1-1     By:  Armbrister                                       S.B. No. 1127
 1-2           (In the Senate - Filed March 10, 1999; March 11, 1999, read
 1-3     first time and referred to Committee on State Affairs;
 1-4     April 15, 1999, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 5, Nays 0; April 15, 1999,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1127               By:  Shapleigh
                                A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to the purchase of goods and services by the state.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Section 2155.078, Government Code, is amended by
1-12     amending the section heading and Subsections (a) and (m) to read as
1-13     follows:
1-14           Sec. 2155.078.  TRAINING AND CERTIFICATION OF STATE AGENCY
1-15     PURCHASING PERSONNEL AND VENDORS.  (a)  The commission shall
1-16     establish and administer a system of training, continuing
1-17     education, and certification for state agency purchasing personnel.
1-18     The commission may establish and offer appropriate training to
1-19     vendors on a cost recovery basis.  The commission may adopt rules
1-20     to administer this section, including rules relating to monitoring
1-21     a certified purchaser's compliance with the continuing education
1-22     requirements of this section.
1-23           (m)  The commission's prerequisites for receiving a
1-24     level-three purchaser certification must include completion of the
1-25     second training level, passage of a written [and an oral]
1-26     examination, and a minimum of three years of purchasing experience.
1-27           SECTION 2.  Subsection (d), Section 2155.262, Government
1-28     Code, is amended to read as follows:
1-29           (d)  A state agency shall submit to the commission each
1-30     uniform registration form that it receives.  [The commission shall
1-31     send to the comptroller a copy of each uniform registration form.]
1-32           SECTION 3.  Subsection (a), Section 2155.263, Government
1-33     Code, is amended to read as follows:
1-34           (a)  The commission shall maintain a centralized master
1-35     bidders list and [annually] register on the list the name and
1-36     address of each vendor that applies for registration under rules
1-37     adopted under this subchapter.  The commission may include other
1-38     relevant vendor information on the list.
1-39           SECTION 4.  Subsection (a), Section 2155.266, Government
1-40     Code, is amended to read as follows:
1-41           (a)  The commission may charge a person applying for
1-42     registration on the master bidders list a registration fee and may
1-43     charge a registrant a biennial [an annual] renewal fee in an amount
1-44     designed to recover the commission's costs in:
1-45                 (1)  making and maintaining the master bidders list;
1-46     and
1-47                 (2)  soliciting bids or proposals under this
1-48     subchapter.
1-49           SECTION 5.  Section 2155.384, Government Code, is amended to
1-50     read as follows:
1-51           Sec. 2155.384.  AUTHORITY TO PAY CHARGES.  The commission,
1-52     [or] a state agency, or an entity authorized under Chapter 271,
1-53     Local Government Code, or Section 2155.202 to purchase from a
1-54     contract entered into under the authority of the commission may pay
1-55     a restocking charge, cancellation fee, or other similar charge if
1-56     the commission, state agency, or other entity determines that the
1-57     charge is justifiable.
1-58           SECTION 6.  Section 2155.445, Government Code, is amended to
1-59     read as follows:
1-60           Sec. 2155.445.  PREFERENCE FOR RECYCLED, REMANUFACTURED, OR
1-61     ENVIRONMENTALLY SENSITIVE PRODUCTS.  (a)  The commission and state
1-62     agencies shall give preference to [a product made of] recycled,
1-63     remanufactured, or environmentally sensitive products, as those
1-64     terms are defined by rule of the commission, [materials] in
 2-1     purchases made under this subtitle if the product meets state
 2-2     specifications regarding quantity and quality.
 2-3           (b)  The commission regularly shall review and revise its
 2-4     procurement procedures and specifications for the purchase of goods
 2-5     to:
 2-6                 (1)  eliminate procedures and specifications that
 2-7     explicitly discriminate against [products made of] recycled,
 2-8     remanufactured, or environmentally sensitive products, as those
 2-9     terms are defined by rule of the commission, [materials]; and
2-10                 (2)  encourage the use of [products made of] recycled,
2-11     remanufactured, or environmentally sensitive products [materials].
2-12           (c)  In developing new procedures and specifications, the
2-13     commission shall encourage the use of recycled products and
2-14     products that may be recycled or reused or that are remanufactured
2-15     or environmentally sensitive.
2-16           SECTION 7.  Section 2155.448, Government Code, is amended to
2-17     read as follows:
2-18           Sec. 2155.448.  EXPENDITURES FOR RECYCLED, REMANUFACTURED, OR
2-19     ENVIRONMENTALLY SENSITIVE COMMODITIES OR SERVICES [MATERIALS].
2-20     (a)  Each state fiscal year, the commission, in coordination with
2-21     the Recycling Market Development Board, by rule may identify
2-22     recycled, remanufactured, or environmentally sensitive commodities
2-23     or services, as those terms are defined by rule of the commission,
2-24     and designate purchasing goals for the procurement of those
2-25     commodities and services by state agencies for that fiscal year [A
2-26     state agency shall spend not less than eight percent of its
2-27     consumable procurement budget for each fiscal year for goods that
2-28     have recycled material content or that are remanufactured or
2-29     environmentally sensitive, as those terms are defined by the
2-30     commission].
2-31           (b)  A state agency that intends to purchase a commodity or
2-32     service that accomplishes the same purpose as a commodity or
2-33     service identified under Subsection (a) that does not meet the
2-34     definition of a recycled product or that is not remanufactured or
2-35     environmentally sensitive, as those terms are defined by rule of
2-36     the commission, shall include with the procurement file a written
2-37     justification signed by the executive head of the agency stating
2-38     the reasons for the determination that the commodity or service
2-39     identified by the commission will not meet the requirements of the
2-40     agency [Not later than January 1 of each year, a state agency shall
2-41     deliver a report of the total expenditures in the areas subject to
2-42     Subsection (a) and the amount spent in each category for the
2-43     previous fiscal year to the Legislative Budget Board].
2-44           (c)  A state agency shall report in its annual financial
2-45     report, and in an annual report to the commission at a date and in
2-46     a manner and form prescribed by the commission, the expenditures
2-47     made during the preceding state fiscal year for each of the
2-48     commodities or services identified under Subsection (a).  The
2-49     report must at a minimum identify the total amount spent on those
2-50     commodities and services and the total amount spent for commodities
2-51     and services purchased that accomplish the same purpose.
2-52     Additionally, state agencies shall report the amount spent for all
2-53     other recycled, remanufactured, and environmentally sensitive
2-54     commodities and services by type of commodity and service as
2-55     prescribed by the commission.
2-56           SECTION 8.  Section 2156.121, Government Code, is amended by
2-57     adding Subsection (c) to read as follows:
2-58           (c)  The commission shall determine whether to delegate sole
2-59     oversight of the acquisition to a state agency or to retain
2-60     oversight of the procurement.
2-61           SECTION 9.  Chapter 2156, Government Code, is amended by
2-62     adding Subchapter D to read as follows:
2-63                SUBCHAPTER D.  INTERSTATE COMPACTS PROCEDURE
2-64           Sec. 2156.181.  INTERSTATE COMPACTS AND COOPERATIVE
2-65     AGREEMENTS FOR PROCUREMENTS.  (a)  The commission may enter into
2-66     one or more compacts, interagency agreements, or cooperative
2-67     purchasing agreements with one or more state governments, agencies
2-68     of other states, or other governmental entities for the purchase of
2-69     goods or services if the commission determines that entering into
 3-1     an agreement would be in the best interest of the state.
 3-2           (b)  The commission may adopt rules to implement this
 3-3     section.
 3-4           SECTION 10.  Subdivision (1), Section 2157.001, Government
 3-5     Code, is amended to read as follows:
 3-6                 (1)  "Automated information system" includes:
 3-7                       (A)  the computers and computer devices on which
 3-8     an [the] information system is automated, including computers and
 3-9     computer devices that the commission identifies in guidelines
3-10     developed by the commission in consultation with the Department of
3-11     Information Resources and in accordance with Chapter 2054 and rules
3-12     adopted under that chapter;
3-13                       (B)  a service related to the automation of an
3-14     information [the] system, including computer software[,] or [the]
3-15     computers;
3-16                       (C)  a telecommunications apparatus or device
3-17     that serves as a component of a voice, data, or video
3-18     communications network for transmitting, switching, routing,
3-19     multiplexing, modulating, amplifying, or receiving signals on the
3-20     network, and services related to telecommunications that are not
3-21     covered under Paragraph (D); and
3-22                       (D)  for the General Services Commission, as
3-23     telecommunications provider for the state [State], the term
3-24     includes any service provided by a telecommunications provider, as
3-25     that term is defined by Section 51.002, Utilities Code [in the
3-26     Public Utility Regulatory Act of 1995 (Article 1446c-0, Vernon's
3-27     Texas Civil Statutes)].
3-28           SECTION 11.  Subsections (a) and (b), Section 2157.005,
3-29     Government Code, are amended to read as follows:
3-30           (a)  The commission and the Department of Information
3-31     Resources, in consultation with other state agencies and after
3-32     public comment, shall develop a technology access clause to be
3-33     included in all contracts entered into by the state or state
3-34     agencies that involve the acquisition of an automated information
3-35     system.
3-36           (b)  State [The clause shall clearly state, as a condition
3-37     for the expenditure of state] funds may not be expended in the
3-38     purchase of an automated information system unless the contract
3-39     contains the technology access clause.  The clause must read as
3-40     follows [, that the technology]:
3-41           "The vendor expressly acknowledges that state funds may not
3-42     be expended in connection with the purchase of an automated
3-43     information system unless that system meets certain statutory
3-44     requirements relating to accessibility by persons with visual
3-45     impairments.  Accordingly, the vendor represents and warrants to
3-46     (name of state agency) that the technology provided to (name of
3-47     state agency) for purchase is capable, either by virtue of features
3-48     included within the technology or because it is readily adaptable
3-49     by use with other technology, of:
3-50                 (1)  providing [will provide] equivalent access for
3-51     effective use by both visual and nonvisual means;
3-52                 (2)  presenting [will present] information, including
3-53     prompts used for interactive communications, in formats intended
3-54     for both visual and nonvisual use; and
3-55                 (3)  being [can be] integrated into networks for
3-56     obtaining, retrieving, and disseminating information used by
3-57     individuals who are not blind or visually impaired.
3-58           "For purposes of this clause, the phrase "equivalent access"
3-59     means a substantially similar ability to communicate with or make
3-60     use of the technology, either directly by features incorporated
3-61     within the technology or by other reasonable means such as
3-62     assistive devices or services that would constitute reasonable
3-63     accommodations under the federal Americans with Disabilities Act or
3-64     similar state or federal laws.  Examples of methods by which
3-65     equivalent access may be provided include, but are not limited to,
3-66     keyboard alternatives to mouse commands and other means of
3-67     navigating graphical displays, and customizable display
3-68     appearance."
3-69           SECTION 12.  Section 2157.0611, Government Code, is amended
 4-1     to read as follows:
 4-2           Sec. 2157.0611.  REQUIREMENT TO EVALUATE THREE PROPOSALS WHEN
 4-3     POSSIBLE.  A catalogue purchase or lease that exceeds $2,000 or a
 4-4     greater amount prescribed by commission rule shall, when possible,
 4-5     be based on an evaluation of at least three catalogue proposals
 4-6     made to the commission or other state agency by qualified
 4-7     information systems vendors.  If at least three catalogue proposals
 4-8     are not evaluated by the commission or other state agency before a
 4-9     [the] purchase or lease that exceeds the threshhold amount is made,
4-10     the commission or other agency shall document the reasons for that
4-11     fact before making the purchase or lease under Section 2157.063.
4-12           SECTION 13.  Subsection (a), Section 2157.063, Government
4-13     Code, is amended to read as follows:
4-14           (a)  If a purchase or lease is the best value available and
4-15     is in the state's best interest, a state agency may under this
4-16     subchapter purchase or lease an automated information system
4-17     directly from a qualified information systems vendor and may
4-18     negotiate price and additional terms and conditions to be included
4-19     in a contract relating to the purchase or lease.
4-20           SECTION 14.  Section 2157.066, Government Code, is amended by
4-21     amending Subsections (b) and (c) and adding Subsection (f) to read
4-22     as follows:
4-23           (b)  The vendor shall revise the catalogue as necessary [to
4-24     include price changes or the availability of goods or services and
4-25     shall make the revisions available] in the manner required by the
4-26     commission.
4-27           (c)  The commission shall make the catalogue information
4-28     available on the world wide web, or on a suitable successor to the
4-29     world wide web if the technological developments involving the
4-30     Internet make it advisable to do so.  The commission shall require
4-31     each qualified information systems vendor to maintain its approved
4-32     catalogue [a home page] on the web, or an analogous feature on a
4-33     suitable successor, through which the vendor makes the vendor's
4-34     current catalogue information publicly available.  The commission
4-35     shall maintain the necessary databases and indexing functions
4-36     through which a state agency or the public may efficiently search
4-37     for and find each qualified information systems vendor's catalogue
4-38     information on the web or on a suitable successor.
4-39           (f)  The commission may audit a qualified information systems
4-40     vendor's approved catalogue for compliance with Subsection (c).
4-41           SECTION 15.  Section 2158.241, Government Code, is amended to
4-42     read as follows:
4-43           Sec. 2158.241.  INTERSTATE COMPACTS AND COOPERATIVE
4-44     AGREEMENTS FOR PROCURING RECYCLED PRODUCTS.  The commission may
4-45     [shall] enter into compacts and cooperative agreements with other
4-46     states and government entities for procuring products made of
4-47     recycled materials when the commission determines it is in the best
4-48     interest of the state.
4-49           SECTION 16.  Subsection (a), Section 2254.040, Government
4-50     Code, is amended to read as follows:
4-51           (a)  The General Services Commission may [shall], on request
4-52     of a state agency, procure for the agency consulting services that
4-53     are covered by this subchapter.
4-54           SECTION 17.  Subsection (d), Section 2155.268, Government
4-55     Code, is repealed.
4-56           SECTION 18.  The change in law made by this Act to Subsection
4-57     (b), Section 2157.005, Government Code, applies only to a contract
4-58     that is entered into or renewed on or after the effective date of
4-59     this Act.  A contract entered into before that date is governed by
4-60     the law in effect at the time the contract was entered into, and
4-61     that law is continued in effect for that purpose.
4-62           SECTION 19.  The importance of this legislation and the
4-63     crowded condition of the calendars in both houses create an
4-64     emergency and an imperative public necessity that the
4-65     constitutional rule requiring bills to be read on three several
4-66     days in each house be suspended, and this rule is hereby suspended,
4-67     and that this Act take effect and be in force from and after its
4-68     passage, and it is so enacted.
4-69                                  * * * * *