AN ACT

 1-1     relating to the purchase of goods and services by the state and to

 1-2     purchasing services provided by the state to local governments.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subchapter A, Chapter 2152, Government Code, is

 1-5     amended by adding Section 2152.003 to read as follows:

 1-6           Sec. 2152.003.  AUTHORITY TO ADOPT RULES.  The commission may

 1-7     adopt rules to efficiently and effectively administer this

 1-8     subtitle.

 1-9           SECTION 2.  Section 2155.065, Government Code, is amended to

1-10     read as follows:

1-11           Sec. 2155.065.  CONTRACTS WITH DEPARTMENT OF CRIMINAL

1-12     JUSTICE.  (a)  The commission is authorized to make contracts with

1-13     the Texas Department of Criminal Justice for the purchase of goods

1-14     and services for use by another state agency.

1-15           (b)  The Texas Department of Criminal Justice shall test

1-16     goods and services it sells under this section before delivery to

1-17     the extent necessary to ensure quality.  The department may enter

1-18     into a contract with a private or public entity to assist with

1-19     testing.

1-20           (c)  The commission shall make awards under this section

1-21     based on proposed goods and services meeting formal state

1-22     specifications developed by the commission or meeting commercial

1-23     specifications approved by the commission.

 2-1           SECTION 3.  Section 2155.068, Government Code, is amended to

 2-2     read as follows:

 2-3           Sec. 2155.068.  UNIFORM STANDARDS AND SPECIFICATIONS.

 2-4     (a)  The commission may coordinate uniform standards and

 2-5     specifications for goods purchased by the commission.  The

 2-6     commission by rule may adopt appropriate standards developed by a

 2-7     nationally recognized standards-making association as part of its

 2-8     specifications and standards program.

 2-9           (b)  The commission shall enlist the cooperation of other

2-10     state agencies in the establishment, maintenance, and revision of

2-11     uniform standards and specifications [and shall foster their use to

2-12     accomplish continuously the most efficient purchase of goods].

2-13           (c)  The commission shall review contracts administered by

2-14     the commission [and procedures] to ensure that all goods and

2-15     services meet contract specifications.

2-16           (d)  As part of the standards and specifications program, the

2-17     commission shall review contracts for opportunities to recycle

2-18     [recycling] waste produced at state buildings.

2-19           SECTION 4.  Section 2155.069, Government Code, is amended to

2-20     read as follows:

2-21           Sec. 2155.069.  TESTING AND INSPECTION.  (a)  The commission

2-22     may [shall] test and inspect goods and services purchased under a

2-23     contract administered by the commission [under a program] to ensure

2-24     compliance with specifications.

2-25           (b)  The commission may contract for testing under this

 3-1     section.

 3-2           (c)  The commission may, on request, test and inspect goods

 3-3     and services purchased by other state governmental entities on a

 3-4     cost recovery basis  [shall provide for testing and inspection of

 3-5     all costly purchases and may adopt rules necessary to carry out

 3-6     this duty].

 3-7           (d)  The commission may also test and inspect goods and

 3-8     services before they are purchased.  Other state agencies may test

 3-9     and inspect goods and services before purchase under standard

3-10     industry testing methods, or they may contract for testing.  The

3-11     commission may inform agencies about available private testing

3-12     facilities.

3-13           SECTION 5.  Subsections (a), (b), and (d), Section 2155.070,

3-14     Government Code, are amended to read as follows:

3-15           (a)  A state agency that determines that goods or services

3-16     received under a contract administered by the commission do not

3-17     meet specifications shall promptly notify the commission in writing

3-18     of the reasons for the determination.  The commission shall

3-19     immediately make its own determination of whether the goods and

3-20     services meet specifications.

3-21           (b)  The commission or a state agency, including an

3-22     institution of higher education, has the authority [has the sole

3-23     power] to determine that goods and services exempted from the

3-24     commission's purchasing authority meet or fail to meet

3-25     specifications.

 4-1           (d)  If the commission receives repeated complaints against a

 4-2     vendor, the commission shall remove the vendor's name and the

 4-3     vendor's goods and services from the commission's bidders list for

 4-4     not longer than one year.  If complaints resume after the vendor is

 4-5     reinstated on the bidders list, the commission may bar the vendor

 4-6     from participating in state contracts for a period under Section

 4-7     2155.077.

 4-8           SECTION 6.  Subchapter B, Chapter 2155, Government Code, is

 4-9     amended by adding Sections 2155.074 through 2155.082 to read as

4-10     follows:

4-11           Sec. 2155.074.  BEST VALUE STANDARD FOR PURCHASE OF GOODS OR

4-12     SERVICES.  (a)  For a purchase of goods and services under this

4-13     chapter, each state agency, including the commission, shall

4-14     purchase goods and services that provide the best value for the

4-15     state.

4-16           (b)  In determining the best value for the state, the

4-17     purchase price and whether the goods or services meet

4-18     specifications are the most important considerations.  However, the

4-19     commission or other state agency may, subject to Subsection (c) and

4-20     Section 2155.075, consider other relevant factors, including:

4-21                 (1)  installation costs;

4-22                 (2)  life cycle costs;

4-23                 (3)  the quality and reliability of the goods and

4-24     services;

4-25                 (4)  the delivery terms;

 5-1                 (5)  indicators of probable vendor performance under

 5-2     the contract such as past vendor performance, the vendor's

 5-3     financial resources and ability to perform, the vendor's experience

 5-4     or demonstrated capability and responsibility, and the vendor's

 5-5     ability to provide reliable maintenance agreements and support;

 5-6                 (6)  the cost of any employee training associated with

 5-7     a purchase;

 5-8                 (7)  the effect of a purchase on agency productivity;

 5-9     and

5-10                 (8)  other factors relevant to determining the best

5-11     value for the state in the context of a particular purchase.

5-12           (c)  A state agency shall consult with and receive approval

5-13     from the commission before considering factors other than price and

5-14     meeting specifications when the agency procures through competitive

5-15     bidding goods or services with a value that exceeds $100,000.

5-16           Sec. 2155.075.  REQUIREMENT TO SPECIFY VALUE FACTORS IN

5-17     REQUEST FOR BIDS OR PROPOSALS.  (a)  For a purchase made through

5-18     competitive bidding, the commission or other state agency making

5-19     the purchase must specify in the request for bids the factors other

5-20     than price that the commission or agency will consider in

5-21     determining which bid offers the best value for the state.

5-22           (b)  For a purchase made through competitive sealed

5-23     proposals, the commission or other state agency making the

5-24     purchase:

5-25                 (1)  must specify in the request for proposals the

 6-1     known factors other than price that the commission or agency will

 6-2     consider in determining which proposal offers the best value for

 6-3     the state; and

 6-4                 (2)  may concurrently inform each vendor that made a

 6-5     proposal on the contract of any additional factors the commission

 6-6     or agency will consider in determining which proposal offers the

 6-7     best value for the state if the commission or other agency

 6-8     determines after opening the proposals that additional factors not

 6-9     covered under Subdivision (1) are relevant in determining which

6-10     proposal offers the best value for the state.

6-11           Sec. 2155.076.  PROTEST PROCEDURES.  (a)  The commission and

6-12     each state agency by rule shall develop and adopt protest

6-13     procedures for resolving vendor protests relating to purchasing

6-14     issues.  An agency's rules must be consistent with the commission's

6-15     rules.  The rules must include standards for maintaining

6-16     documentation about the purchasing process to be used in the event

6-17     of a protest.

6-18           (b)  A state agency that is not subject to Chapter 2001 shall

6-19     provide public notice of its proposed and adopted protest rules and

6-20     provide a procedure for public comment on the proposed rules.

6-21           Sec. 2155.077.  BARRING VENDOR FROM PARTICIPATION IN STATE

6-22     CONTRACTS.  (a)  The commission may bar a vendor from participating

6-23     in state contracts that are subject to this subtitle, including

6-24     contracts for which purchasing authority is delegated to a state

6-25     agency, for:

 7-1                 (1)  substandard performance under a contract with the

 7-2     state or a state agency;

 7-3                 (2)  material misrepresentations in a bid or proposal

 7-4     to the state or a state agency or during the course of performing a

 7-5     contract with the state or a state agency;

 7-6                 (3)  fraud; or

 7-7                 (4)  breaching a contract with the state or a state

 7-8     agency.

 7-9           (b)  The commission shall bar a vendor from participating in

7-10     state contracts under this section for a period that is

7-11     commensurate with the seriousness of the vendor's action and the

7-12     damage to the state's interests.

7-13           (c)  The commission by rule shall:

7-14                 (1)  state generally the reasons for which a vendor may

7-15     be barred from participating in state contracts and the periods for

7-16     which the vendor may be barred; and

7-17                 (2)  prescribe the procedures under which the

7-18     commission will determine whether and for how long a vendor will be

7-19     barred.

7-20           Sec. 2155.078.  TRAINING AND CERTIFICATION OF STATE AGENCY

7-21     PURCHASING PERSONNEL.  (a)  The commission shall establish and

7-22     administer a system of training, continuing education, and

7-23     certification for state agency purchasing personnel.  The

7-24     commission may adopt rules to administer this section, including

7-25     rules relating to monitoring a certified purchaser's compliance

 8-1     with the continuing education requirements of this section.

 8-2           (b)  Except as provided by Subsection (n), all state agency

 8-3     purchasing personnel, including agencies exempted from the

 8-4     purchasing authority of the commission, must receive the training

 8-5     and continuing education to the extent required by rule of the

 8-6     commission.  A state agency employee who is required to receive the

 8-7     training may not participate in purchases by the employing agency

 8-8     unless the employee has received the required training or received

 8-9     equivalent training from a national association recognized by the

8-10     commission.  The equivalent training may count, as provided by

8-11     Subsection (k), toward the continuing education requirements.

8-12           (c)  The commission shall set and collect a fee from state

8-13     agencies that employ purchasing personnel.  The commission shall

8-14     set the fee in an amount that recovers the commission's costs under

8-15     this section.

8-16           (d)  The commission may provide training, continuing

8-17     education, and certification under this section to purchasing

8-18     personnel employed by a political subdivision or other public

8-19     entity of the state.  Political subdivision purchasing personnel

8-20     may receive, but are not required to receive, the training,

8-21     continuing education, or certification provided under this section.

8-22     The commission shall collect the fees described by Subsection (c)

8-23     for training, education, or certification under this subsection.

8-24           (e)  The commission may provide training and continuing

8-25     education under this section using its own personnel or through

 9-1     contracts with private entities.  The commission may also, by

 9-2     agreement with a public entity, use the services of persons

 9-3     employed by the public entity to provide training and continuing

 9-4     education under this section.

 9-5           (f)  The commission shall provide at least three levels of

 9-6     training under this section.

 9-7           (g)  The basic training level must include an introduction to

 9-8     contract purchasing methods, ethical issues affecting purchasing

 9-9     decisions, and instruction in any other processes and issues that

9-10     the commission considers appropriate for introductory purchasing

9-11     training.

9-12           (h)  The second training level must include advanced

9-13     instruction in formal and informal bidding methods, introduction to

9-14     negotiation methods, instruction in writing specifications, and

9-15     instruction in any other processes and issues that the commission

9-16     considers appropriate for the second level of purchasing training.

9-17           (i)  The third training level must include an introduction to

9-18     complex negotiations, instruction in the criteria for determining

9-19     which product or service offers the best value for the state, and

9-20     instruction in any other processes and issues that the commission

9-21     considers appropriate for advanced purchasing training.

9-22           (j)  The commission may prescribe the circumstances under

9-23     which a state agency may delegate to a certified purchaser

9-24     signature purchasing authority to approve purchase orders.

9-25           (k)  The commission shall require 24 hours of continuing

 10-1    education each year to maintain a certification level.  The

 10-2    commission may allow attendance at equivalent certification

 10-3    training recognized by the commission to count toward up to 16

 10-4    hours of the continuing education requirement.

 10-5          (l)  The commission's prerequisites for receiving a level-two

 10-6    purchaser certification must include completion of the basic

 10-7    training level, passage of a written examination, and a minimum

 10-8    number of years of purchasing experience prescribed by the

 10-9    commission.

10-10          (m)  The commission's prerequisites for receiving a

10-11    level-three purchaser certification must include completion of the

10-12    second training level, passage of a written and an oral

10-13    examination, and a minimum of three years of purchasing experience.

10-14          (n)  This section does not apply to a medical and dental unit

10-15    to which Section 51.933, Education Code, as added by Chapter 736,

10-16    Acts of the 74th Legislature, 1995, applies or to an institution to

10-17    which Section 73.115, Education Code, applies.

10-18          Sec. 2155.079.  BUYING UNDER CONTRACT ESTABLISHED BY AGENCY

10-19    OTHER THAN COMMISSION.  (a)  The commission shall adopt rules

10-20    specifying the circumstances under which it is advantageous for the

10-21    state to allow a state agency to purchase goods or services under a

10-22    contract made by another state agency other than the commission.

10-23          (b)  If commission rules allow other agencies to make

10-24    purchases under a contract entered into by an agency using

10-25    delegated purchasing authority, the agency purchasing under

 11-1    delegated authority may offer the goods or services available under

 11-2    the contract to other agencies only if the agency first:

 11-3                (1)  establishes that the goods or services being

 11-4    offered under its contract are not available under a contract

 11-5    administered by the commission; and

 11-6                (2)  informs the commission of the terms of the

 11-7    contract and the capabilities of the vendor.

 11-8          Sec. 2155.080.  ADVISORY COMMITTEE ON PROCUREMENT.  (a)  The

 11-9    commission may establish an advisory committee on procurement.  The

11-10    purpose of the committee is to represent before the commission the

11-11    state agency purchasing community and the political subdivisions

11-12    that use the commission's purchasing services.

11-13          (b)  The committee is composed of officers or employees from

11-14    the commission, from state agencies, including institutions of

11-15    higher education, and from political subdivisions who are invited

11-16    by the commission to serve on the committee.  The commission shall

11-17    invite officers and employees who are experienced in public

11-18    purchasing, in public finance, or who possess other appropriate

11-19    expertise to serve on the committee.  Service on the committee is

11-20    an additional duty of the member's public office or employment.

11-21    Article 6252-33, Revised Statutes, does not apply to the size or

11-22    composition of the committee.  The commission shall set staggered

11-23    terms for the members of the committee.

11-24          (c)  The committee may establish its own rules of operation.

11-25          (d)  The committee shall recommend improvements in commission

 12-1    or state agency purchasing practices to the commission.  The

 12-2    committee shall review and comment on findings and recommendations

 12-3    related to purchasing that are made by state agency internal

 12-4    auditors or by the state auditor.

 12-5          Sec. 2155.081.  VENDOR ADVISORY COMMITTEE.  (a)  The

 12-6    commission may establish a vendor advisory committee.  The purpose

 12-7    of the committee is to represent before the commission the vendor

 12-8    community, to provide information to vendors, and to obtain vendor

 12-9    input on state procurement practices.

12-10          (b)  The committee is composed of employees from the

12-11    commission and vendors who have done business with the state who

12-12    are invited by the commission to serve on the committee.  The

12-13    commission shall invite a cross-section of the vendor community to

12-14    serve on the committee, inviting both large and small businesses

12-15    and vendors who provide a variety of different goods and services

12-16    to the state.  Article 6252-33, Revised Statutes, does not apply to

12-17    the size or composition of the committee.  The commission shall set

12-18    staggered terms for the members of the committee.

12-19          (c)  The committee may establish its own rules of operation

12-20    but shall post notice of and hold its meetings in accordance with

12-21    Chapter 551.

12-22          Sec. 2155.082.  PROVIDING CERTAIN PURCHASING SERVICES ON

12-23    FEE-FOR-SERVICE BASIS.  (a)  The commission may provide open market

12-24    purchasing services on a fee-for-service basis for state agency

12-25    purchases that are delegated to an agency under Section 2155.131,

 13-1    2155.132, 2155.133, or 2157.121 or that are exempted from the

 13-2    purchasing authority of the commission.  The commission shall set

 13-3    the fees in an amount that recovers the commission's costs in

 13-4    providing the services.

 13-5          (b)  The commission shall publish a schedule of its fees for

 13-6    services that are subject to this section.  The schedule must

 13-7    include the commission's fees for:

 13-8                (1)  reviewing bid and contract documents for clarity,

 13-9    completeness, and compliance with laws and rules;

13-10                (2)  developing and transmitting invitations to bid;

13-11                (3)  receiving and tabulating bids;

13-12                (4)  evaluating and determining which bidder offers the

13-13    best value to the state;

13-14                (5)  creating and transmitting purchase orders; and

13-15                (6)  participating in agencies' request for proposal

13-16    processes.

13-17          SECTION 7.  Section 2155.132, Government Code, is amended to

13-18    read as follows:

13-19          Sec. 2155.132.  PURCHASES LESS THAN SPECIFIED MONETARY

13-20    AMOUNT.  (a)  A state agency is delegated the authority to purchase

13-21    goods and services if the purchase does not exceed $15,000

13-22    [$5,000].  If the commission determines that a state agency has not

13-23    followed the commission's rules or the laws related to the

13-24    delegated purchases, the commission shall report its determination

13-25    to the governor, lieutenant governor, speaker of the house of

 14-1    representatives, and Legislative Budget Board.  [The agency may,

 14-2    however, use the commission's services for those purchases.]

 14-3          (b)  The commission by rule may delegate to a state agency

 14-4    the authority to purchase goods and services if the purchase

 14-5    exceeds $15,000 [$5,000].  In delegating purchasing authority under

 14-6    this subsection or Section 2155.131, the commission shall consider

 14-7    factors relevant to a state agency's ability to perform purchasing

 14-8    functions, including:

 14-9                (1)  the capabilities of the agency's purchasing staff

14-10    and the existence of automated purchasing tools at the agency;

14-11                (2)  the certification levels held by the agency's

14-12    purchasing personnel;

14-13                (3)  the results of the commission's procurement review

14-14    audits of an agency's purchasing practices; and

14-15                (4)  whether the agency has adopted and published

14-16    protest procedures consistent with those of the commission as part

14-17    of its purchasing rules.

14-18          (c)  The commission shall monitor the purchasing practices of

14-19    state agencies that are making delegated purchases under Subsection

14-20    (b) or Section 2155.131 to ensure that the certification levels of

14-21    the agency's purchasing personnel and the quality of the agency's

14-22    purchasing practices continue to warrant the amount of delegated

14-23    authority provided by the commission to the agency.  The commission

14-24    may revoke for cause all or part of the purchasing authority that

14-25    the commission delegated to a state agency.  The commission shall

 15-1    adopt rules to administer this subsection.

 15-2          (d) [(c)]  The commission by rule:

 15-3                (1)  shall prescribe procedures for a delegated

 15-4    purchase; and

 15-5                (2)  shall prescribe procedures by which agencies may

 15-6    use the commission's services for delegated purchases, in

 15-7    accordance with Section 2155.082 [may delegate to the comptroller

 15-8    the commission's authority under Subchapter F to audit purchases

 15-9    and purchase information if the purchases do not exceed $500 or a

15-10    greater amount prescribed by the commission].

15-11          (e) [(d)]  Competitive bidding, whether formal or informal,

15-12    is not required for a purchase by a state agency if the purchase

15-13    does not exceed $2,000 [$1,000], or a greater amount prescribed by

15-14    commission rule.

15-15          (f) [(e)]  Goods purchased under this section may not

15-16    include:

15-17                (1)  an item for which a contract has been awarded

15-18    under the contract purchase procedure, unless the quantity

15-19    purchased is less than the minimum quantity specified in the

15-20    contract;

15-21                (2)  an item required by statute to be purchased from a

15-22    particular source; or

15-23                (3)  a scheduled item that has been designated for

15-24    purchase by the commission.

15-25          (g) [(f)]  A large purchase may not be divided into small lot

 16-1    purchases to meet the dollar limits prescribed by this section.

 16-2    The commission may not require that unrelated purchases be combined

 16-3    into one purchase order to exceed the dollar limits prescribed by

 16-4    this section.

 16-5          (h) [(g)]  A state agency making a purchase under this

 16-6    section for which competitive bidding is required must:

 16-7                (1)  attempt to obtain at least three competitive bids

 16-8    from sources listed on the master bidders list that normally offer

 16-9    for sale the goods being purchased; and

16-10                (2)  comply with Subchapter E.

16-11          SECTION 8.  Subsection (b), Section 2155.134, Government

16-12    Code, is amended to read as follows:

16-13          (b)  The commission shall adopt rules that allow institutions

16-14    of higher education or state agencies to make purchases [purchases

16-15    to be made] through group purchasing programs except when the

16-16    commission determines within a reasonable time after receiving

16-17    notice of a particular purchase that costs more than $100,000 that

16-18    a better value [lower price] is available through the commission.

16-19          SECTION 9.  Section 2155.138, Government Code, is amended to

16-20    read as follows:

16-21          Sec. 2155.138.  EXEMPTION OF GOODS OR SERVICES OF BLIND OR

16-22    VISUALLY IMPAIRED PERSONS.  (a)  The competitive bidding provisions

16-23    of this chapter do not apply to a state purchase of goods or

16-24    services that:

16-25                (1)  are made or provided by blind or visually impaired

 17-1    persons;

 17-2                (2)  are offered for sale to a state agency through

 17-3    efforts made under law by the Texas Council on Purchasing from

 17-4    People with Disabilities [Committee on Purchases of Products and

 17-5    Services of Blind and Severely Disabled Persons];

 17-6                (3)  meet state specifications for quantity, [and]

 17-7    quality, delivery, and life cycle costs; and

 17-8                (4)  cost not more than the fair market price of

 17-9    similar items.

17-10          (b)  The council shall test the goods and services to the

17-11    extent necessary to ensure quality.  The council may enter into a

17-12    contract with a private or public entity to assist with testing.

17-13          (c)  The commission shall make awards under this section

17-14    based on proposed goods and services meeting formal state

17-15    specifications developed by the commission or meeting commercial

17-16    specifications approved by the commission.

17-17          SECTION 10.  Section 2155.263, Government Code, is amended to

17-18    read as follows:

17-19          Sec. 2155.263.  COMMISSION TO MAINTAIN CENTRALIZED MASTER

17-20    BIDDERS LIST.  (a)  The commission shall maintain a centralized

17-21    master bidders list and annually register on the list the name and

17-22    address of each vendor that applies for registration under rules

17-23    adopted under this subchapter.  The commission may include other

17-24    relevant vendor information on the list.

17-25          (b)  The commission shall maintain the centralized master

 18-1    bidders list in a manner that facilitates a state agency's

 18-2    solicitation of vendors that serve the agency's geographic area.

 18-3          (c)  The centralized master bidders list shall be used for

 18-4    all available procurement processes authorized by this subtitle and

 18-5    shall also be used to the fullest extent possible by state agencies

 18-6    that make purchases exempt from the commission's purchasing

 18-7    authority.

 18-8          SECTION 11.  Section 2155.268, Government Code, is amended by

 18-9    adding Subsection (d) to read as follows:

18-10          (d)  A state agency may purchase goods and services from a

18-11    vendor who is not on the bidders list if the purchase price does

18-12    not exceed $5,000.

18-13          SECTION 12.  Section 2155.441, Government Code, is amended to

18-14    read as follows:

18-15          Sec. 2155.441.  PREFERENCE FOR PRODUCTS OF PERSONS WITH

18-16    MENTAL RETARDATION OR PHYSICAL DISABILITIES.  (a)  The products of

18-17    workshops, organizations, or corporations whose primary purpose is

18-18    training and employing individuals having mental retardation or a

18-19    physical disability shall be given preference if they meet state

18-20    specifications regarding quantity, quality, delivery, life cycle

18-21    costs, and price.

18-22          (b)  The workshops, organizations, or corporations shall test

18-23    the products to the extent necessary to ensure quality in

18-24    accordance with Section 2155.069 and may enter into contracts with

18-25    a private or public entity to assist with testing.

 19-1          (c)  The commission is not required to purchase products

 19-2    under this section that do not meet formal state specifications

 19-3    developed by the commission or meet commercial specifications

 19-4    approved by the commission.

 19-5          SECTION 13.  Section 2156.005, Government Code, is amended to

 19-6    read as follows:

 19-7          Sec. 2156.005.  BID SUBMISSION AND OPENING; PUBLIC

 19-8    INSPECTION.  (a)  A bidder must submit a sealed bid to the

 19-9    commission or to the state agency making a purchase.  The bid must

19-10    be identified on the envelope as a bid.

19-11          (b)  The commission or other state agency making a purchase

19-12    shall open bids at the time and place stated in the invitation to

19-13    bid.

19-14          (c)  [The state auditor or a member of the state auditor's

19-15    staff may be present at a bid opening.]

19-16          [(d)]  The commission shall keep a tabulation of all bids

19-17    received by the commission available for public inspection under

19-18    rules adopted by the commission.  State agencies making purchases

19-19    shall adopt the commission's rules related to bid opening and

19-20    tabulation.

19-21          SECTION 14.  Sections 2156.007 through 2156.010, Government

19-22    Code, are amended to read as follows:

19-23          Sec. 2156.007.  CONTRACT AWARD.  (a)  The commission or other

19-24    state agency making a purchase shall award a contract to the bidder

19-25    offering the best value for the state while [submitting the lowest

 20-1    and best bid] conforming to the specifications required.

 20-2          (b)  In determining the [lowest and best] bidder offering the

 20-3    best value, the commission or other state agency may consider the

 20-4    safety record of the bidder, the entity represented by the bidder,

 20-5    and any person acting for the represented entity only if:

 20-6                (1)  the commission or other state agency has adopted a

 20-7    written definition and criteria for accurately determining the

 20-8    safety record of a bidder; and

 20-9                (2)  the commission or state agency provided [gave]

20-10    notice in the bid specifications to prospective bidders that a

20-11    bidder's safety record may be considered in determining the [lowest

20-12    and best] bidder offering the best value for the state.

20-13          (c)  A determination of a bidder's safety record may not be

20-14    arbitrary and capricious.

20-15          (d)  In determining the [lowest and best] bidder offering the

20-16    best value, in addition to price the commission or other state

20-17    agency shall consider:

20-18                (1)  the quality and availability of the goods or

20-19    contractual services and their adaptability to the use required;

20-20                (2)  the [number and] scope of conditions attached to

20-21    the bid;

20-22                (3)  the bidder's ability, capacity, and skill to

20-23    perform the contract or provide the service required;

20-24                (4)  the bidder's ability to perform the contract or

20-25    provide the service promptly, or in the time required, without

 21-1    delay or interference;

 21-2                (5)  the bidder's character, responsibility, integrity,

 21-3    [reputation,] and experience or demonstrated capability;

 21-4                (6)  the quality of performance of previous contracts

 21-5    or services;

 21-6                (7)  the bidder's previous and existing compliance with

 21-7    laws relating to the contract or service;

 21-8                (8)  the bidder's previous or existing noncompliance

 21-9    with specification requirements relating to the time of submission

21-10    of specified information, including samples, models, drawings, or

21-11    certificates;

21-12                (9)  the sufficiency of the bidder's financial

21-13    resources and ability to perform the contract or provide the

21-14    service; and

21-15                (10)  the bidder's ability to provide future

21-16    maintenance, repair parts, and service for the use of the

21-17    contract's subject.

21-18          Sec. 2156.008.  REJECTION OF BIDS.  (a)  The commission or

21-19    other state agency making the purchase shall reject a bid in which

21-20    there is a material failure to comply with specification

21-21    requirements.

21-22          (b)  The commission or other state agency may reject all bids

21-23    or parts of bids if the rejection serves the state's interest.

21-24          Sec. 2156.009.  REASONS FOR AWARD.  On award of a contract,

21-25    the division of the commission responsible for purchasing or the

 22-1    state agency making the purchase shall prepare and file with other

 22-2    records relating to the transaction a statement of the reasons for

 22-3    making the award to the successful bidder and the factors

 22-4    considered in determining which bidder offered the best value for

 22-5    the state [the lowest and best bid].

 22-6          Sec. 2156.010.  TIE BIDS.  In the case of tie bids, the value

 22-7    and cost to the state [quality and service] being equal, a contract

 22-8    shall be awarded under commission rules.

 22-9          SECTION 15.  Sections 2156.062 and 2156.063, Government Code,

22-10    are amended to read as follows:

22-11          Sec. 2156.062.  MINIMUM NUMBER AND EVALUATION OF BIDS.  An

22-12    open market purchase shall, to the extent possible, be:

22-13                (1)  based on at least three competitive bids; and

22-14                (2)  awarded to the [lowest and best] bidder offering

22-15    the best value for the state in accordance with standards set forth

22-16    in Chapters 2155, 2156, 2157, and 2158.

22-17          Sec. 2156.063.  SOLICITATION OF BIDS.  The commission and

22-18    each state agency making a purchase shall solicit bids under this

22-19    subchapter by direct mail, telephone, or telegraph.

22-20          SECTION 16.  Sections 2156.065 and 2156.066, Government Code,

22-21    are amended to read as follows:

22-22          Sec. 2156.065.  AGENCY REVIEW OF BIDS.  (a)  On the request

22-23    of a state agency to review the bids on a purchase administered by

22-24    the commission, the commission shall send or make available to the

22-25    requesting agency copies of each bid received and the commission's

 23-1    recommended award.

 23-2          (b)  If, after review of the bids and evaluation of the

 23-3    quality of goods or services offered in the bids, the state agency

 23-4    determines that the bid selected by the commission does [is] not

 23-5    offer the best value for the state [the lowest and best bid], the

 23-6    agency may file with the commission a written recommendation that

 23-7    the award be made to the bidder who, according to the agency's

 23-8    determination, offers the best value for the state [made the lowest

 23-9    and best bid].  The agency recommendation must include a

23-10    justification of the agency's determination.

23-11          (c)  The commission shall consider, but is not bound by, the

23-12    agency recommendation in making the award.

23-13          Sec. 2156.066.  STATEMENT OF REASONS FOR AWARD.  The division

23-14    of the commission responsible for purchasing or the state agency

23-15    making a purchase shall prepare and file with other records

23-16    relating to a transaction under this subchapter a statement of the

23-17    reasons for placing an order with a successful bidder for the

23-18    transaction and the factors considered in determining the [lowest

23-19    and best] bid offering the best value for the state [for the

23-20    transaction].

23-21          SECTION 17.  Subchapter C, Chapter 2156, Government Code, is

23-22    amended to read as follows:

23-23              SUBCHAPTER C.  COMPETITIVE SEALED PROPOSALS FOR

23-24                ACQUISITION OF [CERTAIN] GOODS AND SERVICES

23-25          Sec. 2156.121.  USE OF COMPETITIVE SEALED PROPOSALS [ELIGIBLE

 24-1    ACQUISITIONS].  (a)  The commission or other state agency may

 24-2    follow a procedure using competitive sealed proposals to acquire[:]

 24-3                [(1)]  goods [having an acquisition cost of $1 million

 24-4    or more;] or

 24-5                [(2)  routine] services if [having an acquisition cost

 24-6    of $100,000 or more.]

 24-7          [Sec. 2156.122.  PURCHASE AUTHORITY LIMITED TO COMMISSION.

 24-8    Only the commission may use competitive sealed proposals under this

 24-9    subchapter to acquire goods or services.  The commission may not

24-10    delegate this authority to a state agency.]

24-11          [Sec. 2156.123.  DETERMINATION REGARDING COMPETITIVE BIDDING.

24-12    To acquire goods or services under this subchapter,] the commission

24-13    determines [must first determine in an open meeting] that

24-14    competitive sealed bidding and informal competitive bidding for the

24-15    purchase or type of purchase are not practical or are

24-16    disadvantageous to the state.

24-17          (b)  A state agency shall send its proposal specifications

24-18    and criteria to the commission for approval or request the

24-19    commission to develop the proposal specifications and criteria.

24-20          Sec. 2156.122 [2156.124].  SOLICITATION OF PROPOSALS.  The

24-21    commission or other state agency shall:

24-22                (1)  solicit proposals under this subchapter by a

24-23    request for proposals; and

24-24                (2)  give public notice of a request for proposals in

24-25    the manner provided for requests for bids under Subchapter B.

 25-1          [Sec. 2156.125.  DEVELOPMENT OF SPECIFICATIONS.  The

 25-2    commission shall consult with the appropriate personnel of a

 25-3    requisitioning agency to develop the specifications for a request

 25-4    for proposals under this subchapter.]

 25-5          Sec. 2156.123 [2156.126].  OPENING AND FILING OF PROPOSALS;

 25-6    PUBLIC INSPECTION.  (a)  The commission or other state agency shall

 25-7    avoid disclosing the contents of each proposal on opening the

 25-8    proposal and during negotiations with competing offerors.

 25-9          (b)  The commission or other state agency shall file each

25-10    proposal in a register of proposals, which, after a contract is

25-11    awarded, is open for public inspection unless the register contains

25-12    information that is excepted from required disclosure [as an open

25-13    record] under Subchapter C, Chapter 552.

25-14          Sec. 2156.124 [2156.127].  DISCUSSION AND REVISION OF

25-15    PROPOSALS.  (a)  As provided in a request for proposals and under

25-16    rules adopted by the commission, the commission or other state

25-17    agency may discuss acceptable or potentially acceptable proposals

25-18    with offerors to assess an offeror's ability to meet the

25-19    solicitation requirements.  When the commission is managing the

25-20    request for proposals process, it [and] shall invite a

25-21    requisitioning agency to participate in discussions conducted under

25-22    this section.

25-23          (b)  After receiving a proposal but before making an award,

25-24    the commission or other state agency may permit the offeror to

25-25    revise the proposal to obtain the best final offer.

 26-1          (c)  The commission or other state agency may not disclose

 26-2    information derived from proposals submitted from competing

 26-3    offerors in conducting discussions under this section.

 26-4          (d)  The commission or other state agency shall provide each

 26-5    offeror an equal opportunity to discuss and revise proposals.

 26-6          Sec. 2156.125 [2156.128].  CONTRACT AWARD.  (a)  The

 26-7    commission or other state agency shall make a written award of a

 26-8    contract to the offeror whose proposal offers [is] the best value

 26-9    for [most advantageous to] the state, considering price, past

26-10    vendor performance, vendor experience or demonstrated capability,

26-11    and the evaluation factors in the request for proposals.

26-12          (b)  The commission or other state agency shall refuse all

26-13    offers if none of the offers submitted is acceptable.

26-14          (c)  The commission or other state agency shall determine

26-15    which proposal offers the best value for the state in accordance

26-16    with Sections 2155.074 and 2155.075.

26-17          (d)  The commission or other state agency shall state in

26-18    writing in the contract file the reasons for making an award.

26-19          Sec. 2156.126 [2156.129].  ADOPTION OF RULES; STATE AGENCY

26-20    ASSISTANCE.  The commission may adopt rules and request assistance

26-21    from other state agencies to perform its responsibilities under

26-22    this subchapter.

26-23          Sec. 2156.127 [2156.130].  COMPETITIVE SEALED PROPOSALS FOR

26-24    TELECOMMUNICATIONS AND AUTOMATED INFORMATION SYSTEMS NOT AFFECTED.

26-25    This subchapter does not affect Subchapter C, Chapter 2157.

 27-1          SECTION 18.  Section 2157.003, Government Code, is amended to

 27-2    read as follows:

 27-3          Sec. 2157.003.  DETERMINING BEST VALUE FOR PURCHASES OF

 27-4    AUTOMATED INFORMATION SYSTEMS.  "Best value" for purposes of this

 27-5    chapter means the lowest overall cost of an automated information

 27-6    system.  In determining the lowest overall cost for a purchase or

 27-7    lease of an automated information system under this chapter, the

 27-8    commission or a state agency shall consider factors including:

 27-9                (1)  the purchase price;

27-10                (2)  the compatibility to facilitate the exchange of

27-11    existing data;

27-12                (3)  the capacity for expanding and upgrading to more

27-13    advanced levels of technology;

27-14                (4)  quantitative reliability factors;

27-15                (5)  the level of training required to bring persons

27-16    using the system to a stated level of proficiency;

27-17                (6)  the technical support requirements for the

27-18    maintenance of data across a network platform and the management of

27-19    the network's hardware and software; [and]

27-20                (7)  the compliance with applicable Department of

27-21    Information Resources statewide standards validated by criteria

27-22    adopted by the department by rule; and

27-23                (8)  applicable factors listed in Sections 2155.074 and

27-24    2155.075.

27-25          SECTION 19.  Subchapter A, Chapter 2157, Government Code, is

 28-1    amended by adding Section 2157.005 to read as follows:

 28-2          Sec. 2157.005.  TECHNOLOGY ACCESS CLAUSE.  (a)  The

 28-3    commission and the Department of Information Resources, in

 28-4    consultation with other state agencies and after public comment,

 28-5    shall develop a technology access clause to be included in all

 28-6    contracts entered into by the state or state agencies.

 28-7          (b)  The clause shall clearly state, as a condition for the

 28-8    expenditure of state funds in the purchase of an automated

 28-9    information system, that the technology:

28-10                (1)  will provide equivalent access for effective use

28-11    by both visual and nonvisual means;

28-12                (2)  will present information, including prompts used

28-13    for interactive communications, in formats intended for both visual

28-14    and nonvisual use; and

28-15                (3)  can be integrated into networks for obtaining,

28-16    retrieving, and disseminating information used by individuals who

28-17    are not blind or visually impaired.

28-18          (c)  This section applies to all contracts made by state

28-19    agencies that involve the purchase of an automated information

28-20    system, without regard to:

28-21                (1)  the source of funds used to make the purchase;

28-22                (2)  whether the purchase is made under delegated

28-23    purchasing authority; or

28-24                (3)  whether the purchase is made under the authority

28-25    of this subtitle or other law.

 29-1          SECTION 20.  Subchapter B, Chapter 2157, Government Code, is

 29-2    amended by adding Section 2157.0611 to read as follows:

 29-3          Sec. 2157.0611.  REQUIREMENT TO EVALUATE THREE PROPOSALS WHEN

 29-4    POSSIBLE.  A catalogue purchase or lease shall, when possible, be

 29-5    based on an evaluation of at least three catalogue proposals made

 29-6    to the commission or other state agency by qualified information

 29-7    systems vendors.  If at least three catalogue proposals are not

 29-8    evaluated by the commission or other state agency before the

 29-9    purchase or lease is made, the commission or other agency shall

29-10    document the reasons for that fact before making the purchase or

29-11    lease under Section 2157.063.

29-12          SECTION 21.  Sections 2157.121 through 2157.125, Government

29-13    Code, are amended to read as follows:

29-14          Sec. 2157.121.  ACQUISITION THROUGH COMPETITIVE SEALED

29-15    PROPOSALS.  (a)  The commission or other state agency may acquire a

29-16    telecommunications device, system, or service or an automated

29-17    information system by using competitive sealed proposals if the

29-18    commission determines [by rule] that competitive sealed bidding and

29-19    informal competitive bidding are not practical or are

29-20    disadvantageous to the state.

29-21          (b)  A state agency shall send its proposal specifications

29-22    and criteria to the commission for approval or request the

29-23    commission to develop the proposal specifications and criteria.

29-24          Sec. 2157.122.  SOLICITATION OF PROPOSALS; PUBLIC NOTICE.

29-25    The commission or other state agency shall:

 30-1                (1)  solicit proposals under this subchapter by a

 30-2    request for proposals; and

 30-3                (2)  give public notice of the request in the manner

 30-4    provided for requests for bids under Subchapter B, Chapter 2156.

 30-5          Sec. 2157.123.  OPENING AND FILING PROPOSALS; PUBLIC

 30-6    INSPECTION.  (a)  The commission or other state agency shall avoid

 30-7    disclosing the contents of each proposal on opening the proposal

 30-8    and during negotiations with competing offerors.

 30-9          (b)  The commission or other state agency shall file each

30-10    proposal in a register of proposals, which, after a contract is

30-11    awarded, is open for public inspection unless the register contains

30-12    information that is excepted from required disclosure [as an open

30-13    record] under Subchapter C, Chapter 552.

30-14          Sec. 2157.124.  DISCUSSION AND REVISION OF PROPOSAL.  (a)  As

30-15    provided by a request for proposals and under commission rules, the

30-16    commission or other state agency may discuss an acceptable or

30-17    potentially acceptable proposal with an offeror to assess the

30-18    offeror's ability to meet the solicitation requirements.  When the

30-19    commission is managing the request for proposals process, it [and]

30-20    shall invite a requisitioning agency to participate in discussions

30-21    conducted under this section.

30-22          (b)  After receiving a proposal but before making an award,

30-23    the commission or other state agency may permit an offeror to

30-24    revise a proposal to obtain the best final offer.

30-25          (c)  The commission or other state agency may not disclose

 31-1    information derived from a proposal submitted by a competing

 31-2    offeror in conducting discussions under this section.

 31-3          (d)  The commission or other state agency shall provide each

 31-4    offeror an equal opportunity to discuss and revise proposals.

 31-5          Sec. 2157.125.  CONTRACT AWARD; FACTORS CONSIDERED.  (a)  The

 31-6    commission or other state agency shall make a written award of a

 31-7    purchase or lease to the offeror whose proposal under this

 31-8    subchapter offers [is] the best value for [most advantageous to]

 31-9    the state, considering price, past vendor performance, vendor

31-10    experience or demonstrated capability, and the evaluation factors

31-11    in the request for proposals.

31-12          (b)  The commission or other state agency shall refuse all

31-13    offers if no offer submitted is acceptable.

31-14          (c)  In determining which [whether a] proposal under this

31-15    subchapter offers the best value for [is most advantageous to] the

31-16    state, the commission or other state agency shall, when applicable

31-17    and subject to Sections 2155.074 and 2155.075, consider factors

31-18    including:

31-19                (1)  the installation cost;

31-20                (2)  the overall life of the system or equipment;

31-21                (3)  the cost of acquisition, operation, and

31-22    maintenance of hardware included with, associated with, or required

31-23    for the system or equipment during the state's ownership or lease;

31-24                (4)  the cost of acquisition, operation, and

31-25    maintenance of software included with, associated with, or required

 32-1    for the system or equipment during the state's ownership or lease;

 32-2                (5)  the estimated cost of other supplies needed

 32-3    because of the acquisition;

 32-4                (6)  the estimated cost of employee training needed

 32-5    because of the acquisition;

 32-6                (7)  the estimated cost of necessary additional

 32-7    permanent employees because of the acquisition; and

 32-8                (8)  the estimated increase in employee productivity

 32-9    because of the acquisition.

32-10          (d)  The commission or other state agency shall state in

32-11    writing in the contract file the reasons for making an award.

32-12          SECTION 22.  Section 2101.038, Government Code, is amended to

32-13    read as follows:

32-14          Sec. 2101.038.  DUTIES OF STATE AUDITOR.  The state auditor,

32-15    when reviewing the operation of a state agency, shall audit for

32-16    compliance with the uniform statewide accounting system, the

32-17    comptroller's rules, and the Legislative Budget Board's performance

32-18    and workload measures.  The state auditor shall also audit state

32-19    agencies that make purchases that are exempted from the purchasing

32-20    authority of the General Services Commission or that make purchases

32-21    under delegated purchasing authority for compliance with applicable

32-22    provisions of Subtitle D, except that this section does not require

32-23    the state auditor to audit purchases made under Section 51.933,

32-24    Education Code, as added by Chapter 736, Acts of the 74th

32-25    Legislature, 1995, or made under Section 73.115, Education Code.

 33-1    The state auditor shall notify the project advisory committee, the

 33-2    comptroller, the governor, the lieutenant governor, the speaker of

 33-3    the house of representatives, and the Legislative Budget Board as

 33-4    soon as practicable when a state agency is not in compliance.

 33-5          SECTION 23.  Section 447.008, Government Code, is amended by

 33-6    amending Subsections (b) and (d) and adding Subsections (f), (g),

 33-7    and (h) to read as follows:

 33-8          (b)  Using available state, federal, or oil overcharge funds,

 33-9    the energy management center may assist state agencies and

33-10    institutions of higher education in analyzing and negotiating rates

33-11    for electricity and natural gas supplies from locally certificated

33-12    electric suppliers, natural gas suppliers, or state-owned energy

33-13    resources, including transportation charges for natural gas.  The

33-14    provisions of this section shall not be construed to empower the

33-15    energy management center to negotiate rates for natural gas

33-16    supplies on behalf of state agencies or institutions but rather to

33-17    provide technical assistance as needed.

33-18          (d)  Any state agency or institution of higher education with

33-19    expertise in rate analysis, negotiation, or any other matter

33-20    related to the procurement of electricity and natural gas supplies

33-21    from locally certificated electric suppliers, natural gas

33-22    suppliers, or state-owned energy resources may assist the energy

33-23    management center whenever practicable. The attorney general on

33-24    request shall assist the energy management center and other state

33-25    agencies and institutions of higher education in negotiating rates

 34-1    for electricity and other terms of electric utility service.

 34-2          (f)  The energy management center on request may negotiate

 34-3    rates for electricity and other terms of electric utility service

 34-4    for a state agency or institution of higher education.  The energy

 34-5    management center may also negotiate the rates and the other terms

 34-6    of service for a group of agencies and institutions together in a

 34-7    single contract.

 34-8          (g)  The energy management center shall analyze the rates for

 34-9    electricity charged to and the amount of electricity used by state

34-10    agencies and institutions of higher education to determine ways the

34-11    state could obtain lower rates and use less electricity.  State

34-12    agencies, including the Public Utility Commission of Texas, and

34-13    institutions of higher education shall assist the energy management

34-14    center in obtaining the information the center requires to perform

34-15    its analysis.

34-16          (h)  The energy management center and the attorney general

34-17    shall cooperate in monitoring efforts to deregulate the electric

34-18    utility industry and in reporting on the ways in which deregulation

34-19    would affect state government as a purchaser of electricity.  The

34-20    energy management center, represented by the  attorney general, may

34-21    intervene in proceedings before the Public Utility Commission of

34-22    Texas that are related to deregulating all or part of the electric

34-23    utility industry to represent the interests of state government as

34-24    a purchaser of electricity in those proceedings.

34-25          SECTION 24.  Subsection (a), Section 496.051, Government

 35-1    Code, is amended to read as follows:

 35-2          (a)  The department shall comply with any special purchasing

 35-3    procedures requiring competitive review under Subtitle D, Title 10

 35-4    [the State Purchasing and General Services Act (Article 601b,

 35-5    Vernon's Texas Civil Statutes)].  The department shall test the

 35-6    goods and services that it purchases in accordance with Section

 35-7    2155.069 and may enter into a contract with a private or public

 35-8    entity to assist with testing.

 35-9          SECTION 25.  Section 122.007, Human Resources Code, is

35-10    amended to read as follows:

35-11          Sec. 122.007.  FAIR MARKET PRICE; PURCHASING PROCEDURES.

35-12    (a)  The council shall determine the fair market price of all

35-13    products and services manufactured or provided by persons with

35-14    disabilities and offered for sale to the various agencies and

35-15    departments of the state and its political subdivisions by a

35-16    community rehabilitation program.  The council shall ensure that

35-17    the products and services offered for sale offer the best value for

35-18    the state or a political subdivision.

35-19          (b)  A subcommittee composed of three council members

35-20    appointed by the presiding officer shall review the data used to

35-21    determine fair market price and shall make recommendations to the

35-22    council concerning fair market price for the products and services

35-23    and offering the best value to customers.

35-24          (c)  The council shall revise the prices periodically to

35-25    reflect changing market conditions.

 36-1          (d)  Before offering for sale products and services

 36-2    manufactured or provided by persons with disabilities to state

 36-3    agencies and political subdivisions, the council shall test the

 36-4    goods and services in accordance with Section 2155.069, Government

 36-5    Code, to the extent necessary to ensure quality.  The council may

 36-6    enter into a contract with a private or public entity to assist

 36-7    with testing.  The commission shall make awards under this section

 36-8    based  on proposed goods and services meeting formal state

 36-9    specifications developed by the commission or meeting commercial

36-10    specifications approved by the commission.

36-11          (e)  Requisitions for products and services required by state

36-12    agencies are processed by the commission according to rules

36-13    established by the commission.

36-14          SECTION 26.  Section 1.034, Public Utility Regulatory Act of

36-15    1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended

36-16    to read as follows:

36-17          Sec. 1.034.  ORDERS; TRANSCRIPT AND EXHIBITS; PUBLIC RECORDS.

36-18    (a)  All orders of the commission shall be in writing and shall

36-19    contain detailed findings of the facts upon which they are passed.

36-20          (b)  The commission shall retain a copy of the transcript and

36-21    the exhibits in any matter in which the commission issues an order.

36-22    All files pertaining to matters which were at any time pending

36-23    before the commission and to records, reports, and inspections

36-24    required by Subtitle E of this title, Title II of this Act, and

36-25    Title III of this Act shall be public records, subject to the terms

 37-1    of Chapter 552, Government Code.

 37-2          (c)  The fees charged by the commission for electronic access

 37-3    to information that is stored in the system established by the

 37-4    commission using funds from the Texas Public Finance Authority and

 37-5    approved by the Department of Information Resources shall be

 37-6    established by the commission in consultation with the General

 37-7    Services Commission and shall be in an amount reasonable and

 37-8    necessary to retire the debt to the Texas Public Finance Authority

 37-9    associated with establishing the electronic access system.

37-10          SECTION 27.  (a)  The state auditor and the advisory

37-11    committee on procurement established by this Act shall study how

37-12    the classification levels of state agency purchasing personnel

37-13    should be revised to reflect the increased levels of responsibility

37-14    and accountability given to state agency purchasing personnel under

37-15    the changes in law made by this Act.  The state auditor and the

37-16    committee should consider how best to provide purchasing personnel

37-17    with a pay scale and a career path, including goals, incentives,

37-18    and initiatives, commensurate with the purchaser's knowledge,

37-19    authority, and responsibility.

37-20          (b)  The state auditor and the committee shall present their

37-21    written recommendations and the results of their study to the

37-22    legislature not later than January 1, 1999.

37-23          SECTION 28.  Subsection (a), Section 411.013, Government

37-24    Code, is repealed.

37-25          SECTION 29.  Subsection (e), Section 2155.067, Government

 38-1    Code, is repealed.

 38-2          SECTION 30.  The changes in law made by Sections 2155.078

 38-3    through 2155.081, Government Code, as added by this Act, relating

 38-4    to training and certification of existing state agency purchasing

 38-5    personnel, shall be implemented not later than September 1, 1998.

 38-6          SECTION 31.  The General Services Commission shall develop a

 38-7    technology access clause as required by Section 2157.005,

 38-8    Government Code, as added by this Act, not later than January 1,

 38-9    1998.

38-10          SECTION 32.  Nothing in this Act shall increase or decrease

38-11    the authority of the Public Utility Commission of Texas.

38-12          SECTION 33.  Except as provided by Section 26 of this Act,

38-13    this Act takes effect September 1, 1997.

38-14          SECTION 34.  The importance of this legislation and the

38-15    crowded condition of the calendars in both houses create an

38-16    emergency and an imperative public necessity that the

38-17    constitutional rule requiring bills to be read on three several

38-18    days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 1752 passed the Senate on

         April 24, 1997, by a viva-voce vote; and that the Senate concurred

         in House amendments on May 28, 1997, by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 1752 passed the House, with

         amendments, on May 26, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor