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.