By Junell H.B. No. 3365
75R3329 JRD-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the consolidation of state telecommunications services
1-3 into a nonprofit corporation.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subtitle D, Title 10, Government Code, is amended
1-6 by adding Chapter 2169 to read as follows:
1-7 CHAPTER 2169. TEXAS ADMINISTRATIVE SERVICES
1-8 TELECOMMUNICATIONS CORPORATION
1-9 SUBCHAPTER A. GENERAL PROVISIONS; PROVISION OF TELECOMMUNICATIONS
1-10 SERVICES TO STATE AND LOCAL GOVERNMENTAL ENTITIES
1-11 Sec. 2169.001. PURPOSE. The purpose of this chapter is to
1-12 establish a nonprofit corporation that:
1-13 (1) is governed by a board of directors appointed by
1-14 the governor;
1-15 (2) is subject to certain laws that govern the conduct
1-16 of governmental entities; and
1-17 (3) will provide telecommunications services to state
1-18 and local governmental entities that choose to use the
1-19 corporation's services, initially using property and equipment
1-20 transferred to the corporation by certain state agencies.
1-21 Sec. 2169.002. DEFINITIONS. In this chapter:
1-22 (1) "Board" means the board of directors of the Texas
1-23 Administrative Services Telecommunications Corporation.
1-24 (2) "Corporation" means the Texas Administrative
2-1 Services Telecommunications Corporation.
2-2 (3) "Executive director" means the executive director
2-3 of the corporation.
2-4 Sec. 2169.003. STATE AGENCY OPTIONS FOR OBTAINING
2-5 TELECOMMUNICATIONS SERVICES. (a) A state agency may obtain
2-6 telecommunications services only:
2-7 (1) through the corporation;
2-8 (2) from commercial sources; or
2-9 (3) by providing the telecommunications services
2-10 itself, including by constructing its own telecommunications
2-11 network if necessary to the provision of its own services.
2-12 (b) A state agency that obtains telecommunications services
2-13 from commercial sources or provides its own telecommunications
2-14 services under Subsection (a)(2) or (a)(3) must file a report with
2-15 the commission justifying any purchase the agency makes that
2-16 exceeds $5,000, that relates to obtaining or providing its own
2-17 telecommunications services, and that is made from an entity other
2-18 than the corporation. The agency must list in the report all
2-19 reasons based on cost, performance, or other criteria for obtaining
2-20 or providing its own services under Subsection (a)(2) or (a)(3).
2-21 (c) The commission each biennium shall report any purchases
2-22 made by a state agency under Subsection (b) to the Legislative
2-23 Budget Board at a time prescribed by the budget board.
2-24 (d) This section does not apply to a university system or
2-25 institution of higher education as defined by Section 61.003,
2-26 Education Code.
2-27 Sec. 2169.004. USE OF CORPORATION'S SERVICES BY
3-1 UNIVERSITIES, LEGISLATIVE ENTITIES, AND LOCAL GOVERNMENTAL
3-2 ENTITIES. (a) A university system or an institution of higher
3-3 education as defined by Section 61.003, Education Code, may at the
3-4 option of the system or institution obtain telecommunications
3-5 services from the corporation.
3-6 (b) A house of the legislature or a legislative agency may
3-7 at the option of the legislative entity obtain telecommunications
3-8 services from the corporation.
3-9 (c) A local governmental entity may at the option of the
3-10 local governmental entity obtain telecommunications services from
3-11 the corporation.
3-12 Sec. 2169.005. PROVISION OF TELECOMMUNICATIONS SERVICES BY
3-13 STATE AGENCY OR UNIVERSITY. (a) A state agency may not provide
3-14 telecommunications services to another state agency or to a local
3-15 governmental entity except as provided by Subsection (b).
3-16 (b) A university system or an institution of higher
3-17 education as defined by Section 61.003, Education Code, may provide
3-18 telecommunications services only for itself or to another such
3-19 university system or institution of higher education. An
3-20 institution of higher education may also allow students who reside
3-21 in the institution's housing to use for local and long-distance
3-22 services the system of telecommunications services that the
3-23 institution itself uses if the institution charges each student for
3-24 the full pro rata costs attributable to the student's use.
3-25 Sec. 2169.006. COMPLIANCE WITH DEPARTMENT OF INFORMATION
3-26 RESOURCES' STANDARDS. The telecommunications services provided by
3-27 the corporation must comply with the Department of Information
4-1 Resources' statewide policies and standards established under
4-2 Section 2054.059.
4-3 Sec. 2169.007. RESTRICTION ON ACTIVITIES OF CORPORATION.
4-4 The purpose of the corporation is to carry out the public purposes
4-5 of this chapter. The corporation's activities are limited to the
4-6 provision of telecommunications services to state and local
4-7 governmental entities in accordance with this chapter and to
4-8 exercising powers incidental to or necessary for the provision of
4-9 those services.
4-10 (Sections 2169.008-2169.050 reserved for expansion)
4-11 SUBCHAPTER B. ESTABLISHMENT OF
4-12 CORPORATION; ADMINISTRATIVE PROVISIONS
4-13 Sec. 2169.051. APPLICATION OF TEXAS NON-PROFIT CORPORATION
4-14 ACT. The Texas Non-Profit Corporation Act (Article 1396-1.01 et
4-15 seq., Vernon's Texas Civil Statutes) applies to the corporation to
4-16 the extent that the provisions of that Act are consistent with this
4-17 chapter.
4-18 Sec. 2169.052. FORM OF CORPORATION; DISPOSITION OF EARNINGS.
4-19 (a) The corporation is a nonmember, nonstock corporation.
4-20 (b) The corporation is nonprofit, and no part of its net
4-21 earnings remaining after payment of its expenses may benefit any
4-22 individual, firm, or corporation, except that if the board
4-23 determines that sufficient provision has been made for the full
4-24 payment of the expenses, bonds, and other obligations of the
4-25 corporation, the additional net earnings of the corporation shall
4-26 be deposited to the credit of the general revenue fund.
4-27 (c) The corporation shall be created as a perpetual
5-1 corporation.
5-2 (d) Notwithstanding any provision of the Texas Non-Profit
5-3 Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil
5-4 Statutes) and the Texas Business Corporation Act, the corporation
5-5 may not be dissolved by a vote of the board.
5-6 Sec. 2169.053. ARTICLES OF INCORPORATION. The articles of
5-7 incorporation of the corporation must state:
5-8 (1) the name of the corporation;
5-9 (2) that the corporation is a nonprofit corporation;
5-10 (3) that the duration of the corporation is perpetual;
5-11 (4) that the specific purpose for which the
5-12 corporation is organized is for the provision of telecommunications
5-13 services to state and local governmental entities under Chapter
5-14 2169, Government Code;
5-15 (5) that the corporation does not have any members and
5-16 is a nonstock corporation;
5-17 (6) the street address and name of the corporation's
5-18 initial registered office and its initial registered agent;
5-19 (7) the number of directors of the initial board as
5-20 provided by this chapter and the name and address of each director;
5-21 and
5-22 (8) the name and street address of the incorporator.
5-23 Sec. 2169.054. BOARD; APPOINTMENT; TERMS OF OFFICE. (a)
5-24 The board consists of six members appointed by the governor with
5-25 the advice and consent of the senate.
5-26 (b) The members serve staggered six-year terms. The terms
5-27 of one-third of the members expire February 1 of each odd-numbered
6-1 year.
6-2 Sec. 2169.055. CONFLICT OF INTEREST. (a) A person may not
6-3 serve as a member of the board or be the executive director or an
6-4 employee of the corporation if the person or the person's spouse:
6-5 (1) is employed by, participates in the management of,
6-6 or is a paid consultant of a business entity that contracts with
6-7 the corporation;
6-8 (2) owns or controls, directly or indirectly, more
6-9 than a 10 percent interest in a business entity or other
6-10 organization that contracts with the corporation;
6-11 (3) uses a substantial amount of tangible goods,
6-12 services, or funds obtained from the corporation or receives a
6-13 substantial amount of tangible goods, services, or funds from the
6-14 corporation, other than compensation or reimbursement authorized by
6-15 law for employee salaries and benefits or for board membership,
6-16 attendance, and expenses; or
6-17 (4) is an officer, employee, or paid consultant of a
6-18 trade association of businesses that contracts with the
6-19 corporation.
6-20 (b) For the purposes of this section, a trade association is
6-21 a nonprofit, cooperative, and voluntarily joined association of
6-22 business or professional competitors designed to assist its members
6-23 and its industry or profession in dealing with mutual business or
6-24 professional problems and in promoting their common interest.
6-25 (c) For the purposes of this section, a business entity is a
6-26 sole proprietorship, partnership, firm, corporation, holding
6-27 company, joint stock company, receivership, trust, or any other
7-1 entity recognized in a law that governs business for profit and the
7-2 manner in which business is conducted.
7-3 (d) A person may not be a member of the board or the
7-4 executive director or an employee of the corporation if the person
7-5 is required to register as a lobbyist under Chapter 305 due to the
7-6 person's activities for compensation on behalf of a business entity
7-7 that has an interest in a contract with the corporation or a
7-8 profession related to the operation of the corporation.
7-9 Sec. 2169.056. OFFICERS; COMPENSATION; MEETINGS. (a) The
7-10 governor shall designate the presiding officer of the board. The
7-11 presiding officer serves in that capacity at the will of the
7-12 governor.
7-13 (b) The board shall elect from among its members a
7-14 secretary.
7-15 (c) The board shall meet at least quarterly.
7-16 (d) A member of the board may not receive compensation for
7-17 service on the board. A member is entitled to receive
7-18 reimbursement for actual and necessary expenses incurred in
7-19 performing services as a member of the board.
7-20 (e) The board shall develop and implement policies that
7-21 provide the public with a reasonable opportunity to appear before
7-22 the board and to speak on any issue under the jurisdiction of the
7-23 board.
7-24 Sec. 2169.057. OPEN MEETINGS. (a) The corporation is
7-25 subject to Chapter 551.
7-26 (b) The board shall file notice of each meeting of the board
7-27 in the manner required for a state governmental body under Chapter
8-1 551.
8-2 Sec. 2169.058. OPEN RECORDS. The board is subject to
8-3 Chapter 552.
8-4 Sec. 2169.059. INDEMNIFICATION. The corporation may
8-5 indemnify a director or an officer of the corporation for necessary
8-6 expenses and costs, including attorney's fees, incurred by the
8-7 director or officer in connection with any claim asserted against
8-8 the director or officer in a court action or otherwise for
8-9 negligence or misconduct related to corporation activities.
8-10 Sec. 2169.060. EXECUTIVE DIRECTOR. The board shall employ
8-11 an executive director to be chosen by a majority of the board
8-12 members who shall manage the corporation's day-to-day operations
8-13 and employ other employees necessary to carry out the corporation's
8-14 duties.
8-15 Sec. 2169.061. EXEMPTION FROM TAXATION. The corporation may
8-16 engage exclusively in the performance of public nonprofit functions
8-17 under this chapter and is exempt from all taxation by this state or
8-18 a municipality or other political subdivision of the state.
8-19 Sec. 2169.062. BONDS AND NOTES. (a) The corporation may
8-20 issue bonds and notes to carry out its purpose.
8-21 (b) The bonds and notes may be issued under any power or
8-22 authority available to the corporation, including the Bond
8-23 Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil
8-24 Statutes).
8-25 (c) A bond or note issued by the corporation must state on
8-26 its face that it is not an obligation of the State of Texas.
8-27 Sec. 2169.063. APPROVAL OF BONDS AND NOTES BY ATTORNEY
9-1 GENERAL. (a) The corporation shall submit a bond or note issued
9-2 under this chapter and a contract supporting its issuance to the
9-3 attorney general for examination.
9-4 (b) If the attorney general finds that the bond or note and
9-5 any supporting contract are authorized under this chapter, the
9-6 attorney general shall approve them.
9-7 (c) After approval by the attorney general, a bond, note, or
9-8 contract may not be contested for any reason.
9-9 Sec. 2169.064. ASSETS ON DISSOLUTION. On dissolution or
9-10 liquidation of the corporation, the title to all assets, including
9-11 funds and property, shall be transferred to the commission.
9-12 Sec. 2169.065. FUND. Money paid to the corporation under
9-13 this chapter shall be deposited with the comptroller.
9-14 Sec. 2169.066. REPORT. (a) The corporation shall file an
9-15 annual report of the financial activity of the corporation with the
9-16 governor, lieutenant governor, and speaker of the house of
9-17 representatives. The annual report shall be filed before the 90th
9-18 day after the last day of the corporation's fiscal year and shall
9-19 be prepared in accordance with generally accepted accounting
9-20 principles.
9-21 (b) The report must include a statement of support, revenue,
9-22 and expenses and change in fund balances, a statement of functional
9-23 expenses, and balance sheets for all funds.
9-24 Sec. 2169.067. STATE-OWNED RENTAL SPACE. If requested by
9-25 the corporation, the commission shall determine whether appropriate
9-26 state-owned space is available and may rent appropriate space to
9-27 the corporation at fair market value under Subchapter E, Chapter
10-1 2165. A rental agreement between the commission and the
10-2 corporation is not subject to Sections 2165.204 and 2165.205.
10-3 SECTION 2. Section 2054.003(10), Government Code, is amended
10-4 to read as follows:
10-5 (10) "Telecommunications" means any transmission,
10-6 emission, or reception of signs, signals, writings, images, or
10-7 sounds of intelligence of any nature by wire, radio, optical, or
10-8 other electromagnetic systems. The term includes all facilities
10-9 and equipment performing those functions that are owned, leased, or
10-10 used by state agencies and branches of state government. The term
10-11 does not include single agency point-to-point radio systems or
10-12 facilities or services of criminal justice information
10-13 communications systems.
10-14 SECTION 3. Section 2054.051(e), Government Code, is amended
10-15 to read as follows:
10-16 (e) The department shall provide for all interagency use of
10-17 information resources technologies by state agencies, except for
10-18 telecommunications services provided [by the General Services
10-19 Commission] under other law. The department may provide for
10-20 interagency use of information resources technologies either
10-21 directly or by certifying another state agency to provide specified
10-22 uses of information resources technologies to other state agencies.
10-23 SECTION 4. Section 2054.059, Government Code, is amended to
10-24 read as follows:
10-25 Sec. 2054.059. TELECOMMUNICATIONS PLANNING AND POLICY.
10-26 (a) [The department shall establish plans and policies for a
10-27 system of telecommunications services to be managed and operated by
11-1 the General Services Commission.]
11-2 [(b) The department, comptroller, and General Services
11-3 Commission shall develop a statewide telecommunications operating
11-4 plan for all state agencies. The plan shall implement a statewide
11-5 network and include technical specifications that are binding on
11-6 the managing and operating agency. A representative of the Central
11-7 Education Agency and a representative of the Texas Higher
11-8 Education Coordinating Board shall review and comment on the
11-9 operating plan as part of the representatives' duties under Section
11-10 10.02(g), State Purchasing and General Services Act (Article 601b,
11-11 Vernon's Texas Civil Statutes).]
11-12 [(c)] The department shall adopt appropriate policies and
11-13 standards that govern the cost-effective and efficient management,
11-14 operation, and use of state telecommunications services and shall
11-15 distribute those policies and standards to all state agencies.
11-16 (b) [(d)] Each state agency shall comply with the rules,
11-17 policies, standards, and guidelines adopted under this section.
11-18 [(e) The department shall coordinate its duties in this
11-19 section on matters relating to statewide telecommunications issues
11-20 with:]
11-21 [(1) the comptroller to achieve the goal of a single
11-22 centralized telecommunications network; and]
11-23 [(2) other state agencies as appropriate.]
11-24 SECTION 5. The following laws are repealed:
11-25 (1) Section 2054.011, Government Code; and
11-26 (2) Chapter 2170, Government Code.
11-27 SECTION 6. (a) As soon as possible after the effective date
12-1 of this Act, the governor shall appoint the members of the board of
12-2 directors of the Texas Administrative Services Telecommunications
12-3 Corporation in accordance with Chapter 2169, Government Code, as
12-4 added by this Act. The governor shall appoint two members for terms
12-5 expiring February 1, 1999, two members for terms expiring February
12-6 1, 2001, and two members for terms expiring February 1, 2003.
12-7 (b) The governor shall designate one of those members as the
12-8 presiding officer of the board of directors. The presiding officer
12-9 shall serve as the incorporator of the corporation and begin
12-10 performing those functions in accordance with Chapter 2169,
12-11 Government Code, as added by this Act, and other applicable law.
12-12 (c) At the time that the governor has appointed at least a
12-13 quorum to the board, the General Services Commission shall transfer
12-14 the telecommunications revolving fund account and the money in the
12-15 account, the right to receive future money payable into the
12-16 account, the financial obligations that are paid with money in the
12-17 account, and the original or a copy of all records related to the
12-18 transferred account or obligations to the Texas Administrative
12-19 Services Telecommunications Corporation. The corporation at the
12-20 time a quorum of the board is appointed is considered a legal
12-21 entity for the purpose of performing its transitional duties under
12-22 this section without regard to whether the creation of the
12-23 corporation has been completed in accordance with Chapter 2169,
12-24 Government Code, as added by this Act, and other applicable law.
12-25 Until the telecommunications equipment and other assets related to
12-26 the provision of telecommunications services are transferred to the
12-27 corporation so that the corporation may begin providing
13-1 telecommunications services to state and local governmental
13-2 entities, the corporation may use money from the account only:
13-3 (1) to pay the financial obligations paid from the
13-4 account as those obligations become due; and
13-5 (2) to hire an executive director and other necessary
13-6 staff who will see that the financial obligations are paid with
13-7 money from the account and who will use money from the account to
13-8 prepare the transition plan for beginning to provide services.
13-9 (d) The executive director of the corporation shall prepare
13-10 a transition plan for approval by the board of directors for:
13-11 (1) consolidation of the equipment, contracts, and
13-12 other assets related to the provision of telecommunications
13-13 services from the General Services Commission's telecommunications
13-14 services division, the statewide telecommunications section of the
13-15 Department of Information Resources, and the Health and Human
13-16 Services Commission Network into the corporation; and
13-17 (2) the corporation to begin providing services.
13-18 (e) At the time that the board of directors certifies that
13-19 the corporation is ready to begin providing services in accordance
13-20 with Chapter 2169, Government Code, as added by this Act, all
13-21 equipment, records, other assets, contracts, and obligations of the
13-22 Department of Information Resources, the General Services
13-23 Commission, the Health and Human Services Commission, and if
13-24 applicable other health and human services agencies that are
13-25 related to the provision of local or long-distance voice or data
13-26 telecommunications services to another agency are transferred to
13-27 the Texas Administrative Services Telecommunications Corporation.
14-1 Any money in the statewide network applications account is also
14-2 transferred to the corporation at that time. The corporation shall
14-3 then begin providing telecommunications services to state and local
14-4 governmental agencies that choose to use the corporation's
14-5 services.
14-6 (f) The provisions of Chapters 2054 and 2170, Government
14-7 Code, that are repealed or amended by this Act are continued in
14-8 effect as they existed immediately before the effective date of
14-9 this Act, to the extent consistent with this section, until the
14-10 board of directors certifies that the corporation is ready to begin
14-11 providing services.
14-12 SECTION 7. The Texas Administrative Services
14-13 Telecommunications Corporation shall transfer into the general
14-14 revenue fund of the State of Texas, before the 90th day after the
14-15 last day of each of the corporation's first five fiscal years, the
14-16 following amounts: $528,000 for 1998, $573,000 for 1999, $546,000
14-17 for 2000, $546,000 for 2001, and $546,000 for 2002. If the
14-18 corporation lacks sufficient resources to transfer the required
14-19 amount for any of those years, the corporation shall list the
14-20 difference between the required amount and the amount paid as a
14-21 liability in its annual report to the governor, lieutenant
14-22 governor, and speaker of the house of representatives. The
14-23 corporation must explain the reason for the deficiency in the notes
14-24 to the report and must transfer the amount of the remaining
14-25 liability into the general revenue fund as soon as possible.
14-26 SECTION 8. On September 1, 1997, the state auditor shall
14-27 begin an audit of the General Services Commission's
15-1 telecommunications services division, the statewide
15-2 telecommunications section of the Department of Information
15-3 Resources, and the Health and Human Services Commission Network.
15-4 The purpose of the audit is to prepare an account of all assets,
15-5 liabilities, and personnel that will be affected by the
15-6 consolidation under Chapter 2169, Government Code, as added by
15-7 this Act.
15-8 SECTION 9. (a) Concurrently with the transfer of the assets
15-9 of the General Services Commission's telecommunications services
15-10 division, the statewide telecommunications section of the
15-11 Department of Information Resources, and the Health and Human
15-12 Services Commission Network to the Texas Administrative Services
15-13 Telecommunications Corporation under this Act, the corporation
15-14 shall pay into the general revenue fund an amount equal to the fair
15-15 market value of the assets transferred as determined in accordance
15-16 with applicable state law, provided that the payment shall be
15-17 spread evenly over a period not to exceed 20 years. The amounts
15-18 paid under this subsection are in addition to the amounts paid
15-19 under Section 7 of this Act.
15-20 (b) If any existing telecommunications network components
15-21 used by the General Services Commission, the Department of
15-22 Information Resources, or the Health and Human Services Commission
15-23 Network that are subject to transfer to the corporation under this
15-24 Act are owned by the federal government, the applicable commission
15-25 or agency shall use its best efforts to secure agreements with the
15-26 appropriate federal agencies to arrange for the orderly transfer of
15-27 telecommunications services to the corporation.
16-1 SECTION 10. This Act takes effect September 1, 1997.
16-2 SECTION 11. The importance of this legislation and the
16-3 crowded condition of the calendars in both houses create an
16-4 emergency and an imperative public necessity that the
16-5 constitutional rule requiring bills to be read on three several
16-6 days in each house be suspended, and this rule is hereby suspended.