SRC-SEW C.S.S.B. 1366 77(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 1366
77R13954 BDH-DBy: Van de Putte
State Affairs
5/1/2001
Committee Report (Substituted)


DIGEST AND PURPOSE 

Currently, the "best value to the state" standard in awarding state
contracts only requires the purchase price and whether the goods or
services meet specifications to be considered.  The standard does not
require a state agency to contemplate what the economic impact to the state
might be if jobs or revenue are gained or lost as a result of the awarding
of that procurement contract to out-of-state vendors who make no long-term
economic investment in Texas.  C.S.S.B. 1366 amends several sections of the
Government Code to require that in certain instances preference be given to
Texas bidders in awarding contracts for the procurement of goods and
services for government entities. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 2155.074(b), Government Code, to provide that,
in determining the best value for the state, the purchase price, whether
the goods or services meet specifications, and the anticipated economic
impact on the state, including sales, ad valorem tax revenue, and any gain
or loss of jobs, are the most important considerations.   

SECTION 2.  Amends Chapter 2155H, Government Code, by adding Section
2155.4439, as follows: 

Sec. 2155.4439.  PREFERENCE TO TEXAS BIDDERS.  (a) Authorizes the General
Services Commission (commission) and all state agencies procuring goods or
services to give preference to a Texas bidder if certain conditions are
met. 

(b) Requires the procuring agency, for each contemplated procurement that
will have a value greater than $100 million to promptly inform the
comptroller of the contemplated procurement.  Requires the comptroller to
complete a tax revenue analysis before a certain date and complete the
requested analysis not later than the 14th day after the date of receipt of
all information necessary to conduct the analysis. 

(c) Provides that, in the event of a conflict between this section and
Section 2252.002 (Award of Contract to Nonresident Bidder), this section
controls. 

  (d) Defines "Texas bidder."

SECTION 3.  Amends Section 466.105(a), Government Code, to provide that a
contract for the acquisition or provision of facilities, supplies,
equipment, materials, or services related to the operation of the lottery
is not subject to Subtitle D, Title 10, except that Section 2155.4439
applies to the contract. 

SECTION 4.  Amends Sections 2155.444(a) and (b), Government Code, as
follows: 
 
(a) Requires the commission and all state agencies making purchases of
goods, including agricultural products, to the extent consistent with
Section 2155.4439, to give preference to certain goods produced or grown in
this state or offered by Texas bidders, under certain conditions. 

(b) Requires that, except as provided by Section 2155.4439, if goods,
including agricultural products, produced or grown in this state or offered
by Texas bidders are not equal in cost and quality to other products, then
goods, including agricultural products, produced or grown in other states
of the United States be given preference over foreign products if the cost
to the state and quality are equal. 

SECTION 5.  Effective date: upon passage or September 1, 2001.

SUMMARY OF COMMITTEE CHANGES

SECTION 1.  Adds a new SECTION 1.  

SECTION 2.  Redesignates original SECTION 1 as SECTION 2.  Amends text to
authorize, rather than require, the commission and all state agencies
procuring goods or services to give preference to a Texas bidder under
certain conditions.  Makes a nonsubstantive change.  Replaces "$100,000,"
with "$100 million."  Redefines "Texas bidder." 

SECTION 3.  Redesignates original SECTION 2 as SECTION 3.  No changes in
text. 

SECTION 4.  Redesignates original SECTION 3 as SECTION 4.  No changes in
text.   

Adds a new SECTION 5.  Provides that this Act becomes effective upon
passage or September 1, 2001, while the original limited the effective date
to September 1, 2001.