1-1 By: Armbrister S.B. No. 494
1-2 (In the Senate - Filed February 25, 1993; March 1, 1993, read
1-3 first time and referred to Committee on State Affairs;
1-4 April 26, 1993, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 7, Nays 0; April 26, 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. 494 By: Harris of Dallas
1-23 A BILL TO BE ENTITLED
1-24 AN ACT
1-25 relating to the establishment of a state council on competitive
1-26 government.
1-27 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-28 SECTION 1. Article 13, State Purchasing and General Services
1-29 Act (Article 601b, Vernon's Texas Civil Statutes), is repealed.
1-30 SECTION 2. The State Purchasing and General Services Act
1-31 (Article 601b, Vernon's Texas Civil Statutes), is amended by adding
1-32 Article 15 to read as follows:
1-33 Art. 15. COUNCIL ON COMPETITIVE GOVERNMENT
1-34 Sec. 15.01. DEFINITIONS. In this article:
1-35 (1) "Commercial activity" means an activity that
1-36 provides a product or service that is commonly available from a
1-37 private source.
1-38 (2) "Commission" means the General Services
1-39 Commission.
1-40 (3) "Council" means the State Council on Competitive
1-41 Government.
1-42 (4) "Identified state service" means a service
1-43 provided by the state that the council has identified as a
1-44 commercially available service and brought under study by the
1-45 council to determine whether the service may better be provided
1-46 through competition with private commercial sources.
1-47 (5) "State agency" has the meaning established by
1-48 Section 1.02(2) of this Act.
1-49 Sec. 15.02. STATE COUNCIL ON COMPETITIVE GOVERNMENT. The
1-50 State Council on Competitive Government is established. It is the
1-51 policy of this state that all state services be performed in the
1-52 most effective and efficient manner in order to be the best value
1-53 to the citizens of the state, and the state recognizes competition
1-54 among service providers may improve the quality of service
1-55 provided. The state shall encourage competition, innovation, and
1-56 creativity among service providers.
1-57 Sec. 15.03. MEMBERSHIP. (a) The council shall consist of
1-58 the following persons or their designees:
1-59 (1) the governor;
1-60 (2) the lieutenant governor;
1-61 (3) the comptroller;
1-62 (4) the speaker of the house of representatives; and
1-63 (5) the commission's presiding officer, as appointed
1-64 under Section 2.04(a) of this Act.
1-65 (b) The governor is chairman of the council.
1-66 (c) If the speaker of the house of representatives is not
1-67 permitted by the Texas Constitution to serve as a voting member of
1-68 the council, the speaker of the house of representatives serves as
2-1 a nonvoting member.
2-2 Sec. 15.04. MEETINGS. The council shall meet as often as
2-3 necessary to perform its duties.
2-4 Sec. 15.05. DUTIES. The council shall identify commercially
2-5 available services currently being performed by state agencies and,
2-6 if the council determines that these services may better be
2-7 provided through competition with private commercial sources or
2-8 other state agency service providers, require a state agency to
2-9 engage in any process, including competitive bidding, developed by
2-10 the council to provide the service in competition with private
2-11 commercial sources or other state agency service providers.
2-12 Sec. 15.06. POWERS. In performing its duties under this
2-13 article, the council may:
2-14 (1) adopt rules governing any aspect of the council's
2-15 duties or responsibilities;
2-16 (2) hold public hearings or conduct studies;
2-17 (3) consult with private commercial sources;
2-18 (4) require a state agency to conduct an agency
2-19 in-house cost estimate, a management study, or any other hearing,
2-20 study, review, or cost estimate concerning any aspect of an
2-21 identified state service;
2-22 (5) develop and require for use by state agencies
2-23 methods to accurately and fairly estimate and account for the cost
2-24 of providing an identified state service;
2-25 (6) require that an identified state service be
2-26 submitted to competitive bidding or other process determined to
2-27 create competition with private commercial sources;
2-28 (7) determine, in consultation with affected state
2-29 agencies, the specifications and conditions of purchase procedures
2-30 that must be followed by the commission and a state agency or a
2-31 private commercial source engaged in competitive bidding to provide
2-32 an identified state service;
2-33 (8) award a contract to a state agency currently
2-34 providing the service, a state agency other than an agency
2-35 currently providing the service, a private commercial source, or
2-36 any combination thereof if the bidder presents the best and most
2-37 reasonable bid, not necessarily the lowest bid; and
2-38 (9) determine the terms and conditions of a contract
2-39 for service or interagency contract to provide an identified state
2-40 service or other commercially available service.
2-41 Sec. 15.07. DUTIES OF AFFECTED STATE AGENCIES. A state
2-42 agency shall perform any activities required by the council in the
2-43 performance of its duties or the exercise of its powers under this
2-44 article.
2-45 Sec. 15.08. EXEMPTION. Decisions regarding whether a state
2-46 agency shall engage in competitive bidding and concerning the award
2-47 of contracts made by the council are exempt from all state laws
2-48 regulating or limiting state purchasing and purchasing decisions.
2-49 SECTION 3. (a) In addition to the duties prescribed in
2-50 Article 15, State Purchasing and General Services Act (Article
2-51 601b, Vernon's Texas Civil Statutes), as added by this Act, the
2-52 State Council on Competitive Government shall conduct a study by
2-53 December 1, 1993, or as soon as practicable thereafter evaluating
2-54 services being performed by or for state agencies. Services
2-55 involving information technology, information facilities
2-56 management, colocation of field offices, mail, print services,
2-57 travel management, telecommunications, and fleet management shall
2-58 be evaluated to identify at least $3 million in cost savings and
2-59 enhanced revenue resulting from competition with private commercial
2-60 sources or other state agency providers. Services to be evaluated
2-61 shall also include the state's procurement practices to the extent
2-62 the practices have been evaluated in any report on procurement
2-63 practices in Texas state government.
2-64 (b) The State Council on Competitive Government shall
2-65 certify the estimate of potential savings or enhanced revenue
2-66 amounts and forward the information to the Legislative Budget
2-67 Board. After evaluating the information, the Legislative Budget
2-68 Board shall identify general revenue fund appropriations of at
2-69 least $3 million to be reduced as a result of cost savings or
2-70 enhanced revenue measures and shall forward such information to the
3-1 comptroller. The Legislative Budget Board may request the council
3-2 to identify additional cost savings or enhanced revenue measures to
3-3 accomplish the $3 million reduction.
3-4 (c) The comptroller shall reduce appropriations to the
3-5 various agencies by the amounts approved by the Legislative Budget
3-6 Board and transfer all such amounts to the general revenue fund.
3-7 Cost savings and enhanced revenues realized as a result of the
3-8 study performed may be considered a part of the savings, spending
3-9 reductions, or revenue enhancement plans required of all agencies
3-10 by the General Appropriations Act for the fiscal biennium beginning
3-11 September 1, 1993.
3-12 (d) This section expires September 1, 1995.
3-13 SECTION 4. The importance of this legislation and the
3-14 crowded condition of the calendars in both houses create an
3-15 emergency and an imperative public necessity that the
3-16 constitutional rule requiring bills to be read on three several
3-17 days in each house be suspended, and this rule is hereby suspended.
3-18 * * * * *
3-19 Austin,
3-20 Texas
3-21 April 26, 1993
3-22 Hon. Bob Bullock
3-23 President of the Senate
3-24 Sir:
3-25 We, your Committee on State Affairs to which was referred S.B. No.
3-26 494, have had the same under consideration, and I am instructed to
3-27 report it back to the Senate with the recommendation that it do not
3-28 pass, but that the Committee Substitute adopted in lieu thereof do
3-29 pass and be printed.
3-30 Rosson,
3-31 Vice-Chairman
3-32 * * * * *
3-33 WITNESSES
3-34 FOR AGAINST ON
3-35 ___________________________________________________________________
3-36 Name: John Pouland x
3-37 Representing: General Services
3-38 City: Austin
3-39 -------------------------------------------------------------------
3-40 Name: Doug Brown x
3-41 Representing: State Auditors Office
3-42 City: Austin
3-43 -------------------------------------------------------------------
3-44 Name: Alan Pollack x
3-45 Representing: Comptroller of Public Accts
3-46 City: Austin
3-47 -------------------------------------------------------------------
3-48 Name: Steve Carter x
3-49 Representing: Renaissance Systems Inc
3-50 City: Austin
3-51 -------------------------------------------------------------------
3-52 Name: Robert Briones x
3-53 Representing: QIV Systems Inc.
3-54 City: San Antonio
3-55 -------------------------------------------------------------------
3-56 Name: Edward Adams x
3-57 Representing: IBM Corporation
3-58 City: Austin
3-59 -------------------------------------------------------------------
3-60 Name: Saho Blocker x
3-61 Representing: EDS
3-62 City: Dallas
3-63 -------------------------------------------------------------------