S.B. No. 381
                                        AN ACT
    1-1  relating to the acquisition or provision of goods and services by
    1-2  the state.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4              PART 1.  GENERAL STATE ACQUISITION PROCESS
    1-5        SECTION 1.01.  (a)  Section 2, Texas Public Finance Authority
    1-6  Act (Article 601d, Vernon's Texas Civil Statutes), is amended to
    1-7  read as follows:
    1-8        Sec. 2.  PURPOSE.  The purpose of this Act is to provide a
    1-9  method of financing:
   1-10              (1)  for the acquisition or construction of buildings
   1-11  in Travis County, Texas; and
   1-12              (2)  for the purchase or lease of equipment by state
   1-13  agencies in the executive or judicial branch of state government.
   1-14        (b)  The amendment of Section 2, Texas Public Finance
   1-15  Authority Act (Article 601d, Vernon's Texas Civil Statutes), by
   1-16  Section 42, H.B. No. 2626, Acts of the 73rd Legislature, Regular
   1-17  Session, 1993, has no effect.
   1-18        SECTION 1.02.  (a)  Subsection (a), Section 9A, Texas Public
   1-19  Finance Authority Act (Article 601d, Vernon's Texas Civil
   1-20  Statutes), is amended to read as follows:
   1-21        (a)  The authority may issue and sell obligations for the
   1-22  financing of a lease or other agreement so long as the agreement
   1-23  concerns equipment that a state agency in the executive or judicial
   1-24  branch of state government has purchased or leased or intends to
    2-1  purchase or lease.  The authority's power to issue obligations
    2-2  includes the power to issue and sell obligations for the financing
    2-3  of a package of agreements involving one or more state agencies.
    2-4        (b)  The amendment of Subsection (a), Section 9A, Texas
    2-5  Public Finance Authority Act (Article 601d, Vernon's Texas Civil
    2-6  Statutes), by Section 43, H.B. No. 2626, Acts of the 73rd
    2-7  Legislature, Regular Session, 1993, has no effect.
    2-8        SECTION 1.03.  Subdivision (3), Section 1, Chapter 454, Acts
    2-9  of the 65th Legislature, Regular Session, 1977 (Article 6252-11c,
   2-10  Vernon's Texas Civil Statutes), is amended to read as follows:
   2-11              (3)  "State agency" has the meaning assigned by Section
   2-12  1.02, State Purchasing and General Services Act (Article 601b,
   2-13  Vernon's Texas Civil Statutes) <means a state department,
   2-14  commission, board, office, institution, facility, or other agency
   2-15  the jurisdiction of which is not limited to a geographical portion
   2-16  of the state.  The term includes a university system and an
   2-17  institution of higher education as defined in Section 61.003,
   2-18  Education Code.  The term does not include a public junior
   2-19  college>.
   2-20        SECTION 1.04.  Subchapter C, Chapter 403, Government Code, is
   2-21  amended by adding Section 403.039 to read as follows:
   2-22        Sec. 403.039.  TEXAS IDENTIFICATION NUMBER SYSTEM.  (a)  The
   2-23  comptroller shall assign a Texas Identification Number, based on
   2-24  the comptroller's taxpayer identification number system, to each
   2-25  person, other than a state employee, who supplies property or
   2-26  services to the state for compensation or reimbursement.
   2-27        (b)  The Texas Identification Number system shall be used by
    3-1  each state agency as the primary identification system for persons,
    3-2  other than state employees, who supply property or services to the
    3-3  agency for compensation or reimbursement.  The agency may assign
    3-4  secondary numbers if the secondary numbering system does not
    3-5  unnecessarily create duplication of data bases, efforts, or costs.
    3-6        (c)  All state agencies shall cooperate with the comptroller
    3-7  to convert existing relevant identification systems to the Texas
    3-8  Identification Number system.  The comptroller may adopt rules
    3-9  governing the conversion to and the administration of the Texas
   3-10  Identification Number system, including rules on the procedure for
   3-11  applying for a number under the system.
   3-12        (d)  In this section, "state agency" means any department,
   3-13  commission, board, office, or other agency in the executive,
   3-14  legislative, or judicial branch of state government, including an
   3-15  institution of higher education.
   3-16        SECTION 1.05.  The comptroller shall begin implementation of
   3-17  the Texas Identification Number system, as added by Section 1.04 of
   3-18  this part, as soon as practicable.  A state agency may phase in its
   3-19  use of the system but shall fully implement the system not later
   3-20  than September 1, 1998.
   3-21        SECTION 1.06.  Section 1.03, State Purchasing and General
   3-22  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   3-23  amended by adding Subsections (l) through (p) to read as follows:
   3-24        (l)  The commission and each state agency shall prepare as
   3-25  part of its strategic plan under Article 6252-31, Revised Statutes,
   3-26  as added by Chapter 384, Acts of the 72nd Legislature, Regular
   3-27  Session, 1991, a written plan for increasing the commission's or
    4-1  the agency's use of historically underutilized businesses in
    4-2  purchasing and in public works contracting.  On request, the
    4-3  commission shall provide technical assistance to an agency that is
    4-4  preparing its plan under this subsection.  The plan must include:
    4-5              (1)  a policy or mission statement relating to
    4-6  increasing use of historically underutilized businesses by the
    4-7  commission or agency;
    4-8              (2)  goals to be met by the commission or agency in
    4-9  carrying out the policy or mission; and
   4-10              (3)  specific programs to be conducted by the
   4-11  commission or agency to meet the goals stated in the plan,
   4-12  including a specific program to encourage contractors to use
   4-13  historically underutilized businesses as partners and
   4-14  subcontractors.
   4-15        (m)  The commission and each state agency shall prepare an
   4-16  annual report for each fiscal year documenting progress under its
   4-17  plan for increasing use of historically underutilized businesses.
   4-18  The commission or agency shall file the report with the governor,
   4-19  lieutenant governor, and speaker of the house of representatives
   4-20  not later than December 31 of each year.
   4-21        (n)  In cooperation with the state auditor, the commission
   4-22  shall develop a standard form for reports prepared under Subsection
   4-23  (m) of this section.
   4-24        (o)  The commission shall assist the Texas Department of
   4-25  Commerce in the performance of the department's duties under
   4-26  Section 481.103, Government Code.
   4-27        (p)  The commission shall encourage the use of historically
    5-1  underutilized businesses by state agencies by:
    5-2              (1)  working with state agencies to establish a
    5-3  statewide policy for increasing use of historically underutilized
    5-4  businesses;
    5-5              (2)  assisting state agencies in seeking historically
    5-6  underutilized businesses capable of supplying materials and
    5-7  services that the agencies require;
    5-8              (3)  assisting state agencies in identifying and
    5-9  advising historically underutilized businesses on the types of
   5-10  goods and services needed by the agencies; and
   5-11              (4)  assisting state agencies in increasing the volume
   5-12  of business placed with historically underutilized businesses.
   5-13        SECTION 1.07.  Article 3, State Purchasing and General
   5-14  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   5-15  amended by adding Section 3.081 to read as follows:
   5-16        Sec. 3.081.  CATALOGUE PURCHASE PROCEDURE.  (a)  A vendor who
   5-17  wants to sell or lease automated information systems under this
   5-18  section to state agencies covered by the Information Resources
   5-19  Management Act (Article 4413(32j), Revised Statutes) shall apply to
   5-20  the commission for designation as a "qualified information systems
   5-21  vendor" according to an application process promulgated by the
   5-22  commission.  At a minimum, the application process shall include
   5-23  submission of the following elements:
   5-24              (1)  a catalogue containing all products and services
   5-25  eligible for purchase by state agencies, including descriptions of
   5-26  each product or service, the list price of each product or service,
   5-27  and the price to Texas state agencies of each product or service;
    6-1              (2)  a maintenance, repair, and support plan for all
    6-2  eligible products and services;
    6-3              (3)  proof of the applicant's financial resources and
    6-4  ability to perform; and
    6-5              (4)  a guarantee that the vendor will make available
    6-6  equivalent replacement parts for products sold to Texas for at
    6-7  least three years from the date of a product's discontinuation.
    6-8        (b)  Within 90 days after the effective date of the law
    6-9  enacting this section the commission shall establish standards and
   6-10  criteria for designating qualified information systems vendors on a
   6-11  regional and statewide basis.  A vendor remains qualified until the
   6-12  commission determines the vendor fails to meet the criteria set
   6-13  forth in this section.  Vendors granted regional status may sell
   6-14  catalogue-listed products and services directly to state agencies
   6-15  covered by the Information Resources Management Act (Article
   6-16  4413(32j), Revised Statutes) within a region defined by the
   6-17  commission.  Vendors granted statewide status may sell
   6-18  catalogue-listed products and services directly to any state agency
   6-19  covered by the Information Resources Management Act (Article
   6-20  4413(32j), Revised Statutes).  The commission's standards and
   6-21  criteria shall be developed in accordance with the following
   6-22  parameters:
   6-23              (1)  the ability of the vendor to provide adequate and
   6-24  reliable support and maintenance;
   6-25              (2)  the vendor's ability to provide adequate and
   6-26  reliable support and maintenance in the future;
   6-27              (3)  the technical adequacy and reliability of the
    7-1  vendor's products; and
    7-2              (4)  consistency with standards adopted by the
    7-3  Department of Information Resources or a subsequent entity.
    7-4        (c)  If a vendor is designated by the commission as a
    7-5  qualified information systems vendor, the vendor shall publish and
    7-6  maintain a catalogue containing all products and services eligible
    7-7  for purchase by state agencies, including descriptions of each
    7-8  product or service, the list price of each product or service, and
    7-9  the price to Texas state agencies of each product or service.  The
   7-10  vendor shall update the catalogue on an as-needed basis to reflect
   7-11  changes in price or the availability of products or services and
   7-12  shall forward a copy of each updated catalogue to the commission
   7-13  and all eligible purchasers.
   7-14        (d)  A state agency covered by the Information Resources
   7-15  Management Act (Article 4413(32j), Revised Statutes) may purchase
   7-16  or lease automated information systems directly from a qualified
   7-17  information systems vendor and may negotiate additional terms and
   7-18  conditions to be included in contracts relating to the purchase or
   7-19  lease, provided the purchase or lease is based on the best value
   7-20  available and is in the state's best interest.  In determining
   7-21  which products or services are in the state's best interest, the
   7-22  agency shall consider the following factors:
   7-23              (1)  installation costs and hardware costs;
   7-24              (2)  the overall life cycle cost of the system or
   7-25  equipment;
   7-26              (3)  estimated cost of employee training and estimated
   7-27  increase in employee productivity;
    8-1              (4)  estimated software and maintenance costs; and
    8-2              (5)  compliance with applicable statewide standards
    8-3  adopted by the Department of Information Resources or a subsequent
    8-4  entity as validated by criteria established by the department or a
    8-5  subsequent entity in administrative rule.
    8-6        (e)  The commission shall establish rules and regulations and
    8-7  implement the catalogue purchase procedure set forth in this
    8-8  section no later than January 1, 1994.
    8-9        (f)  Purchases of automated information systems shall be made
   8-10  through the catalogue procedure enumerated in this section unless
   8-11  the commission or state agency determines that the best value
   8-12  available accrues from an alternative purchase method authorized by
   8-13  this Act.
   8-14        (g)  The commission shall make the catalogue purchasing
   8-15  procedure enumerated in this section available to local governments
   8-16  who qualify for cooperative purchasing under Sections 271.082 and
   8-17  271.083, Local Government Code.  In this subsection, "local
   8-18  government" has the meaning assigned to it by Section 271.081,
   8-19  Local Government Code.
   8-20        SECTION 1.08.  Section 1.02, State Purchasing and General
   8-21  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   8-22  amended by adding Subdivisions (4), (5), and (6) to read as
   8-23  follows:
   8-24              (4)  "Automated information systems" means any
   8-25  automated information systems, the computers on which they are
   8-26  automated, or a service related to the automation of information
   8-27  systems or the computers on which they are automated, including
    9-1  computer software, awarded to a vendor by a state agency covered by
    9-2  the Information Resources Management Act (Article 4413(32j),
    9-3  Revised Statutes), or any telecommunications apparatus or device
    9-4  that serves as a component of a voice, data, or video
    9-5  communications network for the purpose of transmitting, switching,
    9-6  routing, multiplexing, modulating, amplifying, or receiving signals
    9-7  on that network.
    9-8              (5)  "Best value" means lowest overall cost of
    9-9  information systems based on the following factors including but
   9-10  not limited to:
   9-11                    (A)  purchase price;
   9-12                    (B)  compatibility to facilitate exchange of
   9-13  existing data;
   9-14                    (C)  capacity for expansion and upgrading to more
   9-15  advanced levels of technology;
   9-16                    (D)  quantitative reliability factors;
   9-17                    (E)  the level of training required to bring
   9-18  end-users to a stated level of proficiency;
   9-19                    (F)  the technical support requirements for
   9-20  maintenance of data across a network platform and management of the
   9-21  network's hardware and software; and
   9-22                    (G)  compliance with applicable statewide
   9-23  standards adopted by the Department of Information Resources or a
   9-24  subsequent entity as validated by criteria established by the
   9-25  department or a subsequent entity in administrative rule.
   9-26              (6)  "Qualified information systems vendor" means
   9-27  manufacturers or resellers of automated information systems who are
   10-1  authorized by the commission to publish catalogues of products and
   10-2  services which may be directly purchased by state agencies covered
   10-3  by the Information Resources Management Act (Article 4413(32j),
   10-4  Revised Statutes).
   10-5        SECTION 1.09.  Section 10.05, State Purchasing and General
   10-6  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   10-7  amended to read as follows:
   10-8        Sec. 10.05.  Sharing of services or facilities.
   10-9  (a)  Telecommunications facilities and services, to the extent
  10-10  feasible and desirable, shall be provided on an integrated or
  10-11  shared basis, or both, to avoid waste of state funds and manpower.
  10-12        (b)  The commission, the Department of Information Resources,
  10-13  and the comptroller shall develop, in coordination with The Texas
  10-14  A&M University System, The University of Texas System, other
  10-15  institutions of higher education, and other state agencies, a plan
  10-16  for a state telecommunications network that will effectively and
  10-17  efficiently meet the long-term voice, video, and computer
  10-18  communications requirements of state government.  The plan should
  10-19  recognize that all state agencies and institutions of higher
  10-20  education are a single entity for purposes of purchasing and
  10-21  determining tariffs.  The plan shall incorporate efficiencies
  10-22  obtained through the use of shared transmission services and open
  10-23  systems architecture as they become available, building on existing
  10-24  systems as appropriate, and the developers of the plan shall make
  10-25  use of the technical expertise of the institutions of higher
  10-26  education and state agencies.  The commission, department, and
  10-27  comptroller shall present to the governor and the legislature a
   11-1  comprehensive summary of the plan and its implementation schedule
   11-2  before September 1, 1994.
   11-3        SECTION 1.10.  Not later than January 1, 1995, the General
   11-4  Services Commission shall submit to the governor, lieutenant
   11-5  governor, and speaker of the house of representatives a report on
   11-6  the competitive sealed proposal process established by Section
   11-7  3.0221, State Purchasing and General Services Act (Article 601b,
   11-8  Vernon's Texas Civil Statutes), as added by H.B. No. 2626, Acts of
   11-9  the 73rd Legislature, Regular Session, 1993, that includes:
  11-10              (1)  a list of all purchases made under the process
  11-11  during the state fiscal year ending August 31, 1994, including
  11-12  purchases by institutions and other agencies of higher education
  11-13  under authority delegated by the commission;
  11-14              (2)  an analysis of benefits and disadvantages of the
  11-15  process; and
  11-16              (3)  recommendations for improving the process.
  11-17        SECTION 1.11.  Article 5, State Purchasing and General
  11-18  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  11-19  amended by adding Section 5.265 to read as follows:
  11-20        Sec. 5.265.  COMMON SURETY OR INSURER.  If it is advantageous
  11-21  to the state, the commission, or an agency whose project is
  11-22  exempted from all or part of this article under Section 5.13 of
  11-23  this article, may negotiate an arrangement with a surety or an
  11-24  insurer, as appropriate, authorized to do business in this state to
  11-25  furnish some or all of the bonds, insurance, or both that a
  11-26  contractor or subcontractor is required to execute or carry to
  11-27  receive a contract or subcontract on a project administered by the
   12-1  commission or other agency.  Notwithstanding Section 1, Chapter 87,
   12-2  Acts of the 56th Legislature, Regular Session, 1959 (Article
   12-3  7.19-1, Vernon's Texas Insurance Code), and its subsequent
   12-4  amendments, the commission or other agency may require a contractor
   12-5  or subcontractor to meet part or all of the bonding or insurance
   12-6  requirements for the project under the arrangement negotiated by
   12-7  the commission or other agency.
   12-8        SECTION 1.12.  Article 5, State Purchasing and General
   12-9  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  12-10  amended by adding Section 5.342 to read as follows:
  12-11        Sec. 5.342.  ACQUISITION OF EXISTING BUILDING AS ALTERNATIVE
  12-12  TO LEASING SPACE.  (a)  This section applies only to meeting office
  12-13  space needs of one or more state agencies in a county in which the
  12-14  state is leasing at least 50,000 square feet of usable office
  12-15  space.
  12-16        (b)  The commission may meet office space needs of one or
  12-17  more state agencies that are being met through leased space by
  12-18  purchasing one or more existing buildings in accordance with this
  12-19  section.  The purchase of a building may include the purchase of
  12-20  the building's grounds and related improvements.  The purchase of a
  12-21  building under this section must be:
  12-22              (1)  financed through bonds issued by the Texas Public
  12-23  Finance Authority; and
  12-24              (2)  approved by the legislature if it is in session or
  12-25  by the Legislative Budget Board if the legislature is not in
  12-26  session.
  12-27        (c)  The commission may purchase a building under this
   13-1  section only if the commission determines that the projected annual
   13-2  total space occupancy costs of the purchased space will not exceed,
   13-3  over the term of the bonded indebtedness, the projected annual
   13-4  total space occupancy costs of meeting the same space needs through
   13-5  leased space.  In this section, "total space occupancy costs"
   13-6  include:
   13-7              (1)  for leased space, the direct cost of the lease
   13-8  payments for the space;
   13-9              (2)  for purchased space, the direct cost of rental or
  13-10  installment payments for the space under Section 12(b), Texas
  13-11  Public Finance Authority Act (Article 601d, Vernon's Texas Civil
  13-12  Statutes);
  13-13              (3)  the cost of any necessary renovations;
  13-14              (4)  operating costs, including janitorial and utility
  13-15  costs; and
  13-16              (5)  for purchased space, the cost of maintaining a
  13-17  cash replacement reserve sufficient to service structural
  13-18  maintenance requirements reflecting the expected performance life
  13-19  of the major capital expense items of the building for the term of
  13-20  the bonded indebtedness.
  13-21        (d)  If the commission has made the necessary determination
  13-22  under Subsection (c) of this section and the purchase has been
  13-23  approved by the legislature or the Legislative Budget Board under
  13-24  Subsection (b) of this section, the Texas Public Finance Authority
  13-25  shall issue and sell bonds to finance the purchase in accordance
  13-26  with the Texas Public Finance Authority Act (Article 601d, Vernon's
  13-27  Texas Civil Statutes), and the commission may purchase the building
   14-1  in accordance with that Act and other applicable law.  The
   14-2  limitation prescribed by Section 9, Texas Public Finance Authority
   14-3  Act (Article 601d, Vernon's Texas Civil Statutes), relating to the
   14-4  location of a building for which bonds may be issued and sold does
   14-5  not apply to financing the purchase of a building under this
   14-6  section.
   14-7        (e)  Any person from whom real property or any existing
   14-8  buildings or other improvements are purchased under this section
   14-9  shall provide to the commission the name and the last known address
  14-10  of each person who:
  14-11              (1)  owns record legal title to the property,
  14-12  buildings, or other improvements; or
  14-13              (2)  owns a beneficial interest in the property,
  14-14  buildings, or other improvements through a trust, nominee, agent,
  14-15  or any other legal entity.
  14-16        (f)  When a state agency vacates leased space to move into
  14-17  space in a building purchased under this section or when the leased
  14-18  space itself is purchased under this section, the money
  14-19  specifically appropriated by the legislature or the money available
  14-20  to and budgeted by the agency for lease payments for the leased
  14-21  space for the remainder of the biennium may be used only for rental
  14-22  or installment payments for the purchased space under Section
  14-23  12(b), Texas Public Finance Authority Act (Article 601d, Vernon's
  14-24  Texas Civil Statutes), and for the payment of operating expenses
  14-25  for the purchased space that are incurred by the commission.  The
  14-26  comptroller may adopt rules for the administration of this
  14-27  subsection.
   15-1        SECTION 1.13.  Subsections (c) and (m), Section 4.15, State
   15-2  Purchasing and General Services Act (Article 601b, Vernon's Texas
   15-3  Civil Statutes), are amended to read as follows:
   15-4        (c)  Except as provided by this section and Article 6252-3e,
   15-5  Revised Statutes, the commission shall determine the amount of
   15-6  space in a building to be allocated to private tenants and the
   15-7  types of activities in which the tenants may engage based on the
   15-8  market for certain activities among employees and visitors in the
   15-9  building and in the vicinity of the building.  Except as provided
  15-10  by Subsection (m) <(l)> of this section, the amount of space
  15-11  allocated to private tenants may not exceed 15 percent of the total
  15-12  space in the building.  Any space leased to provide child care
  15-13  services for state employees shall not be counted in the 15 percent
  15-14  maximum.
  15-15        (m)  If the commission determines under Section 5.34 or 5.342
  15-16  of this Act that the purchase of an existing building is more
  15-17  advantageous to the state than constructing <the construction of> a
  15-18  new building or continuing to lease space for a state agency, but a
  15-19  purchase of the building would be subject to existing leases to
  15-20  private tenants that exceed 15 percent of the total space in the
  15-21  building, the commission may purchase the building subject to
  15-22  existing leases notwithstanding Subsection (c) of this section.
  15-23  When an existing lease to a private tenant expires, the commission
  15-24  may renew the lease subject to this section, including Subsection
  15-25  (c).
  15-26        SECTION 1.14.  Subsection (b), Section 9, Texas Public
  15-27  Finance Authority Act (Article 601d, Vernon's Texas Civil
   16-1  Statutes), is amended to read as follows:
   16-2        (b)  When the acquisition or construction of a building has
   16-3  been authorized in accordance with this Act or under Section 5.34
   16-4  or 5.342, State Purchasing and General Services Act (Article 601b,
   16-5  Vernon's Texas Civil Statutes), the board shall promptly issue and
   16-6  sell bonds in the name of the authority under this Act, including
   16-7  Sections 10B and 16 of this Act, to finance the acquisition or
   16-8  construction of the building.  When the proceeds from the bond
   16-9  issuance are available, the board shall promptly deposit the
  16-10  proceeds in the state treasury under Section 23 of this Act and
  16-11  shall promptly make the determinations that are to be made by the
  16-12  board under Section 23 of this Act.
  16-13        SECTION 1.15.  Subsection (a), Section 10, Texas Public
  16-14  Finance Authority Act (Article 601d, Vernon's Texas Civil
  16-15  Statutes), as amended by Chapter 1244, Acts of the 71st
  16-16  Legislature, Regular Session, 1989, is amended to read as follows:
  16-17        (a)  Except as permitted by Sections 24A(b)(5) and 24A(d) of
  16-18  this Act or Section 5.34 or 5.342, State Purchasing and General
  16-19  Services Act (Article 601b, Vernon's Texas Civil Statutes), before
  16-20  the board may issue and sell bonds, the legislature by law must
  16-21  have authorized in this Act, the General Appropriations Act, or
  16-22  another Act the specific project for which the bonds are to be
  16-23  issued and sold and must have authorized the estimated cost of the
  16-24  project or the maximum amount of bonded indebtedness that may be
  16-25  incurred by the issuance and sale of bonds for the project.  In
  16-26  recognition that the cost estimates for acquisition, construction,
  16-27  repair, or renovation of a project will not be final at the time
   17-1  the project is authorized for financing and that the bonds may be
   17-2  issued to fund associated costs, including but not limited to
   17-3  reasonably required reserve funds, capitalized interest,
   17-4  administrative costs of the authority, and issuing expenses, the
   17-5  principal amount of any bond issue for that purpose may be up to
   17-6  1-1/2 the amount of the estimated cost for the project being
   17-7  financed.  For additional costs to be included in that principal
   17-8  amount, the board must affirmatively find that those costs are
   17-9  necessary and reasonable at the time the bonds are issued.
  17-10        SECTION 1.16.  Section 481.105, Government Code, is
  17-11  transferred to Article 3, State Purchasing and General Services Act
  17-12  (Article 601b, Vernon's Texas Civil Statutes), redesignated as
  17-13  Section 3.281, and amended to read as follows:
  17-14        Sec. 3.281 <481.105>.  Participation by Small Businesses in
  17-15  State Purchasing.  The commission <office> shall foster
  17-16  participation of small businesses in the purchasing activities of
  17-17  the state by:
  17-18              (1)  assisting state agencies in developing procedures
  17-19  to ensure the inclusion of small businesses on state agency master
  17-20  bid lists;
  17-21              (2)  informing small businesses of state purchasing
  17-22  opportunities;
  17-23              (3)  assisting small businesses in complying with the
  17-24  procedures for bidding on state contracts;
  17-25              (4)  working with state and federal agencies and with
  17-26  private organizations in disseminating information on state
  17-27  purchasing procedures and the opportunities for small businesses to
   18-1  participate in state contracts;
   18-2              (5)  assisting state agencies with the development of a
   18-3  comprehensive list of small businesses capable of providing
   18-4  materials, supplies, equipment, or services to the state; <and>
   18-5              (6)  making recommendations to state agencies for
   18-6  simplification of specifications and terms to increase the
   18-7  opportunities for small business participation;
   18-8              (7)  working with state agencies to establish a
   18-9  statewide policy for increasing use of small businesses;
  18-10              (8)  assisting state agencies in seeking small
  18-11  businesses capable of supplying materials and services that the
  18-12  agencies require;
  18-13              (9)  assisting state agencies in identifying and
  18-14  advising small businesses on the types of goods and services needed
  18-15  by the agencies; and
  18-16              (10)  assisting state agencies in increasing the volume
  18-17  of business placed with small businesses.
  18-18        SECTION 1.17.   On the effective date of this part, all
  18-19  powers, duties, and obligations of the Office of Small Business
  18-20  Assistance of the Texas Department of Commerce under Section 1.03,
  18-21  State Purchasing and General Services Act (Article 601b, Vernon's
  18-22  Texas Civil Statutes), and under former Section 481.105, Government
  18-23  Code, are transferred to the General Services Commission as
  18-24  prescribed by this part.  All records and property in the custody
  18-25  of the office that relate to a function transferred by this part
  18-26  are transferred to the commission.  All appropriations to the
  18-27  office for functions transferred by this part and all employees of
   19-1  the office employed primarily to engage in those functions are
   19-2  transferred to the commission.  An application for certification as
   19-3  a disadvantaged business is transferred without change in status
   19-4  from the office to the commission.  All rules, standards, and
   19-5  specifications of the office relating to the functions transferred
   19-6  by this part remain in effect as rules, standards, and
   19-7  specifications of the commission unless superseded by the
   19-8  commission.
   19-9        SECTION 1.18.  Subchapter B, Chapter 435, Government Code, is
  19-10  amended by adding Section 435.027 to read as follows:
  19-11        Sec. 435.027.  GRONER A. PITTS NATIONAL GUARD ARMORY.  The
  19-12  Texas National Guard armory located in Brownwood, Texas, is named
  19-13  the Groner A. Pitts National Guard Armory in honor of Groner A.
  19-14  Pitts.
  19-15        SECTION 1.19.  The State Purchasing and General Services Act
  19-16  (Article 601b, Vernon's Texas Civil Statutes) is amended by adding
  19-17  Article 3A to read as follows:
  19-18               ARTICLE 3A.  CENTRAL AUTOMATED PURCHASING
  19-19        Sec. 3A.01.  STUDY AND DESIGN PROCESS.  The commission and
  19-20  the comptroller shall jointly study and design a central automated
  19-21  purchasing system for use by state agencies.  The design must be
  19-22  compatible with the uniform statewide accounting system and must
  19-23  allow state agencies to select goods or services from an automated
  19-24  catalogue, order the goods or services electronically, and enter
  19-25  electronically on the system the fact of receipt of the goods or
  19-26  services.  The design must also allow an entry of receipt on the
  19-27  system to serve as an authorization for the comptroller to pay the
   20-1  vendor on verification that the agency is authorized by law to
   20-2  purchase the goods or services.
   20-3        Sec. 3A.02.  ASSISTANCE BY OTHER STATE AGENCIES.  On the
   20-4  request of the commission or the comptroller, the Department of
   20-5  Information Resources and other state agencies shall assist the
   20-6  commission and the comptroller in the study and design process
   20-7  authorized by Section 3A.01 of this article.
   20-8        Sec. 3A.03.  REPORT TO LEGISLATURE.  Not later than January
   20-9  1, 1995, the commission and the comptroller shall each submit to
  20-10  the legislature a report containing the agency's recommendations
  20-11  relating to:
  20-12              (1)  the cost, feasibility, and advisability of
  20-13  implementing a central automated purchasing system as designed by
  20-14  the agencies; and
  20-15              (2)  other advisable changes that concern the state's
  20-16  methods of acquiring goods and services that would become feasible
  20-17  if the state implemented the central automated purchasing system.
  20-18        Sec. 3A.04.  RULES.  The commission and the comptroller may
  20-19  adopt rules to administer this article.
  20-20        Sec. 3A.05.  EXPIRATION.  This article expires on September
  20-21  1, 1995.
  20-22        SECTION 1.20.  Subsections (f) and (k), Section 9,
  20-23  Information Resources Management Act (Article 4413(32j), Revised
  20-24  Statutes), are amended to read as follows:
  20-25        (f)  At the request of a state agency, the <The> department
  20-26  may provide technical and managerial assistance relating to
  20-27  information resources management, including automation feasibility
   21-1  studies, systems analysis, and design, training, and technology
   21-2  evaluation <at the request of a state agency>.
   21-3        (k)  The department may <shall operate, on a self-supporting
   21-4  basis, a computer service facility and> provide computer services
   21-5  under interagency contracts to state agencies that choose to
   21-6  contract with the department <subscribe to the service>.
   21-7        SECTION 1.21.  Section 13, Information Resources Management
   21-8  Act (Article 4413(32j), Revised Statutes), is amended to read as
   21-9  follows:
  21-10        Sec. 13.  PERFORMANCE <Annual> report.  (a)  Not later than
  21-11  November <February> 1 of each even-numbered year, the board shall
  21-12  review and approve and the department shall present a <department's
  21-13  annual> report on the use of information resources technologies by
  21-14  <management activities of> state government<, based on the annual
  21-15  performance reports submitted to the department by state agencies
  21-16  under Section 20 of this article>.   The <annual> report must:
  21-17              (1)  assess the progress made toward meeting the goals
  21-18  and objectives of the state strategic plan for information
  21-19  resources management;
  21-20              (2)  describe major accomplishments of the state or a
  21-21  specific <and each> state agency in information resources
  21-22  management;
  21-23              (3)  describe major problems confronting the state or a
  21-24  specific state <the existing major data bases and applications in
  21-25  each> agency in information resources management;
  21-26              (4)  <describe all existing interagency computer
  21-27  networks;>
   22-1              <(5)>  provide a summary of the total expenditures for
   22-2  information resources and information resources technologies by
   22-3  <each agency and> the state;
   22-4              <(6)  provide an inventory list, by major categories,
   22-5  of the state's information resources technologies;> and
   22-6              (5) <(7)  identify and> make recommendations for
   22-7  improving the effectiveness and cost efficiency of the state's use
   22-8  of information resources <regarding opportunities for multiagency
   22-9  information resources management activities>.
  22-10        (b)  The <approved annual> report <of the department> shall
  22-11  be submitted to the governor and to the legislature <Legislative
  22-12  Budget Board>.
  22-13        (c)  The department may make interim reports that it
  22-14  considers necessary.
  22-15        (d)  The department is entitled to obtain any information
  22-16  concerning a state agency's information resources and information
  22-17  resources technologies that the department determines is necessary
  22-18  to prepare a report under this section.
  22-19        SECTION 1.22.  Section 15, Information Resources Management
  22-20  Act (Article 4413(32j), Revised Statutes), is amended to read as
  22-21  follows:
  22-22        Sec. 15.  PROJECT REVIEW.  (a)  In this section, "major
  22-23  information resources project" means any information resources
  22-24  technology project identified in a state agency's biennial
  22-25  operating plan with development costs that exceed $1,000,000 and
  22-26  that:
  22-27              (1)  requires one year or longer to reach operations
   23-1  status;
   23-2              (2)  involves more than one state agency; or
   23-3              (3)  substantially alters work methods of state agency
   23-4  personnel or the delivery of services to clients.
   23-5        (b)  A state agency may not expend appropriated funds for a
   23-6  major information resources project unless the project has been
   23-7  approved by the department in the agency's biennial operating plan.
   23-8        (c)  The department shall develop rules or guidelines for its
   23-9  review of major information resources projects.  <INITIAL OPERATING
  23-10  PLANS.  (a)  Once each biennium, each state agency's information
  23-11  resources manager shall prepare an initial operating plan.  An
  23-12  agency is not required to identify specific acquisitions or the
  23-13  method of acquisition in the plan.  The plan must be approved by
  23-14  the governing body of the agency and submitted to the department
  23-15  for approval not later than the date that the agency is required to
  23-16  submit its first legislative appropriations request.>
  23-17        <(b)  A state agency's initial operating plan must, for each
  23-18  request under each Legislative Budget Board assumption:>
  23-19              <(1)  state how the agency's requested appropriations
  23-20  for the management, operation, and procurement of information
  23-21  resources would be spent;>
  23-22              <(2)  contain a summary of the agency's needs for
  23-23  information resources technologies and the estimated cost of
  23-24  meeting those needs during the next biennium;>
  23-25              <(3)  list the existing and proposed projects for the
  23-26  agency during the next biennium, including:>
  23-27                    <(A)  the anticipated measurable benefits of
   24-1  those projects and the measurement standards used to determine
   24-2  those benefits;>
   24-3                    <(B)  the major resources required to conduct the
   24-4  projects;>
   24-5                    <(C)  the agency's estimated total cost of each
   24-6  project by legislative program as found in the agency's legislative
   24-7  appropriations request;>
   24-8                    <(D)  the cost and implementation schedule for
   24-9  each stage of each project;>
  24-10                    <(E)  the number, type, approximate cost,
  24-11  schedule, and, if known, the planned method of acquisition for all
  24-12  procurements associated with each project that are subject to
  24-13  review under department rules; and>
  24-14                    <(F)  the estimated internal development costs
  24-15  for each project, including an allocation of costs for the use of
  24-16  fixed assets and an allocation for administrative costs;>
  24-17              <(4)  provide an estimate, given the estimated work
  24-18  load, of the percentage of existing and proposed information
  24-19  resources technologies that will be required after all existing and
  24-20  proposed projects are implemented; and>
  24-21              <(5)  any other information the department considers
  24-22  necessary.>
  24-23        SECTION 1.23.  Section 16, Information Resources Management
  24-24  Act (Article 4413(32j), Revised Statutes), is amended to read as
  24-25  follows:
  24-26        Sec. 16.  BIENNIAL <Final> operating plans.  (a)  Each state
  24-27  agency shall submit an <a final> operating plan to the department
   25-1  each state fiscal biennium not later than the 30th day after the
   25-2  date that the General Appropriations Act for the biennium becomes
   25-3  law <earliest of the following dates of each odd-numbered year:>
   25-4              <(1)  September 1;>
   25-5              <(2)  the 60th day after the date the General
   25-6  Appropriations Act becomes law if it becomes law on or before July
   25-7  31 of that year; or>
   25-8              <(3)  the 30th day after the date the General
   25-9  Appropriations Act becomes law if it becomes law after July 31 of
  25-10  that year>.
  25-11        (b)  The <At a minimum, the> plan shall describe the agency's
  25-12  current and proposed projects for the biennium <must include, in
  25-13  addition to the information required in the initial operating plan,
  25-14  the following:>
  25-15              <(1)  the amount of money related to information
  25-16  resources actually appropriated to the agency for the biennium
  25-17  beginning September 1; and>
  25-18              <(2)  an identification of changes, if any, in the
  25-19  agency's priorities for projects and associated procurements as set
  25-20  forth in the initial operating plan>.
  25-21        (c)  <The department may consult the comptroller to verify a
  25-22  state agency's approved funds.>
  25-23        <(d)>  A state agency shall amend its biennial <final>
  25-24  operating plan when necessary to reflect changes in the plan during
  25-25  a biennium.  <The plan shall also be amended if necessary to show
  25-26  the impact of a consulting services contract or report that may
  25-27  affect software development, hardware configuration, or changes in
   26-1  the agency's management of information resources.  The substance of
   26-2  any amendment submitted to the plan must also be included in an
   26-3  appropriate approved agency strategic plan or approved agency
   26-4  strategic plan amendment.>
   26-5        SECTION 1.24.  Section 17, Information Resources Management
   26-6  Act (Article 4413(32j), Revised Statutes), is amended to read as
   26-7  follows:
   26-8        Sec. 17.  Procedures for submitting and evaluating operating
   26-9  plans.  (a)  The department by rule shall adopt instructions to
  26-10  guide state agencies in their preparation of biennial <initial
  26-11  operating plans and final> operating plans.  The instructions must:
  26-12              (1)  specify the format of the plans;
  26-13              (2)  specify <require the submission of> the
  26-14  information required to be included in the plans <by this article>;
  26-15  <and>
  26-16              (3)  list the general criteria that the department will
  26-17  use to evaluate the plans; and
  26-18              (4)  specify procedures for the submission, review,
  26-19  approval, and disapproval of plans and amendments, including
  26-20  procedures for review or reconsideration of the department's
  26-21  disapproval of a plan or plan amendment.
  26-22        (b)  <The department shall notify a state agency in writing
  26-23  of the department's approval or disapproval of an initial operating
  26-24  plan.  The notification shall be sent not later than 120 days after
  26-25  the date the department receives the plan.>
  26-26        <(c)  The department shall notify a state agency in writing
  26-27  of the department's approval or disapproval of a final operating
   27-1  plan.  The notification shall be sent not later than 30 days after
   27-2  the date the department receives the plan.  If the department's
   27-3  determination is due after September 1 of an odd-numbered year, a
   27-4  state agency may operate as if the plan had been approved until the
   27-5  department actually makes its determination.>
   27-6        <(d)  If the department disapproves a state agency's initial
   27-7  operating plan or final operating plan, the department shall
   27-8  provide to the agency in writing the reasons for the disapproval.
   27-9  If the agency cannot resolve the problems that caused disapproval
  27-10  within 30 days after the date the notice of disapproval is
  27-11  received, the agency shall notify the department in writing of the
  27-12  reasons why the problems cannot be resolved.  The notification
  27-13  shall be sent to the department not later than 30 days after the
  27-14  date that the agency receives notice of the department's
  27-15  disapproval.>
  27-16        <(e)  Before a state agency may amend its final operating
  27-17  plan, the agency must submit the proposed amendment to the
  27-18  department for approval.  All amendments affecting operations
  27-19  during a fiscal year must be submitted not later than June 1 of
  27-20  that fiscal year.  The department shall notify the agency of the
  27-21  department's approval or disapproval not later than the 30th day
  27-22  after the date the proposed amendment is received.  If the
  27-23  department disapproves a proposed amendment, the department shall
  27-24  state the reasons for the disapproval in writing to the agency's
  27-25  information resources manager.  The department shall adopt rules
  27-26  for the procedures a state agency must follow when submitting a
  27-27  revision of proposed amendments to the department after the
   28-1  department has disapproved the amendments.>
   28-2        <(f)  The department may not approve a state agency's initial
   28-3  operating plan or final operating plan unless the agency has
   28-4  submitted and the department has approved a current agency
   28-5  strategic plan.>
   28-6        <(g)  A state agency that disagrees with the department's
   28-7  disapproval of an initial operating plan, final operating plan, or
   28-8  an amendment to either of those plans may submit a written request
   28-9  to the department for special review.  On receipt of a request, the
  28-10  executive director shall inform the board.  The board shall
  28-11  consider the merits of the agency's position and make its decision
  28-12  on the matter at the next regularly scheduled board meeting.  The
  28-13  state agency may appear and present its position at that meeting.
  28-14  The decision of the board is final.  The board shall adopt rules
  28-15  for the fair and efficient administration of this subsection.>
  28-16        <(h)>  Each state agency shall submit a copy of its biennial
  28-17  <final> operating plan, as approved by the department, to the
  28-18  governor, the Legislative Budget Board, and the state auditor not
  28-19  later than 30 days after the date that the department approves the
  28-20  plan.  If an agency fails to comply with this subsection, the
  28-21  governor may direct the comptroller to deny the agency access to
  28-22  the agency's appropriations that relate to the management of
  28-23  information resources.  The denial of access may continue until the
  28-24  governor is satisfied with the agency's compliance with this
  28-25  subsection.
  28-26        <(i)  As a consequence of evaluating an initial operating
  28-27  plan or a final operating plan, the department may require a state
   29-1  agency to submit or obtain certain information as part of its
   29-2  procurement process.  This may be required when:>
   29-3              <(1)  an agency is planning a noncompetitive
   29-4  procurement;>
   29-5              <(2)  an agency is planning a system conversion; or>
   29-6              <(3)  the department determines that the information
   29-7  would be necessary or appropriate.>
   29-8        SECTION 1.25.   Section 19, Information Resources Management
   29-9  Act (Article 4413(32j), Revised Statutes), is amended to read as
  29-10  follows:
  29-11        Sec. 19.  Information resources managers.  (a)  The person
  29-12  required to sign an agency's strategic plan, or that person's
  29-13  designee, shall serve as the agency's information resources
  29-14  manager.  A member of the board of the department may not also
  29-15  serve as the information resources manager of a state agency.
  29-16        (b)  <If the department performs substantially all
  29-17  information processing for a state agency, the agency may designate
  29-18  the department as the agency's information resources manager.  The
  29-19  department may by rule define the circumstances in which it may
  29-20  serve as an agency's information resources manager.>
  29-21        <(c)>  Each state agency shall cooperate as necessary with
  29-22  its information resources manager to enable that person to perform
  29-23  the duties required of the information resources manager by law.
  29-24        (c) <(d)>  The department shall provide guidelines to state
  29-25  agencies regarding the initial and continuing education
  29-26  requirements needed for information resources managers <not later
  29-27  than September 1, 1990, to be effective on September 1, 1992>.  Any
   30-1  person who is appointed the information resources manager of a
   30-2  state agency before September 1, 1992, is exempt from the
   30-3  requirements of the department regarding initial education needed
   30-4  for that position.  The department may provide educational
   30-5  materials and seminars for state agencies and information resources
   30-6  managers.
   30-7        (d) <(e)>  The information resources manager is responsible
   30-8  for the preparation of the operating plans under Sections 16 and 17
   30-9  <15-17> of this article<, and the annual performance report under
  30-10  Section 20 of this article>.
  30-11        SECTION 1.26.  The Information Resources Management Act
  30-12  (Article 4413(32j), Revised Statutes) is amended by adding Section
  30-13  18A to read as follows:
  30-14        Sec. 18A.  INTERAGENCY CONTRACTS.  (a)  A state agency may
  30-15  not enter into an interagency contract for the receipt of
  30-16  information resources technologies, including a contract with the
  30-17  department, unless the agency complies with this section.
  30-18        (b)  A state agency that proposes to receive information
  30-19  resources technologies under a contract with another state agency
  30-20  must first give public notice of a request for proposals or a
  30-21  request for bids.
  30-22        (c)  A state agency may not enter into an interagency
  30-23  contract to receive information resources technologies if the
  30-24  agency receives a bid or proposal under Subsection (b) of this
  30-25  section under which the agency can receive the same or
  30-26  substantially the same technologies from a private vendor for less
  30-27  than the cost that would be incurred by the agency under the
   31-1  interagency contract.  If a bid or proposal is received under
   31-2  Subsection (b) of this section that would allow the agency to
   31-3  accomplish the application or project at an acceptable level of
   31-4  quality and for an acceptable period for a total cost to the state
   31-5  of less than the total cost to the state of the best proposed
   31-6  interagency contract, as that cost is determined by the department,
   31-7  a contract for the accomplishment of the application or project
   31-8  shall be awarded to the bidder with the lowest and best bid, or the
   31-9  offeror whose proposal is most advantageous to the state as
  31-10  determined from competitive sealed proposals.
  31-11        (d)  The department by rule may define circumstances in which
  31-12  certain interagency contracts that will cost less than a minimum
  31-13  amount established by the department are excepted from the
  31-14  requirements of this section or this article, if the department
  31-15  determines that it would be more cost effective for the state.
  31-16        SECTION 1.27.  Section 26, Information Resources Management
  31-17  Act (Article 4413(32j), Revised Statutes), is amended to read as
  31-18  follows:
  31-19        Sec. 26.  Application to state lottery operations.  (a)  The
  31-20  lottery division in the office of the comptroller is not included
  31-21  in the agency strategic plan<, initial operating plan,> or biennial
  31-22  <final> operating plan of the comptroller.  The lottery division is
  31-23  not subject to the planning and procurement requirements of this
  31-24  Act.
  31-25        (b)  The electronic funds transfer system for the operation
  31-26  of the state lottery is not included in the agency strategic plan<,
  31-27  initial operating plan,> or biennial <final> operating plan of the
   32-1  state treasurer.  Operations of the state treasurer that relate to
   32-2  the state lottery are not subject to the planning and procurement
   32-3  requirements of this Act.
   32-4        SECTION 1.28.  (a)  Sections 18 and 20, Information Resources
   32-5  Management Act (Article 4413(32j), Revised Statutes), are repealed.
   32-6        (b)  Section 3.021, State Purchasing and General Services Act
   32-7  (Article 601b, Vernon's Texas Civil Statutes), is repealed.
   32-8        SECTION 1.29.  (a)  Effective August 31, 1994, Sections 21
   32-9  and 22, Information Resources Management Act (Article 4413(32j),
  32-10  Revised Statutes), are repealed.  On that date, all amounts in the
  32-11  Department of Information Resources revolving fund account
  32-12  established under Section 22, Information Resources Management Act
  32-13  (Article 4413(32j), Revised Statutes), are transferred to the
  32-14  undedicated portion of the general revenue fund.
  32-15        (b)  Before August 31, 1994, the Department of Information
  32-16  Resources shall assist state agencies that use the department's
  32-17  services under Section 21, Information Resources Management Act
  32-18  (Article 4413(32j), Revised Statutes), to obtain suitable
  32-19  alternative services.
  32-20        SECTION 1.30.  This part takes effect immediately.
  32-21          PART 2.  ABOLITION OF TEXAS SURPLUS PROPERTY AGENCY
  32-22        SECTION 2.01.  Subsection (c), Section 2.06, State Purchasing
  32-23  and General Services Act (Article 601b, Vernon's Texas Civil
  32-24  Statutes), is amended to read as follows:
  32-25        (c)  The executive director shall employ two associate deputy
  32-26  directors, who shall administer the operation of the divisions of
  32-27  the commission, except the surplus and salvage property division,
   33-1  as provided by this Act.  The commission shall:
   33-2              (1)  employ a third associate deputy director to
   33-3  administer the operation of the surplus and salvage property
   33-4  division as provided by this Act, and that associate deputy
   33-5  director serves at the pleasure of the commission; or
   33-6              (2)  assign the duty to administer the surplus and
   33-7  salvage property division directly to the executive director, who
   33-8  shall directly administer that division subject to and under the
   33-9  direction of the commission.
  33-10        SECTION 2.02.  Section 2.09, State Purchasing and General
  33-11  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  33-12  amended to read as follows:
  33-13        Sec. 2.09.  Divisions.  (a)  The commission is divided into
  33-14  divisions as provided by this section.  The associate deputy
  33-15  director employed to administer the surplus and salvage property
  33-16  division shall direct that division as provided by Subsection (c)
  33-17  of this section.  Another <One> associate deputy director shall
  33-18  direct the travel division and other divisions as directed by the
  33-19  executive director.  The other associate deputy director shall
  33-20  direct the remaining divisions as directed by the executive
  33-21  director.
  33-22        (b)  Each division shall be managed by a division director
  33-23  who shall report to the appropriate associate deputy director,
  33-24  except as provided by Subsection (c) of this section.
  33-25        (c)  The surplus and salvage property division is established
  33-26  to administer Article 9 of this Act.  Notwithstanding Section
  33-27  2.06(b) of this Act, and unless the commission assigns the duty to
   34-1  administer the division directly to the executive director, the
   34-2  affairs of the division are managed by the associate deputy
   34-3  director of that division, whose management is subject to and under
   34-4  the direction of the commission and who reports directly to the
   34-5  commission.  All direction of the commission to the associate
   34-6  deputy director shall be made at an open meeting of the commission
   34-7  and made a part of the minutes of the commission.  The division may
   34-8  share support functions with other divisions of the commission, but
   34-9  the division shall operate autonomously from the rest of the
  34-10  commission, and the administration of the division must be housed
  34-11  in a different building than other commission functions.  If the
  34-12  commission assigns the duty to administer the division directly to
  34-13  the executive director, the division must still operate
  34-14  autonomously from the rest of the commission, and, except for the
  34-15  executive director's office, the administrative functions of the
  34-16  division must still be housed in a different building from other
  34-17  commission functions.
  34-18        SECTION 2.03.  Subsection (a), Section 8.01, State Purchasing
  34-19  and General Services Act (Article 601b, Vernon's Texas Civil
  34-20  Statutes), is amended to read as follows:
  34-21        (a)  This article applies to:
  34-22              (1)  personal property belonging to the state; and
  34-23              (2)  real or personal property acquired by or otherwise
  34-24  under the commission's jurisdiction under Section 9.16 of this Act
  34-25  and 40 U.S.C. Section 483c, 484(j), or 484(k).
  34-26        SECTION 2.04.  Subsection (a) Section 9.01, State Purchasing
  34-27  and General Services Act (Article 601b, Vernon's Texas Civil
   35-1  Statutes), is amended by amending Subdivisions (3) and (4) and
   35-2  adding Subdivision (8) to read as follows:
   35-3              (3)  "Property" means personal property.  The term does
   35-4  not include real property, or any interest in real property, except
   35-5  federal real property acquired under Section 9.16 of this article
   35-6  and Section 484(k), Federal Property and Administrative Services
   35-7  Act.  Personal<; however, personal> property affixed to real
   35-8  property may be sold under this law if its removal and disposition
   35-9  is to carry out a lawful objective under this law or any other law.
  35-10  The term includes property lawfully confiscated and subject to
  35-11  disposal by a state agency.
  35-12              (4)  "Surplus property":
  35-13                    (A)  means:
  35-14                          (i)  any personal property which is in
  35-15  excess of the needs of  any state agency and which is not required
  35-16  for its foreseeable needs; or
  35-17                          (ii)  federal surplus property acquired by
  35-18  the commission or otherwise under the commission's jurisdiction
  35-19  under Section 9.16 of this article and 40 U.S.C. Section 483c or
  35-20  Section 484(j) or 484(k), Federal Property and Administrative
  35-21  Services Act; and
  35-22                    (B)  includes property that<.  Surplus property>
  35-23  may be used or new but possesses some usefulness for the purpose
  35-24  for which it was intended or for some other purpose.
  35-25              (8)  "Federal Property and Administrative Services Act"
  35-26  means the Federal Property and Administrative Services Act of 1949
  35-27  (40 U.S.C. Section 484).
   36-1        SECTION 2.05.  Section 9.02, State Purchasing and General
   36-2  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   36-3  amended to read as follows:
   36-4        Sec. 9.02.  Establishment of Procedures.  The commission
   36-5  shall establish and maintain procedures for the transfer, sale, or
   36-6  disposal, as prescribed by law, of:
   36-7              (1)  surplus and salvage property no longer needed by
   36-8  state agencies; and
   36-9              (2)  federal surplus property that the state acquires
  36-10  under the Federal Property and Administrative Services Act.
  36-11        SECTION 2.06.  Section 9.03, State Purchasing and General
  36-12  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  36-13  amended to read as follows:
  36-14        Sec. 9.03.  Mailing lists of assistance organizations and
  36-15  political subdivisions.  The commission shall maintain a mailing
  36-16  list, renewable annually, of assistance organizations and political
  36-17  subdivision purchasing agents or other officers performing similar
  36-18  functions who have asked for information on surplus or salvage
  36-19  equipment or material the state may have available.  <The
  36-20  commission shall provide the list to the Texas Surplus Property
  36-21  Agency.>
  36-22        SECTION 2.07.  Subsection (a), Section 9.05, State Purchasing
  36-23  and General Services Act (Article 601b, Vernon's Texas Civil
  36-24  Statutes), is amended to read as follows:
  36-25        (a)  If surplus or salvage property of a state agency is not
  36-26  disposed of under the provisions of Section 9.04 of this article,
  36-27  the commission shall sell the property by competitive bid or
   37-1  auction or delegate to the state agency having possession of the
   37-2  property the authority to sell the property on a competitive bid
   37-3  basis.  The commission or agency shall collect a fee from the
   37-4  purchaser.  The commission shall set the fee in an amount to
   37-5  recover the costs associated with the sale of the property, but the
   37-6  amount may not be less than two percent nor more than 12 percent of
   37-7  the proceeds from the sale of the property.
   37-8        SECTION 2.08.  Section 9.13, State Purchasing and General
   37-9  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  37-10  amended to read as follows:
  37-11        Sec. 9.13.  EXEMPTION.  For purposes of this article the
  37-12  terms "surplus" and "salvage" shall not apply to products and
  37-13  by-products of research, forestry, agricultural, livestock, and
  37-14  industrial enterprises <in excess of that quantity required for
  37-15  consumption by the producing agency when such agencies have a
  37-16  continuing and adequate system of marketing research and sales, the
  37-17  efficiency of which shall be certified to the commission by the
  37-18  state auditor.  A qualifying agency shall furnish the commission
  37-19  with a copy of the rules and regulations and latest revisions
  37-20  thereof promulgated by the policy making body of each agency or
  37-21  institution for the guidance and administration of the programs
  37-22  enumerated herein.  When requested by such agency or institution to
  37-23  do so, the commission shall dispose of the property as provided for
  37-24  in this article>.
  37-25        SECTION 2.09.  Section 9.14, State Purchasing and General
  37-26  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  37-27  amended to read as follows:
   38-1        Sec. 9.14.  Authorization of Agencies to Dispose of Property.
   38-2  The commission may authorize an agency to dispose of surplus or
   38-3  salvage property where the agency demonstrates to the commission
   38-4  its ability to make such disposition under the rules and
   38-5  regulations set up by the commission, as provided for herein.
   38-6  State eleemosynary institutions and institutions and agencies of
   38-7  higher learning shall be excepted from the terms of this article
   38-8  that relate to the disposition of their surplus or salvage
   38-9  property.
  38-10        SECTION 2.10.  Article 9, State Purchasing and General
  38-11  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  38-12  amended by adding Sections 9.16 and 9.17 to read as follows:
  38-13        Sec. 9.16.  FEDERAL SURPLUS PROPERTY.  (a)  The commission is
  38-14  the designated state agency under Section 484(j) of the Federal
  38-15  Property and Administrative Services Act.
  38-16        (b)  The commission may:
  38-17              (1)  acquire and warehouse federal property allocated
  38-18  to the commission under the Federal Property and Administrative
  38-19  Services Act; and
  38-20              (2)  distribute the property:
  38-21                    (A)  to an entity or institution that meets the
  38-22  qualifications for eligibility for the property under the Federal
  38-23  Property and Administrative Services Act; and
  38-24                    (B)  without complying with the provisions of
  38-25  this article that relate to the disposition of surplus state agency
  38-26  property.
  38-27        (c)  The commission may:
   39-1              (1)  disseminate information and assist a potential
   39-2  applicant regarding the availability of federal surplus real
   39-3  property;
   39-4              (2)  assist in the processing of an application for
   39-5  acquisition of federal real property and related personal property
   39-6  under Section 484(k) of the Federal Property and Administrative
   39-7  Services Act;
   39-8              (3)  assist in assuring use of the property; and
   39-9              (4)  engage in an activity relating to the use of
  39-10  federal surplus property by another state agency, institution, or
  39-11  organization engaging in or receiving assistance under a federal
  39-12  program.
  39-13        (d)  The commission shall:
  39-14              (1)  file a state plan of operation that complies with
  39-15  federal law and operate in accordance with the plan;
  39-16              (2)  take necessary action to meet the minimum
  39-17  standards for a state agency in accordance with the Federal
  39-18  Property and Administrative Services Act; and
  39-19              (3)  cooperate to the fullest extent consistent with
  39-20  this section.
  39-21        (e)  The commission may:
  39-22              (1)  make the necessary certifications and undertake
  39-23  necessary action, including an investigation;
  39-24              (2)  make expenditures or reports that may be required
  39-25  by federal law or regulation or that are otherwise necessary to
  39-26  provide for the proper and efficient management of the commission's
  39-27  functions under this section;
   40-1              (3)  provide information and reports relating to the
   40-2  commission's activities under this section that may be required by
   40-3  a federal agency or department; and
   40-4              (4)  adopt rules necessary for the efficient operation
   40-5  of its activities  under this section or as may be required by
   40-6  federal law or regulation.
   40-7        (f)  The commission may enter into an agreement, including:
   40-8              (1)  a cooperative agreement with a federal agency
   40-9  under Section 484(n) of the Federal Property and Administrative
  40-10  Services Act;
  40-11              (2)  an agreement with a state agency for surplus
  40-12  property of a state agency that will promote the administration of
  40-13  the commission's functions under this section; or
  40-14              (3)  an agreement with a group or association of state
  40-15  agencies for surplus property that will promote the administration
  40-16  of the commission's functions under this section.
  40-17        (g)  The commission may act as an information clearinghouse
  40-18  for an entity or institution that may be eligible to acquire
  40-19  federal surplus property and may assist, as necessary, the entity
  40-20  or institution to obtain federal surplus property.
  40-21        (h)  The commission may:
  40-22              (1)  acquire and hold title or make capital
  40-23  improvements to real property in accordance with Subsection (i) of
  40-24  this section; or
  40-25              (2)  make an advance payment of rent for a distribution
  40-26  center, office space, or another facility that is required to carry
  40-27  out the commission's functions under this section.
   41-1        (i)  The commission may collect a service charge for the
   41-2  commission's acquisition, warehousing, distribution, or transfer of
   41-3  property.  The commission may not collect a charge for real
   41-4  property in an amount that is greater than the reasonable
   41-5  administrative cost the commission incurs in transferring the
   41-6  property.
   41-7        (j)  A charge collected under Subsection (i) of this section
   41-8  shall be deposited in the state treasury to the credit of  the
   41-9  surplus property service charge fund, and  income earned on money
  41-10  in the surplus property service charge fund shall be credited to
  41-11  that fund.  Money in the fund may be used only to carry out the
  41-12  functions of the commission under this section.
  41-13        (k)  The commission may appoint advisory boards and
  41-14  committees necessary and suitable to administer this section.
  41-15        (l)  The commission may employ, compensate, and prescribe the
  41-16  duties of personnel, other than members of advisory boards and
  41-17  committees, necessary and suitable to administer this section.  A
  41-18  personnel position may only be filled by an individual selected and
  41-19  appointed on a nonpartisan merit basis.
  41-20        Sec. 9.17.  ADMINISTRATIVE COST RECOVERY STUDY.  The
  41-21  commission shall conduct a study to determine if its functions
  41-22  under this article can be made self-supporting by charging fees for
  41-23  commission services.  If the commission determines that a function
  41-24  can be made self-supporting through charging fees, the commission
  41-25  shall prepare a fee implementation plan.   Before January 1, 1995,
  41-26  the commission shall report to each member of the legislature the
  41-27  results of the study and the implementation plan for fee recovery,
   42-1  if any.  This section expires January 1, 1995.
   42-2        SECTION 2.11.  Subsection (a), Section 403.271, Government
   42-3  Code, is amended to read as follows:
   42-4        (a)  This subchapter applies to:
   42-5              (1)  all personal property belonging to the state; and
   42-6              (2)  real and personal property acquired by or
   42-7  otherwise under the jurisdiction of the state under 40 U.S.C.
   42-8  Section 483c, 484(j), or 484(k), and Section 9.16, State Purchasing
   42-9  and General Services Act (Article 601b, Vernon's Texas Civil
  42-10  Statutes).
  42-11        SECTION 2.12.  (a)  The General Services Commission and the
  42-12  Texas Surplus Property Agency shall coordinate the transfer of all
  42-13  Texas Surplus Property Agency functions to the General Services
  42-14  Commission as required by this part.  The administrative functions
  42-15  of the Texas Surplus Property Agency are transferred to the General
  42-16  Services Commission to be carried out by staff located in Austin,
  42-17  in accordance with the State Purchasing and General Services Act
  42-18  (Article 601b, Vernon's Texas Civil Statutes), as amended by this
  42-19  Act.
  42-20        (b)  The transfer of all functions from the Texas Surplus
  42-21  Property Agency to the General Services Commission shall be
  42-22  accomplished as soon as practicable, but not later than the 45th
  42-23  day after the effective date of this part, at which time the Texas
  42-24  Surplus Property Agency is abolished.
  42-25        (c)  The transfer required by this part includes the transfer
  42-26  of all assets, duties, powers, obligations, and liabilities,
  42-27  including contracts, leases, real or personal property, funds,
   43-1  employees, furniture, computers and other equipment, and files and
   43-2  related materials used by the Texas Surplus Property Agency.
   43-3        (d)  A form, rule, or procedure adopted by the Texas Surplus
   43-4  Property Agency that is in effect on the effective date of this
   43-5  part remains in effect on and after that date as if adopted by the
   43-6  General Services Commission until amended, repealed, withdrawn, or
   43-7  otherwise superseded by the commission.
   43-8        (e)  All unexpended appropriations made to the Texas Surplus
   43-9  Property Agency are transferred to the General Services Commission.
  43-10        (f)  Notwithstanding Subsections (b) and (e) of this section
  43-11  and Section 2.13 of this Act:
  43-12              (1)  to the extent that changes in law made by this Act
  43-13  are changes that must be approved by the federal government under
  43-14  federal law relating to surplus property as a condition of this
  43-15  state's full participation in the federal surplus property program,
  43-16  the appropriate prior law is continued in effect until the
  43-17  necessary approval is received; and
  43-18              (2)  if the abolition of the Texas Surplus Property
  43-19  Agency and the transfer of its functions under this Act must be
  43-20  approved by the federal government under federal law relating to
  43-21  surplus property  as a condition of this state's full participation
  43-22  in the federal surplus property program, the Texas Surplus Property
  43-23  Agency and the law under which it performs its functions are
  43-24  continued in effect until the necessary approval is received.
  43-25        SECTION 2.13.  The following laws are repealed:
  43-26              (1)  Chapter 32, Acts of the 62nd Legislature, Regular
  43-27  Session, 1971 (Article 6252-6b, Vernon's Texas Civil Statutes); and
   44-1              (2)  Subsections (d), (e), and (g), Section 9.04, State
   44-2  Purchasing and General Services Act (Article 601b, Vernon's Texas
   44-3  Civil Statutes).
   44-4        SECTION 2.14.  This part takes effect September 1, 1993,
   44-5  except that:
   44-6              (1)  the amendment to Subsection (a), Section 403.271,
   44-7  Government Code, takes effect when Subchapter L, Chapter 403,
   44-8  Government Code, as added by Section 2.30, Chapter 8, Acts of the
   44-9  72nd Legislature, 2nd Called Session, 1991, takes effect; and
  44-10              (2)  the amendment to Subsection (a), Section 8.01,
  44-11  State Purchasing and General Services Act (Article 601b, Vernon's
  44-12  Texas Civil Statutes), does not take effect if on or before
  44-13  September 1, 1993, Article 8, State Purchasing and General Services
  44-14  Act (Article 601b, Vernon's Texas Civil Statutes), is repealed on
  44-15  certification by the comptroller of the implementation of the fixed
  44-16  asset component of the uniform statewide accounting system, in
  44-17  accordance with Subsection (d), Section 6.01, Chapter 8, Acts of
  44-18  the 72nd Legislature, 2nd Called Session, 1991.
  44-19                            PART 3.  TRAVEL
  44-20        SECTION 3.01.  Section 14.01, State Purchasing and General
  44-21  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  44-22  amended to read as follows:
  44-23        Sec. 14.01.  Division.  The travel division of the commission
  44-24  is composed of the central travel office and the office of vehicle
  44-25  fleet maintenance.  The commission shall adopt rules to implement
  44-26  this article, including rules related to:
  44-27              (1)  the structure of travel agency contracts that the
   45-1  commission makes;
   45-2              (2)  the procedures the commission uses in requesting
   45-3  and evaluating bids or proposals for travel agency contracts from
   45-4  providers; <and>
   45-5              (3)  the use of negotiated contract rates for travel
   45-6  services by state agencies; and
   45-7              (4)  exemptions from the prohibition prescribed by
   45-8  Section 14.02(d) of this article.
   45-9        SECTION 3.02.  Subsections (b) and (c), Section 14.02, State
  45-10  Purchasing and General Services Act (Article 601b, Vernon's Texas
  45-11  Civil Statutes), are amended to read as follows:
  45-12        (b)  The central travel office shall initially provide
  45-13  services to designated agencies located in Travis County and shall
  45-14  extend its services to all state agencies as it develops the
  45-15  capability to do so.  The office may negotiate contracts with
  45-16  private travel agents, with travel and transportation providers,
  45-17  and with credit card companies that provide travel services and
  45-18  other benefits to the state.  The commission shall make contracts
  45-19  with more than one provider of travel agency services.  Contracts
  45-20  entered into under this section are not subject to the competitive
  45-21  bidding requirements imposed under Article 3 of this Act.  The
  45-22  comptroller of public accounts shall audit travel vouchers in
  45-23  accordance with Chapter 403, Government Code, and its subsequent
  45-24  amendments, for compliance with <of> rules adopted to enforce the
  45-25  provisions of this section.
  45-26        (c)  State agencies in the executive branch of state
  45-27  government shall participate in accordance with commission rules in
   46-1  the commission's contracts for travel services.  Institutions<,
   46-2  provided that institutions> of higher education as defined by
   46-3  Section 61.003, Education Code, shall not be required to
   46-4  participate in the commission's contracts for travel agency
   46-5  services or other travel services purchased from funds other than
   46-6  general revenue funds or educational and general funds as defined
   46-7  by Section 51.009, Education Code.  The commission may provide by
   46-8  rule for exemptions from required participation.  Agencies of the
   46-9  state that are not required to participate in commission contracts
  46-10  for travel services may participate as provided by Subsection (a)
  46-11  of this section.
  46-12        SECTION 3.03.  Section 14.02, State Purchasing and General
  46-13  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  46-14  amended by adding Subsections (d) and (e) to read as follows:
  46-15        (d)  This subsection applies only to a state agency in the
  46-16  executive branch of state government that is required to
  46-17  participate in the commission's contracts for travel services.
  46-18  Except as provided by commission rule, a state agency may not:
  46-19              (1)  purchase commercial airline or rental car
  46-20  transportation if the amount of the purchase exceeds the amount of
  46-21  the central travel office's contracted fares or rates; or
  46-22              (2)  reimburse a person for the purchase of commercial
  46-23  airline or rental car transportation for the amount that exceeds
  46-24  the amount of the central travel office's contracted fares or
  46-25  rates.
  46-26        (e)  The commission shall educate state agencies about
  46-27  Subsection (d) of this section.  The comptroller shall audit travel
   47-1  vouchers in accordance with Chapter 403, Government Code, and its
   47-2  subsequent amendments, for compliance with Subsection (d) of this
   47-3  section.  To facilitate the audit of the travel vouchers, the
   47-4  commission shall consult with the comptroller before the commission
   47-5  adopts rules or procedures under Subsection (d) of this section.
   47-6        SECTION 3.04.  This part takes effect September 1, 1993,
   47-7  except that Sections 3.01 and 3.03 of this part take effect January
   47-8  1, 1994.
   47-9                             PART 4.  MAIL
  47-10        SECTION 4.01.  Article 11, State Purchasing and General
  47-11  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  47-12  amended by adding Section 11.021 to read as follows:
  47-13        Sec. 11.021.  OUTGOING FIRST-CLASS MAIL.  (a)  This section
  47-14  applies only to outgoing first-class mail practices of state
  47-15  agencies located in Travis County.
  47-16        (b)  The commission shall evaluate the outgoing first-class
  47-17  mail practices of state agencies located in Travis County,
  47-18  including the lists, systems, and formats used to create mail.  The
  47-19  commission shall adopt rules for the state agencies to implement
  47-20  this section.
  47-21        (c)  The commission shall achieve the maximum available
  47-22  discount on postal rates in all cases in which acceptable levels of
  47-23  timeliness, security, and quality of service can be maintained
  47-24  notwithstanding the discounted rate.
  47-25        (d)  A state agency to which this section applies shall
  47-26  consult with the commission before the agency may:
  47-27              (1)  purchase, upgrade, or sell mail processing
   48-1  equipment;
   48-2              (2)  contract with a private entity for mail
   48-3  processing; or
   48-4              (3)  take actions that significantly affect the
   48-5  agency's first-class mail practices.
   48-6        (e)  The commission by interagency contract shall establish a
   48-7  fee-for-service structure to charge and collect fees from each
   48-8  state agency to which this section applies for the commission's
   48-9  services under this section.  The total amount charged a state
  48-10  agency under this section shall not exceed the amount of the
  48-11  agency's appropriated funds for outgoing first-class mail, as
  48-12  determined by the Legislative Budget Board, minus the agency's
  48-13  fixed costs for these services.  The commission shall transfer to
  48-14  the general revenue fund the amount of a fee charged a state agency
  48-15  under this subsection that is greater than the amount of the
  48-16  commission's actual expenses for performing services for the
  48-17  agency.
  48-18        (f)  The commission shall adopt and distribute to each state
  48-19  agency to which this section applies guidelines by which state
  48-20  outgoing first-class mail practices may be measured and analyzed,
  48-21  using, to the extent possible, the services of the United States
  48-22  Postal Service.  The commission shall review and update these
  48-23  guidelines not less often than once every two years after the date
  48-24  of the adoption of the guidelines.  Not later than the 90th day
  48-25  after the date of the distribution of the initial guidelines and
  48-26  not less often than annually after the date of that distribution,
  48-27  the commission shall provide training to state agency personnel who
   49-1  handle first-class mail.  The commission, to the extent possible,
   49-2  may use the free training provided by the United States Postal
   49-3  Service.
   49-4        (g)  If the commission determines that the upgrade of
   49-5  existing mail production or processing equipment or the purchase of
   49-6  new mail production or processing equipment is required to improve
   49-7  the outgoing first-class mail practices of the commission or other
   49-8  state agencies located in Travis County, the commission shall
   49-9  prepare a cost-benefit analysis demonstrating that the upgrade or
  49-10  purchase is more cost-effective than contracting with a private
  49-11  entity to provide that equipment or mail service.  The commission
  49-12  shall approve the most cost-effective method.
  49-13        (h)  A cost-benefit analysis prepared under this section and
  49-14  a request for bids or a request for proposals prepared to implement
  49-15  a course of action under this section shall be sent to the state
  49-16  auditor for review and comment as soon as practicable after
  49-17  preparation.  The state auditor's office shall perform its review
  49-18  and offer its comments not later than the 14th working day after
  49-19  the day it receives the analysis or the request for bids or
  49-20  proposals.
  49-21        (i)  Not later than February 1, 1995, the commission shall
  49-22  report to the legislature all significant changes in first-class
  49-23  mail practices under this section.  The report shall include a
  49-24  discussion of funds transferred to the general revenue fund under
  49-25  Subsection (e) of this section.  This subsection expires June 1,
  49-26  1995.
  49-27        SECTION 4.02.  This part takes effect immediately.
   50-1                          PART 5.  EMERGENCY
   50-2        SECTION 5.01.  The importance of this legislation and the
   50-3  crowded condition of the calendars in both houses create an
   50-4  emergency and an imperative public necessity that the
   50-5  constitutional rule requiring bills to be read on three several
   50-6  days in each house be suspended, and this rule is hereby suspended,
   50-7  and that this Act take effect and be in force according to its
   50-8  terms, and it is so enacted.