1-1  By:  Haley                                             S.B. No. 381
    1-2        (In the Senate - Filed February 17, 1993; February 18, 1993,
    1-3  read first time and referred to Committee on State Affairs;
    1-4  March 5, 1993, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 11, Nays 0; March 5, 1993,
    1-6  sent to printer.)
    1-7                            COMMITTEE VOTE
    1-8                          Yea     Nay      PNV      Absent 
    1-9        Harris of Dallas   x                               
   1-10        Rosson             x                               
   1-11        Carriker           x                               
   1-12        Henderson          x                               
   1-13        Leedom             x                               
   1-14        Lucio              x                               
   1-15        Luna               x                               
   1-16        Nelson             x                               
   1-17        Patterson          x                               
   1-18        Shelley            x                               
   1-19        Sibley                                         x   
   1-20        West               x                               
   1-21        Whitmire                                       x   
   1-22  COMMITTEE SUBSTITUTE FOR S.B. No. 381                    By:  Lucio
   1-23                         A BILL TO BE ENTITLED
   1-24                                AN ACT
   1-25  relating to the acquisition or provision of goods, services, and
   1-26  records by the state.
   1-27        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-28               PART 1.  GENERAL STATE PURCHASING PROCESS
   1-29        SECTION 1.01.  The State Purchasing and General Services Act
   1-30  (Article 601b, Vernon's Texas Civil Statutes) is amended by adding
   1-31  Article 3A to read as follows:
   1-32                        ARTICLE 3A.  PURCHASING
   1-33        Sec. 3A.01.  APPLICABILITY.  This article applies to the
   1-34  acquisition of goods and services by the state.
   1-35        Sec. 3A.02.  ACQUISITION METHODS.  The state may acquire
   1-36  goods or services on the open market, under statewide or regional
   1-37  contracts, or by any other method that is most advantageous to the
   1-38  state.
   1-39        Sec. 3A.03.  SELECTION OF VENDOR.  The commission or any
   1-40  state agency that selects a vendor to provide goods or services is
   1-41  not required to select the vendor that provides the goods or
   1-42  services at the lowest price, but may exercise its best discretion
   1-43  and consider any factor that a prudent private business entity
   1-44  would consider in selecting a vendor, including:
   1-45              (1)  price;
   1-46              (2)  the reputation of the vendor and the vendor's
   1-47  goods or services;
   1-48              (3)  the quality of the vendor's goods or services;
   1-49              (4)  the extent to which the goods or services meet the
   1-50  needs of the state;
   1-51              (5)  the vendor's past relationship with the state or
   1-52  with the agency, if any; and
   1-53              (6)  the total long-term cost to the state of acquiring
   1-54  a vendor's goods or services.
   1-55        Sec. 3A.04.  CENTRAL AUTOMATED PURCHASING SYSTEM.  (a)  The
   1-56  commission shall design and administer a central automated
   1-57  purchasing system.  The system must be compatible with the uniform
   1-58  statewide accounting system.  State agencies must be able to use
   1-59  the system to select goods or services from an automated catalogue,
   1-60  order the goods or services electronically, and enter
   1-61  electronically the fact of receipt of the goods or services on the
   1-62  system.  An entry of receipt on the system will serve as an
   1-63  authorization for the comptroller to pay the vendor, if the
   1-64  comptroller verifies that the agency is authorized under law to
   1-65  purchase the goods or services.
   1-66        (b)  A state agency shall designate the persons who are
   1-67  authorized to enter purchase orders or other information on the
   1-68  system.
    2-1        (c)  The commission and the comptroller may adopt rules to
    2-2  administer this section.
    2-3        Sec. 3A.05.  COMMISSION ROLE IN STATE ACQUISITION OF GOODS
    2-4  AND SERVICES.  The commission shall obtain goods and services for
    2-5  state agencies under statewide or regional contracts, to the extent
    2-6  that that is advantageous for the state.  The commission shall
    2-7  advise state agencies on request on purchases the state agencies
    2-8  make themselves.  The commission shall develop statewide quality
    2-9  specifications for certain goods and services when that is
   2-10  appropriate.  The commission on request may deploy purchasing
   2-11  specialists to advise and assist agencies with agency procurements.
   2-12  The commission on request shall inspect goods received by an agency
   2-13  for quality and for conformity to specifications.
   2-14        Sec. 3A.06.  STATE AGENCY ROLE IN ACQUISITION OF ITS GOODS
   2-15  AND SERVICES.  A state agency may use its discretion to acquire for
   2-16  itself the goods and services it needs, subject to any applicable
   2-17  limitations prescribed by the General Appropriations Act, unless
   2-18  goods or services that are suitable for the agency's needs are
   2-19  available under a statewide or regional contract.  An agency shall
   2-20  acquire goods or services listed on the central automated
   2-21  purchasing system if that is most advantageous for the state.
   2-22        Sec. 3A.07.  CATALOGUE PURCHASE PROCEDURE.  (a)  A vendor who
   2-23  wants to sell or lease automated information systems under this
   2-24  section to state agencies covered by the Information Resources
   2-25  Management Act (Article 4413(32j), Revised Statutes) shall apply to
   2-26  the commission for designation as a "qualified information systems
   2-27  vendor" according to an application process promulgated by the
   2-28  commission.  At a minimum, the application process shall include
   2-29  submission of the following elements:
   2-30              (1)  a catalogue containing all products and services
   2-31  eligible for purchase by state agencies, including descriptions of
   2-32  each product or service, the list price of each product or service,
   2-33  and the price to state agencies of each product or service;
   2-34              (2)  a maintenance, repair, and support plan for all
   2-35  eligible products and services;
   2-36              (3)  proof of the applicant's financial resources and
   2-37  ability to perform; and
   2-38              (4)  a guarantee that the vendor will make available
   2-39  equivalent replacement parts for products sold to Texas for at
   2-40  least three years from the date of a product's discontinuation.
   2-41        (b)  Within 90 days of the effective date of this section,
   2-42  the commission shall establish standards and criteria for
   2-43  designating qualified information systems vendors on a regional and
   2-44  statewide basis.  A vendor remains qualified until the commission
   2-45  determines the vendor fails to meet the criteria set forth in this
   2-46  section.  Vendors granted regional status may sell catalogue-listed
   2-47  products and services directly to state agencies covered by the
   2-48  Information Resources Management Act (Article 4413(32j), Revised
   2-49  Statutes) within a region defined by the commission.  Vendors
   2-50  granted statewide status may sell catalogue-listed products and
   2-51  services directly to any state agency covered by the Information
   2-52  Resources Management Act (Article 4413(32j), Revised Statutes).
   2-53  The commission's standards and criteria shall be developed in
   2-54  accordance with the following parameters:
   2-55              (1)  the ability of the vendor to provide adequate and
   2-56  reliable support and maintenance;
   2-57              (2)  the vendor's ability to provide adequate and
   2-58  reliable support and maintenance in the future;
   2-59              (3)  the technical adequacy and reliability of the
   2-60  vendor's products; and
   2-61              (4)  consistency with standards adopted by the
   2-62  Department of Information Resources.
   2-63        (c)  If a vendor is designated by the commission as a
   2-64  qualified information systems vendor, the vendor shall publish and
   2-65  maintain a catalogue containing all products and services eligible
   2-66  for purchase by state agencies, including descriptions of each
   2-67  product or service, the list price of each product or service, and
   2-68  the price to state agencies of each product or service.  The vendor
   2-69  shall update the catalogue on an as-needed basis to reflect changes
   2-70  in price or the availability of products or services and shall
    3-1  forward a copy of each updated catalogue to the commission and all
    3-2  eligible purchasers.
    3-3        (d)  A state agency covered by the Information Resources
    3-4  Management Act (Article 4413(32j), Revised Statutes) may purchase
    3-5  or lease automated information systems directly from a qualified
    3-6  information systems vendor and may negotiate additional terms and
    3-7  conditions to be included in contracts relating to the purchase or
    3-8  lease, provided the purchase or lease is based on the best value
    3-9  available and is in the state's best interest.  In determining
   3-10  which products or services are in the state's best interest, the
   3-11  agency shall consider the following factors:
   3-12              (1)  installation costs and hardware costs;
   3-13              (2)  the overall life-cycle cost of the system or
   3-14  equipment;
   3-15              (3)  estimated cost of employee training and estimated
   3-16  increase in employee productivity;
   3-17              (4)  estimated software and maintenance costs; and
   3-18              (5)  compliance with applicable statewide standards
   3-19  adopted by the Department of Information Resources as validated by
   3-20  criteria established by the department in administrative rules.
   3-21        (e)  The commission shall establish rules and regulations and
   3-22  implement the catalogue purchase procedure set forth in this
   3-23  section no later than January 1, 1994.
   3-24        (f)  Purchases of automated information systems shall be made
   3-25  through the catalogue procedure enumerated in this section unless
   3-26  the commission determines that the best value available accrues
   3-27  from an alternative purchase method authorized by this Act.
   3-28        SECTION 1.02.  Section 1.02, State Purchasing and General
   3-29  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   3-30  amended by adding Subdivisions (4), (5), and (6) to read as
   3-31  follows:
   3-32              (4)  "Automated information systems" means any
   3-33  automated information systems, the computers on which they are
   3-34  automated, or a service related to the automation of information
   3-35  systems or the computers on which they are automated, including
   3-36  computer software, awarded to a vendor by a state agency covered by
   3-37  the Information Resources Management Act (Article 4413(32j),
   3-38  Revised Statutes) or any telecommunications apparatus or device
   3-39  that serves as a component of a voice, data, or video
   3-40  communications network for the purpose of transmitting, switching,
   3-41  routing, multiplexing, modulating, amplifying, or receiving signals
   3-42  on that network.
   3-43              (5)  "Best value" means lowest overall cost of
   3-44  automated information systems based on the following factors
   3-45  including but not limited to:
   3-46                    (A)  purchase price;
   3-47                    (B)  compatibility to facilitate exchange of
   3-48  existing data;
   3-49                    (C)  capacity for expansion and upgrading to more
   3-50  advanced levels of technology;
   3-51                    (D)  quantitative reliability factors;
   3-52                    (E)  the level of training required to bring
   3-53  end-users to a stated level of proficiency;
   3-54                    (F)  the technical support requirements for
   3-55  maintenance of data across a network platform and management of the
   3-56  network's hardware and software; and
   3-57                    (G)  compliance with applicable statewide
   3-58  standards adopted by the Department of Information Resources as
   3-59  validated by criteria established by the department in
   3-60  administrative rules.
   3-61              (6)  "Qualified information systems vendor" means
   3-62  manufacturers or wholesale sellers of automated information systems
   3-63  who are authorized by the commission to publish catalogues of
   3-64  products and services which may be directly purchased by state
   3-65  agencies covered by the Information Resources Management Act
   3-66  (Article 4413(32j), Revised Statutes).
   3-67        SECTION 1.03.  Article 3, State Purchasing and General
   3-68  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   3-69  repealed.
   3-70        SECTION 1.04.  (a)  Sections 4 through 8, 11, and 18,
    4-1  Information Resources Management Act (Article 4413(32j), Revised
    4-2  Statutes), are repealed.
    4-3        (b)  All functions of the Department of Information Resources
    4-4  under the Information Resources Management Act (Article 4413(32j),
    4-5  Revised Statutes) and other law are transferred to the General
    4-6  Services Commission.  The Department of Information Resources is
    4-7  abolished.  All powers, duties, rights, obligations, property,
    4-8  funds, employees, and unspent appropriations of the department are
    4-9  transferred to the commission.  All rules of the department that do
   4-10  not implement repealed law are continued in effect as rules of the
   4-11  commission until superseded by the commission.  Any reference in
   4-12  law to the Department of Information Resources or the Automated
   4-13  Information and Telecommunications Council means the General
   4-14  Services Commission.  This section does not increase the
   4-15  proportionate representation of the commission on any entity on
   4-16  which the commission and the department both have representatives.
   4-17        SECTION 1.05.  The comptroller and General Services
   4-18  Commission shall each appoint representatives to a working group
   4-19  that will prepare for and monitor the implementation of Article 3A,
   4-20  State Purchasing and General Services Act (Article 601b, Vernon's
   4-21  Texas Civil Statutes), as added by this part.
   4-22        SECTION 1.06.  Sections 1.01, 1.02, and 1.03 of this part
   4-23  take effect September 1, 1994.  This section and Sections 1.04 and
   4-24  1.05 of this part take effect immediately.
   4-25          PART 2.  ABOLITION OF TEXAS SURPLUS PROPERTY AGENCY
   4-26        SECTION 2.01.  Subsection (a), Section 8.01, State Purchasing
   4-27  and General Services Act (Article 601b, Vernon's Texas Civil
   4-28  Statutes), is amended to read as follows:
   4-29        (a)  This article applies to:
   4-30              (1)  personal property belonging to the state; and
   4-31              (2)  real or personal property acquired by or otherwise
   4-32  under the commission's jurisdiction under Section 9.16 of this Act
   4-33  and 40 U.S.C. Section 483c, 484(j), or 484(k).
   4-34        SECTION 2.02.  Subsection (a), Section 9.01, State Purchasing
   4-35  and General Services Act (Article 601b, Vernon's Texas Civil
   4-36  Statutes), is amended by amending Subdivisions (3) and (4) and
   4-37  adding Subdivision (8) to read as follows:
   4-38              (3)  "Property" means personal property.  The term does
   4-39  not include real property, or any interest in real property, except
   4-40  federal real property acquired under Section 9.16 of this article
   4-41  and Section 484(k), Federal Property and Administrative Services
   4-42  Act.  Personal<; however, personal> property affixed to real
   4-43  property may be sold under this law if its removal and disposition
   4-44  is to carry out a lawful objective under this law or any other law.
   4-45  The term includes property lawfully confiscated and subject to
   4-46  disposal by a state agency.
   4-47              (4)  "Surplus property":
   4-48                    (A)  means:
   4-49                          (i)  any personal property which is in
   4-50  excess of the needs of  any state agency and which is not required
   4-51  for its foreseeable needs; or
   4-52                          (ii)  federal surplus property acquired by
   4-53  the commission or otherwise under the commission's jurisdiction
   4-54  under Section 9.16 of this article and Section 483c, 484(j), or
   4-55  484(k), Federal Property and Administrative Services Act; and
   4-56                    (B)  includes property that<.  Surplus property>
   4-57  may be used or new but possesses some usefulness for the purpose
   4-58  for which it was intended or for some other purpose.
   4-59              (8)  "Federal Property and Administrative Services Act"
   4-60  means the Federal Property and Administrative Services Act of 1949
   4-61  (40 U.S.C. Section 484).
   4-62        SECTION 2.03.  Section 9.02, State Purchasing and General
   4-63  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   4-64  amended to read as follows:
   4-65        Sec. 9.02.  Establishment of Procedures.  The commission
   4-66  shall establish and maintain procedures for the transfer, sale, or
   4-67  disposal, as prescribed by law, of:
   4-68              (1)  surplus and salvage property no longer needed by
   4-69  state agencies; and
   4-70              (2)  federal surplus property that the state acquires
    5-1  under the Federal Property and Administrative Services Act.
    5-2        SECTION 2.04.  Section 9.03, State Purchasing and General
    5-3  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
    5-4  amended to read as follows:
    5-5        Sec. 9.03.  Mailing lists of assistance organizations and
    5-6  political subdivisions.  The commission shall maintain a mailing
    5-7  list, renewable annually, of assistance organizations and political
    5-8  subdivision purchasing agents or other officers performing similar
    5-9  functions who have asked for information on surplus or salvage
   5-10  equipment or material the state may have available.  <The
   5-11  commission shall provide the list to the Texas Surplus Property
   5-12  Agency.>
   5-13        SECTION 2.05.  Subsection (a), Section 9.05, State Purchasing
   5-14  and General Services Act (Article 601b, Vernon's Texas Civil
   5-15  Statutes), is amended to read as follows:
   5-16        (a)  If surplus or salvage property of a state agency is not
   5-17  disposed of under the provisions of Section 9.04 of this article,
   5-18  the commission shall sell the property by competitive bid or
   5-19  auction or delegate to the state agency having possession of the
   5-20  property the authority to sell the property on a competitive bid
   5-21  basis.  The commission or agency shall collect a fee from the
   5-22  purchaser.  The commission shall set the fee in an amount to
   5-23  recover the costs associated with the sale of the property, but the
   5-24  amount may not be less than two percent nor more than 12 percent of
   5-25  the proceeds from the sale of the property.
   5-26        SECTION 2.06.  Section 9.14, State Purchasing and General
   5-27  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   5-28  amended to read as follows:
   5-29        Sec. 9.14.  Authorization of Agencies to Dispose of Property.
   5-30  The commission may authorize an agency to dispose of surplus or
   5-31  salvage property where the agency demonstrates to the commission
   5-32  its ability to make such disposition under the rules and
   5-33  regulations set up by the commission, as provided for herein.
   5-34  State eleemosynary institutions and institutions and agencies of
   5-35  higher learning shall be excepted from the terms of this article
   5-36  that relate to the disposition of their surplus or salvage
   5-37  property.
   5-38        SECTION 2.07.  Article 9, State Purchasing and General
   5-39  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   5-40  amended by adding Sections 9.16 and 9.17 to read as follows:
   5-41        Sec. 9.16.  FEDERAL SURPLUS PROPERTY.  (a)  The commission is
   5-42  the designated state agency under Section 484(j) of the Federal
   5-43  Property and Administrative Services Act.
   5-44        (b)  The commission may:
   5-45              (1)  acquire and warehouse federal property allocated
   5-46  to the commission under the Federal Property and Administrative
   5-47  Services Act; and
   5-48              (2)  distribute the property:
   5-49                    (A)  to an entity or institution that meets the
   5-50  qualifications for eligibility for the property under the Federal
   5-51  Property and Administrative Services Act; and
   5-52                    (B)  without complying with the provisions of
   5-53  this article that relate to the disposition of surplus state agency
   5-54  property.
   5-55        (c)  The commission may:
   5-56              (1)  disseminate information and assist a potential
   5-57  applicant regarding the availability of federal surplus real
   5-58  property;
   5-59              (2)  assist in the processing of an application for
   5-60  acquisition of federal real property and related personal property
   5-61  under Section 484(k) of the Federal Property and Administrative
   5-62  Services Act;
   5-63              (3)  assist in assuring use of the property; and
   5-64              (4)  engage in an activity relating to the use of
   5-65  federal surplus property by another state agency, institution, or
   5-66  organization engaging in or receiving assistance under a federal
   5-67  program.
   5-68        (d)  The commission shall:
   5-69              (1)  file a state plan of operation that complies with
   5-70  federal law and operate in accordance with the plan;
    6-1              (2)  take necessary action to meet the minimum
    6-2  standards for a state agency in accordance with the Federal
    6-3  Property and Administrative Services Act; and
    6-4              (3)  cooperate to the fullest extent consistent with
    6-5  this section.
    6-6        (e)  The commission may:
    6-7              (1)  make the necessary certifications and undertake
    6-8  necessary action, including an investigation;
    6-9              (2)  make expenditures or reports that may be required
   6-10  by federal law or regulation or that are otherwise necessary to
   6-11  provide for the proper and efficient management of the commission's
   6-12  functions under this section;
   6-13              (3)  provide information and reports relating to the
   6-14  commission's activities under this section that may be required by
   6-15  a federal agency or department; and
   6-16              (4)  adopt rules necessary for the efficient operation
   6-17  of its activities  under this section or as may be required by
   6-18  federal law or regulation.
   6-19        (f)  The commission may enter into an agreement, including:
   6-20              (1)  a cooperative agreement with a federal agency
   6-21  under Section 484(n) of the Federal Property and Administrative
   6-22  Services Act;
   6-23              (2)  an agreement with a state agency for surplus
   6-24  property of a state agency that will promote the administration of
   6-25  the commission's functions under this section; or
   6-26              (3)  an agreement with a group or association of state
   6-27  agencies for surplus property that will promote the administration
   6-28  of the commission's functions under this section.
   6-29        (g)  The commission may act as an information clearinghouse
   6-30  for an entity or institution that may be eligible to acquire
   6-31  federal surplus property and may assist, as necessary, the entity
   6-32  or institution to obtain federal surplus property.
   6-33        (h)  The commission may:
   6-34              (1)  acquire and hold title or make capital
   6-35  improvements to real property in accordance with Subsection (i) of
   6-36  this section; or
   6-37              (2)  make an advance payment of rent for a distribution
   6-38  center, office space, or another facility that is required to carry
   6-39  out the commission's functions under this section.
   6-40        (i)  The commission may collect a service charge for the
   6-41  commission's acquisition, warehousing, distribution, or transfer of
   6-42  property.  The commission may not collect a charge for real
   6-43  property in an amount that is greater than the reasonable
   6-44  administrative cost the commission incurs in transferring the
   6-45  property.
   6-46        (j)  A charge collected under Subsection (i) of this section
   6-47  shall be deposited in the state treasury to the credit of  the
   6-48  surplus property service charge fund, and  income earned on money
   6-49  in the surplus property service charge fund shall be credited to
   6-50  that fund.  Money in the fund may be used only to carry out the
   6-51  functions of the commission under this section.
   6-52        (k)  The commission may appoint advisory boards and
   6-53  committees necessary and suitable to administer this section.
   6-54        (l)  The commission may employ, compensate, and prescribe the
   6-55  duties of personnel, other than members of advisory boards and
   6-56  committees, necessary and suitable to administer this section.  A
   6-57  personnel position may only be filled by an individual selected and
   6-58  appointed on a nonpartisan merit basis.
   6-59        Sec. 9.17.  ADMINISTRATIVE COST RECOVERY STUDY.  The
   6-60  commission shall conduct a study to determine if its functions
   6-61  under this article can be made self-supporting by charging fees for
   6-62  commission services.  If the commission determines that a function
   6-63  can be made self-supporting through charging fees, the commission
   6-64  shall prepare a fee implementation plan.   Before January 1, 1995,
   6-65  the commission shall report to each member of the legislature the
   6-66  results of the study and the implementation plan for fee recovery,
   6-67  if any.  This section expires January 1, 1995.
   6-68        SECTION 2.08.  Subsection (a), Section 403.271, Government
   6-69  Code, is amended to read as follows:
   6-70        (a)  This subchapter applies to:
    7-1              (1)  all personal property belonging to the state; and
    7-2              (2)  real and personal property acquired by or
    7-3  otherwise under the jurisdiction of the state under 40 U.S.C.
    7-4  Section 483c, 484(j), or 484(k), and Section 9.16, State Purchasing
    7-5  and General Services Act (Article 601b, Vernon's Texas Civil
    7-6  Statutes).
    7-7        SECTION 2.09.  (a)  The General Services Commission and the
    7-8  Texas Surplus Property Agency shall coordinate the transfer of all
    7-9  Texas Surplus Property Agency functions to the General Services
   7-10  Commission as required by this part.  The administrative functions
   7-11  of the Texas Surplus Property Agency are transferred to Austin.
   7-12        (b)  The transfer of all functions from the Texas Surplus
   7-13  Property Agency to the General Services Commission shall be
   7-14  accomplished as soon as practicable, but not later than the 45th
   7-15  day after the effective date of this part, at which time the Texas
   7-16  Surplus Property Agency is abolished.
   7-17        (c)  The transfer required by this part includes the transfer
   7-18  of all assets, duties, powers, obligations, and liabilities,
   7-19  including contracts, leases, real or personal property, funds,
   7-20  employees, furniture, computers and other equipment, and files and
   7-21  related materials used by the Texas Surplus Property Agency.
   7-22        (d)  A form, rule, or procedure adopted by the Texas Surplus
   7-23  Property Agency that is in effect on the effective date of this
   7-24  part remains in effect on and after that date as if adopted by the
   7-25  General Services Commission until amended, repealed, withdrawn, or
   7-26  otherwise superseded by the commission.
   7-27        (e)  All unexpended appropriations made to the Texas Surplus
   7-28  Property Agency are transferred to the General Services Commission.
   7-29        SECTION 2.10.  The following laws are repealed:
   7-30              (1)  Chapter 32, Acts of the 62nd Legislature, Regular
   7-31  Session, 1971 (Article 6252-6b, Vernon's Texas Civil Statutes); and
   7-32              (2)  Subsections (d), (e), and (g), Section 9.04, State
   7-33  Purchasing and General Services Act (Article 601b, Vernon's Texas
   7-34  Civil Statutes).
   7-35        SECTION 2.11.  This part takes effect September 1, 1993,
   7-36  except that:
   7-37              (1)  the amendment to Subsection (a), Section 403.271,
   7-38  Government Code, takes effect when Subchapter L, Chapter 403,
   7-39  Government Code, as added by Section 2.30, Chapter 8, Acts of the
   7-40  72nd Legislature, 2nd Called Session, 1991, takes effect; and
   7-41              (2)  the amendment to Subsection (a), Section 8.01,
   7-42  State Purchasing and General Services Act (Article 601b, Vernon's
   7-43  Texas Civil Statutes), does not take effect if on or before
   7-44  September 1, 1993, Article 8, State Purchasing and General Services
   7-45  Act (Article 601b, Vernon's Texas Civil Statutes), is repealed on
   7-46  certification by the comptroller of the implementation of the fixed
   7-47  asset component of the uniform statewide accounting system, in
   7-48  accordance with Subsection (d), Section 6.01, Chapter 8, Acts of
   7-49  the 72nd Legislature, 2nd Called Session, 1991.
   7-50                            PART 3.  TRAVEL
   7-51        SECTION 3.01.  Section 14.01, State Purchasing and General
   7-52  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   7-53  amended to read as follows:
   7-54        Sec. 14.01.  Division.  The travel division of the commission
   7-55  is composed of the central travel office and the office of vehicle
   7-56  fleet maintenance.  The commission shall adopt rules to implement
   7-57  this article, including rules related to:
   7-58              (1)  the structure of travel agency contracts that the
   7-59  commission makes;
   7-60              (2)  the procedures the commission uses in requesting
   7-61  and evaluating bids or proposals for travel agency contracts from
   7-62  providers; <and>
   7-63              (3)  the use of negotiated contract rates for travel
   7-64  services by state agencies; and
   7-65              (4)  exemptions from the prohibition prescribed by
   7-66  Section 14.02(d) of this article.
   7-67        SECTION 3.02.  Subsections (b) and (c), Section 14.02, State
   7-68  Purchasing and General Services Act (Article 601b, Vernon's Texas
   7-69  Civil Statutes), are amended to read as follows:
   7-70        (b)  The central travel office shall initially provide
    8-1  services to designated agencies located in Travis County and shall
    8-2  extend its services to all state agencies as it develops the
    8-3  capability to do so.  The office may negotiate contracts with
    8-4  private travel agents, with travel and transportation providers,
    8-5  and with credit card companies that provide travel services and
    8-6  other benefits to the state.  The commission shall make contracts
    8-7  with more than one provider of travel agency services.  Contracts
    8-8  entered into under this section are not subject to the competitive
    8-9  bidding requirements imposed under Article 3 of this Act.  The
   8-10  comptroller of public accounts shall audit travel vouchers in
   8-11  accordance with Chapter 403, Government Code, and its subsequent
   8-12  amendments, for compliance with <of> rules adopted to enforce the
   8-13  provisions of this section.
   8-14        (c)  State agencies in the executive branch of state
   8-15  government shall participate in accordance with commission rules in
   8-16  the commission's contracts for travel services<, provided that
   8-17  institutions of higher education as defined by Section 61.003,
   8-18  Education Code, shall not be required to participate in the
   8-19  commission's contracts for travel agency services>.  The commission
   8-20  may provide by rule for exemptions from required participation.
   8-21  Agencies of the state that are not required to participate in
   8-22  commission contracts for travel services may participate as
   8-23  provided by Subsection (a) of this section.
   8-24        SECTION 3.03.  Section 14.02, State Purchasing and General
   8-25  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   8-26  amended by adding Subsections (d) and (e) to read as follows:
   8-27        (d)  This subsection applies only to a state agency in the
   8-28  executive branch of state government that is required to
   8-29  participate in the commission's contracts for travel services.
   8-30  Except as provided by commission rule, a state agency may not:
   8-31              (1)  purchase commercial airline or rental car
   8-32  transportation if the amount of the purchase exceeds the amount of
   8-33  the central travel office's contracted fares or rates; or
   8-34              (2)  reimburse a person for the purchase of commercial
   8-35  airline or rental car transportation for the amount that exceeds
   8-36  the amount of the central travel office's contracted fares or
   8-37  rates.
   8-38        (e)  The commission shall educate state agencies about
   8-39  Subsection (d) of this section.  The comptroller shall audit travel
   8-40  vouchers in accordance with Chapter 403, Government Code, and its
   8-41  subsequent amendments, for compliance with Subsection (d) of this
   8-42  section.  To facilitate the audit of the travel vouchers, the
   8-43  commission shall consult with the comptroller before the commission
   8-44  adopts rules or procedures under Subsection (d) of this section.
   8-45        SECTION 3.04.  This part takes effect September 1, 1993,
   8-46  except that Sections 3.01 and 3.03 of this part take effect January
   8-47  1, 1994.
   8-48                             PART 4.  MAIL
   8-49        SECTION 4.01.  Article 11, State Purchasing and General
   8-50  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   8-51  amended by adding Section 11.021 to read as follows:
   8-52        Sec. 11.021.  OUTGOING MAIL OPERATIONS.  (a)  This section
   8-53  applies only to mail that is not interagency mail under Section
   8-54  11.02 of this article and that is not intraagency mail.
   8-55        (b)  The commission shall evaluate and coordinate the mail
   8-56  operations of state agencies.  The commission shall adopt rules for
   8-57  state agencies to implement this section.
   8-58        (c)  The commission shall achieve the maximum available
   8-59  discount on postal rates in all cases in which acceptable levels of
   8-60  timeliness, security, and quality of service can be maintained
   8-61  notwithstanding the discounted rate.
   8-62        (d)  A state agency must receive approval from the commission
   8-63  before the agency may:
   8-64              (1)  purchase, upgrade, or sell mail processing
   8-65  equipment;
   8-66              (2)  contract with a private entity for mail
   8-67  processing; or
   8-68              (3)  take actions that significantly affect the
   8-69  agency's mail operations.
   8-70        (e)  The commission by interagency contract shall establish a
    9-1  fee-for-service structure to charge and collect fees from each
    9-2  state agency for the commission's services for mail operations.
    9-3  The total amount charged a state agency under this section shall be
    9-4  the same as the amount of the agency's appropriated funds for mail
    9-5  and messenger operations, as determined by the Legislative Budget
    9-6  Board, minus the agency's fixed costs for these services.  The
    9-7  commission shall transfer to the general revenue fund the amount of
    9-8  a fee charged a state agency under this subsection that is greater
    9-9  than the amount of the commission's actual expenses for performing
   9-10  services for the agency.
   9-11        (f)  The commission shall adopt and distribute to each state
   9-12  agency guidelines by which all state mail operations may be
   9-13  measured and analyzed, using, to the extent possible, the services
   9-14  of the United States Postal Service.  The commission shall review
   9-15  and update these guidelines not less often than once every two
   9-16  years after the date of the adoption of the guidelines.  Not later
   9-17  than the 90th day after the date of the distribution of the initial
   9-18  guidelines and not less often than annually after the date of that
   9-19  distribution, the commission shall provide training to state agency
   9-20  personnel who handle mail.  The commission, to the extent possible,
   9-21  may use the free training provided by the United States Postal
   9-22  Service.
   9-23        (g)  If the commission determines that the upgrade of
   9-24  existing commission mail equipment or the purchase of new mail
   9-25  equipment is required to improve the mail operations of state
   9-26  agencies, the commission shall prepare a cost-benefit analysis
   9-27  demonstrating that the upgrade or purchase is more cost-effective
   9-28  than contracting with a private entity to provide that equipment or
   9-29  mail service.
   9-30        (h)  Not later than February 1, 1995, the commission shall
   9-31  report to the legislature all significant changes in mail
   9-32  operations under this section.  The report shall include a
   9-33  discussion of funds transferred to the general revenue fund under
   9-34  Subsection (e) of this section.  This subsection expires June 1,
   9-35  1995.
   9-36        SECTION 4.02.  This part takes effect immediately.
   9-37                    PART 5.  RECORDS COST RECOVERY
   9-38        SECTION 5.01.   In Sections 5.02 through 5.04 of this part:
   9-39              (1)  "State agency" has the meaning assigned to the
   9-40  term "governmental body" by Paragraph (A), Subdivision (1), Section
   9-41  2, Chapter 424, Acts of the 63rd Legislature, Regular Session, 1973
   9-42  (Article 6252-17a, Vernon's Texas Civil Statutes), and its
   9-43  subsequent amendments.
   9-44              (2)  "Commission" means the General Services
   9-45  Commission.
   9-46              (3)  "Public records" has the meaning assigned by
   9-47  Subdivision (2), Section 2, Chapter 424, Acts of the 63rd
   9-48  Legislature, Regular Session, 1973 (Article 6252-17a, Vernon's
   9-49  Texas Civil Statutes), and its subsequent amendments.
   9-50        SECTION 5.02.  (a)  The commission shall conduct a study of
   9-51  the charges made by state agencies for copies of public records.
   9-52        (b)  The attorney general, comptroller, Department of Public
   9-53  Safety, Texas Department of Human Services, and Texas State Board
   9-54  of Public Accountancy shall help conduct the study.
   9-55        (c)  The commission shall prepare a report of its findings
   9-56  under the study and shall provide a copy of the report to each
   9-57  state agency before December 1, 1993.
   9-58        SECTION 5.03.  (a)  Each state agency shall review its
   9-59  processes for providing access to and copies of public records and
   9-60  shall analyze the charges the state agency makes for the copies.
   9-61        (b)  A state agency shall prepare a report of its review and
   9-62  analysis and shall provide a copy of the report to the commission,
   9-63  the Legislative Budget Board, and the comptroller before May 1,
   9-64  1994.
   9-65        (c)  The commission shall assist a state agency without
   9-66  accounting expertise in making the review and analysis required by
   9-67  this section.
   9-68        SECTION 5.04.  (a)  On September 1, 1993, each state agency
   9-69  shall:
   9-70              (1)  increase by 15 percent the amount of any charge
   10-1  the state agency has in place for providing a copy of a public
   10-2  record; and
   10-3              (2)  increase by 25 percent the amount of any charge
   10-4  the state agency has in place for providing a copy of a mailing
   10-5  list.
   10-6        (b)  An increase in the amount that a state agency charges
   10-7  for providing a copy imposed under Subsection (a) of this section
   10-8  remains in effect only until the agency adopts the rules required
   10-9  by Section 9A, Chapter 424, Acts of the 63rd Legislature, Regular
  10-10  Session, 1973 (Article 6252-17a, Vernon's Texas Civil Statutes), as
  10-11  added by this Act, and its subsequent amendments.
  10-12        (c)  This section does not apply to the Department of Public
  10-13  Safety.
  10-14        SECTION 5.05.  Chapter 424, Acts of the 63rd Legislature,
  10-15  Regular Session, 1973 (Article 6252-17a, Vernon's Texas Civil
  10-16  Statutes), is amended by adding Section 9A to read as follows:
  10-17        Sec. 9A.  CHARGES FOR PUBLIC RECORDS BY STATE AGENCY.
  10-18  (a)  The General Services Commission by rule shall specify the
  10-19  methods and procedures that a state agency may use in determining
  10-20  the amounts that the agency should charge to recover:
  10-21              (1)  the full cost to the agency of providing copies of
  10-22  public records under this Act; and
  10-23              (2)  the market value of a copy of a mailing list
  10-24  provided under this Act.  The commission shall prepare and
  10-25  distribute to state agencies a handbook that compiles and explains
  10-26  the methods and procedures for determining the cost and market
  10-27  value.
  10-28        (b)  Each state agency by rule shall specify the charges the
  10-29  agency will make for copies of public records.  A state agency may
  10-30  establish a charge for a copy of a public record that is equal to
  10-31  the full cost to the agency of providing the copy.
  10-32        (c)  In providing a copy of a mailing list, a state agency
  10-33  may charge a commercial user for the market value of the list.  In
  10-34  this subsection, "commercial user" means a purchaser of a public
  10-35  record who intends to use the record for the purpose of selling,
  10-36  advertising, or distributing a product or service.
  10-37        (d)(1)  A state agency shall pay to the comptroller for
  10-38  deposit in an unobligated account designated by the comptroller in
  10-39  the general revenue fund all money collected by the agency for
  10-40  providing copies of public records.
  10-41              (2)  Of the total amount of money deposited in the
  10-42  general revenue fund under Subdivision (1) of this subsection, the
  10-43  comptroller may transfer 25 percent of the money collected for
  10-44  providing copies of mailing lists and 15 percent of the money
  10-45  collected for providing copies of other public records to the
  10-46  general revenue fund.
  10-47              (3)  The comptroller shall adopt rules to administer
  10-48  this subsection.
  10-49        (e)  This section is cumulative of Section 9 of this Act.
  10-50        (f)  In this section, "state agency" means a governmental
  10-51  body described by Paragraph (A) of Subdivision (1) of Section 2 of
  10-52  this Act.
  10-53        SECTION 5.06.  Sections 403.301 and 403.302, Government Code,
  10-54  are repealed.
  10-55        SECTION 5.07.  This part takes effect immediately.
  10-56                          PART 6.  EMERGENCY
  10-57        SECTION 6.01.  The importance of this legislation and the
  10-58  crowded condition of the calendars in both houses create an
  10-59  emergency and an imperative public necessity that the
  10-60  constitutional rule requiring bills to be read on three several
  10-61  days in each house be suspended, and this rule is hereby suspended,
  10-62  and that this Act take effect and be in force according to its
  10-63  terms, and it is so enacted.
  10-64                               * * * * *
  10-65                                                         Austin,
  10-66  Texas
  10-67                                                         March 5, 1993
  10-68  Hon. Bob Bullock
  10-69  President of the Senate
  10-70  Sir:
   11-1  We, your Committee on State Affairs to which was referred S.B. No.
   11-2  381, have had the same under consideration, and I am instructed to
   11-3  report it back to the Senate with the recommendation that it do not
   11-4  pass, but that the Committee Substitute adopted in lieu thereof do
   11-5  pass and be printed.
   11-6                                                         Harris of
   11-7  Dallas, Chairman
   11-8                               * * * * *
   11-9                               WITNESSES
  11-10                                                  FOR   AGAINST  ON
  11-11  ___________________________________________________________________
  11-12  Name:  Wardaleen Belvin                                        x
  11-13  Representing:  Lt Governor
  11-14  City:  Austin
  11-15  -------------------------------------------------------------------
  11-16                                                  FOR   AGAINST  ON
  11-17  ___________________________________________________________________
  11-18  Name:  Terri Salvaggio                                         x
  11-19  Representing:  Comptroller's Office
  11-20  City:  Austin
  11-21  -------------------------------------------------------------------
  11-22  Name:  Andrea Cowan                                            x
  11-23  Representing:  Comptroller of Public Accts
  11-24  City:  Austin
  11-25  -------------------------------------------------------------------
  11-26  Name:  Shannon Porterfield                                     x
  11-27  Representing:  Comptroller of Public Accts
  11-28  City:  Austin
  11-29  -------------------------------------------------------------------
  11-30  Name:  Cynthia Alexander                                       x
  11-31  Representing:  Comptroller of Public Accts
  11-32  City:  Austin
  11-33  -------------------------------------------------------------------
  11-34  Name:  Janet Reynolds                                          x
  11-35  Representing:  State Auditor's Office
  11-36  City:  Austin
  11-37  -------------------------------------------------------------------
  11-38  Name:  Randy Fritz                                             x
  11-39  Representing:  Computer Coalition
  11-40  City:  Smithville
  11-41  -------------------------------------------------------------------
  11-42  Name:  Robert Mayer                                            x
  11-43  Representing:  Tx Surplus Property Agency
  11-44  City:  Dallas
  11-45  -------------------------------------------------------------------
  11-46  Name:  Marvin Titzman                                          x
  11-47  Representing:  Tx Surplus Property Agency
  11-48  City:  San Antonio
  11-49  -------------------------------------------------------------------