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.