1-1  By:  Black (Senate Sponsor - Harris of Dallas)        H.B. No. 2626
    1-2        (In the Senate - Received from the House April 29, 1993;
    1-3  April 30, 1993, read first time and referred to Committee on State
    1-4  Affairs; May 7, 1993, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 8, Nays 0; May 7, 1993,
    1-6  sent to printer.)
    1-7                            COMMITTEE VOTE
    1-8                          Yea     Nay      PNV      Absent 
    1-9        Harris of Dallas   x                               
   1-10        Rosson             x                               
   1-11        Carriker                                       x   
   1-12        Henderson                                      x   
   1-13        Leedom             x                               
   1-14        Lucio              x                               
   1-15        Luna                                           x   
   1-16        Nelson             x                               
   1-17        Patterson          x                               
   1-18        Shelley                                        x   
   1-19        Sibley             x                               
   1-20        West               x                               
   1-21        Whitmire                                       x   
   1-22  COMMITTEE SUBSTITUTE FOR H.B. No. 2626        By:  Harris of Dallas
   1-23                         A BILL TO BE ENTITLED
   1-24                                AN ACT
   1-25  relating to the continuation and operation of the General Services
   1-26  Commission and to the transfer of certain functions to or from the
   1-27  General Services Commission, the comptroller of public accounts,
   1-28  the Texas Commission on Fire Protection, the Texas Department of
   1-29  Commerce, and a newly created State Council on Competitive
   1-30  Government and to the financing of certain projects by the
   1-31  commission through the issuance of revenue bonds.
   1-32        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-33        SECTION 1.  Section 1.03, State Purchasing and General
   1-34  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   1-35  amended to read as follows:
   1-36        Sec. 1.03.  Disadvantaged businesses.  (a)  The commission
   1-37  <Office of Small Business Assistance of the Texas Department of
   1-38  Commerce> shall certify businesses that are disadvantaged
   1-39  businesses.  As part of its certification procedures, the
   1-40  commission <office> may approve a municipal program that certifies
   1-41  disadvantaged businesses under substantially the same definition
   1-42  prescribed by Section 1.02(3) of this Act and may certify
   1-43  businesses certified by the municipality as disadvantaged
   1-44  businesses under this Act.
   1-45        (b)  The commission <office> shall compile a directory of
   1-46  businesses certified as disadvantaged businesses under Subsection
   1-47  (a) of this section.  The commission <office> shall update the
   1-48  directory at least semiannually and provide a copy of the directory
   1-49  to <the commission and> each state agency semiannually.  The
   1-50  commission shall provide access to the directory either
   1-51  electronically or in another format, depending on the needs of each
   1-52  state agency.  On request, the commission shall make the directory
   1-53  available to local governments and the public.  The commission and
   1-54  state agencies shall use the directory in determining awards of
   1-55  state purchasing and public works contracts.
   1-56        (c)(1)  In this subsection:
   1-57                    (A)  "Total expenditures" means the sum total of
   1-58  all payments made for purchases and contracts made by each agency.
   1-59                    (B)  "Adjusted total expenditures" means the sum
   1-60  total of purchases, contracts, and payments of each state agency
   1-61  with object code exceptions defined by the comptroller.
   1-62                    (C)  "Delegated purchases" means those purchasing
   1-63  functions delegated to a state agency by the commission.
   1-64                    (D)  "Department" means the Texas Department of
   1-65  Commerce.
   1-66                    (E)  "Historically underutilized businesses" has
   1-67  the meaning assigned to that term by the General Appropriations
   1-68  Act.
    2-1                    (F)  "State agency" means any department,
    2-2  commission, board, office, institution, or other agency in the
    2-3  executive branch of state government.
    2-4              (2)(A)  The comptroller shall submit to the commission
    2-5  each March and September a report reflecting the total number and
    2-6  adjusted total expenditures of purchases, contracts, and payments
    2-7  each state agency has made during the reporting period.  Each state
    2-8  agency shall submit to the commission each March and September a
    2-9  report reflecting the total number and adjusted total expenditures
   2-10  of purchases, contracts, and payments from nontreasury funds and
   2-11  subcontracting and supplier contracts that the state agency has
   2-12  made with historically underutilized businesses.  Each agency shall
   2-13  include with its report a list of businesses identification numbers
   2-14  and object codes contract amount.  The report shall include all
   2-15  contracts, purchases, and payments made by the state agency.  Each
   2-16  state agency participating in a consortium formed under Subdivision
   2-17  (5), Subsection (a) of Section 3.01 of this Act shall include with
   2-18  the report a separate list of the total number and adjusted total
   2-19  expenditures of purchases from, contracts with, and payments to
   2-20  historically underutilized businesses the agency has made through
   2-21  the consortium during the reporting period.
   2-22                    (B)  It is the intent of this measure that
   2-23  reports of HUB purchasing and contracts shall form a record of each
   2-24  agency's purchases in which the agency selected the vendor.  If the
   2-25  vendor was selected by the commission as part of its state contract
   2-26  program, the purchase shall be reflected on the commission's report
   2-27  of its own purchases except in those cases where an agency selects
   2-28  a sole source vendor under the provisions of Section 3.09 of the
   2-29  Purchasing Code.  In the case of 3.09 purchases, these vendor
   2-30  selections shall remain part of the record of the agency selecting
   2-31  the vendor, not the commission.
   2-32                    (C)  The commission shall compare the
   2-33  historically underutilized businesses list from the comptroller's
   2-34  and each state agency's report filed pursuant to this section with
   2-35  the list of historically underutilized businesses certified by the
   2-36  commission and shall categorize each state agency list by the
   2-37  gender and ethnicity of each historically underutilized business
   2-38  according to the list of historically underutilized businesses
   2-39  certified by the commission.  The commission shall compile,
   2-40  analyze, and consolidate the reports and submit a report based on
   2-41  the final analysis to the presiding officer of each house of the
   2-42  legislature and the members of the legislature and to each state
   2-43  agency on April 1 and October 1 of each year.
   2-44              (3)(A)  Each state agency shall maintain continuously
   2-45  the following:
   2-46                          (i)  a list of the number of delegated
   2-47  purchases made by the state agency during the current fiscal year
   2-48  from historically underutilized businesses;
   2-49                          (ii)  the percentage relationship that the
   2-50  total number of historically underutilized business purchases,
   2-51  contracts by the state agency, and subcontracts made by contractors
   2-52  and by the state agency during the current fiscal year bears to the
   2-53  total number of delegated purchases made by the state agency;
   2-54                          (iii)  the total expenditures of the state
   2-55  agency with historically underutilized businesses; and
   2-56                          (iv)  a list of adjusted total expenditures
   2-57  made monthly by each office within the state agency with
   2-58  historically underutilized businesses during the current fiscal
   2-59  year.
   2-60                    (B)  The commission, department, and comptroller
   2-61  shall classify these and any other expenditures not included in the
   2-62  reports required by this subsection in a manner that shows the
   2-63  relative level of opportunity offered historically underutilized
   2-64  business vendors by the sector or class of commission expenditures.
   2-65                    (C)  The commission, department, and comptroller
   2-66  shall seek the advice of the governor, the legislature, and other
   2-67  state agencies in prioritizing business sectors and object or
   2-68  expenditure codes to pursue identification and development of
   2-69  future historically underutilized businesses' business
   2-70  opportunities.
    3-1              (4)  The commission may adopt rules to implement this
    3-2  subsection.    <The commission and each state agency shall report
    3-3  to the office the total number and dollar amount of contracts
    3-4  awarded to disadvantaged businesses.  These reports shall be made
    3-5  each January and July and shall report on the previous six-month
    3-6  period.  The office shall compile and analyze the reports and
    3-7  submit a report based on the analysis to the presiding officer of
    3-8  each house of the legislature each February.>
    3-9        (d)  The commission shall offer assistance and training to
   3-10  disadvantaged businesses regarding state procurement procedures.
   3-11  The commission shall advise disadvantaged businesses of the
   3-12  availability of state contracts and advise disadvantaged businesses
   3-13  to enter the businesses' names on the state's bid list.
   3-14        SECTION 2.  Section 2.02, State Purchasing and General
   3-15  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   3-16  amended to read as follows:
   3-17        Sec. 2.02.  Membership.  The commission is composed of six
   3-18  members appointed by the governor with the advice and consent of
   3-19  the senate.  All members must be representatives of the general
   3-20  public.  Appointments to the commission shall be made without
   3-21  regard to the race, color, disability <handicap>, sex, religion,
   3-22  age, or national origin of the appointees.  In making appointments
   3-23  under this section, the governor shall attempt to appoint members
   3-24  of different minority groups, including females, African-Americans,
   3-25  Hispanic-Americans, Native Americans, and Asian-Americans.  A
   3-26  person is not eligible for appointment if the person or the
   3-27  person's spouse:
   3-28              (1)  is employed by or participates in the management
   3-29  of a business entity or other organization that contracts with the
   3-30  commission;
   3-31              (2)  owns or controls, directly or indirectly, more
   3-32  than a 10 percent interest in a business entity or other
   3-33  organization that contracts with the state; or
   3-34              (3)  uses or receives a substantial amount of tangible
   3-35  goods, services, or funds from the commission, other than
   3-36  compensation or reimbursement authorized by law for commission
   3-37  membership, attendance, or expenses.
   3-38        SECTION 3.  Section 2.06(i), State Purchasing and General
   3-39  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   3-40  amended to read as follows:
   3-41        (i)  The executive director or the executive director's
   3-42  designee shall prepare and maintain a written policy statement to
   3-43  assure implementation of a program of equal employment opportunity
   3-44  under which all personnel transactions are made without regard to
   3-45  race, color, disability <handicap>, sex, religion, age, or national
   3-46  origin.  The policy statement must include:
   3-47              (1)  personnel policies, including policies relating to
   3-48  recruitment, evaluation, selection, appointment, training, and
   3-49  promotion of personnel, that are in compliance with requirements of
   3-50  the Commission on Human Rights Act (Article 5221k, Vernon's Texas
   3-51  Civil Statutes), and its subsequent amendments;
   3-52              (2)  a comprehensive analysis of the commission work
   3-53  force that meets federal and state guidelines;
   3-54              (3)  procedures by which a determination can be made of
   3-55  significant underutilization in the commission work force of all
   3-56  persons for whom federal or state guidelines encourage a more
   3-57  equitable balance; and
   3-58              (4)  reasonable methods to address appropriately those
   3-59  areas of significant underutilization.
   3-60        SECTION 4.  Section 2.06(j), State Purchasing and General
   3-61  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   3-62  amended to read as follows:
   3-63        (j)  A policy statement prepared under Subsection (i) of this
   3-64  section must cover an annual period, be updated at least annually,
   3-65  be reviewed annually by the Commission on Human Rights for
   3-66  compliance with Subsection (i)(1) of this section, and be filed
   3-67  with the governor's office.
   3-68        SECTION 5.  Section 2.07, State Purchasing and General
   3-69  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   3-70  amended to read as follows:
    4-1        Sec. 2.07.  Application of Sunset Act.  The commission is
    4-2  subject to Chapter 325, Government Code (Texas Sunset Act).  Unless
    4-3  continued in existence as provided by that chapter, the commission
    4-4  is abolished and this Act expires September 1, 2001 <1993>.
    4-5        SECTION 6.  Section 2.10(c), State Purchasing and General
    4-6  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
    4-7  amended to read as follows:
    4-8        (c)  The commission shall prepare and maintain a written plan
    4-9  that describes how a person who does not speak English <or who has
   4-10  a physical, mental, or developmental disability> can be provided
   4-11  reasonable access to the commission's programs.  The commission
   4-12  shall also comply with federal and state laws for program and
   4-13  facility accessibility.
   4-14        SECTION 7.  Section 3.022, State Purchasing and General
   4-15  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   4-16  amended by adding Subsection (h) to read as follows:
   4-17        (h)  A medical or dental unit as that term is defined in
   4-18  Section 61.003, Education Code, may purchase the following types of
   4-19  medical equipment by the use of competitive sealed proposals if it
   4-20  follows commission rules and procedures provided by this section
   4-21  regarding the use of competitive sealed proposals and submits to
   4-22  the commission a written finding that competitive sealed bidding or
   4-23  informal competitive bidding is not practical or is disadvantageous
   4-24  to the state for the proposed acquisition:
   4-25              (1)  prototypical medical equipment not yet available
   4-26  on the market;
   4-27              (2)  medical equipment so new to the market that its
   4-28  benefits are not fully known; or
   4-29              (3)  major medical equipment that is so technically
   4-30  complex that development of specifications for competitive bidding
   4-31  is not feasible.
   4-32        SECTION 8.  Article 3, State Purchasing and General Services
   4-33  Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
   4-34  adding Section 3.0221 to  read as follows:
   4-35        Sec. 3.0221.  COMPETITIVE SEALED PROPOSALS; ACQUISITION OF
   4-36  CERTAIN SUPPLIES, MATERIALS, EQUIPMENT, AND ROUTINE SERVICES.
   4-37  (a)  The commission may follow a procedure using competitive sealed
   4-38  proposals to acquire:
   4-39              (1)  supplies, materials, or equipment if the cost of
   4-40  acquisition is $1 million or more; or
   4-41              (2)  routine services if the cost of acquisition is
   4-42  $100,000 or more.
   4-43        (b)  Only the commission may acquire goods or services using
   4-44  competitive sealed proposals under this section.  The commission
   4-45  may not delegate this authority to a state agency.
   4-46        (c)  To acquire goods or services using competitive sealed
   4-47  proposals under this section, the commission must first determine
   4-48  in an open meeting that competitive sealed bidding or informal
   4-49  competitive bidding is not practical or is disadvantageous to the
   4-50  state.
   4-51        (d)  The commission shall solicit proposals by a request for
   4-52  proposals.  The commission shall give public notice of a request
   4-53  for proposals in the manner provided for requests for bids under
   4-54  Section 3.12 of this article.
   4-55        (e)  The commission shall consult with appropriate personnel
   4-56  of a requisitioning agency to develop specifications for a request
   4-57  for competitive sealed proposals under this section.
   4-58        (f)  The commission shall open each proposal in a manner that
   4-59  does not disclose the contents of the proposal during the process
   4-60  of negotiating with competing offerors.  The commission shall file
   4-61  each proposal in a register of proposals, which shall be open for
   4-62  public inspection after a contract is awarded unless the register
   4-63  contains information that is excepted from disclosure as an open
   4-64  record under Section 3, Chapter 424, Acts of the 63rd Legislature,
   4-65  Regular Session, 1973 (Article 6252-17a, Vernon's Texas Civil
   4-66  Statutes), and its subsequent amendments.
   4-67        (g)  As provided in a request for proposals and under rules
   4-68  adopted by the commission, the commission may discuss acceptable or
   4-69  potentially acceptable proposals with offerors to assess an
   4-70  offeror's ability to meet the solicitation requirements.  After the
    5-1  submission of a proposal but before making an award, the commission
    5-2  may permit the offeror to revise the proposal in order to obtain
    5-3  the best final offer.  The commission may not disclose any
    5-4  information derived from proposals submitted from competing
    5-5  offerors in conducting discussions under this subsection.  The
    5-6  commission shall provide each offeror with an equal opportunity for
    5-7  discussion and revision of proposals.
    5-8        (h)  The commission shall invite a requisitioning agency to
    5-9  participate in discussions conducted under Subsection (g) of this
   5-10  section.
   5-11        (i)  The commission shall make a written award of a contract
   5-12  to the offeror whose proposal is the most advantageous to the
   5-13  state, considering price and the evaluation factors in the request
   5-14  for proposals, except that if the commission finds that none of the
   5-15  offers is acceptable, it shall refuse all offers.  The contract
   5-16  file must state in writing the basis on which the award is made.
   5-17        (j)  The commission may adopt rules  and request assistance
   5-18  from other state agencies to perform its responsibilities under
   5-19  this section.
   5-20        (k)  This section does not affect Section 3.022 of this
   5-21  article regarding the use of competitive sealed proposals for
   5-22  acquiring goods or services related to telecommunications or
   5-23  automated information technology.
   5-24        SECTION 9.  Section 3.04, State Purchasing and General
   5-25  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   5-26  amended to read as follows:
   5-27        Sec. 3.04.  Mental Health and Mental Retardation Community
   5-28  Centers; Assistance Organizations.  Community centers for mental
   5-29  health and mental retardation services that receive <are receiving>
   5-30  state grants-in-aid under the provisions of Article 4 of the Texas
   5-31  Mental Health and Mental Retardation Act and assistance
   5-32  organizations as defined by Section 9.01 of this Act that receive
   5-33  any state funds may purchase goods and services <drugs and
   5-34  medicines> through the commission.
   5-35        SECTION 10.  Section 3.101, State Purchasing and General
   5-36  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   5-37  amended to read as follows:
   5-38        Sec. 3.101.  Centralized Master Bidders List <lists>.
   5-39  (a)  This section:
   5-40              (1)  applies to all purchases or other acquisitions
   5-41  under this article, including the acquisition of services, for
   5-42  which competitive bidding or competitive sealed proposals are
   5-43  required;
   5-44              (2)  applies to each <all> state agency <agencies> that
   5-45  makes <make> purchases or other acquisitions under this article,
   5-46  including the commission and agencies that make purchases or other
   5-47  acquisitions under Section 3.06 of this article; and
   5-48              (3)  does not apply to purchases or other acquisitions
   5-49  made by the commission under Section 3.11 of this article.
   5-50        (b)  The commission shall develop a uniform registration form
   5-51  for application to do business with the commission or with any
   5-52  state agency.  The commission and each state agency shall make the
   5-53  form available to applicants.  The form shall include an
   5-54  application for:
   5-55              (1)  certification as a disadvantaged business;
   5-56              (2)  a payee identification number for use by the
   5-57  comptroller; and
   5-58              (3)  placement on the commission's master bidders list.
   5-59        (c)  A state agency shall submit to the commission each
   5-60  uniform registration form that it receives.  The commission shall
   5-61  send to the comptroller a copy of each uniform registration form.
   5-62        (d)  The commission <The registration forms shall constitute
   5-63  a valid application for a bidders list by all state agencies.
   5-64  Nothing in this subsection shall be construed as preventing any
   5-65  state agency from developing and using its own registration form,
   5-66  but such forms shall not be required in addition to or in lieu of
   5-67  the uniform registration form developed by the commission.>
   5-68        <(c)  Each state agency> shall maintain a master bidders list
   5-69  and annually register on the list the name and address of each
   5-70  vendor that applies for registration in accordance with rules
    6-1  adopted under this section.  The commission <An agency> may include
    6-2  other relevant vendor information on the list.  Each state agency
    6-3  shall solicit bids or proposals from all eligible vendors on the
    6-4  list that serve the agency's geographic region, as provided by this
    6-5  section, when the agency proposes to make a purchase or other
    6-6  acquisition that will cost more than $10,000 <$5,000>.  The
    6-7  commission shall maintain the master bidders list in a manner that
    6-8  facilitates a state agency's solicitation of vendors that serve the
    6-9  agency's geographic area.
   6-10        (e)  The commission shall make the master bidders list
   6-11  available to each state agency that makes purchases or other
   6-12  acquisitions to which this section applies.  The commission shall
   6-13  provide access to the list either electronically or in another
   6-14  format, depending on the needs of each state agency.
   6-15        (f)  The commission <(d)  A state agency> may charge
   6-16  applicants for registration a fee and may charge registrants an
   6-17  annual renewal fee in an amount designed to recover the
   6-18  commission's <agency's> costs in developing and maintaining the
   6-19  master <its> bidders list and in soliciting bids or proposals under
   6-20  this section.  The commission <An agency> shall set the amount of
   6-21  the fees by rule.
   6-22        (g)  The commission <(e)  Each state agency> shall adopt
   6-23  procedures for developing and maintaining the master <its> bidders
   6-24  list and procedures for removing inactive vendors from the list.
   6-25        (h)  The commission <(f)  Each state agency> shall establish
   6-26  by rule a vendor classification process under which only vendors
   6-27  that may be able to make a bid or proposal on a particular purchase
   6-28  or other acquisition are solicited under this section.
   6-29        (i)  A state agency may maintain and use its own bidders list
   6-30  only if the commission determines by rule that the agency has
   6-31  specialized needs that can best be met through maintaining and
   6-32  using its own specialized bidders list.  The commission by rule may
   6-33  prescribe the categories of purchases or other acquisitions for
   6-34  which an agency's specialized bidders list may be used.  An agency
   6-35  may supplement the bidders list with its own list of disadvantaged
   6-36  businesses if it determines that supplementation will increase the
   6-37  number of disadvantaged businesses that submit bids.
   6-38        (j) <(g)>  The commission may establish by rule a process
   6-39  under which the requirement for soliciting bids or proposals from
   6-40  eligible vendors on a <the> bidders list may be waived for
   6-41  appropriate state agencies or appropriate purchases or other
   6-42  acquisitions in circumstances in which the requirement is not
   6-43  warranted.  The commission also may assist state agencies regarding
   6-44  issues that arise under this section.
   6-45        SECTION 11.  Section 3.15(h), State Purchasing and General
   6-46  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   6-47  amended to read as follows:
   6-48        (h)  This section does not apply to interagency purchases or
   6-49  transactions.   Interagency purchases and transactions must be
   6-50  accomplished on special vouchers or electronically as prescribed by
   6-51  the comptroller <of public accounts.   The commission shall audit
   6-52  all interagency purchases and transactions after they have been
   6-53  completed>.
   6-54        SECTION 12.  Section 3.29(a), State Purchasing and General
   6-55  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   6-56  amended to read as follows:
   6-57        (a)  A state agency may not purchase or lease a vehicle
   6-58  designed or used primarily for the transportation of persons,
   6-59  including a station wagon, that has a wheel base longer than 113
   6-60  inches or that has more than 160 SAE net horsepower, except that
   6-61  the vehicle may have a wheel base of up to 116 inches or SAE net
   6-62  horsepower of up to 280 if the vehicle will be converted so that it
   6-63  is capable of using compressed natural gas or another alternative
   6-64  fuel that results in comparably lower emissions of oxides of
   6-65  nitrogen, volatile organic compounds, carbon monoxide, or
   6-66  particulates.  This exception to the wheel base and horsepower
   6-67  limitations applies to a state agency regardless of the size of the
   6-68  agency's vehicle fleet.  The wheel base and horsepower limitations
   6-69  prescribed by this subsection do <This provision does> not apply to
   6-70  the purchase or lease of a vehicle to be used primarily for
    7-1  criminal law enforcement or a bus, motorcycle, pickup, van, truck,
    7-2  three-wheel vehicle, tractor, or ambulance.
    7-3        SECTION 13.  Section 4.01(a), State Purchasing and General
    7-4  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
    7-5  amended to read as follows:
    7-6        (a)  The commission shall have charge and control of all
    7-7  public buildings, grounds and property of the state, and is the
    7-8  custodian of all public personal property, and is responsible for
    7-9  the proper care and protection of such property from damage,
   7-10  intrusion, or improper usage.  <The commission is expressly
   7-11  directed to take any steps necessary to protect public buildings
   7-12  against any existing or threatened fire hazards.>  The commission
   7-13  is authorized to provide for the allocation of space in any of the
   7-14  public buildings to the departments of the state government for the
   7-15  uses authorized by law, and is authorized to make any repairs to
   7-16  any such buildings or parts thereof necessary to the serviceable
   7-17  accommodation of the uses to which such buildings or space therein
   7-18  may be allotted.
   7-19        SECTION 14.  Section 4.13, State Purchasing and General
   7-20  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   7-21  transferred to Chapter 443, Government Code, designated as Section
   7-22  443.020, and amended to read as follows:
   7-23        Sec. 443.020 <4.13>.  Pass Keys to Rooms in the Capitol.  Any
   7-24  person who shall make or have made or keep in his possession a pass
   7-25  or master key to the rooms and apartments in the state capitol,
   7-26  unless authorized to do so, shall be fined not exceeding $100.
   7-27        SECTION 15.  Section 5.16(c), State Purchasing and General
   7-28  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   7-29  amended to read as follows:
   7-30        (c)  A project analysis shall consist of (1) a complete
   7-31  description of the facility or project together with a
   7-32  justification of such facility or project prepared by the using
   7-33  agency, (2) a detailed estimate of the amount of space needed to
   7-34  meet the needs of the using agency and to allow for realistic
   7-35  future growth, (3) a description of the proposed facility prepared
   7-36  by an architect/engineer and including schematic plans and outline
   7-37  specifications describing the type of construction and probable
   7-38  materials to be used, sufficient to establish the general scope and
   7-39  quality of construction, (4) an estimate of the probable cost of
   7-40  construction, (5) a description of the proposed site of the project
   7-41  and an estimate of the cost of site preparation, (6) an overall
   7-42  estimate of the cost of the project, (7) the information about
   7-43  historic structures considered instead of new construction that was
   7-44  prepared as required by Section 5.01A of this article, <and> (8) an
   7-45  evaluation of energy alternatives as required by Section 5.161 of
   7-46  this article, and (9) other information as required by the
   7-47  commission.  A project analysis may include two or more alternative
   7-48  proposals for meeting the space needs of the using agency by (1)
   7-49  new construction, (2) acquisition and rehabilitation of an existing
   7-50  or historic structure, or (3) a combination of the above.  If any
   7-51  part of the project involves the construction or rehabilitation of
   7-52  a building that is to be used primarily as a parking garage or for
   7-53  office space for the state government, the project analysis also
   7-54  shall include a description of the amount and location of space in
   7-55  the building that can be made available for lease, under Section
   7-56  4.15 of this Act, to private tenants or shall include a statement
   7-57  of the reason that the lease of space in the building to private
   7-58  tenants is not feasible.  All estimates involved in the preparation
   7-59  of a project analysis shall be carefully and fully documented and
   7-60  incorporated into the project analysis.
   7-61        Throughout the preparation of the project analysis, the
   7-62  commission and any private architect/engineer employed by the
   7-63  commission shall work closely and cooperatively with the using
   7-64  agency to the end that the project analysis shall fully reflect the
   7-65  needs of the using agency.
   7-66        The using agency shall use the cost of the project as
   7-67  determined by such project analysis as the basis of its request to
   7-68  the budget offices of this state.
   7-69        SECTION 16.  Article 5, State Purchasing and General Services
   7-70  Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
    8-1  adding Section 5.161 to read as follows:
    8-2        Sec. 5.161.  EVALUATION OF ENERGY ALTERNATIVES.  (a)  For
    8-3  each project for which a project analysis is prepared under Section
    8-4  5.16 of this article, and for which the construction, alteration,
    8-5  or repair involves installing or replacing all or part of an energy
    8-6  system, energy source, or energy-consuming equipment, the
    8-7  commission, or the private architect/engineer employed by the
    8-8  commission, shall prepare a written evaluation of energy
    8-9  alternatives for the project.
   8-10        (b)  An evaluation prepared under this section shall include
   8-11  information about the economic and environmental impact of various
   8-12  energy alternatives, including an evaluation of economic and
   8-13  environmental costs both initially and over the life of the system,
   8-14  source, or equipment.
   8-15        (c)  An evaluation under this section shall identify the best
   8-16  energy alternative for the project considering both economic and
   8-17  environmental costs and benefits.
   8-18        SECTION 17.  Section 5.22, State Purchasing and General
   8-19  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   8-20  amended by amending Subsection (b) and adding Subsection (d) to
   8-21  read as follows:
   8-22        (b)  Responsibility for the selection of a private
   8-23  architect/engineer employed for any project covered by the
   8-24  provisions of this article shall be vested in the commission.  The
   8-25  commission shall adopt rules that state the criteria the commission
   8-26  uses to evaluate the competence and qualifications of private
   8-27  architects/engineers.  The commission shall develop the rules in
   8-28  consultation with the Texas Board of Architectural Examiners and
   8-29  the State Board of Registration for Professional Engineers.  Except
   8-30  in an emergency, the <The> commission shall allow each private
   8-31  architect/engineer selected for an interview at least 30 days after
   8-32  the date the commission notifies the architect/engineer to prepare
   8-33  for the interview.
   8-34        (d)  In this section, an emergency is a situation that:
   8-35              (1)  presents an imminent peril to the public health,
   8-36  safety, or welfare;
   8-37              (2)  presents an imminent peril to property;
   8-38              (3)  requires expeditious action to prevent a hazard to
   8-39  life, health, safety, welfare, or property; or
   8-40              (4)  requires expeditious action to avoid undue
   8-41  additional cost to a state agency or the state.
   8-42        SECTION 18.  Section 5.26, State Purchasing and General
   8-43  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   8-44  amended by amending Subsection (b) and by adding Subsection (c) to
   8-45  read as follows:
   8-46        (b)  The commission shall cause the uniform general
   8-47  conditions of state building construction contracts to be reviewed
   8-48  whenever in its opinion such review is desirable, but in no event
   8-49  less frequently than once every five years.  The review shall be
   8-50  made by a committee appointed by the commission consisting of the
   8-51  director of facilities construction and space management, who shall
   8-52  serve ex officio as chairman of the committee and who shall vote
   8-53  only in the event of a tie; one person <two persons> appointed by
   8-54  the commission from a list of nominees submitted to it by the
   8-55  President of the Texas Society of Architects; one person <two
   8-56  persons> appointed by the commission from a list of nominees
   8-57  submitted to it by the President of the Texas Society of
   8-58  Professional Engineers; one person <two persons> appointed by the
   8-59  commission from a list of nominees submitted to it by the Chairman
   8-60  of the Executive Council of the Texas Associated General
   8-61  Contractors Chapters; one person <and two persons> appointed by the
   8-62  commission from the list of nominees submitted to it by the
   8-63  Executive Secretary of the Mechanical Contractors Associations of
   8-64  Texas, Incorporated; one person appointed by the commission from a
   8-65  list of nominees submitted to it by the Executive Secretary of the
   8-66  Texas Building and Construction Trades Council; one person
   8-67  appointed by the commission from a list of nominees submitted to it
   8-68  by the President of the Associated Builders and Contractors of
   8-69  Texas; one person appointed by the commission from a list of
   8-70  nominees submitted to it by the Executive Director of the National
    9-1  Association of Minority Contractors residing in Texas; one person
    9-2  appointed by the commission representing an institution of higher
    9-3  education, as defined by Section 61.003, Education Code; one person
    9-4  appointed by the commission representing a state agency that has a
    9-5  substantial ongoing construction program; and one person appointed
    9-6  by the commission representing the attorney general's office.
    9-7  Members of any review committee appointed pursuant to this
    9-8  subsection shall serve without compensation but may be reimbursed
    9-9  for their necessary and actual expenses.
   9-10        (c)  Any contract covered by this section that is not
   9-11  excepted by Sections 5.13 and 5.14 shall be considered to have an
   9-12  arbitration clause as a part of the contract covering any dispute
   9-13  or claim arising out of the contract.  A party to a contract with a
   9-14  claim or dispute against the other party shall give 30 days'
   9-15  written notice of the nature and extent of the claim or dispute.
   9-16  If the matters are not resolved within this notice period, either
   9-17  party may commence arbitration by giving the other a written
   9-18  request for arbitration and arbitrators shall be appointed.  The
   9-19  arbitrators shall be selected as provided in the contract.  If the
   9-20  contract does not provide for the selection of arbitrators, each
   9-21  party shall appoint one arbitrator.  The two appointed arbitrators
   9-22  shall select a third arbitrator.  All arbitrators shall be
   9-23  uninterested parties and have no affiliation with either party to
   9-24  the contract.  The parties shall make their appointments within 10
   9-25  business days after a written request for arbitration is delivered
   9-26  from one party to another.  The third arbitrator shall be appointed
   9-27  within 10 business days after the appointment of the party
   9-28  arbitrators.  The arbitration shall be conducted within 20 business
   9-29  days after the appointments are made.  The decision of the
   9-30  arbitrators shall be binding on the parties.  The arbitration shall
   9-31  be governed by and may be compelled and enforced under the Texas
   9-32  General Arbitration Act (Article 224 et seq., Revised Statutes) or
   9-33  under the United States Arbitration Act (9 U.S.C. Section 1 et
   9-34  seq.), if applicable.   The arbitration award shall not include
   9-35  punitive or exemplary damages nor attorney's fees.  Arbitration may
   9-36  not be requested after the first anniversary of the completion of
   9-37  the work under the contract.
   9-38        SECTION 19.  Section 5.32(b)(1), State Purchasing and General
   9-39  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   9-40  amended to read as follows:
   9-41              (1)  "Solar energy" means <radiant> energy from the sun
   9-42  that may be collected and converted into useful thermal,
   9-43  mechanical, or electrical energy.  The term includes biomass energy
   9-44  that is created in living plants through photosynthesis, wind
   9-45  energy, and other renewable energy resources.
   9-46        SECTION 20.  Section 5.32(c), State Purchasing and General
   9-47  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   9-48  amended to read as follows:
   9-49        (c)  During the planning phase of the proposed construction
   9-50  of a new state building, the commission or, if the construction is
   9-51  included in the exceptions prescribed by Section 5.13 of this
   9-52  article, the governing body of the appropriate agency or
   9-53  institution shall verify in an open meeting <determine> the
   9-54  economic feasibility of incorporating solar energy devices for
   9-55  space heating, cooling, water heating, electrical loads, and
   9-56  interior lighting into the building's design and proposed energy
   9-57  system.  Economic feasibility for each function shall be determined
   9-58  by comparing the estimated cost of providing energy for the
   9-59  function <procurement> using conventional design practices and
   9-60  energy systems with the estimated cost of providing energy for the
   9-61  function using solar energy devices during the economic life of the
   9-62  proposed new building.
   9-63        SECTION 21.  Article 5, State Purchasing and General Services
   9-64  Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
   9-65  adding Section 5.37 to read as follows:
   9-66        Sec. 5.37.  SMALL CONTRACTOR PARTICIPATION ASSISTANCE
   9-67  PROGRAM.  (a)  In this section:
   9-68              (1)  "Program" means the small contractor participation
   9-69  assistance program created under this section.
   9-70              (2)  "Public works project" means a construction
   10-1  project designed to serve the public necessity, use, or convenience
   10-2  that is undertaken and carried out by the commission.  The term
   10-3  includes a project for the construction, alteration, or repair of a
   10-4  public building.
   10-5              (3)  "Small business concern" has the meaning assigned
   10-6  by the Small Business Act (15 U.S.C. Section 631 et seq.) and its
   10-7  subsequent amendments.
   10-8              (4)  "Small contractor" means a contractor that
   10-9  operates as a small business concern.
  10-10        (b)  This section applies only to a contract for a public
  10-11  works project the estimated cost of which exceeds $20 million.
  10-12        (c)  The following laws do not apply to a contract for a
  10-13  public works project subject to this section:
  10-14              (1)  Article 5160, Revised Statutes; and
  10-15              (2)  Section 3.23(c), Texas Workers' Compensation Act
  10-16  (Article 8308-3.23, Vernon's Texas Civil Statutes).
  10-17        (d)  The commission shall establish a small contractor
  10-18  participation assistance program to ensure full opportunity for
  10-19  participation in public works projects by small contractors.  A
  10-20  program established under this section must include:
  10-21              (1)  a system for the centralized purchase of any
  10-22  necessary insurance coverage for the public works project required
  10-23  under Subsection (e) of this section;
  10-24              (2)  a public outreach plan to provide public
  10-25  information about the program and to encourage small contractors to
  10-26  participate in the program;
  10-27              (3)  a technical assistance plan to aid small
  10-28  contractors to develop the skills necessary to participate in the
  10-29  program in accordance with Subsection (f) of this section; and
  10-30              (4)  a financing assistance plan to provide
  10-31  administrative and other assistance to small contractors in
  10-32  obtaining any necessary financing arrangements to make the
  10-33  participation of those contractors possible.
  10-34        (e)  The commission shall provide for the centralized
  10-35  purchasing of:
  10-36              (1)  workers' compensation insurance coverage;
  10-37              (2)  employer's liability insurance coverage;
  10-38              (3)  commercial general and excess liability coverage;
  10-39  and
  10-40              (4)  any other analogous coverage the commission
  10-41  considers necessary and reasonable for the particular public works
  10-42  project.
  10-43        (f)  A technical assistance plan adopted by the commission
  10-44  must include information on and assistance in:
  10-45              (1)  estimating bids, the bidding process, scheduling,
  10-46  and understanding bid documents;
  10-47              (2)  reading construction drawings and other analogous
  10-48  documents;
  10-49              (3)  business accounting, bonds, and bond requirements;
  10-50              (4)  negotiation with general contractors; and
  10-51              (5)  any other technical and administrative assistance
  10-52  considered appropriate and necessary given the complexity and scope
  10-53  of the particular public works project.
  10-54        (g)  The commission may negotiate contracts with persons or
  10-55  firms having expertise in the areas that must be included in the
  10-56  commission's technical assistance plan to provide the information
  10-57  and assistance.
  10-58        SECTION 22.  Section 6.01, State Purchasing and General
  10-59  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  10-60  amended to read as follows:
  10-61        Sec. 6.01.  Definition.  In this article, "space" means
  10-62  office space, warehouse space, laboratory space, storage space
  10-63  exceeding 1,000 gross square feet, or any combination thereof, but
  10-64  does not include aircraft hangar space, radio antenna space, boat
  10-65  storage space, vehicle parking space, residential space for a Texas
  10-66  Department of Mental Health and Mental Retardation program,
  10-67  residential space for a Texas Youth Commission program, or space to
  10-68  be utilized for less than one month for meetings, conferences,
  10-69  seminars, conventions, displays, examinations, auctions, or other
  10-70  similar purposes.
   11-1        SECTION 23.  Article 6, State Purchasing and General Services
   11-2  Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
   11-3  adding Section 6.021 to read as follows:
   11-4        Sec. 6.021.  SPACE USE STUDY; LIMITATION ON ALLOCATION OF
   11-5  SPACE.  (a)  The commission periodically shall conduct a study to
   11-6  determine the space requirements of various state agencies that
   11-7  occupy space under the commission's charge and control, including
   11-8  state-owned space and space leased from other sources.
   11-9        (b)  The commission shall use the results of the study to:
  11-10              (1)  determine the optimal amount of space required for
  11-11  various state agency uses; and
  11-12              (2)  allocate space to state agencies in the best and
  11-13  most efficient manner possible.
  11-14        (c)  The commission may not allocate space to a state agency
  11-15  that exceeds an average of 200 square feet for each agency employee
  11-16  for each agency site, with the exception of an agency site at which
  11-17  15 or fewer employees are located.  This subsection does not apply
  11-18  to:
  11-19              (1)  warehouse space;
  11-20              (2)  laboratory space;
  11-21              (3)  storage space exceeding 1,000 gross square feet;
  11-22  or
  11-23              (4)  another type of space specified by commission
  11-24  rule, if the commission determines that it is not practical to
  11-25  apply this subsection to the specified space.
  11-26        (d)  The commission shall conduct a study under this section
  11-27  at least once during each state fiscal biennium.
  11-28        SECTION 24.  Section 9.13, State Purchasing and General
  11-29  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  11-30  amended to read as follows:
  11-31        Sec. 9.13.  Exemption.  For purposes of this article the
  11-32  terms "surplus" and "salvage" shall not apply to products and
  11-33  by-products of research, forestry, agricultural, livestock, and
  11-34  industrial enterprises <in excess of that quantity required for
  11-35  consumption by the producing agency when such agencies have a
  11-36  continuing and adequate system of marketing research and sales, the
  11-37  efficiency of which shall be certified to the commission by the
  11-38  state auditor.  A qualifying agency shall furnish the commission
  11-39  with a copy of the rules and regulations and latest revisions
  11-40  thereof promulgated by the policy-making body of each agency or
  11-41  institution for the guidance and administration of the programs
  11-42  enumerated herein.  When requested by such agency or institution to
  11-43  do so, the commission shall dispose of the property as provided for
  11-44  in this article>.
  11-45        SECTION 25.  Section 10.02, State Purchasing and General
  11-46  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  11-47  amended by amending Subsection (e) and adding Subsection (g) to
  11-48  read as follows:
  11-49        (e)  The commission, Department of Information Resources, and
  11-50  comptroller shall negotiate rates and execute contracts with
  11-51  telecommunications service providers for services.  Those entities
  11-52  may acquire transmission facilities by purchase, lease, or
  11-53  lease-purchase in accordance with Article 3 of this Act<, which
  11-54  shall be done on a competitive bid basis if possible>.  Those
  11-55  entities may develop, establish, and maintain carrier systems
  11-56  necessary to the operation of the telecommunications system.  The
  11-57  commission may own, lease, or lease-purchase any or all of the
  11-58  facilities or equipment necessary to provide telecommunications
  11-59  services in accordance with Article 3 of this Act.
  11-60        (g)  A representative of the Central Education Agency and a
  11-61  representative of the Texas Higher Education Coordinating Board
  11-62  shall review and comment on telecommunications plans developed by
  11-63  the commission, the Department of Information Resources, and the
  11-64  comptroller under this section.  The participation of the Central
  11-65  Education Agency and the Texas Higher Education Coordinating Board
  11-66  is for the limited purpose of coordinating the statewide
  11-67  telecommunications system developed under this article with the
  11-68  telecommunications systems of educational entities that are not
  11-69  subject to this article.  A representative of the Central Education
  11-70  Agency or the Texas Higher Education Coordinating Board under this
   12-1  section acts in an advisory capacity only and is not entitled to
   12-2  vote on decisions made under this article.
   12-3        SECTION 26.  Section 10.05, State Purchasing and General
   12-4  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   12-5  amended to read as follows:
   12-6        Sec. 10.05.  SHARING OF SERVICES OR FACILITIES.
   12-7  Telecommunications facilities and services, to the extent feasible
   12-8  and desirable, shall be provided on an integrated or shared basis,
   12-9  or both, among and between entities authorized to use the
  12-10  consolidated telecommunications systems under this Article 10 to
  12-11  avoid waste of state funds and manpower.  Such sharing or
  12-12  integrated use does not constitute the resale or carriage of
  12-13  services and does not subject the system to regulation or reporting
  12-14  under the Public Utility Regulatory Act (Article 1446c, Vernon's
  12-15  Texas Civil Statutes).
  12-16        SECTION 27.  Section 10.09(d), State Purchasing and General
  12-17  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  12-18  amended to read as follows:
  12-19        (d)  The commission shall prepare and issue a revised
  12-20  centralized telephone service directory not later than March 31 <in
  12-21  February> of each year.
  12-22        SECTION 28.  Section 14.01, State Purchasing and General
  12-23  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  12-24  amended to read as follows:
  12-25        Sec. 14.01.  Division.  The travel division of the commission
  12-26  is composed of the central travel office and the office of vehicle
  12-27  fleet management <maintenance>.  The commission shall adopt rules
  12-28  to implement this article, including rules related to:
  12-29              (1)  the structure of travel agency contracts that the
  12-30  commission makes;
  12-31              (2)  the procedures the commission uses in requesting
  12-32  and evaluating bids or proposals for travel agency contracts from
  12-33  providers; and
  12-34              (3)  the use of negotiated contract rates for travel
  12-35  services by state agencies.
  12-36        SECTION 29.  Section 14.02(b), State Purchasing and General
  12-37  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  12-38  amended to read as follows:
  12-39        (b)  <The central travel office shall initially provide
  12-40  services to designated agencies located in Travis County and shall
  12-41  extend its services to all state agencies as it develops the
  12-42  capability to do so.>  The office may negotiate contracts with
  12-43  private travel agents, with travel and transportation providers,
  12-44  and with credit card companies that provide travel services and
  12-45  other benefits to the state.  The commission shall make contracts
  12-46  with more than one provider of travel agency services.  Contracts
  12-47  entered into under this section are not subject to the competitive
  12-48  bidding requirements imposed under Article 3 of this Act.  The
  12-49  comptroller of public accounts shall audit for compliance of rules
  12-50  adopted to enforce the provisions of this section.
  12-51        SECTION 30.  The State Purchasing and General Services Act
  12-52  (Article 601b, Vernon's Texas Civil Statutes) is amended by adding
  12-53  Article 15 to read as follows:
  12-54            ARTICLE 15.  COUNCIL ON COMPETITIVE GOVERNMENT
  12-55        Sec. 15.01.  DEFINITIONS.  In this article:
  12-56              (1)  "Commercial activity" means an activity that
  12-57  provides a product or service that is commonly available from a
  12-58  private source.
  12-59              (2)  "Council" means the State Council on Competitive
  12-60  Government.
  12-61              (3)  "Identified state service" means a service
  12-62  provided by the state that the council has identified as a
  12-63  commercially available service and brought under study by the
  12-64  council to determine whether the service may better be provided
  12-65  through competition with private commercial sources.
  12-66              (4)  "State agency" has the meaning established by
  12-67  Section 1.02(2) of this Act.
  12-68        Sec. 15.02.  STATE COUNCIL ON COMPETITIVE GOVERNMENT.  The
  12-69  State Council on Competitive Government is established.  It is the
  12-70  policy of this state that all state services be performed in the
   13-1  most effective and efficient manner in order to be the best value
   13-2  to the citizens of the state and the state recognizes competition
   13-3  among service providers may improve the quality of service
   13-4  provided.  The state shall encourage competition, innovation, and
   13-5  creativity among service providers.
   13-6        Sec. 15.03.  MEMBERSHIP.  (a)  The council consists of the
   13-7  following persons or their designees:
   13-8              (1)  the governor;
   13-9              (2)  the lieutenant governor;
  13-10              (3)  the comptroller;
  13-11              (4)  the speaker of the house of representatives; and
  13-12              (5)  the commission's presiding officer under Section
  13-13  2.04(a) of this Act.
  13-14        (b)  The governor is presiding officer of the board.
  13-15        (c)  If the speaker of the house of representatives is not
  13-16  permitted by the constitution to serve as a voting member of the
  13-17  board, the speaker serves as a nonvoting member.
  13-18        Sec. 15.04.  MEETINGS.  The council shall meet as often as
  13-19  necessary to perform its duties.
  13-20        Sec. 15.05.  DUTIES.  The council shall identify commercially
  13-21  available services currently being performed by state agencies and,
  13-22  if the council determines that these services may better be
  13-23  provided through competition with private commercial sources or
  13-24  other state agency service providers, require a state agency to
  13-25  engage in any process, including competitive bidding, developed by
  13-26  the council to provide the service in competition with private
  13-27  commercial sources or other state agency service providers.
  13-28        Sec. 15.06.  POWERS.  In performing its duties under this
  13-29  article, the council may:
  13-30              (1)  adopt rules governing any aspect of the council's
  13-31  duties or responsibilities;
  13-32              (2)  hold public hearings or conduct studies;
  13-33              (3)  consult with private commercial sources;
  13-34              (4)  require a state agency to conduct an agency
  13-35  in-house cost estimate, a management study, or any other hearing,
  13-36  study, review, or cost estimate concerning any aspect of an
  13-37  identified state service;
  13-38              (5)  develop and require for use by state agencies
  13-39  methods to accurately and fairly estimate and account for the cost
  13-40  of providing an identified state service;
  13-41              (6)  require that an identified state service be
  13-42  submitted to competitive bidding or another process that creates
  13-43  competition with private commercial sources;
  13-44              (7)  prescribe, in consultation with affected state
  13-45  agencies, the specifications and conditions of purchase procedures
  13-46  that must be followed by the commission and a state agency or a
  13-47  private commercial source engaged in competitive bidding to provide
  13-48  an identified state service;
  13-49              (8)  award a contract to a state agency currently
  13-50  providing the service, another state agency, a private commercial
  13-51  source, or any combination of those entities, if the bidder
  13-52  presents the best and most reasonable bid, which is not necessarily
  13-53  the lowest bid; and
  13-54              (9)  determine the terms and conditions of a contract
  13-55  for service or interagency contract to provide an identified state
  13-56  service or other commercially available service.
  13-57        Sec. 15.07.  DUTIES OF AFFECTED STATE AGENCIES.  A state
  13-58  agency shall perform any activities required by the council in the
  13-59  performance of its duties or the exercise of its powers under this
  13-60  article.
  13-61        Sec. 15.08.  EXEMPTION.  Contracts made by the council and
  13-62  decisions regarding whether an agency shall engage in competitive
  13-63  bidding are exempt from all state laws regulating or limiting state
  13-64  purchasing and purchasing decisions.
  13-65        SECTION 31.  Subsection (c), Section 24A, Texas Public
  13-66  Finance Authority Act (Article 601d, Vernon's Texas Civil
  13-67  Statutes), is amended to read as follows:
  13-68        (c)  Notwithstanding the limitations prescribed by Section 9
  13-69  of this Act relating to the location of buildings for which bonds
  13-70  may be issued, the authority may issue bonds under this Act to
   14-1  finance the renovation of West Building, G. J. Sutton State Office
   14-2  Complex in Bexar County, at an estimated cost of $1,375,000; the
   14-3  construction or purchase and renovation of a building or buildings
   14-4  by the commission <State Purchasing and General Services
   14-5  Commission> in Tarrant County, at an estimated cost of $10,000,000;
   14-6  <and> the construction or purchase and renovation of a building or
   14-7  buildings by the commission <State Purchasing and General Services
   14-8  Commission> in Harris County, at an estimated cost of $20,000,000;
   14-9  and the purchase and renovation of a building or buildings by the
  14-10  commission in McLennan County, at an estimated cost of $5,000,000.
  14-11  For purposes of this subsection regarding Tarrant and Harris
  14-12  counties, the commission <State Purchasing and General Services
  14-13  Commission> shall, prior to requesting the authority to issue
  14-14  bonds, prepare project analyses for the potential construction
  14-15  projects and subsequent thereto perform an alternative purchase
  14-16  analysis pursuant to the provisions of Section 5.34, State
  14-17  Purchasing and General Services Act (Article 601b, Vernon's Texas
  14-18  Civil Statutes).
  14-19        SECTION 32.  Section 4, Chapter 1203, Acts of the 71st
  14-20  Legislature, Regular Session, 1989 (Article 601d-3, Vernon's Texas
  14-21  Civil Statutes), is amended by adding Subsections (c) and (d) to
  14-22  read as follows:
  14-23        (c)  The board may issue and sell revenue bonds in one or
  14-24  more series in the name of the authority to finance the renovation
  14-25  and furnishing of facilities for the Texas School for the Deaf.
  14-26  The estimated cost of this renovations and furnishings project is
  14-27  $500,000.
  14-28        (d)  The board may issue and sell revenue bonds in one or
  14-29  more series in the name of the authority to finance the renovation
  14-30  and furnishing of facilities for the Texas School for the Blind and
  14-31  Visually Impaired.  The estimated cost of this renovations and
  14-32  furnishings project is $600,000.
  14-33        SECTION 33.  Section 5(b), Chapter 1203, Acts of the 71st
  14-34  Legislature, Regular Session, 1989 (Article 601d-3, Vernon's Texas
  14-35  Civil Statutes), is amended to read as follows:
  14-36        (b)  Once the funds are deposited and the comptroller has
  14-37  certified that the funds are available, and after transfer of any
  14-38  reserve funds or capitalized interest certified to be reasonably
  14-39  required by the authority and payment of the costs of issuance of
  14-40  the bonds based on a statement by the authority that specifies
  14-41  those costs, the commission shall begin projects under this Act.
  14-42  The<, and the> funds from the issuance authorized under Section
  14-43  4(a) of this Act are appropriated to the commission for that
  14-44  purpose.  The funds from the issuance authorized under Section 4(c)
  14-45  or (d) of this Act may be appropriated by the legislature.  The
  14-46  appropriated funds may be used for those purposes and those
  14-47  projects certified and adopted by rule of the Texas School for the
  14-48  Deaf or the Texas School for the Blind and Visually Impaired, as
  14-49  appropriate, consistent with this Act.
  14-50        SECTION 34.  Section 8, Chapter 1203, Acts of the 71st
  14-51  Legislature, Regular Session, 1989 (Article 601d-3, Vernon's Texas
  14-52  Civil Statutes), is amended to read as follows:
  14-53        Sec. 8.  Agreements; payments.  The Texas School for the
  14-54  Deaf, the Texas School for the Blind and Visually Impaired, and the
  14-55  commission, as appropriate, may enter into lease agreements or
  14-56  execute deeds or other agreements under this Act as necessary to
  14-57  carry out the purposes of this Act.  The commission shall spend
  14-58  funds appropriated by the legislature or received from any other
  14-59  available source for the purpose of making lease payments under
  14-60  this Act.  The commission shall include in its biennial
  14-61  appropriation request an amount sufficient to pay the principal of
  14-62  and interest on outstanding bonds issued under this Act.
  14-63        SECTION 35.  Chapter 417, Government Code, is amended by
  14-64  adding Section 417.0081 to read as follows:
  14-65        Sec. 417.0081.  INSPECTION OF CERTAIN STATE-OWNED BUILDINGS.
  14-66  The state fire marshal, at the commission's direction, shall
  14-67  periodically inspect public buildings under the charge and control
  14-68  of the General Services Commission and shall take any action
  14-69  authorized by the commission to protect the buildings and their
  14-70  occupants from an existing or threatened fire hazard.
   15-1        SECTION 36.  Subchapter A, Chapter 419, Government Code, is
   15-2  amended by adding Section 419.0081 to read as follows:
   15-3        Sec. 419.0081.  PROTECTION OF CERTAIN STATE-OWNED BUILDINGS
   15-4  AGAINST FIRE HAZARDS.  (a)  The commission shall take any action
   15-5  necessary to protect a public building under the charge and control
   15-6  of the General Services Commission, and the building's occupants,
   15-7  against an existing or threatened fire hazard.
   15-8        (b)  The commission and the General Services Commission shall
   15-9  make and each adopt by rule a memorandum of understanding that
  15-10  coordinates the agency's duties under this section.
  15-11        SECTION 37.  Section 771.002, Government Code, is amended to
  15-12  read as follows:
  15-13        Sec. 771.002.  Definitions.  In this chapter:
  15-14              (1)  "Agency" includes:
  15-15                    (A)  a department, board, bureau, commission,
  15-16  court, office, authority, council, or institution;
  15-17                    (B)  a university, college, or any service or
  15-18  part of a state institution of higher education; and
  15-19                    (C)  any statewide job or employment training
  15-20  program for disadvantaged youth that is substantially financed by
  15-21  federal funds and that was created by executive order not later
  15-22  than December 30, 1986.
  15-23              (2)  <"Commission" means the State Purchasing and
  15-24  General Services Commission.>
  15-25              <(3)>  "Resources" means materials and<,> equipment<,
  15-26  and supplies>.
  15-27              (3) <(4)>  "Services" means special or technical
  15-28  services, including the services of employees.
  15-29        SECTION 38.  Section 771.004(a), Government Code, is amended
  15-30  to read as follows:
  15-31        (a)  Before a state agency may provide <furnish> or receive a
  15-32  service or resource under this chapter, the agency must have
  15-33  entered into a written agreement or contract that has been approved
  15-34  by the administrator of each agency that is a party to the
  15-35  agreement or contract <and by the commission>.
  15-36        SECTION 39.  Section 771.004(c), Government Code, is amended
  15-37  to read as follows:
  15-38        (c)  A written agreement or contract is <and advance approval
  15-39  by the commission are> not required:
  15-40              (1)  in an emergency for the defense or safety of the
  15-41  civil population or in the planning and preparation for those
  15-42  emergencies;
  15-43              (2)  in cooperative efforts, proposed by the governor,
  15-44  for the economic development of the state; or
  15-45              (3)  in a situation in which the amount involved is
  15-46  less than $2,500.
  15-47        SECTION 40.  Section 771.006, Government Code, is amended to
  15-48  read as follows:
  15-49        Sec. 771.006.  <Equipment> Purchases and Subcontracts of
  15-50  Services and Resources.  A contract under this chapter may
  15-51  authorize an <permit a furnishing> agency providing services and
  15-52  resources to subcontract and purchase the services and resources
  15-53  <equipment to the extent considered appropriate by the commission>.
  15-54        SECTION 41.  Section 9A(b), Information Resources Management
  15-55  Act (Article 4413(32j), Revised Statutes), is amended to read as
  15-56  follows:
  15-57        (b)  The department, comptroller, and <State Purchasing and>
  15-58  General Services Commission shall develop a statewide
  15-59  telecommunications operating plan for all agencies that implements
  15-60  a statewide network and includes technical specifications that are
  15-61  binding on the managing and operating agency.  A representative of
  15-62  the Central Education Agency and a representative of the Texas
  15-63  Higher Education Coordinating Board shall review and comment on the
  15-64  operating plan as part of the representatives' duties under Section
  15-65  10.02(g), State Purchasing and General Services Act (Article 601b,
  15-66  Vernon's Texas Civil Statutes).
  15-67        SECTION 42.  On the effective date of this Act, all powers,
  15-68  duties, and obligations relating to the protection of public
  15-69  buildings under the charge and control of the General Services
  15-70  Commission, and the buildings' occupants, against existing or
   16-1  threatened fire hazards are transferred from the General Services
   16-2  Commission to the Texas Commission on Fire Protection as provided
   16-3  by this Act.  All property in the custody of the General Services
   16-4  Commission and the original or a copy of any record that relates to
   16-5  fire protection activity in the buildings are transferred to the
   16-6  Texas Commission on Fire Protection.  All appropriations to the
   16-7  General Services Commission for fire protection activity in the
   16-8  buildings and all employees of the General Services Commission
   16-9  employed primarily to engage in fire protection activity in the
  16-10  buildings are transferred to the Texas Commission on Fire
  16-11  Protection.  All investigations and all filed reports or complaints
  16-12  relating to fire protection in the buildings are transferred
  16-13  without change in status from the General Services Commission to
  16-14  the Texas Commission on Fire Protection.  All rules, standards, and
  16-15  specifications of the General Services Commission relating to fire
  16-16  protection in the buildings remain in effect as rules, standards,
  16-17  and specifications of the Texas Commission on Fire Protection
  16-18  unless superseded by proper authority of that commission.
  16-19        SECTION 43.  The General Services Commission shall establish
  16-20  the small contractor participation assistance program required by
  16-21  Section 5.37, State Purchasing and General Services Act (Article
  16-22  601b, Vernon's Texas Civil Statutes), as added by this Act, not
  16-23  later than January 1, 1994.
  16-24        SECTION 44.  The General Services Commission shall complete
  16-25  implementation of the changes in law made by Section 10 of this Act
  16-26  relating to the use of a centralized master bidders list by state
  16-27  agencies not later than September 1, 1995.  During the transition
  16-28  period provided by this section, affected state agencies shall
  16-29  provide the General Services Commission with all records and
  16-30  information in the custody of the agencies that relate to the
  16-31  commission's preparation of the centralized master bidders list.
  16-32        SECTION 45.  (a)  The General Services Commission shall
  16-33  appoint the new members added to the commission's construction
  16-34  contract review committee by Section 18 of this Act as soon as
  16-35  practicable after the effective date of this Act.  The
  16-36  representatives of each society or association that has had its
  16-37  representation on the committee reduced from two members to one
  16-38  member shall determine by agreement or by lot which representative
  16-39  will remain on the committee.
  16-40        (b)  Until all removals and new appointments of members of
  16-41  the commission's construction contract review committee have taken
  16-42  place, a quorum of the committee is a majority of the number of
  16-43  members serving at the time of a meeting.
  16-44        SECTION 46.  On the effective date of this Act, all powers,
  16-45  duties, and obligations of the Office of Small Business Assistance
  16-46  of the Texas Department of Commerce under Section 1.03, State
  16-47  Purchasing and General Services Act (Article 601b, Vernon's Texas
  16-48  Civil Statutes), are transferred to the General Services Commission
  16-49  and the comptroller as prescribed by Section 1 of this Act.  All
  16-50  records and property in the custody of the office that relate to a
  16-51  function transferred by Section 1 of this Act are transferred to
  16-52  the commission or the comptroller, as appropriate.  All
  16-53  appropriations to the office for functions transferred by Section 1
  16-54  of this Act and all employees of the office employed primarily to
  16-55  engage in those functions are transferred to the commission.  An
  16-56  application for certification as a disadvantaged business is
  16-57  transferred without change in status from the office to the
  16-58  commission.  All rules, standards, and specifications of the office
  16-59  relating to the functions transferred by Section 1 of this Act
  16-60  remain in effect as rules, standards, and specifications of the
  16-61  commission or comptroller, as appropriate, unless superseded by
  16-62  proper authority of the entity to which the affected function is
  16-63  transferred.
  16-64        SECTION 47.  (a)  The General Services Commission may
  16-65  purchase and renovate a building or buildings and the related
  16-66  grounds and improvements in McLennan County at an estimated cost of
  16-67  $5 million to meet office space needs for one or more state
  16-68  agencies in the county.  The commission shall finance the purchase
  16-69  and renovation through bonds issued by the Texas Public Finance
  16-70  Authority.
   17-1        (b)  The proceeds of the bonds issued and sold by the Texas
   17-2  Public Finance Authority to finance the purchase and renovation are
   17-3  appropriated to the General Services Commission for the two-year
   17-4  period beginning on the date that the comptroller certifies that
   17-5  the proceeds are available.
   17-6        (c)  Any person from whom real property or any existing
   17-7  buildings or other improvements are purchased under this section
   17-8  shall provide to the General Services Commission the name and the
   17-9  last known address of each person who:
  17-10              (1)  owns record legal title to the property,
  17-11  buildings, or other improvements; or
  17-12              (2)  owns a beneficial interest in the property,
  17-13  buildings, or other improvements through a trust, nominee, agent,
  17-14  or any other legal entity.
  17-15        (d)  When a state agency vacates leased space to move into
  17-16  space in a building purchased under this section or when the leased
  17-17  space itself is purchased under this section, the money
  17-18  specifically appropriated by the legislature or the money available
  17-19  to and budgeted by the agency for lease payments for the leased
  17-20  space for the remainder of the state fiscal biennium ending August
  17-21  31, 1993, or for the state fiscal biennium ending August 31, 1995,
  17-22  may be used only for rental or installment payments for the
  17-23  purchased space under Section 12(b), Texas Public Finance Authority
  17-24  Act (Article 601d, Vernon's Texas Civil Statutes), and for the
  17-25  payment of operating expenses for the purchased space that are
  17-26  incurred by the General Services Commission.  The comptroller may
  17-27  adopt rules for the administration of this subsection.
  17-28        SECTION 48.  The change in law made by Section 5.26(c), State
  17-29  Purchasing and General Services Act (Article 601b, Vernon's Texas
  17-30  Civil Statutes), as added by this Act, applies only to a breach of
  17-31  contract occurring on or after the effective date of this Act,
  17-32  without regard to whether the contract was entered into before, on,
  17-33  or after that date.  A breach of contract occurring before the
  17-34  effective date of this Act is governed by the law in effect at the
  17-35  time the breach of contract occurred, and that law is continued in
  17-36  effect for that purpose.
  17-37        SECTION 49.  (a)  The progress of the implementation of the
  17-38  historically underutilized business goals shall be monitored by a
  17-39  joint committee appointed by the lieutenant governor and the
  17-40  speaker of the house of representatives.  The committee shall be
  17-41  composed of five members of the senate and five members of the
  17-42  house of representatives.  The committee shall make recommendations
  17-43  for any necessary legislative action or remedies for the next
  17-44  regular session of the legislature.
  17-45        (b)  In order to monitor the implementation of this section,
  17-46  the committee may review the records of state agencies related to
  17-47  procurement practices.  Each state agency shall cooperate fully
  17-48  with the committee and shall submit information and reports to the
  17-49  committee as requested by the committee.
  17-50        SECTION 50.  (a)  In addition to the duties prescribed in
  17-51  Article 15, State Purchasing and General Services Act (Article
  17-52  601b, Vernon's Texas Civil Statutes), as added by this Act, the
  17-53  State Council on Competitive Government shall conduct a study by
  17-54  December 1, 1993, or as soon as practicable after that date
  17-55  evaluating services being performed by or for state agencies.
  17-56  Services involving information technology, information facilities
  17-57  management, collocation of field offices, mail, print services,
  17-58  travel management, telecommunications, and fleet management shall
  17-59  be evaluated to identify at least $3 million in cost savings and
  17-60  enhanced revenue resulting from competition with private commercial
  17-61  sources or other state agency providers.  Services to be evaluated
  17-62  shall also include the state's procurement practices to the extent
  17-63  the practices have been evaluated in any report on procurement
  17-64  practices in Texas state government.
  17-65        (b)  The council shall certify the estimate of potential
  17-66  savings or enhanced revenue amounts and forward the information to
  17-67  the Legislative Budget Board.  After evaluating the information,
  17-68  the Legislative Budget Board shall identify general revenue fund
  17-69  appropriations of at least $3 million to be reduced as a result of
  17-70  cost savings or enhanced revenue measures and shall forward that
   18-1  information to the comptroller.  The Legislative Budget Board may
   18-2  request the council to identify additional cost savings or enhanced
   18-3  revenue measures to accomplish the $3 million reduction.
   18-4        (c)  The comptroller shall reduce appropriations to the
   18-5  various agencies by the amounts approved by the Legislative Budget
   18-6  Board and transfer those amounts to the general revenue fund.  Cost
   18-7  savings and enhanced revenues realized as a result of the study
   18-8  performed may be considered a part of the savings, spending
   18-9  reductions, or revenue enhancement plans required of all agencies
  18-10  by the General Appropriations Act for the 1994-1995 biennium.
  18-11        (d)  This section expires on September 1, 1995.
  18-12        SECTION 51.  (a)  At the time that the comptroller vacates
  18-13  the comptroller's training center, located at 125 Lehmann Drive in
  18-14  Kerrville, possession, charge, and control of the building,
  18-15  property, and its grounds are transferred and committed to the
  18-16  Railroad Commission of Texas for the benefit of the State of Texas.
  18-17  The Railroad Commission may use the center for its purposes and may
  18-18  make the center available to other entities.
  18-19        (b)  The comptroller shall give reasonable notice to the
  18-20  Railroad Commission and to the General Services Commission of the
  18-21  date on which the comptroller intends to vacate the center, and on
  18-22  the date that the comptroller vacates the center the comptroller
  18-23  shall inform the two commissions of that fact.  The comptroller,
  18-24  the General Services Commission, and any other appropriate state
  18-25  agency or officer shall take any action necessary to transfer
  18-26  charge and control of the center to the Railroad Commission as
  18-27  required by this Act.
  18-28        SECTION 52.  (a)  The following laws are repealed:
  18-29              (1)  Section 771.005, Government Code;
  18-30              (2)  Section 771.009, Government Code; and
  18-31              (3)  Article 13, State Purchasing and General Services
  18-32  Act (Article 601b, Vernon's Texas Civil Statutes).
  18-33        (b)  The following law is repealed:
  18-34              (1)  Section 771.008(d), Government Code; or
  18-35              (2)  Section 6(d), The Interagency Cooperation Act
  18-36  (Article 4413(32), Vernon's Texas Civil Statutes), as added by
  18-37  Section 30, Chapter 641, Acts of the 72nd Legislature, Regular
  18-38  Session, 1991.
  18-39        (c)  Subsection (b)(1) of this section takes effect only if a
  18-40  bill relating to nonsubstantive additions to and corrections in
  18-41  enacted codes, including the nonsubstantive codification of various
  18-42  laws omitted from enacted codes, and to conforming codifications
  18-43  enacted by the 72nd Legislature to other acts of that legislature,
  18-44  is enacted by the 73rd Legislature and becomes law.  Subsection
  18-45  (b)(2) of this section takes effect only if the bill described by
  18-46  this subsection does not become law.
  18-47        SECTION 53.  This Act takes effect September 1, 1993.
  18-48        SECTION 54.  The importance of this legislation and the
  18-49  crowded condition of the calendars in both houses create an
  18-50  emergency and an imperative public necessity that the
  18-51  constitutional rule requiring bills to be read on three several
  18-52  days in each house be suspended, and this rule is hereby suspended.
  18-53                               * * * * *
  18-54                                                         Austin,
  18-55  Texas
  18-56                                                         May 7, 1993
  18-57  Hon. Bob Bullock
  18-58  President of the Senate
  18-59  Sir:
  18-60  We, your Committee on State Affairs to which was referred H.B. No.
  18-61  2626, have had the same under consideration, and I am instructed to
  18-62  report it back to the Senate with the recommendation that it do not
  18-63  pass, but that the Committee Substitute adopted in lieu thereof do
  18-64  pass and be printed.
  18-65                                                         Harris of
  18-66  Dallas, Chairman
  18-67                               * * * * *
  18-68                               WITNESSES
  18-69                                                  FOR   AGAINST  ON
  18-70  ___________________________________________________________________
   19-1  Name:  Mary Buckley                                            x
   19-2  Representing:  Comptroller of Public Accts.
   19-3  City:  Austin
   19-4  -------------------------------------------------------------------
   19-5  Name:  John Pouland                                            x
   19-6  Representing:  General Services Commission
   19-7  City:  Austin
   19-8  -------------------------------------------------------------------
   19-9  Name:  Cassie Carlson                                          x
  19-10  Representing:  General Services Commission
  19-11  City:  Austin
  19-12  -------------------------------------------------------------------