1-1     By:  Carona                                           S.B. No. 1528
 1-2           (In the Senate - Filed March 12, 1999; March 15, 1999, read
 1-3     first time and referred to Committee on State Affairs;
 1-4     April 21, 1999, reported favorably by the following vote:  Yeas 8,
 1-5     Nays 0; April 21, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to costs for equipment maintenance by state agencies.
 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10           SECTION 1.  Chapter 2158, Government Code, is amended by
1-11     adding Subchapter F to read as follows:
1-12                    SUBCHAPTER F.  EQUIPMENT MAINTENANCE
1-13           Sec. 2158.281.  EQUIPMENT MAINTENANCE PROGRAM.  (a)  A state
1-14     agency shall analyze the cost of service warranty contracts on
1-15     equipment for which the agency is responsible.
1-16           (b)  A state agency shall seek to lower its equipment
1-17     maintenance costs by entering into new contracts for and converting
1-18     existing service warranty contracts to more cost-effective methods
1-19     of equipment maintenance, including:
1-20                 (1)  time and material contracts;
1-21                 (2)  equipment maintenance insurance; and
1-22                 (3)  contracts with third parties to assist in managing
1-23     the agency's maintenance of equipment.
1-24           (c)  A state agency shall solicit bids or proposals, as
1-25     appropriate, from vendors for maintaining or assisting the agency
1-26     to maintain agency equipment by one or more of the following
1-27     methods:
1-28                 (1)  a contract based on time and material rates for
1-29     repair and maintenance work;
1-30                 (2)  the purchase of equipment maintenance insurance;
1-31     and
1-32                 (3)  a contract with a third party to assist in
1-33     managing maintenance programs.
1-34           (d)  The state agency shall accept the responsible bid or
1-35     proposal that lowers its maintenance costs on some or all equipment
1-36     and that offers the best value to the agency.
1-37           (e)  A bid or proposal accepted under this section must allow
1-38     additional equipment to be added to the program at any time.
1-39           SECTION 2.  This Act takes effect September 1, 1999.
1-40           SECTION 3.  The importance of this legislation and the
1-41     crowded condition of the calendars in both houses create an
1-42     emergency and an imperative public necessity that the
1-43     constitutional rule requiring bills to be read on three several
1-44     days in each house be suspended, and this rule is hereby suspended.
1-45                                  * * * * *