SRC-JBJ S.B. 311 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 311
77R1069 MTB-DBy: Zaffirini
State Affairs
4/6/2001
As Filed


DIGEST AND PURPOSE 

Currently, the General Services Commission (commission) conducts and
oversees state purchasing; manages and leases state buildings, property and
office space; and provides travel and telecommunications services to state
agencies.  The commission expires on September 1, 2001, unless the
legislature continues it in existence.  As proposed, S.B. 311 continues the
commission until the year 2013 and implements amendments to provisions
regarding telecommunications operations; electronic procurement; purchasing
methods; contracting guidelines and methods; surplus property; recycling;
travel reservation; commercially available activities for outsourcing; and
other issues recommended by the Sunset Advisory Commission.  

RULEMAKING AUTHORITY

Rulemaking authority previously granted to the General Services Commission
is expressly granted to the Department of Information Resources in SECTION
3.27 (Section 2170.058, Government Code) and SECTION 6.05 (Section
2177.051, Government Code) of this bill. 

Rulemaking authority is expressly granted to the Department of Information
Resources in SECTION 6.05 (Section 2177.102, Government Code) of this bill. 

Rulemaking authority previously granted to the Texas Department of Commerce
is expressly granted to the General Services Commission in SECTION 6.02
(Section 2155.083, Government Code) of this bill. 

Rulemaking authority is expressly granted to the General Services
Commission in SECTION 8.02 (Section 2166.2525, Government Code), SECTION
9.01 (Section 2167.0021, Government Code), SECTION 10.01 (Section 2175.065,
Government Code), SECTION 10.02 (Section 2175.129, Government Code),
SECTION 10.02 (Section 2175.186, Government Code), and SECTION 11.01
(Section 2175.902, Government Code) of this bill. 

SECTION BY SECTION ANALYSIS

ARTICLE 1.  ADMINISTRATIVE PROVISIONS

SECTION 1.01.  Amends Section 2054.022, Government Code, to prohibit a
member of the board or the executive director, rather than an employee of
the Department of Information Resources (department), from certain actions
or activities constituting a conflict of interest.  Sets forth prohibitions
for an employee of the department, other than the executive director.
Makes conforming changes. 

SECTION 1.02.  Amends Section 2152.002, Government Code, to provide that
unless continued in existence as provided by Chapter 325 (Texas Sunset
Act), the General Services Commission (commission) is abolished and this
subtitle, except for Chapter 2170 and Section 2157.121, expires September
1, 2013, rather then September 1, 2001. 

SECTION 1.03.  Amends Section 2152.051, Government Code, to provide that
the commission is  composed of five, rather than six, representatives of
the public appointed by the governor with the advice and consent of the
senate. 
 
SECTION 1.04.  Amends Sections 2152.054(b) and (c), Government Code, to
prohibit an officer, employee, or paid consultant of a Texas trade
association of business entities that contracts with the state from serving
as a commission member, or being employed as a commission employee in a
"bona fide executive, administrative, or professional capacity," as that
phrase is used for purposes of establishing an exemption to the overtime
provisions of the federal Fair Labor Standards Act of 1938 (29 U.S.C.
Section 201 et seq.) and its subsequent amendments.  Deletes existing text
pertaining to employees exempt from classification.  Makes a conforming
change. 

SECTION 1.05.  Amends Section 2152.056(c), Government Code, to require the
executive director, if the executive director has knowledge that a
potential ground for removal exists, to notify the presiding officer of the
commission of the potential ground.  Requires the presiding officer to then
notify the governor and the attorney general that a potential ground for
removal exists.  Requires the executive director, if the potential ground
for removal involves the presiding officer, to notify the next highest
ranking officer of the commission, who is required to then notify the
governor and the attorney general that a potential ground for removal
exists. 

SECTION 1.06.  Amends Section 2152.057, Government Code, to provide that
commission members serve staggered six-year terms with one or two members'
terms expiring January 31 of each odd-numbered year. 
 
SECTION 1.07.  Amends Section 2152.058(c), Government Code, to provide that
three, rather than four, members of the commission constitute a quorum. 

SECTION 1.08.  Amends Chapter 2152B, Government Code, by adding Section
2152.0581, as follows: 
 
Sec. 2152.0581.  TRAINING FOR COMMISSION MEMBERS. (a)  Prohibits a person
who is  appointed to and qualifies for office as a member of the commission
from voting, deliberating, or being counted as a member in attendance at a
meeting of the commission until the person completes a training program
that complies with this section. 

  (b)  Sets forth information required to be provided by the training.

(c)  Provides that a person appointed to the commission is entitled to
reimbursement, as provided by the General Appropriations Act, for the
travel expenses incurred in attending the training program regardless of
whether the attendance at the program occurs before or after the person
qualifies for office. 

SECTION 1.09.  Amends Section 2152.060, Government Code, by amending
Subsection (b) and adding Subsection (d), to require the commission to
maintain a file on, rather than keep an information file about, each
written complaint filed with the commission, rather than that the
commission has authority to resolve.  Sets forth standards for the file.
Requires the commission to provide to the person filing the complaint and
to each person who is a subject of the complaint a copy of the commission's
policies and procedures relating to complaint investigation and resolution. 

SECTION 1.10.  Amends Chapter 2152C, Government Code, by adding Section
2152.110, as follows: 

Sec. 2152.110.  STATE EMPLOYEE INCENTIVE PROGRAM.  Requires the executive
director or the executive director's designee to provide to commission
employees   information and training on the benefits and methods of
participation in the state  employee incentive program under Chapter 2108B. 
 
SECTION 1.11.  (a)  Requires the governor, to achieve the membership plan
prescribed by Section 2152.051, Government Code, as amended by this Act,
for the commission, to appoint only one commission member to succeed the
commission members whose terms expire on January 31, 2003. Provides that
the member appointed under this section is appointed for a term expiring
January 31, 2009. 

(b)  Requires the governor, as soon as possible after September 1, 2001, to
designate for abolition on January 31, 2003, one of the two membership
positions with terms that expire on January 31, 2003. 

SECTION 1.12.  Provides that the changes in law made by this Act in the
prohibitions and qualifications applying to members of the General Services
Commission do not affect the entitlement of a member serving on the
commission immediately before September 1, 2001, to continue to serve and
function as a member of the commission for the remainder of the member's
term.  Provides that the changes in law apply only to a member appointed on
or after September 1, 2001.  Provides that this Act does not prohibit a
person who is a member of the General Services Commission immediately
before September 1, 2001, from being reappointed as a commission member if
the person has the qualifications required for the position under Chapter
2152, Government Code, as amended by this Act. 

SECTION 1.13.  Provides that the change in law made by this Act to Sections
2152.051, 2152.057, and 2152.058(c), Government Code, takes effect January
31, 2003. 

ARTICLE 2.  OVERSIGHT OF MAJOR INFORMATION RESOURCES PROJECTS

SECTION 2.01.  Amends Section 2054.003, Government Code, by adding a new
Subdivision (8) and renumbering existing Subdivisions (8)-(10) as
Subdivisions (9)-(11), to define "major information resources project." 

SECTION 2.02.  Amends Chapter 2054F, Government Code, by adding Section
2054.1181, as follows: 
 
Sec. 2054.1181.  OVERSIGHT OF MAJOR INFORMATION RESOURCES PROJECTS. (a)
Requires the Department of Information Resources (department) to create a
division in the department to oversee the implementation of major
information resources projects. 

  (b)  Sets forth performance standards and objectives for the department.

(c)  Requires the division to be funded from a percentage of money
appropriated to or budgeted by state agencies for the major information
resources projects designated by the legislature under Section
2054.003(8)(B).  Requires the legislature to prescribe the percentage or
percentages, as applicable, in the General Appropriations Act. 
 
SECTION 2.03.  Repealer:  Section 2054.118(d) (relating to the definition
of a "major information resources project"), Government Code.    

ARTICLE 3.  TELECOMMUNICATIONS

SECTION 3.01.  Amends Section 2054.051(e), Government Code, to delete
existing text pertaining to telecommunications provided by the commission. 

SECTION 3.02.  Amends Section 2054.091(d), Government Code, to require that
the members of the advisory committee appointed by the executive director
must be approved by the board and must include officers or employees of
state government.  Requires the telecommunications planning and oversight
council (council) to appoint one of its members to serve as a member of the
advisory  committee. 

SECTION 3.03.  Amends the heading of Chapter 2054H, Government Code, to
read as follows: 

SUBCHAPTER H.  TELECOMMUNICATIONS PLANNING
AND OVERSIGHT COUNCIL

SECTION 3.04.  Amends Section 2054.201, Government Code, as follows:
 
Sec. 2054.201.  New heading:  COMPOSITION; TERMS.  Sets forth the
composition of the council.  Provides that the appointed members of the
council serve two-year terms, except that the representative of the
comptroller's office serves at the discretion of the comptroller.  Deletes
existing text pertaining to a member's authority to select a designee.
Requires members of the council who represent a state agency to abstain
from any action taken by the council regarding a request for a waiver under
Section 2170.051 from the state agency that is represented by the member. 

SECTION 3.05.  Amends Chapter 2054H, Government Code, by adding Section
2054.2011, as follows: 

 Sec. 2054.2011.  DEFINITIONS.  Defines "consolidated telecommunications
system" and "centralized capitol complex telephone system." 

SECTION 3.06.  Amends Section 2054.202, Government Code, to require the
department to provide, rather than coordinate, the staff and administrative
support necessary for, rather than provided to, the council to perform its
duties under this subchapter.  Deletes existing text pertaining to the
department, comptroller, and commission.  Makes conforming changes. 

SECTION 3.07.  Amends Section 2054.203, Government Code, by amending
Subsections (a), (b), (c), and (d) and adding Subsection (g), to require
the council to establish plans and policies for a system of
telecommunications services to be managed and operated by the department,
rather than the commission.  Requires the plan to implement a statewide
network and include technical specifications that are binding on the
department, rather than the commission.  Requires the council to perform
strategic planning for all state telecommunications services in accordance
with the guiding principles of the state strategic plan for information
resources management.  Makes conforming changes. 
 
SECTION 3.08.  Amends Sections 2054.204(a) and (c), Government Code, to
make conforming changes. 

SECTION 3.09.  Amends Section 2054.205, Government Code, to make conforming
changes. 

SECTION 3.10.  Amends Chapter 2054H, Government Code, by adding Section
2054.2051, to read as follows: 

Sec. 2054.2051.  OVERSIGHT OF SYSTEMS. (a)  Requires the council to develop
service objectives for the consolidated telecommunications system and the
centralized capitol complex telephone system. 

(b)  Requires the council to develop performance measures for the
operations and staff of the consolidated telecommunications system and the
centralized capitol complex telephone system. 

(c)  Requires the council to review every three months the status of all
projects related to and the financial performance of the consolidated
telecommunications system and the centralized capitol complex telephone
system, including a comparison between actual  performance and projected
goals. 

(d)  Requires the council to make recommendations to the board on ways to
improve the operation of the consolidated telecommunications system and the
centralized capitol complex telephone system based on its review of their
performance and on concerns raised by using entities. 

SECTION 3.11.  Amends Section 2054.206, Government Code, as follows:
 
Sec. 2054.206.  New heading:  ANNUAL REPORT.  Deletes existing text of this
section regarding advisory agencies.  Requires the council to submit an
annual report to the department and to each entity served by the
consolidated telecommunications system or the centralized capitol complex
telephone system.  Sets forth information that must be included in the
report. 

SECTION 3.12.  Amends Section 2054.207, Government Code, as follows:
 
Sec. 2054.207.  New heading:  REPORT TO LEGISLATURE.  Sets forth items to
be addressed by the report.  Makes a conforming change. 

SECTION 3.13.  Amends Section 2157.001(1), Government Code, to make a
conforming change. 

SECTION 3.14.  Amends Section 2157.121, Government Code, by amending
Subsection (b) and adding Subsection (c), to require a state agency, other
than the department, to send its proposal specifications and criteria to
the commission for approval or request the commission to develop the
proposal specifications and criteria.  Authorizes the department to acquire
a telecommunications device, system, or service or an automated information
system by using competitive sealed proposals without regard to whether the
commission makes the determination required under Subsection (a) for other
state agencies. 

SECTION 3.15.  Amends Section 2170.001(a), Government Code, by adding
Subdivision (3), to define "department." 

SECTION 3.16.  Amends Section 2170.002, Government Code, as follows:
 
Sec. 2170.002.  New heading:  DEPARTMENT RESPONSIBLE FOR OBTAINING
TELECOMMUNICATIONS SERVICES.  Makes a conforming change. 
 
SECTION 3.17.  Amends Section 2170.003, Government Code, to make a
conforming change. 

SECTION 3.18.  Amends Section 2170.004, Government Code, to make a
conforming change. 

SECTION 3.19.  Amends Sections 2170.005(a) and (c), Government Code, to
require that the subject matter listing of programs and telephone numbers
in the telephone directories must be consistent with the categorization
developed by the Records Management Interagency Coordinating Council under
Section 441.203, rather than 441.053.  Makes conforming changes. 

SECTION 3.20.  Amends Section 2170.006, Government Code, to make conforming
changes. 

SECTION 3.21.  Amends Section 2170.008, Government Code, to make conforming
changes. 

SECTION 3.22.  Amends Sections 2170.009(a) and (c), Government Code, to
make conforming changes. 

SECTION 3.23.  Amends Section 2170.051, Government Code, to make conforming
changes. 
 
 SECTION 3.24.  Amends Section 2170.052, Government Code, to make a
conforming change. 
 
SECTION 3.25.  Amends Section 2170.056, Government Code, to make a
conforming change. 

SECTION 3.26.  Amends Sections 2170.057(a), (c), and (d), Government Code,
to require the department, rather than commission, to certify amounts that
exceed the amount sufficient to pay certain telecommunications bills to the
comptroller, and requires the comptroller to transfer the excess amounts to
the credit of the statewide network applications account established by
Section 2054.011, rather than 22A, Information Resources Management Act
(Article 4413(32j), Revised Statutes).  Makes conforming changes. 

SECTION 3.27.  Amends Sections 2170.058(b) and (c), Government Code, to
provide that, in consideration of the duties and responsibilities given the
department, rather than commission, under this chapter, rather than
subtitle, it is the policy of this state that a state agency or unit of
state government may not provide telecommunications products or services to
the general public in competition with private enterprise unless there is a
finding that providing the products or services is in the public interest.
Makes conforming changes.   

SECTION 3.28.  Amends Section 2170.059, Government Code, to make conforming
changes. 

SECTION 3.29.  Amends Chapter 2170B, Government Code, by adding Section
2170.060, as follows: 
 
Sec. 2170.060.  QUARTERLY REPORT.  Requires the department to quarterly
submit a report to the telecommunications planning and oversight council on
certain specific matters. 

SECTION 3.30.  Repealer:  Section 2054.091(e) (relating to the State
Strategic Plan), Government Code. 

SECTION 3.31.  Repealer:  Section 2170.007 (Restriction on Commission
Actions), Government Code. 

SECTION 3.32.  Sets forth provisions pertaining to the transfer, on
September 1, 2001, of certain telecommunications functions, authorities,
and duties from the commission to the department. 

SECTION 3.33.  Requires the commission and the department to establish a
transition plan for the transfer described in Section 3.32 of this Act.
Sets forth items required to be included in the transition plan. 
  
SECTION 3.34. (a)  Provides that the telecommunications planning group is
abolished. 

(b)  Requires the governor, the lieutenant governor, the speaker of the
house of representatives, the comptroller, the commissioner of higher
education, the chancellor of The University of Texas System, and the
chancellor of The Texas A&M University System to make appointments to the
council in accordance with Section 2054.201, Government Code, as amended by
this Act, as soon as possible after September 1, 2001. 

(c)  Provides that any powers, duties, rights, contracts, appropriations,
property, and records of the telecommunications planning group are
transferred to the council as created by this Act. 
 
(d)  Provides that a rule, policy, plan, waiver, standard, requirement, or
guideline of the telecommunications planning group continues in effect as a
rule, policy, plan, waiver, standard, requirement, or guideline of the
council until it is superseded by an act of the council as created by this
Act or until it expires according to its terms or by operation of law. 

 (e)  Provides that the validity of a rule, policy, plan, requirement,
guideline, or procedure adopted, waiver granted, contract or acquisition
made, obligation incurred, right accrued, or other action taken by or in
connection with the authority of the telecommunications planning group
before it is abolished under Subsection (a)  of this section is not
affected by the abolishment. 

SECTION 3.35. Requires the council to issue the first annual report
required under Section 2054.206, Government Code, as amended by this Act,
not later than September 1, 2002. 

ARTICLE 4.  CONTRACTING GUIDELINES

SECTION 4.01.  Amends Chapter 2054C, Government Code, by adding Section
2054.058, as follows: 

Sec. 2054.058.  CONTRACTING GUIDELINES.  (a)  Requires the department with
the assistance of the state auditor's office and the office of the attorney
general to develop contracting guidelines for state agencies.  Requires the
guidelines to be developed to accommodate the varying needs of state
agencies.  Sets forth information the department is required to include in
the guidelines. 

  (b)  Sets forth actions required of the department.
 
(c)  Requires each state agency to comply with the contracting guidelines
developed by the department under this section. 
 
(d)  Provides that the contracting guidelines developed by the department
apply only to procurements made with appropriated money. 

SECTION 4.02.  (a)  Provides that an interagency work group is created to
assist the department in developing contracting guidelines for state agency
use under Section 2054.058, Government Code, as added by this Act. 

 (b)  Sets forth provisions regarding the composition of the work group.

(c)  Provides that the work group expires on September 1, 2002, unless
reconvened by the department, as needed. 

ARTICLE 5.  COMMERCIALLY AVAILABLE ACTIVITIES

SECTION 5.01.  Amends Chapter 2152, Government Code, by adding Subchapter
D, as follows: 

SUBCHAPTER D.  COMMERCIALLY AVAILABLE ACTIVITIES

Sec. 2152.151.  REVIEW PROCESS.  (a)   Requires the commission to develop a
systematic review process to identify commercially available services being
performed by the commission and study the services to determine if they may
be better provided by other state agency providers of the services or
private commercial sources. 

  (b)  Sets forth actions required of the commission in reviewing its
services. 

(c)  Requires each commercially available service performed by the
commission to be reviewed at least once every six years. 

(d)  Requires the commission to consult with the State Council on
Competitive Government as necessary in planning and conducting its reviews
under this subchapter. 
 
Sec. 2152.152.  COST COMPARISON AND CONTRACT CONSIDERATIONS. (a) Requires
the commission to consider all of its direct and indirect costs in
determining the cost of providing a service. 
 
(b)  Requires the commission, in comparing the cost of providing a service,
to include the cost of supervising the work of a private contractor, and
cost to the state of the commission's performance of the service, including
certain specific costs. 

Sec. 2152.153.  CONTRACTING WITH ANOTHER STATE AGENCY OR PRIVATE SOURCE.
(a)  Authorizes the commission, if the commission determines that a service
can be performed with a comparable or better level of quality at a savings
to the state of at least 10 percent by using other state agency providers
of the service or a private commercial source, to contract with other state
agency providers of the services or private commercial sources for the
service. 

(b)  Provides that the commission maintains responsibility for providing a
contracted service.  Requires the commission to set measurable performance
standards for a contractor. 

Sec. 2152.154.  PROHIBITION.  Prohibits the commission from beginning to
provide a service it did not already provide as of September 1, 2001,
unless, after conducting an in-depth analysis on cost in accordance with
Section 2152.152 and on availability of a service, it determines that it
can perform the service at a higher level of quality or at a lower cost
than other state agency providers of the service or private commercial
sources. 

ARTICLE 6.  ELECTRONIC COMMERCE; TRAVEL

SECTION 6.01.  Amends Section 2155.062(a), Government Code, to authorize
the commission, in purchasing goods and services, to use, but not be
limited to, certain procedures. 
  
SECTION 6.02.  Amends Sections 2155.083(c), (d), (f), (k), and (l),
Government Code, to require the commission, rather than the Texas
Department of Commerce, each business day to produce and post a business
daily in an electronic format. Deletes existing text pertaining to certain
information services.  Requires each state agency, rather than the
department and each state agency, to cooperate with the commission in
making the electronic business daily available.  Makes conforming changes. 

SECTION 6.03.  Amends Section 2171.052, Government Code, by adding
Subsection (e), to require the commission to maintain at least one contract
with a provider of travel services that offers reservation and ticketing
services in person or by telephone. 

SECTION 6.04.  Amends Chapter 2171 B, Government Code, by adding Section
2171.0521, as follows: 

Sec. 2171.0521.  ONLINE RESERVATION AND TICKETING SYSTEM.  (a)  Requires
the department, in consultation with the commission, to establish an online
travel reservation and ticketing system for use by state agencies
participating in the commission's contracts for travel services.
Requires the department, in consultation with the commission, to enter into
contracts with private or public entities to establish a secure system for
use by state employees traveling on state business.  Requires the
reservations to be made with a state-issued credit card. 

(b)  Requires the commission, when the online reservation and ticketing
system becomes fully operational, as determined by the department, to
assume management and administrative responsibility for the system.
Requires the commission, in consultation with the department,  to enter
into contracts with private or public entities to maintain all or part of
the system.  
       
 (c)  Provides that the preference in Section 2171.052(c) for a resident
entity of this state does not apply to this section. 

(d)  Authorizes a state agency to use the online reservation and ticketing
system to make travel reservations for  a state employee traveling on state
business. 

 SECTION 6.05.  Amends Chapter 2177, Government Code, read as follows:

CHAPTER 2177.  ELECTRONIC COMMERCE

SUBCHAPTER A.  GENERAL PROVISIONS

Sec. 2177.001.  DEFINITION.  Defines "department."  Redesignates existing
Section 2177.001 as Section 2177.051, with amendments. 

Sec. 2177.002.  SMALL AND HISTORICALLY UNDERUTILIZED BUSINESSES. Requires
the commission and the department to ensure that small and historically
underutilized businesses have maximum access to electronic commerce
opportunities. 

SUBCHAPTER B.  ELECTRONIC PROCUREMENT MARKETPLACE

Sec. 2177.051.  ELECTRONIC PROCUREMENT MARKETPLACE. (a)  Requires the
department, in consultation with the commission, to establish, rather than
establish and manage, an electronic procurement marketplace.  Sets forth
information the marketplace is authorized to contain. 

(c)   Requires the department, in consultation with the commission, to
integrate the centralized master bidders list and the business daily into
the electronic procurement marketplace. 

(e)   Requires the commission, when the electronic procurement marketplace
becomes fully operational, as determined by the department, to assume
management and administrative responsibility for the marketplace.
Authorizes the commission, in consultation with the department, to enter
into contracts with private or public entities to maintain all or part of
the databases comprising the marketplace. 

(g)  Requires, rather than authorizes, a state agency, before developing a
contract for the procurement of a good or service, to use the electronic
procurement marketplace to determine the most appropriate method for
acquiring the good or service. 

  (h)  Sets forth information the marketplace is authorized to contain.
 
 Makes conforming and nonsubstantive changes.

SUBCHAPTER C.  ELECTRONIC COMMERCE NETWORK

Sec. 2177.101.  EXCEPTIONS. (a)   Provides that this subchapter does not
apply to procurements for major construction projects, as defined by the
commission in consultation with the department, such as procurements made
under Chapter 223 (Bids and Contracts for Highway Projects), Transportation
Code.  Requires the commission, in defining a major construction project,
to base its decision on whether the nature of the project, any related
contract or specifications, or other considerations are of a type that
would make electronic procurement inappropriate. 

 (b)  Provides that the exceptions listed under Section 2166.003(a) apply
to this subchapter.          

Sec. 2177.102.  ELECTRONIC COMMERCE NETWORK.  Redesignates existing Section
2177.002 as Section 2177.102.  Authorizes the department, in consultation
with the commission, to adopt rules relating to the design and use of the
electronic commerce network. Deletes existing text pertaining to compliance
with department rules.  Requires each state agency to participate in the
network and participate in contracts entered into by the department or the
commission for the establishment or support of the network.  Deletes
existing text pertaining to capabilities of participation.  Authorizes the
commission to adopt rules relating to the management or support of the
network, rather than to administer this section, and require participating
state agencies, political subdivisions, and other public entities to
designate a network coordinator.  Provides that the requirements of this
subchapter, rather than this section and Section 2177.003, are in addition
to the requirements of other law relating to the solicitation of bids,
proposals, or expressions of interest for a procurement by the commission
or another state agency.  Makes conforming and nonsubstantive changes. 

Sec. 2177.103.  PARTICIPATION BY STATE AGENCIES IN ELECTRONIC COMMERCE
NETWORK.  Redesignates existing Section 2177.003 as Section 2177.103.
Requires each state agency to send to the commission for posting on the
electronic commerce network information on each procurement contract the
commission, in consultation with the department, determines is appropriate
for electronic procurement in a certain manner, including certain
procurements.  Deletes existing text pertaining to an agency's purchasing
authority. 

SECTION 6.06.  Repealer:  Section 2155.083(b) (relating to the definition
of "department"), Government Code. 

SECTION 6.07.  Sets forth provisions pertaining to the transfer, on
September 1, 2001, of certain functions, authorities, and duties from the
commission to the department. 

SECTION 6.08.    Sets forth provisions regarding the administration of the
transfer prescribed by this article. 

SECTION 6.09.  Provides that once the electronic procurement marketplace
and the electronic commerce network under Chapter 2177, Government Code,
and the online reservation and ticketing system under Chapter 2171,
Government Code, become fully operational as determined by the department,
all funds, obligations, contracts, property, and records of the department
related to the marketplace, network, and system become the funds,
obligations, contracts, property, and records of the commission. 
 
SECTION 6.10.  Sets forth provisions pertaining to the transfer, on
September 1, 2001, of certain functions, authorities, and duties from the
Texas Department of Economic Development to the commission. 

SECTION 6.11.  Requires the department to have the online reservation and
ticketing system created under Section 2171.0521, Government Code, as added
by this Act, fully operational by September 1, 2002.  

ARTICLE 7.  STATE CEMETERY

SECTION 7.01.  Amends Section 2165.256(a), Government Code, to require the
State Cemetery Committee (committee) to develop a budget for the operations
of the committee relating to the State Cemetery and determine the salary of
employees of the committee whose duties primarily relate to the operation
of the State Cemetery. 
 
 SECTION 7.02.  Amends Section 2165.2561, Government Code, by amending
Subsection (k) and adding Subsections (n)-(u), as follows: 

(k)  Requires the legislature to separately appropriate money to the
committee within the appropriations to the commission for all matters
relating to the operation of the State Cemetery. Deletes existing text
regarding funds appropriated and budgeted by the commission. 

(n)  Sets forth certain conditions that are grounds for a member's removal
from the committee. 

(o)  Provides that the validity of an action of the committee is not
affected by the fact that it is taken when a ground for removal of a
committee member exists. 
 
(p)  Requires the executive director, if the executive director of the
commission has knowledge that a potential ground for removal exists, to
notify the presiding officer of the committee of the potential ground.
Requires the presiding officer to then notify the governor and the attorney
general that a potential ground for removal exists.  Requires the executive
director, if the potential ground for removal involves the presiding
officer, to notify the next highest ranking officer of the committee, who
is required to then notify the governor and the attorney general that a
potential ground for removal exists. 
 
(q)  Requires the executive director of the commission or the executive
director's designee to provide to members of the committee, as often as
necessary, information regarding the requirements for office under this
chapter, including information regarding a person's responsibilities under
applicable laws relating to standards of conduct for state officers. 
 
(r)  Prohibits a person who is appointed to and qualifies for office as a
member of the committee from voting, deliberating, or being counted as a
member in attendance at a meeting of the committee until the person
completes a training program that complies with this subsection.  Sets
forth certain information the training program must provide the person. 
 
(s)  Provides that a person appointed to the committee is entitled to
reimbursement, as provided by Chapter 660 and the General Appropriations
Act, for the travel expenses incurred in attending the training program
regardless of whether the attendance at the program occurs before or after
the person qualifies for office. 

(t)  Requires the committee to develop and implement policies that clearly
separate the policymaking responsibilities of the committee and the
management responsibilities of the executive director of the commission and
staff of the cemetery. 
 
(u)  Requires the committee to develop and implement policies that provide
the public with a reasonable opportunity to appear before the committee and
to speak on any issue under the jurisdiction of the committee. 
 
SECTION 7.03.  (a)  Provides that the changes in law made by this Act in
the prohibitions and qualifications applying to members of the committee do
not affect the entitlement of a member serving on the committee immediately
before September 1, 2001, to continue to serve and function as a member of
the committee for the remainder of the member's term.  Provides that the
changes in law apply only to a member appointed on or after September 1,
2001. Provides that this Act does not prohibit a person who is a member of
the committee immediately before September 1, 2001, from being reappointed
as a committee member if the person has the qualifications required for the
position under Chapter 2165, Government Code, as amended by this Act. 
 
(b)  Provides that Section 2165.2561(r), Government Code, as added by this
Act, does not apply to a member of the committee until March 1, 2002. 
 
 SECTION 7.04.  Provides that the changes in law made by this Act to the
State Cemetery's budget and appropriations process apply beginning with the
fiscal year beginning on September 1, 2003. 

ARTICLE 8.  CONTRACTING METHODS FOR CONSTRUCTION
OF STATE FACILITIES
 
SECTION 8.01.  Amends Chapter 2166F, Government Code, by adding Section
2166.2511, as follows: 

Sec. 2166.2511.  DEFINITIONS.  Defines "architect," "contractor,"
"engineer," "facility," "fee," and "general conditions." 
 
SECTION 8.02.  Amends Chapter 2166F, Government Code, by adding Section
2166.2525, as follows: 

Sec. 2166.2525.  DETERMINATION OF CONTRACTING METHOD.  Requires the
commission to adopt rules that determine the circumstances for use of each
method of contracting allowed under this subchapter for design and
construction services.  Requires the commission, in developing the rules,
to solicit advice and comment from design and construction professionals
regarding the criteria the commission will use in determining which
contracting method is best suited for a project. 
 
SECTION 8.03.  Amends Chapter 2166F, Government Code, by adding Section
2166.2526, as follows: 
 
Sec. 2166.2526.  EVALUATION OF BIDS AND PROPOSALS FOR CONSTRUCTION
SERVICES.  (a)  Requires the commission, for each project, to establish,
before advertising, which method of contracting provides the best value for
the commission or using agency. 

(b)  Requires the commission, under each method of contracting, to base its
selection among the offerors on criteria established by the commission.
Requires the commission to publish in the request for bids, proposals, or
qualifications the criteria that will be used to evaluate the offerors. 
 
(c)  Requires the commission to document the basis of its selection of an
offeror and to make the evaluations public not later than the seventh day
after the date the contract is awarded. 
 
SECTION 8.04.  Amends Section 2166.253, Government Code, as follows:

Sec. 2166.253.  New heading:  LOWEST AND BEST BID METHOD.  (a)  Authorizes
the commission to use the lowest and best bid method for a project.
Requires the commission, in using that method, to follow the procedures
provided by Subsections (b)-(g).   

Reletters existing text of Subsections (a) - (d) as Subsections (b) - (e)
and makes conforming changes. 

(f)  Requires a contract to be awarded to the qualified bidder making the
lowest and best bid in accordance with the law on awarding a state
contract. 

  (g)  Authorizes the commission to reject all bids.
 
SECTION 8.05.  Amends Chapter 2166F, Government Code, by adding Section
2166.2531, as follows: 
 
 Sec. 2166.2531.  DESIGN-BUILD METHOD.  (a)  Defines "design-build
contract," "design-build firm," and "design criteria package." 

(b)  Authorizes the commission to use the design-build method for a
project.  Requires the commission and the design-build firm, in using that
method and in entering into a contract for the services of a design-build
firm, to follow the procedures provided by Subsections (c)-(k). 

(c)  Authorizes the commission to designate an engineer or architect to act
as its representative.  Requires any engineer or architect designated, if
the commission's engineer or architect is not a full-time employee of the
commission, to be selected on the basis of demonstrated competence and
qualifications in accordance with Chapter 2254A. 

(d)  Requires the commission to prepare a request for qualifications that
includes general information on the project site, project scope, budget,
special systems, selection criteria, and other information that may assist
potential design-build firms in submitting proposals for the project.
Requires the commission to also prepare a design criteria package that
includes more detailed information on the project.  Requires that if the
preparation of the design criteria package requires engineering or
architectural services that constitute certain practices of engineering or
architecture, those services must be provided in accordance with the
applicable law. 

(e)  Requires the commission or its representative to publish the request
for qualifications in a manner prescribed by the commission. 

 
(f)(1)  Requires the commission or its representative to evaluate
statements of qualifications and select a design-build firm in two phases. 

(2)  Requires, in phase one, the commission or its representative to
prepare a request for qualifications and evaluate each offeror's
experience, technical competence, and capability to perform, the past
performance of the offeror's team and members of the team, and other
appropriate factors submitted by the team or firm in response to the
request for qualifications, except that cost-related or price-related
evaluation factors are not permitted.  Requires each offeror to certify to
the commission that each engineer or architect that is a member of its team
was selected based on demonstrated competence and qualifications.  Requires
the commission or its representative to qualify a maximum of five offerors
to submit additional information and, if the commission or its
representative chooses, to interview for final selection. 

(3)  Requires, in phase two, the commission or its representative to
evaluate the information submitted by the offerors on the basis of the
selection criteria stated in the request for qualifications and the results
of any interview.  Authorizes the commission or its representative to
request additional information regarding demonstrated competence and
qualifications, considerations of the safety and long-term durability of
the project, the feasibility of implementing the project as proposed, the
ability of the offeror to meet schedules, costing methodology, or other
factors as appropriate.  Prohibits the commission or its representative
from requiring offerors to submit detailed engineering or architectural
designs as part of the proposal.  Requires the commission or its
representative to rank each proposal submitted on the basis of the criteria
specified in the request for qualifications.  Requires the commission or
its representative to select the design-build firm that submits the
proposal offering the best value for the  commission or using agency on the
basis of the published selection criteria and on its ranking evaluations.
Requires the commission or its representative to first attempt to negotiate
a contract with the selected offeror.  Requires the commission, if the
commission or its representative is unable to negotiate a satisfactory
contract with the selected offeror, to end, formally and in writing, all
negotiations with that offeror and proceed to negotiate with the next
offeror in the order of the selection ranking until a contract is reached
or negotiations with all ranked offerors end. 
 
(g)  Requires the engineers or architects of a design-build firm selected
under Subsection (f), following the selection of that firm, to complete the
design, submitting all design elements for review and determination of
scope compliance by the commission's engineer or architect before or
concurrently with the beginning of construction. 
 
(h)  Requires an engineer to have responsibility for compliance with
certain engineering design requirements and all other applicable
requirements of The Texas Engineering Practice Act, Article 3271a,
V.T.C.S..  Requires an architect to have responsibility for compliance with
the requirements of Chapter 478 (Regulation of Practice of Architecture),
Acts of the 45th Legislature, Regular Session, 1937 (Article 249a,
V.T.C.S.). 
 
(i)  Requires the commission to provide or contract for, independently of
the design-build firm, the inspection services, the testing of construction
materials engineering, and the verification testing services necessary for
acceptance of the facility by the commission.  Requires the commission to
select those services for which it contracts in accordance with Section
2254.004. 
 
(j)  Requires the design-build firm to supply a signed and sealed set of
construction documents for the project to the commission at the conclusion
of construction. 
 
(k)  Provides that a payment or performance bond is not required for, and
is prohibited from providing coverage for, the portion of a design-build
contract under this section that includes design services only.  Requires
the penal sums of the performance and payment bonds delivered to the
commission, if a fixed contract amount or guaranteed maximum price has not
been determined at the time a design-build contract is awarded, to each be
in an amount equal to the project budget, as specified in the design
criteria package.  Requires the design-build firm to deliver the bonds not
later than the 10th day after the date the design-build firm executes the
contract unless the design-build firm furnishes a bid bond or other
financial security acceptable to the commission to ensure that the
design-build firm will furnish the required performance and payment bonds
when a guaranteed maximum price is established. 
 
SECTION 8.06.  Amends Chapter 2166F, Government Code, by adding Section
2166.2532, as follows: 

Sec. 2166.2532.  CONSTRUCTION MANAGER-AT-RISK METHOD.  (a)  Authorizes the
commission to use the construction manager-at-risk method for a project.
Requires the commission, in using that method and in entering into a
contract for the services of a construction manager-at-risk, to follow the
procedures prescribed by this section. 

(b)  Provides that a construction manager-at-risk is a sole proprietorship,
partnership, corporation, or other legal entity that assumes the risk for
construction, rehabilitation, alteration, or repair of a facility at the
contracted price as a general contractor and provides consultation to the
commission regarding construction during and after the design of the
facility. 

(c)  Requires the commission, before or concurrently with selecting a
construction  manager-at-risk, to select or designate an engineer or
architect who is required to prepare the construction documents for the
project and who has full responsibility for complying with Article 3271a,
V.T.C.S., or Article 249a, V.T.C.S., as applicable. Requires the
commission, if the engineer or architect is not a full-time employee of the
commission, to select the engineer or architect on the basis of
demonstrated competence and qualifications as provided by Section 2254.004.
Prohibits the commission's engineer or architect for a project from
serving, alone or in combination with another, as the construction
manager-at-risk. 
 
(d)  Requires the commission to provide or contract for, independently of
the construction manager-at-risk, the inspection services, the testing of
construction materials engineering, and the verification testing services
necessary for acceptance of the facility by the commission.  Requires the
commission to select those services for which it contracts in accordance
with Section 2254.004. 

(e)  Requires the commission to select the construction manager-at-risk in
either a one-step or two-step process.  Requires the commission to prepare
a request for proposals, in the case of a one-step process, or a request
for qualifications, in the case of a two-step process, that includes
general information on the project site, project scope, schedule, selection
criteria, estimated budget, and the time and place for receipt of proposals
or qualifications, as applicable; a statement as to whether the selection
process is a one-step or two-step process; and other information that may
assist the commission in its selection of a construction manager-at-risk.
Requires the commission to state the selection criteria in the request for
proposals or qualifications, as applicable. Authorizes the selection
criteria to include the offeror's experience, past performance, safety
record, proposed personnel and methodology, and other appropriate factors
that demonstrate the capability of the construction manager-at-risk.
Authorizes the commission, if a one-step process is used, to request, as
part of the offeror's proposal, proposed fees and prices for fulfilling the
general conditions.  Prohibits the commission, if a two-step process is
used, from requesting fees or prices in step one.  Authorizes the
commission, in step two, to request that five or fewer offerors, selected
solely on the basis of qualifications, provide additional information,
including the construction manager-at-risk's proposed fee and its price for
fulfilling the general conditions. 
 
(f)  Requires the commission to publish the request for qualifications in a
manner prescribed by the commission. 

(g)  Requires the commission, at each step, to receive, publicly open, and
read aloud the names of the offerors.  Requires the commission, at the
appropriate step, to also read aloud the fees and prices, if any, stated in
each proposal as the proposal is opened.  Requires the commission or its
representative, within 45 days after the date of opening the proposals, to
evaluate and rank each proposal submitted in relation to the criteria set
forth in the request for proposals. 

(h)  Requires the commission or its representative to select the offeror
that submits the proposal that offers the best value for the commission or
using agency based on the published selection criteria and on its ranking
evaluation.  Requires the commission or its representative to first attempt
to negotiate a contract with the selected offeror. Requires the commission
or its representative, if the commission or its representative is unable to
negotiate a satisfactory contract with the selected offeror, to end
negotiations, formally and in writing, with that offeror and proceed to
negotiate with the next offeror in the order of the selection ranking until
a contract is reached or negotiations with all ranked offerors end. 

(i)  Requires a construction manager-at-risk to publicly advertise, in the
manner  prescribed by the commission, and receive bids or proposals from
trade contractors or subcontractors for the performance of all major
elements of the work other than the minor work that may be included in the
general conditions.  Authorizes a construction manager-at-risk to seek to
perform portions of the work itself if the construction manager-at-risk
submits its bid or proposal for those portions of the work in the same
manner as all other trade contractors or subcontractors and if the
commission determines that the construction manager-at-risk's bid or
proposal provides the best value for the commission or using agency. 

(j)  Requires the construction manager-at-risk and the commission or its
representative to review all trade contractor or subcontractor bids or
proposals in a manner that does not disclose the contents of the bid or
proposal during the selection process to a person not employed by the
construction manager-at-risk, engineer, architect, or commission. Requires
all bids or proposals to be made public after the award of the contract or
within seven days after the date of final selection of bids and proposals,
whichever is later. 

(k)  Requires the commission, if the construction manager-at-risk reviews,
evaluates, and recommends to the commission a bid or proposal from a trade
contractor or subcontractor but the commission requires another bid or
proposal to be accepted, to compensate the construction manager-at-risk by
a change in price, time, or guaranteed maximum cost for any additional cost
and risk that the construction manager-at-risk may incur because of the
commission's requirement that another bid or proposal be accepted. 

(l)  Authorizes the construction manager-at-risk, if a selected trade
contractor or subcontractor defaults in the performance of its work or
fails to execute a subcontract after being selected in accordance with this
section, to itself fulfill, without advertising, the contract requirements
or select a replacement trade contractor or subcontractor to fulfill the
contract requirements. 

(m)  Provides that if a fixed contract amount or guaranteed maximum price
has not been determined at the time the contract is awarded, the penal sums
of the performance and payment bonds delivered to the commission must each
be in an amount equal to the project budget, as set forth in the request
for qualifications.  Requires the construction manager-at-risk to deliver
the bonds not later than the 10th day after the date the construction
manager-at-risk executes the contract unless the construction
manager-at-risk furnishes a bid bond or other financial security acceptable
to the commission to ensure that the construction manager-at-risk will
furnish the required performance and payment bonds when a guaranteed
maximum price is established. 
 
SECTION 8.07.  Amends Chapter 2166F, Government Code, by adding Section
2166.2533, as follows: 

Sec. 2166.2533.  COMPETITIVE SEALED PROPOSAL METHOD.  (a)  Authorizes the
commission to select a contractor for a project using the competitive
sealed proposal method prescribed by this section. 

(b)  Requires the commission to select or designate an engineer or
architect to prepare construction documents for the project.  Provides that
the selected or designated engineer or architect has full responsibility
for complying with Article 3271a, V.T.C.S., or Article 249a,V.T.C.S., as
applicable.  Requires the commission, if the engineer or architect is not a
full-time employee of the commission, to select the engineer or architect
on the basis of demonstrated competence and qualifications as provided by
Section 2254.004. 
 
(c)  Requires the commission to provide or contract for, independently of
the contractor, the inspection services, the testing of construction
materials engineering, and the verification testing services necessary for
acceptance of the facility by the commission.  Requires the commission to
select those services for which it contracts in accordance with Section
2254.004 and to identify them in the request for proposals. 

(d)  Requires the commission to prepare a request for competitive sealed
proposals that includes construction documents, selection criteria,
estimated budget, project scope, schedule, and other information that
contractors may require to respond to the request. Requires the commission
to state in the request for proposals the selection criteria that will be
used in selecting the successful offeror. 

(e)  Requires the commission to publish notice of the request for proposals
in a manner prescribed by the commission. 

(f)  Requires the commission to receive, publicly open, and read aloud the
names of the offerors and, if any are required to be stated, all prices
stated in each proposal. Requires the commission, within 45 days after the
date of opening the proposals, to evaluate and rank each proposal submitted
in relation to the published selection criteria. 

(g)  Requires the commission to select the offeror that offers the best
value for the commission or using agency based on the published selection
criteria and on its ranking evaluation.  Requires the commission to first
attempt to negotiate a contract with the selected offeror.  Authorizes the
commission and its engineer or architect to discuss with the selected
offeror options for a scope or time modification and any price change
associated with the modification.  Requires the commission, if the
commission is unable to reach a contract with the selected offeror, to end
negotiations, formally and in writing, with that offeror and proceed to the
next offeror in the order of the selection ranking until a contract is
reached or all proposals are rejected. 

(h)  Provides that the commission, in determining the best value for the
commission or using agency, is not restricted to considering price alone
but is authorized to consider any other factor stated in the selection
criteria. 
 
SECTION 8.08.  Amends Section 2166.255, Government Code, as follows:

Sec. 2166.255.  New heading:  AMOUNT OF CONTRACT.  Deletes existing
Subsections (a) and (b) regarding the award of a contract. 
 
SECTION 8.09.  Makes application of the changes in law made by this Act to
the commission's contract procedures, prospective to September 1, 2001. 

ARTICLE 9.  LEASING OF STATE OFFICE SPACE
 
SECTION 9.01.  Amends Chapter 2167A, Government Code, by adding Section
2167.0021, as follows: 

Sec. 2167.0021.  BEST VALUE STANDARD FOR LEASE OF SPACE. (a)  Requires the
commission to lease space for the use of a state agency on the basis of
obtaining the best value for the state. 

(b)  Requires the commission to adopt rules establishing guidelines for the
determination of best value in a lease contract.  Sets forth items the
commission is authorized to consider in determining the best value. 

 (c)  Provides that this section does not prohibit the commission from
leasing space from the offeror that offers the space at the lowest cost if
the commission determines that doing so obtains the best value for the
state. 
 
SECTION 9.02.  Amends Section 2167.003, Government Code, to require the
commission or the private brokerage or real estate firm assisting the
commission, in leasing space for the use of a state agency, to give first
consideration to a building that is designated as a historic structure
under Section 442.001 or to a building that has been designated a landmark
by a local governing authority, if certain conditions are met.  Requires
the commission, at the end of a biennium, to report to the legislature the
commission's reasons for rejecting during the biennium the lease of any
historic structure that was offered as, rather than in a bid to, lease
space to the state.  Makes a conforming change. 
 
SECTION 9.03.  Amends Section 2167.005, Government Code, as follows:

Sec. 2167.005.  New heading:  DELEGATION OF AUTHORITY TO STATE AGENCIES.
Authorizes the commission to delegate to a state agency, including an
institution of higher education, the authority to enter into lease
contracts for space.  Deletes existing text regarding payments made from
money other than appropriations from the general revenue fund.  Deletes
existing text regarding an institution of higher education. 
 
SECTION 9.04.  Amends Section 2167.006(b), Government Code, to make
conforming changes.  
 
SECTION 9.05.  Amends Section 2167.052, Government Code, by amending
Subsection (a) and adding Subsection (c), to authorize space to be leased
from a private source through certain processes, including direct
negotiation.  Requires the commission to use the method for leasing space
that provides the best value for the state. 
 
SECTION 9.06.  Amends Sections 2167.053(a) and (c), Government Code, to
require the commission, when space is leased through competitive bidding,
to determine the bid that provides the best value for the state, rather
than the lowest and best bid, after considering moving costs, the cost of
time lost in moving, the cost of telecommunications services, and other
relevant factors.  Makes conforming changes. 
 
SECTION 9.07.  Amends Sections 2167.054(a), (g), and (i), Government Code,
to delete existing text regarding competitive bidding.  Requires the
commission to make a written award of a lease to the offeror whose proposal
provides the best value for, rather than is the most advantageous to, the
state, considering price and the evaluation factors in the request for
proposals.  Deletes existing text regarding the use of other factors or
criteria.  Requires a state agency, if the competitive sealed proposal
procedure for leasing space is used by the state agency, rather than an
institution of higher education, that has been delegated leasing authority
under Section 2167.005, to follow the procedures outlined by this section
and any rules adopted by the commission. 
 
SECTION 9.08.  Amends Chapter 2167B, Government Code, by adding Section
2167.0541, as follows: 

Sec. 2167.0541.  USE OF PRIVATE FIRMS TO OBTAIN SPACE.  Authorizes the
commission to contract with one or more private brokerage or real estate
firms to assist the commission in obtaining lease space for state agencies
on behalf of the commission under this chapter.  Authorizes a private
brokerage or real estate firm with which the commission contracts under
Subsection (a) to assist the commission in leasing facilities under this
chapter. 
 
SECTION 9.09.  Amends Section 2167.055(b), Government Code, to requires a
lease contract entered into under Section 2167.053 or 2167.054 to reflect
the provisions contained in the invitation for bids or request for
proposals, the successful bid or proposal, and the award of the contract. 
 
 SECTION 9.10.  Amends Chapter 2167C, Government Code, by adding Sections
2167.105 and 2167.106, as follows: 

Sec. 2167.105.  REPORT ON NONCOMPLIANCE.  Requires the commission, if the
commission determines that a state agency has not complied with the
commission's rules or with other state law related to leasing requirements,
to report the noncompliance to the members of the state agency's governing
body and to the governor, lieutenant governor, and speaker of the house of
representatives.  Requires the commission to include in its report an
estimate of the fiscal impact resulting from the noncompliance. 

Sec. 2167.106.  ANNUAL REPORT.  Requires the staff of the commission to
annually submit a report to the commission regarding opportunities for
delegating leasing authority to state agencies with statewide operations.
Requires the report to include comments from state agencies with statewide
operations. 
 
SECTION 9.11.  Provides that a lease contract entered into by the
commission before September 1, 2001, under Chapter 2167, Government Code,
is governed during the remaining term of the lease by Chapter 2167,
Government Code, as it existed immediately before September 1, 2001, and
the prior law is continued in effect for this purpose.  Provides that
Chapter 2167, Government Code, as amended by this Act, applies to the
renewal of a lease described by this section. 

ARTICLE 10.  SURPLUS PROPERTY
 
SECTION 10.01.  Amends Section 2175.065, Government Code, to authorize the
commission to authorize a state agency to dispose of surplus or salvage
property if the agency demonstrates to the commission its ability to
dispose of the property under Subchapters C and E in a manner that results
in cost savings to the state, under commission rules adopted under this
chapter.  Requires the commission to establish by rule the criteria for
determining that a delegation of authority to a state agency results in
cost savings to the state. 
 
SECTION 10.02.  Amends Chapters 2175C and 2175D, Government Code, as
follows: 

SUBCHAPTER C. New heading:  DIRECT TRANSFER OR OTHER DISPOSITION OF SURPLUS
OR SALVAGE PROPERTY BY STATE AGENCY 

Sec. 2175.121.  New heading:  APPLICABILITY.  Provides that this subchapter
applies only to surplus or salvage property to which Subchapter D does not
apply.   

 Redesignates existing Section 2175.121 as Section 2175.122.  

Sec. 2175.123.  DETERMINING METHOD OF DISPOSAL.  Requires a state agency,
based on the condition of the property, to determine whether the property
is surplus property that should be offered for transfer under Section
2175.125 or sold to the public or whether it is salvage property, and
inform the commission of its determination. 

Redesignates Sections 2175.122 - 2175.126 as Sections 2175.124 - 2175.128
with the following amendments. 

Sec. 2175.124.  Requires the commission, after a determination that, rather
than on receiving notice from, a state agency has surplus property, rather
than surplus or salvage property, to inform other state agencies, political
subdivisions, and assistance organizations of the property's kind, number,
location, and condition. 
 
 Sec. 2175.125.  Makes a conforming change.
 
  Sec. 2175.127.  Makes a conforming change.
 
Sec. 2175.128.  Requires a state agency, if a disposition of the state
agency's surplus or salvage data processing equipment is not made under
Section 2175.125 or 2175.184, rather than this subchapter, to transfer the
equipment to the Texas Department of Criminal Justice. Prohibits the state
agency from collecting a fee or other reimbursement from the Texas
Department of Criminal Justice for the surplus or salvage data processing
equipment. 

 Deletes the title to Subchapter D and adds a new Subchapter D at a
location to follow. 
 
Redesignates Section 2175.181 as Section 2175.129 with the following
amendments.  
 
Sec. 2175.129.  New heading:  DISPOSITION BY COMPETITIVE BIDDING, AUCTION,
OR DIRECT SALE.  Requires the commission, if a disposition of a state
agency's surplus property is not made under Section 2175.125, rather than
Subchapter C, to sell the property by competitive bid, auction, or direct
sale to the public, or delegate to the state agency authority to sell the
property by competitive bid, auction, or direct sale to the public, rather
than bidding.  Requires the commission or a state agency to which authority
is delegated under Subsection (a)(2) or under Section 2175.065 to determine
which method of sale shall be used based on the method that is most
advantageous to the state under the circumstances.  Requires the commission
to adopt rules establishing guidelines for making that determination.
Makes conforming and nonsubstantive changes. 
 
Sec. 2175.130.  DISPOSITION BY DIRECT SALE TO PUBLIC. (a)  Authorizes the
commission or a state agency, if the commission or agency to which
authority is delegated under Section 2175.129(a)(2) or 2175.065 determines
that selling the property by competitive bid or auction would not maximize
the resale value of the property to the state, to sell surplus or salvage
property directly to the public.  Requires the commission, in cooperation
with the state agency that declared the property as surplus, or a state
agency to which authority is delegated under Section 2175.129(a)(2) or
2175.065 to set a fixed price for the property. 

Redesignates existing Sections 2175.182 - 2175.186 as Sections 2175.131 -
2175.135 with the following amendments. 
 
Sec. 2175.131.  Requires the commission or a state agency disposing of
property by a method other than direct transfer under this subchapter to
collect a fee from the purchaser.  Requires the commission or state agency
to set the fee at an amount that meets certain criteria. 
 
Sec. 2175.134.  Requires proceeds from the sale of surplus or salvage
property, less the cost of advertising the sale, the cost of selling the
surplus or salvage property, including the cost of auctioneer services, and
the amount of the fee collected under Section 2175.131, to be deposited to
the credit of the appropriate appropriation item of the state agency for
which the sale was made.  Makes conforming changes. 
 
 Sec. 2175.135.  Makes conforming changes. 

SUBCHAPTER D.  DISPOSITION OF SURPLUS OR SALVAGE PROPERTY BY
COMMISSION

Sec. 2175.181.  APPLICABILITY.  Provides that this subchapter applies only
to surplus and salvage property located in certain counties.  Provides that
this subchapter does not apply to a state agency delegated the authority to
dispose of surplus or salvage property under Section 2175.065. 

Sec. 2175.1815.  ALTERNATIVE APPLICABILITY.  Provides that this subchapter,
notwithstanding Section 2175.181, until January 1, 2003, applies only to a
state agency selected by the commission to participate in the disposal
process created under this subchapter. Provides that Subchapter C applies
to a state agency that is not selected by the commission to participate
under this subchapter.  Provides that this section expires January 1, 2003. 

Sec. 2175.182.  STATE AGENCY TRANSFER OF PROPERTY TO COMMISSION. Provides
that the commission is responsible for the disposal of surplus or salvage
property under this subchapter.  Authorizes the commission to take physical
possession of the property. Provides that a state agency maintains
ownership of property throughout the disposal process. Requires the
commission, based on the condition of the property, to determine whether
the property is surplus property that should be offered for transfer under
Section 2175.184 or sold to the public or whether it is salvage property.
Requires the commission to cooperate with the comptroller's office to
ensure the accurate designation and tracking of the property. 

Sec. 2175.183.  COMMISSION NOTICE TO OTHER ENTITIES.  Requires the
commission, on taking responsibility for surplus property under this
subchapter, to inform other state agencies, political subdivisions, and
assistance organizations of the property's kind, number, location, and
condition. 

Sec. 2175.184.  DIRECT TRANSFER.  Authorizes a state agency, political
subdivision, or assistance organization, during the 30 days following
dissemination of information under Section 2175.183, to coordinate with the
commission for a transfer of the property at a price established by the
commission in cooperation with the transferring agency.  Provides that a
transfer to a state agency has priority over any other transfer during this
period. 

Sec. 2175.185.  NOTICE OF TRANSFER TO COMPTROLLER; ADJUSTMENT OF
APPROPRIATIONS AND PROPERTY ACCOUNTING RECORDS.  Requires a participating
state agency, if property is transferred to the state agency under Section
2175.184, to report the transaction to the comptroller.  Requires the
comptroller, on receiving notice under this section, to, if necessary,
debit and credit the proper appropriations and adjust state property
accounting records. 

Sec. 2175.186.  DISPOSITION BY COMPETITIVE BIDDING, AUCTION, OR DIRECT
SALE.  Requires the commission, if a disposition of a state agency's
surplus property is not made under Section 2175.184, to sell the property
by competitive bid, auction, or direct sale to the public.  Requires the
commission to determine which method of sale shall be used based on the
method that is most advantageous to the state under the circumstances.
Requires the commission to adopt rules establishing guidelines for making
that determination. 
 
Sec. 2175.187.  DISPOSITION BY DIRECT SALE TO PUBLIC.  Authorizes the
commission, if the commission determines that selling the property by
competitive bid or auction would not maximize the resale value of the
property to the state, to sell surplus property directly to the public.
Requires the commission to set a fixed price for the property in
cooperation with the state agency that owns the property. 
 
Sec. 2175.188.  PURCHASER'S FEE.  Requires the commission, for property
that is sold under Section 2175.186 or 2175.187, to collect a fee from the
purchaser.  Requires the commission to set the fee at an amount that meets
certain criteria. 
 
Sec. 2175.189.  ADVERTISEMENT OF SALE.  Requires the commission, if the
value of an item or a lot of property to be sold is estimated to be more
than $5,000, to advertise the sale at least once in at least one newspaper
of general circulation in the vicinity in which the property is located. 
 
Sec. 2175.190.  REPORTING SALE; PROPERTY ACCOUNTING ADJUSTMENT. (a)
Requires the commission, on the sale by the commission of surplus or
salvage property, to report the property sold and the sale price to the
state agency that owned the property and to the comptroller.  Requires the
comptroller, if property reported under this section is on the state
property accounting system, to remove the property from the property
accounting records. 
 
Sec. 2175.191.  PROCEEDS OF SALE.  Requires proceeds from the sale of
surplus or salvage property, less the cost of advertising the sale, the
cost of selling the surplus or salvage property, including the cost of
auctioneer services, and the amount of the fee collected under Section
2175.188, to be deposited to the credit of the appropriate appropriation
item of the state agency for which the sale was made.  Requires the portion
of sale proceeds equal to the cost of advertising the sale and the cost of
selling the surplus or salvage property, including the cost of auctioneer
services, if any, to be deposited in the state treasury to the credit of
the appropriation item of the commission. 
 
Sec. 2175.192.  PURCHASER'S TITLE.  Provides that a purchaser of surplus
property at a sale conducted under Section 2175.186 or 2175.187 obtains
good title to the property if the purchaser has in good faith complied with
the conditions of the sale and applicable commission rules. 
 
Sec. 2175.193.  CONTRACTS FOR DESTRUCTION OF PROPERTY.  Requires the
commission to contract for the disposal of property under Subchapter E in a
manner that maximizes value to the state. 
 
SECTION 10.03.  Provides that this article takes effect January 1, 2002.

ARTICLE 11.  PAPER RECYCLING PROGRAM
 
SECTION 11.01.  Amends Section 2175.902, Government Code, as follows:

Sec. 2175.902.  New heading:  MANDATORY PAPER RECYCLING PROGRAM.  (a)
Requires the commission to establish a mandatory recycling program for a
state agency that occupies a building under its control.  Deletes existing
text regarding a recycling program in each building and procedures for
collecting all paper recycling.  Requires the commission, by rule, to: 

    _establish guidelines and procedures for collecting and recycling of
paper; 

     _set recycling goals and performance measures;

     _require state agencies to designate a recycling coordinator;

     _provide employee and custodial education and training;

     _provide feedback and recognition to state agencies when appropriate;
and 

     _inform state agencies when proper recycling methods are not used.

(b)  Authorizes the commission, if the commission finds that a state
agency's recycling program meets or exceeds the standards created under
Subsection (a), to delegate its responsibility under this section, rather
than subsection, to a state agency located in a, rather than each, building
under its control. 
 
(c)  Reletters existing text of Subsection (b) as Subsection (c).  Requires
the commission or a state agency with delegated responsibility under
Subsection (b), rather than Subsection (a), to sell the paper for recycling
to the highest bidder. 
  
  (d)  Authorizes the commission to enter into an interagency agreement to
provide   recycling services to a state agency otherwise excluded from the
program. 

ARTICLE 12.  EFFECTIVE DATE
 
SECTION 12.01.  Effective date: September 1, 2001, except as otherwise
provided by this Act.