By:  Haley                                             S.B. No. 381
       73R4797 MJW-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to revising the process used by the state to acquire goods
    1-3  and services, including surplus property.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5               PART 1.  GENERAL STATE PURCHASING PROCESS
    1-6        SECTION 1.01.  The State Purchasing and General Services Act
    1-7  (Article 601b, Vernon's Texas Civil Statutes) is amended by adding
    1-8  Article 3A to read as follows:
    1-9                        ARTICLE 3A.  PURCHASING
   1-10        Sec. 3A.01.  APPLICABILITY.  This article applies to the
   1-11  acquisition of goods and services by the state.
   1-12        Sec. 3A.02.  ACQUISITION METHODS.  The state may acquire
   1-13  goods or services on the open market, under statewide or regional
   1-14  contracts, or by any other method that is most advantageous to the
   1-15  state.
   1-16        Sec. 3A.03.  SELECTION OF VENDOR.  The commission or any
   1-17  state agency that selects a vendor to provide goods or services is
   1-18  not required to select the vendor that provides the goods or
   1-19  services at the lowest price, but may exercise its best discretion
   1-20  and consider any factor that a prudent private business entity
   1-21  would consider in selecting a vendor, including:
   1-22              (1)  price;
   1-23              (2)  the reputation of the vendor and the vendor's
   1-24  goods or services;
    2-1              (3)  the quality of the vendor's goods or services;
    2-2              (4)  the extent to which the goods or services meet the
    2-3  needs of the state;
    2-4              (5)  the vendor's past relationship with the state or
    2-5  with the agency, if any; and
    2-6              (6)  the total long-term cost to the state of acquiring
    2-7  a vendor's goods or services.
    2-8        Sec. 3A.04.  CENTRAL AUTOMATED PURCHASING SYSTEM.  (a)  The
    2-9  commission shall design and administer a central automated
   2-10  purchasing system.  The system must be compatible with the uniform
   2-11  statewide accounting system.  State agencies must be able to use
   2-12  the system to select goods or services from an automated catalogue,
   2-13  order the goods or services electronically, and enter
   2-14  electronically the fact of receipt of the goods or services on the
   2-15  system.  An entry of receipt on the system will serve as an
   2-16  authorization for the comptroller to pay the vendor, if the
   2-17  comptroller verifies that the agency is authorized under law to
   2-18  purchase the goods or services.
   2-19        (b)  A state agency shall designate the persons who are
   2-20  authorized to enter purchase orders or other information on the
   2-21  system.
   2-22        (c)  The commission and the comptroller may adopt rules to
   2-23  administer this section.
   2-24        Sec. 3A.05.  COMMISSION ROLE IN STATE ACQUISITION OF GOODS
   2-25  AND SERVICES.  The commission shall obtain goods and services for
   2-26  state agencies under statewide or regional contracts, to the extent
   2-27  that that is advantageous for the state.  The commission shall
    3-1  advise state agencies, on request, on purchases the state agencies
    3-2  make themselves.  The commission shall develop statewide quality
    3-3  specifications for certain goods and services when that is
    3-4  appropriate.  The commission on request may deploy purchasing
    3-5  specialists to advise and assist agencies with agency procurements.
    3-6  The commission on request shall inspect goods received by an agency
    3-7  for quality and for conformity to specifications.
    3-8        Sec. 3A.06.  STATE AGENCY ROLE IN ACQUISITION OF ITS GOODS
    3-9  AND SERVICES.  A state agency may use its discretion to acquire for
   3-10  itself the goods and services it needs, subject to any applicable
   3-11  limitations prescribed by the General Appropriations Act, unless
   3-12  goods or services that are suitable for the agency's needs are
   3-13  available under a statewide or regional contract.  An agency shall
   3-14  acquire goods or services listed on the central automated
   3-15  purchasing system if that is most advantageous for the state.
   3-16        SECTION 1.02.  (a)  Article 3, State Purchasing and General
   3-17  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   3-18  repealed.
   3-19        (b)  Sections 14-18 and 20, Information Resources Management
   3-20  Act (Article 4413(32j), Revised Statutes), are repealed.
   3-21        (c)  The functions of the Department of Information Resources
   3-22  under Sections 12 and 13, Information Resources Management Act
   3-23  (Article 4413(32j), Revised Statutes), are transferred to the
   3-24  General Services Commission.
   3-25        SECTION 1.03.  The comptroller, General Services Commission,
   3-26  and Department of Information Resources shall each appoint
   3-27  representatives to a working group that will prepare for and
    4-1  monitor the implementation of Article 3A, State Purchasing and
    4-2  General Services Act (Article 601b, Vernon's Texas Civil Statutes),
    4-3  as added by this part.
    4-4        SECTION 1.04.  Sections 1.01 and 1.02 of this part take
    4-5  effect September 1, 1994.  This section and Section 1.03 of this
    4-6  part take effect immediately.
    4-7          PART 2.  ABOLITION OF TEXAS SURPLUS PROPERTY AGENCY
    4-8        SECTION 2.01.  Section 8.01(a), State Purchasing and General
    4-9  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   4-10  amended to read as follows:
   4-11        (a)  This article applies to:
   4-12              (1)  personal property belonging to the state; and
   4-13              (2)  real or personal property acquired by or otherwise
   4-14  under the commission's jurisdiction under Section 9.16 of this Act
   4-15  and 40 U.S.C. Section 483c, 484(j), or 484(k).
   4-16        SECTION 2.02.  Section 9.01(a), State Purchasing and General
   4-17  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   4-18  amended by amending Subdivisions (3) and (4) and adding Subdivision
   4-19  (8) to read as follows:
   4-20              (3)  "Property" means personal property.  The term does
   4-21  not include real property, or any interest in real property, except
   4-22  federal real property acquired under Section 9.16 of this article
   4-23  and Section 484(k), Federal Property and Administrative Services
   4-24  Act.  Personal<; however, personal> property affixed to real
   4-25  property may be sold under this law if its removal and disposition
   4-26  is to carry out a lawful objective under this law or any other law.
   4-27  The term includes property lawfully confiscated and subject to
    5-1  disposal by a state agency.
    5-2              (4)  "Surplus property":
    5-3                    (A)  means:
    5-4                          (i)  any personal property which is in
    5-5  excess of the needs of  any state agency and which is not required
    5-6  for its foreseeable needs; or
    5-7                          (ii)  federal surplus property acquired by
    5-8  the commission or otherwise under the commission's jurisdiction
    5-9  under Section 9.16 of this article and Section 483c, 484(j), or
   5-10  484(k), Federal Property and Administrative Services Act; and
   5-11                    (B)  includes property that<.  Surplus property>
   5-12  may be used or new but possesses some usefulness for the purpose
   5-13  for which it was intended or for some other purpose.
   5-14              (8)  "Federal Property and Administrative Services Act"
   5-15  means the Federal Property and Administrative Services Act of 1949
   5-16  (40 U.S.C. Section 484).
   5-17        SECTION 2.03.  Section 9.02, State Purchasing and General
   5-18  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   5-19  amended to read as follows:
   5-20        Sec. 9.02.  Establishment of Procedures.  The commission
   5-21  shall establish and maintain procedures for the transfer, sale, or
   5-22  disposal, as prescribed by law, of:
   5-23              (1)  surplus and salvage property no longer needed by
   5-24  state agencies; and
   5-25              (2)  federal surplus property that the state acquires
   5-26  under the Federal Property and Administrative Services Act.
   5-27        SECTION 2.04.  Section 9.03, State Purchasing and General
    6-1  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
    6-2  amended to read as follows:
    6-3        Sec. 9.03.  Mailing lists of assistance organizations and
    6-4  political subdivisions.  The commission shall maintain a mailing
    6-5  list, renewable annually, of assistance organizations and political
    6-6  subdivision purchasing agents or other officers performing similar
    6-7  functions who have asked for information on surplus or salvage
    6-8  equipment or material the state may have available.  <The
    6-9  commission shall provide the list to the Texas Surplus Property
   6-10  Agency.>
   6-11        SECTION 2.05.  Section 9.05(a), State Purchasing and General
   6-12  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   6-13  amended to read as follows:
   6-14        (a)  If surplus or salvage property of a state agency is not
   6-15  disposed of under the provisions of Section 9.04 of this article,
   6-16  the commission shall sell the property by competitive bid or
   6-17  auction or delegate to the state agency having possession of the
   6-18  property the authority to sell the property on a competitive bid
   6-19  basis.  The commission or agency shall collect a fee from the
   6-20  purchaser.  The commission shall set the fee in an amount to
   6-21  recover the costs associated with the sale of the property, but the
   6-22  amount may not be less than two percent nor more than 12 percent of
   6-23  the proceeds from the sale of the property.
   6-24        SECTION 2.06.  Section 9.14, State Purchasing and General
   6-25  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   6-26  amended to read as follows:
   6-27        Sec. 9.14.  Authorization of Agencies to Dispose of Property.
    7-1  The commission may authorize an agency to dispose of surplus or
    7-2  salvage property where the agency demonstrates to the commission
    7-3  its ability to make such disposition under the rules and
    7-4  regulations set up by the commission, as provided for herein.
    7-5  State eleemosynary institutions and institutions and agencies of
    7-6  higher learning shall be excepted from the terms of this article
    7-7  that relate to the disposition of their surplus or salvage
    7-8  property.
    7-9        SECTION 2.07.  Article 9, State Purchasing and General
   7-10  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   7-11  amended by adding Sections 9.16 and 9.17 to read as follows:
   7-12        Sec. 9.16.  FEDERAL SURPLUS PROPERTY.  (a)  The commission is
   7-13  the designated state agency under Section 484(j) of the Federal
   7-14  Property and Administrative Services Act.
   7-15        (b)  The commission may:
   7-16              (1)  acquire and warehouse federal property allocated
   7-17  to the commission under the Federal Property and Administrative
   7-18  Services Act; and
   7-19              (2)  distribute the property:
   7-20                    (A)  to an entity or institution that meets the
   7-21  qualifications for eligibility for the property under the Federal
   7-22  Property and Administrative Services Act; and
   7-23                    (B)  without complying with the provisions of
   7-24  this article that relate to the disposition of surplus state agency
   7-25  property.
   7-26        (c)  The commission may:
   7-27              (1)  disseminate information and assist a potential
    8-1  applicant regarding the availability of federal surplus real
    8-2  property;
    8-3              (2)  assist in the processing of an application for
    8-4  acquisition of federal real property and related personal property
    8-5  under Section 484(k) of the Federal Property and Administrative
    8-6  Services Act;
    8-7              (3)  assist in assuring use of the property; and
    8-8              (4)  engage in an activity relating to the use of
    8-9  federal surplus property by another state agency, institution, or
   8-10  organization engaging in or receiving assistance under a federal
   8-11  program.
   8-12        (d)  The commission shall:
   8-13              (1)  file a state plan of operation that complies with
   8-14  federal law and operate in accordance with the plan;
   8-15              (2)  take necessary action to meet the minimum
   8-16  standards for a state agency in accordance with the Federal
   8-17  Property and Administrative Services Act; and
   8-18              (3)  cooperate to the fullest extent consistent with
   8-19  this section.
   8-20        (e)  The commission may:
   8-21              (1)  make the necessary certifications and undertake
   8-22  necessary action, including an investigation;
   8-23              (2)  make expenditures or reports that may be required
   8-24  by federal law or regulation or that are otherwise necessary to
   8-25  provide for the proper and efficient management of the commission's
   8-26  functions under this section;
   8-27              (3)  provide information and reports relating to the
    9-1  commission's activities under this section that may be required by
    9-2  a federal agency or department; and
    9-3              (4)  adopt rules necessary for the efficient operation
    9-4  of its activities  under this section or as may be required by
    9-5  federal law or regulation.
    9-6        (f)  The commission may enter into an agreement, including:
    9-7              (1)  a cooperative agreement with a federal agency
    9-8  under Section 484(n) of the Federal Property and Administrative
    9-9  Services Act;
   9-10              (2)  an agreement with a state agency for surplus
   9-11  property of a state agency that will promote the administration of
   9-12  the commission's functions under this section; or
   9-13              (3)  an agreement with a group or association of state
   9-14  agencies for surplus property that will promote the administration
   9-15  of the commission's functions under this section.
   9-16        (g)  The commission may act as an information clearinghouse
   9-17  for an entity or institution that may be eligible to acquire
   9-18  federal surplus property and may assist, as necessary, the entity
   9-19  or institution to obtain federal surplus property.
   9-20        (h)  The commission may:
   9-21              (1)  acquire and hold title or make capital
   9-22  improvements to real property, in accordance with Subsection (i) of
   9-23  this section; or
   9-24              (2)  make an advance payment of rent for a distribution
   9-25  center, office space, or another facility that is required to carry
   9-26  out the commission's functions under this section.
   9-27        (i)  The commission may collect a service charge for the
   10-1  commission's acquisition, warehousing, distribution, or transfer of
   10-2  property.  The commission may not collect a charge for real
   10-3  property in an amount that is greater than the reasonable
   10-4  administrative cost the commission incurs in transferring the
   10-5  property.
   10-6        (j)  A charge collected under Subsection (i) of this section
   10-7  shall be deposited in the state treasury to the credit of  the
   10-8  surplus property service charge fund and  income earned on money in
   10-9  the surplus property service charge fund shall be credited to that
  10-10  fund.  Money in the fund may be used only to carry out the
  10-11  functions of the commission under this section.
  10-12        (k)  The commission may appoint advisory boards and
  10-13  committees necessary and suitable to administer this section.
  10-14        (l)  The commission may employ, compensate, and prescribe the
  10-15  duties of personnel, other than members of advisory boards and
  10-16  committees, necessary and suitable to administer this section.  A
  10-17  personnel position may only be filled by an individual selected and
  10-18  appointed on a nonpartisan merit basis.
  10-19        Sec. 9.17.  ADMINISTRATIVE COST RECOVERY STUDY.  The
  10-20  commission shall conduct a study to determine if its functions
  10-21  under this article of this Act can be made self-supporting by
  10-22  charging fees for commission services.  If the commission
  10-23  determines that a function can be made self-supporting through
  10-24  charging fees, the commission shall prepare a fee implementation
  10-25  plan.   Before January 1, 1995, the commission shall report to each
  10-26  member of the legislature the results of the study and the
  10-27  implementation plan for fee recovery, if any.  This section expires
   11-1  January 1, 1995.
   11-2        SECTION 2.08.  Section 403.271(a), Government Code, is
   11-3  amended to read as follows:
   11-4        (a)  This subchapter applies to:
   11-5              (1)  all personal property belonging to the state; and
   11-6              (2)  real and personal property acquired by or
   11-7  otherwise under the jurisdiction of the state under 40 U.S.C.
   11-8  Section 483c, 484(j), or 484(k), and Section 9.16, State Purchasing
   11-9  and General Services Act (Article 601b, Vernon's Texas Civil
  11-10  Statutes).
  11-11        SECTION 2.09.  (a)  The General Services Commission and the
  11-12  Texas Surplus Property Agency shall coordinate the transfer of all
  11-13  Texas Surplus Property Agency functions to the General Services
  11-14  Commission as required by this part.  The administrative functions
  11-15  of the Texas Surplus Property Agency are transferred to Austin.
  11-16        (b)  The transfer of all functions from the Texas Surplus
  11-17  Property Agency to the General Services Commission shall be
  11-18  accomplished as soon as practicable, but not later than the 45th
  11-19  day after the effective date of this part, at which time the Texas
  11-20  Surplus Property Agency is abolished.
  11-21        (c)  The transfer required by this part includes the transfer
  11-22  of all assets, duties, powers, obligations, and liabilities,
  11-23  including contracts, leases, real or personal property, funds,
  11-24  employees, furniture, computers and other equipment, and files and
  11-25  related materials used by the Texas Surplus Property Agency.
  11-26        (d)  A form, rule, or procedure adopted by the Texas Surplus
  11-27  Property Agency that is in effect on the effective date of this
   12-1  part remains in effect on and after that date as if adopted by the
   12-2  General Services Commission until amended, repealed, withdrawn, or
   12-3  otherwise superseded by the commission.
   12-4        (e)  All unexpended appropriations made to the Texas Surplus
   12-5  Property Agency are transferred to the General Services Commission.
   12-6        SECTION 2.10.  The following laws are repealed:
   12-7              (1)  Chapter 32, Acts of the 62nd Legislature, Regular
   12-8  Session, 1971 (Article 6252-6b, Vernon's Texas Civil Statutes); and
   12-9              (2)  Sections 9.04(d), (e), and (g), State Purchasing
  12-10  and General Services Act (Article 601b, Vernon's Texas Civil
  12-11  Statutes).
  12-12        SECTION 2.11.  This part takes effect September 1, 1993,
  12-13  except that:
  12-14              (1)  the amendment to Section 403.271(a), Government
  12-15  Code, takes effect when Subchapter L, Chapter 403, Government Code,
  12-16  as added by Section 2.30, Chapter 8, Acts of the 72nd Legislature,
  12-17  2nd Called Session, 1991, takes effect; and
  12-18              (2)  the amendment to Section 8.01(a), State Purchasing
  12-19  and General Services Act (Article 601b, Vernon's Texas Civil
  12-20  Statutes), does not take effect if on or before September 1, 1993,
  12-21  Article 8, State Purchasing and General Services Act (Article 601b,
  12-22  Vernon's Texas Civil Statutes), is repealed on certification by the
  12-23  comptroller of the implementation of the fixed asset component of
  12-24  the uniform statewide accounting system, in accordance with Section
  12-25  6.01(d), Chapter 8, Acts of the 72nd Legislature, 2nd Called
  12-26  Session, 1991.
  12-27                          PART 3.  EMERGENCY
   13-1        SECTION 3.01.  The importance of this legislation and the
   13-2  crowded condition of the calendars in both houses create an
   13-3  emergency and an imperative public necessity that the
   13-4  constitutional rule requiring bills to be read on three several
   13-5  days in each house be suspended, and this rule is hereby suspended,
   13-6  and that this Act take effect and be in force according to its
   13-7  terms, and it is so enacted.