By Pitts                                              H.B. No. 1217
         77R1378 MXM-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to requiring state agencies to compete with the private
 1-3     sector in providing certain functions and services.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Subtitle D, Title 10, Government Code, is amended
 1-6     by adding Chapter 2163 to read as follows:
 1-7          CHAPTER 2163.  GOVERNMENT COMPETITION WITH PRIVATE SECTOR
 1-8           Sec. 2163.001.  DEFINITION. In this chapter, "council" means
 1-9     the State Council on Competitive Government.
1-10           Sec. 2163.002.  SIZE OF STATE AGENCIES; PERFORMANCE OF
1-11     ESSENTIAL GOVERNMENT FUNCTIONS. A state agency shall endeavor to
1-12     limit its size and use its funds as effectively and efficiently as
1-13     possible in the performance of essential government functions.
1-14           Sec. 2163.003.  LIMIT ON FUNCTIONS THAT AGENCY MAY PERFORM. A
1-15     state agency shall endeavor not to perform a function if a private
1-16     entity can perform that function better and at a lower cost.
1-17           Sec. 2163.004.  IDENTIFICATION OF COMMERCIALLY AVAILABLE
1-18     ACTIVITIES; STRATEGIC PLANS. (a)  As determined by council rule, a
1-19     state agency shall identify each function that it performs that is
1-20     also commercially available in the private sector.  The agency
1-21     shall link each identified function with the state agency employees
1-22     or positions that perform that function.
1-23           (b)  The agency shall include the findings from Subsection
1-24     (a)  in its strategic plan under Section 2056.002.
 2-1           Sec. 2163.005.  PERFORMANCE TARGETS AND COMPETITION WITH
 2-2     PRIVATE SECTOR. (a)  A state agency annually shall:
 2-3                 (1)  select a reasonable percentage of the functions
 2-4     identified under Section 2163.004; and
 2-5                 (2)  subject specific selected functions to competition
 2-6     with the private sector by using an appropriate competitive
 2-7     procurement process allowed under state law under which private
 2-8     businesses may offer to perform a selected function.
 2-9           (b)  The division or part of the agency that performs a
2-10     function subjected to competition under Subsection (a)(2) may
2-11     participate in the competitive procurement process as if the
2-12     division or part were a private business. If the bid, proposal, or
2-13     other applicable kind of offer submitted by the division or part
2-14     provides the best value for the state:
2-15                 (1)  the division or part may continue to perform the
2-16     function but in accordance with the bid, proposal, or other
2-17     applicable kind of offer submitted by the division or part; and
2-18                 (2)  the Texas Incentive and Productivity Commission
2-19     shall treat the successful bid, proposal, or other applicable kind
2-20     of offer as a suggestion submitted by a state employee group and
2-21     consider whether the employees of the division or part are eligible
2-22     for a bonus under Section 2108.0236 or a recognition award under
2-23     Section 2108.0235.
2-24           Sec. 2163.006.  REPORTING. The agency annually shall report
2-25     the percentage and specific projects identified under Section
2-26     2163.005(a) and summarize the results of the competition:
2-27                 (1)  to the council; and
 3-1                 (2)  in the agency's strategic plan under Section
 3-2     2056.002.
 3-3           SECTION 2. (a)  In this section, "state agency" has the
 3-4     meaning assigned by Section 2151.002, Government Code.
 3-5           (b)  Each state agency shall make a list of all functions
 3-6     that it performs, including services that it provides, that are
 3-7     also commercially available in the private sector.
 3-8           (c)  Not later than June 1, 2002, each state agency shall
 3-9     electronically report its list to the governor's office.
3-10           SECTION 3.  This Act takes effect immediately if it receives
3-11     a vote of two-thirds of all the members elected to each house, as
3-12     provided by Section 39, Article III, Texas Constitution.  If this
3-13     Act does not receive the vote necessary for immediate effect, this
3-14     Act takes effect September 1, 2001.