that serves as a component of a voice, data, or video
    3-9  communications network for the purpose of transmitting, switching,
   3-10  routing, multiplexing, modulating, amplifying, or receiving signals
   3-11  on that network.
   3-12              (5)  "Best value" means lowest overall cost of
   3-13  information systems based on the following factors, including, but
   3-14  not limited to:
   3-15                    (A)  purchase price;
   3-16                    (B)  compatibility to facilitate exchange of
   3-17  existing data;
   3-18                    (C)  capacity for expansion and upgrading to more
   3-19  advanced levels of technology;
   3-20                    (D)  quantitative reliability factors;
   3-21                    (E)  the level of training required to bring
   3-22  end-users to a stated level of proficiency;
   3-23                    (F)  the technical support requirements for
   3-24  maintenance of data across a network platform and management of the
   3-25  network's hardware and software; and
   3-26                    (G)  compliance with applicable statewide
   3-27  standards adopted by the Department of Information Resources or a
    4-1  subsequent entity as validated by criteria established by the
    4-2  department or a subsequent entity in administrative rule.
    4-3              (6)  "Qualified information systems vendor" means
    4-4  manufacturers or resellers of automated information systems who are
    4-5  authorized by the commission to publish catalogues of products and
    4-6  services which may be directly purchased by state agencies covered
    4-7  by the Information Resources Management Act (Article 4413(32j),
    4-8  Revised Statutes).
    4-9        SECTION 3.  Section 1.03, State Purchasing and General
   4-10  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   4-11  amended to read as follows:
   4-12        Sec. 1.03.  Historically underutilized <Disadvantaged>
   4-13  businesses.  (a)  The commission <Office of Small Business
   4-14  Assistance of the Texas Department of Commerce> shall certify
   4-15  businesses that are historically underutilized <disadvantaged>
   4-16  businesses.  As part of its certification procedures, the
   4-17  commission <office> may approve a municipal program that certifies
   4-18  historically underutilized <disadvantaged> businesses under
   4-19  substantially the same definition prescribed by Section 1.02(3) of
   4-20  this Act and may certify businesses certified by the municipality
   4-21  as historically underutilized <disadvantaged> businesses under this
   4-22  Act.
   4-23        (b)  The commission <office> shall compile in the most
   4-24  cost-efficient format a directory of businesses certified as
   4-25  historically underutilized <disadvantaged> businesses under
   4-26  Subsection (a) of this section.  The commission <office> shall
   4-27  update the directory at least semiannually and provide a copy of
    5-1  the directory to <the commission and> each state agency
    5-2  semiannually.  The commission shall provide access to the directory
    5-3  either electronically or in another format, depending on the needs
    5-4  of each state agency.  On request, the commission shall make the
    5-5  directory available to local governments and the public.  The
    5-6  commission and state agencies shall use the directory in
    5-7  determining awards of state purchasing and public works contracts.
    5-8        (c)  The commission shall prepare a report based on a
    5-9  compilation and analysis of reports submitted to it by each state
   5-10  agency and information provided by the comptroller.  <commission
   5-11  and each state agency shall report to the office> The report shall
   5-12  include the total number and dollar amount of contracts awarded and
   5-13  actually paid to historically underutilized <disadvantaged>
   5-14  businesses certified by the commission.  Not later than September
   5-15  15 and March 15 of each year, each state agency shall submit to the
   5-16  commission information required by the commission for its
   5-17  preparation of the report required by this subsection.  <These
   5-18  reports shall be made each January and July and shall report on the
   5-19  previous six-month period.  The office shall compile and analyze
   5-20  the reports and submit a report based on the analysis to the
   5-21  presiding officer of each house of the legislature each February.>
   5-22  The commission shall submit a consolidated report on April 15 of
   5-23  each year on the previous six-month period to the joint committee
   5-24  charged with monitoring the implementation of the historically
   5-25  underutilized business goals.  The commission shall submit a
   5-26  consolidated report on October 15 of each year on the preceding
   5-27  fiscal year to the presiding officer of each house of the
    6-1  legislature, the members of the legislature and the joint
    6-2  committee.  The commission may require information from a state
    6-3  agency and may adopt rules to administer this section.  The
    6-4  comptroller shall provide information to the commission that will
    6-5  assist the commission in the performance of its duties under this
    6-6  section.  Subsections (d)-(k) of this section apply to the report
    6-7  and information required under this section.
    6-8        (d)  Each state agency that participates in a group
    6-9  purchasing program under Section 3.01(a)(5) of this Act shall
   6-10  include in the information submitted to the commission under
   6-11  Subsection (c) of this section a separate list of purchases from
   6-12  historically underutilized businesses that are made through the
   6-13  group purchasing program and shall report the dollar amount of each
   6-14  purchase that is allocated to the reporting agency.
   6-15        (e)  To ensure accuracy in reporting the use of historically
   6-16  underutilized businesses, each state agency shall continuously
   6-17  maintain, and shall compile monthly, information relating to the
   6-18  agency's use, and the use by each operating division of the agency,
   6-19  of historically underutilized businesses, including information
   6-20  regarding subcontractors and suppliers required by Subsection (f)
   6-21  of this section.
   6-22        (f)  A contractor or supplier to whom a state agency has
   6-23  awarded a contract shall report to the agency the identity of each
   6-24  historically underutilized business to whom the contractor or
   6-25  supplier has awarded a subcontract for the purchase of supplies,
   6-26  materials, services, or equipment.
   6-27        (g)  The commission, in cooperation with the comptroller and
    7-1  each state agency reporting under this section, shall categorize
    7-2  each historically underutilized business that is included in a
    7-3  report under this section by sex, race, and ethnicity.
    7-4        (h)  The report required by Subsection (c) of this section
    7-5  shall include an analysis of the relative level of opportunity for
    7-6  historically underutilized businesses for various classes or
    7-7  categories of acquisitions of materials, supplies, equipment, and
    7-8  services.
    7-9        (i)  The commission shall seek the advice of the governor,
   7-10  the legislature, and state agencies in facilitating identification
   7-11  of and development of opportunities for historically underutilized
   7-12  businesses.
   7-13        (j) <(d)>  The commission shall offer assistance and training
   7-14  to historically underutilized <disadvantaged> businesses regarding
   7-15  state procurement procedures.  The commission shall advise
   7-16  historically underutilized <disadvantaged> businesses of the
   7-17  availability of state contracts and advise historically
   7-18  underutilized <disadvantaged> businesses to enter the businesses'
   7-19  names on the state's bid list.
   7-20        (k)  It is the intent of this measure that reports of
   7-21  historically underutilized business purchasing and contracts shall
   7-22  form a record of each agency's purchases in which the agency
   7-23  selected the vendor.  If the vendor was selected by the commission
   7-24  as part of its state contract program, the purchase shall be
   7-25  reflected on the commission's report of its own purchases except in
   7-26  those cases where an agency selects a sole source vendor under the
   7-27  provisions of Section 3.09 of this Act.  In the case of Section
    8-1  3.09 purchases, the selections of vendors shall remain part of the
    8-2  record of the agency selecting the vendor, not the commission.
    8-3        SECTION 4.  Section 1.04(a), State Purchasing and General
    8-4  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
    8-5  amended to read as follows:
    8-6        (a)  A person commits an offense if the person intentionally
    8-7  applies as a historically underutilized <disadvantaged> business
    8-8  for an award of a purchasing contract or public works contract
    8-9  under this Act and the person knowingly does not meet the
   8-10  definition of a historically underutilized <disadvantaged> business
   8-11  under Section 1.02(3) of this Act.
   8-12        SECTION 5.  Section 2.02, State Purchasing and General
   8-13  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   8-14  amended to read as follows:
   8-15        Sec. 2.02.  Membership.  The commission is composed of six
   8-16  members appointed by the governor with the advice and consent of
   8-17  the senate.  All members must be representatives of the general
   8-18  public.  Appointments to the commission shall be made without
   8-19  regard to the race, color, disability <handicap>, sex, religion,
   8-20  age, or national origin of the appointees.  In making appointments
   8-21  under this section, the governor shall attempt to appoint members
   8-22  of different minority groups, including females, African-Americans,
   8-23  Hispanic-Americans, Native Americans, and Asian-Americans.  A
   8-24  person is not eligible for appointment if the person or the
   8-25  person's spouse:
   8-26              (1)  is employed by or participates in the management
   8-27  of a business entity or other organization that contracts with the
    9-1  commission;
    9-2              (2)  owns or controls, directly or indirectly, more
    9-3  than a 10 percent interest in a business entity or other
    9-4  organization that contracts with the state; or
    9-5              (3)  uses or receives a substantial amount of tangible
    9-6  goods, services, or funds from the commission, other than
    9-7  compensation or reimbursement authorized by law for commission
    9-8  membership, attendance, or expenses.
    9-9        SECTION 6.  Section 2.06(i), State Purchasing and General
   9-10  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   9-11  amended to read as follows:
   9-12        (i)  The executive director or the executive director's
   9-13  designee shall prepare and maintain a written policy statement to
   9-14  assure implementation of a program of equal employment opportunity
   9-15  under which all personnel transactions are made without regard to
   9-16  race, color, disability <handicap>, sex, religion, age, or national
   9-17  origin.  The policy statement must include:
   9-18              (1)  personnel policies, including policies relating to
   9-19  recruitment, evaluation, selection, appointment, training, and
   9-20  promotion of personnel, that are in compliance with requirements of
   9-21  the Commission on Human Rights Act (Article 5221k, Vernon's Texas
   9-22  Civil Statutes), and its subsequent amendments;
   9-23              (2)  a comprehensive analysis of the commission work
   9-24  force that meets federal and state guidelines;
   9-25              (3)  procedures by which a determination can be made of
   9-26  significant underutilization in the commission work force of all
   9-27  persons for whom federal or state guidelines encourage a more
   10-1  equitable balance; and
   10-2              (4)  reasonable methods to address appropriately those
   10-3  areas of significant underutilization.
   10-4        SECTION 7.  Section 2.06(j), State Purchasing and General
   10-5  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   10-6  amended to read as follows:
   10-7        (j)  A policy statement prepared under Subsection (i) of this
   10-8  section must cover an annual period, be updated at least annually,
   10-9  be reviewed annually by the Commission on Human Rights for
  10-10  compliance with Subsection (i)(1) of this section, and be filed
  10-11  with the governor's office.
  10-12        SECTION 8.  Section 2.07, State Purchasing and General
  10-13  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  10-14  amended to read as follows:
  10-15        Sec. 2.07.  Application of Sunset Act.  The commission is
  10-16  subject to Chapter 325, Government Code (Texas Sunset Act).  Unless
  10-17  continued in existence as provided by that chapter, the commission
  10-18  is abolished and this Act expires September 1, 2001 <1993>.
  10-19        SECTION 9.  Section 2.10(c), State Purchasing and General
  10-20  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  10-21  amended to read as follows:
  10-22        (c)  The commission shall prepare and maintain a written plan
  10-23  that describes how a person who does not speak English <or who has
  10-24  a physical, mental, or developmental disability> can be provided
  10-25  reasonable access to the commission's programs.  The commission
  10-26  shall also comply with federal and state laws for program and
  10-27  facility accessibility.
   11-1        SECTION 10.  Section 3.01, State Purchasing and General
   11-2  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   11-3  amended by adding Subsection (e) to read as follows:
   11-4        (e)  The Texas Youth Commission may purchase care and
   11-5  treatment services for its wards, including educational services,
   11-6  and such purchases shall be negotiated to achieve fair and
   11-7  reasonable prices at rates which do not exceed any maximum provided
   11-8  by law.  Selection of service providers shall be based upon the
   11-9  qualifications and demonstrated competence of the provider.
  11-10        SECTION 11.  Section 3.022, State Purchasing and General
  11-11  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  11-12  amended by adding Subsection (h) to read as follows:
  11-13        (h)  A medical or dental unit as that term is defined in
  11-14  Section 61.003, Education Code, may purchase the following types of
  11-15  medical equipment by the use of competitive sealed proposals if it
  11-16  follows commission rules and procedures provided by this section
  11-17  regarding the use of competitive sealed proposals and submits to
  11-18  the commission a written finding that competitive sealed bidding or
  11-19  informal competitive bidding is not practical or is disadvantageous
  11-20  to the state for the proposed acquisition:
  11-21              (1)  prototypical medical equipment not yet available
  11-22  on the market;
  11-23              (2)  medical equipment so new to the market that its
  11-24  benefits are not fully known; or
  11-25              (3)  major medical equipment that is so technically
  11-26  complex that development of specifications for competitive bidding
  11-27  is not feasible.
   12-1        SECTION 12.  Article 3, State Purchasing and General Services
   12-2  Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
   12-3  adding Section 3.0221 to  read as follows:
   12-4        Sec. 3.0221.  COMPETITIVE SEALED PROPOSALS; ACQUISITION OF
   12-5  CERTAIN SUPPLIES, MATERIALS, EQUIPMENT, AND ROUTINE SERVICES.  (a)
   12-6  The commission may follow a procedure using competitive sealed
   12-7  proposals to acquire:
   12-8              (1)  supplies, materials, or equipment if the cost of
   12-9  acquisition is $1 million or more; or
  12-10              (2)  routine services if the cost of acquisition is
  12-11  $100,000 or more.
  12-12        (b)  Only the commission may acquire goods or services using
  12-13  competitive sealed proposals under this section.  The commission
  12-14  may not delegate this authority to a state agency.
  12-15        (c)  To acquire goods or services using competitive sealed
  12-16  proposals under this section, the commission must first determine
  12-17  in an open meeting that competitive sealed bidding or informal
  12-18  competitive bidding is not practical or is disadvantageous to the
  12-19  state.
  12-20        (d)  The commission shall solicit proposals by a request for
  12-21  proposals.  The commission shall give public notice of a request
  12-22  for proposals in the manner provided for requests for bids under
  12-23  Section 3.12 of this article.
  12-24        (e)  The commission shall consult with appropriate personnel
  12-25  of a requisitioning agency to develop specifications for a request
  12-26  for competitive sealed proposals under this section.
  12-27        (f)  The commission shall open each proposal in a manner that
   13-1  does not disclose the contents of the proposal during the process
   13-2  of negotiating with competing offerors.  The commission shall file
   13-3  each proposal in a register of proposals, which shall be open for
   13-4  public inspection after a contract is awarded unless the register
   13-5  contains information that is excepted from disclosure as an open
   13-6  record under Section 3, Chapter 424, Acts of the 63rd Legislature,
   13-7  Regular Session, 1973 (Article 6252-17a, Vernon's Texas Civil
   13-8  Statutes), and its subsequent amendments.
   13-9        (g)  As provided in a request for proposals and under rules
  13-10  adopted by the commission, the commission may discuss acceptable or
  13-11  potentially acceptable proposals with offerors to assess an
  13-12  offeror's ability to meet the solicitation requirements.  After the
  13-13  submission of a proposal but before making an award, the commission
  13-14  may permit the offeror to revise the proposal in order to obtain
  13-15  the best final offer.  The commission may not disclose any
  13-16  information derived from proposals submitted from competing
  13-17  offerors in conducting discussions under this subsection.  The
  13-18  commission shall provide each offeror with an equal opportunity for
  13-19  discussion and revision of proposals.
  13-20        (h)  The commission shall invite a requisitioning agency to
  13-21  participate in discussions conducted under Subsection (g) of this
  13-22  section.
  13-23        (i)  The commission shall make a written award of a contract
  13-24  to the offeror whose proposal is the most advantageous to the
  13-25  state, considering price and the evaluation factors in the request
  13-26  for proposals, except that if the commission finds that none of the
  13-27  offers is acceptable, it shall refuse all offers.  The contract
   14-1  file must state in writing the basis on which the award is made.
   14-2        (j)  The commission may adopt rules  and request assistance
   14-3  from other state agencies to perform its responsibilities under
   14-4  this section.
   14-5        (k)  This section does not affect Section 3.022 of this
   14-6  article regarding the use of competitive sealed proposals for
   14-7  acquiring goods or services related to telecommunications or
   14-8  automated information technology.
   14-9        SECTION 13.  Section 3.04, State Purchasing and General
  14-10  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  14-11  amended to read as follows:
  14-12        Sec. 3.04.  Mental Health and Mental Retardation Community
  14-13  Centers; Assistance Organizations.  Community centers for mental
  14-14  health and mental retardation services that receive <are receiving>
  14-15  state grants-in-aid under the provisions of Article 4 of the Texas
  14-16  Mental Health and Mental Retardation Act and assistance
  14-17  organizations as defined by Section 9.01 of this Act that receive
  14-18  any state funds may purchase goods and services <drugs and
  14-19  medicines> through the commission.
  14-20        SECTION 14.  Article 3, State Purchasing and General Services
  14-21  Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
  14-22  adding Section 3.061 to read as follows:
  14-23        Sec. 3.061.  GROUP PURCHASING PROGRAMS.  (a)  Institutions of
  14-24  higher education, as defined by Section 61.003, Education Code, are
  14-25  authorized to purchase materials, supplies or equipment through
  14-26  group purchasing programs that offer discount prices to
  14-27  institutions of higher education.
   15-1        (b)  The commission shall promulgate rules allowing purchases
   15-2  through group purchasing programs unless the commission determines
   15-3  within a reasonable period of time after receiving notification of
   15-4  a particular purchase that a lower price is available through the
   15-5  commission.
   15-6        (c)  The rules shall also include provisions that provide for
   15-7  commission determination of compliance with state laws and
   15-8  commission rules regarding purchasing with historically
   15-9  underutilized businesses.
  15-10        (d)  This section does not affect other authority granted to
  15-11  institutions of higher education under this Act.
  15-12        SECTION 15.  Section 3.07(b), State Purchasing and General
  15-13  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  15-14  amended to read as follows:
  15-15        (b)  Each emergency purchase made under this section is
  15-16  subject to the historically underutilized <disadvantaged> business
  15-17  provisions of Section 3.10 of this article.
  15-18        SECTION 16.  Article 3, State Purchasing and General Services
  15-19  Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
  15-20  adding Section 3.081 to read as follows:
  15-21        Sec. 3.081.  CATALOGUE PURCHASE PROCEDURE.  (a)  A vendor who
  15-22  wants to sell or lease automated information systems under this
  15-23  section to state agencies covered by the Information Resources
  15-24  Management Act (Article 4413(32j), Revised Statutes) shall apply to
  15-25  the commission for designation as a "qualified information systems
  15-26  vendor" according to an application process promulgated by the
  15-27  commission.  At a minimum, the application process shall include
   16-1  submission of the following elements:
   16-2              (1)  a catalogue containing all products and services
   16-3  eligible for purchase by state agencies, including descriptions of
   16-4  each product or service, the list price of each product or service,
   16-5  and the price to Texas state agencies of each product or service;
   16-6              (2)  a maintenance, repair, and support plan for all
   16-7  eligible products and services;
   16-8              (3)  proof of the applicant's financial resources and
   16-9  ability to perform; and
  16-10              (4)  a guarantee that the vendor will make available
  16-11  equivalent replacement parts for products sold to Texas for at
  16-12  least three years from the date of a product's discontinuation.
  16-13        (b)  Within 90 days of the effective date of this Act the
  16-14  commission shall establish standards and criteria for designating
  16-15  qualified information systems vendors on a regional and statewide
  16-16  basis.  A vendor remains qualified until the commission determines
  16-17  the vendor fails to meet the criteria set forth in this section.
  16-18  Vendors granted regional status may sell catalogue-listed products
  16-19  and services directly to  state agencies covered by the Information
  16-20  Resources Management Act (Article 4413(32j), Revised Statutes)
  16-21  within a region defined by the commission.  Vendors granted
  16-22  statewide status may sell catalogue-listed products and services
  16-23  directly to any state agency covered by the Information Resources
  16-24  Management Act (Article 4413(32j), Revised Statutes).  The
  16-25  commission's standards and criteria shall be developed in
  16-26  accordance with the following parameters:
  16-27              (1)  the ability of the vendor to provide adequate and
   17-1  reliable support and maintenance;
   17-2              (2)  the vendor's ability to provide adequate and
   17-3  reliable support and maintenance in the future;
   17-4              (3)  the technical adequacy and reliability of the
   17-5  vendor's products; and
   17-6              (4)  consistency with standards adopted by the
   17-7  Department of Information Resources or a subsequent entity.
   17-8        (c)  If a vendor is designated by the commission as a
   17-9  qualified information systems vendor, the vendor shall publish and
  17-10  maintain a catalogue containing all products and services eligible
  17-11  for purchase by state agencies, including descriptions of each
  17-12  product or service, the list price of each product or service, and
  17-13  the price to Texas state agencies of each product or service.  The
  17-14  vendor shall update the catalogue on an as-needed basis to reflect
  17-15  changes in price or the availability of products or services and
  17-16  shall forward a copy of each updated catalogue to the commission
  17-17  and all eligible purchasers.
  17-18        (d)  A state agency covered by the Information Resources
  17-19  Management Act (Article 4413(32j), Revised Statutes) may purchase
  17-20  or lease automated information systems directly from a qualified
  17-21  information systems vendor and may negotiate additional terms and
  17-22  conditions to be included in contracts relating to the purchase or
  17-23  lease, provided the purchase or lease is based on the best value
  17-24  available and is in the state's best interest.  In determining
  17-25  which products or services are in the state's best interest, the
  17-26  agency shall consider the following factors:
  17-27              (1)  installation costs and hardware costs;
   18-1              (2)  the overall life cycle cost of the system or
   18-2  equipment;
   18-3              (3)  estimated cost of employee training and estimated
   18-4  increase in employee productivity;
   18-5              (4)  estimated software and maintenance costs; and
   18-6              (5)  compliance with applicable statewide standards
   18-7  adopted by the Department of Information Resources or a subsequent
   18-8  entity as validated by criteria established by the department or a
   18-9  subsequent entity in administrative rule.
  18-10        (e)  The commission shall establish rules and regulations and
  18-11  implement the catalogue purchase procedure set forth in this
  18-12  section no later than January 1, 1994.
  18-13        (f)  Purchases of automated information systems shall be made
  18-14  through the catalogue procedure enumerated in this section unless
  18-15  the commission or state agency determines that the best value
  18-16  available accrues from an alternative purchase method authorized by
  18-17  this Act.
  18-18        (g)  The commission shall make the catalogue purchasing
  18-19  procedure enumerated in this section available to local governments
  18-20  that qualify for cooperative purchasing under Sections 271.082 and
  18-21  271.083, Local Government Code.  In this subsection, "local
  18-22  government" has the meaning assigned to it by Section 271.081,
  18-23  Local Government Code.
  18-24        SECTION 17.  Section 3.10(b), State Purchasing and General
  18-25  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  18-26  amended to read as follows:
  18-27        (b)  The commission and each state agency shall make a good
   19-1  faith effort to assist historically underutilized <disadvantaged>
   19-2  businesses to receive not less than 30 <at least 10> percent of the
   19-3  total value of all contract awards for the purchase of supplies,
   19-4  materials, services, and equipment that the commission or other
   19-5  agency expects to make during <for> a <state agency in its> fiscal
   19-6  year.  The commission and each state agency shall estimate the
   19-7  expected total value of the <an agency's> contract awards they
   19-8  expect to make that are subject to this subsection not later than
   19-9  the 60th day of the agency's fiscal year and may revise the
  19-10  estimate as new information requires.
  19-11        SECTION 18.  Section 3.101, State Purchasing and General
  19-12  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  19-13  amended to read as follows:
  19-14        Sec. 3.101.  Centralized Master Bidders List <lists>.
  19-15  (a)  This section:
  19-16              (1)  applies to all purchases or other acquisitions
  19-17  under this article, including the acquisition of services, for
  19-18  which competitive bidding or competitive sealed proposals are
  19-19  required;
  19-20              (2)  applies to each <all> state agency <agencies> that
  19-21  makes <make> purchases or other acquisitions under this article,
  19-22  including the commission and agencies that make purchases or other
  19-23  acquisitions under Section 3.06 of this article; and
  19-24              (3)  does not apply to purchases or other acquisitions
  19-25  made by the commission under Section 3.11 of this article.
  19-26        (b)  The commission shall develop a uniform registration form
  19-27  for application to do business with the commission or with any
   20-1  state agency.  The commission and each state agency shall make the
   20-2  form available to applicants.  The form shall include an
   20-3  application for:
   20-4              (1)  certification as a historically underutilized
   20-5  business;
   20-6              (2)  a payee identification number for use by the
   20-7  comptroller; and
   20-8              (3)  placement on the commission's master bidders list.
   20-9        (c)  A state agency shall submit to the commission each
  20-10  uniform registration form that it receives.  The commission shall
  20-11  send to the comptroller a copy of each uniform registration form.
  20-12        (d)  The commission <The registration forms shall constitute
  20-13  a valid application for a bidders list by all state agencies.
  20-14  Nothing in this subsection shall be construed as preventing any
  20-15  state agency from developing and using its own registration form,
  20-16  but such forms shall not be required in addition to or in lieu of
  20-17  the uniform registration form developed by the commission.>
  20-18        <(c)  Each state agency> shall maintain a master bidders list
  20-19  and annually register on the list the name and address of each
  20-20  vendor that applies for registration in accordance with rules
  20-21  adopted under this section.  The commission <An agency> may include
  20-22  other relevant vendor information on the list.  Each state agency
  20-23  shall solicit bids or proposals from all eligible vendors on the
  20-24  list that serve the agency's geographic region, as provided by this
  20-25  section, when the agency proposes to make a purchase or other
  20-26  acquisition that will cost more than $15,000 <$5,000>.  The
  20-27  commission shall maintain the master bidders list in a manner that
   21-1  facilitates a state agency's solicitation of vendors that serve the
   21-2  agency's geographic area.
   21-3        (e)  The commission shall make the master bidders list
   21-4  available to each state agency that makes purchases or other
   21-5  acquisitions to which this section applies.  The commission shall
   21-6  provide access to the list either electronically or in another
   21-7  format, depending on the needs of each state agency.
   21-8        (f)  The commission <(d)  A state agency> may charge
   21-9  applicants for registration a fee and may charge registrants an
  21-10  annual renewal fee in an amount designed to recover the
  21-11  commission's <agency's> costs in developing and maintaining the
  21-12  master <its> bidders list and in soliciting bids or proposals under
  21-13  this section.  The commission <An agency> shall set the amount of
  21-14  the fees by rule.
  21-15        (g)  The commission <(e)  Each state agency> shall adopt
  21-16  procedures for developing and maintaining the master <its> bidders
  21-17  list and procedures for removing inactive vendors from the list.
  21-18        (h)  The commission <(f)  Each state agency> shall establish
  21-19  by rule a vendor classification process under which only vendors
  21-20  that may be able to make a bid or proposal on a particular purchase
  21-21  or other acquisition are solicited under this section.
  21-22        (i)  A state agency may maintain and use its own bidders list
  21-23  only if the commission determines by rule that the agency has
  21-24  specialized needs that can best be met through maintaining and
  21-25  using its own specialized bidders list.  The commission by rule may
  21-26  prescribe the categories of purchases or other acquisitions for
  21-27  which an agency's specialized bidders list may be used.  An agency
   22-1  may supplement the bidders list with its own list of historically
   22-2  underutilized businesses if it determines that supplementation will
   22-3  increase the number of historically underutilized businesses that
   22-4  submit bids.
   22-5        (j) <(g)>  The commission may establish by rule a process
   22-6  under which the requirement for soliciting bids or proposals from
   22-7  eligible vendors on a <the> bidders list may be waived for
   22-8  appropriate state agencies or appropriate purchases or other
   22-9  acquisitions in circumstances in which the requirement is not
  22-10  warranted.  The commission also may assist state agencies regarding
  22-11  issues that arise under this section.
  22-12        SECTION 19.  Section 3.15(h), State Purchasing and General
  22-13  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  22-14  amended to read as follows:
  22-15        (h)  This section does not apply to interagency purchases or
  22-16  transactions.   Interagency purchases and transactions must be
  22-17  accomplished on special vouchers or electronically as prescribed by
  22-18  the comptroller <of public accounts.   The commission shall audit
  22-19  all interagency purchases and transactions after they have been
  22-20  completed>.
  22-21        SECTION 20.  Section 3.29(a), State Purchasing and General
  22-22  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  22-23  amended to read as follows:
  22-24        (a)  A state agency may not purchase or lease a vehicle
  22-25  designed or used primarily for the transportation of persons,
  22-26  including a station wagon, that has a wheel base longer than 113
  22-27  inches or that has more than 160 SAE net horsepower, except that
   23-1  the vehicle may have a wheel base of up to 116 inches or SAE net
   23-2  horsepower of up to 280 if the vehicle will be converted so that it
   23-3  is capable of using compressed natural gas or another alternative
   23-4  fuel that results in comparably lower emissions of oxides of
   23-5  nitrogen, volatile organic compounds, carbon monoxide, or
   23-6  particulates.  This exception to the wheel base and horsepower
   23-7  limitations applies to a state agency regardless of the size of the
   23-8  agency's vehicle fleet.  The wheel base and horsepower limitations
   23-9  prescribed by this subsection do <This provision does> not apply to
  23-10  the purchase or lease of a vehicle to be used primarily for
  23-11  criminal law enforcement or a bus, motorcycle, pickup, van, truck,
  23-12  three-wheel vehicle, tractor, or ambulance.
  23-13        SECTION 21.  Section 4.01, State Purchasing and General
  23-14  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  23-15  amended by amending Subsection (a) and by adding Subsection (d) to
  23-16  read as follows:
  23-17        (a)  The commission shall have charge and control of all
  23-18  public buildings, grounds and property of the state, and is the
  23-19  custodian of all public personal property, and is responsible for
  23-20  the proper care and protection of such property from damage,
  23-21  intrusion, or improper usage.  <The commission is expressly
  23-22  directed to take any steps necessary to protect public buildings
  23-23  against any existing or threatened fire hazards.>  The commission
  23-24  is authorized to provide for the allocation of space in any of the
  23-25  public buildings to the departments of the state government for the
  23-26  uses authorized by law, and is authorized to make any repairs to
  23-27  any such buildings or parts thereof necessary to the serviceable
   24-1  accommodation of the uses to which such buildings or space therein
   24-2  may be allotted.
   24-3        (d)  The commission may allocate space in buildings in the
   24-4  Texas Judicial Complex only to:
   24-5              (1)  a court;
   24-6              (2)  a judicial agency;
   24-7              (3)  the attorney general's office;
   24-8              (4)  the Texas Department of Criminal Justice;
   24-9              (5)  the Texas Youth Commission;
  24-10              (6)  the Criminal Justice Policy Council;
  24-11              (7)  the State Commission on Judicial Conduct;
  24-12              (8)  the State Office of Administrative Hearings;
  24-13              (9)  the Board of Law Examiners;
  24-14              (10)  the Interagency Council on Sex Offender
  24-15  Treatment;
  24-16              (11)  building security;
  24-17              (12)  building maintenance; or
  24-18              (13)  a vending facility operated under Chapter 94,
  24-19  Human Resources Code.
  24-20        SECTION 22.  Article 4, State Purchasing and General Services
  24-21  Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
  24-22  adding Section 4.082 to read as follows:
  24-23        Sec. 4.082.  TEXAS JUDICIAL COMPLEX.  "Texas Judicial
  24-24  Complex" is the collective name of the Supreme Court Building, the
  24-25  Tom C. Clark State Courts Building, and the Price Daniel, Sr.,
  24-26  Building.
  24-27        SECTION 23.  Section 4.01, State Purchasing and General
   25-1  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   25-2  amended by adding Subsection (b-1) to read as follows:
   25-3        (b-1)  The space in the old State Board of Insurance State
   25-4  Office Building, located on San Jacinto Street between 11th and
   25-5  12th streets in Austin, is allocated to the legislature and
   25-6  legislative agencies for their use.  The presiding officers of each
   25-7  house of the legislature shall jointly decide the allocation of the
   25-8  space within the building.
   25-9        SECTION 24.  Section 4.13, State Purchasing and General
  25-10  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  25-11  transferred to Chapter 443, Government Code, designated as Section
  25-12  443.020, and amended to read as follows:
  25-13        Sec. 443.020 <4.13>.  Pass Keys to Rooms in the Capitol.  Any
  25-14  person who shall make or have made or keep in his possession a pass
  25-15  or master key to the rooms and apartments in the state capitol,
  25-16  unless authorized to do so, shall be fined not exceeding $100.
  25-17        SECTION 25.  Section 5.16(c), State Purchasing and General
  25-18  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  25-19  amended to read as follows:
  25-20        (c)  A project analysis shall consist of (1) a complete
  25-21  description of the facility or project together with a
  25-22  justification of such facility or project prepared by the using
  25-23  agency, (2) a detailed estimate of the amount of space needed to
  25-24  meet the needs of the using agency and to allow for realistic
  25-25  future growth, (3) a description of the proposed facility prepared
  25-26  by an architect/engineer and including schematic plans and outline
  25-27  specifications describing the type of construction and probable
   26-1  materials to be used, sufficient to establish the general scope and
   26-2  quality of construction, (4) an estimate of the probable cost of
   26-3  construction, (5) a description of the proposed site of the project
   26-4  and an estimate of the cost of site preparation, (6) an overall
   26-5  estimate of the cost of the project, (7) the information about
   26-6  historic structures considered instead of new construction that was
   26-7  prepared as required by Section 5.01A of this article, <and> (8) an
   26-8  evaluation of energy alternatives as required by Section 5.161 of
   26-9  this article, and (9) other information as required by the
  26-10  commission.  A project analysis may include two or more alternative
  26-11  proposals for meeting the space needs of the using agency by (1)
  26-12  new construction, (2) acquisition and rehabilitation of an existing
  26-13  or historic structure, or (3) a combination of the above.  If any
  26-14  part of the project involves the construction or rehabilitation of
  26-15  a building that is to be used primarily as a parking garage or for
  26-16  office space for the state government, the project analysis also
  26-17  shall include a description of the amount and location of space in
  26-18  the building that can be made available for lease, under Section
  26-19  4.15 of this Act, to private tenants or shall include a statement
  26-20  of the reason that the lease of space in the building to private
  26-21  tenants is not feasible.  All estimates involved in the preparation
  26-22  of a project analysis shall be carefully and fully documented and
  26-23  incorporated into the project analysis.
  26-24        Throughout the preparation of the project analysis, the
  26-25  commission and any private architect/engineer employed by the
  26-26  commission shall work closely and cooperatively with the using
  26-27  agency to the end that the project analysis shall fully reflect the
   27-1  needs of the using agency.
   27-2        The using agency shall use the cost of the project as
   27-3  determined by such project analysis as the basis of its request to
   27-4  the budget offices of this state.
   27-5        SECTION 26.  Article 5, State Purchasing and General Services
   27-6  Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
   27-7  adding Section 5.161 to read as follows:
   27-8        Sec. 5.161.  EVALUATION OF ENERGY ALTERNATIVES.  (a)  For
   27-9  each project for which a project analysis is prepared under Section
  27-10  5.16 of this article, and for which the construction, alteration,
  27-11  or repair involves installing or replacing all or part of an energy
  27-12  system, energy source, or energy-consuming equipment, the
  27-13  commission, or the private architect/engineer employed by the
  27-14  commission, shall prepare a written evaluation of energy
  27-15  alternatives for the project.
  27-16        (b)  An evaluation prepared under this section shall include
  27-17  information about the economic and environmental impact of various
  27-18  energy alternatives, including an evaluation of economic and
  27-19  environmental costs both initially and over the life of the system,
  27-20  source, or equipment.
  27-21        (c)  An evaluation under this section shall identify the best
  27-22  energy alternative for the project considering both economic and
  27-23  environmental costs and benefits.
  27-24        SECTION 27.  Section 5.22, State Purchasing and General
  27-25  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  27-26  amended by amending Subsection (b) and adding Subsection (d) to
  27-27  read as follows:
   28-1        (b)  Responsibility for the selection of a private
   28-2  architect/engineer employed for any project covered by the
   28-3  provisions of this article shall be vested in the commission.  The
   28-4  commission shall adopt rules that state the criteria the commission
   28-5  uses to evaluate the competence and qualifications of private
   28-6  architects/engineers.  The commission shall develop the rules in
   28-7  consultation with the Texas Board of Architectural Examiners and
   28-8  the State Board of Registration for Professional Engineers.  Except
   28-9  in an emergency, the <The> commission shall allow each private
  28-10  architect/engineer selected for an interview at least 30 days after
  28-11  the date the commission notifies the architect/engineer to prepare
  28-12  for the interview.
  28-13        (d)  In this section, an emergency is a situation that:
  28-14              (1)  presents an imminent peril to the public health,
  28-15  safety, or welfare;
  28-16              (2)  presents an imminent peril to property;
  28-17              (3)  requires expeditious action to prevent a hazard to
  28-18  life, health, safety, welfare, or property; or
  28-19              (4)  requires expeditious action to avoid undue
  28-20  additional cost to a state agency or the state.
  28-21        SECTION 28.  Section 5.26, State Purchasing and General
  28-22  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  28-23  amended by amending Subsection (b) and by adding Subsection (c) to
  28-24  read as follows:
  28-25        (b)  The commission shall cause the uniform general
  28-26  conditions of state building construction contracts to be reviewed
  28-27  whenever in its opinion such review is desirable, but in no event
   29-1  less frequently than once every five years.  The review shall be
   29-2  made by a committee appointed by the commission consisting of the
   29-3  director of facilities construction and space management, who shall
   29-4  serve ex officio as chairman of the committee and who shall vote
   29-5  only in the event of a tie; one person <two persons> appointed by
   29-6  the commission from a list of nominees submitted to it by the
   29-7  President of the Texas Society of Architects; one person <two
   29-8  persons> appointed by the commission from a list of nominees
   29-9  submitted to it by the President of the Texas Society of
  29-10  Professional Engineers; one person <two persons> appointed by the
  29-11  commission from a list of nominees submitted to it by the Chairman
  29-12  of the Executive Council of the Texas Associated General
  29-13  Contractors Chapters; one person <and two persons> appointed by the
  29-14  commission from the list of nominees submitted to it by the
  29-15  Executive Secretary of the Mechanical Contractors Associations of
  29-16  Texas, Incorporated; one person appointed by the commission from a
  29-17  list of nominees submitted to it by the Executive Secretary of the
  29-18  Texas Building and Construction Trades Council; one person
  29-19  appointed by the commission from a list of nominees submitted to it
  29-20  by the President of the Associated Builders and Contractors of
  29-21  Texas; one person appointed by the commission from a list of
  29-22  nominees submitted to it by the Executive Director of the National
  29-23  Association of Minority Contractors residing in Texas; one person
  29-24  appointed by the commission representing an institution of higher
  29-25  education, as defined by Section 61.003, Education Code; one person
  29-26  appointed by the commission representing a state agency that has a
  29-27  substantial ongoing construction program; and one person appointed
   30-1  by the commission representing the attorney general's office.
   30-2  Members of any review committee appointed pursuant to this
   30-3  subsection shall serve without compensation but may be reimbursed
   30-4  for their necessary and actual expenses.
   30-5        (c)  Any contract covered by this section that is not
   30-6  excepted by Sections 5.13 and 5.14 shall be considered to have an
   30-7  arbitration clause as a part of the contract covering any dispute
   30-8  or claim arising out of the contract.  A party to a contract with a
   30-9  claim or dispute against the other party shall give 30 days'
  30-10  written notice of the nature and extent of the claim or dispute.
  30-11  If the matters are not resolved within this notice period, either
  30-12  party may commence arbitration by giving the other a written
  30-13  request for arbitration and arbitrators shall be appointed.  The
  30-14  arbitrators shall be selected as provided in the contract.  If the
  30-15  contract does not provide for the selection of arbitrators, each
  30-16  party shall appoint one arbitrator.  The two appointed arbitrators
  30-17  shall select a third arbitrator.  All arbitrators shall be
  30-18  uninterested parties and have no affiliation with either party to
  30-19  the contract.  The parties shall make their appointments within 10
  30-20  business days after a written request for arbitration is delivered
  30-21  from one party to another.  The third arbitrator shall be appointed
  30-22  within 10 business days after the appointment of the party
  30-23  arbitrators.  The arbitration shall be conducted within 20 business
  30-24  days after the appointments are made.  The decision of the
  30-25  arbitrators shall be binding on the parties.  The arbitration shall
  30-26  be governed by and may be compelled and enforced under the Texas
  30-27  General Arbitration Act (Article 224 et seq., Revised Statutes) or
   31-1  under the United States Arbitration Act (9 U.S.C. Section 1 et
   31-2  seq.), if applicable.  The arbitration award shall not include
   31-3  punitive or exemplary damages nor attorney's fees.  Arbitration may
   31-4  not be requested after the first anniversary of the completion of
   31-5  the work under the contract.
   31-6        The Comptroller, with the assistance of the Center for Public
   31-7  Policy Dispute Resolution of The University of Texas School of Law,
   31-8  shall review the performance of the dispute resolution system
   31-9  created herein and shall furnish a report to the 75th Legislature
  31-10  in its Regular Session.
  31-11        This subsection expires on September 1, 1995, except that the
  31-12  subsection remains in effect for the limited purpose of governing
  31-13  an arbitration proceeding that begins before that date.  For the
  31-14  purpose of the expiration date, an arbitration proceeding begins
  31-15  before September 1, 1995, if the written request for arbitration is
  31-16  sent on or before August 31, 1995.
  31-17        SECTION 29.  Section 5.32(b)(1), State Purchasing and General
  31-18  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  31-19  amended to read as follows:
  31-20              (1)  "Solar energy" means <radiant> energy from the sun
  31-21  that may be collected and converted into useful thermal,
  31-22  mechanical, or electrical energy.  The term includes biomass energy
  31-23  that is created in living plants through photosynthesis, wind
  31-24  energy, and other renewable energy resources.
  31-25        SECTION 30.  Section 5.32(c), State Purchasing and General
  31-26  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  31-27  amended to read as follows:
   32-1        (c)  During the planning phase of the proposed construction
   32-2  of a new state building, the commission or, if the construction is
   32-3  included in the exceptions prescribed by Section 5.13 of this
   32-4  article, the governing body of the appropriate agency or
   32-5  institution shall verify in an open meeting <determine> the
   32-6  economic feasibility of incorporating solar energy devices for
   32-7  space heating, cooling, water heating, electrical loads, and
   32-8  interior lighting into the building's design and proposed energy
   32-9  system.  Economic feasibility for each function shall be determined
  32-10  by comparing the estimated cost of providing energy for the
  32-11  function <procurement> using conventional design practices and
  32-12  energy systems with the estimated cost of providing energy for the
  32-13  function using solar energy devices during the economic life of the
  32-14  proposed new building.
  32-15        SECTION 31.  Section 5.36, State Purchasing and General
  32-16  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  32-17  amended to read as follows:
  32-18        Sec. 5.36.  Public works contracts with certain businesses.
  32-19  A state agency that enters into a contract for a project, including
  32-20  a project constructed by or for an agency otherwise excepted under
  32-21  Section 5.13 of this article, shall make a good faith effort to
  32-22  assist historically underutilized <disadvantaged> businesses to
  32-23  receive not less than 30 <at least 10> percent of the total value
  32-24  of each construction contract award that the agency expects to make
  32-25  in its fiscal year.  Each agency shall estimate the expected total
  32-26  value of contract awards under this article not later than the 60th
  32-27  day of its fiscal year and may revise the estimate as new
   33-1  information requires.
   33-2        SECTION 32.  Article 5, State Purchasing and General Services
   33-3  Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
   33-4  adding Section 5.37 to read as follows:
   33-5        Sec. 5.37.  SMALL CONTRACTOR PARTICIPATION ASSISTANCE
   33-6  PROGRAM.  (a)  In this section:
   33-7              (1)  "Program" means the small contractor participation
   33-8  assistance program created under this section.
   33-9              (2)  "Public works project" means a construction
  33-10  project designed to serve the public necessity, use, or convenience
  33-11  that is undertaken and carried out by the commission.  The term
  33-12  includes a project for the construction, alteration, or repair of a
  33-13  public building.
  33-14              (3)  "Small business concern" has the meaning assigned
  33-15  by the Small Business Act (15 U.S.C. Section 631 et seq.) and its
  33-16  subsequent amendments.
  33-17              (4)  "Small contractor" means a contractor that
  33-18  operates as a small business concern.
  33-19        (b)  This section applies only to a contract for a public
  33-20  works project for which the estimated cost exceeds $20 million.
  33-21        (c)  Not later than January 1, 1994, the commission shall
  33-22  establish a small contractor participation assistance program to
  33-23  ensure full opportunity for participation in public works projects
  33-24  by small contractors.  A program established under this section
  33-25  must include:
  33-26              (1)  a system for the centralized purchase of any
  33-27  necessary insurance coverage for the public works project that is
   34-1  required under Subsection (d) of this section;
   34-2              (2)  a public outreach plan to provide public
   34-3  information about the program and to encourage small contractors to
   34-4  participate in the program;
   34-5              (3)  a technical assistance plan to aid small
   34-6  contractors to develop the skills necessary to participate in the
   34-7  program in accordance with Subsection (e) of this section; and
   34-8              (4)  a financing assistance plan to provide
   34-9  administrative and other assistance to small contractors in
  34-10  obtaining any necessary financing arrangements to make the
  34-11  participation of those contractors possible.
  34-12        (d)  The commission shall provide for the centralized
  34-13  purchasing of:
  34-14              (1)  workers' compensation insurance coverage;
  34-15              (2)  employer's liability insurance coverage;
  34-16              (3)  commercial general and excess liability coverage;
  34-17              (4)  payment and performance bonds; and
  34-18              (5)  any other analogous coverage the commission
  34-19  considers necessary and reasonable for the particular public works
  34-20  project.
  34-21        (e)  A technical assistance plan adopted by the commission
  34-22  must include information on and assistance in:
  34-23              (1)  estimating bids, the bidding process, scheduling,
  34-24  and understanding bid documents;
  34-25              (2)  reading construction drawings and other analogous
  34-26  documents;
  34-27              (3)  business accounting, bonds, and bond requirements;
   35-1              (4)  negotiation with general contractors; and
   35-2              (5)  any other technical and administrative assistance
   35-3  considered appropriate and necessary given the complexity and scope
   35-4  of the particular public works project.
   35-5        (f)  The commission may negotiate contracts with persons or
   35-6  firms having expertise in the areas that must be included in the
   35-7  commission's technical assistance plan to provide the information
   35-8  and assistance.
   35-9        SECTION 33.  Section 6.01, State Purchasing and General
  35-10  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  35-11  amended to read as follows:
  35-12        Sec. 6.01.  Definition.  In this article, "space" means
  35-13  office space, warehouse space, laboratory space, storage space
  35-14  exceeding 1,000 gross square feet, or any combination thereof, but
  35-15  does not include aircraft hangar space, radio antenna space, boat
  35-16  storage space, vehicle parking space, residential space for a Texas
  35-17  Department of Mental Health and Mental Retardation program,
  35-18  residential space for a Texas Youth Commission program, or space to
  35-19  be utilized for less than one month for meetings, conferences,
  35-20  seminars, conventions, displays, examinations, auctions, or other
  35-21  similar purposes.
  35-22        SECTION 34.  Article 6, State Purchasing and General Services
  35-23  Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
  35-24  adding Section 6.021 to read as follows:
  35-25        Sec. 6.021.  SPACE USE STUDY; LIMITATION ON ALLOCATION OF
  35-26  SPACE.  (a)  The commission periodically shall conduct a study to
  35-27  determine the space requirements of various state agencies that
   36-1  occupy space under the commission's charge and control, including
   36-2  state-owned space and space leased from other sources.
   36-3        (b)  The commission shall use the results of the study to:
   36-4              (1)  determine the optimal amount of space required for
   36-5  various state agency uses; and
   36-6              (2)  allocate space to state agencies in the best and
   36-7  most efficient manner possible.
   36-8        (c)  The commission may not allocate space to a state agency
   36-9  as defined in Articles I and II of the General Appropriations Act
  36-10  that exceeds an average of 153 square feet for each agency employee
  36-11  for each agency site for usable office space as defined by the
  36-12  General Services Commission, with the exception of an agency site
  36-13  at which 15 or fewer employees are located, insofar as possible
  36-14  without sacrifice of critical public or client services by the end
  36-15  of the 1994-1995 biennium.  This subsection does not apply to:
  36-16              (1)  warehouse space;
  36-17              (2)  laboratory space;
  36-18              (3)  storage space exceeding 1,000 gross square feet;
  36-19              (4)  library space;
  36-20              (5)  space for hearing rooms to conduct hearings
  36-21  required under the Administrative Procedure and Texas Register Act
  36-22  (Article 6252-13a, Vernon's Texas Civil Statutes); or
  36-23              (6)  another type of space specified by commission
  36-24  rule, if the commission determines that it is not practical to
  36-25  apply this subsection to the specified space.
  36-26        (d)  The commission shall conduct a study under this section
  36-27  at least once during each state fiscal biennium.
   37-1        (e)  This section does not apply to space that is not
   37-2  occupied by a state agency as defined by Section 1.02 of this Act.
   37-3        SECTION 35.  Section 9.13, State Purchasing and General
   37-4  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   37-5  amended to read as follows:
   37-6        Sec. 9.13.  Exemption.  For purposes of this article the
   37-7  terms "surplus" and "salvage" shall not apply to products and
   37-8  by-products of research, forestry, agricultural, livestock, and
   37-9  industrial enterprises <in excess of that quantity required for
  37-10  consumption by the producing agency when such agencies have a
  37-11  continuing and adequate system of marketing research and sales, the
  37-12  efficiency of which shall be certified to the commission by the
  37-13  state auditor.  A qualifying agency shall furnish the commission
  37-14  with a copy of the rules and regulations and latest revisions
  37-15  thereof promulgated by the policy-making body of each agency or
  37-16  institution for the guidance and administration of the programs
  37-17  enumerated herein.  When requested by such agency or institution to
  37-18  do so, the commission shall dispose of the property as provided for
  37-19  in this article>.
  37-20        SECTION 36.  Section 10.02, State Purchasing and General
  37-21  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  37-22  amended by amending Subsection (e) and adding Subsection (g) to
  37-23  read as follows:
  37-24        (e)  The commission, Department of Information Resources, and
  37-25  comptroller shall negotiate rates and execute contracts with
  37-26  telecommunications service providers for services.  Those entities
  37-27  may acquire transmission facilities by purchase, lease, or
   38-1  lease-purchase in accordance with Article 3 of this Act<, which
   38-2  shall be done on a competitive bid basis if possible>.  Those
   38-3  entities may develop, establish, and maintain carrier systems
   38-4  necessary to the operation of the telecommunications system.  The
   38-5  commission may own, lease, or lease-purchase any or all of the
   38-6  facilities or equipment necessary to provide telecommunications
   38-7  services in accordance with Article 3 of this Act.
   38-8        (g)  A representative of the Central Education Agency and a
   38-9  representative of the Texas Higher Education Coordinating Board
  38-10  shall review and comment on telecommunications plans developed by
  38-11  the commission, the Department of Information Resources, and the
  38-12  comptroller under this section.  The participation of the Central
  38-13  Education Agency and the Texas Higher Education Coordinating Board
  38-14  is for the limited purpose of coordinating the statewide
  38-15  telecommunications system developed under this article with the
  38-16  telecommunications systems of educational entities that are not
  38-17  subject to this article.  A representative of the Central Education
  38-18  Agency or the Texas Higher Education Coordinating Board under this
  38-19  section acts in an advisory capacity only and is not entitled to
  38-20  vote on decisions made under this article.
  38-21        SECTION 37.  Section 10.05, State Purchasing and General
  38-22  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  38-23  amended to read as follows:
  38-24        Sec. 10.05.  SHARING OF SERVICES OR FACILITIES.
  38-25  Telecommunications facilities and services, to the extent feasible
  38-26  and desirable, shall be provided on an integrated or shared basis,
  38-27  or both, among and between entities authorized to use the
   39-1  consolidated telecommunications systems under this Article 10 to
   39-2  avoid waste of state funds and manpower.  Such sharing or
   39-3  integrated use does not constitute the resale or carriage of
   39-4  services and does not subject the system to regulation or reporting
   39-5  under the Public Utility Regulatory Act (Article 1446c, Vernon's
   39-6  Texas Civil Statutes).
   39-7        SECTION 38.  Section 10.09(d), State Purchasing and General
   39-8  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   39-9  amended to read as follows:
  39-10        (d)  The commission shall prepare and issue a revised
  39-11  centralized telephone service directory not later than March 31 <in
  39-12  February> of each year.
  39-13        SECTION 39.  Section 14.01, State Purchasing and General
  39-14  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  39-15  amended to read as follows:
  39-16        Sec. 14.01.  Division.  The travel division of the commission
  39-17  is composed of the central travel office and the office of vehicle
  39-18  fleet management <maintenance>.  The commission shall adopt rules
  39-19  to implement this article, including rules related to:
  39-20              (1)  the structure of travel agency contracts that the
  39-21  commission makes;
  39-22              (2)  the procedures the commission uses in requesting
  39-23  and evaluating bids or proposals for travel agency contracts from
  39-24  providers; and
  39-25              (3)  the use of negotiated contract rates for travel
  39-26  services by state agencies.
  39-27        SECTION 40.  Section 14.02(b), State Purchasing and General
   40-1  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   40-2  amended to read as follows:
   40-3        (b)  <The central travel office shall initially provide
   40-4  services to designated agencies located in Travis County and shall
   40-5  extend its services to all state agencies as it develops the
   40-6  capability to do so.>  The office may negotiate contracts with
   40-7  private travel agents, with travel and transportation providers,
   40-8  and with credit card companies that provide travel services and
   40-9  other benefits to the state.  The commission shall make contracts
  40-10  with more than one provider of travel agency services.  Contracts
  40-11  entered into under this section are not subject to the competitive
  40-12  bidding requirements imposed under Article 3 of this Act.  The
  40-13  comptroller of public accounts shall audit for compliance of rules
  40-14  adopted to enforce the provisions of this section.
  40-15        SECTION 41.  The State Purchasing and General Services Act
  40-16  (Article 601b, Vernon's Texas Civil Statutes) is amended by adding
  40-17  Article 15 to read as follows:
  40-18            ARTICLE 15.  COUNCIL ON COMPETITIVE GOVERNMENT
  40-19        Sec. 15.01.  DEFINITIONS.  In this article:
  40-20              (1)  "Commercial activity" means an activity that
  40-21  provides a product or service that is commonly available from a
  40-22  private source.
  40-23              (2)  "Council" means the State Council on Competitive
  40-24  Government.
  40-25              (3)  "Identified state service" means a service
  40-26  provided by the state that the council has identified as a
  40-27  commercially available service and brought under study by the
   41-1  council to determine whether the service may better be provided
   41-2  through competition with private commercial sources.
   41-3              (4)  "State agency" has the meaning established by
   41-4  Section 1.02(2) of this Act.
   41-5        Sec. 15.02.  STATE COUNCIL ON COMPETITIVE GOVERNMENT.  The
   41-6  State Council on Competitive Government is established.  It is the
   41-7  policy of this state that all state services be performed in the
   41-8  most effective and efficient manner in order to be the best value
   41-9  to the citizens of the state and the state recognizes competition
  41-10  among service providers may improve the quality of service
  41-11  provided.  The state shall encourage competition, innovation, and
  41-12  creativity among service providers.
  41-13        Sec. 15.03.  MEMBERSHIP.  (a)  The council consists of the
  41-14  following persons or their designees:
  41-15              (1)  the governor;
  41-16              (2)  the lieutenant governor;
  41-17              (3)  the comptroller;
  41-18              (4)  the speaker of the house of representatives;
  41-19              (5)  the commission's presiding officer under Section
  41-20  2.04(a) of this Act; and
  41-21              (6)  the commissioner of the Texas Employment
  41-22  Commission representing labor.
  41-23        (b)  The governor is presiding officer of the board.
  41-24        (c)  If the speaker of the house of representatives is not
  41-25  permitted by the constitution to serve as a voting member of the
  41-26  board, the speaker serves as a nonvoting member.
  41-27        Sec. 15.04.  MEETINGS.  The council shall meet as often as
   42-1  necessary to perform its duties.
   42-2        Sec. 15.05.  DUTIES.  The council shall identify commercially
   42-3  available services currently being performed by state agencies and,
   42-4  if the council determines that these services may better be
   42-5  provided through competition with private commercial sources or
   42-6  other state agency service providers, require a state agency to
   42-7  engage in any process, including competitive bidding, developed by
   42-8  the council to provide the service in competition with private
   42-9  commercial sources or other state agency service providers.
  42-10        Sec. 15.06.  POWERS.  In performing its duties under this
  42-11  article, the council may:
  42-12              (1)  adopt rules governing any aspect of the council's
  42-13  duties or responsibilities;
  42-14              (2)  hold public hearings or conduct studies;
  42-15              (3)  consult with private commercial sources;
  42-16              (4)  require a state agency to conduct an agency
  42-17  in-house cost estimate, a management study, or any other hearing,
  42-18  study, review, or cost estimate concerning any aspect of an
  42-19  identified state service;
  42-20              (5)  develop and require for use by state agencies
  42-21  methods to accurately and fairly estimate and account for the cost
  42-22  of providing an identified state service;
  42-23              (6)  require that an identified state service be
  42-24  submitted to competitive bidding or another process that creates
  42-25  competition with private commercial sources;
  42-26              (7)  prescribe, in consultation with affected state
  42-27  agencies, the specifications and conditions of purchase procedures
   43-1  that must be followed by the commission and a state agency or a
   43-2  private commercial source engaged in competitive bidding to provide
   43-3  an identified state service;
   43-4              (8)  award a contract to a state agency currently
   43-5  providing the service, another state agency, a private commercial
   43-6  source, or any combination of those entities, if the bidder
   43-7  presents the best and most reasonable bid, which is not necessarily
   43-8  the lowest bid; and
   43-9              (9)  determine the terms and conditions of a contract
  43-10  for service or interagency contract to provide an identified state
  43-11  service or other commercially available service.
  43-12        Sec. 15.07.  COST COMPARISON AND CONTRACT CONSIDERATIONS.  In
  43-13  comparisons of the cost of providing a service the council must
  43-14  consider the cost of supervising the work of any private
  43-15  contractor.  All bids or contracts must include an analysis of
  43-16  health care benefits, retirement, and workers' compensation
  43-17  insurance for employees of the contractor which are reasonably
  43-18  comparable to those of the state.  The council must also consider
  43-19  the total cost to the agency of that agency's performing a service,
  43-20  such total cost to include all indirect costs related to that
  43-21  agency including costs of such agencies as the comptroller, the
  43-22  treasurer, the attorney general, and other such support agencies. 
  43-23        Sec. 15.08.  DUTIES OF AFFECTED STATE AGENCIES.  A state
  43-24  agency shall perform any activities required by the council in the
  43-25  performance of its duties or the exercise of its powers under this
  43-26  article.
  43-27        Sec. 15.09.  EXEMPTION.  Contracts made by the council and
   44-1  decisions regarding whether an agency shall engage in competitive
   44-2  bidding are exempt from all state laws regulating or limiting state
   44-3  purchasing and purchasing decisions.
   44-4        Sec. 15.10.  OPEN MEETINGS AND OPEN RECORDS LAWS.  The
   44-5  council is subject to the open meetings law, Chapter 271, Acts of
   44-6  the 60th Legislature, Regular Session, 1967 (Article 6252-17,
   44-7  Vernon's Texas Civil Statutes), and its subsequent amendments, and
   44-8  the open records law, Chapter 424, Acts of the 63rd Legislature,
   44-9  Regular Session, 1973 (Article 6252-17a, Vernon's Texas Civil
  44-10  Statutes), and its subsequent amendments.
  44-11        SECTION 42.  Section 2, Texas Public Finance Authority Act
  44-12  (Article 601d, Vernon's Texas Civil Statutes), is amended to read
  44-13  as follows:
  44-14        Sec. 2.  PURPOSE.  (a)  The purpose of this Act is to provide
  44-15  a method of financing:
  44-16              (1)  for the acquisition or construction of buildings
  44-17  in Travis County, Texas; and
  44-18              (2)  for the purchase or lease of equipment by state
  44-19  agencies.
  44-20        (b)  In this section, "state agency" has the meaning assigned
  44-21  by Section 1.02, State Purchasing and General Services Act (Article
  44-22  601b, Vernon's Texas Civil Statutes).
  44-23        SECTION 43.  Subsection (a), Section 9A, Texas Public Finance
  44-24  Authority Act (Article 601d, Vernon's Texas Civil Statutes), is
  44-25  amended to read as follows:
  44-26        (a)  The authority may issue and sell obligations for the
  44-27  financing of a lease or other agreement so long as the agreement
   45-1  concerns equipment that a state agency has purchased or leased or
   45-2  intends to purchase or lease.  The authority's power to issue
   45-3  obligations includes the power to issue and sell obligations for
   45-4  the financing of a package of agreements involving one or more
   45-5  state agencies.  In this subsection, "state agency" has the meaning
   45-6  assigned by Section 1.02, State Purchasing and General Services Act
   45-7  (Article 601b, Vernon's Texas Civil Statutes).
   45-8        SECTION 44.  Subsection (c), Section 24A, Texas Public
   45-9  Finance Authority Act (Article 601d, Vernon's Texas Civil
  45-10  Statutes), is amended to read as follows:
  45-11        (c)  Notwithstanding the limitations prescribed by Section 9
  45-12  of this Act relating to the location of buildings for which bonds
  45-13  may be issued, the authority may issue bonds under this Act to
  45-14  finance the renovation of West Building, G. J. Sutton State Office
  45-15  Complex in Bexar County, at an estimated cost of $1,375,000; the
  45-16  construction or purchase and renovation of a building or buildings
  45-17  by the commission <State Purchasing and General Services
  45-18  Commission> in Tarrant County, at an estimated cost of $10,000,000;
  45-19  <and> the construction or purchase and renovation of a building or
  45-20  buildings by the commission <State Purchasing and General Services
  45-21  Commission> in Harris County, at an estimated cost of $20,000,000;
  45-22  and the purchase and renovation of a building or buildings by the
  45-23  commission in McLennan County, at an estimated cost of $5,000,000.
  45-24  For purposes of this subsection regarding Tarrant and Harris
  45-25  counties, the commission <State Purchasing and General Services
  45-26  Commission> shall, prior to requesting the authority to issue
  45-27  bonds, prepare project analyses for the potential construction
   46-1  projects and subsequent thereto perform an alternative purchase
   46-2  analysis pursuant to the provisions of Section 5.34, State
   46-3  Purchasing and General Services Act (Article 601b, Vernon's Texas
   46-4  Civil Statutes).
   46-5        SECTION 45.  Section 27, Texas Public Finance Authority Act
   46-6  (Article 601d, Vernon's Texas Civil Statutes), is amended to read
   46-7  as follows:
   46-8        Sec. 27.  Purchase and Renovation of Texas Employment
   46-9  Commission Property.  (a)  The Texas Employment Commission shall
  46-10  sell to the commission office buildings and parking facilities in
  46-11  its possession in or near the Capitol Complex, and the commission
  46-12  shall purchase and renovate the buildings and parking facilities,
  46-13  at an estimated cost of $46,000,000.  The purchase and renovation
  46-14  is approved for financing in accordance with Section 9 of this Act
  46-15  and bonds may be issued to finance the purchase and renovation in
  46-16  accordance with Section 10 of this Act <a sales price that shall
  46-17  not exceed the maximum amount of funds authorized for the
  46-18  acquisition and renovation in Chapter 700, Acts of the 68th
  46-19  Legislature, Regular Session, 1983>.
  46-20        (b)  After the office buildings have been acquired, the
  46-21  commission may, from funds made available by the authority,
  46-22  renovate the facilities as necessary for occupancy in accordance
  46-23  with the allocation of space within the building made under
  46-24  Subsection (c) of this section <by other state agencies>.  In
  46-25  negotiating the price for the Texas Employment Commission
  46-26  facilities, the commission shall consider the cost to the Texas
  46-27  Employment Commission of alternative space outside the Capitol
   47-1  Complex.  The commission shall also consider the price in the
   47-2  context of the reasonable rates that might otherwise be paid by
   47-3  prospective occupying state agencies for rent in comparable space.
   47-4        (c)  The space in the office buildings and parking facilities
   47-5  is allocated to the legislature and legislative agencies for their
   47-6  use.  The presiding officers of each house of the legislature shall
   47-7  jointly decide the allocation of the space within the buildings and
   47-8  facilities.
   47-9        SECTION 46.  Section 4, Chapter 1203, Acts of the 71st
  47-10  Legislature, Regular Session, 1989 (Article 601d-3, Vernon's Texas
  47-11  Civil Statutes), is amended by adding Subsections (c) and (d) to
  47-12  read as follows:
  47-13        (c)  The board may issue and sell revenue bonds in one or
  47-14  more series in the name of the authority to finance the renovation
  47-15  and furnishing of facilities for the Texas School for the Deaf.
  47-16  The estimated cost of this renovations and furnishings project is
  47-17  $500,000.
  47-18        (d)  The board may issue and sell revenue bonds in one or
  47-19  more series in the name of the authority to finance the renovation
  47-20  and furnishing of facilities for the Texas School for the Blind and
  47-21  Visually Impaired.  The estimated cost of this renovations and
  47-22  furnishings project is $600,000.
  47-23        SECTION 47.  Section 5(b), Chapter 1203, Acts of the 71st
  47-24  Legislature, Regular Session, 1989 (Article 601d-3, Vernon's Texas
  47-25  Civil Statutes), is amended to read as follows:
  47-26        (b)  Once the funds are deposited and the comptroller has
  47-27  certified that the funds are available, and after transfer of any
   48-1  reserve funds or capitalized interest certified to be reasonably
   48-2  required by the authority and payment of the costs of issuance of
   48-3  the bonds based on a statement by the authority that specifies
   48-4  those costs, the commission shall begin projects under this Act.
   48-5  The<, and the> funds from the issuance authorized under Section
   48-6  4(a) of this Act are appropriated to the commission for that
   48-7  purpose.  The funds from the issuance authorized under Section 4(c)
   48-8  or (d) of this Act may be appropriated by the legislature.  The
   48-9  appropriated funds may be used for those purposes and those
  48-10  projects certified and adopted by rule of the Texas School for the
  48-11  Deaf or the Texas School for the Blind and Visually Impaired, as
  48-12  appropriate, consistent with this Act.
  48-13        SECTION 48.  Section 8, Chapter 1203, Acts of the 71st
  48-14  Legislature, Regular Session, 1989 (Article 601d-3, Vernon's Texas
  48-15  Civil Statutes), is amended to read as follows:
  48-16        Sec. 8.  Agreements; payments.  The Texas School for the
  48-17  Deaf, the Texas School for the Blind and Visually Impaired, and the
  48-18  commission, as appropriate, may enter into lease agreements or
  48-19  execute deeds or other agreements under this Act as necessary to
  48-20  carry out the purposes of this Act.  The commission shall spend
  48-21  funds appropriated by the legislature or received from any other
  48-22  available source for the purpose of making lease payments under
  48-23  this Act.  The commission shall include in its biennial
  48-24  appropriation request an amount sufficient to pay the principal of
  48-25  and interest on outstanding bonds issued under this Act.
  48-26        SECTION 49.  Chapter 417, Government Code, is amended by
  48-27  adding Section 417.0081 to read as follows:
   49-1        Sec. 417.0081.  INSPECTION OF CERTAIN STATE-OWNED BUILDINGS.
   49-2  The state fire marshal, at the commission's direction, shall
   49-3  periodically inspect public buildings under the charge and control
   49-4  of the General Services Commission and shall take any action
   49-5  authorized by the commission to protect the buildings and their
   49-6  occupants from an existing or threatened fire hazard.
   49-7        SECTION 50.  Section 1(3), Chapter 454, Acts of the 65th
   49-8  Legislature, Regular Session, 1977 (Article 6252-11c, Vernon's
   49-9  Texas Civil Statutes), is amended to read as follows:
  49-10              (3)  "State agency" has the meaning assigned by Section
  49-11  1.02, State Purchasing and General Services Act (Article 601b,
  49-12  Vernon's Texas Civil Statutes) <means a state department,
  49-13  commission, board, office, institution, facility, or other agency
  49-14  the jurisdiction of which is not limited to a geographical portion
  49-15  of the state.  The term includes a university system and an
  49-16  institution of higher education as defined in Section 61.003,
  49-17  Education Code.  The term does not include a public junior
  49-18  college>.
  49-19        SECTION 51.  Section 2(c), Article 9102, Revised Statutes, is
  49-20  amended to read as follows:
  49-21        (c)  These standards and specifications shall be adhered to
  49-22  in all buildings leased or rented in whole or in part for use by a
  49-23  <the> state agency under any lease or rental agreement entered into
  49-24  on or after January 1, 1972.  To such extent as is not
  49-25  contraindicated by federal law or beyond the power of the state's
  49-26  regulation, these standards shall also apply to buildings or
  49-27  facilities leased or rented for use by a <the> state agency through
   50-1  partial or total use of federal funds.  Facilities which are the
   50-2  subject of lease or rental agreements on January 1, 1972, will not
   50-3  be required to meet standards and specifications for the term of
   50-4  the existing lease or rental agreement but must be brought into
   50-5  compliance before a lease or rental agreement is renewed.  Where it
   50-6  is determined by the governmental department, agency, or unit
   50-7  concerned that full compliance with any particular standard is
   50-8  impractical, the reasons for such determination shall be set forth
   50-9  in written form by those making the determination and forwarded to
  50-10  the department.  If it is determined that full compliance is not
  50-11  practical, there shall be substantial compliance as determined by
  50-12  the department with the standard or specification to the maximum
  50-13  extent practical, and the file system maintained by the department
  50-14  shall include the written record of the determination that it is
  50-15  impractical to comply fully with a particular standard or
  50-16  specification and shall also set forth the extent to which an
  50-17  attempt will be made to comply substantially with the standard or
  50-18  specification.  In this subsection, "state agency" has the meaning
  50-19  assigned by Section 1.02, State Purchasing and General Services Act
  50-20  (Article 601b, Vernon's Texas Civil Statutes).
  50-21        SECTION 52.  Subchapter A, Chapter 419, Government Code, is
  50-22  amended by adding Section 419.0081 to read as follows:
  50-23        Sec. 419.0081.  PROTECTION OF CERTAIN STATE-OWNED BUILDINGS
  50-24  AGAINST FIRE HAZARDS.  (a)  The commission shall take any action
  50-25  necessary to protect a public building under the charge and control
  50-26  of the General Services Commission, and the building's occupants,
  50-27  against an existing or threatened fire hazard.
   51-1        (b)  The commission and the General Services Commission shall
   51-2  make and each adopt by rule a memorandum of understanding that
   51-3  coordinates the agency's duties under this section.
   51-4        SECTION 53.  Section 771.002, Government Code, is amended to
   51-5  read as follows:
   51-6        Sec. 771.002.  Definitions.  In this chapter:
   51-7              (1)  "Agency" includes:
   51-8                    (A)  a department, board, bureau, commission,
   51-9  court, office, authority, council, or institution;
  51-10                    (B)  a university, college, or any service or
  51-11  part of a state institution of higher education; and
  51-12                    (C)  any statewide job or employment training
  51-13  program for disadvantaged youth that is substantially financed by
  51-14  federal funds and that was created by executive order not later
  51-15  than December 30, 1986.
  51-16              (2)  <"Commission" means the State Purchasing and
  51-17  General Services Commission.>
  51-18              <(3)>  "Resources" means materials and<,> equipment<,
  51-19  and supplies>.
  51-20              (3) <(4)>  "Services" means special or technical
  51-21  services, including the services of employees.
  51-22        SECTION 54.  Section 771.004(a), Government Code, is amended
  51-23  to read as follows:
  51-24        (a)  Before a state agency may provide <furnish> or receive a
  51-25  service or resource under this chapter, the agency must have
  51-26  entered into a written agreement or contract that has been approved
  51-27  by the administrator of each agency that is a party to the
   52-1  agreement or contract <and by the commission>.
   52-2        SECTION 55.  Section 771.004, Government Code, is amended by
   52-3  amending Subsection (c) and by adding Subsection (d) to read as
   52-4  follows:
   52-5        (c)  A written agreement or contract is <and advance approval
   52-6  by the commission are> not required:
   52-7              (1)  in an emergency for the defense or safety of the
   52-8  civil population or in the planning and preparation for those
   52-9  emergencies;
  52-10              (2)  in cooperative efforts, proposed by the governor,
  52-11  for the economic development of the state; or
  52-12              (3)  in a situation in which the amount involved is
  52-13  less than $50,000 <$2,500>.
  52-14        (d)  In an interagency exchange that is exempt from the
  52-15  requirements of a written agreement or contract, the agencies
  52-16  involved shall document the exchange through informal letters of
  52-17  agreement or memoranda.
  52-18        SECTION 56.  Section 771.006, Government Code, is amended to
  52-19  read as follows:
  52-20        Sec. 771.006.  <Equipment> Purchases and Subcontracts of
  52-21  Services and Resources.  A contract under this chapter may
  52-22  authorize an <permit a furnishing> agency providing services and
  52-23  resources to subcontract and purchase the services and resources
  52-24  <equipment to the extent considered appropriate by the commission>.
  52-25        SECTION 57.  Section 9A(b), Information Resources Management
  52-26  Act (Article 4413(32j), Revised Statutes), is amended to read as
  52-27  follows:
   53-1        (b)  The department, comptroller, and <State Purchasing and>
   53-2  General Services Commission shall develop a statewide
   53-3  telecommunications operating plan for all agencies that implements
   53-4  a statewide network and includes technical specifications that are
   53-5  binding on the managing and operating agency.  A representative of
   53-6  the Central Education Agency and a representative of the Texas
   53-7  Higher Education Coordinating Board shall review and comment on the
   53-8  operating plan as part of the representatives' duties under Section
   53-9  10.02(g), State Purchasing and General Services Act (Article 601b,
  53-10  Vernon's Texas Civil Statutes).
  53-11        SECTION 58.  On the effective date of this Act, all powers,
  53-12  duties, and obligations relating to the protection of public
  53-13  buildings under the charge and control of the General Services
  53-14  Commission, and the buildings' occupants, against existing or
  53-15  threatened fire hazards are transferred from the General Services
  53-16  Commission to the Texas Commission on Fire Protection as provided
  53-17  by this Act.  All property in the custody of the General Services
  53-18  Commission and the original or a copy of any record that relates to
  53-19  fire protection activity in the buildings are transferred to the
  53-20  Texas Commission on Fire Protection.  All appropriations to the
  53-21  General Services Commission for fire protection activity in the
  53-22  buildings and all employees of the General Services Commission
  53-23  employed primarily to engage in fire protection activity in the
  53-24  buildings are transferred to the Texas Commission on Fire
  53-25  Protection.  All investigations and all filed reports or complaints
  53-26  relating to fire protection in the buildings are transferred
  53-27  without change in status from the General Services Commission to
   54-1  the Texas Commission on Fire Protection.  All rules, standards, and
   54-2  specifications of the General Services Commission relating to fire
   54-3  protection in the buildings remain in effect as rules, standards,
   54-4  and specifications of the Texas Commission on Fire Protection
   54-5  unless superseded by proper authority of that commission.
   54-6        SECTION 59.  The General Services Commission shall establish
   54-7  the small contractor participation assistance program required by
   54-8  Section 5.37, State Purchasing and General Services Act (Article
   54-9  601b, Vernon's Texas Civil Statutes), as added by this Act, not
  54-10  later than January 1, 1994.
  54-11        SECTION 60.  The General Services Commission shall complete
  54-12  implementation of the changes in law made by Section 18 of this Act
  54-13  relating to the use of a centralized master bidders list by state
  54-14  agencies not later than September 1, 1995.  During the transition
  54-15  period provided by this section, affected state agencies shall
  54-16  provide the General Services Commission with all records and
  54-17  information in the custody of the agencies that relate to the
  54-18  commission's preparation of the centralized master bidders list.
  54-19        SECTION 61.  (a)  The General Services Commission shall
  54-20  appoint the new members added to the commission's construction
  54-21  contract review committee by Section 28 of this Act as soon as
  54-22  practicable after the effective date of this Act.  The
  54-23  representatives of each society or association that has had its
  54-24  representation on the committee reduced from two members to one
  54-25  member shall determine by agreement or by lot which representative
  54-26  will remain on the committee.
  54-27        (b)  Until all removals and new appointments of members of
   55-1  the commission's construction contract review committee have taken
   55-2  place, a quorum of the committee is a majority of the number of
   55-3  members serving at the time of a meeting.
   55-4        SECTION 62.  On the effective date of this Act, all powers,
   55-5  duties, and obligations of the Office of Small Business Assistance
   55-6  of the Texas Department of Commerce under Section 1.03, State
   55-7  Purchasing and General Services Act (Article 601b, Vernon's Texas
   55-8  Civil Statutes), are transferred to the General Services Commission
   55-9  as prescribed by the changes to Section 1.03 made by this Act.  All
  55-10  records and property in the custody of the office that relate to a
  55-11  function transferred by this Act are transferred to the commission.
  55-12  All appropriations to the office for functions transferred by this
  55-13  Act and all employees of the office employed primarily to engage in
  55-14  those functions are transferred to the commission.  An application
  55-15  for certification as a historically underutilized business is
  55-16  transferred without change in status from the office to the
  55-17  commission.  All rules, standards, and specifications of the office
  55-18  relating to the functions transferred by this Act remain in effect
  55-19  as rules, standards, and specifications of the commission unless
  55-20  superseded by proper authority of the commission.  All references
  55-21  in a transferred application, rule, standard, or specification to
  55-22  disadvantaged businesses is considered to be a reference to
  55-23  historically underutilized businesses.  A prior certification made
  55-24  by the office that a business is a disadvantaged business is
  55-25  considered to be a certification that a business is a historically
  55-26  underutilized business.
  55-27        SECTION 63.  (a)  The General Services Commission may,
   56-1  subject to Subsection (e) of this section, purchase and renovate a
   56-2  building or buildings and the related grounds and improvements in
   56-3  McLennan County at an estimated cost of $5 million to meet office
   56-4  space needs for one or more state agencies in the county.  The
   56-5  commission shall finance the purchase and renovation through bonds
   56-6  issued by the Texas Public Finance Authority.
   56-7        (b)  The proceeds of the bonds issued and sold by the Texas
   56-8  Public Finance Authority to finance the purchase and renovation are
   56-9  appropriated to the General Services Commission for the two-year
  56-10  period beginning on the date that the comptroller certifies that
  56-11  the proceeds are available.
  56-12        (c)  Any person from whom real property or any existing
  56-13  buildings or other improvements are purchased under this section
  56-14  shall provide to the General Services Commission the name and the
  56-15  last known address of each person who:
  56-16              (1)  owns record legal title to the property,
  56-17  buildings, or other improvements; or
  56-18              (2)  owns a beneficial interest in the property,
  56-19  buildings, or other improvements through a trust, nominee, agent,
  56-20  or any other legal entity.
  56-21        (d)  When a state agency vacates leased space to move into
  56-22  space in a building purchased under this section or when the leased
  56-23  space itself is purchased under this section, the money
  56-24  specifically appropriated by the legislature or the money available
  56-25  to and budgeted by the agency for lease payments for the leased
  56-26  space for the remainder of the state fiscal biennium ending August
  56-27  31, 1993, or for the state fiscal biennium ending August 31, 1995,
   57-1  may be used only for rental or installment payments for the
   57-2  purchased space under Section 12(b), Texas Public Finance Authority
   57-3  Act (Article 601d, Vernon's Texas Civil Statutes), and for the
   57-4  payment of operating expenses for the purchased space that are
   57-5  incurred by the General Services Commission.  The comptroller may
   57-6  adopt rules for the administration of this subsection.
   57-7        (e)  Before the General Services Commission may make the
   57-8  purchase authorized by Subsection (a) of this section, and before
   57-9  the commission may request the Texas Public Finance Authority to
  57-10  issue bonds to finance the purchase and subsequent renovation, the
  57-11  commission must determine that the sum of the rental or installment
  57-12  payments for the purchased space under Section 12(b), Texas Public
  57-13  Finance Authority Act (Article 601d, Vernon's Texas Civil
  57-14  Statutes), plus the renovation and other operating expenses that
  57-15  will be incurred for the purchased space will not exceed, over the
  57-16  term of the bonded indebtedness, the amount of the lease payments
  57-17  that the state would otherwise have to make to meet the space needs
  57-18  that the purchase will satisfy.
  57-19        SECTION 64.  The change in law made by Section 5.26(c), State
  57-20  Purchasing and General Services Act (Article 601b, Vernon's Texas
  57-21  Civil Statutes), as added by this Act, applies only to a breach of
  57-22  contract occurring on or after the effective date of this Act,
  57-23  without regard to whether the contract was entered into before, on,
  57-24  or after that date.  A breach of contract occurring before the
  57-25  effective date of this Act is governed by the law in effect at the
  57-26  time the breach of contract occurred, and that law is continued in
  57-27  effect for that purpose.
   58-1        SECTION 65.  (a)  The progress of the implementation of the
   58-2  historically underutilized business goals shall be monitored by a
   58-3  joint committee appointed by the lieutenant governor and the
   58-4  speaker of the house of representatives.  The committee shall be
   58-5  composed of five members of the senate and five members of the
   58-6  house of representatives.  The committee shall make recommendations
   58-7  for any necessary legislative action or remedies for the next
   58-8  regular session of the legislature.
   58-9        (b)  In order to monitor the implementation of this section,
  58-10  the committee may review the records of state agencies related to
  58-11  procurement practices.  Each state agency shall cooperate fully
  58-12  with the committee and shall submit information and reports to the
  58-13  committee as requested by the committee.
  58-14        (c)  Not later than June 1, 1994, the comptroller shall
  58-15  complete a disparity study regarding state contracting that meets
  58-16  the requirements of City of Richmond v. J. A. Croson Co., 109 S.Ct.
  58-17  706 (1989).  Each state agency shall report as necessary to the
  58-18  comptroller to assist in preparation of the study.  The comptroller
  58-19  shall distribute the study to all state agencies and to the
  58-20  legislature.  The General Services Commission shall, as soon as
  58-21  practicable, adopt rules to take effect September 1, 1994, based on
  58-22  the disparity study.
  58-23        SECTION 66.  (a)  In addition to the duties prescribed in
  58-24  Article 15, State Purchasing and General Services Act (Article
  58-25  601b, Vernon's Texas Civil Statutes), as added by this Act, the
  58-26  State Council on Competitive Government shall conduct a study by
  58-27  December 1, 1993, or as soon as practicable after that date
   59-1  evaluating services being performed by or for state agencies.
   59-2  Services involving information technology, information facilities
   59-3  management, collocation of field offices, mail, print services,
   59-4  travel management, telecommunications, and fleet management shall
   59-5  be evaluated to identify at least $3 million in cost savings and
   59-6  enhanced revenue resulting from competition with private commercial
   59-7  sources or other state agency providers.  Services to be evaluated
   59-8  shall also include the state's procurement practices to the extent
   59-9  the practices have been evaluated in any report on procurement
  59-10  practices in Texas state government.
  59-11        (b)  The council shall certify the estimate of potential
  59-12  savings or enhanced revenue amounts and forward the information to
  59-13  the Legislative Budget Board.  After evaluating the information,
  59-14  the Legislative Budget Board shall identify general revenue fund
  59-15  appropriations of at least $3 million to be reduced as a result of
  59-16  cost savings or enhanced revenue measures and shall forward that
  59-17  information to the comptroller.  The Legislative Budget Board may
  59-18  request the council to identify additional cost savings or enhanced
  59-19  revenue measures to accomplish the $3 million reduction.
  59-20        (c)  The comptroller shall reduce appropriations to the
  59-21  various agencies by the amounts approved by the Legislative Budget
  59-22  Board and transfer those amounts to the general revenue fund.  Cost
  59-23  savings and enhanced revenues realized as a result of the study
  59-24  performed may be considered a part of the savings, spending
  59-25  reductions, or revenue enhancement plans required of all agencies
  59-26  by the General Appropriations Act for the 1994-1995 biennium.
  59-27        (d)  This section expires on September 1, 1995.
   60-1        SECTION 67.  (a)  At the time that the comptroller vacates
   60-2  the comptroller's training center, located at 125 Lehmann Drive in
   60-3  Kerrville, possession, charge, and control of the building,
   60-4  property, and its grounds are transferred and committed to the
   60-5  Railroad Commission of Texas for the benefit of the State of Texas.
   60-6  The Railroad Commission may use the center for its purposes and may
   60-7  make the center available to other entities.
   60-8        (b)  The comptroller shall give reasonable notice to the
   60-9  Railroad Commission and to the General Services Commission of the
  60-10  date on which the comptroller intends to vacate the center, and on
  60-11  the date that the comptroller vacates the center the comptroller
  60-12  shall inform the two commissions of that fact.  The comptroller,
  60-13  the General Services Commission, and any other appropriate state
  60-14  agency or officer shall take any action necessary to transfer
  60-15  charge and control of the center to the Railroad Commission as
  60-16  required by this Act.
  60-17        SECTION 68.  (a)  The following laws are repealed:
  60-18              (1)  Section 771.005, Government Code;
  60-19              (2)  Section 771.009, Government Code; and
  60-20              (3)  Article 13, State Purchasing and General Services
  60-21  Act (Article 601b, Vernon's Texas Civil Statutes).
  60-22        (b)  The following law is repealed:
  60-23              (1)  Section 771.008(d), Government Code; or
  60-24              (2)  Section 6(d), The Interagency Cooperation Act
  60-25  (Article 4413(32), Vernon's Texas Civil Statutes), as added by
  60-26  Section 30, Chapter 641, Acts of the 72nd Legislature, Regular
  60-27  Session, 1991.
   61-1        (c)  Subsection (b)(1) of this section takes effect only if a
   61-2  bill relating to nonsubstantive additions to and corrections in
   61-3  enacted codes, including the nonsubstantive codification of various
   61-4  laws omitted from enacted codes, and to conforming codifications
   61-5  enacted by the 72nd Legislature to other acts of that legislature,
   61-6  is enacted by the 73rd Legislature and becomes law.  Subsection
   61-7  (b)(2) of this section takes effect only if the bill described by
   61-8  this subsection does not become law.
   61-9        SECTION 69.  This Act takes effect September 1, 1993.
  61-10        SECTION 70.  The importance of this legislation and the
  61-11  crowded condition of the calendars in both houses create an
  61-12  emergency and an imperative public necessity that the
  61-13  constitutional rule requiring bills to be read on three several
  61-14  days in each house be suspended, and this rule is hereby suspended.