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   1-29  Act (Article 601b, Vernon's Texas Civil Statutes), is repealed.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
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   3-40  Name:  Doug Brown                                              x
   3-41  Representing:  State Auditors Office
   3-42  City:  Austin
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   3-44  Name:  Alan Pollack                                            x
   3-45  Representing:  Comptroller of Public Accts
   3-46  City:  Austin
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   3-48  Name:  Steve Carter                              x
   3-49  Representing:  Renaissance Systems Inc
   3-50  City:  Austin
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   3-52  Name:  Robert Briones                            x
   3-53  Representing:  QIV Systems Inc.
   3-54  City:  San Antonio
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   3-56  Name:  Edward Adams                              x
   3-57  Representing:  IBM Corporation
   3-58  City:  Austin
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   3-60  Name:  Saho Blocker                              x
   3-61  Representing:  EDS
   3-62  City:  Dallas
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