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    1-5  Act (Art. 601b, Vernon's Texas Civil Statutes), is repealed.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.