By: Armbrister S.B. No. 494 A BILL TO BE ENTITLED AN ACT 1-1 relating to the establishment of a state council on competitive 1-2 government. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Article 13, State Purchasing and General Services 1-5 Act (Art. 601b, Vernon's Texas Civil Statutes), is repealed. 1-6 SECTION 2. The State Purchasing and General Services Act 1-7 (Art. 601b, Vernon's Texas Civil Statutes), is amended by adding 1-8 Article 15 to read as follows: 1-9 Article 15. Council on Competitive Government. 1-10 Section 15.01 Definitions. In this article: 1-11 (1) "Commercial activity" means an activity that provides a 1-12 product or service that is commonly available from a private 1-13 source. 1-14 (2) "Commission" has the meaning established by Section 1-15 1.02(1) of this Act. 1-16 (3) "Council" means the State Council on Competitive 1-17 Government. 1-18 (4) "Identified state service" means a service provided by 1-19 the state that the council has identified as a commercially 1-20 available service and brought under study by the council to 1-21 determine whether the service may better be provided through 1-22 competition with private commercial sources. 1-23 (5) "State agency" has the meaning established by Section 2-1 1.02(2) of this Act. 2-2 Section 15.02. State Council on Competitive Government. The 2-3 State Council on Competitive Government is established. It is the 2-4 policy of this state that all state services be performed in the 2-5 most effective and efficient manner in order to be the best value 2-6 to the citizens of the State and the State recognizes competition 2-7 among service providers may improve the quality of service 2-8 provided. The State shall encourage competition, innovation and 2-9 creativity among service providers. 2-10 Section 15.03. Membership. The council shall consist of the 2-11 following persons or their designees: 2-12 (1) the Governor; 2-13 (2) the Lieutenant Governor; 2-14 (3) the Comptroller of Public Accounts; 2-15 (4) the Speaker of the House of Representatives, in an 2-16 ex officio capacity; and 2-17 (5) the commission's presiding officer, as appointed 2-18 under Section 2.04 (a) of this Act. 2-19 Section 15.04. Meetings. The council shall meet as often as 2-20 necessary to perform its duties. 2-21 Section 15.05. Duties. The council shall identify 2-22 commercially available services currently being performed by state 2-23 agencies, and, if the council determines that these services may 2-24 better be provided through competition with private commercial 2-25 sources or other state agency service providers, require a state 3-1 agency to engage in any process, including competitive bidding, 3-2 developed by the council to provide the service in competition with 3-3 private commercial sources or other state agency service providers. 3-4 Section 15.06. Powers. In performing its duties under this 3-5 article, the council may: 3-6 (1) adopt rules governing any aspect of the council's 3-7 duties or responsibilities; 3-8 (2) hold public hearings or conduct studies; 3-9 (3) consult with private commercial sources; 3-10 (4) require a state agency to conduct an agency 3-11 in-house cost estimate, a management study, or any other hearing, 3-12 study, review, or cost estimate concerning any aspect of an 3-13 identified state service; 3-14 (5) develop and require for use by state agencies 3-15 methods to accurately and fairly estimate and account for the cost 3-16 of providing an identified state service; 3-17 (6) require that an identified state service be 3-18 submitted to competitive bidding or other process determined to 3-19 create competition with private commercial sources; 3-20 (7) determine, in consultation with affected state 3-21 agencies, the specifications and conditions of purchase procedures 3-22 that must be followed by the commission and a state agency or a 3-23 private commercial source engaged in competitive bidding to provide 3-24 an identified state service; 3-25 (8) award a contract to a state agency currently 4-1 providing the service, a state agency other than an agency 4-2 currently providing the service, a private commercial source or any 4-3 combination thereof if the bidder presents the best and most 4-4 reasonable bid, not necessarily the lowest bid; and 4-5 (9) determine the terms and conditions of a contract 4-6 for service or interagency contract to provide an identified state 4-7 service or other commercially available service. 4-8 Section 15.07. Duties of Affected State Agencies. A state 4-9 agency shall perform any activities required by the council in the 4-10 performance of its duties or exercise of its powers under this 4-11 Article. 4-12 Section 15.08. Exemption. Decisions regarding whether an 4-13 agency shall engage in competitive bidding and concerning the award 4-14 of contracts made by the council are exempt from all state laws 4-15 regulating or limiting state purchasing and purchasing decisions. 4-16 SECTION 3. The importance of this legislation and the 4-17 crowded condition of the calendars in both houses create an 4-18 emergency and an imperative public necessity that the 4-19 constitutional rule requiring bills to be read on three several 4-20 days in each house be suspended, and this rule is hereby suspended.