By Coleman                                      H.B. No. 1985

      75R3913 MLS-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the consolidation of administrative support functions

 1-3     of state agencies through the use of franchising.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 2162.001, Government Code, is amended to

 1-6     read as follows:

 1-7           Sec. 2162.001. DEFINITIONS [DEFINITION].  In this chapter:

 1-8     [,]

 1-9                 (1)  "Council" ["council"] means the State Council on

1-10     Competitive Government.

1-11                 (2)  "Franchising" means the marketing and provision of

1-12     certain administrative support functions by public or private

1-13     groups to governmental organizations for a set fee in a competitive

1-14     market.

1-15           SECTION 2.  Section 2162.002, Government Code, is amended to

1-16     read as follows:

1-17           Sec. 2162.002.  COMPETITION, INNOVATION, [AND] CREATIVITY,

1-18     AND EFFICIENCY IN STATE SERVICES.  The state shall:

1-19                 (1)  encourage competition, innovation, and creativity

1-20     among service providers to improve the quality of the state's

1-21     services; and

1-22                 (2)  increase the efficiency of state agency operations

1-23     by  consolidating certain administrative support functions through

1-24     the use of franchising.

 2-1           SECTION 3.  Subchapter C, Chapter 2162, Government Code, is

 2-2     amended by adding Sections 2162.1035-2162.1037 to read as follows:

 2-3           Sec. 2162.1035.  FRANCHISING.  (a)  The council shall provide

 2-4     oversight for franchising efforts in the state by:

 2-5                 (1)  determining the requirements for franchising

 2-6     applications;

 2-7                 (2)  developing methods for approving franchising

 2-8     applications;

 2-9                 (3)  conducting a competitive bidding process and

2-10     reviewing franchising plans submitted by public and private groups;

2-11                 (4)  designating private and public groups as

2-12     franchising agencies; and

2-13                 (5)  encouraging the participation of state agencies

2-14     both as franchising agencies and as consumers of franchised

2-15     services.

2-16           (b)  A private group or a state agency interested in becoming

2-17     a franchising agency shall submit to the council a business plan

2-18     that includes:

2-19                 (1)  a list of services to be provided by the private

2-20     group or state agency;

2-21                 (2)  the number of personnel needed to support the

2-22     franchise operation;

2-23                 (3)  funding sources, including specific requests for

2-24     funding from the franchise account;

2-25                 (4)  plans for cost recovery;

2-26                 (5)  proposed rates for services provided; and

2-27                 (6)  a detailed explanation of the infrastructure of

 3-1     the  private group or state agency as related to franchising.

 3-2           (c)  Fees charged by a franchising agency for the provision

 3-3     of franchised services must cover the total estimated cost of

 3-4     operating the franchise and providing the services.

 3-5           (d)  A state agency may use agency employees to provide

 3-6     franchised services or may contract with private organizations to

 3-7     provide the services.  If employees of a state agency are used to

 3-8     provide franchised services, the employees shall be paid from funds

 3-9     raised from franchising.

3-10           Sec. 2162.1036.  FRANCHISE ACCOUNT.  (a)  The franchise

3-11     account is created as an account in the general revenue fund.

3-12           (b)  A state agency shall remit all fees collected under

3-13     Section 2162.1035 to the comptroller for deposit to the credit of

3-14     the franchise account.

3-15           (c)  Money in the franchise account may be used only for the

3-16     support of franchising operations approved by the council.  The

3-17     comptroller may pay money from the account only on vouchers

3-18     approved by the council.

3-19           (d)  The council shall file a report with the Legislative

3-20     Budget Board at the end of each fiscal year showing disbursements

3-21     from the account and the purpose for each disbursement.  All money

3-22     expended is subject to audit by the comptroller and the state

3-23     auditor.

3-24           (e)  Money available from the franchise account may be

3-25     supplemented by local or federal money and private or public

3-26     grants.

3-27           Sec. 2162.1037.  PILOT PROJECT.  (a)  The council and the

 4-1     Health and Human Services Commission shall establish and develop

 4-2     standards for a pilot project that provides for the franchising of

 4-3     the administrative support functions of all health and human

 4-4     services organizations and the Texas Youth Commission.

 4-5           (b)  The council shall oversee the competitive bidding

 4-6     process, review franchise plans, and choose the franchising agency

 4-7     for the pilot project.

 4-8           (c)  The pilot project must begin operation not later than

 4-9     September 1, 1998.

4-10           (d)  The council may expand the pilot project described by

4-11     this section by allowing other state agencies to become franchising

4-12     agencies for the project or to use the franchised services.

4-13           SECTION 4.  The importance of this legislation and the

4-14     crowded condition of the calendars in both houses create an

4-15     emergency and an imperative public necessity that the

4-16     constitutional rule requiring bills to be read on three several

4-17     days in each house be suspended, and this rule is hereby suspended,

4-18     and that this Act take effect and be in force from and after its

4-19     passage, and it is so enacted.