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 Article 13, State Purchasing and General Services 1-29 Act (Article 601b, Vernon's Texas Civil Statutes), is repealed. 1-30 SECTION 2.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 -------------------------------------------------------------------