By Romo                                               H.B. No. 2769
       74R3935 JRD-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the purchase of goods and services by the state and to
    1-3  purchasing services provided by the state to local governments.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 1.02(5), State Purchasing and General
    1-6  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
    1-7  amended to read as follows:
    1-8              (5)  "Best value" for purposes of Section 3.081 of this
    1-9  Act means lowest overall cost of information systems based on the
   1-10  following factors, including, but not limited to:
   1-11                    (A)  purchase price;
   1-12                    (B)  compatibility to facilitate exchange of
   1-13  existing data;
   1-14                    (C)  capacity for expansion and upgrading to more
   1-15  advanced levels of technology;
   1-16                    (D)  quantitative reliability factors;
   1-17                    (E)  the level of training required to bring
   1-18  end-users to a stated level of proficiency;
   1-19                    (F)  the technical support requirements for
   1-20  maintenance of data across a network platform and management of the
   1-21  network's hardware and software; and
   1-22                    (G)  compliance with applicable statewide
   1-23  standards adopted by the Department of Information Resources or a
   1-24  subsequent entity as validated by criteria established by the
    2-1  department or a subsequent entity in administrative rule.
    2-2        SECTION 2.  Article 3, State Purchasing and General Services
    2-3  Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
    2-4  adding Section 3.011 to read as follows:
    2-5        Sec. 3.011.  PROVIDING CERTAIN PURCHASING SERVICES ON
    2-6  FEE-FOR-SERVICE BASIS.  (a)  The commission may provide open market
    2-7  purchasing services on a fee-for-service basis for state agency
    2-8  purchases that are delegated to an agency under Section 3.06 or
    2-9  3.08 of this Act. The commission shall set the fees in an amount
   2-10  that recovers the commission's costs in providing the services.
   2-11        (b)  The commission shall publish a schedule of its fees for
   2-12  services that are subject to this section. The schedule must
   2-13  include the commission's fees for:
   2-14              (1)  reviewing bid and contract documents for clarity,
   2-15  completeness, and compliance with laws and rules;
   2-16              (2)  developing and transmitting invitations to bid;
   2-17              (3)  receiving and tabulating bids;
   2-18              (4)  determining which bidder offers the best value to
   2-19  the state and awarding the contract to that bidder; and
   2-20              (5)  creating and transmitting purchase orders.
   2-21        SECTION 3.  Article 3, State Purchasing and General Services
   2-22  Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
   2-23  adding Section 3.015 to read as follows:
   2-24        Sec. 3.015.  CENTRAL ELECTRONIC PROCUREMENT DATABASE.  (a)
   2-25  The commission shall establish and manage a central electronic
   2-26  procurement database. The commission may enter into contracts with
   2-27  private or public entities to establish or maintain all or part of
    3-1  the database.
    3-2        (b)  The commission may maintain in the database information
    3-3  related to state procurement that the commission considers to be
    3-4  useful.  The database must contain:
    3-5              (1)  information about vendors, including information
    3-6  from the centralized master bidders list and vendor performance
    3-7  information;
    3-8              (2)  information about products, including product
    3-9  testing results; and
   3-10              (3)  information that relates to commission and other
   3-11  state agency purchasing contracts and that can be entered into the
   3-12  database electronically without the need for duplicate data entry.
   3-13        (c)  The commission may require information from a state
   3-14  agency for inclusion in the database.
   3-15        (d)  The commission shall make the database available to
   3-16  state agencies and political subdivisions through the procurement
   3-17  marketplace.
   3-18        SECTION 4.  Section 3.022, State Purchasing and General
   3-19  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   3-20  amended to read as follows:
   3-21        Sec. 3.022.  COMPETITIVE SEALED PROPOSALS.  (a)  The
   3-22  commission may acquire supplies, materials, services, or equipment
   3-23  <telecommunications devices, systems, or services or any automated
   3-24  information systems, the computers on which they are automated, or
   3-25  a service related to the automation of information systems or the
   3-26  computers on which they are automated, including computer
   3-27  software,> by following a procedure using competitive sealed
    4-1  proposals <if the commission determines by rule that competitive
    4-2  sealed bidding or informal competitive bidding is not practical or
    4-3  is disadvantageous to the state.  Items to be purchased from higher
    4-4  education research funds may be acquired by following a procedure
    4-5  using competitive sealed proposals>.  The commission, or a state
    4-6  agency or <an> institution of higher education if the agency or
    4-7  institution is making the acquisition <if research purchasing
    4-8  authority has been delegated to that institution> under Section
    4-9  3.06 or 3.08 of this article, must first determine that competitive
   4-10  sealed bidding or informal competitive bidding is not practical or
   4-11  is disadvantageous to the state.  If the competitive sealed
   4-12  proposal procedure is to be handled by the state agency or
   4-13  institution of higher education, the agency or institution shall
   4-14  follow the procedures outlined by this section for the commission.
   4-15        (b)  The commission shall consult with appropriate personnel
   4-16  of a requisitioning agency to develop specifications for a request
   4-17  for competitive sealed proposals under this section.
   4-18        (c)  The commission shall solicit proposals by a request for
   4-19  proposals.  The commission shall give public notice of a request
   4-20  for proposals in the manner provided for requests for bids under
   4-21  Section 3.12 of this article.
   4-22        (d) <(c)>  The commission shall open each proposal in a
   4-23  manner that does not disclose the contents of the proposal during
   4-24  the process of negotiating with competing offerors.  The commission
   4-25  shall file each proposal in a register of proposals, which shall be
   4-26  open for public inspection after a contract is awarded unless the
   4-27  register contains information that is excepted from disclosure <as
    5-1  an open record> under Subchapter C, Chapter 552, Government Code
    5-2  <Section 3, Chapter 424, Acts of the 63rd Legislature, Regular
    5-3  Session, 1973 (Article 6252-17a, Vernon's Texas Civil Statutes)>.
    5-4        (e) <(d)>  As provided in a request for proposals and under
    5-5  the rules adopted by the commission, the commission may discuss
    5-6  acceptable or potentially acceptable proposals with offerors in
    5-7  order to assess an offeror's ability to meet the solicitation
    5-8  requirements.  After the submission of a proposal but before making
    5-9  an award, the commission may permit the offeror to revise the
   5-10  proposal in order to obtain the best final offer.  The commission
   5-11  may not disclose any information derived from proposals submitted
   5-12  from competing offerors in conducting discussions under this
   5-13  subsection.  The commission shall provide each offeror with an
   5-14  equal opportunity for discussion and revision of proposals.
   5-15        (f) <(e)>  The commission shall invite a requisitioning
   5-16  agency to participate in discussions conducted under Subsection (e)
   5-17  <(d)> of this section.
   5-18        (g) <(f)>  The commission shall make a written award of a
   5-19  purchase or lease to the offeror whose proposal offers <is> the
   5-20  best value <most advantageous> to the state, considering price,
   5-21  past vendor performance, vendor reputation, and the evaluation
   5-22  factors in the request for proposals, except that if the commission
   5-23  finds that none of the offers is acceptable, it shall refuse all
   5-24  offers.  In determining which proposal offers the best value <is
   5-25  most advantageous> to the state, the commission shall, when
   5-26  applicable and subject to Sections 3.103 and 3.104 of this Act,
   5-27  consider factors such as installation costs, the overall life of
    6-1  the supplies, materials, <system> or equipment, the cost of
    6-2  acquisition, operation, and maintenance <of hardware included
    6-3  with,> associated with<, or required for> the supplies, materials,
    6-4  <system> or equipment during the state's ownership or lease, the
    6-5  cost of acquisition, operation, and maintenance of software
    6-6  included with, associated with, or required for a proposed
    6-7  automated information or telecommunications <the> system or item of
    6-8  equipment during the state's ownership or lease, the estimated cost
    6-9  of other supplies needed because of the acquisition, the estimated
   6-10  costs of employee training needed because of the acquisition, the
   6-11  estimated cost of additional long-term staff needed because of the
   6-12  acquisition, and any <the> estimated increase in employee
   6-13  productivity because of the acquisition.  The contract file must
   6-14  state in writing the basis on which the award is made.
   6-15        (h) <(g)>  The commission shall adopt rules necessary or
   6-16  convenient to perform its responsibilities under this section and
   6-17  shall request assistance from other state agencies as needed.
   6-18        <(h)  A medical or dental unit as that term is defined in
   6-19  Section 61.003, Education Code, may purchase the following types of
   6-20  medical equipment by the use of competitive sealed proposals if it
   6-21  follows commission rules and procedures provided by this section
   6-22  regarding the use of competitive sealed proposals and submits to
   6-23  the commission a written finding that competitive sealed bidding or
   6-24  informal competitive bidding is not practical or is disadvantageous
   6-25  to the state for the proposed acquisition:>
   6-26              <(1)  prototypical medical equipment not yet available
   6-27  on the market;>
    7-1              <(2)  medical equipment so new to the market that its
    7-2  benefits are not fully known; or>
    7-3              <(3)  major medical equipment that is so technically
    7-4  complex that development of specifications for competitive bidding
    7-5  is not feasible.>
    7-6        SECTION 5.  Section 3.061(b), State Purchasing and General
    7-7  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
    7-8  amended to read as follows:
    7-9        (b)  The commission shall promulgate rules allowing purchases
   7-10  through group purchasing programs unless the commission determines
   7-11  within a reasonable period of time after receiving notification of
   7-12  a particular purchase that a better value <lower price> is
   7-13  available through the commission.
   7-14        SECTION 6.  Article 3, State Purchasing and General Services
   7-15  Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
   7-16  adding Sections 3.062-3.064 to read as follows:
   7-17        Sec. 3.062.  TRAINING AND CERTIFICATION OF STATE AGENCY
   7-18  PURCHASING PERSONNEL.  (a)  The commission shall establish and
   7-19  administer a system of training, continuing education, and
   7-20  certification for state agency purchasing personnel. The commission
   7-21  may adopt rules to administer this section, including rules
   7-22  relating to monitoring certified purchaser's compliance with the
   7-23  continuing education requirements of this section.
   7-24        (b)  All state agency purchasing personnel must receive the
   7-25  training and continuing education to the extent required by rule of
   7-26  the  commission.  A state agency employee who is required by rule
   7-27  of the commission to receive the training or continuing education
    8-1  may not participate in purchases by the employing agency unless the
    8-2  employee has received the required  training.
    8-3        (c)  The commission shall set and collect a fee from state
    8-4  agencies that employ purchasing personnel who are trained,
    8-5  educated, or certified under this section. The commission shall set
    8-6  the fee in an amount that recovers the commission's costs under
    8-7  this section.
    8-8        (d)  The commission may provide training, continuing
    8-9  education, and certification under this section to purchasing
   8-10  personnel employed by a political subdivision or other public
   8-11  entity of the state. Political subdivision purchasing personnel may
   8-12  receive, but are not required  to receive, the training, continuing
   8-13  education, or certification provided under this section. The
   8-14  commission shall collect the fees described by Subsection (c) for
   8-15  training, education, or certification under this subsection.
   8-16        (e)  The commission may provide training and continuing
   8-17  education under this section using its own personnel and through
   8-18  contracts with private entities. The commission may also, by
   8-19  agreement with a public entity, use the services of persons
   8-20  employed by the public entity to provide training and continuing
   8-21  education under this section.
   8-22        (f)  The commission shall provide at least three levels of
   8-23  training under this section.
   8-24        (g)  The basic training level must include an introduction to
   8-25  contract purchasing methods and processes and informal bidding
   8-26  processes, practical instruction in the use of automated
   8-27  information tools used in the purchasing process, instruction in
    9-1  receipting and payment processes and requirements, an introduction
    9-2  to historically underutilized business programs and issues,
    9-3  instruction in documenting a purchasing file, an introduction to
    9-4  relevant ethical issues including an introduction to relevant
    9-5  provisions of Chapter 572, Government Code, and Chapters 36 and 39,
    9-6  Penal Code, and instruction in any other processes and issues that
    9-7  the commission considers appropriate for introductory purchasing
    9-8  training.
    9-9        (h)  The second training level must include advanced
   9-10  instruction in formal and informal bidding methods, an introduction
   9-11  to negotiation methods and to when negotiation is allowed,
   9-12  instruction in writing specifications, instruction in the criteria
   9-13  for determining which product or service offers the best value for
   9-14  the state, more advanced instruction in documenting a purchasing
   9-15  file, instruction in the use of electronic bulletin boards in
   9-16  public purchasing, an introduction to evaluating vendors and to
   9-17  looking at the public purchasing process from the vendor's
   9-18  perspective, more advanced instruction in historically
   9-19  underutilized business programs and issues, a review and more
   9-20  advanced instruction in relevant ethical issues, and instruction in
   9-21  any other processes and issues that the commission considers
   9-22  appropriate for the second level of purchasing training.
   9-23        (i)  The third training level must include instruction in
   9-24  complex negotiations, instruction in purchasing through the use of
   9-25  requests for proposals, and instruction in any other processes and
   9-26  issues that the commission considers appropriate for advanced
   9-27  purchasing training.
   10-1        (j)  The commission shall provide at least two levels of
   10-2  certification under this section. The commission may prescribe the
   10-3  circumstances under which a state agency may delegate to a
   10-4  certified purchaser signature purchasing authority to approve
   10-5  purchase orders.
   10-6        (k)  The commission shall require 24 hours of continuing
   10-7  education each year to maintain a certification level. The
   10-8  commission may allow attendance at training classes offered under
   10-9  this section to count toward the continuing education requirement.
  10-10        (l)  The commission's prerequisites for receiving a level one
  10-11  purchaser certification must include completion of the second
  10-12  training level, passage of a written examination, and a minimum
  10-13  number of years of purchasing experience prescribed by the
  10-14  commission. Level one certified purchasers must be able to:
  10-15              (1)  manage formal and informal bidding procedures;
  10-16              (2)  prepare complex specifications that include the
  10-17  criteria the agency will use to determine the best value for the
  10-18  state;
  10-19              (3)  negotiate, when negotiation is allowed, price,
  10-20  delivery terms, and service or maintenance requirements for all
  10-21  types of products, including automated information systems
  10-22  purchased through the catalogue purchasing procedure; and
  10-23              (4)  establish term contracts.
  10-24        (m)  The commission's prerequisites for receiving a level two
  10-25  purchaser certification must include completion of the third
  10-26  training level, passage of a written and an oral examination, and a
  10-27  minimum of three years of purchasing experience.
   11-1        Sec. 3.063.  PURCHASING PARTNERSHIPS BETWEEN AGENCIES.  (a)
   11-2  The commission shall manage a program that provides for
   11-3  establishing purchasing partnerships between state agencies under
   11-4  which one agency will make certain purchases for another agency.
   11-5  Purchases made by one agency for another under a purchasing
   11-6  partnership may include only delegated purchases and other
   11-7  purchases that the commission is not required to or does not have
   11-8  the authority to make for the agency. An agency is not required to
   11-9  enter into a purchasing partnership under this section.
  11-10        (b)  The commission shall identify agencies that are willing
  11-11  to enter into purchasing partnerships with another agency and
  11-12  attempt to appropriately match agencies for a purchasing
  11-13  partnership based on factors such as whether an agency employs a
  11-14  certified purchaser, the number and expertise of an agency's
  11-15  certified purchasers, the strategic mission of an agency, the
  11-16  existence or nature of an agency's automated purchasing tools, and
  11-17  the types of goods and services typically purchased by an agency.
  11-18        Sec. 3.064.  BUYING UNDER CONTRACT ESTABLISHED BY AGENCY
  11-19  OTHER THAN COMMISSION.  (a)  The commission shall adopt rules
  11-20  specifying the circumstances under which it is advantageous for the
  11-21  state to allow a state agency to purchase goods or services under a
  11-22  contract made by another state agency other than the commission.
  11-23        (b)  A state agency that is a party to a contract with a
  11-24  vendor who is able to supply goods or services to other agencies
  11-25  under the contract shall, if commission rules allow other agencies
  11-26  to make purchases under the contract:
  11-27              (1)  inform the commission of the terms of the contract
   12-1  and the capabilities of the vendor; and
   12-2              (2)  post notice of the existence and terms of the
   12-3  contract on the procurement marketplace.
   12-4        SECTION 7.  Section 3.08, State Purchasing and General
   12-5  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   12-6  amended to read as follows:
   12-7        Sec. 3.08.  PURCHASES LESS THAN A SPECIFIED MONETARY AMOUNT.
   12-8  (a)  State agencies are delegated the authority to purchase
   12-9  supplies, materials, and equipment if the purchase does not exceed
  12-10  $25,000 <$5,000, although an agency may continue to use the
  12-11  commission's services for those purchases>.  The commission by rule
  12-12  shall prescribe procedures for these purchases.
  12-13        (b)  The commission<, and> by rule may delegate to state
  12-14  agencies the authority to purchase supplies, materials, or
  12-15  equipment if the purchase exceeds $25,000 <$5,000>. In delegating
  12-16  purchasing authority under this subsection or Section 3.06(b) of
  12-17  this Act, the commission shall consider factors relevant to a state
  12-18  agency's ability to perform purchasing functions, including:
  12-19              (1)  the capabilities of the agency's purchasing staff
  12-20  and the existence of automated purchasing tools at the agency;
  12-21              (2)  the certification levels held by the agency's
  12-22  purchasing personnel;
  12-23              (3)  the existence of recent satisfactory audits of the
  12-24  agency's purchasing practices;
  12-25              (4)  the agency's compliance with the state's
  12-26  purchasing programs for historically underutilized businesses and
  12-27  the agency's good faith efforts to meet the state's purchasing
   13-1  goals for historically underutilized businesses; and
   13-2              (5)  whether the agency has adopted and published
   13-3  satisfactory protest procedures as part of its purchasing
   13-4  practices.
   13-5        (c)  The commission shall monitor the purchasing practices of
   13-6  state agencies that are making delegated purchases under Subsection
   13-7  (b) of this section or Section 3.06(b) of this Act to ensure that
   13-8  the certification levels of the agency's purchasing personnel and
   13-9  the quality of the agency's purchasing practices continue to
  13-10  warrant the extent to which the commission has delegated purchasing
  13-11  authority to the agency. The commission may revoke for cause all or
  13-12  part of the purchasing authority that the commission delegated to a
  13-13  state agency. The commission shall adopt rules to administer this
  13-14  subsection.
  13-15        (d) <(b)>  The commission by rule may delegate to the
  13-16  comptroller the commission's authority under Section 3.15 to audit
  13-17  purchases and purchase data when the purchases do not exceed $500
  13-18  or a greater amount prescribed by the commission.
  13-19        (e) <(c)>  Competitive bidding, whether formal or informal,
  13-20  is not required for a purchase by a state agency if the purchase
  13-21  does not exceed $2,500 <$1,000>, or a greater amount prescribed by
  13-22  rule of the commission.
  13-23        (f) <(d)>  Supplies or materials purchased under this section
  13-24  may not include:
  13-25              (1)  items for which contracts have been awarded under
  13-26  the contract purchase procedure, unless the quantity purchased is
  13-27  less than the minimum quantity specified in the contract;
   14-1              (2)  any item required by statute to be purchased from
   14-2  a particular source; or
   14-3              (3)  scheduled items that have been designated for
   14-4  purchase by the commission.
   14-5        (g) <(e)>  Large purchases may not be divided into small lot
   14-6  purchases in order to meet the specified dollar limits.  The
   14-7  commission may not require that unrelated purchases be combined
   14-8  into one purchase order in order to exceed the specified dollar
   14-9  limits.
  14-10        (h) <(f)>  Agencies making purchases under this section for
  14-11  which competitive bidding is required must attempt to obtain at
  14-12  least three competitive bids from sources which normally offer for
  14-13  sale the merchandise being purchased and must comply with Section
  14-14  3.101 of this article.
  14-15        SECTION 8.  Section 3.101, State Purchasing and General
  14-16  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  14-17  amended by adding Subsections (k) and (l) to read as follows:
  14-18        (k)  The commission shall require information about an
  14-19  applicant's past history as a vendor with the state in the uniform
  14-20  registration form, including information about the persons who own
  14-21  or control the applicant and information about any vendor history
  14-22  the applicant or the persons who own or control the applicant may
  14-23  have from doing business with the state under other names.
  14-24        (l)  The commission shall include in the uniform registration
  14-25  form a statement about the applicability of relevant criminal law,
  14-26  including Section 37.10, Penal Code, to entering information on the
  14-27  form and to presenting documentation in connection with the form.
   15-1  The commission shall refer any suspected violations of relevant
   15-2  criminal law, including Section 37.10, Penal Code, related to
   15-3  entering information on the form or presenting documentation in
   15-4  connection with the form to the appropriate legal authorities for
   15-5  investigation or prosecution.
   15-6        SECTION 9.  Article 3, State Purchasing and General Services
   15-7  Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
   15-8  adding Sections 3.103-3.106 to read as follows:
   15-9        Sec. 3.103.  BEST VALUE STANDARD FOR PURCHASE OF GOODS OR
  15-10  SERVICES.  (a)  Each state agency including the commission shall
  15-11  purchase goods and services that provide the best value for the
  15-12  state.
  15-13        (b)  In determining the best value for the state, the
  15-14  commission or other state agency making a purchase is not
  15-15  restricted to considering the purchase price alone, but subject to
  15-16  Section 3.104 of this Act may also consider any other factor
  15-17  relevant to evaluating the value to the state of a good or service
  15-18  including:
  15-19              (1)  installation costs;
  15-20              (2)  life-cycle costs;
  15-21              (3)  the quality and reliability of the good or
  15-22  service;
  15-23              (4)  the delivery terms;
  15-24              (5)  indicators of probable vendor performance under
  15-25  the contract such as past vendor performance, the vendor's
  15-26  financial resources and ability to perform, the vendor's
  15-27  experience, responsibility, and reputation, and the vendor's
   16-1  ability to provide reliable maintenance and support;
   16-2              (6)  the cost of any employee training associated with
   16-3  a purchase;
   16-4              (7)  the effect of a purchase on agency productivity;
   16-5  and
   16-6              (8)  factors relevant to determining the best value for
   16-7  the state in the context of a particular purchase.
   16-8        Sec. 3.104.  REQUIREMENT TO SPECIFY VALUE FACTORS IN REQUEST
   16-9  FOR BIDS OR PROPOSALS.  (a)  For a purchase made through
  16-10  competitive bidding, the commission or other state agency making
  16-11  the purchase must specify in the request for bids the factors other
  16-12  than price,  past vendor performance, or vendor reputation that the
  16-13  commission or agency will consider in determining which bid offers
  16-14  the best value for the state.
  16-15        (b)  For a purchase made through competitive sealed
  16-16  proposals, the commission or other state agency making the
  16-17  purchase:
  16-18              (1)  must specify in the request for proposals the
  16-19  known  factors other than price, past vendor performance, or vendor
  16-20  reputation that the commission or agency will consider in
  16-21  determining which proposal offers the best value for the state; and
  16-22              (2)  may concurrently inform each vendor that made a
  16-23  proposal on the contract of any additional factors the commission
  16-24  or agency will consider in determining which proposal offers the
  16-25  best value for the state if the commission or other agency
  16-26  determines after opening the proposals that additional factors not
  16-27  covered under Subdivision (1) of this subsection are relevant in
   17-1  determining which proposal offers the best value for the state.
   17-2        Sec. 3.105.  PROTEST PROCEDURES.  (a)  The commission shall
   17-3  develop and adopt by rule protest procedures for resolving vendor
   17-4  protests relating to purchases made by the commission. The rules
   17-5  must include standards for maintaining necessary documentation for
   17-6  a purchase so that purchasing decisions can be supported in the
   17-7  event of a protest.
   17-8        (b)  Each state agency by rule shall adopt protest procedures
   17-9  for resolving vendor protests relating to purchases made by the
  17-10  agency. The procedures must be consistent with the commission's
  17-11  protest procedures.  Agencies that are not subject to the
  17-12  administrative procedure law, Chapter 2001, Government Code, shall
  17-13  provide public notice of the text of the proposed and adopted rules
  17-14  and provide a procedure for meaningful public comment on the
  17-15  proposed rules.
  17-16        Sec. 3.106.  BARRING VENDOR FROM PARTICIPATION IN STATE
  17-17  CONTRACTS.  (a)  The commission may bar a vendor from participating
  17-18  in state contracts that are subject to this Act, including
  17-19  contracts for which purchasing authority is delegated to a state
  17-20  agency under this Act, for:
  17-21              (1)  substandard performance under a contract with the
  17-22  state or a state agency that is significantly detrimental to the
  17-23  interests of the state;
  17-24              (2)  material misrepresentations in a bid or proposal
  17-25  for  the state or a state agency or during the course of performing
  17-26  a contract with the state or a state agency;
  17-27              (3)  fraud; or
   18-1              (4)  breaching a contract with the state or a state
   18-2  agency in a manner that is significantly detrimental to the
   18-3  interests of the state.
   18-4        (b)  The commission shall bar a vendor from participating in
   18-5  state and state agency contracts under this section for a period
   18-6  that is commensurate with the seriousness of the vendor's action
   18-7  and the extent to which the state's interests were damaged.
   18-8        (c)  The commission shall adopt rules to administer this
   18-9  section, including rules that:
  18-10              (1)  state generally the reasons for which a vendor may
  18-11  be barred from participating in state and state agency contracts
  18-12  under this section and the periods for which the vendor may be
  18-13  barred; and
  18-14              (2)  prescribe the procedures under which the
  18-15  commission will determine whether and for how long a vendor is
  18-16  barred from participating in state and state agency contracts under
  18-17  this section.
  18-18        SECTION 10.  Sections 3.11(a), (b), (d), (e), (f), (g), and
  18-19  (h), State Purchasing and General Services Act (Article 601b,
  18-20  Vernon's Texas Civil Statutes), are amended to read as follows:
  18-21        (a)  Notice.  In addition to any electronic dissemination of
  18-22  invitations to bid required or allowed under law, notice <Notice>
  18-23  inviting bids shall be published at least once in at least one
  18-24  newspaper of general circulation in the state and at least seven
  18-25  days preceding the last day set for the receipt of bids.  The
  18-26  newspaper notice shall include a general description of the
  18-27  articles to be purchased, and shall state where bid blanks and
   19-1  specifications may be secured, and the time and place for opening
   19-2  bids.
   19-3        (b)  Bidders List.  The commission shall maintain a bidders
   19-4  list and shall add or delete names from the list by the application
   19-5  and utilization of applicable standards set forth in Subsection (e)
   19-6  of this section.  Bid invitations shall be sent only to those who
   19-7  have expressed a desire to bid on the particular types of items
   19-8  which are the subject of the bid invitation.  Use of the bidders
   19-9  list shall not be confined to contract purchases but it may be used
  19-10  by the commission in making any purchase.  The commission shall
  19-11  inform applicants for the list about the applicability of relevant
  19-12  criminal law, including Section 37.10, Penal Code, to entering
  19-13  information on an application for inclusion on the list and to
  19-14  presenting documentation in connection with the application. The
  19-15  commission shall refer any suspected violations of relevant
  19-16  criminal law, including Section 37.10, Penal Code, related to
  19-17  entering information on an application for inclusion on the list or
  19-18  presenting documentation in connection with the application to the
  19-19  appropriate legal authorities for investigation or prosecution.
  19-20        (d)  Bid Opening Procedure.  Bids shall be submitted to the
  19-21  commission, sealed, and identified as bids on the envelope, except
  19-22  that when the commission considers that the electronic information
  19-23  capabilities of the state and of the vendor community are
  19-24  sufficient, the commission may also allow facsimile or on-line
  19-25  transmission of bids.  Bids shall be opened at the time and place
  19-26  stated in the public notices and the invitation to bid.  The state
  19-27  auditor or a member of his staff may be present at any bid opening.
   20-1  A tabulation of all bids received shall be available for public
   20-2  inspection under regulations to be established by the commission.
   20-3        (e)  Award of Contract.  The commission shall award contracts
   20-4  to the bidder offering the best value for the state while
   20-5  <submitting the lowest and best bid> conforming to the
   20-6  specifications required.  Complying with the specified time limit
   20-7  for submission of written data, samples, or models on or before bid
   20-8  opening time is essential to the materiality of a bid, provided,
   20-9  however, that the commission shall have the authority to waive this
  20-10  provision if the failure to comply is beyond control of the bidder.
  20-11  In determining which <who is the lowest and best> bidder offers the
  20-12  best value for the state, the commission may take into account the
  20-13  safety record of the bidder, or the firm, corporation, partnership,
  20-14  or institution represented by the bidder, or anyone acting for such
  20-15  firm, corporation, partnership, or institution, provided, however,
  20-16  that the commission has adopted a written definition and criteria
  20-17  for accurately determining the safety record of a bidder and has
  20-18  given notice to prospective bidders, in the bid specifications,
  20-19  that the safety record of a bidder may be considered in determining
  20-20  the <lowest and best> bidder offering the best value for the state
  20-21  and, provided further, that such determinations are not arbitrary
  20-22  and capricious.  The <In determining who is the lowest and best
  20-23  bidder, in addition to price, the> commission shall determine which
  20-24  bidder offers the best value for the state in accordance with
  20-25  Sections 3.103 and 3.104 of this Act <consider:>
  20-26              <(1)  the quality, availability, and adaptability of
  20-27  the supplies, materials, equipment, or contractual services, to the
   21-1  particular use required;>
   21-2              <(2)  the number and scope of conditions attached to
   21-3  the bid;>
   21-4              <(3)  the ability, capacity, and skill of the bidder to
   21-5  perform the contract or provide the service required;>
   21-6              <(4)  whether the bidder can perform the contract or
   21-7  provide the service promptly, or within the time required, without
   21-8  delay or interference;>
   21-9              <(5)  the character, responsibility, integrity,
  21-10  reputation, and experience of the bidder;>
  21-11              <(6)  the quality of performance of previous contracts
  21-12  or services;>
  21-13              <(7)  the previous and existing compliance by the
  21-14  bidder with laws relating to the contract or service;>
  21-15              <(8)  any previous or existing noncompliance by the
  21-16  bidder with specification requirements relating to time of
  21-17  submission of specified data such as samples, models, drawings,
  21-18  certificates, or other information;>
  21-19              <(9)  the sufficiency of the financial resources and
  21-20  ability of the bidder to perform the contract or provide the
  21-21  service; and>
  21-22              <(10)  the ability of the bidder to provide future
  21-23  maintenance, repair parts, and service for the use of the subject
  21-24  of the contract>.
  21-25        (f)  Rejection of Bids.  If a bid is submitted in which there
  21-26  is a material failure to comply with the specification
  21-27  requirements, such bid shall be rejected and the contract awarded
   22-1  to the bidder offering the best value for the state and <submitting
   22-2  the lowest and best bid> conforming to the specifications,
   22-3  provided, however, the commission shall in any event have the
   22-4  authority to reject all bids or parts of bids when the interest of
   22-5  the state will be served thereby.
   22-6        (g)  Bid Record.  When an award is made, a statement of the
   22-7  basis for placing the order with the successful bidder and the
   22-8  factors considered in determining which bidder offered the best
   22-9  value for the state <the lowest and best bid> shall be prepared by
  22-10  the purchasing division and filed with other papers relating to the
  22-11  transaction.
  22-12        (h)  Tie Bids.  In case of tie bids, the value to the state
  22-13  <quality and service> being equal, the contract shall be awarded
  22-14  under rules and regulations to be adopted by the commission.
  22-15        SECTION 11.  Sections 3.12(b), (c), (e), and (f), State
  22-16  Purchasing and General Services Act (Article 601b, Vernon's Texas
  22-17  Civil Statutes), are amended to read as follows:
  22-18        (b)  Minimum Number of Bids.  All open market purchases
  22-19  shall, whenever possible, be based on at least three competitive
  22-20  bids, and shall be awarded to the <lowest and best> bidder offering
  22-21  the best value for the state in accordance with the standards set
  22-22  forth under this article.
  22-23        (c)  Notice Inviting Bids.  The commission shall solicit bids
  22-24  by:
  22-25              (1)  direct mail request to prospective vendors; <or>
  22-26              (2)  telephone or telegraph;
  22-27              (3)  facsimile transmission;
   23-1              (4)  on-line electronic transmission; or
   23-2              (5)  posting on an electronic bulletin board.
   23-3        (e)  Agency Review.  If a state agency requests that it be
   23-4  allowed to review the bids on a purchase request, the commission
   23-5  shall forward copies of the bids received or make the same
   23-6  available to the requesting agency along with the commission's
   23-7  recommended award.  If, after review of the bids and evaluation of
   23-8  the quality of products offered in the bids, the state agency
   23-9  determines that the bid selected by the commission does <is> not in
  23-10  its opinion offer the best value for the state <the lowest and best
  23-11  bid>, it may file with the commission a written recommendation,
  23-12  complete with justification, that the award be made to the bidder
  23-13  determined to offer the best value for the state <be the lowest and
  23-14  best bid>.  The commission shall give consideration to, but is not
  23-15  bound by, the agency recommendation in making the award.
  23-16        (f)  Statement of Award.  A statement of the basis for
  23-17  placing the order with the successful bidder and the factors
  23-18  considered in determining the <lowest and best> bid offering the
  23-19  best value for the state shall be prepared by the purchasing
  23-20  division and filed with other papers relating to the transaction.
  23-21        SECTION 12.  Section 3.17, State Purchasing and General
  23-22  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  23-23  amended by amending Subsections (a) and (c) and adding Subsections
  23-24  (d)-(g) to read as follows:
  23-25        (a)  The commission shall have the authority to establish and
  23-26  maintain a specifications and standards program to coordinate the
  23-27  establishment and maintenance of uniform standards and
   24-1  specifications for materials, supplies, and equipment purchased by
   24-2  the commission.  The commission may adopt by rule appropriate
   24-3  standards developed by nationally recognized standards-making
   24-4  entities as part of its specifications and standards program.  The
   24-5  commission shall enlist the cooperation of other state agencies,
   24-6  the advisory committee on procurement, and the vendor advisory
   24-7  committee in the establishment, maintenance, and revision of
   24-8  uniform standards and specifications and shall encourage and foster
   24-9  the use of standard specifications in order that the most efficient
  24-10  purchase of materials, supplies, and equipment may be continuously
  24-11  accomplished.
  24-12        (c)  The commission shall establish and maintain a program of
  24-13  testing and inspecting to ensure that materials, supplies,
  24-14  services, and equipment meet specifications, and may make contracts
  24-15  for testing.  If any state agency determines that any supplies,
  24-16  materials, services, or equipment received do not meet
  24-17  specifications, it shall promptly notify the commission in writing
  24-18  detailing the reasons why the supplies, materials, services, or
  24-19  equipment do not meet the specifications of the contract.  The
  24-20  commission shall immediately determine whether or not the reported
  24-21  supplies, materials, services, or equipment meet specifications.
  24-22  The sole power to determine whether materials, supplies, services,
  24-23  and equipment meet specifications shall rest with the commission.
  24-24  The commission shall provide for the inspecting and testing of all
  24-25  costly purchases and may adopt rules necessary to carry out this
  24-26  duty.  When the commission finds that contract specifications or
  24-27  conditions have not been complied with, it shall take action, with
   25-1  the assistance of the attorney general, if necessary, against the
   25-2  defaulting contractor.  If the commission receives repeated
   25-3  complaints regarding a vendor, the commission shall either remove
   25-4  the vendor's name from the commission's bidder's list for a period
   25-5  not to exceed one year or bar the vendor from participating in
   25-6  state contracts for a period under Section 3.106.
   25-7        (d)  The commission may also provide for testing and
   25-8  inspecting products before they are purchased.  Other state
   25-9  agencies may test products before purchase under standard testing
  25-10  methods prescribed by the commission. The commission shall
  25-11  disseminate information to agencies about available private testing
  25-12  facilities. The commission shall also prescribe procedures for
  25-13  using information obtained from product testing performed by or for
  25-14  the agency or the commission when the agency develops product
  25-15  specifications or invitations to bid.
  25-16        (e)  The commission may establish a qualified products list
  25-17  that includes products tested by or for the commission or another
  25-18  state agency that are approved by the commission for state agency
  25-19  use. The commission or other state agency making a purchase may
  25-20  when appropriate restrict bidding to bids offering products listed
  25-21  on the qualified products list.
  25-22        (f)  The commission shall consult the advisory committee on
  25-23  procurement and the vendor advisory committee regarding its testing
  25-24  and inspection program.
  25-25        (g)  The commission shall make the qualified products list
  25-26  and other documented product-performance information available
  25-27  through the procurement marketplace.
   26-1        SECTION 13.  Section 3.20, State Purchasing and General
   26-2  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   26-3  amended to read as follows:
   26-4        Sec. 3.20.  PREFERENCE FOR PRODUCTS OF RETARDED OR
   26-5  HANDICAPPED PERSONS.  The products of workshops, organizations, or
   26-6  corporations whose primary purpose is training and employing
   26-7  mentally retarded or physically handicapped persons shall be given
   26-8  preference if they meet state specifications as to quantity,
   26-9  quality, delivery, and price. The commission shall test the
  26-10  products in accordance with Section 3.17 of this Act to the extent
  26-11  necessary to ensure quality.  The commission shall consider product
  26-12  quality and delivery performance in agreeing to the price for
  26-13  products purchased under this section.
  26-14        SECTION 14.  Section 3.22, State Purchasing and General
  26-15  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  26-16  amended to read as follows:
  26-17        Sec. 3.22.  EXEMPTION OF GOODS OR SERVICES OF BLIND PERSONS.
  26-18  The provisions of this article with respect to competitive bids are
  26-19  not applicable to state purchases of blind-made goods or services
  26-20  offered for sale to state agencies as a result of efforts made by
  26-21  the Texas Committee on Purchases of Blind-Made Goods and Services
  26-22  acting in accordance with legislation applicable to the committee
  26-23  if the goods or services meet state specifications as to delivery,
  26-24  quantity, and quality and the cost is not in excess of the fair
  26-25  market price of like items. The commission shall test the goods or
  26-26  services in accordance with Section 3.17 of this Act to the extent
  26-27  necessary to ensure quality. The commission shall consider product
   27-1  or service quality and delivery performance in agreeing to the
   27-2  price for goods or services purchased under this section.
   27-3        SECTION 15.  Section 3.23, State Purchasing and General
   27-4  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   27-5  amended to read as follows:
   27-6        Sec. 3.23.  CONTRACTS WITH DEPARTMENT OF CRIMINAL JUSTICE.
   27-7  The commission is authorized to make contracts with the Texas
   27-8  Department of Criminal Justice for the purchase of supplies,
   27-9  equipment, services, and materials for use by other state agencies.
  27-10  The commission shall test the supplies, equipment, services, and
  27-11  materials in accordance with Section 3.17 of this Act to the extent
  27-12  necessary to ensure quality. The commission shall consider product
  27-13  or service quality and delivery performance in agreeing to the
  27-14  price for supplies, equipment, services, and materials purchased
  27-15  under this section.
  27-16        SECTION 16.  Article 3, State Purchasing and General Services
  27-17  Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
  27-18  adding Sections 3.34 and 3.35 to read as follows:
  27-19        Sec. 3.34.  ADVISORY COMMITTEE ON PROCUREMENT.  (a)  The
  27-20  commission shall establish an advisory committee on procurement.
  27-21  The purpose of the committee is to represent before the commission
  27-22  the state agency purchasing community and the political
  27-23  subdivisions that use the commission's purchasing services.
  27-24        (b)  The committee is composed of officers or employees of
  27-25  state agencies, including institutions of higher education, and
  27-26  political subdivisions who are invited by the commission to serve
  27-27  on the committee. The commission shall invite officers and
   28-1  employees who are experienced in public purchasing, in public
   28-2  finance, or who possess other appropriate expertise to serve on the
   28-3  committee. Service on the committee is an additional duty of the
   28-4  member's public office or employment. Article 6252-33, Revised
   28-5  Statutes, does not apply to the size or composition of the
   28-6  committee. The commission shall set staggered terms for the members
   28-7  of the committee.
   28-8        (c)  The committee may establish its own rules of operation.
   28-9        (d)  The committee shall recommend improvements in commission
  28-10  or state agency purchasing practices to the commission. The
  28-11  committee shall review and comment on findings and recommendations
  28-12  related to purchasing that are made by state agency internal
  28-13  auditors or by the state auditor.
  28-14        Sec. 3.35.  VENDOR ADVISORY COMMITTEE.  (a)  The commission
  28-15  shall establish a vendor advisory committee. The purpose of the
  28-16  committee is to represent before the commission the vendor
  28-17  community, to provide information to vendors, and to obtain vendor
  28-18  input on state procurement practices.
  28-19        (b)  The committee is composed of vendors who have done
  28-20  business with the state who are invited by the commission to serve
  28-21  on the committee. The commission shall invite a cross-section of
  28-22  the vendor community to serve on the committee, inviting both large
  28-23  and small businesses, both historically underutilized businesses
  28-24  and businesses that are not historically underutilized businesses,
  28-25  and vendors who provide a variety of different goods and services
  28-26  to the state.  Article 6252-33, Revised Statutes, does not apply to
  28-27  the size or composition of the committee. The commission shall set
   29-1  staggered terms for the members of the committee.
   29-2        (c)  The committee may establish its own rules of operation,
   29-3  but shall post notice of and hold its meetings in accordance with
   29-4  the open meetings law, Chapter 551, Government Code.
   29-5        SECTION 17.  Article 11, State Purchasing and General
   29-6  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   29-7  amended by adding Sections 11.08-11.10 to read as follows:
   29-8        Sec. 11.08.  ELECTRONIC BULLETIN BOARD POSTING OF NOTICE FOR
   29-9  PROCUREMENTS EXCEEDING $25,000.  (a)  This section applies to each
  29-10  state agency making a procurement that will exceed $25,000 in
  29-11  value:
  29-12              (1)  without regard to the source of funds the agency
  29-13  will use for the procurement; and
  29-14              (2)  including a procurement that:
  29-15                    (A)  is a procurement by a state agency but is
  29-16  otherwise exempt from the commission's purchasing authority or the
  29-17  application of this Act;
  29-18                    (B)  is made under delegated purchasing
  29-19  authority;
  29-20                    (C)  is related to a construction project; or
  29-21                    (D)  is a procurement of  professional or
  29-22  consulting services.
  29-23        (b)  The commission shall send to the comptroller for posting
  29-24  on the comptroller's Windows on State Government electronic
  29-25  bulletin board information as prescribed by this section about
  29-26  commission or other state agency procurements that will exceed
  29-27  $25,000 in value.  The commission may also send to the comptroller
   30-1  for posting on the electronic bulletin board other information
   30-2  relating to the business activity of the state that the commission
   30-3  considers to be of interest to the public. The commission shall
   30-4  send the information in a format agreed to by the comptroller.
   30-5        (c)  The commission shall include in the information sent to
   30-6  the comptroller, to the extent it is feasible and cost-effective,
   30-7  the following information for each procurement that the commission
   30-8  or another state agency will make that is estimated to exceed
   30-9  $25,000 in value:
  30-10              (1)  a description of the goods or services to be
  30-11  procured;
  30-12              (2)  the estimated cost of the procurement;
  30-13              (3)  the estimated quantity of goods or services to be
  30-14  procured;
  30-15              (4)  if applicable, the previous price paid by the
  30-16  commission or other state agency for the same or similar goods or
  30-17  services;
  30-18              (5)  the estimated date on which the goods or services
  30-19  to be procured will be needed; and
  30-20              (6)  the name, business mailing address, and business
  30-21  telephone number of the commission employee or other state agency
  30-22  employee a person can contact to obtain all necessary information
  30-23  related to making a bid or proposal or other applicable expression
  30-24  of interest for the procurement contract.
  30-25        (d)  Each state agency that will award a procurement contract
  30-26  estimated to exceed $25,000 in value shall send to the commission:
  30-27              (1)  the information the commission requires for
   31-1  posting on the comptroller's electronic bulletin board under this
   31-2  section; and
   31-3              (2)  a notice when the procurement contract has been
   31-4  awarded.
   31-5        (e)  The commission may adopt rules, prescribe forms, and
   31-6  require information to administer this section.  The commission
   31-7  shall send any proposed rules to the comptroller for review and
   31-8  comment.
   31-9        (f)  The requirements of this section are in addition to the
  31-10  requirements of other law relating to the solicitation of bids,
  31-11  proposals, or expressions of interest for a procurement by the
  31-12  commission or another state agency.  This section does not affect
  31-13  whether the commission or other state agency is required to award a
  31-14  procurement contract through competitive bidding, competitive
  31-15  sealed proposals, or another method.
  31-16        Sec. 11.09.  ELECTRONIC PROCUREMENT MARKETPLACE.  (a) The
  31-17  commission shall establish and manage an electronic procurement
  31-18  marketplace through which the commission and state agencies may:
  31-19              (1)  communicate information relevant to the state's
  31-20  procurement of goods and services; and
  31-21              (2)  conduct elements of purchasing transactions within
  31-22  state government electronically to the extent that it is feasible
  31-23  and cost-effective to do so.
  31-24        (b)  The commission shall design the procurement marketplace
  31-25  as an interactive gateway between all state databases that relate
  31-26  to procurement, including databases that contain information about
  31-27  the availability of surplus property. The commission shall define
   32-1  standards, including keyword and product code standards, for the
   32-2  procurement marketplace.
   32-3        (c)  The commission may adopt rules relating to the design
   32-4  and use of the procurement marketplace, including rules that
   32-5  require state agencies to provide information for or receive
   32-6  information from the procurement marketplace. A state agency must
   32-7  first check the procurement marketplace to determine the most
   32-8  appropriate method for acquiring a good or service before the
   32-9  agency develops a contract for or makes an open market purchase of
  32-10  the good or service.
  32-11        (d)  The commission shall make state procurement information
  32-12  available to political subdivisions through the procurement
  32-13  marketplace on a fee-for-service basis. The commission shall set
  32-14  the fees in an amount that recovers the state's costs in providing
  32-15  the access to a political subdivision.
  32-16        Sec. 11.10.  ELECTRONIC COMMERCE NETWORK USING ELECTRONIC
  32-17  DATA INTERCHANGE.  (a)  The commission shall establish and manage
  32-18  an  electronic commerce network under which the state's purchasing
  32-19  transactions with vendors can be accomplished electronically by
  32-20  means of facsimile transmissions and on-line transmission of
  32-21  necessary information. The commission shall base the network on the
  32-22  standard data protocol developed by the American National Standards
  32-23  Institute known as electronic data interchange.
  32-24        (b)  The commission may enter into contracts with one or more
  32-25  public or private entities to establish or support various elements
  32-26  of the network. The commission may provide for a gateway between
  32-27  the procurement marketplace and the electronic commerce network so
   33-1  that the elements of a procurement transaction that are within
   33-2  state government and the elements of a procurement transaction that
   33-3  involve communication with a vendor may all be accomplished
   33-4  electronically.
   33-5        (c)  Each state agency that is capable of participating in
   33-6  the electronic commerce network must participate in the network and
   33-7  participate in contracts entered into by the commission for the
   33-8  establishment or support of the network. The commission shall
   33-9  charge an agency a fee for network services provided to the agency
  33-10  by the commission and require an agency to pay a fee to a
  33-11  contractor for network services provided to the agency by the
  33-12  contractor, so that the cost of providing network services to an
  33-13  agency is paid by the agency.
  33-14        (d)  The commission may allow political subdivisions and
  33-15  other public entities to participate in the electronic commerce
  33-16  network. The commission shall provide that a participating
  33-17  political subdivision is charged fees for network services provided
  33-18  to the political subdivision in the same manner that participating
  33-19  state agencies are charged fees under Subsection (c) of this
  33-20  section.
  33-21        (e)  The commission may:
  33-22              (1)  adopt rules to administer this section; and
  33-23              (2)  require participating state agencies, political
  33-24  subdivisions, and other public entities to designate a network
  33-25  coordinator.
  33-26        SECTION 18.  Article 15, State Purchasing and General
  33-27  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   34-1  amended by adding Section 15.11 to read as follows:
   34-2        Sec. 15.11.  CONSOLIDATING OR CONTRACTING FOR MATERIALS
   34-3  MANAGEMENT FUNCTIONS.  (a)  The council shall study the materials
   34-4  management functions of state agencies. When the council determines
   34-5  a course of action that will more effectively or efficiently
   34-6  accomplish an agency's materials management functions, the council
   34-7  may:
   34-8              (1)  order two or more state agencies to consolidate
   34-9  between them warehousing, inventory control, or other materials
  34-10  management functions; or
  34-11              (2)  order a state agency to obtain under a contract
  34-12  with another state agency or a private commercial source the
  34-13  agency's warehousing, inventory control, or other materials
  34-14  management functions.
  34-15        (b)  State agencies shall consolidate or contract for
  34-16  materials management functions in the manner directed by the
  34-17  council.
  34-18        SECTION 19.  (a)  The state auditor and the advisory
  34-19  committee on procurement established by this Act shall study how
  34-20  the classification levels of state agency purchasing personnel
  34-21  should be revised to reflect the increased levels of responsibility
  34-22  and accountability given to state agency purchasing personnel under
  34-23  the changes in law made by this Act. The state auditor and the
  34-24  committee should consider how best to provide purchasing personnel
  34-25  with a pay scale and a career path, including goals, incentives,
  34-26  and initiatives, commensurate with the purchaser's knowledge,
  34-27  authority, and responsibility.
   35-1        (b)  The state auditor and the committee shall present their
   35-2  written recommendations and the results of their study to the
   35-3  legislature not later than November 1, 1996.
   35-4        SECTION 20.  The commission may conduct pilot studies of
   35-5  regional contracts and no-stock contracts.
   35-6        SECTION 21.  The Legislative Budget Board and the division of
   35-7  the governor's office that works with budget and planning issues
   35-8  shall study and consider:
   35-9              (1)  ways to obtain information about planned state
  35-10  procurements as part of the reporting and information gathering
  35-11  functions of the state's appropriations process; and
  35-12              (2)  ways to use that information to increase the
  35-13  state's buying power.
  35-14        SECTION 22.  The General Services Commission shall gradually
  35-15  phase in, in the most cost-effective manner and in accordance with
  35-16  available appropriations, the changes in law made by this Act that
  35-17  require the establishment of electronic or automated marketplaces,
  35-18  networks, or databases.
  35-19        SECTION 23.  Sections 3.0221 and 3.09(d), State Purchasing
  35-20  and General Services Act (Article 601b, Vernon's Texas Civil
  35-21  Statutes), are repealed.
  35-22        SECTION 24.  This Act takes effect September 1, 1995.
  35-23        SECTION 25.  The importance of this legislation and the
  35-24  crowded condition of the calendars in both houses create an
  35-25  emergency and an imperative public necessity that the
  35-26  constitutional rule requiring bills to be read on three several
  35-27  days in each house be suspended, and this rule is hereby suspended.