By:  Carona                                           S.B. No. 1528
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to costs for equipment maintenance by state agencies.
 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-3           SECTION 1.  Chapter 2158, Government Code, is amended by
 1-4     adding Subchapter F to read as follows:
 1-5                    SUBCHAPTER F.  EQUIPMENT MAINTENANCE
 1-6           Sec. 2158.281.  EQUIPMENT MAINTENANCE PROGRAM.  (a)  A state
 1-7     agency shall analyze the cost of service warranty contracts on
 1-8     equipment for which the agency is responsible.
 1-9           (b)  A state agency shall seek to lower its equipment
1-10     maintenance costs by entering into new contracts for and converting
1-11     existing service warranty contracts to more cost-effective methods
1-12     of equipment maintenance, including:
1-13                 (1)  time and material contracts;
1-14                 (2)  equipment maintenance insurance; and
1-15                 (3)  contracts with third parties to assist in managing
1-16     the agency's maintenance of equipment.
1-17           (c)  A state agency shall solicit bids or proposals, as
1-18     appropriate, from vendors for maintaining or assisting the agency
1-19     to maintain agency equipment by one or more of the following
1-20     methods:
1-21                 (1)  a contract based on time and material rates for
1-22     repair and maintenance work;
1-23                 (2)  the purchase of equipment maintenance insurance;
1-24     and
 2-1                 (3)  a contract with a third party to assist in
 2-2     managing maintenance programs.
 2-3           (d)  The state agency shall accept the responsible bid or
 2-4     proposal that lowers its maintenance costs on some or all equipment
 2-5     and that offers the best value to the agency.
 2-6           (e)  A bid or proposal accepted under this section must allow
 2-7     additional equipment to be added to the program at any time.
 2-8           SECTION 2.  This Act takes effect September 1, 1999.
 2-9           SECTION 3.  The importance of this legislation and the
2-10     crowded condition of the calendars in both houses create an
2-11     emergency and an imperative public necessity that the
2-12     constitutional rule requiring bills to be read on three several
2-13     days in each house be suspended, and this rule is hereby suspended.