HBA-AMW H.B. 3448 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3448
By: Gallego
State Affairs
4/5/2001
Introduced



BACKGROUND AND PURPOSE 

In 1919, the 36th Legislature consolidated the state's purchasing,
printing, and property management functions under one agency, the State
Board of Control.  The State Board of Control was later renamed the General
Services Commission (GSC).  The primary function of GSC is to provide
central services for state agencies and local governments.  GSC also
procures goods and services for customers, provides facility management
services, and provides administrative support to agency staff.  GSC is
subject to the Texas Sunset Act and will be abolished on September 1, 2001,
unless continued by the legislature.  As a result of its review of GSC, the
Sunset Advisory Commission recommended continuing GSC, but recommended
transferring its responsibility for statewide telecommunication operations
and electronic project development to the Department of Information
Resources.  House Bill 3448 continues GSC until September 1, 2013, and
transfers certain functions to the Department of Information Resources. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the General Services Commission in
ARTICLE 8 (Section 2166.2525, Government Code), ARTICLE 9 (Section
2167.0021, Government Code), ARTICLE 10 (Sections 2175.065, 2175.129,
2175.186, Government Code), and ARTICLE 11 (Section 2175.902, Government
Code); to the Department of Information Resources in ARTICLE 6 (Sections
2177.051 and 2177.102, Government Code) of this bill. It is the opinion of
the Office of House Bill Analysis that rulemaking authority previously
delegated to the General Services Commission is transferred to the
Department of Information Resources in ARTICLE 3 (Section 2170.058,
Government Code), ARTICLE 6 (Section 2155.083, Government Code) SECTIONS
3.32 and 6.07; from the Department of Economic Development to the General
Services Commission in ARTICLE 6 (Section 2155.083, Government Code) and
SECTION 6.10; and from the telecommunications planning group to the
telecommunications planning and oversight council in SECTION 3.34 of this
bill. 

ANALYSIS

House Bill 3448 amends the Government Code relating to the continuation and
functions of the General Services Commission and transfers certain
functions to the Department of Information Resources. 

Continuation and Sunset Recommendations

H.B. 3448 continues the General Services Commission (GSC) until September
1, 2013, and sets forth standard Sunset Advisory Commission recommendations
regarding conflicts of interest, GSC member removal, GSC member training,
and the maintaining of written complaints (SECTIONS 1.01, 1.04, 1.05, 1.08,
1.09).  The bill modifies provisions regarding GSC member terms, decreases
from six to five the number of members of GSC, and requires the executive
director of GSC (executive director) or the executive director's designee
to provide to GSC employees information and training on the benefits and
methods of participation in the state employee incentive program.
Provisions of the bill decreasing the size of GSC take effect January 31,
2003 (SECTIONS 1.03, 1.06, 1.07, and 1.10-1.13). 

 Information Technology Resources

H.B. 3448 transfers responsibility for the state's telecommunications
operations from GSC to the Department of Information Resources (DIR).  The
bill also transfers from GSC to DIR all personnel, property, contracts,
funds, waivers, and rules relating to providing telecommunications services
(SECTIONS 3.01, 3.13, 3.14, and 3.32).  The bill requires  GSC and DIR to
establish a transition plan for the transfer of the state's
telecommunications operations from GSC to DIR and sets forth provisions for
the contents of the plan (SECTION 3.33).   

The bill requires DIR to create a division within DIR to oversee and
implement major information resources projects designated by the
legislature or identified in a state agency's operating plan and outlines
DIR's responsibilities for the project office (SECTION 2.02). 

The bill establishes the telecommunications planning and oversight council
(council) to oversee telecommunications operations and sets forth
provisions regarding council composition requirements, oversight of
telecommunications systems, and appointments to advisory committees
(SECTIONS 3.02, 3.04, and 3.10).  The bill abolishes the telecommunications
planning group and transfers from the telecommunications planning group to
the council all powers, duties, rights, contracts, appropriations,
property, rules, policies, plans, waivers, standards, requirements, and
guidelines (SECTION 3.34).  The bill requires the council to develop
service objectives and performance measures for the consolidated
telecommunications system (TEX-AN) and the centralized capitol complex
telephone system (CCTS) (SECTION 3.10). 

The bill requires the council to submit an annual report with detailed
performance information for the networks to DIR and to each entity served
by TEX-AN or CCTS, provides for the contents of the report and requires the
first report to be issued not later than September 1, 2002 (SECTIONS 3.11
and 3.35). The bill also requires the council to submit a biennial report
to the legislature addressing CCTS and TEXAN performance,
telecommunications system needs, and recommended statutory changes (SECTION
3.12). 

The bill authorizes GSC to use reverse auctions as a purchasing method
within the electronic procurement network (SECTION 6.01).  The bill also
transfers the Electronic State Business Daily (business daily) to GSC from
the Texas Department of Economic Development (SECTIONS 6.02, 6.06, and
6.10). 

The bill requires DIR, in consultation with GSC, to establish an online
travel reservation and ticketing system for use by state agencies
participating in GSC's contracts for travel services and sets forth
procedures for establishing the ticket system (SECTION 6.04).  The bill
requires DIR to have the system fully operational by September 1, 2002
(SECTIONS 6.09 and 6.11).  The bill also requires GSC to maintain at least
one contract with a provider of travel services that offers reservation and
ticketing services in person or by telephone (SECTION 6.03). 

H.B. 3448 requires DIR, in consultation with GSC, to develop the electronic
procurement marketplace (marketplace) and the electronic commerce network
(commerce network), but transfers operational responsibility to GSC once
development of the marketplace and the commerce network is complete.  The
bill authorizes GSC, in consultation with DIR, to enter into contracts with
private or public entities to establish all or part of the databases
comprising the marketplace or to establish various elements of the commerce
network.  GSC personnel who primarily perform duties related to the
establishment of the marketplace or the commerce network, and all related
funds, obligations, contracts, property and records will be loaned to DIR
until the marketplace, commerce network, and ticketing system become fully
operational.  Once operational, the bill provides that the loaned
personnel, funds, and materials become the responsibility of GSC.  The bill
authorizes DIR to adopt rules relating to the design and use of the
marketplace and commerce network (SECTIONS 6.05 and 6.07 -- 6.09). 

The bill sets forth provisions regarding the establishment and operation of
the marketplace and the commerce network and exempts major construction
projects from participating in the commerce  network.  The bill requires
DIR, in consultation with GSC, to integrate the centralized master bidders
list and the business daily into the marketplace.  The bill also requires
GSC and DIR to ensure that small and historically underutilized businesses
have maximum access to electronic commerce opportunities (SECTION 6.05).   

Contracting

H.B. 3448 requires DIR with the assistance of the state auditor's office
and the office of the attorney general to develop contracting guidelines
for state agencies and sets forth provisions regarding the guidelines
(SECTION 4.01).  The bill establishes an interagency work group to assist
DIR in developing contracting guidelines, provides for the group's
composition requirements, and specifies that the group expires September 1,
2002, unless reconvened by DIR as necessary (SECTION 4.02). 

Outsourcing

H.B. 3448 requires GSC to develop a systematic review process to identify
commercially available services being performed by GSC and to study the
services to determine if they may be better provided by other state agency
providers of the services or private commercial sources.  The bill sets
forth procedures for the systematic review.  The bill requires GSC to
consider all of its direct and indirect costs in determining the cost of
providing a service and sets forth procedures for comparing costs and
contracting with another state agency or private source.  The bill
prohibits GSC from offering any new services until comparing costs and
availability of services with other state agencies or private sector
providers (SECTION 5.01). 

State Cemetery

H.B. 3448 requires the State Cemetery Committee (committee) to develop a
budget for the operations of GSC relating to the State Cemetery and to
determine the salary of employees of GSC whose duties primarily relate to
the operation of the State Cemetery (SECTION 7.01).  The bill provides for
the separate appropriation of money to the committee from the legislature
for all matters relating to the operation of the State Cemetery (SECTION
7.02).  The bill specifies that the provisions regarding budget and
appropriations for the committee apply beginning September 1, 2003 (SECTION
7.04).  The bill sets forth provisions regarding committee member removal,
standards of conduct, member training, policy implementation by the
committee, and public testimony and specifies that the recommendations
relating to member training do not apply until March 1, 2002 (SECTION
7.03).   

Facilities Management

H.B. 3448 authorizes GSC to use design-build, construction manager-at-risk,
and competitive sealed proposal contracting methods and establishes
procedures for using these methods (SECTIONS 8.058.07).  The bill requires
GSC to adopt rules regarding these contracting methods and, in developing
the rules, requires GSC to solicit advice and comment from design and
construction professionals regarding the criteria for determining the best
method for a project (SECTION 8.02).  The bill sets forth provisions for
the evaluation of bids and proposals for construction services (SECTION
8.03).  The bill authorizes GSC to use the lowest and best bid method for a
project and modifies required bidding procedures (SECTION 8.04).   

The bill requires GSC to lease space for the use of a state agency on the
basis of obtaining the best value for the state and sets forth provisions
regarding determination of the best value.  The bill requires GSC to adopt
rules establishing guidelines for the determination of the best value in a
lease contract (SECTION 9.01). 

The bill authorizes GSC to contract with private brokerage or real estate
firms to assist GSC in locating and leasing space and to negotiate directly
with bidders to lease space (SECTIONS 9.08 and 9.05).  The bill authorizes
GSC to delegate leasing authority to state agencies as well as institutions
of higher education  (SECTION 9.03).  The bill requires GSC to report to
the governor, lieutenant governor, speaker of the house of representatives,
and a state agency's governing body when the agency does not comply with
leasing requirements.  The bill requires the staff of GSC to annually
submit a report to GSC regarding opportunities for delegating leasing
authority to state agencies with statewide operations and provides that the
report must include comments from such agencies (SECTION 9.10).   

H.B. 3448 requires GSC to establish a mandatory recycling program for a
state agency that occupies a building under its control and sets forth
procedures which GSC is required by rule to establish for collecting and
recycling paper.  The bill authorizes GSC to enter into an interagency
agreement to provide recycling services to a state agency otherwise
excluded from the program (SECTION 11.01). 

Surplus Property

H.B. 3448 grants GSC responsibility for the state's surplus property
program.  The  bill authorizes GSC to delegate authority to a state agency
to dispose of its surplus property if the agency can do so at a savings to
the state and sets forth provisions regarding the disposition or sale of
surplus or salvage property.  The bill requires GSC to establish by rule
the criteria for determining that a delegation of authority to a state
agency results in cost savings to the state and to adopt rules establishing
guidelines for determining the most advantageous method of sale to the
state.  The bill requires GSC to contract for disposal of surplus or
salvage property in a manner that maximizes value to the state (SECTIONS
10.01 and 10.02).  Provisions of this bill regarding surplus property take
effect January 1, 2002 (SECTION 10.03). 

EFFECTIVE DATE

September 1, 2001, except as provided by the bill.