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.