73R10908 E
          By Haley                                               S.B. No. 381
          Substitute the following for S.B. No. 381:
          By Eckels                                          C.S.S.B. No. 381
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the acquisition or provision of goods, services, and
    1-3  records by the state.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5              PART 1.  GENERAL STATE ACQUISITION PROCESS
    1-6        SECTION 1.01.  Section 2, Texas Public Finance Authority Act
    1-7  (Article 601d, Vernon's Texas Civil Statutes), is amended to read
    1-8  as follows:
    1-9        Sec. 2.  PURPOSE.  The purpose of this Act is to provide a
   1-10  method of financing:
   1-11              (1)  for the acquisition or construction of buildings
   1-12  in Travis County, Texas; and
   1-13              (2)  for the purchase or lease of equipment by state
   1-14  agencies in the executive or judicial branch of state government.
   1-15        SECTION 1.02.  Section 9A(a), Texas Public Finance Authority
   1-16  Act (Article 601d, Vernon's Texas Civil Statutes), is amended to
   1-17  read as follows:
   1-18        (a)  The authority may issue and sell obligations for the
   1-19  financing of a lease or other agreement so long as the agreement
   1-20  concerns equipment that a state agency in the executive or judicial
   1-21  branch of state government has purchased or leased or intends to
   1-22  purchase or lease.  The authority's power to issue obligations
   1-23  includes the power to issue and sell obligations for the financing
   1-24  of a package of agreements involving one or more state agencies.
    2-1        SECTION 1.03.  Section 1(3), Chapter 454, Acts of the 65th
    2-2  Legislature, Regular Session, 1977 (Article 6252-11c, Vernon's
    2-3  Texas Civil Statutes), is amended to read as follows:
    2-4              (3)  "State agency" has the meaning assigned by Section
    2-5  1.02, State Purchasing and General Services Act (Article 601b,
    2-6  Vernon's Texas Civil Statutes) <means a state department,
    2-7  commission, board, office, institution, facility, or other agency
    2-8  the jurisdiction of which is not limited to a geographical portion
    2-9  of the state.  The term includes a university system and an
   2-10  institution of higher education as defined in Section 61.003,
   2-11  Education Code.  The term does not include a public junior
   2-12  college>.
   2-13        SECTION 1.04.  Subchapter C, Chapter 403, Government Code, is
   2-14  amended by adding Section 403.039 to read as follows:
   2-15        Sec. 403.039.  TEXAS IDENTIFICATION NUMBER SYSTEM.  (a)  The
   2-16  comptroller shall assign a Texas Identification Number, based on
   2-17  the comptroller's taxpayer identification number system, to each
   2-18  person, other than a state employee, who supplies property or
   2-19  services to the state for compensation or reimbursement.
   2-20        (b)  The Texas Identification Number system shall be used by
   2-21  each state agency as the primary identification system for persons,
   2-22  other than state employees, who supply property or services to the
   2-23  agency for compensation or reimbursement.  The agency may assign
   2-24  secondary numbers if the secondary numbering system does not
   2-25  unnecessarily create duplication of data bases, efforts, or costs.
   2-26        (c)  All state agencies shall cooperate with the comptroller
   2-27  to convert existing relevant identification systems to the Texas
    3-1  Identification Number system.  The comptroller may adopt rules
    3-2  governing the conversion to and the administration of the Texas
    3-3  Identification Number system, including rules on the procedure for
    3-4  applying for a number under the system.
    3-5        (d)  In this section, "state agency" means any department,
    3-6  commission, board, office, or other agency in the executive,
    3-7  legislative, or judicial branch of state government, including an
    3-8  institution of higher education.
    3-9        SECTION 1.05.  The comptroller shall begin implementation of
   3-10  the Texas Identification Number system, as added by Section 1.04 of
   3-11  this part, as soon as practicable.  A state agency may phase in its
   3-12  use of the system but shall fully implement the system not later
   3-13  than September 1, 1998.
   3-14        SECTION 1.06.  Section 1.02(3), 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              (3)  "Historically underutilized <Disadvantaged>
   3-18  business" means:
   3-19                    (A)  a corporation formed for the purpose of
   3-20  making a profit in which at least 51 percent of all classes of the
   3-21  shares of stock or other equitable securities are owned by one or
   3-22  more persons who are socially disadvantaged because of their
   3-23  identification as members of certain groups, including black
   3-24  Americans, Hispanic Americans, women, Asian Pacific Americans, and
   3-25  Native Americans, who have suffered the effects of discriminatory
   3-26  practices or similar insidious circumstances over which they have
   3-27  no control;
    4-1                    (B)  a sole proprietorship created for the
    4-2  purpose of making a profit that is 100 percent owned, operated, and
    4-3  controlled by a person described by Paragraph (A) of this
    4-4  subdivision;
    4-5                    (C)  a partnership formed for the purpose of
    4-6  making a profit in which at least 51 percent of the assets and
    4-7  interest in the partnership is owned by one or more persons
    4-8  described by Paragraph (A) of this subdivision.   Those persons
    4-9  must have a proportionate interest in the control, operation, and
   4-10  management of the partnership affairs;
   4-11                    (D)  a joint venture in which each entity in the
   4-12  joint venture is a historically underutilized <disadvantaged>
   4-13  business under this subdivision; or
   4-14                    (E)  a supplier contract between a historically
   4-15  underutilized <disadvantaged> business under this subdivision and a
   4-16  prime contractor under which the historically underutilized
   4-17  <disadvantaged> business is directly involved in the manufacture or
   4-18  distribution of the supplies or materials or otherwise warehouses
   4-19  and ships the supplies.
   4-20        SECTION 1.07.  Section 1.03, State Purchasing and General
   4-21  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   4-22  amended to read as follows:
   4-23        Sec. 1.03.  Historically underutilized <Disadvantaged>
   4-24  businesses.  (a)  The commission <Office of Small Business
   4-25  Assistance of the Texas Department of Commerce> shall certify
   4-26  businesses that are historically underutilized <disadvantaged>
   4-27  businesses.  As part of its certification procedures, the
    5-1  commission <office> may approve a municipal program that certifies
    5-2  historically underutilized <disadvantaged> businesses under
    5-3  substantially the same definition prescribed by Section 1.02(3) of
    5-4  this Act and may certify businesses certified by the municipality
    5-5  as historically underutilized <disadvantaged> businesses under this
    5-6  Act.
    5-7        (b)  The commission <office> shall compile a directory of
    5-8  businesses certified as historically underutilized <disadvantaged>
    5-9  businesses under Subsection (a) of this section.  The commission
   5-10  <office> shall update the directory at least semiannually and
   5-11  provide a copy of the directory to <the commission and> each state
   5-12  agency semiannually.  The commission shall provide access to the
   5-13  directory either electronically or in another format, depending on
   5-14  the needs of each state agency.  On request, the commission shall
   5-15  make the directory available to local governments and the public.
   5-16  The commission and state agencies shall use the directory in
   5-17  determining awards of state purchasing and public works contracts.
   5-18        (c)  The commission shall annually prepare a report based on
   5-19  a compilation and analysis of <commission and each state agency
   5-20  shall report to the office> the total number and dollar amount of
   5-21  contracts awarded to historically underutilized <disadvantaged>
   5-22  businesses.  The commission shall submit the report <These reports
   5-23  shall be made each January and July and shall report on the
   5-24  previous six-month period.  The office shall compile and analyze
   5-25  the reports and submit a report based on the analysis> to the
   5-26  presiding officer of each house of the legislature each February.
   5-27  The commission may require information from a state agency and may
    6-1  adopt rules to administer this subsection.  The comptroller shall
    6-2  provide information to the commission that will assist the
    6-3  commission in the performance of its duties under this subsection.
    6-4        (d)  The commission shall offer assistance and training to
    6-5  historically underutilized <disadvantaged> businesses regarding
    6-6  state procurement procedures.  The commission shall advise
    6-7  historically underutilized <disadvantaged> businesses of the
    6-8  availability of state contracts and advise historically
    6-9  underutilized <disadvantaged> businesses to enter the businesses'
   6-10  names on the state's bid list.
   6-11        (e)  The commission and each state agency shall prepare as
   6-12  part of its strategic plan under Article 6252-31, Revised Statutes,
   6-13  as added by Chapter 384, Acts of the 72nd Legislature, Regular
   6-14  Session, 1991, a written plan for increasing the commission's or
   6-15  the agency's use of historically underutilized businesses in
   6-16  purchasing and in public works contracting.  On request, the
   6-17  commission shall provide technical assistance to an agency that is
   6-18  preparing its plan under this subsection.  The plan must include:
   6-19              (1)  a policy or mission statement relating to
   6-20  increasing use of historically underutilized businesses by the
   6-21  commission or agency;
   6-22              (2)  goals to be met by the commission or agency in
   6-23  carrying out the policy or mission; and
   6-24              (3)  specific programs to be conducted by the
   6-25  commission or agency to meet the goals stated in the plan,
   6-26  including a specific program to encourage contractors to use
   6-27  historically underutilized businesses as partners and
    7-1  subcontractors.
    7-2        (f)  The commission and each state agency shall prepare an
    7-3  annual report for each fiscal year documenting progress under its
    7-4  plan for increasing use of historically underutilized businesses.
    7-5  The commission or agency shall file the report with the governor,
    7-6  lieutenant governor, and speaker of the house of representatives
    7-7  not later than December 31 of each year.
    7-8        (g)  In cooperation with the state auditor, the commission
    7-9  shall develop a standard form for reports prepared under Subsection
   7-10  (f) of this section.
   7-11        (h)  The commission shall assist the Texas Department of
   7-12  Commerce in the performance of the department's duties under
   7-13  Section 481.103, Government Code, and its subsequent amendments.
   7-14        (i)  The commission shall encourage the use of historically
   7-15  underutilized businesses by state agencies by:
   7-16              (1)  working with state agencies to establish a
   7-17  statewide policy for increasing use of historically underutilized
   7-18  businesses;
   7-19              (2)  assisting state agencies in seeking historically
   7-20  underutilized businesses capable of supplying materials and
   7-21  services that the agencies require;
   7-22              (3)  assisting state agencies in identifying and
   7-23  advising historically underutilized businesses on the types of
   7-24  goods and services needed by the agencies; and
   7-25              (4)  assisting state agencies in increasing the volume
   7-26  of business placed with historically underutilized businesses.
   7-27        SECTION 1.08.  Section 1.04(a), State Purchasing and General
    8-1  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
    8-2  amended to read as follows:
    8-3        (a)  A person commits an offense if the person intentionally
    8-4  applies as a historically underutilized <disadvantaged> business
    8-5  for an award of a purchasing contract or public works contract
    8-6  under this Act and the person knowingly does not meet the
    8-7  definition of a historically underutilized <disadvantaged> business
    8-8  under Section 1.02(3) of this Act.
    8-9        SECTION 1.09.  Article 3, State Purchasing and General
   8-10  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   8-11  amended by adding Section 3.0221 to read as follows:
   8-12        Sec. 3.0221.  COMPETITIVE SEALED PROPOSALS; ACQUISITION OF
   8-13  CERTAIN SUPPLIES, MATERIALS, EQUIPMENT, AND ROUTINE SERVICES.  (a)
   8-14  The commission may follow a procedure using competitive sealed
   8-15  proposals to acquire:
   8-16              (1)  supplies, materials, or equipment if the cost of
   8-17  acquisition is $1 million or more;
   8-18              (2)  routine services if the cost of acquisition is
   8-19  $100,000 or more;
   8-20              (3)  prototype medical equipment not yet commonly
   8-21  available on the market, without regard to its cost;
   8-22              (4)  medical equipment so new to the market that its
   8-23  benefits are not fully known, without regard to its cost; or
   8-24              (5)  major medical equipment, without regard to its
   8-25  cost, that is so technically complex or that has variable
   8-26  operations to such a degree that acquisition under competitive
   8-27  bidding is not feasible.
    9-1        (b)  Except as provided by Subsections (l) and (o) of this
    9-2  section:
    9-3              (1)  only the commission may acquire goods or services
    9-4  using competitive sealed proposals under this section; and
    9-5              (2)  the commission may not delegate authority under
    9-6  this section to a state agency.
    9-7        (c)  To acquire goods or services using competitive sealed
    9-8  proposals under this section, the commission must first determine
    9-9  in an open meeting that competitive sealed bidding or informal
   9-10  competitive bidding is not practical or is disadvantageous to the
   9-11  state.
   9-12        (d)  The commission shall solicit proposals by a request for
   9-13  proposals.  The commission shall give public notice of a request
   9-14  for proposals in the manner provided for requests for bids under
   9-15  Section 3.12 of this article.
   9-16        (e)  The commission shall consult with appropriate personnel
   9-17  of a requisitioning agency to develop specifications for a request
   9-18  for competitive sealed proposals under this section.
   9-19        (f)  The commission shall open each proposal in a manner that
   9-20  does not disclose the contents of the proposal during the process
   9-21  of negotiating with competing offerors.  The commission shall file
   9-22  each proposal in a register of proposals, which shall be open for
   9-23  public inspection after a contract is awarded unless the register
   9-24  contains information that is excepted from disclosure as an open
   9-25  record under Section 3, Chapter 424, Acts of the 63rd Legislature,
   9-26  Regular Session, 1973 (Article 6252-17a, Vernon's Texas Civil
   9-27  Statutes), and its subsequent amendments.
   10-1        (g)  As provided in a request for proposals and under rules
   10-2  adopted by the commission, the commission may discuss acceptable or
   10-3  potentially acceptable proposals with offerors to assess an
   10-4  offeror's ability to meet the solicitation requirements.  After the
   10-5  submission of a proposal but before making an award, the commission
   10-6  may permit the offeror to revise the proposal in order to obtain
   10-7  the best final offer.  The commission may not disclose any
   10-8  information derived from proposals submitted from competing
   10-9  offerors in conducting discussions under this subsection.  The
  10-10  commission shall provide each offeror with an equal opportunity for
  10-11  discussion and revision of proposals.
  10-12        (h)  The commission shall invite a requisitioning agency to
  10-13  participate in discussions conducted under Subsection (g) of this
  10-14  section.
  10-15        (i)  The commission shall make a written award of a contract
  10-16  to the offeror whose proposal is the most advantageous to the
  10-17  state, considering price and the evaluation factors in the request
  10-18  for proposals, except that if the commission finds that none of the
  10-19  offers is acceptable, it shall refuse all offers.  The contract
  10-20  file must state in writing the basis on which the award is made.
  10-21        (j)  The commission may adopt rules  and request assistance
  10-22  from other state agencies to perform its responsibilities under
  10-23  this section.
  10-24        (k)  This section does not affect Section 3.022 of this
  10-25  article regarding the use of competitive sealed proposals for
  10-26  acquiring goods or services related to telecommunications or
  10-27  automated information technology.
   11-1        (l)  The commission may delegate to an institution or other
   11-2  agency of higher education the authority to acquire under this
   11-3  section through the use of a competitive sealed proposal procedure
   11-4  the items described by Subsection (a) of this section.
   11-5        (m)  An institution or other agency of higher education to
   11-6  which the commission delegates authority under Subsection (l) of
   11-7  this section shall:
   11-8              (1)  follow commission rules and the procedures
   11-9  provided by this section regarding the use of competitive sealed
  11-10  proposals;
  11-11              (2)  before soliciting a request for proposals under
  11-12  this section, submit to the commission a written finding that
  11-13  competitive sealed bidding or informal competitive bidding is not
  11-14  practical or is disadvantageous to the state for the proposed
  11-15  acquisition;
  11-16              (3)  before awarding a contract under this section,
  11-17  submit to the commission written notice and a copy of the proposed
  11-18  award; and
  11-19              (4)  consult with a commission representative in
  11-20  developing specifications for a request for competitive sealed
  11-21  proposals under this section and in evaluating received proposals.
  11-22        (n)  The commission may:
  11-23              (1)  revoke a delegation under Subsection (l) of this
  11-24  section; or
  11-25              (2)  prohibit a particular acquisition or award by an
  11-26  institution or other agency of higher education under this section.
  11-27        (o)  Subsection (b)(1) of this section does not apply to an
   12-1  acquisition of supplies, materials, equipment, or services that is
   12-2  not subject to the requirement that it be made by the commission
   12-3  under Section 3.01 of this article.
   12-4        (p)  In this section, "institution or other agency of higher
   12-5  education" means an institution of higher education or other agency
   12-6  of higher education as those terms are defined by Section 61.003,
   12-7  Education Code, and its subsequent amendments.
   12-8        SECTION 1.10.  Section 3.101, State Purchasing and General
   12-9  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  12-10  amended to read as follows:
  12-11        Sec. 3.101.  Centralized Master Bidders List <lists>.
  12-12  (a)  This section:
  12-13              (1)  applies to all purchases or other acquisitions
  12-14  under this article, including the acquisition of services, for
  12-15  which competitive bidding or competitive sealed proposals are
  12-16  required;
  12-17              (2)  applies to each <all> state agency <agencies> that
  12-18  makes <make> purchases or other acquisitions under this article,
  12-19  including the commission and agencies that make purchases or other
  12-20  acquisitions under Section 3.06 of this article; and
  12-21              (3)  does not apply to purchases or other acquisitions
  12-22  made by the commission under Section 3.11 of this article.
  12-23        (b)  The commission shall develop a uniform registration form
  12-24  for application to do business with the commission or with any
  12-25  state agency.  The commission and each state agency shall make the
  12-26  form available to applicants.  The form shall include an
  12-27  application for:
   13-1              (1)  certification as a historically underutilized
   13-2  business;
   13-3              (2)  a payee identification number for use by the
   13-4  comptroller; and
   13-5              (3)  placement on the commission's master bidders list.
   13-6        (c)  A state agency shall submit to the commission each
   13-7  uniform registration form that it receives.  The commission shall
   13-8  send to the comptroller a copy of each uniform registration form.
   13-9        (d)  The commission <The registration forms shall constitute
  13-10  a valid application for a bidders list by all state agencies.
  13-11  Nothing in this subsection shall be construed as preventing any
  13-12  state agency from developing and using its own registration form,
  13-13  but such forms shall not be required in addition to or in lieu of
  13-14  the uniform registration form developed by the commission.>
  13-15        <(c)  Each state agency> shall maintain a master bidders list
  13-16  and annually register on the list the name and address of each
  13-17  vendor that applies for registration in accordance with rules
  13-18  adopted under this section.  The commission <An agency> may include
  13-19  other relevant vendor information on the list.  Each state agency
  13-20  shall solicit bids or proposals from all eligible vendors on the
  13-21  list that serve the agency's geographic region, as provided by this
  13-22  section, when the agency proposes to make a purchase or other
  13-23  acquisition that will cost more than $15,000 <$5,000>.  The
  13-24  commission shall maintain the master bidders list in a manner that
  13-25  facilitates a state agency's solicitation of vendors that serve the
  13-26  agency's geographic area.
  13-27        (e)  The commission shall make the master bidders list
   14-1  available to each state agency that makes purchases or other
   14-2  acquisitions to which this section applies.  The commission shall
   14-3  provide access to the list either electronically or in another
   14-4  format, depending on the needs of each state agency.
   14-5        (f)  The commission <(d)  A state agency> may charge
   14-6  applicants for registration a fee and may charge registrants an
   14-7  annual renewal fee in an amount designed to recover the
   14-8  commission's <agency's> costs in developing and maintaining the
   14-9  master <its> bidders list and in soliciting bids or proposals under
  14-10  this section.  The commission <An agency> shall set the amount of
  14-11  the fees by rule.
  14-12        (g)  The commission <(e)  Each state agency> shall adopt
  14-13  procedures for developing and maintaining the master <its> bidders
  14-14  list and procedures for removing inactive vendors from the list.
  14-15        (h)  The commission <(f)  Each state agency> shall establish
  14-16  by rule a vendor classification process under which only vendors
  14-17  that may be able to make a bid or proposal on a particular purchase
  14-18  or other acquisition are solicited under this section.
  14-19        (i)  A state agency may maintain and use its own bidders list
  14-20  only if the commission determines by rule that the agency has
  14-21  specialized needs that can best be met through maintaining and
  14-22  using its own specialized bidders list.  The commission by rule may
  14-23  prescribe the categories of purchases or other acquisitions for
  14-24  which an agency's specialized bidders list may be used.
  14-25        (j) <(g)>  The commission may establish by rule a process
  14-26  under which the requirement for soliciting bids or proposals from
  14-27  eligible vendors on a <the> bidders list may be waived for
   15-1  appropriate state agencies or appropriate purchases or other
   15-2  acquisitions in circumstances in which the requirement is not
   15-3  warranted.  The commission also may assist state agencies regarding
   15-4  issues that arise under this section.
   15-5        SECTION 1.11.  Article 3, State Purchasing and General
   15-6  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   15-7  amended by adding Section 3.081 to read as follows:
   15-8        Sec. 3.081.  CATALOGUE PURCHASE PROCEDURE.  (a)  A vendor who
   15-9  wants to sell or lease automated information systems under this
  15-10  section to state agencies covered by the Information Resources
  15-11  Management Act (Article 4413(32j), Revised Statutes) shall apply to
  15-12  the commission for designation as a "qualified information systems
  15-13  vendor" according to an application process promulgated by the
  15-14  commission.  At a minimum, the application process shall include
  15-15  submission of the following elements:
  15-16              (1)  a catalogue containing all products and services
  15-17  eligible for purchase by state agencies, including descriptions of
  15-18  each product or service, the list price of each product or service,
  15-19  and the price to Texas state agencies of each product or service;
  15-20              (2)  a maintenance, repair, and support plan for all
  15-21  eligible products and services;
  15-22              (3)  proof of the applicant's financial resources and
  15-23  ability to perform; and
  15-24              (4)  a guarantee that the vendor will make available
  15-25  equivalent replacement parts for products sold to Texas for at
  15-26  least three years from the date of a product's discontinuation.
  15-27        (b)  Within 90 days after the effective date of the law
   16-1  enacting this section the commission shall establish standards and
   16-2  criteria for designating qualified information systems vendors on a
   16-3  regional and statewide basis.  A vendor remains qualified until the
   16-4  commission determines the vendor fails to meet the criteria set
   16-5  forth in this section.  Vendors granted regional status may sell
   16-6  catalogue-listed products and services directly to state agencies
   16-7  covered by the Information Resources Management Act (Article
   16-8  4413(32j), Revised Statutes) within a region defined by the
   16-9  commission.  Vendors granted statewide status may sell
  16-10  catalogue-listed products and services directly to any state agency
  16-11  covered by the Information Resources Management Act (Article
  16-12  4413(32j), Revised Statutes).  The commission's standards and
  16-13  criteria shall be developed in accordance with the following
  16-14  parameters:
  16-15              (1)  the ability of the vendor to provide adequate and
  16-16  reliable support and maintenance;
  16-17              (2)  the vendor's ability to provide adequate and
  16-18  reliable support and maintenance in the future;
  16-19              (3)  the technical adequacy and reliability of the
  16-20  vendor's products; and
  16-21              (4)  consistency with standards adopted by the
  16-22  Department of Information Resources or a subsequent entity.
  16-23        (c)  If a vendor is designated by the commission as a
  16-24  qualified information systems vendor, the vendor shall publish and
  16-25  maintain a catalogue containing all products and services eligible
  16-26  for purchase by state agencies, including descriptions of each
  16-27  product or service, the list price of each product or service, and
   17-1  the price to Texas state agencies of each product or service.  The
   17-2  vendor shall update the catalogue on an as needed basis to reflect
   17-3  changes in price or the availability of products or services and
   17-4  shall forward a copy of each updated catalogue to the commission
   17-5  and all eligible purchasers.
   17-6        (d)  A state agency covered by the Information Resources
   17-7  Management Act (Article 4413(32j), Revised Statutes) may purchase
   17-8  or lease automated information systems directly from a qualified
   17-9  information systems vendor and may negotiate additional terms and
  17-10  conditions to be included in contracts relating to the purchase or
  17-11  lease, provided the purchase or lease is based on the best value
  17-12  available and is in the state's best interest.  In determining
  17-13  which products or services are in the state's best interest, the
  17-14  agency shall consider the following factors:
  17-15              (1)  installation costs and hardware costs;
  17-16              (2)  the overall life cycle cost of the system or
  17-17  equipment;
  17-18              (3)  estimated cost of employee training and estimated
  17-19  increase in employee productivity;
  17-20              (4)  estimated software and maintenance costs; and
  17-21              (5)  compliance with applicable statewide standards
  17-22  adopted by the Department of Information Resources or a subsequent
  17-23  entity as validated by criteria established by the department or a
  17-24  subsequent entity in administrative rule.
  17-25        (e)  The commission shall establish rules and regulations and
  17-26  implement the catalogue purchase procedure set forth in this
  17-27  section no later than January 1, 1994.
   18-1        (f)  Purchases of automated information systems shall be made
   18-2  through the catalogue procedure enumerated in this section unless
   18-3  the commission determines that the best value available accrues
   18-4  from an alternative purchase method authorized by this Act.
   18-5        SECTION 1.12.  Section 1.02, State Purchasing and General
   18-6  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   18-7  amended by adding Subdivisions (4), (5), and (6) to read as
   18-8  follows:
   18-9              (4)  "Automated information systems" means any
  18-10  automated information systems, the computers on which they are
  18-11  automated, or a service related to the automation of information
  18-12  systems or the computers on which they are automated, including
  18-13  computer software, awarded to a vendor by a state agency covered by
  18-14  the Information Resources Management Act (Article 4413(32j),
  18-15  Revised Statutes), or any telecommunications apparatus or device
  18-16  that serves as a component of a voice, data, or video
  18-17  communications network for the purpose of transmitting, switching,
  18-18  routing, multiplexing, modulating, amplifying, or receiving signals
  18-19  on that network.
  18-20              (5)  "Best value" means lowest overall cost of
  18-21  information systems based on the following factors including, but
  18-22  not limited to:
  18-23                    (A)  purchase price;
  18-24                    (B)  compatibility to facilitate exchange of
  18-25  existing data;
  18-26                    (C)  capacity for expansion and upgrading to more
  18-27  advanced levels of technology;
   19-1                    (D)  quantitative reliability factors;
   19-2                    (E)  the level of training required to bring
   19-3  end-users to a stated level of proficiency;
   19-4                    (F)  the technical support requirements for
   19-5  maintenance of data across a network platform and management of the
   19-6  network's hardware and software; and
   19-7                    (G)  compliance with applicable statewide
   19-8  standards adopted by the Department of Information Resources or a
   19-9  subsequent entity as validated by criteria established by the
  19-10  department or a subsequent entity in administrative rule.
  19-11              (6)  "Qualified information systems vendor" means
  19-12  manufacturers or wholesale sellers of automated information systems
  19-13  who are authorized by the commission to publish catalogues of
  19-14  products and services which may be directly purchased by state
  19-15  agencies covered by the Information Resources Management Act
  19-16  (Article 4413(32j), Revised Statutes).
  19-17        SECTION 1.13.  Section 3.15(h), State Purchasing and General
  19-18  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  19-19  amended to read as follows:
  19-20        (h)  This section does not apply to interagency purchases or
  19-21  transactions.   Interagency purchases and transactions must be
  19-22  accomplished on special vouchers or electronically as prescribed by
  19-23  the comptroller <of public accounts.  The commission shall audit
  19-24  all interagency purchases and transactions after they have been
  19-25  completed>.
  19-26        SECTION 1.14.  Section 5.16(c), State Purchasing and General
  19-27  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   20-1  amended to read as follows:
   20-2        (c)  A project analysis shall consist of (1) a complete
   20-3  description of the facility or project together with a
   20-4  justification of such facility or project prepared by the using
   20-5  agency, (2) a detailed estimate of the amount of space needed to
   20-6  meet the needs of the using agency and to allow for realistic
   20-7  future growth, (3) a description of the proposed facility prepared
   20-8  by an architect/engineer and including schematic plans and outline
   20-9  specifications describing the type of construction and probable
  20-10  materials to be used, sufficient to establish the general scope and
  20-11  quality of construction, (4) an estimate of the probable cost of
  20-12  construction, (5) a description of the proposed site of the project
  20-13  and an estimate of the cost of site preparation, (6) an overall
  20-14  estimate of the cost of the project, (7) the information about
  20-15  historic structures considered instead of new construction that was
  20-16  prepared as required by Section 5.01A of this article, <and> (8) an
  20-17  evaluation of energy alternatives as required by Section 5.161 of
  20-18  this article, and (9) other information as required by the
  20-19  commission.  A project analysis may include two or more alternative
  20-20  proposals for meeting the space needs of the using agency by (1)
  20-21  new construction, (2) acquisition and rehabilitation of an existing
  20-22  or historic structure, or (3) a combination of the above.  If any
  20-23  part of the project involves the construction or rehabilitation of
  20-24  a building that is to be used primarily as a parking garage or for
  20-25  office space for the state government, the project analysis also
  20-26  shall include a description of the amount and location of space in
  20-27  the building that can be made available for lease, under Section
   21-1  4.15 of this Act, to private tenants or shall include a statement
   21-2  of the reason that the lease of space in the building to private
   21-3  tenants is not feasible.  All estimates involved in the preparation
   21-4  of a project analysis shall be carefully and fully documented and
   21-5  incorporated into the project analysis.
   21-6        Throughout the preparation of the project analysis, the
   21-7  commission and any private architect/engineer employed by the
   21-8  commission shall work closely and cooperatively with the using
   21-9  agency to the end that the project analysis shall fully reflect the
  21-10  needs of the using agency.
  21-11        The using agency shall use the cost of the project as
  21-12  determined by such project analysis as the basis of its request to
  21-13  the budget offices of this state.
  21-14        SECTION 1.15.  Article 5, State Purchasing and General
  21-15  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  21-16  amended by adding Section 5.161 to read as follows:
  21-17        Sec. 5.161.  EVALUATION OF ENERGY ALTERNATIVES.  (a)  For
  21-18  each project for which a project analysis is prepared under Section
  21-19  5.16 of this article, and for which the construction, alteration,
  21-20  or repair involves installing or replacing all or part of an energy
  21-21  system, energy source, or energy-consuming equipment, the
  21-22  commission, or the private architect/engineer employed by the
  21-23  commission, shall prepare a written evaluation of energy
  21-24  alternatives for the project.
  21-25        (b)  An evaluation prepared under this section shall include
  21-26  information about the economic and environmental impact of various
  21-27  energy alternatives, including an evaluation of economic and
   22-1  environmental costs both initially and over the life of the system,
   22-2  source, or equipment.
   22-3        (c)  An evaluation under this section shall identify the best
   22-4  energy alternative for the project considering both economic and
   22-5  environmental costs and benefits.
   22-6        SECTION 1.16.  Section 5.22, State Purchasing and General
   22-7  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   22-8  amended by amending Subsection (b) and adding Subsection (d) to
   22-9  read as follows:
  22-10        (b)  Responsibility for the selection of a private
  22-11  architect/engineer employed for any project covered by the
  22-12  provisions of this article shall be vested in the commission.  The
  22-13  commission shall adopt rules that state the criteria the commission
  22-14  uses to evaluate the competence and qualifications of private
  22-15  architects/engineers.  The commission shall develop the rules in
  22-16  consultation with the Texas Board of Architectural Examiners and
  22-17  the State Board of Registration for Professional Engineers.  Except
  22-18  in an emergency, the <The> commission shall allow each private
  22-19  architect/engineer selected for an interview at least 30 days after
  22-20  the date the commission notifies the architect/engineer to prepare
  22-21  for the interview.
  22-22        (d)  In this section, an emergency is a situation that:
  22-23              (1)  presents an imminent peril to the public health,
  22-24  safety, or welfare;
  22-25              (2)  presents an imminent peril to property;
  22-26              (3)  requires expeditious action to prevent a hazard to
  22-27  life, health, safety, welfare, or property; or
   23-1              (4)  requires expeditious action to avoid undue
   23-2  additional cost to a state agency or the state.
   23-3        SECTION 1.17.  Section 5.26(b), State Purchasing and General
   23-4  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   23-5  amended to read as follows:
   23-6        (b)  The commission shall cause the uniform general
   23-7  conditions of state building construction contracts to be reviewed
   23-8  whenever in its opinion such review is desirable, but in no event
   23-9  less frequently than once every five years.  The review shall be
  23-10  made by a committee appointed by the commission consisting of the
  23-11  director of facilities construction and space management, who shall
  23-12  serve ex officio as chairman of the committee and who shall vote
  23-13  only in the event of a tie; one person <two persons> appointed by
  23-14  the commission from a list of nominees submitted to it by the
  23-15  President of the Texas Society of Architects; one person <two
  23-16  persons> appointed by the commission from a list of nominees
  23-17  submitted to it by the President of the Texas Society of
  23-18  Professional Engineers; one person <two persons> appointed by the
  23-19  commission from a list of nominees submitted to it by the Chairman
  23-20  of the Executive Council of the Texas Associated General
  23-21  Contractors Chapters; one person <and two persons> appointed by the
  23-22  commission from the list of nominees submitted to it by the
  23-23  Executive Secretary of the Mechanical Contractors Associations of
  23-24  Texas, Incorporated; one person appointed by the commission from a
  23-25  list of nominees submitted to it by the Executive Secretary of the
  23-26  Texas Building and Construction Trades Council; one person
  23-27  appointed by the commission from a list of nominees submitted to it
   24-1  by the President of the Associated Builders and Contractors of
   24-2  Texas; one person residing in Texas appointed by the commission
   24-3  from a list of nominees submitted by the Executive Director of the
   24-4  National Association of Minority Contractors; one person appointed
   24-5  by the commission representing an institution of higher education,
   24-6  as defined by Section 61.003, Education Code; one person appointed
   24-7  by the commission representing a state agency that has a
   24-8  substantial on-going construction program; and one person appointed
   24-9  by the commission representing the attorney general's office.
  24-10  Members of any review committee appointed pursuant to this
  24-11  subsection shall serve without compensation but may be reimbursed
  24-12  for their necessary and actual expenses.
  24-13        SECTION 1.18.  Section 5.36, State Purchasing and General
  24-14  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  24-15  amended to read as follows:
  24-16        Sec. 5.36.  Public works contracts with certain businesses.
  24-17  A state agency that enters into a contract for a project, including
  24-18  a project constructed by or for an agency otherwise excepted under
  24-19  Section 5.13 of this article, shall make a good faith effort to
  24-20  assist historically underutilized <disadvantaged> businesses to
  24-21  receive at least 10 percent of the total value of each construction
  24-22  contract award that the agency expects to make in its fiscal year.
  24-23  Each agency shall estimate the expected total value of contract
  24-24  awards under this article not later than the 60th day of its fiscal
  24-25  year and may revise the estimate as new information requires.
  24-26        SECTION 1.19.  Section 6.01, State Purchasing and General
  24-27  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   25-1  amended to read as follows:
   25-2        Sec. 6.01.  Definition.  In this article, "space" means
   25-3  office space, warehouse space, laboratory space, storage space
   25-4  exceeding 1,000 gross square feet, or any combination thereof, but
   25-5  does not include aircraft hangar space, radio antenna space, boat
   25-6  storage space, vehicle parking space, residential space for a Texas
   25-7  Department of Mental Health and Mental Retardation program,
   25-8  residential space for a Texas Youth Commission program, or space to
   25-9  be utilized for less than one month for meetings, conferences,
  25-10  seminars, conventions, displays, examinations, auctions, or other
  25-11  similar purposes.
  25-12        SECTION 1.20.  Article 6, State Purchasing and General
  25-13  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  25-14  amended by adding Section 6.021 to read as follows:
  25-15        Sec. 6.021.  SPACE USE STUDY; LIMITATION ON ALLOCATION OF
  25-16  SPACE.  (a)  The commission periodically shall conduct a study to
  25-17  determine the space requirements of various state agencies that
  25-18  occupy space under the commission's charge and control, including
  25-19  state-owned space and space leased from other sources.
  25-20        (b)  The commission shall use the results of the study to:
  25-21              (1)  determine the optimal amount of space required for
  25-22  various state agency uses; and
  25-23              (2)  allocate space to state agencies in the best and
  25-24  most efficient manner possible.
  25-25        (c)  The commission may not allocate space to a state agency
  25-26  as defined in Articles I and II of the General Appropriations Act
  25-27  that exceeds an average of 153 square feet for each agency employee
   26-1  for each agency site for usable office space as defined by the
   26-2  General Services Commission, with the exception of an agency site
   26-3  at which 15 or fewer employees are located, insofar as possible
   26-4  without sacrifice of critical public or client services by the end
   26-5  of the 1994-1995 biennium.  This subsection does not apply to:
   26-6              (1)  warehouse space;
   26-7              (2)  laboratory space;
   26-8              (3)  storage space exceeding 1,000 gross square feet;
   26-9  or
  26-10              (4)  another type of space specified by commission
  26-11  rule, if the commission determines that it is not practical to
  26-12  apply this subsection to the specified space.
  26-13        (d)  The commission shall conduct a study under this section
  26-14  at least once during each state fiscal biennium.
  26-15        (e)  This section does not apply to space that is not
  26-16  occupied by a state agency as defined by Section 1.02 of this Act.
  26-17        SECTION 1.21.  Section 10.05, State Purchasing and General
  26-18  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  26-19  amended to read as follows:
  26-20        Sec. 10.05.  Sharing of services or facilities.
  26-21  (a)  Telecommunications facilities and services, to the extent
  26-22  feasible and desirable, shall be provided on an integrated or
  26-23  shared basis, or both, to avoid waste of state funds and manpower.
  26-24        (b)  The commission, the Department of Information Resources,
  26-25  and the comptroller shall develop, in coordination with The Texas
  26-26  A&M University System, The University of Texas System, other
  26-27  institutions of higher education, and other state agencies, a plan
   27-1  for a state telecommunications network that will effectively and
   27-2  efficiently meet the long-term voice, video, and computer
   27-3  communications requirements of state government.  The plan should
   27-4  recognize that all state agencies and institutions of higher
   27-5  education are a single entity for purposes of purchasing and
   27-6  determining tariffs.  The plan shall incorporate efficiencies
   27-7  obtained through the use of shared transmission services and open
   27-8  systems architecture as they become available, building on existing
   27-9  systems as appropriate, and the developers of the plan shall make
  27-10  use of the technical expertise of the institutions of higher
  27-11  education and state agencies.  The commission, department, and
  27-12  comptroller shall present to the governor and the legislature a
  27-13  comprehensive summary of the plan and its implementation schedule
  27-14  before September 1, 1994.
  27-15        SECTION 1.22.  Section 10.09(d), State Purchasing and General
  27-16  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  27-17  amended to read as follows:
  27-18        (d)  The commission shall prepare and issue a revised
  27-19  centralized telephone service directory not later than March 31 <in
  27-20  February> of each year.
  27-21        SECTION 1.23.  Chapter 417, Government Code, is amended by
  27-22  adding Section 417.0081 to read as follows:
  27-23        Sec. 417.0081.  INSPECTION OF CERTAIN STATE-OWNED BUILDINGS.
  27-24  The state fire marshal, at the commission's direction, shall
  27-25  periodically inspect public buildings under the charge and control
  27-26  of the General Services Commission and shall take any action
  27-27  authorized by the commission to protect the buildings and their
   28-1  occupants from an existing or threatened fire hazard.
   28-2        SECTION 1.24.  Subchapter A, Chapter 419, Government Code, is
   28-3  amended by adding Section 419.0081 to read as follows:
   28-4        Sec. 419.0081.  PROTECTION OF CERTAIN STATE-OWNED BUILDINGS
   28-5  AGAINST FIRE HAZARDS.  (a)  The commission shall take any action
   28-6  necessary to protect a public building under the charge and control
   28-7  of the General Services Commission, and the building's occupants,
   28-8  against an existing or threatened fire hazard.
   28-9        (b)  The commission and the General Services Commission shall
  28-10  make and each adopt by rule a memorandum of understanding that
  28-11  coordinates the agencies' duties under this section.
  28-12        SECTION 1.25.  Section 771.002, Government Code, is amended
  28-13  to read as follows:
  28-14        Sec. 771.002.  Definitions.  In this chapter:
  28-15              (1)  "Agency" includes:
  28-16                    (A)  a department, board, bureau, commission,
  28-17  court, office, authority, council, or institution;
  28-18                    (B)  a university, college, or any service or
  28-19  part of a state institution of higher education; and
  28-20                    (C)  any statewide job or employment training
  28-21  program for disadvantaged youth that is substantially financed by
  28-22  federal funds and that was created by executive order not later
  28-23  than December 30, 1986.
  28-24              (2)  <"Commission" means the State Purchasing and
  28-25  General Services Commission.>
  28-26              <(3)>  "Resources" means materials and<,> equipment<,
  28-27  and supplies>.
   29-1              (3) <(4)>  "Services" means special or technical
   29-2  services, including the services of employees.
   29-3        SECTION 1.26.  Section 771.004(a), Government Code, is
   29-4  amended to read as follows:
   29-5        (a)  Before a state agency may provide <furnish> or receive a
   29-6  service or resource under this chapter, the agency must have
   29-7  entered into a written agreement or contract that has been approved
   29-8  by the administrator of each agency that is a party to the
   29-9  agreement or contract <and by the commission>.
  29-10        SECTION 1.27.  Section 771.004, Government Code, is amended
  29-11  by amending Subsection (c) and by adding Subsection (d) to read as
  29-12  follows:
  29-13        (c)  A written agreement or contract is <and advance approval
  29-14  by the commission are> not required:
  29-15              (1)  in an emergency for the defense or safety of the
  29-16  civil population or in the planning and preparation for those
  29-17  emergencies;
  29-18              (2)  in cooperative efforts, proposed by the governor,
  29-19  for the economic development of the state; or
  29-20              (3)  in a situation in which the amount involved is
  29-21  less than $50,000 <$2,500>.
  29-22        (d)  In an interagency exchange that is exempt from the
  29-23  requirements of a written agreement or contract, the agencies
  29-24  involved shall document the exchange through informal letters of
  29-25  agreement or memoranda.
  29-26        SECTION 1.28.  Section 771.006, Government Code, is amended
  29-27  to read as follows:
   30-1        Sec. 771.006.  <Equipment> Purchases and Subcontracts of
   30-2  Services and Resources.  A contract under this chapter may
   30-3  authorize an <permit a furnishing> agency providing services and
   30-4  resources to subcontract and purchase the services and resources
   30-5  <equipment to the extent considered appropriate by the commission>.
   30-6        SECTION 1.29.  On the effective date of this part, all
   30-7  powers, duties, and obligations relating to the protection of
   30-8  public buildings under the charge and control of the General
   30-9  Services Commission, and the buildings' occupants, against existing
  30-10  or threatened fire hazards are transferred from the General
  30-11  Services Commission to the Texas Commission on Fire Protection as
  30-12  provided by this Act.  All property in the custody of the General
  30-13  Services Commission and the original or a copy of any record that
  30-14  relates to fire protection activity in the buildings are
  30-15  transferred to the Texas Commission on Fire Protection.  All
  30-16  appropriations to the General Services Commission for fire
  30-17  protection activity in the buildings and all employees of the
  30-18  General Services Commission employed primarily to engage in fire
  30-19  protection activity in the buildings are transferred to the Texas
  30-20  Commission on Fire Protection.  All investigations and all filed
  30-21  reports or complaints relating to fire protection in the buildings
  30-22  are transferred without change in status from the General Services
  30-23  Commission to the Texas Commission on Fire Protection.  All rules,
  30-24  standards, and specifications of the General Services Commission
  30-25  relating to fire protection in the buildings remain in effect as
  30-26  rules, standards, and specifications of the Texas Commission on
  30-27  Fire Protection unless superseded by proper authority of that
   31-1  commission.
   31-2        SECTION 1.30.  The General Services Commission shall complete
   31-3  implementation of the changes in law made by this Act relating to
   31-4  the use of a centralized master bidders list by state agencies not
   31-5  later than September 1, 1995.  During the transition period
   31-6  provided by this section, affected state agencies shall provide the
   31-7  General Services Commission with all records and information in the
   31-8  custody of the agencies that relate to the commission's preparation
   31-9  of the centralized master bidders list.
  31-10        SECTION 1.31.  (a)  The General Services Commission shall
  31-11  appoint the new members added to the commission's construction
  31-12  contract review committee by this Act as soon as practicable after
  31-13  the effective date of this part. The representatives of each
  31-14  society or association that has had its representation on the
  31-15  committee reduced from two members to one member shall determine by
  31-16  agreement or by lot which representative will remain on the
  31-17  committee.
  31-18        (b)  Until all removals and new appointments of members of
  31-19  the commission's construction contract review committee have taken
  31-20  place, a quorum of the committee is a majority of the number of
  31-21  members serving at the time of a meeting.
  31-22        SECTION 1.32.  On the effective date of this part, all
  31-23  powers, duties, and obligations of the Office of Small Business
  31-24  Assistance of the Texas Department of Commerce under Section 1.03,
  31-25  State Purchasing and General Services Act (Article 601b, Vernon's
  31-26  Texas Civil Statutes), are transferred to the General Services
  31-27  Commission as prescribed by the changes to Section 1.03 made by
   32-1  this Act.  All records and property in the custody of the office
   32-2  that relate to a function transferred by this Act are transferred
   32-3  to the commission.  All appropriations to the office for functions
   32-4  transferred by this Act and all employees of the office employed
   32-5  primarily to engage in those functions are transferred to the
   32-6  commission.  An application for certification as a historically
   32-7  underutilized business is transferred without change in status from
   32-8  the office to the commission.  All rules, standards, and
   32-9  specifications of the office relating to the functions transferred
  32-10  by this Act remain in effect as rules, standards, and
  32-11  specifications of the commission unless superseded by proper
  32-12  authority of the commission.  All references in a transferred
  32-13  application, rule, standard, or specification to disadvantaged
  32-14  businesses is considered to be a reference to historically
  32-15  underutilized businesses.  A prior certification made by the office
  32-16  that a business is a disadvantaged business is considered to be a
  32-17  certification that a business is a historically underutilized
  32-18  business.
  32-19        SECTION 1.33.  Not later than January 1, 1995, the General
  32-20  Services Commission shall submit to the governor, lieutenant
  32-21  governor, and speaker of the house of representatives a report on
  32-22  the competitive sealed proposal process established by this Act
  32-23  that includes:
  32-24              (1)  a list of all purchases made under the process
  32-25  during the state fiscal year ending August 31, 1994, including
  32-26  purchases by institutions and other agencies of higher education
  32-27  under authority delegated by the commission;
   33-1              (2)  an analysis of benefits and disadvantages of the
   33-2  process; and
   33-3              (3)  recommendations for improving the process.
   33-4        SECTION 1.34.  (a)  The following laws are repealed:
   33-5              (1)  Section 771.005, Government Code; and
   33-6              (2)  Section 771.009, Government Code.
   33-7        (b)  The following law is repealed:
   33-8              (1)  Section 771.008(d), Government Code; or
   33-9              (2)  Section 6(d), The Interagency Cooperation Act
  33-10  (Article 4413(32), Vernon's Texas Civil Statutes), as added by
  33-11  Section 30, Chapter 641, Acts of the 72nd Legislature, Regular
  33-12  Session, 1991.
  33-13        (c)  Subsection (b)(1) of this section takes effect only if a
  33-14  bill relating to nonsubstantive additions to and corrections in
  33-15  enacted codes, including the nonsubstantive codification of various
  33-16  laws omitted from enacted codes, and to conforming codifications
  33-17  enacted by the 72nd Legislature to other acts of that legislature,
  33-18  is enacted by the 73rd Legislature and becomes law.  Subsection
  33-19  (b)(2) of this section takes effect only if the bill described by
  33-20  this subsection does not become law.
  33-21        SECTION 1.35.  Article 5, State Purchasing and General
  33-22  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  33-23  amended by adding Section 5.265 to read as follows:
  33-24        Sec. 5.265.  COMMON SURETY OR INSURER.  If it is advantageous
  33-25  to the state, the commission, or an agency whose project is
  33-26  exempted from all or part of this article under Section 5.13 of
  33-27  this article, may negotiate an arrangement with a surety or an
   34-1  insurer, as appropriate, authorized to do business in this state to
   34-2  furnish some or all of the bonds, insurance, or both that a
   34-3  contractor or subcontractor is required to execute or carry to
   34-4  receive a contract or subcontract on a project administered by the
   34-5  commission or other agency.  Notwithstanding Section 1, Chapter 87,
   34-6  Acts of the 56th Legislature, Regular Session, 1959 (Article
   34-7  7.19-1, Vernon's Texas Insurance Code), and its subsequent
   34-8  amendments, the commission or other agency may require a contractor
   34-9  or subcontractor to meet part or all of the bonding or insurance
  34-10  requirements for the project under the arrangement negotiated by
  34-11  the commission or other agency.
  34-12        SECTION 1.36.  Article 5, State Purchasing and General
  34-13  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  34-14  amended by adding Section 5.342 to read as follows:
  34-15        Sec. 5.342.  ACQUISITION OF EXISTING BUILDING AS ALTERNATIVE
  34-16  TO LEASING SPACE.  (a)  This section applies only to meeting office
  34-17  space needs of one or more state agencies in a county in which the
  34-18  state is leasing at least 50,000 square feet of usable office
  34-19  space.
  34-20        (b)  The commission may meet office space needs of one or
  34-21  more state agencies that are being met through leased space by
  34-22  purchasing one or more existing buildings in accordance with this
  34-23  section.  The purchase of a building may include the purchase of
  34-24  the building's grounds and related improvements.  The purchase of a
  34-25  building under this section must be:
  34-26              (1)  financed through bonds issued by the Texas Public
  34-27  Finance Authority; and
   35-1              (2)  approved by the legislature if it is in session or
   35-2  by the Legislative Budget Board if the legislature is not in
   35-3  session.
   35-4        (c)  The commission may purchase a building under this
   35-5  section only if the commission determines that the projected annual
   35-6  total space occupancy costs of the purchased space will not exceed,
   35-7  over the term of the bonded indebtedness, the projected annual
   35-8  total space occupancy costs of meeting the same space needs through
   35-9  leased space.  In this section, "total space occupancy costs"
  35-10  include:
  35-11              (1)  for leased space, the direct cost of the lease
  35-12  payments for the space;
  35-13              (2)  for purchased space, the direct cost of rental or
  35-14  installment payments for the space under Section 12(b), Texas
  35-15  Public Finance Authority Act (Article 601d, Vernon's Texas Civil
  35-16  Statutes);
  35-17              (3)  the cost of any necessary renovations;
  35-18              (4)  operating costs, including janitorial and utility
  35-19  costs; and
  35-20              (5)  for purchased space, the cost of maintaining a
  35-21  cash replacement reserve sufficient to service structural
  35-22  maintenance requirements reflecting the expected performance life
  35-23  of the major capital expense items of the building for the term of
  35-24  the bonded indebtedness.
  35-25        (d)  If the commission has made the necessary determination
  35-26  under Subsection (c) of this section and the purchase has been
  35-27  approved by the legislature or the Legislative Budget Board under
   36-1  Subsection (b) of this section, the Texas Public Finance Authority
   36-2  shall issue and sell bonds to finance the purchase in accordance
   36-3  with the Texas Public Finance Authority Act (Article 601d, Vernon's
   36-4  Texas Civil Statutes), and the commission may purchase the building
   36-5  in accordance with that Act and other applicable law.  The
   36-6  limitation prescribed by Section 9, Texas Public Finance Authority
   36-7  Act (Article 601d, Vernon's Texas Civil Statutes), relating to the
   36-8  location of a building for which bonds may be issued and sold does
   36-9  not apply to financing the purchase of a building under this
  36-10  section.
  36-11        (e)  Any person from whom real property or any existing
  36-12  buildings or other improvements are purchased under this section
  36-13  shall provide to the commission the name and the last known address
  36-14  of each person who:
  36-15              (1)  owns record legal title to the property,
  36-16  buildings, or other improvements; or
  36-17              (2)  owns a beneficial interest in the property,
  36-18  buildings, or other improvements through a trust, nominee, agent,
  36-19  or any other legal entity.
  36-20        (f)  When a state agency vacates leased space to move into
  36-21  space in a building purchased under this section or when the leased
  36-22  space itself is purchased under this section, the money
  36-23  specifically appropriated by the legislature or the money available
  36-24  to and budgeted by the agency for lease payments for the leased
  36-25  space for the remainder of the biennium may be used only for rental
  36-26  or installment payments for the purchased space under Section
  36-27  12(b), Texas Public Finance Authority Act (Article 601d, Vernon's
   37-1  Texas Civil Statutes), and for the payment of operating expenses
   37-2  for the purchased space that are incurred by the commission.  The
   37-3  comptroller may adopt rules for the administration of this
   37-4  subsection.
   37-5        SECTION 1.37.  Sections 4.15(c) and (m), State Purchasing and
   37-6  General Services Act (Article 601b, Vernon's Texas Civil Statutes),
   37-7  are amended to read as follows:
   37-8        (c)  Except as provided by this section and Article 6252-3e,
   37-9  Revised Statutes, the commission shall determine the amount of
  37-10  space in a building to be allocated to private tenants and the
  37-11  types of activities in which the tenants may engage based on the
  37-12  market for certain activities among employees and visitors in the
  37-13  building and in the vicinity of the building.  Except as provided
  37-14  by Subsection (m) <(l)> of this section, the amount of space
  37-15  allocated to private tenants may not exceed 15 percent of the total
  37-16  space in the building.  Any space leased to provide child care
  37-17  services for state employees shall not be counted in the 15 percent
  37-18  maximum.
  37-19        (m)  If the commission determines under Section 5.34 or 5.342
  37-20  of this Act that the purchase of an existing building is more
  37-21  advantageous to the state than constructing <the construction of> a
  37-22  new building or continuing to lease space for a state agency, but a
  37-23  purchase of the building would be subject to existing leases to
  37-24  private tenants that exceed 15 percent of the total space in the
  37-25  building, the commission may purchase the building subject to
  37-26  existing leases notwithstanding Subsection (c) of this section.
  37-27  When an existing lease to a private tenant expires, the commission
   38-1  may renew the lease subject to this section, including Subsection
   38-2  (c).
   38-3        SECTION 1.38.  Section 9(b), Texas Public Finance Authority
   38-4  Act (Article 601d, Vernon's Texas Civil Statutes), is amended to
   38-5  read as follows:
   38-6        (b)  When the acquisition or construction of a building has
   38-7  been authorized in accordance with this Act or under Section 5.34
   38-8  or 5.342, State Purchasing and General Services Act (Article 601b,
   38-9  Vernon's Texas Civil Statutes), the board shall promptly issue and
  38-10  sell bonds in the name of the authority under this Act, including
  38-11  Sections 10B and 16 of this Act, to finance the acquisition or
  38-12  construction of the building.  When the proceeds from the bond
  38-13  issuance are available, the board shall promptly deposit the
  38-14  proceeds in the state treasury under Section 23 of this Act and
  38-15  shall promptly make the determinations that are to be made by the
  38-16  board under Section 23 of this Act.
  38-17        SECTION 1.39.  Section 10(a), Texas Public Finance Authority
  38-18  Act (Article 601d, Vernon's Texas Civil Statutes), as amended by
  38-19  Chapter 1244, Acts of the 71st Legislature, Regular Session, 1989,
  38-20  is amended to read as follows:
  38-21        (a)  Except as permitted by Sections 24A(b)(5) and 24A(d) of
  38-22  this Act or Section 5.34 or 5.342, State Purchasing and General
  38-23  Services Act (Article 601b, Vernon's Texas Civil Statutes), before
  38-24  the board may issue and sell bonds, the legislature by law must
  38-25  have authorized in this Act, the General Appropriations Act, or
  38-26  another Act the specific project for which the bonds are to be
  38-27  issued and sold and must have authorized the estimated cost of the
   39-1  project or the maximum amount of bonded indebtedness that may be
   39-2  incurred by the issuance and sale of bonds for the project.  In
   39-3  recognition that the cost estimates for acquisition, construction,
   39-4  repair, or renovation of a project will not be final at the time
   39-5  the project is authorized for financing and that the bonds may be
   39-6  issued to fund associated costs, including but not limited to
   39-7  reasonably required reserve funds, capitalized interest,
   39-8  administrative costs of the authority, and issuing expenses, the
   39-9  principal amount of any bond issue for that purpose may be up to
  39-10  1-1/2 the amount of the estimated cost for the project being
  39-11  financed.  For additional costs to be included in that principal
  39-12  amount, the board must affirmatively find that those costs are
  39-13  necessary and reasonable at the time the bonds are issued.
  39-14        SECTION 1.40.  (a)  The initial reports required by Section
  39-15  1.03(f), State Purchasing and General Services Act (Article 601b,
  39-16  Vernon's Texas Civil Statutes), as added by this part, shall be
  39-17  filed not later than December 31, 1994.
  39-18        (b)  The written plan required by Section 1.03(e), State
  39-19  Purchasing and General Services Act (Article 601b, Vernon's Texas
  39-20  Civil Statutes), as added by this part, shall be completed not
  39-21  later than June 1, 1994.
  39-22        SECTION 1.41.  Section 481.105, Government Code, is
  39-23  transferred to Article 3, State Purchasing and General Services Act
  39-24  (Article 601b, Vernon's Texas Civil Statutes), redesignated as
  39-25  Section 3.281, and amended to read as follows:
  39-26        Sec. 3.281 <481.105>.  Participation by Small Businesses in
  39-27  State Purchasing.  The commission <office> shall foster
   40-1  participation of small businesses in the purchasing activities of
   40-2  the state by:
   40-3              (1)  assisting state agencies in developing procedures
   40-4  to ensure the inclusion of small businesses on state agency master
   40-5  bid lists;
   40-6              (2)  informing small businesses of state purchasing
   40-7  opportunities;
   40-8              (3)  assisting small businesses in complying with the
   40-9  procedures for bidding on state contracts;
  40-10              (4)  working with state and federal agencies and with
  40-11  private organizations in disseminating information on state
  40-12  purchasing procedures and the opportunities for small businesses to
  40-13  participate in state contracts;
  40-14              (5)  assisting state agencies with the development of a
  40-15  comprehensive list of small businesses capable of providing
  40-16  materials, supplies, equipment, or services to the state; <and>
  40-17              (6)  making recommendations to state agencies for
  40-18  simplification of specifications and terms to increase the
  40-19  opportunities for small business participation;
  40-20              (7)  working with state agencies to establish a
  40-21  statewide policy for increasing use of small businesses;
  40-22              (8)  assisting state agencies in seeking small
  40-23  businesses capable of supplying materials and services that the
  40-24  agencies require;
  40-25              (9)  assisting state agencies in identifying and
  40-26  advising small businesses on the types of goods and services needed
  40-27  by the agencies; and
   41-1              (10)  assisting state agencies in increasing the volume
   41-2  of business placed with small businesses.
   41-3        SECTION 1.42.  On the effective date of this part, all
   41-4  powers, duties, and obligations of the Office of Small Business
   41-5  Assistance of the Texas Department of Commerce under Section 1.03,
   41-6  State Purchasing and General Services Act (Article 601b, Vernon's
   41-7  Texas Civil Statutes), and under former Section 481.105, Government
   41-8  Code, are transferred to the General Services Commission as
   41-9  prescribed by this part.  All records and property in the custody
  41-10  of the office that relate to a function transferred by this part
  41-11  are transferred to the commission.  All appropriations to the
  41-12  office for functions transferred by this part and all employees of
  41-13  the office employed primarily to engage in those functions are
  41-14  transferred to the commission.  An application for certification as
  41-15  a disadvantaged business is transferred without change in status
  41-16  from the office to the commission.  All rules, standards, and
  41-17  specifications of the office relating to the functions transferred
  41-18  by this part remain in effect as rules, standards, and
  41-19  specifications of the commission unless superseded by the
  41-20  commission.
  41-21        SECTION 1.43.  This part takes effect immediately.
  41-22          PART 2.  ABOLITION OF TEXAS SURPLUS PROPERTY AGENCY
  41-23        SECTION 2.01.  Section 2.06(c), State Purchasing and General
  41-24  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  41-25  amended to read as follows:
  41-26        (c)  The executive director shall employ two associate deputy
  41-27  directors, who shall administer the operation of the divisions of
   42-1  the commission, except the surplus and salvage property division,
   42-2  as provided by this Act.  The commission shall:
   42-3              (1)  employ a third associate deputy director to
   42-4  administer the operation of the surplus and salvage property
   42-5  division as provided by this Act, and that associate deputy
   42-6  director serves at the pleasure of the commission; or
   42-7              (2)  assign the duty to administer the surplus and
   42-8  salvage property division directly to the executive director, who
   42-9  shall directly administer that division subject to and under the
  42-10  direction of the commission.
  42-11        SECTION 2.02.  Section 2.09, State Purchasing and General
  42-12  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  42-13  amended to read as follows:
  42-14        Sec. 2.09.  Divisions.  (a)  The commission is divided into
  42-15  divisions as provided by this section.  The associate deputy
  42-16  director employed to administer the surplus and salvage property
  42-17  division shall direct that division as provided by Subsection (c)
  42-18  of this section.  Another <One> associate deputy director shall
  42-19  direct the travel division and other divisions as directed by the
  42-20  executive director.  The other associate deputy director shall
  42-21  direct the remaining divisions as directed by the executive
  42-22  director.
  42-23        (b)  Each division shall be managed by a division director
  42-24  who shall report to the appropriate associate deputy director,
  42-25  except as provided by Subsection (c) of this section.
  42-26        (c)  The surplus and salvage property division is established
  42-27  to administer Article 9 of this Act.  Notwithstanding Section
   43-1  2.06(b) of this Act, and unless the commission assigns the duty to
   43-2  administer the division directly to the executive director, the
   43-3  affairs of the division are managed by the associate deputy
   43-4  director of that division, whose management is subject to and under
   43-5  the direction of the commission and who reports directly to the
   43-6  commission.  All direction of the commission to the associate
   43-7  deputy director shall be made at an open meeting of the commission
   43-8  and made a part of the minutes of the commission.  The division may
   43-9  share support functions with other divisions of the commission, but
  43-10  the division shall operate autonomously from the rest of the
  43-11  commission, and the administration of the division must be housed
  43-12  in a different building than other commission functions.  If the
  43-13  commission assigns the duty to administer the division directly to
  43-14  the executive director, the division must still operate
  43-15  autonomously from the rest of the commission, and, except for the
  43-16  executive director's office, the administrative functions of the
  43-17  division must still be housed in a different building from other
  43-18  commission functions.
  43-19        SECTION 2.03.  Section 8.01(a), State Purchasing and General
  43-20  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  43-21  amended to read as follows:
  43-22        (a)  This article applies to:
  43-23              (1)  personal property belonging to the state; and
  43-24              (2)  real or personal property acquired by or otherwise
  43-25  under the commission's jurisdiction under Section 9.16 of this Act
  43-26  and 40 U.S.C. Section 483c, 484(j), or 484(k).
  43-27        SECTION 2.04.  Section 9.01(a), State Purchasing and General
   44-1  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   44-2  amended by amending Subdivisions (3) and (4) and adding Subdivision
   44-3  (8) to read as follows:
   44-4              (3)  "Property" means personal property.  The term does
   44-5  not include real property, or any interest in real property, except
   44-6  federal real property acquired under Section 9.16 of this article
   44-7  and Section 484(k), Federal Property and Administrative Services
   44-8  Act.  Personal<; however, personal> property affixed to real
   44-9  property may be sold under this law if its removal and disposition
  44-10  is to carry out a lawful objective under this law or any other law.
  44-11  The term includes property lawfully confiscated and subject to
  44-12  disposal by a state agency.
  44-13              (4)  "Surplus property":
  44-14                    (A)  means:
  44-15                          (i)  any personal property which is in
  44-16  excess of the needs of  any state agency and which is not required
  44-17  for its foreseeable needs; or
  44-18                          (ii)  federal surplus property acquired by
  44-19  the commission or otherwise under the commission's jurisdiction
  44-20  under Section 9.16 of this article and Section 483c, 484(j), or
  44-21  484(k), Federal Property and Administrative Services Act; and
  44-22                    (B)  includes property that<.  Surplus property>
  44-23  may be used or new but possesses some usefulness for the purpose
  44-24  for which it was intended or for some other purpose.
  44-25              (8)  "Federal Property and Administrative Services Act"
  44-26  means the Federal Property and Administrative Services Act of 1949
  44-27  (40 U.S.C. Section 484).
   45-1        SECTION 2.05.  Section 9.02, State Purchasing and General
   45-2  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   45-3  amended to read as follows:
   45-4        Sec. 9.02.  Establishment of Procedures.  The commission
   45-5  shall establish and maintain procedures for the transfer, sale, or
   45-6  disposal, as prescribed by law, of:
   45-7              (1)  surplus and salvage property no longer needed by
   45-8  state agencies; and
   45-9              (2)  federal surplus property that the state acquires
  45-10  under the Federal Property and Administrative Services Act.
  45-11        SECTION 2.06.  Section 9.03, State Purchasing and General
  45-12  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  45-13  amended to read as follows:
  45-14        Sec. 9.03.  Mailing lists of assistance organizations and
  45-15  political subdivisions.  The commission shall maintain a mailing
  45-16  list, renewable annually, of assistance organizations and political
  45-17  subdivision purchasing agents or other officers performing similar
  45-18  functions who have asked for information on surplus or salvage
  45-19  equipment or material the state may have available.  <The
  45-20  commission shall provide the list to the Texas Surplus Property
  45-21  Agency.>
  45-22        SECTION 2.07.  Section 9.05(a), State Purchasing and General
  45-23  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  45-24  amended to read as follows:
  45-25        (a)  If surplus or salvage property of a state agency is not
  45-26  disposed of under the provisions of Section 9.04 of this article,
  45-27  the commission shall sell the property by competitive bid or
   46-1  auction or delegate to the state agency having possession of the
   46-2  property the authority to sell the property on a competitive bid
   46-3  basis.  The commission or agency shall collect a fee from the
   46-4  purchaser.  The commission shall set the fee in an amount to
   46-5  recover the costs associated with the sale of the property, but the
   46-6  amount may not be less than two percent nor more than 12 percent of
   46-7  the proceeds from the sale of the property.
   46-8        SECTION 2.08.  Section 9.13, State Purchasing and General
   46-9  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  46-10  amended to read as follows:
  46-11        Sec. 9.13.  EXEMPTION.  For purposes of this article the
  46-12  terms "surplus" and "salvage" shall not apply to products and
  46-13  by-products of research, forestry, agricultural, livestock, and
  46-14  industrial enterprises <in excess of that quantity required for
  46-15  consumption by the producing agency when such agencies have a
  46-16  continuing and adequate system of marketing research and sales, the
  46-17  efficiency of which shall be certified to the commission by the
  46-18  state auditor.  A qualifying agency shall furnish the commission
  46-19  with a copy of the rules and regulations and latest revisions
  46-20  thereof promulgated by the policy making body of each agency or
  46-21  institution for the guidance and administration of the programs
  46-22  enumerated herein.  When requested by such agency or institution to
  46-23  do so, the commission shall dispose of the property as provided for
  46-24  in this article>.
  46-25        SECTION 2.09.  Section 9.14, State Purchasing and General
  46-26  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  46-27  amended to read as follows:
   47-1        Sec. 9.14.  Authorization of Agencies to Dispose of Property.
   47-2  The commission may authorize an agency to dispose of surplus or
   47-3  salvage property where the agency demonstrates to the commission
   47-4  its ability to make such disposition under the rules and
   47-5  regulations set up by the commission, as provided for herein.
   47-6  State eleemosynary institutions and institutions and agencies of
   47-7  higher learning shall be excepted from the terms of this article
   47-8  that relate to the disposition of their surplus or salvage
   47-9  property.
  47-10        SECTION 2.10.  Article 9, State Purchasing and General
  47-11  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  47-12  amended by adding Sections 9.16 and 9.17 to read as follows:
  47-13        Sec. 9.16.  FEDERAL SURPLUS PROPERTY.  (a)  The commission is
  47-14  the designated state agency under Section 484(j) of the Federal
  47-15  Property and Administrative Services Act.
  47-16        (b)  The commission may:
  47-17              (1)  acquire and warehouse federal property allocated
  47-18  to the commission under the Federal Property and Administrative
  47-19  Services Act; and
  47-20              (2)  distribute the property:
  47-21                    (A)  to an entity or institution that meets the
  47-22  qualifications for eligibility for the property under the Federal
  47-23  Property and Administrative Services Act; and
  47-24                    (B)  without complying with the provisions of
  47-25  this article that relate to the disposition of surplus state agency
  47-26  property.
  47-27        (c)  The commission may:
   48-1              (1)  disseminate information and assist a potential
   48-2  applicant regarding the availability of federal surplus real
   48-3  property;
   48-4              (2)  assist in the processing of an application for
   48-5  acquisition of federal real property and related personal property
   48-6  under Section 484(k) of the Federal Property and Administrative
   48-7  Services Act;
   48-8              (3)  assist in assuring use of the property; and
   48-9              (4)  engage in an activity relating to the use of
  48-10  federal surplus property by another state agency, institution, or
  48-11  organization engaging in or receiving assistance under a federal
  48-12  program.
  48-13        (d)  The commission shall:
  48-14              (1)  file a state plan of operation that complies with
  48-15  federal law and operate in accordance with the plan;
  48-16              (2)  take necessary action to meet the minimum
  48-17  standards for a state agency in accordance with the Federal
  48-18  Property and Administrative Services Act; and
  48-19              (3)  cooperate to the fullest extent consistent with
  48-20  this section.
  48-21        (e)  The commission may:
  48-22              (1)  make the necessary certifications and undertake
  48-23  necessary action, including an investigation;
  48-24              (2)  make expenditures or reports that may be required
  48-25  by federal law or regulation or that are otherwise necessary to
  48-26  provide for the proper and efficient management of the commission's
  48-27  functions under this section;
   49-1              (3)  provide information and reports relating to the
   49-2  commission's activities under this section that may be required by
   49-3  a federal agency or department; and
   49-4              (4)  adopt rules necessary for the efficient operation
   49-5  of its activities  under this section or as may be required by
   49-6  federal law or regulation.
   49-7        (f)  The commission may enter into an agreement, including:
   49-8              (1)  a cooperative agreement with a federal agency
   49-9  under Section 484(n) of the Federal Property and Administrative
  49-10  Services Act;
  49-11              (2)  an agreement with a state agency for surplus
  49-12  property of a state agency that will promote the administration of
  49-13  the commission's functions under this section; or
  49-14              (3)  an agreement with a group or association of state
  49-15  agencies for surplus property that will promote the administration
  49-16  of the commission's functions under this section.
  49-17        (g)  The commission may act as an information clearinghouse
  49-18  for an entity or institution that may be eligible to acquire
  49-19  federal surplus property and may assist, as necessary, the entity
  49-20  or institution to obtain federal surplus property.
  49-21        (h)  The commission may:
  49-22              (1)  acquire and hold title or make capital
  49-23  improvements to real property in accordance with Subsection (i) of
  49-24  this section; or
  49-25              (2)  make an advance payment of rent for a distribution
  49-26  center, office space, or another facility that is required to carry
  49-27  out the commission's functions under this section.
   50-1        (i)  The commission may collect a service charge for the
   50-2  commission's acquisition, warehousing, distribution, or transfer of
   50-3  property.  The commission may not collect a charge for real
   50-4  property in an amount that is greater than the reasonable
   50-5  administrative cost the commission incurs in transferring the
   50-6  property.
   50-7        (j)  A charge collected under Subsection (i) of this section
   50-8  shall be deposited in the state treasury to the credit of  the
   50-9  surplus property service charge fund, and  income earned on money
  50-10  in the surplus property service charge fund shall be credited to
  50-11  that fund.  Money in the fund may be used only to carry out the
  50-12  functions of the commission under this section.
  50-13        (k)  The commission may appoint advisory boards and
  50-14  committees necessary and suitable to administer this section.
  50-15        (l)  The commission may employ, compensate, and prescribe the
  50-16  duties of personnel, other than members of advisory boards and
  50-17  committees, necessary and suitable to administer this section.  A
  50-18  personnel position may only be filled by an individual selected and
  50-19  appointed on a nonpartisan merit basis.
  50-20        Sec. 9.17.  ADMINISTRATIVE COST RECOVERY STUDY.  The
  50-21  commission shall conduct a study to determine if its functions
  50-22  under this article can be made self-supporting by charging fees for
  50-23  commission services.  If the commission determines that a function
  50-24  can be made self-supporting through charging fees, the commission
  50-25  shall prepare a fee implementation plan.   Before January 1, 1995,
  50-26  the commission shall report to each member of the legislature the
  50-27  results of the study and the implementation plan for fee recovery,
   51-1  if any.  This section expires January 1, 1995.
   51-2        SECTION 2.11.  Section 403.271(a), Government Code, is
   51-3  amended to read as follows:
   51-4        (a)  This subchapter applies to:
   51-5              (1)  all personal property belonging to the state; and
   51-6              (2)  real and personal property acquired by or
   51-7  otherwise under the jurisdiction of the state under 40 U.S.C.
   51-8  Section 483c, 484(j), or 484(k), and Section 9.16, State Purchasing
   51-9  and General Services Act (Article 601b, Vernon's Texas Civil
  51-10  Statutes).
  51-11        SECTION 2.12.  (a)  The General Services Commission and the
  51-12  Texas Surplus Property Agency shall coordinate the transfer of all
  51-13  Texas Surplus Property Agency functions to the General Services
  51-14  Commission as required by this part.  The administrative functions
  51-15  of the Texas Surplus Property Agency are transferred to the General
  51-16  Services Commission to be carried out by staff located in Austin,
  51-17  in accordance with the State Purchasing and General Services Act
  51-18  (Article 601b, Vernon's Texas Civil Statutes), as amended by this
  51-19  Act.
  51-20        (b)  The transfer of all functions from the Texas Surplus
  51-21  Property Agency to the General Services Commission shall be
  51-22  accomplished as soon as practicable, but not later than the 45th
  51-23  day after the effective date of this part, at which time the Texas
  51-24  Surplus Property Agency is abolished.
  51-25        (c)  The transfer required by this part includes the transfer
  51-26  of all assets, duties, powers, obligations, and liabilities,
  51-27  including contracts, leases, real or personal property, funds,
   52-1  employees, furniture, computers and other equipment, and files and
   52-2  related materials used by the Texas Surplus Property Agency.
   52-3        (d)  A form, rule, or procedure adopted by the Texas Surplus
   52-4  Property Agency that is in effect on the effective date of this
   52-5  part remains in effect on and after that date as if adopted by the
   52-6  General Services Commission until amended, repealed, withdrawn, or
   52-7  otherwise superseded by the commission.
   52-8        (e)  All unexpended appropriations made to the Texas Surplus
   52-9  Property Agency are transferred to the General Services Commission.
  52-10        (f)  Notwithstanding Subsections (b) and (e) of this section
  52-11  and Section 2.13 of this Act:
  52-12              (1)  to the extent that changes in law made by this Act
  52-13  are changes that must be approved by the federal government under
  52-14  federal law relating to surplus property as a condition of this
  52-15  state's full participation in the federal surplus property program,
  52-16  the appropriate prior law is continued in effect until the
  52-17  necessary approval is received; and
  52-18              (2)  if the abolition of the Texas Surplus Property
  52-19  Agency and the transfer of its functions under this Act must be
  52-20  approved by the federal government under federal law relating to
  52-21  surplus property  as a condition of this state's full participation
  52-22  in the federal surplus property program, the Texas Surplus Property
  52-23  Agency and the law under which it performs its functions are
  52-24  continued in effect until the necessary approval is received.
  52-25        SECTION 2.13.  The following laws are repealed:
  52-26              (1)  Chapter 32, Acts of the 62nd Legislature, Regular
  52-27  Session, 1971 (Article 6252-6b, Vernon's Texas Civil Statutes); and
   53-1              (2)  Subsections (d), (e), and (g), Section 9.04, State
   53-2  Purchasing and General Services Act (Article 601b, Vernon's Texas
   53-3  Civil Statutes).
   53-4        SECTION 2.14.  This part takes effect September 1, 1993,
   53-5  except that:
   53-6              (1)  the amendment to Section 403.271(a), Government
   53-7  Code, takes effect when Subchapter L, Chapter 403, Government Code,
   53-8  as added by Section 2.30, Chapter 8, Acts of the 72nd Legislature,
   53-9  2nd Called Session, 1991, takes effect; and
  53-10              (2)  the amendment to Section 8.01(a), State Purchasing
  53-11  and General Services Act (Article 601b, Vernon's Texas Civil
  53-12  Statutes), does not take effect if on or before September 1, 1993,
  53-13  Article 8, State Purchasing and General Services Act (Article 601b,
  53-14  Vernon's Texas Civil Statutes), is repealed on certification by the
  53-15  comptroller of the implementation of the fixed asset component of
  53-16  the uniform statewide accounting system, in accordance with Section
  53-17  6.01(d), Chapter 8, Acts of the 72nd Legislature, 2nd Called
  53-18  Session, 1991.
  53-19                            PART 3.  TRAVEL
  53-20        SECTION 3.01.  Section 14.01, State Purchasing and General
  53-21  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  53-22  amended to read as follows:
  53-23        Sec. 14.01.  Division.  The travel division of the commission
  53-24  is composed of the central travel office and the office of vehicle
  53-25  fleet maintenance.  The commission shall adopt rules to implement
  53-26  this article, including rules related to:
  53-27              (1)  the structure of travel agency contracts that the
   54-1  commission makes;
   54-2              (2)  the procedures the commission uses in requesting
   54-3  and evaluating bids or proposals for travel agency contracts from
   54-4  providers; <and>
   54-5              (3)  the use of negotiated contract rates for travel
   54-6  services by state agencies; and
   54-7              (4)  exemptions from the prohibition prescribed by
   54-8  Section 14.02(d) of this article.
   54-9        SECTION 3.02.  Sections 14.02(b) and (c), State Purchasing
  54-10  and General Services Act (Article 601b, Vernon's Texas Civil
  54-11  Statutes), are amended to read as follows:
  54-12        (b)  The central travel office shall initially provide
  54-13  services to designated agencies located in Travis County and shall
  54-14  extend its services to all state agencies as it develops the
  54-15  capability to do so.  The office may negotiate contracts with
  54-16  private travel agents, with travel and transportation providers,
  54-17  and with credit card companies that provide travel services and
  54-18  other benefits to the state.  The commission shall make contracts
  54-19  with more than one provider of travel agency services.  Contracts
  54-20  entered into under this section are not subject to the competitive
  54-21  bidding requirements imposed under Article 3 of this Act.  The
  54-22  comptroller of public accounts shall audit travel vouchers in
  54-23  accordance with Chapter 403, Government Code, and its subsequent
  54-24  amendments, for compliance with <of> rules adopted to enforce the
  54-25  provisions of this section.
  54-26        (c)  State agencies in the executive branch of state
  54-27  government shall participate in accordance with commission rules in
   55-1  the commission's contracts for travel services, provided that
   55-2  institutions of higher education as defined by Section 61.003,
   55-3  Education Code, shall not be required to participate in the
   55-4  commission's contracts for travel <agency> services.  The
   55-5  commission may provide by rule for exemptions from required
   55-6  participation.  Agencies of the state that are not required to
   55-7  participate in commission contracts for travel services may
   55-8  participate as provided by Subsection (a) of this section.
   55-9        SECTION 3.03.  Section 14.02, State Purchasing and General
  55-10  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  55-11  amended by adding Subsections (d) and (e) to read as follows:
  55-12        (d)  This subsection applies only to a state agency in the
  55-13  executive branch of state government that is required to
  55-14  participate in the commission's contracts for travel services.
  55-15  Except as provided by commission rule, a state agency may not:
  55-16              (1)  purchase commercial airline or rental car
  55-17  transportation if the amount of the purchase exceeds the amount of
  55-18  the central travel office's contracted fares or rates; or
  55-19              (2)  reimburse a person for the purchase of commercial
  55-20  airline or rental car transportation for the amount that exceeds
  55-21  the amount of the central travel office's contracted fares or
  55-22  rates.
  55-23        (e)  The commission shall educate state agencies about
  55-24  Subsection (d) of this section.  The comptroller shall audit travel
  55-25  vouchers in accordance with Chapter 403, Government Code, and its
  55-26  subsequent amendments, for compliance with Subsection (d) of this
  55-27  section.  To facilitate the audit of the travel vouchers, the
   56-1  commission shall consult with the comptroller before the commission
   56-2  adopts rules or procedures under Subsection (d) of this section.
   56-3        SECTION 3.04.  This part takes effect September 1, 1993,
   56-4  except that Sections 3.01 and 3.03 of this part take effect January
   56-5  1, 1994.
   56-6                             PART 4.  MAIL
   56-7        SECTION 4.01.  Article 11, State Purchasing and General
   56-8  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   56-9  amended by adding Section 11.021 to read as follows:
  56-10        Sec. 11.021.  OUTGOING FIRST-CLASS MAIL.  (a)  This section
  56-11  applies only to outgoing first-class mail practices of state
  56-12  agencies located in Travis County.
  56-13        (b)  The commission shall evaluate and coordinate the
  56-14  outgoing first-class mail practices of state agencies located in
  56-15  Travis County, including the lists, systems, and formats used to
  56-16  create mail.  The commission shall adopt rules for the state
  56-17  agencies to implement this section.
  56-18        (c)  The commission shall achieve the maximum available
  56-19  discount on postal rates in all cases in which acceptable levels of
  56-20  timeliness, security, and quality of service can be maintained
  56-21  notwithstanding the discounted rate.
  56-22        (d)  A state agency to which this section applies shall
  56-23  consult with the commission before the agency may:
  56-24              (1)  purchase, upgrade, or sell mail processing
  56-25  equipment;
  56-26              (2)  contract with a private entity for mail
  56-27  processing; or
   57-1              (3)  take actions that significantly affect the
   57-2  agency's first-class mail practices.
   57-3        (e)  The commission by interagency contract shall establish a
   57-4  fee-for-service structure to charge and collect fees from each
   57-5  state agency to which this section applies for the commission's
   57-6  services under this section.  The total amount charged a state
   57-7  agency under this section shall be the same as the amount of the
   57-8  agency's appropriated funds for outgoing first-class mail, as
   57-9  determined by the Legislative Budget Board, minus the agency's
  57-10  fixed costs for these services.  The commission shall transfer to
  57-11  the general revenue fund the amount of a fee charged a state agency
  57-12  under this subsection that is greater than the amount of the
  57-13  commission's actual expenses for performing services for the
  57-14  agency.
  57-15        (f)  The commission shall adopt and distribute to each state
  57-16  agency to which this section applies guidelines by which state
  57-17  outgoing first-class mail practices may be measured and analyzed,
  57-18  using, to the extent possible, the services of the United States
  57-19  Postal Service.  The commission shall review and update these
  57-20  guidelines not less often than once every two years after the date
  57-21  of the adoption of the guidelines.  Not later than the 90th day
  57-22  after the date of the distribution of the initial guidelines and
  57-23  not less often than annually after the date of that distribution,
  57-24  the commission shall provide training to state agency personnel who
  57-25  handle first-class mail.  The commission, to the extent possible,
  57-26  may use the free training provided by the United States Postal
  57-27  Service.
   58-1        (g)  If the commission determines that the upgrade of
   58-2  existing mail production or processing equipment or the purchase of
   58-3  new mail production or processing equipment is required to improve
   58-4  the outgoing first-class mail practices of the commission or other
   58-5  state agencies located in Travis County, the commission shall
   58-6  prepare a cost-benefit analysis demonstrating that the upgrade or
   58-7  purchase is more cost-effective than contracting with a private
   58-8  entity to provide that equipment or mail service.  The commission
   58-9  shall approve the most cost-effective method.
  58-10        (h)  A cost-benefit analysis prepared under this section and
  58-11  a request for bids or a request for proposals prepared to implement
  58-12  a course of action under this section shall be sent to the state
  58-13  auditor for review and comment as soon as practicable after
  58-14  preparation.  The state auditor's office shall perform its review
  58-15  and offer its comments not later than the 14th working day after
  58-16  the day it receives the analysis or the request for bids or
  58-17  proposals.
  58-18        (i)  Not later than February 1, 1995, the commission shall
  58-19  report to the legislature all significant changes in first-class
  58-20  mail practices under this section.  The report shall include a
  58-21  discussion of funds transferred to the general revenue fund under
  58-22  Subsection (e) of this section.  This subsection expires June 1,
  58-23  1995.
  58-24        SECTION 4.02.  This part takes effect immediately.
  58-25                    PART 5.  RECORDS COST RECOVERY
  58-26        SECTION 5.01.   In Sections 5.02 through 5.04 of this part:
  58-27              (1)  "State agency" has the meaning assigned by
   59-1  Sections 1.02(2)(A) and (C), State Purchasing and General Services
   59-2  Act (Article 601b, Vernon's Texas Civil Statutes).
   59-3              (2)  "Commission" means the General Services
   59-4  Commission.
   59-5              (3)  "Public records" has the meaning assigned by
   59-6  Section 2(2), Chapter 424, Acts of the 63rd Legislature, Regular
   59-7  Session, 1973 (Article 6252-17a, Vernon's Texas Civil Statutes),
   59-8  and its subsequent amendments.
   59-9        SECTION 5.02.  (a)  The commission shall conduct a study of
  59-10  the charges made by state agencies for copies of public records.
  59-11        (b)  The attorney general, comptroller, Department of Public
  59-12  Safety, Texas Department of Human Services, and Texas State Board
  59-13  of Public Accountancy shall help conduct the study.
  59-14        (c)  The commission shall prepare a report of its findings
  59-15  under the study and shall provide a copy of the report to each
  59-16  state agency before December 1, 1993.
  59-17        SECTION 5.03.  (a)  Each state agency shall review its
  59-18  processes for providing access to and copies of public records and
  59-19  shall analyze the charges the state agency makes for the copies.
  59-20        (b)  A state agency shall prepare a report of its review and
  59-21  analysis and shall provide a copy of the report to the commission,
  59-22  the Legislative Budget Board, and the comptroller before May 1,
  59-23  1994.
  59-24        (c)  The commission shall assist a state agency without
  59-25  accounting expertise in making the review and analysis required by
  59-26  this section.
  59-27        SECTION 5.04.  (a)  On September 1, 1993, each state agency
   60-1  shall:
   60-2              (1)  increase by 15 percent the amount of any charge
   60-3  the state agency has in place for providing a copy of a public
   60-4  record; and
   60-5              (2)  increase by 25 percent the amount of any charge
   60-6  the state agency has in place for providing a copy of a mailing
   60-7  list.
   60-8        (b)  This section does not apply to the Department of Public
   60-9  Safety.
  60-10        SECTION 5.05.  Chapter 424, Acts of the 63rd Legislature,
  60-11  Regular Session, 1973 (Article 6252-17a, Vernon's Texas Civil
  60-12  Statutes), is amended by adding Section 9A to read as follows:
  60-13        Sec. 9A.  CHARGES FOR PUBLIC RECORDS BY STATE AGENCY.
  60-14  (a)  The General Services Commission by rule shall specify the
  60-15  methods and procedures that a state agency may use in determining
  60-16  the amounts that the agency should charge to recover:
  60-17              (1)  the full cost to the agency of providing copies of
  60-18  public records under this Act; and
  60-19              (2)  the market value of a copy of a mailing list
  60-20  provided under this Act.  The commission shall prepare and
  60-21  distribute to state agencies a handbook that compiles and explains
  60-22  the methods and procedures for determining the cost and market
  60-23  value.
  60-24        (b)  Each state agency by rule shall specify the charges the
  60-25  agency will make for copies of public records.  A state agency may
  60-26  establish a charge for a copy of a public record that is equal to
  60-27  the full cost to the agency of providing the copy.
   61-1        (c)  In providing a copy of a mailing list, a state agency
   61-2  may charge a commercial user for the market value of the list.  In
   61-3  this subsection, "commercial user" means a purchaser of a public
   61-4  record who intends to use the record for the purpose of selling,
   61-5  advertising, or distributing a product or service.
   61-6        (d)  The charges that a state agency establishes for a copy
   61-7  of a public record and a copy of a mailing list must be at least
   61-8  equal to the charge the agency has in place on August 31, 1993,
   61-9  plus 15 percent for a copy of a public record or 25 percent for a
  61-10  copy of a mailing list.
  61-11        (e)(1)  A state agency shall pay to the comptroller for
  61-12  deposit in an unobligated account designated by the comptroller in
  61-13  the general revenue fund all money collected by the agency for
  61-14  providing copies of public records.
  61-15              (2)  Of the total amount of money deposited in the
  61-16  general revenue fund under Subdivision (1) of this subsection, the
  61-17  comptroller may transfer 25 percent of the money collected for
  61-18  providing copies of mailing lists and 15 percent of the money
  61-19  collected for providing copies of other public records to the
  61-20  general revenue fund.
  61-21              (3)  The comptroller shall adopt rules to administer
  61-22  this subsection.
  61-23        (f)  This section is cumulative of Section 9 of this Act.
  61-24        (g)  In this section, "state agency" has the meaning assigned
  61-25  by Sections 1.02(2)(A) and (C), State Purchasing and General
  61-26  Services Act (Article 601b, Vernon's Texas Civil Statutes).
  61-27        SECTION 5.06.  Sections 403.301 and 403.302, Government Code,
   62-1  are repealed.
   62-2        SECTION 5.07.  This part takes effect immediately.
   62-3           PART 6.  APPROPRIATIONS FOR CLAIMS AGAINST STATE
   62-4        SECTION 6.01.  Title 5, Civil Practice and Remedies Code, is
   62-5  amended by adding Chapter 109 to read as follows:
   62-6               CHAPTER 109.  APPROPRIATIONS FOR PAYMENT
   62-7                   OF CLAIMS AGAINST STATE AGENCIES
   62-8        Sec. 109.001.  DEFINITION.  In this chapter, "state agency"
   62-9  means any entity that constitutes the state government for purposes
  62-10  of Section 101.001.
  62-11        Sec. 109.002.  APPROPRIATIONS AS PROVIDED BY CHAPTER.  (a)
  62-12  The legislature may not make an appropriation to pay a claim for
  62-13  which the state government is liable under Chapter 101 and that
  62-14  results from the conduct of a state agency except as provided by
  62-15  this chapter.
  62-16        (b)  The legislature may not make an appropriation to
  62-17  indemnify an employee, member of a governing board, or other
  62-18  officer of a state agency under Chapter 104 except as provided by
  62-19  this chapter.
  62-20        Sec. 109.003.  SOURCE OF APPROPRIATION.  An appropriation
  62-21  subject to this chapter shall be made from available and previously
  62-22  unappropriated amounts in a special fund or account that may be
  62-23  appropriated for that purpose to the affected state agency.  To the
  62-24  extent those amounts are not available, the appropriation may be
  62-25  made from the general revenue fund.
  62-26        Sec. 109.004.  DEDUCTION FROM AGENCY APPROPRIATION.  (a)
  62-27  Subject to Subsections (b) and (c), for each appropriation made to
   63-1  pay a claim subject to this chapter the comptroller shall reduce an
   63-2  agency's appropriation in the General Appropriations Act by the
   63-3  same amount.
   63-4        (b)  The reduction in the appropriation for a state agency
   63-5  for a particular claim may not exceed $5,000.
   63-6        (c)  The total of all reductions in the appropriation for a
   63-7  state agency for any fiscal year under this section may not exceed
   63-8  five percent of the total appropriation made to that agency for
   63-9  that fiscal year.
  63-10        Sec. 109.005.  REPORTS.  (a)  The comptroller shall notify an
  63-11  affected state agency of:
  63-12              (1)  each claim subject to this chapter paid by the
  63-13  comptroller under this chapter for that state agency;
  63-14              (2)  the amount of the claim;
  63-15              (3)  the amount of the claim paid from a special fund
  63-16  or account;
  63-17              (4)  the amount of any reduction made under Section
  63-18  109.004; and
  63-19              (5)  the subject matter of the claim.
  63-20        (b)  Each agency shall summarize the information reported to
  63-21  it by the comptroller under Subsection (a) and report that
  63-22  information as part of the agency's annual report to the budget
  63-23  division of the governor's office and to the Legislative Budget
  63-24  Board as required by the General Appropriations Act.
  63-25        Sec. 109.006.  APPROPRIATION FOR CLAIM NOT LIMITED.  This
  63-26  chapter does not limit the amount the legislature may appropriate
  63-27  to pay claims subject to this chapter.
   64-1        Sec. 109.007.  EXCEPTIONS.  This chapter does not apply to an
   64-2  appropriation:
   64-3              (1)  to pay or indemnify a person for a negligent act
   64-4  or omission in the diagnosis, care, or treatment of a health care
   64-5  or mental health care patient, without regard to whether the claim
   64-6  is based on tort or contract principles;
   64-7              (2)  to pay a claim based on the conduct of a state
   64-8  medical school or of a hospital affiliated with an institution of
   64-9  higher education;
  64-10              (3)  to pay a claim based on the conduct of an
  64-11  institution of higher education; or
  64-12              (4)  to pay a claim based on the conduct of a state law
  64-13  enforcement or corrections agency, including the Department of
  64-14  Public Safety, the Texas Department of Criminal Justice, and the
  64-15  Board of Pardons and Paroles.
  64-16        SECTION 6.02.  (a)  This part takes effect September 1, 1993.
  64-17        (b)  Chapter 109, Civil Practice and Remedies Code, as added
  64-18  by this part, applies only to an appropriation made on or after
  64-19  September 1, 1994.  An appropriation made before September 1, 1994,
  64-20  is governed by the law in effect immediately before the effective
  64-21  date of this part, and that law is continued in effect for that
  64-22  purpose.
  64-23        (c)  Chapter 109, Civil Practice and Remedies Code, as added
  64-24  by this part, applies only to a claim that accrues after the
  64-25  effective date of this part and for which an appropriation is made
  64-26  on or after September 1, 1994.  A claim that accrues before the
  64-27  effective date of this part or for which an appropriation is made
   65-1  before September 1, 1994, is governed by the law in effect
   65-2  immediately before the effective date of this part, and that law is
   65-3  continued in effect for that purpose.
   65-4                          PART 7.  EMERGENCY
   65-5        SECTION 7.01.  The importance of this legislation and the
   65-6  crowded condition of the calendars in both houses create an
   65-7  emergency and an imperative public necessity that the
   65-8  constitutional rule requiring bills to be read on three several
   65-9  days in each house be suspended, and this rule is hereby suspended,
  65-10  and that this Act take effect and be in force according to its
  65-11  terms, and it is so enacted.