By:  Zaffirini                                         S.B. No. 311
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the continuation and functions of the General Services
 1-3     Commission and to the operations of certain other state agencies
 1-4     having functions transferred from or associated with the
 1-5     commission, including the Department of Information Resources, the
 1-6     telecommunications planning and oversight council, the interagency
 1-7     work group for developing contracting guidelines, and the State
 1-8     Cemetery Committee.
 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10                    ARTICLE 1.  ADMINISTRATIVE PROVISIONS
1-11           SECTION 1.01.  Section 552.010, Government Code, is amended
1-12     to read as follows:
1-13           Sec. 552.010.  STATE GOVERNMENTAL BODIES:  FISCAL AND OTHER
1-14     INFORMATION RELATING TO MAKING INFORMATION ACCESSIBLE.  (a)  Each
1-15     state governmental body shall report to the General Services
1-16     Commission [Legislative Budget Board] the information the
1-17     commission [board] requires regarding:
1-18                 (1)  the number and nature of requests for information
1-19     the state governmental body processes under this chapter in the
1-20     period covered by the report; and
1-21                 (2)  the cost to the state governmental body in that
1-22     period in terms of capital expenditures and personnel time of:
1-23                       (A)  responding to requests for information under
1-24     this chapter; and
1-25                       (B)  making information available to the public
 2-1     by means of the Internet or another electronic format.
 2-2           (b)  The General Services Commission [Legislative Budget
 2-3     Board] shall design and phase in the reporting requirements in a
 2-4     way that:
 2-5                 (1)  minimizes the reporting burden on state
 2-6     governmental bodies; and
 2-7                 (2)  allows the legislature and state governmental
 2-8     bodies to estimate the extent to which it is cost-effective for
 2-9     state government, and if possible the extent to which it is
2-10     cost-effective or useful for members of the public, to make
2-11     information available to the public by means of the Internet or
2-12     another electronic format as a supplement or alternative to
2-13     publicizing the information only in other ways or making the
2-14     information available only in response to requests made under this
2-15     chapter.
2-16           (c)  The open records steering committee and the state
2-17     auditor, at the request of the General Services Commission
2-18     [Legislative Budget Board], shall assist the commission [board] in
2-19     designing its reporting requirements under this section.  The
2-20     commission [board] shall share the information reported under this
2-21     section with the open records steering committee.
2-22           SECTION 1.02.  Section 2054.022, Government Code, is amended
2-23     to read as follows:
2-24           Sec. 2054.022.  CONFLICT OF INTEREST.  (a)  A member of the
2-25     board or the executive director [an employee of the department] may
2-26     not:
 3-1                 (1)  be a person required to register as a lobbyist
 3-2     under Chapter 305 because of the person's activities for
 3-3     compensation on behalf of a business entity that has, or on behalf
 3-4     of a trade association of business entities that have, a
 3-5     substantial interest in the information resources technologies
 3-6     industry;
 3-7                 (2)  be an officer, employee, or paid consultant of a
 3-8     business entity that has, or of a trade association of business
 3-9     entities that have, a substantial interest in the information
3-10     resources technologies industry and that may contract with state
3-11     government;
3-12                 (3)  own, control, or have, directly or indirectly,
3-13     more than a 10 percent interest in a business entity that has a
3-14     substantial interest in the information resources technologies
3-15     industry and that may contract with state government;
3-16                 (4)  receive more than 25 percent of the individual's
3-17     income from a business entity that has a substantial interest in
3-18     the information resources technologies industry and that may
3-19     contract with state government;
3-20                 (5)  be interested in or connected with a contract or
3-21     bid for furnishing a state agency with information resources
3-22     technologies;
3-23                 (6)  be employed by a state agency as a consultant on
3-24     information resources technologies; or
3-25                 (7)  accept or receive money or another thing of value
3-26     from an individual, firm, or corporation to whom a contract may be
 4-1     awarded, directly or indirectly, by rebate, gift, or otherwise.
 4-2           (b)  A person who is the spouse of an officer, employee, or
 4-3     paid consultant of a business entity that has, or of a trade
 4-4     association of business entities that have, a substantial interest
 4-5     in the information resources technologies industry and that may
 4-6     contract with state government may not be[:]
 4-7                 [(1)]  a member of the board or the executive
 4-8     director[; or]
 4-9                 [(2)  an employee of the department who:]
4-10                       [(A)  is exempt from the state's position
4-11     classification plan; or]
4-12                       [(B)  is compensated at or above the amount
4-13     prescribed by the General Appropriations Act for step 1, salary
4-14     group 17, of the position classification salary schedule].
4-15           (c)  An employee of the department, other than the executive
4-16     director:
4-17                 (1)  may not participate in the department's bidding
4-18     process, including the proposal development related to a contract
4-19     and the negotiation of a contract, if:
4-20                       (A)  the employee receives more than five percent
4-21     of the employee's income from any likely bidder on the contract; or
4-22                       (B)  the employee's spouse is employed by any
4-23     likely bidder on the contract; and
4-24                 (2)  may not:
4-25                       (A)  be a person required to register as a
4-26     lobbyist under Chapter 305 because of the person's activities for
 5-1     compensation on behalf of a business entity that has, or on behalf
 5-2     of a trade association of business entities that have, a
 5-3     substantial interest in the information resources technologies
 5-4     industry; or
 5-5                       (B)  be employed by a state agency as a
 5-6     consultant on information resources technologies.
 5-7           (d)  For the purposes of this section, a trade association is
 5-8     a nonprofit, cooperative, and voluntarily joined association of
 5-9     business or professional competitors in this state designed to
5-10     assist its members and its industry or profession in dealing with
5-11     mutual business or professional problems and in promoting their
5-12     common interest.
5-13           (e) [(d)]  The executive director shall dismiss an employee
5-14     of the department who violates a prohibition under Subsection (c)
5-15     [(a)], and the board shall remove the executive director if the
5-16     executive director violates a prohibition under Subsection (a).
5-17           SECTION 1.03.  Section 2152.002, Government Code, is amended
5-18     to read as follows:
5-19           Sec. 2152.002.  SUNSET PROVISION.  The General Services
5-20     Commission is subject to Chapter 325 (Texas Sunset Act).  Unless
5-21     continued in existence as provided by that chapter, the commission
5-22     is abolished and this subtitle, except for Chapter 2170 and Section
5-23     2157.121, expires September 1, 2013 [2001].
5-24           SECTION 1.04.  Section 2152.051, Government Code, is amended
5-25     to read as follows:
5-26           Sec. 2152.051.  COMPOSITION OF COMMISSION.  The commission is
 6-1     composed of five [six] representatives of the public appointed by
 6-2     the governor with the advice and consent of the senate.
 6-3           SECTION 1.05.  Subsections (b) and (c), Section 2152.054,
 6-4     Government Code, are amended to read as follows:
 6-5           (b)  An officer, employee, or paid consultant of a Texas
 6-6     trade association of business entities that contracts with the
 6-7     state may not:
 6-8                 (1)  serve as a commission member; or
 6-9                 (2)  be employed as a commission employee in a "bona
6-10     fide executive, administrative, or professional capacity," as that
6-11     phrase is used for purposes of establishing an exemption to the
6-12     overtime provisions of the federal Fair Labor Standards Act of 1938
6-13     (29 U.S.C. Section 201 et seq.) and its subsequent amendments [who
6-14     is exempt from the state's position classification plan or is
6-15     compensated at or above the amount prescribed by the General
6-16     Appropriations Act for step 1, salary group 17, of the position
6-17     classification salary schedule].
6-18           (c)  An individual who is the spouse of an officer, manager,
6-19     or paid consultant of a Texas trade association of business
6-20     entities that contracts with the state may not:
6-21                 (1)  serve as a commission member; or
6-22                 (2)  be employed as a commission employee in a "bona
6-23     fide executive, administrative, or professional capacity," as that
6-24     phrase is used for purposes of establishing an exemption to the
6-25     overtime provisions of the federal Fair Labor Standards Act of 1938
6-26     (29 U.S.C. Section 201 et seq.) and its subsequent amendments [who
 7-1     is exempt from the state's position classification plan or is
 7-2     compensated at or above the amount prescribed by the General
 7-3     Appropriations Act for step 1, salary group 17, of the position
 7-4     classification salary schedule].
 7-5           SECTION 1.06.  Subsection (c), Section 2152.056, Government
 7-6     Code, is amended to read as follows:
 7-7           (c)  If the executive director has knowledge that a potential
 7-8     ground for removal exists, the executive director shall notify the
 7-9     presiding officer of the commission of the potential ground.  The
7-10     presiding officer shall then notify the governor and the attorney
7-11     general that a potential ground for removal exists.  If the
7-12     potential ground for removal involves the presiding officer, the
7-13     executive director shall notify the next highest ranking officer of
7-14     the commission, who shall then notify the governor and the attorney
7-15     general that a potential ground for removal exists.
7-16           SECTION 1.07.  Section 2152.057, Government Code, is amended
7-17     to read as follows:
7-18           Sec. 2152.057.  TERMS.  Commission members serve staggered
7-19     six-year terms with one or two members' terms expiring January 31
7-20     of each odd-numbered year.
7-21           SECTION 1.08.  Subsection (c), Section 2152.058, Government
7-22     Code, is amended to read as follows:
7-23           (c)  Three [Four] members of the commission constitute a
7-24     quorum.
7-25           SECTION 1.09.  Subchapter B, Chapter 2152, Government Code,
7-26     is amended by adding Section 2152.0581 to read as follows:
 8-1           Sec. 2152.0581.  TRAINING FOR COMMISSION MEMBERS.  (a)  A
 8-2     person who is appointed to and qualifies for office as a member of
 8-3     the commission may not vote, deliberate, or be counted as a member
 8-4     in attendance at a meeting of the commission until the person
 8-5     completes a training program that complies with this section.
 8-6           (b)  The training program must provide the person with
 8-7     information regarding:
 8-8                 (1)  the legislation that created the commission;
 8-9                 (2)  the programs operated by the commission;
8-10                 (3)  the role and functions of the commission;
8-11                 (4)  the rules of the commission, with an emphasis on
8-12     the rules that relate to disciplinary and investigatory authority;
8-13                 (5)  the current budget for the commission;
8-14                 (6)  the results of the most recent formal audit of the
8-15     commission;
8-16                 (7)  the requirements of:
8-17                       (A)  the open meetings law, Chapter 551;
8-18                       (B)  the public information law, Chapter 552;
8-19                       (C)  the administrative procedure law, Chapter
8-20     2001; and
8-21                       (D)  other laws relating to public officials,
8-22     including conflict-of-interest laws; and
8-23                 (8)  any applicable ethics policies adopted by the
8-24     commission or the Texas Ethics Commission.
8-25           (c)  A person appointed to the commission is entitled to
8-26     reimbursement, as provided by the General Appropriations Act, for
 9-1     the travel expenses incurred in attending the training program
 9-2     regardless of whether the attendance at the program occurs before
 9-3     or after the person qualifies for office.
 9-4           SECTION 1.10.  Section 2152.060, Government Code, is amended
 9-5     by amending Subsection (b) and adding Subsection (d) to read as
 9-6     follows:
 9-7           (b)  The commission shall maintain a [keep an information]
 9-8     file on [about] each written complaint filed with the commission
 9-9     [that the commission has authority to resolve].  The file must
9-10     include:
9-11                 (1)  the name of the person who filed the complaint;
9-12                 (2)  the date the complaint is received by the
9-13     commission;
9-14                 (3)  the subject matter of the complaint;
9-15                 (4)  the name of each person contacted in relation to
9-16     the complaint;
9-17                 (5)  a summary of the results of the review or
9-18     investigation of the complaint; and
9-19                 (6)  an explanation of the reason the file was closed,
9-20     if the commission closed the file without taking action other than
9-21     to investigate the complaint.
9-22           (d)  The commission shall provide to the person filing the
9-23     complaint and to each person who is a subject of the complaint a
9-24     copy of the commission's policies and procedures relating to
9-25     complaint investigation and resolution.
9-26           SECTION 1.11.  Subchapter C, Chapter 2152, Government Code,
 10-1    is amended by adding Section 2152.110 to read as follows:
 10-2          Sec. 2152.110.  STATE EMPLOYEE INCENTIVE PROGRAM.  The
 10-3    executive director or the executive director's designee shall
 10-4    provide to commission employees information and training on the
 10-5    benefits and methods of participation in the state employee
 10-6    incentive program under Subchapter B, Chapter 2108.
 10-7          SECTION 1.12.  (a)  To achieve the membership plan prescribed
 10-8    by Section 2152.051, Government Code, as amended by this Act, for
 10-9    the General Services Commission, the governor shall appoint only
10-10    one commission member to succeed the commission members whose terms
10-11    expire on January 31, 2003.  The member appointed under this
10-12    section is appointed for a term expiring January 31, 2009.
10-13          (b)  As soon as possible after September 1, 2001, the
10-14    governor shall designate for abolition on January 31, 2003, one of
10-15    the two membership positions with terms that expire on January 31,
10-16    2003.
10-17          SECTION 1.13.  The changes in law made by this Act in the
10-18    prohibitions and qualifications applying to members of the General
10-19    Services Commission do not affect the entitlement of a member
10-20    serving on the commission immediately before September 1, 2001, to
10-21    continue to serve and function as a member of the commission for
10-22    the remainder of the member's term.  The changes in law apply only
10-23    to a member appointed on or after September 1, 2001.  This Act does
10-24    not prohibit a person who is a member of the General Services
10-25    Commission immediately before September 1, 2001, from being
10-26    reappointed as a commission member if the person has the
 11-1    qualifications required for the position under Chapter 2152,
 11-2    Government Code, as amended by this Act.
 11-3          SECTION 1.14.  The change in law made by this Act to Sections
 11-4    2152.051, 2152.057, and Subsection (c), Section 2152.058,
 11-5    Government Code, takes effect January 31, 2003.
 11-6       ARTICLE 2.  OVERSIGHT OF MAJOR INFORMATION RESOURCES PROJECTS
 11-7          SECTION 2.01.  Section 2054.003, Government Code, is amended
 11-8    by adding a new Subdivision (8) and renumbering existing
 11-9    Subdivisions (8), (9), and (10) as Subdivisions (9), (10), and (11)
11-10    to read as follows:
11-11                (8)  "Major information resources project" means:
11-12                      (A)  any information resources technology project
11-13    identified in a state agency's biennial operating plan whose
11-14    development costs exceed $1 million and that:
11-15                            (i)  requires one year or longer to reach
11-16    operations status;
11-17                            (ii)  involves more than one state agency;
11-18    or
11-19                            (iii)  substantially alters work methods of
11-20    state agency personnel or the delivery of services to clients; and
11-21                      (B)  any information resources technology project
11-22    designated by the legislature in the General Appropriations Act as
11-23    a major information resources project.
11-24                (9)  "Project" means a program to provide information
11-25    resources technologies support to functions within or among
11-26    elements of a state agency, that ideally is characterized by
 12-1    well-defined parameters, specific objectives, common benefits,
 12-2    planned activities, a scheduled completion date, and an established
 12-3    budget with a specified source of funding.
 12-4                (10) [(9)]  "State agency" means a department,
 12-5    commission, board, office, council, or other agency in the
 12-6    executive or judicial branch of state government that is created by
 12-7    the constitution or a statute of this state, including a university
 12-8    system or institution of higher education as defined by Section
 12-9    61.003, Education Code.
12-10                (11) [(10)]  "Telecommunications" means any
12-11    transmission, emission, or reception of signs, signals, writings,
12-12    images, or sounds of intelligence of any nature by wire, radio,
12-13    optical, or other electromagnetic systems.  The term includes all
12-14    facilities and equipment performing those functions that are owned,
12-15    leased, or used by state agencies and branches of state government.
12-16          SECTION 2.02.  Subchapter F, Chapter 2054, Government Code,
12-17    is amended by adding Section 2054.1181 to read as follows:
12-18          Sec. 2054.1181.  OVERSIGHT OF MAJOR INFORMATION RESOURCES
12-19    PROJECTS.  (a)  The department shall create a division in the
12-20    department to oversee the implementation of major information
12-21    resources projects.
12-22          (b)  In performing its duties under this section, the
12-23    department shall:
12-24                (1)  develop policies for the oversight of projects;
12-25                (2)  implement project management standards;
12-26                (3)  use effective risk management strategies;
 13-1                (4)  establish standards that promote the ability of
 13-2    information resources systems to operate with each other; and
 13-3                (5)  use industry best practices and process
 13-4    reengineering when feasible.
 13-5          (c)  The division shall be funded from a percentage of money
 13-6    appropriated to or budgeted by state agencies for the major
 13-7    information resources projects designated by the legislature under
 13-8    Section 2054.003(8)(B).  The legislature shall prescribe the
 13-9    percentage or percentages, as applicable, in the General
13-10    Appropriations Act.
13-11          SECTION 2.03.  Subsection (d), Section 2054.118, Government
13-12    Code, is repealed.
13-13                      ARTICLE 3.  TELECOMMUNICATIONS
13-14          SECTION 3.01.  Subsection (e), Section 2054.051, Government
13-15    Code, is amended to read as follows:
13-16          (e)  The department shall provide for all interagency use of
13-17    information resources technologies by state agencies[, except for
13-18    telecommunications services provided by the General Services
13-19    Commission under other law].  The department may provide for
13-20    interagency use of information resources technologies either
13-21    directly or by certifying another state agency to provide specified
13-22    uses of information resources technologies to other state agencies.
13-23          SECTION 3.02.  Subsection (d), Section 2054.091, Government
13-24    Code, is amended to read as follows:
13-25          (d)  The executive director shall appoint an advisory
13-26    committee to assist in the preparation of the state strategic plan.
 14-1    The members of the advisory committee appointed by the executive
 14-2    director must be approved by the board and must include officers or
 14-3    employees of state government.  The telecommunications planning and
 14-4    oversight council shall appoint one of its members to serve as a
 14-5    member of the advisory committee.
 14-6          SECTION 3.03.  The heading of Subchapter H, Chapter 2054,
 14-7    Government Code, is amended to read as follows:
 14-8                SUBCHAPTER H.  TELECOMMUNICATIONS PLANNING
 14-9                       AND OVERSIGHT COUNCIL [GROUP]
14-10          SECTION 3.04.  Section 2054.201, Government Code, is amended
14-11    to read as follows:
14-12          Sec. 2054.201.  COMPOSITION; TERMS.  (a)  The
14-13    telecommunications planning and oversight council [group] is
14-14    composed of:
14-15                (1)  a representative of the comptroller's office,
14-16    appointed by the comptroller;
14-17                (2)  the executive director of the Telecommunications
14-18    Infrastructure Fund Board;
14-19                (3)  a representative of the General Services
14-20    Commission, appointed by the executive director of the commission;
14-21                (4)  a member representing the interests of state
14-22    agencies with 1,000 employees or more, appointed by the lieutenant
14-23    governor;
14-24                (5)  a member representing the interests of state
14-25    agencies with fewer than 1,000 employees, appointed by the speaker
14-26    of the house of representatives;
 15-1                (6)  a member representing the interests of
 15-2    institutions of higher education, appointed by the commissioner of
 15-3    higher education;
 15-4                (7)  a member representing the interests of The
 15-5    University of Texas System, appointed by the chancellor;
 15-6                (8)  a member representing the interests of The Texas
 15-7    A&M University System, appointed by the chancellor;
 15-8                (9)  a member representing the interests of public
 15-9    school districts that are customers of the consolidated
15-10    telecommunications system, appointed by the governor;
15-11                (10)  a member representing the interests of local
15-12    governments that are customers of the consolidated
15-13    telecommunications system, appointed by the governor; and
15-14                (11)  two public members with telecommunications
15-15    expertise, appointed by the governor [the comptroller, the
15-16    executive director of the department, and the executive director of
15-17    the General Services Commission].
15-18          (b)  Appointed members of the telecommunications planning and
15-19    oversight council serve two-year terms, except that the
15-20    representative of the comptroller's office serves at the discretion
15-21    of the comptroller and the representative of the General Services
15-22    Commission serves at the discretion of the executive director of
15-23    the commission [Each member of the group may designate an employee
15-24    of the member's agency to serve in the member's place].
15-25          (c)  Members of the telecommunications planning and oversight
15-26    council who represent a state agency shall abstain from any action
 16-1    taken by the council regarding a request for a waiver under Section
 16-2    2170.051 from the state agency that is represented by the member.
 16-3          SECTION 3.05.  Subchapter H, Chapter 2054, Government Code,
 16-4    is amended by adding Section 2054.2011 to read as follows:
 16-5          Sec. 2054.2011.  DEFINITIONS.  In this subchapter:
 16-6                (1)  "Centralized capitol complex telephone system"
 16-7    means the system described in Section 2170.059.
 16-8                (2)  "Consolidated telecommunications system" has the
 16-9    meaning assigned by Section 2170.001.
16-10          SECTION 3.06.  Section 2054.202, Government Code, is amended
16-11    to read as follows:
16-12          Sec. 2054.202.  ADMINISTRATIVE PROVISIONS.  (a)  The
16-13    telecommunications planning and oversight council [group] shall
16-14    post notice of its meetings in accordance with the open meetings
16-15    law, Chapter 551, in the manner required for a state governmental
16-16    body under that chapter.
16-17          (b)  The department shall provide [coordinate] the staff and
16-18    administrative support necessary for [provided to] the
16-19    telecommunications planning and oversight council to perform its
16-20    duties under this subchapter [group by the department, by the
16-21    comptroller, and by the General Services Commission].
16-22          (c)  The telecommunications planning and oversight council
16-23    [group] may periodically elect one of its members to serve as
16-24    presiding officer of the council [group].
16-25          SECTION 3.07.  Section 2054.203, Government Code, is amended
16-26    by amending Subsections (a) through (d) and adding Subsection (g)
 17-1    to read as follows:
 17-2          (a)  The telecommunications planning and oversight council
 17-3    [group] shall comprehensively collect and manage telecommunications
 17-4    network configuration information about existing and planned
 17-5    telecommunications networks throughout state government.
 17-6          (b)  The telecommunications planning and oversight council
 17-7    [group] may require state agencies to submit to the council [group]
 17-8    the agencies' network configuration information, but the council
 17-9    [group] must use existing reports to gather the information if
17-10    possible and minimize the reporting burden on agencies to the
17-11    extent possible.
17-12          (c)  The telecommunications planning and oversight council
17-13    [group] shall establish plans and policies for a system of
17-14    telecommunications services to be managed and operated by the
17-15    department [General Services Commission].
17-16          (d)  The telecommunications planning and oversight council
17-17    [group] shall develop a statewide telecommunications operating plan
17-18    for all state agencies.  The plan shall implement a statewide
17-19    network and include technical specifications that are binding on
17-20    the department [General Services Commission].
17-21          (g)  The telecommunications planning and oversight council
17-22    shall perform strategic planning for all state telecommunications
17-23    services in accordance with the guiding principles of the state
17-24    strategic plan for information resources management.
17-25          SECTION 3.08.  Subsections (a) and (c), Section 2054.204,
17-26    Government Code, are amended to read as follows:
 18-1          (a)  The telecommunications planning and oversight council
 18-2    [group] shall develop a plan for a state telecommunications network
 18-3    that will effectively and efficiently meet the long-term
 18-4    requirements of state government for voice, video, and computer
 18-5    communications, with the goal of achieving a single centralized
 18-6    telecommunications network for state government.
 18-7          (c)  The plan must incorporate efficiencies obtained through
 18-8    the use of shared transmission services and open systems
 18-9    architecture as they become available, building on existing systems
18-10    as appropriate.  In developing the plan, the telecommunications
18-11    planning and oversight council [group] shall make use of the
18-12    technical expertise of state agencies, including institutions of
18-13    higher education.
18-14          SECTION 3.09.  Section 2054.205, Government Code, is amended
18-15    to read as follows:
18-16          Sec. 2054.205.  DEVELOPMENT OF SYSTEM.  (a)  The
18-17    telecommunications planning and oversight council [group] shall
18-18    develop functional requirements for a statewide system of
18-19    telecommunications services for all state agencies.  Existing
18-20    networks, as configured on September 1, 1991, of institutions of
18-21    higher education are exempt from the requirements.
18-22          (b)  The telecommunications planning and oversight council
18-23    [group] shall develop requests for information and proposals for a
18-24    statewide system of telecommunications services for all state
18-25    agencies.
18-26          (c)  The telecommunications planning and oversight council
 19-1    [group] shall negotiate rates and execute contracts with
 19-2    telecommunications service providers for services.  The
 19-3    telecommunications planning and oversight council [group] may:
 19-4                (1)  acquire transmission facilities by purchase,
 19-5    lease, or lease-purchase in accordance with Chapters 2155-2158; and
 19-6                (2)  develop, establish, and maintain carrier systems
 19-7    necessary to the operation of the telecommunications system.
 19-8          SECTION 3.10.  Subchapter H, Chapter 2054, Government Code,
 19-9    is amended by adding Section 2054.2051 to read as follows:
19-10          Sec. 2054.2051.  OVERSIGHT OF SYSTEMS.  (a)  The
19-11    telecommunications planning and oversight council shall develop
19-12    service objectives for the consolidated telecommunications system
19-13    and the centralized capitol complex telephone system.
19-14          (b)  The telecommunications planning and oversight council
19-15    shall develop performance measures for the operations and staff of
19-16    the consolidated telecommunications system and the centralized
19-17    capitol complex telephone system.
19-18          (c)  The telecommunications planning and oversight council
19-19    shall review every three months the status of all projects related
19-20    to and the financial performance of the consolidated
19-21    telecommunications system and the centralized capitol complex
19-22    telephone system, including a comparison between actual performance
19-23    and projected goals.
19-24          (d)  The telecommunications planning and oversight council
19-25    shall make recommendations to the board on ways to improve the
19-26    operation of the consolidated telecommunications system and the
 20-1    centralized capitol complex telephone system based on its review of
 20-2    their performance and on concerns raised by using entities.
 20-3          SECTION 3.11.  Section 2054.206, Government Code, is amended
 20-4    to read as follows:
 20-5          Sec. 2054.206.  ANNUAL REPORT.  The telecommunications
 20-6    planning and oversight council shall submit an annual report to the
 20-7    department and to each entity served by the consolidated
 20-8    telecommunications system or the centralized capitol complex
 20-9    telephone system.  The report must include:
20-10                (1)  information about the accomplishment of service
20-11    objectives and other performance measures for management of the
20-12    consolidated telecommunications system and the centralized capitol
20-13    complex telephone system;
20-14                (2)  information about the accounting and financial
20-15    performance of the consolidated telecommunications system and the
20-16    centralized capitol complex telephone system;
20-17                (3)  estimates of savings to entities served by the
20-18    consolidated telecommunications system over standard rates
20-19    available to state agencies who acquire telecommunications services
20-20    directly;
20-21                (4)  trends in network use, including the number of
20-22    users, workstations, and locations supported; and
20-23                (5)  rate information for services provided by the
20-24    consolidated telecommunications system and the centralized capitol
20-25    complex telephone system.  [ADVISORY AGENCIES.  The following state
20-26    agencies shall formally advise the telecommunications planning
 21-1    group and send representatives to meetings of the group:]
 21-2                [(1)  the Texas Education Agency;]
 21-3                [(2)  the Texas Higher Education Coordinating Board;]
 21-4                [(3)  The Texas A&M University System;]
 21-5                [(4)  The University of Texas System;]
 21-6                [(5)  the Telecommunications Infrastructure Fund Board;
 21-7    and]
 21-8                [(6)  the Texas State Library and Archives Commission.]
 21-9          SECTION 3.12.  Section 2054.207, Government Code, is amended
21-10    to read as follows:
21-11          Sec. 2054.207.  REPORT TO LEGISLATURE.  The
21-12    telecommunications planning and oversight council [group] shall
21-13    report biennially to the legislature not later than October 1 of
21-14    each even-numbered year on the status of the current plan for a
21-15    state telecommunications network and on the progress state
21-16    government has made towards accomplishing the goals of the plan.
21-17    The report shall address consolidated telecommunications system
21-18    performance, centralized capitol complex telephone system
21-19    performance, telecommunications system needs, and recommended
21-20    statutory changes to enhance system capability and
21-21    cost-effectiveness.
21-22          SECTION 3.13.  Subdivision (1), Section 2157.001, Government
21-23    Code, is amended to read as follows:
21-24                (1)  "Automated information system" includes:
21-25                      (A)  the computers and computer devices on which
21-26    an information system is automated, including computers and
 22-1    computer devices that the commission identifies in guidelines
 22-2    developed by the commission in consultation with the Department of
 22-3    Information Resources and in accordance with Chapter 2054 and rules
 22-4    adopted under that chapter;
 22-5                      (B)  a service related to the automation of an
 22-6    information system, including computer software or computers;
 22-7                      (C)  a telecommunications apparatus or device
 22-8    that serves as a component of a voice, data, or video
 22-9    communications network for transmitting, switching, routing,
22-10    multiplexing, modulating, amplifying, or receiving signals on the
22-11    network, and services related to telecommunications that are not
22-12    covered under Paragraph (D); and
22-13                      (D)  for the Department of Information Resources
22-14    [General Services Commission], as telecommunications provider for
22-15    the state, the term includes any service provided by a
22-16    telecommunications provider, as that term is defined by Section
22-17    51.002, Utilities Code.
22-18          SECTION 3.14.  Section 2157.121, Government Code, is amended
22-19    by amending Subsection (b) and adding Subsection (c) to read as
22-20    follows:
22-21          (b)  A state agency, other than the Department of Information
22-22    Resources, shall send its proposal specifications and criteria to
22-23    the commission for approval or request the commission to develop
22-24    the proposal specifications and criteria.
22-25          (c)  The Department of Information Resources may acquire a
22-26    telecommunications device, system, or service or an automated
 23-1    information system by using competitive sealed proposals without
 23-2    regard to whether the commission makes the determination required
 23-3    under Subsection (a) for other state agencies.
 23-4          SECTION 3.15.  Subsection (a), Section 2170.001, Government
 23-5    Code, is amended by adding Subdivision (3) to read as follows:
 23-6                (3)  "Department" means the Department of Information
 23-7    Resources.
 23-8          SECTION 3.16.  Section 2170.002, Government Code, is amended
 23-9    to read as follows:
23-10          Sec. 2170.002.  DEPARTMENT [COMMISSION] RESPONSIBLE FOR
23-11    OBTAINING TELECOMMUNICATIONS SERVICES.  The department [commission]
23-12    is the state agency responsible for obtaining telecommunications
23-13    services.
23-14          SECTION 3.17.  Section 2170.003, Government Code, is amended
23-15    to read as follows:
23-16          Sec. 2170.003.  OWNERSHIP OR LEASE OF NECESSARY EQUIPMENT.
23-17    The department [commission] may own, lease, or lease-purchase in
23-18    accordance with Chapters 2155, 2156, 2157, and 2158 any or all of
23-19    the facilities or equipment necessary to provide telecommunications
23-20    services.
23-21          SECTION 3.18.  Section 2170.004, Government Code, is amended
23-22    to read as follows:
23-23          Sec. 2170.004.  CONTRACTS WITH ENTITIES OTHER THAN STATE
23-24    AGENCIES.  The department [commission] may contract for use of the
23-25    consolidated telecommunications system with:
23-26                (1)  each house of the legislature;
 24-1                (2)  a legislative agency;
 24-2                (3)  an agency that is not a state agency as defined by
 24-3    Section 2151.002; and
 24-4                (4)  a political subdivision, including a county,
 24-5    municipality, or district.
 24-6          SECTION 3.19.  Subsections (a) and (c), Section 2170.005,
 24-7    Government Code, are amended to read as follows:
 24-8          (a)  To ensure efficient operation of the consolidated
 24-9    telecommunications system at minimum cost to the state, the
24-10    department [commission] shall adopt and disseminate to all agencies
24-11    appropriate guidelines, operating procedures, and telephone
24-12    directories.
24-13          (c)  Telephone directories published by the department
24-14    [commission] under this section and Section 2170.059 must be
24-15    revised regularly and must list state telephone numbers
24-16    alphabetically by the subject matter of agency programs as well as
24-17    alphabetically by agency.  The subject matter listing of programs
24-18    and telephone numbers in the telephone directories must be
24-19    consistent with the categorization developed by the Records
24-20    Management Interagency Coordinating Council under Section 441.203
24-21    [441.053].  The department [commission] may authorize, under
24-22    procedures and rules considered appropriate by the department
24-23    [commission], a yellow pages advertising section in the directories
24-24    to recover development, publication, and distribution costs of the
24-25    directories.
24-26          SECTION 3.20.  Section 2170.006, Government Code, is amended
 25-1    to read as follows:
 25-2          Sec. 2170.006.  COST-EFFECTIVENESS OF SYSTEM.  (a)  The
 25-3    department [commission], with the advice of the state auditor,
 25-4    shall maintain records relating to the consolidated
 25-5    telecommunications system necessary to enable the department
 25-6    [commission] to analyze the cost-effectiveness of the system to
 25-7    state agencies.
 25-8          (b)  The department [commission] shall advise the legislature
 25-9    at each session about the system's cost-effectiveness.
25-10          SECTION 3.21.  Section 2170.008, Government Code, is amended
25-11    to read as follows:
25-12          Sec. 2170.008.  RATE INTERVENTION.  (a)  If the department
25-13    [commission] determines there is sufficient economic impact on
25-14    state government, the department [commission] may intervene on
25-15    behalf of state agencies in telecommunications rate cases and may
25-16    hire special counsel and expert witnesses to prepare and present
25-17    testimony.
25-18          (b)  The attorney general shall represent the department
25-19    [commission] before the courts in all appeals from rate cases in
25-20    which the department [commission] intervenes.
25-21          SECTION 3.22.  Subsections (a) and (c), Section 2170.009,
25-22    Government Code, are amended to read as follows:
25-23          (a)  A pay telephone may be located in the capitol complex
25-24    only with the approval of the department [commission].  The
25-25    department [commission] shall collect the revenue from the
25-26    installation and operation of the pay telephone and deposit it to
 26-1    the credit of the general revenue fund.
 26-2          (c)  The department [commission] or other state entity shall
 26-3    account for the revenue collected under this section in the
 26-4    entity's annual report.
 26-5          SECTION 3.23.  Section 2170.051, Government Code, is amended
 26-6    to read as follows:
 26-7          Sec. 2170.051.  MANAGEMENT AND USE OF SYSTEM.  (a)  The
 26-8    department [commission] shall manage the operation of a system of
 26-9    telecommunications services for all state agencies.  Each agency
26-10    shall identify its particular requirements for telecommunications
26-11    services and the site at which the services are to be provided.
26-12          (b)  The department [commission] shall fulfill the
26-13    telecommunications requirements of each state agency to the extent
26-14    possible and to the extent that money is appropriated or available
26-15    for that purpose.
26-16          (c)  A state agency shall use the consolidated
26-17    telecommunications system to the fullest extent possible.  A state
26-18    agency may not acquire telecommunications services unless the
26-19    telecommunications planning and oversight council [group]
26-20    determines that the agency's requirement for telecommunications
26-21    services cannot be met at a comparable cost by the consolidated
26-22    telecommunications system.
26-23          (d)  A state agency may not enter into or renew a contract
26-24    with a carrier or other provider of telecommunications services
26-25    without obtaining a waiver from the telecommunications planning and
26-26    oversight council [group] certifying that the requested
 27-1    telecommunications services cannot be provided at a comparable cost
 27-2    on the consolidated telecommunications system.  The
 27-3    telecommunications planning and oversight council [group] shall
 27-4    evaluate requests for waivers based on cost-effectiveness to the
 27-5    state government as a whole.  A waiver may be granted only for a
 27-6    specific period and will automatically expire on the stated
 27-7    expiration date unless an extension is approved by the
 27-8    telecommunications planning and oversight council [group].  A
 27-9    contract for telecommunications services obtained under waiver may
27-10    not extend beyond the expiration date of the waiver.  If the
27-11    telecommunications planning and oversight council [group] becomes
27-12    aware of any state agency receiving telecommunications services
27-13    without a waiver, the telecommunications planning and oversight
27-14    council [group] shall notify the agency and the comptroller.  The
27-15    state agency shall have 60 days after notification by the
27-16    telecommunications planning and oversight council [group] in which
27-17    to submit a waiver request to the telecommunications planning and
27-18    oversight council [group] documenting the agency's reasons
27-19    [reasoning] for bypassing the consolidated telecommunications
27-20    system and otherwise providing all information required by the
27-21    waiver application form.
27-22          SECTION 3.24.  Section 2170.052, Government Code, is amended
27-23    to read as follows:
27-24          Sec. 2170.052.  BALANCING TECHNOLOGICAL ADVANCEMENTS AND
27-25    EXISTING FACILITIES.  In the planning, design, implementation, and
27-26    operation of the consolidated telecommunications system, the
 28-1    department [commission] shall maintain an appropriate balance
 28-2    between the adoption of technological advancements and the
 28-3    efficient use of existing facilities and services to avoid
 28-4    misapplication of state money and degradation or loss of the
 28-5    integrity of existing systems and facilities.
 28-6          SECTION 3.25.  Section 2170.056, Government Code, is amended
 28-7    to read as follows:
 28-8          Sec. 2170.056.  COSTS TO STATE OF PARALLEL TOLLS.  All
 28-9    contracts with telecommunications carriers shall provide that the
28-10    department [commission] or any participating agency may obtain any
28-11    information relating to the costs to the state of parallel tolls.
28-12          SECTION 3.26.  Subsections (a), (c), and (d), Section
28-13    2170.057, Government Code, are amended to read as follows:
28-14          (a)  The department [commission] shall develop a system of
28-15    billings and charges for services provided in operating and
28-16    administering the consolidated telecommunications system that
28-17    allocates the total state cost to each entity served by the system
28-18    based on proportionate usage.
28-19          (c)  To provide an adequate cash flow as necessary for
28-20    purposes of this chapter, using state agencies and other entities,
28-21    on proper notification, shall make monthly payments into the
28-22    telecommunications revolving fund account from appropriated or
28-23    other available money.  The legislature may appropriate money for
28-24    operating the system directly to the department [commission], in
28-25    which case the revolving fund account shall be used to receive
28-26    money due from local governmental entities and other agencies to
 29-1    the extent that their money is not subject to legislative
 29-2    appropriation.
 29-3          (d)  The department [commission] shall maintain in the
 29-4    revolving fund account sufficient amounts to pay the bills of the
 29-5    consolidated telecommunications system and the centralized capitol
 29-6    complex telephone system.  The department [commission] shall
 29-7    certify amounts that exceed this amount to the comptroller, and the
 29-8    comptroller shall transfer the excess amounts to the credit of the
 29-9    statewide network applications account established by Section
29-10    2054.011 [22A, Information Resources Management Act (Article
29-11    4413(32j), Revised Statutes)].
29-12          SECTION 3.27.  Subsections (b) and (c), Section 2170.058,
29-13    Government Code, are amended to read as follows:
29-14          (b)  The department [commission] shall adopt rules that
29-15    govern student access to the system, including:
29-16                (1)  times of access to the system; and
29-17                (2)  the full recovery of actual costs from each
29-18    student who uses the system.
29-19          (c)  In consideration of the duties and responsibilities
29-20    given the department [commission] under this chapter [subtitle], it
29-21    is the policy of this state that a state agency or unit of state
29-22    government may not provide telecommunications products or services
29-23    to the general public in competition with private enterprise unless
29-24    there is a finding that providing the products or services is in
29-25    the public interest.  This subsection does not prohibit students
29-26    who reside in housing for which institutions of higher education
 30-1    provide telephone service from using service provided under this
 30-2    section.
 30-3          SECTION 3.28.  Section 2170.059, Government Code, is amended
 30-4    to read as follows:
 30-5          Sec. 2170.059.  CENTRALIZED CAPITOL COMPLEX TELEPHONE SYSTEM.
 30-6    (a)  The department [commission] shall provide centralized
 30-7    telephone service for state agencies, each house of the
 30-8    legislature, and legislative agencies in the capitol complex.
 30-9    State agencies in the capitol complex shall use the service.  Each
30-10    house of the legislature and each legislative agency shall use the
30-11    service at the discretion of the legislature.  The department
30-12    [commission] may provide the service to other state agencies that
30-13    subscribe to it.
30-14          (b)  Each using entity shall make monthly payments to the
30-15    department [commission] when billed by the department [commission].
30-16          (c)  Each using entity may arrange for its own terminal
30-17    telephone equipment, but the equipment must be compatible with the
30-18    centralized telephone service.  The department [commission] shall
30-19    make terminal equipment available for using entities that choose to
30-20    use that terminal equipment.
30-21          (d)  The department [commission] annually shall prepare and
30-22    issue a revised centralized telephone service directory not later
30-23    than March 31.
30-24          SECTION 3.29.  Subchapter B, Chapter 2170, Government Code,
30-25    is amended by adding Section 2170.060 to read as follows:
30-26          Sec. 2170.060.  QUARTERLY REPORT.  The department shall
 31-1    quarterly submit a report to the telecommunications planning and
 31-2    oversight council on:
 31-3                (1)  the department's accomplishment of service
 31-4    objectives and other performance measures;
 31-5                (2)  the financial performance of the consolidated
 31-6    telecommunications system and the centralized capitol complex
 31-7    telephone system; and
 31-8                (3)  the status of projects for the consolidated
 31-9    telecommunications system and the centralized capitol complex
31-10    telephone system.
31-11          SECTION 3.30.  Subsection (e), Section 2054.091, Government
31-12    Code, is repealed.
31-13          SECTION 3.31.  Section 2170.007, Government Code, is
31-14    repealed.
31-15          SECTION 3.32.  On September 1, 2001:
31-16                (1)  the Department of Information Resources replaces
31-17    the General Services Commission as the telecommunications services
31-18    provider for state government;
31-19                (2)  all functions and activities performed by the
31-20    General Services Commission that relate to providing
31-21    telecommunications services for state government under Chapter
31-22    2170, Government Code, or other law immediately before that date
31-23    are transferred to the Department of Information Resources;
31-24                (3)  all employees of the General Services Commission
31-25    who primarily perform duties related to providing
31-26    telecommunications services for state government, including
 32-1    employees who provide administrative support for those services,
 32-2    under Chapter 2170, Government Code, or other law become employees
 32-3    of the Department of Information Resources, but continue to work in
 32-4    the same physical location unless moved in accordance with the plan
 32-5    created under Section 3.33 of this Act;
 32-6                (4)  a rule or form adopted by the General Services
 32-7    Commission that relates to providing telecommunications services
 32-8    for state government under Chapter 2170, Government Code, or other
 32-9    law is a rule or form of the Department of Information Resources
32-10    and remains in effect until changed by the department;
32-11                (5)  a reference in law to the General Services
32-12    Commission that relates to providing telecommunications services
32-13    for state government under Chapter 2170, Government Code, or other
32-14    law means the Department of Information Resources;
32-15                (6)  a waiver in effect that was issued by the General
32-16    Services Commission relating to telecommunications under Chapter
32-17    2170, Government Code, or other law is continued in effect as a
32-18    waiver of the Department of Information Resources;
32-19                (7)  a rate case, contract negotiation, or other
32-20    proceeding involving the General Services Commission that is
32-21    related to providing telecommunications services for state
32-22    government under Chapter 2170, Government Code, or other law is
32-23    transferred without change in status to the Department of
32-24    Information Resources, and the Department of Information Resources
32-25    assumes, without a change in status, the position of the General
32-26    Services Commission in a negotiation or proceeding relating to
 33-1    telecommunications to which the General Services Commission is a
 33-2    party;
 33-3                (8)  all money, contracts, leases, rights, and
 33-4    obligations of the General Services Commission related to providing
 33-5    telecommunications services for state government under Chapter
 33-6    2170, Government Code, or other law are transferred to the
 33-7    Department of Information Resources;
 33-8                (9)  all property, including records, in the custody of
 33-9    the General Services Commission related to providing
33-10    telecommunications services for state government under Chapter
33-11    2170, Government Code, or other law becomes property of the
33-12    Department of Information Resources, but stays in the same physical
33-13    location unless moved in accordance with the plan created under
33-14    Section 3.33 of this Act; and
33-15                (10)  all funds appropriated by the legislature to the
33-16    General Services Commission for purposes related to providing
33-17    telecommunications services for state government, including funds
33-18    for providing administrative support for those services such as
33-19    funds to pay the salary and benefits of employees who provide the
33-20    administrative support, under Chapter 2170, Government Code, or
33-21    other law are transferred to the Department of Information
33-22    Resources.
33-23          SECTION 3.33.  The General Services Commission and the
33-24    Department of Information Resources shall establish a transition
33-25    plan for the transfer described in Section 3.32 of this Act.  The
33-26    plan must include:
 34-1                (1)  a timetable for any necessary or advisable
 34-2    movement of the physical location of employees and property;
 34-3                (2)  an inventory of all equipment and other property
 34-4    required to be transferred;
 34-5                (3)  a determination of any continued support and
 34-6    cooperation the commission must provide the department to ensure an
 34-7    efficient continuation of service and of planning for future needs,
 34-8    and the period during which continued support and cooperation will
 34-9    be necessary; and
34-10                (4)  provisions for the immediate access of the
34-11    department to facilities that house telecommunications equipment
34-12    and any related facilities.
34-13          SECTION 3.34.  (a)  The telecommunications planning group is
34-14    abolished.
34-15          (b)  The governor, the lieutenant governor, the speaker of
34-16    the house of representatives, the comptroller of public accounts,
34-17    the executive director of the General Services Commission, the
34-18    commissioner of higher education, the chancellor of The University
34-19    of Texas System, and the chancellor of The Texas A&M University
34-20    System shall make appointments to the telecommunications planning
34-21    and oversight council in accordance with Section 2054.201,
34-22    Government Code, as amended by this Act, as soon as possible after
34-23    September 1, 2001.
34-24          (c)  Any powers, duties, rights, contracts, appropriations,
34-25    property, and records of the telecommunications planning group are
34-26    transferred to the telecommunications planning and oversight
 35-1    council as created by this Act.
 35-2          (d)  A rule, policy, plan, waiver, standard, requirement, or
 35-3    guideline of the telecommunications planning group continues in
 35-4    effect as a rule, policy, plan, waiver, standard, requirement, or
 35-5    guideline of the telecommunications planning and oversight council
 35-6    until it is superseded by an act of the telecommunications planning
 35-7    and oversight council as created by this Act or until it expires
 35-8    according to its terms or by operation of law.
 35-9          (e)  The validity of a rule, policy, plan, requirement,
35-10    guideline, or procedure adopted, waiver granted, contract or
35-11    acquisition made, obligation incurred, right accrued, or other
35-12    action taken by or in connection with the authority of the
35-13    telecommunications planning group before it is abolished under
35-14    Subsection (a) of this section is not affected by the abolishment.
35-15          SECTION 3.35.  The telecommunications planning and oversight
35-16    council shall issue the first annual report required under Section
35-17    2054.206, Government Code, as amended by this Act, not later than
35-18    September 1, 2002.
35-19                    ARTICLE 4.  CONTRACTING GUIDELINES
35-20          SECTION 4.01.  Subchapter C, Chapter 2054, Government Code,
35-21    is amended by adding Section 2054.058 to read as follows:
35-22          Sec. 2054.058.  CONTRACTING GUIDELINES.  (a)  The department
35-23    with the assistance of the state auditor's office, the office of
35-24    the attorney general, and the General Services Commission shall
35-25    develop contracting guidelines for state agencies.  The guidelines
35-26    must be developed to accommodate the varying needs of state
 36-1    agencies.  The department shall include in the guidelines
 36-2    information regarding:
 36-3                (1)  contract monitoring;
 36-4                (2)  contractor selection;
 36-5                (3)  subcontractor performance; and
 36-6                (4)  standard contract provisions for common types of
 36-7    contracts.
 36-8          (b)  The department shall:
 36-9                (1)  create training materials for state agency
36-10    personnel who are directly or indirectly involved with contracts;
36-11                (2)  provide ongoing assistance and support for state
36-12    agency contracting efforts;
36-13                (3)  enter into an interagency agreement with the
36-14    office of the attorney general for legal assistance necessary in
36-15    implementing this section; and
36-16                (4)  identify the types of contracts that pose a risk
36-17    of loss to the state and require enhanced contract monitoring, and
36-18    rank the types of contracts according to the amount of risk posed.
36-19          (c)  Each state agency shall comply with the contracting
36-20    guidelines developed by the department under this section.
36-21          (d)  The contracting guidelines developed by the department
36-22    apply only to procurements made with appropriated money.
36-23          SECTION 4.02.  (a)  An interagency work group is created to
36-24    assist the Department of Information Resources in developing
36-25    contracting guidelines for state agency use under Section 2054.058,
36-26    Government Code, as added by this Act.
 37-1          (b)  The interagency work group is composed of:
 37-2                (1)  a representative of:
 37-3                      (A)  the state auditor's office, appointed by the
 37-4    state auditor;
 37-5                      (B)  the office of the attorney general,
 37-6    appointed by the attorney general;
 37-7                      (C)  the comptroller's office, appointed by the
 37-8    comptroller of public accounts; and
 37-9                      (D)  the General Services Commission, appointed
37-10    by the executive director of the commission; and
37-11                (2)  additional members appointed by the governing
37-12    board of the Department of Information Resources from:
37-13                      (A)  institutions of higher education; and
37-14                      (B)  other state agencies.
37-15          (c)  The interagency work group expires on September 1, 2002,
37-16    unless reconvened by the Department of Information Resources, as
37-17    needed.
37-18               ARTICLE 5.  COMMERCIALLY AVAILABLE ACTIVITIES
37-19          SECTION 5.01.  Chapter 2152, Government Code, is amended by
37-20    adding Subchapter D to read as follows:
37-21             SUBCHAPTER D.  COMMERCIALLY AVAILABLE ACTIVITIES
37-22          Sec. 2152.151.  REVIEW PROCESS.  (a)  The commission shall
37-23    develop a systematic review process to identify commercially
37-24    available services being performed by the commission and study the
37-25    services to determine if they may be better provided by other state
37-26    agency providers of the services or private commercial sources.
 38-1          (b)  In reviewing its services, the commission shall:
 38-2                (1)  determine whether competitive vendors exist in the
 38-3    private sector;
 38-4                (2)  compare the cost of contracting for the services
 38-5    from other state agency providers of the services or private
 38-6    commercial sources to the commission's cost of performing the
 38-7    services; and
 38-8                (3)  document cost savings from contracting for the
 38-9    services from other state agency providers of the services or
38-10    private commercial sources.
38-11          (c)  Each commercially available service performed by the
38-12    commission shall be reviewed at least once every six years.
38-13          (d)  The commission shall consult with the State Council on
38-14    Competitive Government as necessary in planning and conducting its
38-15    reviews under this subchapter.
38-16          Sec. 2152.152.  COST COMPARISON AND CONTRACT CONSIDERATIONS.
38-17    (a)  The commission shall consider all of its direct and indirect
38-18    costs in determining the cost of providing a service.
38-19          (b)  In comparing the cost of providing a service, the
38-20    commission must include the:
38-21                (1)  cost of supervising the work of a private
38-22    contractor; and
38-23                (2)  cost to the state of the commission's performance
38-24    of the service, including:
38-25                      (A)  the costs of the comptroller's office, the
38-26    office of the attorney general, and other support agencies; and
 39-1                      (B)  other indirect costs related to the
 39-2    commission's performance of the service.
 39-3          Sec. 2152.153.  CONTRACTING WITH ANOTHER STATE AGENCY OR
 39-4    PRIVATE SOURCE.  (a)  If the commission determines that a service
 39-5    can be performed with a comparable or better level of quality at a
 39-6    savings to the state of at least 10 percent by using other state
 39-7    agency providers of the service or a private commercial source, the
 39-8    commission may contract with other state agency providers of the
 39-9    services or private commercial sources for the service.
39-10          (b)  The commission maintains responsibility for providing a
39-11    contracted service and shall set measurable performance standards
39-12    for a contractor.
39-13          Sec. 2152.154.  PROHIBITION.  The commission may not begin
39-14    providing a service it did not already provide as of September 1,
39-15    2001, unless, after conducting an in-depth analysis on cost in
39-16    accordance with Section 2152.152 and on availability of a service,
39-17    it determines that it can perform the service at a higher level of
39-18    quality or at a lower cost than other state agency providers of the
39-19    service or private commercial sources.
39-20                  ARTICLE 6.  ELECTRONIC COMMERCE; TRAVEL
39-21          SECTION 6.01.  Subsection (a), Section 2155.062, Government
39-22    Code, is amended to read as follows:
39-23          (a)  In purchasing goods and services the commission may use,
39-24    but is not limited to, the:
39-25                (1)  contract purchase procedure;
39-26                (2)  multiple award contract procedure, including under
 40-1    any schedules developed under Subchapter I; [or]
 40-2                (3)  open market purchase procedure; or
 40-3                (4)  reverse auction procedure.
 40-4          SECTION 6.02.  Subsections (c), (d), (f), (k), and (l),
 40-5    Section 2155.083, Government Code, are amended to read as follows:
 40-6          (c)  The commission [department] each business day shall
 40-7    produce and post a business daily in an electronic format.  The
 40-8    commission [department] shall post in the business daily
 40-9    information as prescribed by this section about each state agency
40-10    procurement that will exceed $25,000 in value.  The commission
40-11    [department] shall also post in the business daily other
40-12    information relating to the business activity of the state that the
40-13    commission [department] considers to be of interest to the public.
40-14          (d)  The commission [department] shall make the business
40-15    daily available on the Internet [through its information service
40-16    known as the Texas Marketplace or through a suitable successor
40-17    information service that will make the information available on the
40-18    Internet].  Each [The department and each] state agency shall
40-19    cooperate with the commission in making the electronic business
40-20    daily available.
40-21          (f)  The commission [department] and other state agencies may
40-22    not charge a fee designed to recover the cost of preparing and
40-23    gathering the information that is published in the business daily.
40-24    These costs are considered part of a procuring agency's
40-25    responsibility to publicly inform potential bidders or offerors of
40-26    its procurement opportunities.
 41-1          (k)  Each state agency that will award a procurement contract
 41-2    estimated to exceed $25,000 in value shall send to the commission
 41-3    [department]:
 41-4                (1)  the information the commission [department]
 41-5    requires for posting in the state business daily under this
 41-6    section; and
 41-7                (2)  a notice when the procurement contract has been
 41-8    awarded or when the state agency has decided to not make the
 41-9    procurement.
41-10          (l)  The commission [department] may adopt rules, prescribe
41-11    forms, and require information to administer this section.  The
41-12    commission [department] shall send any proposed rules to the
41-13    governor, Legislative Budget Board, comptroller, and state auditor
41-14    [, and commission] for review and comment.  The commission's
41-15    [department's] rules shall require that each state agency[, to the
41-16    extent feasible,] shall directly and electronically post its own
41-17    notices or solicitation packages under Subsections (g) and (h).
41-18          SECTION 6.03.  Subsections (a) and (b), Section 2156.003,
41-19    Government Code, are amended to read as follows:
41-20          (a)  The commission shall electronically maintain a bidders
41-21    list that is integrated into the electronic procurement marketplace
41-22    established by the Department of Information Resources.  If the
41-23    commission determines that it is in the state's best interest, the
41-24    commission may also maintain the list on paper.  The commission may
41-25    [and] add or delete names from the list according to applicable
41-26    standards provided by Section 2156.007.
 42-1          (b)  In addition to any requirements of Chapter 2177, an [An]
 42-2    invitation to bid on an item to be purchased may be sent
 42-3    electronically [only] to a vendor on the bidders list who has
 42-4    expressed a desire to bid on that type of item.
 42-5          SECTION 6.04.  Section 2171.052, Government Code, is amended
 42-6    by adding Subsection (e) to read as follows:
 42-7          (e)  The commission shall maintain at least one contract with
 42-8    a provider of travel services that offers reservation and ticketing
 42-9    services in person or by telephone.
42-10          SECTION 6.05.  Subchapter B, Chapter 2171, Government Code,
42-11    is amended by adding Section 2171.0521 to read as follows:
42-12          Sec. 2171.0521.  ONLINE RESERVATION AND TICKETING SYSTEM.
42-13    (a)  The Department of Information Resources, in consultation with
42-14    the commission, shall establish an online travel reservation and
42-15    ticketing system for use by state agencies participating in the
42-16    commission's contracts for travel services.  The Department of
42-17    Information Resources, in consultation with the commission, shall
42-18    enter into contracts with private or public entities to establish a
42-19    secure system for use by state employees traveling on state
42-20    business.  Reservations must be made with a state-issued credit
42-21    card.
42-22          (b)  When the online reservation and ticketing system becomes
42-23    fully operational, as determined by the Department of Information
42-24    Resources, the commission shall assume management and
42-25    administrative responsibility for the system.  The commission, in
42-26    consultation with the Department of Information Resources, shall
 43-1    enter into contracts with private or public entities to maintain
 43-2    all or part of the system.
 43-3          (c)  The preference in Section 2171.052(c) for a resident
 43-4    entity of this state does not apply to this section.
 43-5          (d)  A state agency may use the online reservation and
 43-6    ticketing system to make travel reservations for a state employee
 43-7    traveling on state business.
 43-8          SECTION 6.06.  Chapter 2177, Government Code, is amended to
 43-9    read as follows:
43-10                    CHAPTER 2177.  ELECTRONIC COMMERCE
43-11                     SUBCHAPTER A.  GENERAL PROVISIONS
43-12          Sec. 2177.001.  DEFINITIONS.  In this chapter:
43-13                (1)  "Department" means the Department of Information
43-14    Resources.
43-15                (2)  "Electronic procurement system" means the
43-16    electronic system for procuring goods and services consisting of
43-17    the electronic procurement marketplace created under Subchapter B
43-18    and the electronic commerce network created under Subchapter C.
43-19          Sec. 2177.002.  SMALL AND HISTORICALLY UNDERUTILIZED
43-20    BUSINESSES.  The commission and the department shall ensure that
43-21    small and historically underutilized businesses have maximum access
43-22    to electronic commerce opportunities.
43-23          Sec. 2177.003.  CONSULTATION.  The commission, at least
43-24    quarterly, shall consult with the following entities to ensure that
43-25    the electronic procurement system meets the needs of users of the
43-26    system:
 44-1                (1)  the department;
 44-2                (2)  the comptroller;
 44-3                (3)  the state auditor;
 44-4                (4)  groups, including coordinating councils, created
 44-5    by the commission to assist with electronic commerce initiatives;
 44-6                (5)  the vendor advisory committee established under
 44-7    Section 2155.081; and
 44-8                (6)  other state agencies and local governments that
 44-9    use the system.
44-10          Sec. 2177.004.  INTEGRATION WITH TEXAS ONLINE.  (a)  The
44-11    department, with the assistance of the commission, shall assess
44-12    whether all or parts of the electronic procurement system should be
44-13    enhanced by or integrated into the project known as Texas Online
44-14    that is a continuation of the demonstration project authorized by
44-15    Section 2054.062 as enacted by the 76th Legislature.
44-16          (b)  Based on the assessment, the department and the
44-17    commission may integrate all or parts of the electronic procurement
44-18    system into Texas Online or use features of Texas Online to enhance
44-19    the electronic procurement system.
44-20             SUBCHAPTER B.  ELECTRONIC PROCUREMENT MARKETPLACE
44-21          Sec. 2177.051.  ELECTRONIC PROCUREMENT MARKETPLACE.  (a)  The
44-22    department, in consultation with the commission, shall establish
44-23    [and manage] an electronic procurement marketplace.  The
44-24    department, in consultation with the commission, may enter into
44-25    contracts with private or public entities to establish [or
44-26    maintain] all or part of the databases comprising the marketplace,
 45-1    to the extent feasible, including contracts to procure hardware or
 45-2    software.  The department, in consultation with the commission,
 45-3    shall procure all goods and services related to the marketplace
 45-4    through a competitive selection process appropriate for the good or
 45-5    service being acquired.
 45-6          (b)  The department [commission], in consultation with the
 45-7    commission [Department of Information Resources], shall define
 45-8    standards, including keyword and product code standards, for the
 45-9    electronic procurement marketplace.  The marketplace may contain:
45-10                (1)  information relevant to the state's standard
45-11    procurement specifications for goods and services;
45-12                (2)  information about vendors, including [information
45-13    from the centralized master bidders list and] vendor performance
45-14    information;
45-15                (3)  information about products, including product
45-16    testing results;
45-17                (4)  historical purchasing information, qualified
45-18    purchase lists, and trends; [and]
45-19                (5)  information about the availability of surplus
45-20    property; and
45-21                (6)  information about recycled, remanufactured, or
45-22    environmentally sensitive commodities or services, including
45-23    commodities or services identified under Section 2155.448.
45-24          (c)  The department, in consultation with the commission,
45-25    shall integrate the business daily into the electronic procurement
45-26    marketplace.
 46-1          (d)  The department, in consultation with the commission, may
 46-2    adopt rules relating to the design and use of the electronic
 46-3    procurement marketplace that concern the technical requirements of
 46-4    the marketplace.  The commission, in consultation with the
 46-5    department, may adopt rules relating to the use of the marketplace
 46-6    for its intended purpose, including rules that require state
 46-7    agencies to provide information for or receive information from the
 46-8    marketplace.
 46-9          (e)  When the electronic procurement marketplace becomes
46-10    fully operational, as determined by the department, the commission
46-11    shall assume management and administrative responsibility for the
46-12    marketplace.  The commission, in consultation with the department,
46-13    may enter into contracts with private or public entities to
46-14    maintain all or part of the databases comprising the marketplace.
46-15          (f) [(d)]  The commission may make state procurement
46-16    information available to political subdivisions through the
46-17    electronic procurement marketplace on a fee-for-service basis.  The
46-18    commission shall set the fees in an amount that recovers the
46-19    state's costs in providing the access to a political subdivision.
46-20          (g) [(e)]  Before developing a contract for the procurement
46-21    of a good or service, a state agency shall [may] use the electronic
46-22    procurement marketplace as prescribed by this chapter and
46-23    commission rules [to determine the most appropriate method for
46-24    acquiring the good or service].
46-25          (h) [(f)]  The marketplace may contain:
46-26                (1)  information relevant to the state's standard
 47-1    procurement specifications for goods and services;
 47-2                (2)  information about vendors, including [information
 47-3    from the centralized master bidders list and] vendor performance
 47-4    information;
 47-5                (3)  information about products, including product
 47-6    testing results; and
 47-7                (4)  historical purchasing information, qualified
 47-8    purchase lists, and trends.
 47-9          (i) [(g)]  The commission may require information from a
47-10    state agency for inclusion in the electronic procurement
47-11    marketplace.
47-12                SUBCHAPTER C.  ELECTRONIC COMMERCE NETWORK
47-13          Sec. 2177.101.  EXCEPTIONS.  (a)  This subchapter does not
47-14    apply to procurements for major construction projects, as defined
47-15    by the commission in consultation with the department, such as
47-16    procurements made under Chapter 223, Transportation Code.  In
47-17    defining a major construction project, the commission shall base
47-18    its decision on whether the nature of the project, any related
47-19    contract or specifications, or other considerations are of a type
47-20    that would make electronic procurement inappropriate.
47-21          (b)  The exceptions listed under Section 2166.003(a) apply as
47-22    exceptions to this subchapter.
47-23          Sec. 2177.102 [2177.002].  ELECTRONIC COMMERCE NETWORK.
47-24    (a)  The department, in consultation with the commission, shall
47-25    establish [and manage] an electronic commerce network, to the
47-26    extent feasible, under which the state's purchasing transactions
 48-1    with vendors can be accomplished electronically by means of
 48-2    facsimile transmissions and on-line transmission of necessary
 48-3    information.  The department, in consultation with the commission,
 48-4    may adopt rules relating to the design and use of the electronic
 48-5    commerce network that concern the technical requirements of the
 48-6    network.  The commission, in consultation with the department, may
 48-7    adopt rules relating to the use of the network for its intended
 48-8    purpose. [The commission shall comply with applicable rules of the
 48-9    Department of Information Resources to the extent that they are
48-10    based on the standard data protocol developed by the American
48-11    National Standards Institute known as electronic data interchange
48-12    or on other efficient standards as determined by the commission.]
48-13          (b)  The department, in consultation with the commission, may
48-14    enter into contracts with one or more public or private entities to
48-15    establish [or support] various elements of the network.  The
48-16    department, in consultation with the commission, shall procure all
48-17    goods and services related to the network through the competitive
48-18    selection process appropriate for the good or service being
48-19    acquired.
48-20          (c)  The department, in consultation with the commission, may
48-21    provide for a gateway between the electronic procurement
48-22    marketplace and the electronic commerce network so that the
48-23    elements of a procurement transaction that are within state
48-24    government and the elements of a procurement transaction that
48-25    involve communication with a vendor may all be accomplished
48-26    electronically.
 49-1          (d)  When the electronic commerce network becomes fully
 49-2    operational, as determined by the department, the commission shall
 49-3    assume management and administrative responsibility for the
 49-4    network.  The commission, in consultation with the department, may
 49-5    enter into contracts with one or more public or private entities to
 49-6    maintain or support various elements of the network.
 49-7          (e)  Each state agency [that is capable of participating in
 49-8    the electronic commerce network] must participate in the network
 49-9    and participate in contracts entered into by the department or the
49-10    commission for the establishment or support of the network.  The
49-11    commission shall charge an agency a fee for network services
49-12    provided to the agency by the commission or by a contractor so that
49-13    the cost of providing network services to an agency is paid by the
49-14    agency.
49-15          (f) [(e)]  The commission may allow political subdivisions
49-16    and other public entities that are members of the commission's
49-17    cooperative purchasing program to participate in the electronic
49-18    commerce network.  The commission shall require that a
49-19    participating political subdivision or other entity is charged a
49-20    fee for the network services in the same manner that participating
49-21    state agencies are charged fees under Subsection (e) [(d)].
49-22          (g) [(f)]  The commission may also charge private businesses
49-23    a fee for accessing the network.
49-24          (h) [(g)]  The commission may:
49-25                (1)  adopt rules relating to the management or support
49-26    of the network [to administer this section]; and
 50-1                (2)  require participating state agencies, political
 50-2    subdivisions, and other public entities to designate a network
 50-3    coordinator.
 50-4          (i) [(h)]  The requirements of this subchapter [section and
 50-5    Section 2177.003] are in addition to the requirements of other law
 50-6    relating to the solicitation of bids, proposals, or expressions of
 50-7    interest for a procurement by the commission or another state
 50-8    agency.  This subchapter does [section and Section 2177.003 do] not
 50-9    affect any other law that requires the commission or another state
50-10    agency to award a procurement contract through competitive bidding,
50-11    competitive sealed proposals, or another method.
50-12          Sec. 2177.103 [2177.003].  PARTICIPATION BY STATE AGENCIES IN
50-13    ELECTRONIC COMMERCE NETWORK.  (a)  Each state agency shall send to
50-14    the commission for posting on the electronic commerce network
50-15    information on each procurement contract the commission, in
50-16    consultation with the department, determines is appropriate for
50-17    electronic procurement [the value of which will exceed the amount
50-18    of the agency's delegated purchasing authority under Section
50-19    2155.132]:
50-20                (1)  without regard to the source of funds the agency
50-21    will use for the procurement; and
50-22                (2)  including a procurement that is:
50-23                      (A)  a procurement by a state agency that is
50-24    otherwise exempt from the commission's purchasing authority;
50-25                      (B)  made under delegated purchasing authority
50-26    under Section 2155.131; or
 51-1                      (C)  [related to a construction project; or]
 51-2                      [(D)]  a procurement of professional or
 51-3    consulting services.
 51-4          (b)  The commission and each state agency shall include in
 51-5    the information placed on the electronic commerce network[, to the
 51-6    extent it is feasible,] the following information for each
 51-7    procurement that the commission will make or that another state
 51-8    agency will make under Subsection (a):
 51-9                (1)  a description of the goods or services to be
51-10    procured;
51-11                (2)  the estimated quantity of the goods or services to
51-12    be procured;
51-13                (3)  if applicable, the previous price paid by the
51-14    commission or another state agency for the same or similar goods or
51-15    services;
51-16                (4)  the estimated date on which the goods or services
51-17    to be procured will be needed; and
51-18                (5)  the name, business mailing address, and business
51-19    telephone number of the commission employee or other state agency
51-20    employee a person can contact to obtain all necessary information
51-21    relating to making a bid or proposal or other applicable expression
51-22    of interest for the procurement contract.
51-23          (c)  The commission shall also post on the electronic
51-24    commerce network other information relating to the business
51-25    activity of the state that the commission considers to be of
51-26    interest to the public.  Each state agency shall provide the
 52-1    commission with information the commission requires for purposes of
 52-2    this subsection in a format prescribed by the commission.
 52-3          (d)  Each state agency that will award a contract that has
 52-4    been placed on the electronic commerce network under Subsection (a)
 52-5    shall place notification of the awarding of the contract on the
 52-6    electronic commerce network.
 52-7          SECTION 6.07.  Subsection (b), Section 2155.083, Government
 52-8    Code, is repealed.
 52-9          SECTION 6.08.  On September 1, 2001:
52-10                (1)  all functions and activities performed by the
52-11    General Services Commission relating to the establishment of the
52-12    electronic procurement marketplace or the electronic commerce
52-13    network under Chapter 2177, Government Code, immediately before
52-14    that date are transferred to the Department of Information
52-15    Resources;
52-16                (2)  a rule or form adopted by the General Services
52-17    Commission that relates to the establishment of the electronic
52-18    procurement marketplace or the electronic commerce network under
52-19    Chapter 2177, Government Code, is a rule or form of the Department
52-20    of Information Resources and remains in effect until changed by the
52-21    department;
52-22                (3)  a reference in law to the General Services
52-23    Commission that relates to the establishment of the electronic
52-24    procurement marketplace or the electronic commerce network under
52-25    Chapter 2177, Government Code, means the Department of Information
52-26    Resources;
 53-1                (4)  a contract negotiation or other proceeding
 53-2    involving the General Services Commission that is related to the
 53-3    establishment of the electronic procurement marketplace or the
 53-4    electronic commerce network under Chapter 2177, Government Code, is
 53-5    transferred without change in status to the Department of
 53-6    Information Resources, and the Department of Information Resources
 53-7    assumes, without a change in status, the position of the General
 53-8    Services Commission in the negotiation or proceeding to which the
 53-9    General Services Commission is a party;
53-10                (5)  all money, contracts, leases, rights, and
53-11    obligations of the General Services Commission related to the
53-12    establishment of the electronic procurement marketplace or the
53-13    electronic commerce network under Chapter 2177, Government Code,
53-14    are transferred to the Department of Information Resources;
53-15                (6)  all property, including records, in the custody of
53-16    the General Services Commission related to the establishment of the
53-17    electronic procurement marketplace or the electronic commerce
53-18    network under Chapter 2177, Government Code, is transferred to the
53-19    Department of Information Resources; and
53-20                (7)  all funds appropriated by the legislature to the
53-21    General Services Commission related to the establishment of the
53-22    electronic procurement marketplace or the electronic commerce
53-23    network under Chapter 2177, Government Code, are transferred to the
53-24    Department of Information Resources.
53-25          SECTION 6.09.  The General Services Commission and the
53-26    Department of Information Resources shall work together to
 54-1    administer the transfer prescribed by this article and to ensure
 54-2    that the personnel of the General Services Commission who primarily
 54-3    perform duties related to the establishment of the electronic
 54-4    procurement marketplace or the electronic commerce network under
 54-5    Chapter 2177, Government Code, are loaned to the Department of
 54-6    Information Resources until the electronic procurement marketplace
 54-7    and the electronic commerce network under Chapter 2177, Government
 54-8    Code, become fully operational as determined by the Department of
 54-9    Information Resources.
54-10          SECTION 6.10.  Once the electronic procurement marketplace
54-11    and the electronic commerce network under Chapter 2177, Government
54-12    Code, as amended by this Act, become fully operational as
54-13    determined by the Department of Information Resources, all funds,
54-14    obligations, contracts, property, and records of the Department of
54-15    Information Resources related to the marketplace and network become
54-16    the funds, obligations, contracts, property, and records of the
54-17    General Services Commission.
54-18          SECTION 6.11.  Once the online reservation and ticketing
54-19    system under Chapter 2171, Government Code, as amended by this Act,
54-20    becomes fully operational as determined by the Department of
54-21    Information Resources, all funds, obligations, contracts, property,
54-22    and records of the Department of Information Resources related to
54-23    the system become the funds, obligations, contracts, property, and
54-24    records of the General Services Commission.
54-25          SECTION 6.12.  On September 1, 2001:
54-26                (1)  all functions and activities performed by the
 55-1    Texas Department of Economic Development relating to the business
 55-2    daily under Chapter 2155, Government Code, or other law immediately
 55-3    before that date are transferred to the General Services
 55-4    Commission;
 55-5                (2)  a rule or form adopted by the Texas Department of
 55-6    Economic Development that relates to the business daily under
 55-7    Chapter 2155, Government Code, or other law is a rule or form of
 55-8    the General Services Commission and remains in effect until altered
 55-9    by the commission;
55-10                (3)  a reference in law to the Texas Department of
55-11    Economic Development that relates to the business daily under
55-12    Chapter 2155, Government Code, or other law means the General
55-13    Services Commission;
55-14                (4)  all rights and obligations of the Texas Department
55-15    of Economic Development related to the business daily under Chapter
55-16    2155, Government Code, or other law are transferred to the General
55-17    Services Commission; and
55-18                (5)  all property, including records, in the custody of
55-19    the Texas Department of Economic Development related to the
55-20    business daily under Chapter 2155, Government Code, or other law is
55-21    transferred to the General Services Commission.
55-22          SECTION 6.13.  The Department of Information Resources shall
55-23    have the online reservation and ticketing system created under
55-24    Section 2171.0521, Government Code, as added by this Act, fully
55-25    operational by September 1, 2002.
 56-1         ARTICLE 7.  MULTIPLE AWARD CONTRACTS FOR STATE AND LOCAL
 56-2                           GOVERNMENT PURCHASES
 56-3          SECTION 7.01.  Chapter 2155, Government Code, is amended by
 56-4    adding Subchapter I to read as follows:
 56-5              SUBCHAPTER I.  MULTIPLE AWARD CONTRACT SCHEDULE
 56-6          Sec. 2155.501.  DEFINITIONS.  In this subchapter:
 56-7                (1)  "Department" means the Department of Information
 56-8    Resources.
 56-9                (2)  "Local government" has the meaning assigned by
56-10    Section 271.101, Local Government Code.
56-11                (3)  "Multiple award contract" means an award of a
56-12    contract for an indefinite amount of one or more similar goods or
56-13    services from a vendor.
56-14                (4)  "Schedule" means a list of multiple award
56-15    contracts from which agencies may purchase goods and services.
56-16          Sec. 2155.502.  DEVELOPMENT OF MULTIPLE AWARD CONTRACT
56-17    SCHEDULE.  (a)  The commission shall develop a schedule of multiple
56-18    award contracts that have been previously awarded using a
56-19    competitive process by:
56-20                (1)  the federal government, including the federal
56-21    General Services Administration; or
56-22                (2)  any other governmental entity in any state.
56-23          (b)  In developing the schedule under Subsection (a), the
56-24    commission shall modify any contractual terms, with the agreement
56-25    of the parties to the contract, as necessary to comply with any
56-26    federal or state requirements, including rules adopted under this
 57-1    subchapter.
 57-2          (c)  The commission may not list a multiple award contract on
 57-3    a schedule developed under this section if the goods or services
 57-4    provided by that contract are available from only one vendor.
 57-5          Sec. 2155.503.  RULES.  (a)  The commission and the
 57-6    department shall adopt rules to implement this subchapter.  The
 57-7    rules must:
 57-8                (1)  establish standard terms for contracts listed on a
 57-9    schedule; and
57-10                (2)  maintain consistency with existing purchasing
57-11    standards.
57-12          (b)  The commission and the department shall consult with the
57-13    attorney general and the comptroller in developing rules under this
57-14    section.
57-15          Sec. 2155.504.  USE OF SCHEDULE BY GOVERNMENTAL ENTITIES.
57-16    (a)  A state agency or local government may purchase goods or
57-17    services directly from a vendor under a contract listed on a
57-18    schedule developed under this subchapter.  A purchase authorized by
57-19    this section satisfies any requirement of state law relating to
57-20    competitive bids or proposals and satisfies any applicable
57-21    requirements of Chapter 2157.
57-22          (b)  The price listed for a good or service under a multiple
57-23    award contract is a maximum price.  An agency or local government
57-24    may negotiate a lower price for goods or services under a contract
57-25    listed on a schedule developed under this subchapter.
57-26          Sec. 2155.505.  HISTORICALLY UNDERUTILIZED AND SMALL
 58-1    BUSINESSES.  (a)  In this section:
 58-2                (1)  "Historically underutilized business" has the
 58-3    meaning assigned by Section 2161.001.
 58-4                (2)  "Small business" means a small business concern as
 58-5    defined by regulations of the United States Small Business
 58-6    Administration in 13 C.F.R.  Section 121.201.
 58-7          (b)  The commission shall strongly encourage each vendor with
 58-8    a contract listed on a schedule developed under this subchapter and
 58-9    who is not a historically underutilized business or small business
58-10    to use historically underutilized or small businesses to sell or
58-11    provide a service under the contract.  If a vendor does not make a
58-12    good faith effort to use historically underutilized and small
58-13    businesses under the contract, the commission may exclude the
58-14    vendor from being listed on a schedule developed under this
58-15    subchapter.
58-16          (c)  A historically underutilized business or small business
58-17    may sell or provide a service under another vendor's contract
58-18    listed on a schedule developed under this subchapter if:
58-19                (1)  the contract is on a schedule developed under
58-20    Section 2155.502;
58-21                (2)  the vendor for the contract authorizes in writing
58-22    the historically underutilized business or small business to sell
58-23    or provide a service under that contract; and
58-24                (3)  the historically underutilized business or small
58-25    business provides that written authorization to the commission.
58-26          Sec. 2155.506.  REPORTING REQUIREMENTS.  (a)  A vendor listed
 59-1    on a contract for a schedule developed under this subchapter shall
 59-2    report its sales to the commission in the manner prescribed by the
 59-3    commission.
 59-4          (b)  The commission shall compile the information reported
 59-5    under Subsection (a) and include the information in its report
 59-6    under Section 2101.011.
 59-7          Sec. 2155.507.  EXEMPTION FROM CATALOGUE PURCHASE METHOD FOR
 59-8    INFORMATION SYSTEM VENDORS.  Section 2157.062 does not apply to a
 59-9    vendor who applies to be listed on a schedule developed under this
59-10    subchapter.
59-11          Sec. 2155.508.  INTERNET AVAILABILITY.  (a)  The commission
59-12    shall develop a database of the multiple award contracts developed
59-13    under this subchapter and make that information available on an
59-14    Internet site.  The database must have search capabilities that
59-15    allow a person to easily access the contracts.
59-16          (b)  The commission shall allow vendors to apply through the
59-17    Internet site to be listed on a schedule developed under this
59-18    subchapter.  The applicant shall provide an electronic mail address
59-19    to the commission as part of the application process.
59-20          (c)  The department shall post appropriate information
59-21    regarding contracts developed under this subchapter to any
59-22    electronic procurement system developed under Chapter 2177.  On
59-23    request by the department, the commission and any vendor with a
59-24    contract on a schedule developed under this subchapter shall
59-25    provide to the department any information necessary for posting on
59-26    the system.
 60-1          Sec. 2155.509.  NOTICE REGARDING PROCUREMENTS EXCEEDING
 60-2    $25,000.  After a purchase order has been placed, a state agency
 60-3    subject to Section 2155.083 shall post, as required under that
 60-4    section, a procurement made under a contract listed on a schedule
 60-5    developed under this subchapter.
 60-6          SECTION 7.02.  Subsection (a), Section 2155.079, Government
 60-7    Code, is amended to read as follows:
 60-8          (a)  The commission shall adopt rules specifying the
 60-9    circumstances under which it is advantageous for the state to allow
60-10    a state agency to purchase goods or services under a contract made
60-11    by another state agency other than the commission, including as
60-12    provided under Subchapter I.
60-13          SECTION 7.03.  (a)  Not later than March 1, 2002, the General
60-14    Services Commission shall develop initial schedules of multiple
60-15    award contracts under Section 2155.502, Government Code, as added
60-16    by this article.
60-17          (b)  Not later than January 1, 2002, the General Services
60-18    Commission shall adopt the rules required by Subchapter I, Chapter
60-19    2155, Government Code, as added by this article.
60-20                        ARTICLE 8.  STATE CEMETERY
60-21          SECTION 8.01.  Subsection (a), Section 2165.256, Government
60-22    Code, is amended to read as follows:
60-23          (a)  The State Cemetery Committee shall oversee all
60-24    operations of the State Cemetery.  The committee shall develop a
60-25    budget for the operations of the commission relating to the State
60-26    Cemetery and determine the salary of employees of the commission
 61-1    whose duties primarily relate to the operation of the State
 61-2    Cemetery.
 61-3          SECTION 8.02.  Section 2165.2561, Government Code, is amended
 61-4    by amending Subsection (k) and adding Subsections (n) through (u)
 61-5    to read as follows:
 61-6          (k)  The legislature shall separately appropriate money to
 61-7    the committee within the appropriations to the General Services
 61-8    Commission for all matters relating to the operation of the State
 61-9    Cemetery.  [At the direction of the committee, the General Services
61-10    Commission shall spend money appropriated to or budgeted by the
61-11    General Services Commission for State Cemetery purposes.]
61-12    Activities relating to maintenance of the State Cemetery grounds
61-13    and monuments shall conform to guidelines for historic preservation
61-14    submitted to the committee by the Texas Historical Commission.
61-15          (n)  It is a ground for removal from the committee that a
61-16    member:
61-17                (1)  does not have at the time of taking office the
61-18    qualifications required by Subsection (a);
61-19                (2)  does not maintain during service on the committee
61-20    the qualifications required by Subsection (a);
61-21                (3)  is ineligible for membership under Subsection (g)
61-22    or (h);
61-23                (4)  cannot, because of illness or disability,
61-24    discharge the member's duties for a substantial part of the
61-25    member's term; or
61-26                (5)  is absent from more than half of the regularly
 62-1    scheduled committee meetings that the member is eligible to attend
 62-2    during a calendar year without an excuse approved by a majority
 62-3    vote of the committee.
 62-4          (o)  The validity of an action of the committee is not
 62-5    affected by the fact that it is taken when a ground for removal of
 62-6    a committee member exists.
 62-7          (p)  If the executive director of the commission has
 62-8    knowledge that a potential ground for removal exists, the executive
 62-9    director shall notify the presiding officer of the committee of the
62-10    potential ground.  The presiding officer shall then notify the
62-11    governor and the attorney general that a potential ground for
62-12    removal exists.  If the potential ground for removal involves the
62-13    presiding officer, the executive director shall notify the next
62-14    highest ranking officer of the committee, who shall then notify the
62-15    governor and the attorney general that a potential ground for
62-16    removal exists.
62-17          (q)  The executive director of the commission or the
62-18    executive director's designee shall provide to members of the
62-19    committee, as often as necessary, information regarding the
62-20    requirements for office under this chapter, including information
62-21    regarding a person's responsibilities under applicable laws
62-22    relating to standards of conduct for state officers.
62-23          (r)  A person who is appointed to and qualifies for office as
62-24    a member of the committee may not vote, deliberate, or be counted
62-25    as a member in attendance at a meeting of the committee until the
62-26    person completes a training program that complies with this
 63-1    subsection.  The training program must provide the person with
 63-2    information regarding:
 63-3                (1)  the legislation that created the State Cemetery
 63-4    and the State Cemetery Committee;
 63-5                (2)  the programs operated by the committee;
 63-6                (3)  the role and functions of the committee;
 63-7                (4)  the rules of the committee, with an emphasis on
 63-8    any rules that relate to disciplinary and investigatory authority;
 63-9                (5)  the current budget for the committee;
63-10                (6)  the results of the most recent formal audit of
63-11    cemetery operations;
63-12                (7)  the requirements of:
63-13                      (A)  the open meetings law, Chapter 551;
63-14                      (B)  the public information law, Chapter 552;
63-15                      (C)  the administrative procedure law, Chapter
63-16    2001; and
63-17                      (D)  other laws relating to public officials,
63-18    including conflict-of-interest laws; and
63-19                (8)  any applicable ethics policies adopted by the
63-20    commission, the committee, or the Texas Ethics Commission.
63-21          (s)  A person appointed to the committee is entitled to
63-22    reimbursement, as provided by Chapter 660 and the General
63-23    Appropriations Act, for the travel expenses incurred in attending
63-24    the training program regardless of whether the attendance at the
63-25    program occurs before or after the person qualifies for office.
63-26          (t)  The committee shall develop and implement policies that
 64-1    clearly separate the policymaking responsibilities of the committee
 64-2    and the management responsibilities of the executive director of
 64-3    the commission and staff of the cemetery.
 64-4          (u)  The committee shall develop and implement policies that
 64-5    provide the public with a reasonable opportunity to appear before
 64-6    the committee and to speak on any issue under the jurisdiction of
 64-7    the committee.
 64-8          SECTION 8.03.  (a)  The changes in law made by this Act in
 64-9    the prohibitions and qualifications applying to members of the
64-10    State Cemetery Committee do not affect the entitlement of a member
64-11    serving on the committee immediately before September 1, 2001, to
64-12    continue to serve and function as a member of the committee for the
64-13    remainder of the member's term.  The changes in law apply only to a
64-14    member appointed on or after September 1, 2001.  This Act does not
64-15    prohibit a person who is a member of the State Cemetery Committee
64-16    immediately before September 1, 2001, from being reappointed as a
64-17    committee member if the person has the qualifications required for
64-18    the position under Chapter 2165, Government Code, as amended by
64-19    this Act.
64-20          (b)  Subsection (r), Section 2165.2561, Government Code, as
64-21    added by this Act, does not apply to a member of the State Cemetery
64-22    Committee until March 1, 2002.
64-23          SECTION 8.04.  The changes in law made by this Act to the
64-24    State Cemetery's appropriations process apply in relation to the
64-25    fiscal biennium beginning on September 1, 2003.
 65-1             ARTICLE 9.  CONTRACTING METHODS FOR CONSTRUCTION
 65-2                            OF STATE FACILITIES
 65-3          SECTION 9.01.  Subchapter F, Chapter 2166, Government Code,
 65-4    is amended by adding Section 2166.2511 to read as follows:
 65-5          Sec. 2166.2511.  DEFINITIONS.  In this subchapter:
 65-6                (1)  "Architect" means an individual registered as an
 65-7    architect under Chapter 478, Acts of the 45th Legislature, Regular
 65-8    Session, 1937 (Article 249a, Vernon's Texas Civil Statutes).
 65-9                (2)  "Contractor" in the context of a contract for a
65-10    project means a sole proprietorship, partnership, corporation, or
65-11    other legal entity that assumes the risk for constructing,
65-12    rehabilitating, altering, or repairing all or part of the project
65-13    at the contracted price.
65-14                (3)  "Engineer" means an individual registered as a
65-15    professional engineer under The Texas Engineering Practice Act
65-16    (Article 3271a, Vernon's Texas Civil Statutes).
65-17                (4)  "Facility" means buildings or structures the
65-18    design and construction of which is governed by accepted building
65-19    codes.  The term does not include:
65-20                      (A)  highways, roads, streets, bridges,
65-21    utilities, water supply projects, water plants, wastewater plants,
65-22    water and wastewater distribution or conveyance facilities,
65-23    wharves, docks, airport runways and taxiways, drainage projects, or
65-24    related types of projects associated with civil engineering
65-25    construction; or
65-26                      (B)  buildings or structures that are incidental
 66-1    to projects that are primarily civil engineering construction
 66-2    projects.
 66-3                (5)  "Fee" in the context of a contract for a project
 66-4    means the payment a construction manager receives for its overhead
 66-5    and profit in performing its services.
 66-6                (6)  "General conditions" in the context of a contract
 66-7    for a project means on-site management, administrative personnel,
 66-8    insurance, bonds, equipment, utilities, and incidental work,
 66-9    including minor field labor and materials.
66-10          SECTION 9.02.  Subchapter F, Chapter 2166, Government Code,
66-11    is amended by adding Section 2166.2525 to read as follows:
66-12          Sec. 2166.2525.  DETERMINATION OF CONTRACTING METHOD.  The
66-13    commission shall adopt rules that determine the circumstances for
66-14    use of each method of contracting allowed under this subchapter for
66-15    design and construction services.  In developing the rules, the
66-16    commission shall solicit advice and comment from design and
66-17    construction professionals regarding the criteria the commission
66-18    will use in determining which contracting method is best suited for
66-19    a project.
66-20          SECTION 9.03.  Subchapter F, Chapter 2166, Government Code,
66-21    is amended by adding Section 2166.2526 to read as follows:
66-22          Sec. 2166.2526.  EVALUATION OF BIDS AND PROPOSALS FOR
66-23    CONSTRUCTION SERVICES.  (a)  For each project, the commission must,
66-24    before advertising, establish which method of contracting provides
66-25    the best value for the commission or using agency.
66-26          (b)  Under each method of contracting, the commission shall
 67-1    base its selection among the offerors on criteria established by
 67-2    the commission.  The commission shall publish in the request for
 67-3    bids, proposals, or qualifications all of the criteria that will be
 67-4    used to evaluate the offerors.
 67-5          (c)  The commission shall document the basis of its selection
 67-6    of an offeror and shall make the evaluations public not later than
 67-7    the seventh day after the date the contract is awarded.
 67-8          SECTION 9.04.  Section 2166.253, Government Code, is amended
 67-9    to read as follows:
67-10          Sec. 2166.253.  LOWEST AND BEST BID METHOD [BIDDING
67-11    PROCEDURES].  (a)  The commission may use the lowest and best bid
67-12    method for a project.  In using that method, the commission shall
67-13    follow the procedures provided by Subsections (b)-(g).
67-14          (b)  After final approval of a project's working plans and
67-15    specifications and their acceptance by a using agency, the
67-16    commission shall advertise in one newspaper of general circulation
67-17    and the Texas Register for bids or proposals for the construction
67-18    of and related work on the project.
67-19          (c) [(b)]  Except as provided by Subsection (d) [(c)], the
67-20    commission shall allow bidders not less than 30 days after the date
67-21    the commission issues the bid documents to respond to an invitation
67-22    to bid.
67-23          (d) [(c)]  The commission shall allow bidders for small
67-24    construction projects not less than 14 days after the date the
67-25    commission issues the bid documents to respond to an invitation to
67-26    bid.
 68-1          (e) [(d)]  The commission may shorten the time for response
 68-2    to prevent undue additional costs to a state agency or, for
 68-3    emergency projects, to prevent or remove a hazard to life or
 68-4    property.
 68-5          (f)  A contract shall be awarded to the qualified bidder
 68-6    making the lowest and best bid in accordance with the law on
 68-7    awarding a state contract.
 68-8          (g)  The commission may reject all bids.
 68-9          SECTION 9.05.  Subchapter F, Chapter 2166, Government Code,
68-10    is amended by adding Section 2166.2531 to read as follows:
68-11          Sec. 2166.2531.  DESIGN-BUILD METHOD.  (a)  In this section:
68-12                (1)  "Design-build contract" means a single contract
68-13    with a design-build firm for the design and construction of a
68-14    facility.
68-15                (2)  "Design-build firm" means a partnership,
68-16    corporation, or other legal entity or team that includes an
68-17    engineer or architect and a builder qualified to engage in building
68-18    construction in this state.
68-19                (3)  "Design criteria package" means a set of documents
68-20    that provides sufficient information to permit a design-build firm
68-21    to prepare a response to the commission's request for
68-22    qualifications and any additional information requested, including
68-23    criteria for selection.  The design criteria package must specify
68-24    criteria the commission considers necessary to describe the project
68-25    and may include, as appropriate, the legal description of the site,
68-26    survey information concerning the site, interior space
 69-1    requirements, special material requirements, material quality
 69-2    standards, conceptual criteria for the project, special equipment
 69-3    requirements, cost or budget estimates, time schedules, quality
 69-4    assurance and quality control requirements, site development
 69-5    requirements, applicable codes and ordinances, provisions for
 69-6    utilities, parking requirements, or any other requirement, as
 69-7    applicable.
 69-8          (b)  The commission may use the design-build method for a
 69-9    project.  In using that method and in entering into a contract for
69-10    the services of a design-build firm, the commission and the
69-11    design-build firm shall follow the procedures provided by
69-12    Subsections (c)-(k).
69-13          (c)  The commission shall designate an engineer or architect
69-14    to act as its representative.  If the commission's engineer or
69-15    architect is not a full-time employee of the commission, any
69-16    engineer or architect designated shall be selected on the basis of
69-17    demonstrated competence and qualifications in accordance with
69-18    Subchapter A, Chapter 2254.
69-19          (d)  The commission shall prepare a request for
69-20    qualifications that includes general information on the project
69-21    site, project scope, budget, special systems, selection criteria,
69-22    and other information that may assist potential design-build firms
69-23    in submitting proposals for the project.  The commission shall also
69-24    prepare a design criteria package that includes more detailed
69-25    information on the project.  If the preparation of the design
69-26    criteria package requires engineering or architectural services
 70-1    that constitute the practice of engineering within the meaning of
 70-2    The Texas Engineering Practice Act (Article 3271a, Vernon's Texas
 70-3    Civil Statutes) or the practice of architecture within the meaning
 70-4    of Chapter 478, Acts of the 45th Legislature, Regular Session, 1937
 70-5    (Article 249a, Vernon's Texas Civil Statutes), those services shall
 70-6    be provided in accordance with the applicable law.
 70-7          (e)  The commission or its representative shall publish the
 70-8    request for qualifications in a manner prescribed by the
 70-9    commission.
70-10          (f)(1)  The commission or its representative shall evaluate
70-11    statements of qualifications and select a design-build firm in two
70-12    phases.
70-13                (2)  In phase one, the commission or its representative
70-14    shall prepare a request for qualifications and evaluate each
70-15    offeror's experience, technical competence, and capability to
70-16    perform, the past performance of the offeror's team and members of
70-17    the team, and other appropriate factors submitted by the team or
70-18    firm in response to the request for qualifications, except that
70-19    cost-related or price-related evaluation factors are not permitted.
70-20    Each offeror must certify to the commission that each engineer or
70-21    architect that is a member of its team was selected based on
70-22    demonstrated competence and qualifications.  The commission or its
70-23    representative shall qualify a maximum of five offerors to submit
70-24    additional information and, if the commission or its representative
70-25    chooses, to interview for final selection.
70-26                (3)  In phase two, the commission or its representative
 71-1    shall evaluate the information submitted by the offerors on the
 71-2    basis of the selection criteria stated in the request for
 71-3    qualifications and the results of any interview.  The commission or
 71-4    its representative may request additional information regarding
 71-5    demonstrated competence and qualifications, considerations of the
 71-6    safety and long-term durability of the project, the feasibility of
 71-7    implementing the project as proposed, the ability of the offeror to
 71-8    meet schedules, costing methodology, or other factors as
 71-9    appropriate.  The commission or its representative may not require
71-10    offerors to submit detailed engineering or architectural designs as
71-11    part of the proposal.  The commission or its representative shall
71-12    rank each proposal submitted on the basis of the criteria specified
71-13    in the request for qualifications.  The commission or its
71-14    representative shall select the design-build firm that submits the
71-15    proposal offering the best value for the commission or using agency
71-16    on the basis of the published selection criteria and on its ranking
71-17    evaluations.  The commission or its representative shall first
71-18    attempt to negotiate a contract with the selected offeror.  If the
71-19    commission or its representative is unable to negotiate a
71-20    satisfactory contract with the selected offeror, the commission
71-21    shall, formally and in writing, end all negotiations with that
71-22    offeror and proceed to negotiate with the next offeror in the order
71-23    of the selection ranking until a contract is reached or
71-24    negotiations with all ranked offerors end.
71-25          (g)  Following selection of a design-build firm under
71-26    Subsection (f), that firm's engineers or architects shall complete
 72-1    the design, submitting all design elements for review and
 72-2    determination of scope compliance by the commission's engineer or
 72-3    architect before or concurrently with the beginning of
 72-4    construction.
 72-5          (h)  An engineer shall have responsibility for compliance
 72-6    with the engineering design requirements and all other applicable
 72-7    requirements of The Texas Engineering Practice Act (Article 3271a,
 72-8    Vernon's Texas Civil Statutes).  An architect shall have
 72-9    responsibility for compliance with the requirements of Chapter 478,
72-10    Acts of the 45th Legislature, Regular Session, 1937 (Article 249a,
72-11    Vernon's Texas Civil Statutes).
72-12          (i)  The commission shall provide or contract for,
72-13    independently of the design-build firm, the inspection services,
72-14    the testing of construction materials engineering, and the
72-15    verification testing services necessary for acceptance of the
72-16    facility by the commission.  The commission shall select those
72-17    services for which it contracts in accordance with Section
72-18    2254.004.
72-19          (j)  The design-build firm shall supply a signed and sealed
72-20    set of construction documents for the project to the commission at
72-21    the conclusion of construction.
72-22          (k)  A payment or performance bond is not required for, and
72-23    may not provide coverage for, the portion of a design-build
72-24    contract under this section that includes design services only.  If
72-25    a fixed contract amount or guaranteed maximum price has not been
72-26    determined at the time a design-build contract is awarded, the
 73-1    penal sums of the performance and payment bonds delivered to the
 73-2    commission shall each be in an amount equal to the project budget,
 73-3    as specified in the design criteria package.  The design-build firm
 73-4    shall deliver the bonds not later than the 10th day after the date
 73-5    the design-build firm executes the contract unless the design-build
 73-6    firm furnishes a bid bond or other financial security acceptable to
 73-7    the commission to ensure that the design-build firm will furnish
 73-8    the required performance and payment bonds when a guaranteed
 73-9    maximum price is established.
73-10          SECTION 9.06.  Subchapter F, Chapter 2166, Government Code,
73-11    is amended by adding Section 2166.2532 to read as follows:
73-12          Sec. 2166.2532.  CONSTRUCTION MANAGER-AT-RISK METHOD.
73-13    (a)  The commission may use the construction manager-at-risk method
73-14    for a project.  In using that method and in entering into a
73-15    contract for the services of a construction manager-at-risk, the
73-16    commission shall follow the procedures prescribed by this section.
73-17          (b)  A construction manager-at-risk is a sole proprietorship,
73-18    partnership, corporation, or other legal entity that assumes the
73-19    risk for construction, rehabilitation, alteration, or repair of a
73-20    facility at the contracted price as a general contractor and
73-21    provides consultation to the commission regarding construction
73-22    during and after the design of the facility.
73-23          (c)  Before or concurrently with selecting a construction
73-24    manager-at-risk, the commission shall select or designate an
73-25    engineer or architect who shall prepare the construction documents
73-26    for the project and who has full responsibility for complying with
 74-1    The Texas Engineering Practice Act (Article 3271a, Vernon's Texas
 74-2    Civil Statutes) or Chapter 478, Acts of the 45th Legislature,
 74-3    Regular Session, 1937 (Article 249a, Vernon's Texas Civil
 74-4    Statutes), as applicable.  If the engineer or architect is not a
 74-5    full-time employee of the commission, the commission shall select
 74-6    the engineer or architect on the basis of demonstrated competence
 74-7    and qualifications as provided by Section 2254.004.  The
 74-8    commission's engineer or architect for a project may not serve,
 74-9    alone or in combination with another, as the construction
74-10    manager-at-risk.
74-11          (d)  The commission shall provide or contract for,
74-12    independently of the construction manager-at-risk, the inspection
74-13    services, the testing of construction materials engineering, and
74-14    the verification testing services necessary for acceptance of the
74-15    facility by the commission.  The commission shall select those
74-16    services for which it contracts in accordance with Section
74-17    2254.004.
74-18          (e)  The commission shall select the construction
74-19    manager-at-risk in either a one-step or two-step process.  The
74-20    commission shall prepare a request for proposals, in the case of a
74-21    one-step process, or a request for qualifications, in the case of a
74-22    two-step process, that includes general information on the project
74-23    site, project scope, schedule, selection criteria, estimated
74-24    budget, and the time and place for receipt of proposals or
74-25    qualifications, as applicable; a statement as to whether the
74-26    selection process is a one-step or two-step process; and other
 75-1    information that may assist the commission in its selection of a
 75-2    construction manager-at-risk.  The commission shall state the
 75-3    selection criteria in the request for proposals or qualifications,
 75-4    as applicable.  The selection criteria may include the offeror's
 75-5    experience, past performance, safety record, proposed personnel and
 75-6    methodology, and other appropriate factors that demonstrate the
 75-7    capability of the construction manager-at-risk.  If a one-step
 75-8    process is used, the commission may request, as part of the
 75-9    offeror's proposal, proposed fees and prices for fulfilling the
75-10    general conditions.  If a two-step process is used, the commission
75-11    may not request fees or prices in step one.  In step two, the
75-12    commission may request that five or fewer offerors, selected solely
75-13    on the basis of qualifications, provide additional information,
75-14    including the construction manager-at-risk's proposed fee and its
75-15    price for fulfilling the general conditions.
75-16          (f)  The commission shall publish the request for
75-17    qualifications in a manner prescribed by the commission.
75-18          (g)  At each step, the commission shall receive, publicly
75-19    open, and read aloud the names of the offerors.  At the appropriate
75-20    step, the commission shall also read aloud the fees and prices, if
75-21    any, stated in each proposal as the proposal is opened.  Within 45
75-22    days after the date of opening the proposals, the commission or its
75-23    representative shall evaluate and rank each proposal submitted in
75-24    relation to the criteria set forth in the request for proposals.
75-25          (h)  The commission or its representative shall select the
75-26    offeror that submits the proposal that offers the best value for
 76-1    the commission or using agency based on the published selection
 76-2    criteria and on its ranking evaluation.  The commission or its
 76-3    representative shall first attempt to negotiate a contract with the
 76-4    selected offeror.  If the commission or its representative is
 76-5    unable to negotiate a satisfactory contract with the selected
 76-6    offeror, the commission or its representative shall, formally and
 76-7    in writing, end negotiations with that offeror and proceed to
 76-8    negotiate with the next offeror in the order of the selection
 76-9    ranking until a contract is reached or negotiations with all ranked
76-10    offerors end.
76-11          (i)  A construction manager-at-risk shall publicly advertise,
76-12    in the manner prescribed by the commission, and receive bids or
76-13    proposals from trade contractors or subcontractors for the
76-14    performance of all major elements of the work other than the minor
76-15    work that may be included in the general conditions.  A
76-16    construction manager-at-risk may seek to perform portions of the
76-17    work itself if the construction manager-at-risk submits its bid or
76-18    proposal for those portions of the work in the same manner as all
76-19    other trade contractors or subcontractors and if the commission
76-20    determines that the construction manager-at-risk's bid or proposal
76-21    provides the best value for the commission or using agency.
76-22          (j)  The construction manager-at-risk and the commission or
76-23    its representative shall review all trade contractor or
76-24    subcontractor bids or proposals in a manner that does not disclose
76-25    the contents of the bid or proposal during the selection process to
76-26    a person not employed by the construction manager-at-risk,
 77-1    engineer, architect, or commission.  All bids or proposals shall be
 77-2    made public after the award of the contract or within seven days
 77-3    after the date of final selection of bids and proposals, whichever
 77-4    is later.
 77-5          (k)  If the construction manager-at-risk reviews, evaluates,
 77-6    and recommends to the commission a bid or proposal from a trade
 77-7    contractor or subcontractor but the commission requires another bid
 77-8    or proposal to be accepted, the commission shall compensate the
 77-9    construction manager-at-risk by a change in price, time, or
77-10    guaranteed maximum cost for any additional cost and risk that the
77-11    construction manager-at-risk may incur because of the commission's
77-12    requirement that another bid or proposal be accepted.
77-13          (l)  If a selected trade contractor or subcontractor defaults
77-14    in the performance of its work or fails to execute a subcontract
77-15    after being selected in accordance with this section, the
77-16    construction manager-at-risk may, without advertising, itself
77-17    fulfill the contract requirements or select a replacement trade
77-18    contractor or subcontractor to fulfill the contract requirements.
77-19          (m)  If a fixed contract amount or guaranteed maximum price
77-20    has not been determined at the time the contract is awarded, the
77-21    penal sums of the performance and payment bonds delivered to the
77-22    commission must each be in an amount equal to the project budget,
77-23    as set forth in the request for qualifications.  The construction
77-24    manager-at-risk shall deliver the bonds not later than the 10th day
77-25    after the date the construction manager-at-risk executes the
77-26    contract unless the construction manager-at-risk furnishes a bid
 78-1    bond or other financial security acceptable to the commission to
 78-2    ensure that the construction manager-at-risk will furnish the
 78-3    required performance and payment bonds when a guaranteed maximum
 78-4    price is established.
 78-5          SECTION 9.07.  Subchapter F, Chapter 2166, Government Code,
 78-6    is amended by adding Section 2166.2533 to read as follows:
 78-7          Sec. 2166.2533.  COMPETITIVE SEALED PROPOSAL METHOD.
 78-8    (a)  The commission may select a contractor for a project using the
 78-9    competitive sealed proposal method prescribed by this section.
78-10          (b)  The commission shall select or designate an engineer or
78-11    architect to prepare construction documents for the project.  The
78-12    selected or designated engineer or architect has full
78-13    responsibility for complying with The Texas Engineering Practice
78-14    Act (Article 3271a, Vernon's Texas Civil Statutes) or Chapter 478,
78-15    Acts of the 45th Legislature, Regular Session, 1937 (Article 249a,
78-16    Vernon's Texas Civil Statutes), as applicable.  If the engineer or
78-17    architect is not a full-time employee of the commission, the
78-18    commission shall select the engineer or architect on the basis of
78-19    demonstrated competence and qualifications as provided by Section
78-20    2254.004.
78-21          (c)  The commission shall provide or contract for,
78-22    independently of the contractor, the inspection services, the
78-23    testing of construction materials engineering, and the verification
78-24    testing services necessary for acceptance of the facility by the
78-25    commission.  The commission shall select those services for which
78-26    it contracts in accordance with Section 2254.004 and shall identify
 79-1    them in the request for proposals.
 79-2          (d)  The commission shall prepare a request for competitive
 79-3    sealed proposals that includes construction documents, selection
 79-4    criteria, estimated budget, project scope, schedule, and other
 79-5    information that contractors may require to respond to the request.
 79-6    The commission shall state in the request for proposals all of the
 79-7    selection criteria that will be used in selecting the successful
 79-8    offeror.
 79-9          (e)  The commission shall publish notice of the request for
79-10    proposals in a manner prescribed by the commission.
79-11          (f)  The commission shall receive, publicly open, and read
79-12    aloud the names of the offerors and, if any are required to be
79-13    stated, all prices stated in each proposal.  Within 45 days after
79-14    the date of opening the proposals, the commission shall evaluate
79-15    and rank each proposal submitted in relation to the published
79-16    selection criteria.
79-17          (g)  The commission shall select the offeror that offers the
79-18    best value for the commission or using agency based on the
79-19    published selection criteria and on its ranking evaluation.  The
79-20    commission shall first attempt to negotiate a contract with the
79-21    selected offeror.  The commission and its engineer or architect may
79-22    discuss with the selected offeror options for a scope or time
79-23    modification and any price change associated with the modification.
79-24    If the commission is unable to reach a contract with the selected
79-25    offeror, the commission shall, formally and in writing, end
79-26    negotiations with that offeror and proceed to the next offeror in
 80-1    the order of the selection ranking until a contract is reached or
 80-2    all proposals are rejected.
 80-3          (h)  In determining the best value for the commission or
 80-4    using agency, the commission is not restricted to considering price
 80-5    alone but may consider any other factor stated in the selection
 80-6    criteria.
 80-7          SECTION 9.08.  Section 2166.255, Government Code, is amended
 80-8    to read as follows:
 80-9          Sec. 2166.255.  AMOUNT [AWARD] OF CONTRACT.  [(a)  A contract
80-10    shall be awarded to the qualified bidder making the lowest and best
80-11    bid in accordance with the law on awarding a state contract.]
80-12          [(b)  The commission may reject all bids.]
80-13          [(c)]  A contract may not be awarded for an amount greater
80-14    than the amount that the comptroller certifies to be available for
80-15    the project.
80-16          SECTION 9.09.  (a)  The changes in law made by this Act to
80-17    the General Services Commission's contract procedures apply only to
80-18    a construction project for which the General Services Commission
80-19    first advertises or otherwise solicits bids, proposals, offers, or
80-20    qualifications, as applicable, on or after September 1, 2001.
80-21          (b)  A construction project for which the General Services
80-22    Commission first advertised or otherwise solicited bids, proposals,
80-23    offers, or qualifications, as applicable, before September 1, 2001,
80-24    is governed by the law as it existed immediately before the
80-25    effective date of this Act, and that law is continued in effect for
80-26    that purpose.
 81-1                ARTICLE 10.  LEASING OF STATE OFFICE SPACE
 81-2          SECTION 10.01.  Subchapter A, Chapter 2167, Government Code,
 81-3    is amended by adding Section 2167.0021 to read as follows:
 81-4          Sec. 2167.0021.  BEST VALUE STANDARD FOR LEASE OF SPACE.
 81-5    (a)  The commission shall lease space for the use of a state agency
 81-6    on the basis of obtaining the best value for the state.
 81-7          (b)  The commission shall adopt rules establishing guidelines
 81-8    for the determination of best value in a lease contract.  In
 81-9    determining the best value, the commission may consider:
81-10                (1)  the cost of the lease contract;
81-11                (2)  the condition and location of lease space;
81-12                (3)  utility costs;
81-13                (4)  access to public transportation;
81-14                (5)  parking availability;
81-15                (6)  security;
81-16                (7)  telephone service availability;
81-17                (8)  indicators of probable lessor performance under
81-18    the contract, such as the lessor's financial resources and the
81-19    lessor's experience;
81-20                (9)  compliance with the architectural barriers law,
81-21    Article 9102, Revised Statutes; and
81-22                (10)  other relevant factors.
81-23          (c)  This section does not prohibit the commission from
81-24    leasing space from the offeror that offers the space at the lowest
81-25    cost if the commission determines that doing so obtains the best
81-26    value for the state.
 82-1          SECTION 10.02.  Section 2167.003, Government Code, is amended
 82-2    to read as follows:
 82-3          Sec. 2167.003.  FIRST CONSIDERATION TO HISTORIC STRUCTURE.
 82-4    (a)  In leasing space for the use of a state agency, the commission
 82-5    or the private brokerage or real estate firm assisting the
 82-6    commission shall give first consideration to a building that is
 82-7    designated as a historic structure under Section 442.001 or to a
 82-8    building that has been designated a landmark by a local governing
 82-9    authority, if:
82-10                (1)  the building meets requirements and
82-11    specifications; and
82-12                (2)  the cost is not substantially higher than the cost
82-13    for other available buildings that meet requirements and
82-14    specifications.
82-15          (b)  When it considers leasing space for a state agency, the
82-16    commission or the private brokerage or real estate firm assisting
82-17    the commission shall notify each individual and organization that
82-18    is:
82-19                (1)  on a list furnished to the commission by the Texas
82-20    Historical Commission under Section 442.005; and
82-21                (2)  in the county in which the commission is
82-22    considering leasing space.
82-23          (c)  At the end of a biennium, the commission shall report to
82-24    the legislature the commission's reasons for rejecting during the
82-25    biennium the lease of any historic structure that was offered as
82-26    [in a bid to] lease space to the state.
 83-1          SECTION 10.03.  Section 2167.005, Government Code, is amended
 83-2    to read as follows:
 83-3          Sec. 2167.005.  DELEGATION OF AUTHORITY TO STATE AGENCIES
 83-4    [INSTITUTIONS OF HIGHER EDUCATION].  (a)  The commission may
 83-5    delegate to a state agency, including an institution of higher
 83-6    education, the authority to enter into lease contracts for space
 83-7    [for which payments are not made from money appropriated from the
 83-8    general revenue fund].
 83-9          (b)  Any reports on the lease contracts made [by an
83-10    institution of higher education] under this delegated authority
83-11    shall be required annually.
83-12          SECTION 10.04.  Subsection (b), Section 2167.006, Government
83-13    Code, is amended to read as follows:
83-14          (b)  A state agency, including an [An] institution of higher
83-15    education, may not enter a lease contract under Section 2167.005
83-16    unless the agency [institution] complies with the architectural
83-17    barriers law, Article 9102, Revised Statutes.
83-18          SECTION 10.05.  Section 2167.052, Government Code, is amended
83-19    by amending Subsection (a) and adding Subsection (c) to read as
83-20    follows:
83-21          (a)  Space may be leased from a private source through:
83-22                (1)  competitive bidding; [or]
83-23                (2)  competitive sealed proposals under Section
83-24    2167.054; or
83-25                (3)  direct negotiation.
83-26          (c)  The commission shall use the method for leasing space
 84-1    that provides the best value for the state.
 84-2          SECTION 10.06.  Subsections (a) and (c), Section 2167.053,
 84-3    Government Code, are amended to read as follows:
 84-4          (a)  When space is leased through competitive bidding, the
 84-5    commission shall determine the [lowest and best] bid that provides
 84-6    the best value for the state after considering moving costs, the
 84-7    cost of time lost in moving, the cost of telecommunications
 84-8    services, and other relevant factors.
 84-9          (c)  If, after review of the bids and evaluation of all
84-10    relevant factors, the leasing state agency's opinion is that the
84-11    bid selected by the commission is not the [lowest and best] bid
84-12    that provides the best value for the state, it may file with the
84-13    commission a written recommendation that the award be made to a
84-14    bidder other than the commission's recommended bidder.  The leasing
84-15    state agency's recommendation must contain the agency's
84-16    justification for its recommendation and a complete explanation of
84-17    all factors it considered.
84-18          SECTION 10.07.  Subsections (a), (g), and (i), Section
84-19    2167.054, Government Code, are amended to read as follows:
84-20          (a)  The commission may lease space using competitive sealed
84-21    proposals [if the commission first determines that competitive
84-22    bidding is not practical or is disadvantageous to the state].
84-23          (g)  The commission shall make a written award of a lease to
84-24    the offeror whose proposal provides the best value for [is the most
84-25    advantageous to] the state, considering price and the evaluation
84-26    factors in the request for proposals.  [The commission may not use
 85-1    other factors or criteria in its evaluation.]  The commission shall
 85-2    state in writing in the contract file the reasons for which an
 85-3    award is made.
 85-4          (i)  If the competitive sealed proposal procedure for leasing
 85-5    space is used by a state agency [an institution of higher
 85-6    education] that has been delegated leasing authority under Section
 85-7    2167.005, the agency [institution:]
 85-8                [(1)  must first determine that competitive bidding is
 85-9    not practical or is disadvantageous to the state; and]
85-10                [(2)]  shall follow the procedures outlined by this
85-11    section and any rules adopted by the commission.
85-12          SECTION 10.08.  Subchapter B, Chapter 2167, Government Code,
85-13    is amended by adding Section 2167.0541 to read as follows:
85-14          Sec. 2167.0541.  USE OF PRIVATE FIRMS TO OBTAIN SPACE.
85-15    (a)  The commission may contract with one or more private brokerage
85-16    or real estate firms to assist the commission in obtaining lease
85-17    space for state agencies on behalf of the commission under this
85-18    chapter.
85-19          (b)  A private brokerage or real estate firm with which the
85-20    commission contracts under Subsection (a) may assist the commission
85-21    in leasing facilities under this chapter.
85-22          SECTION 10.09.  Subsection (b), Section 2167.055, Government
85-23    Code, is amended to read as follows:
85-24          (b)  A [The] lease contract entered into under Section
85-25    2167.053 or 2167.054 must reflect the provisions contained in the
85-26    invitation for bids or request for proposals, the successful bid or
 86-1    proposal, and the award of the contract.
 86-2          SECTION 10.10.  Subchapter C, Chapter 2167, Government Code,
 86-3    is amended by adding Sections 2167.105, 2167.106, and 2167.107 to
 86-4    read as follows:
 86-5          Sec. 2167.105.  REPORT ON NONCOMPLIANCE.  If the commission
 86-6    determines that a state agency has not complied with the
 86-7    commission's rules or with other state law related to leasing
 86-8    requirements, the commission shall report the noncompliance to the
 86-9    members of the state agency's governing body and to the governor,
86-10    lieutenant governor, and speaker of the house of representatives.
86-11    The commission shall include in its report an estimate of the
86-12    fiscal impact resulting from the noncompliance.
86-13          Sec. 2167.106.  ANNUAL REPORT.  The staff of the commission
86-14    shall annually submit a report to the commission regarding
86-15    opportunities for delegating leasing authority to state agencies
86-16    with statewide operations.  The report must include comments from
86-17    state agencies with statewide operations.
86-18          Sec. 2167.107.  WAREHOUSE SPACE USE STUDY.  (a)  The
86-19    commission shall evaluate the operation of the first four
86-20    state-leased warehouses in Austin for which the leases expire after
86-21    October 1, 2001.  The commission shall work with the state agency
86-22    that operates the warehouse to reduce inefficient warehouse space
86-23    use and adopt practices that can reduce the agency's need for
86-24    warehouse space and eliminate warehouse leases.
86-25          (b)  The commission and the state agency shall:
86-26                (1)  identify excess inventory;
 87-1                (2)  determine the most appropriate ways to eliminate
 87-2    excess inventory; and
 87-3                (3)  determine the extent to which the state agency
 87-4    uses the following management principles in operating the
 87-5    warehouse:
 87-6                      (A)  automated order processing;
 87-7                      (B)  training customers how to use the supply
 87-8    system;
 87-9                      (C)  changing relationships with suppliers to
87-10    reduce inventory maintained by the state agency;
87-11                      (D)  establishing supplier support agreements to
87-12    reduce the time for delivery from a supplier;
87-13                      (E)  training supply staff to use information to
87-14    manage supplies; and
87-15                      (F)  reducing administrative cycle times through
87-16    automation.
87-17          (c)  The commission shall assist the state agency operating
87-18    the warehouse in developing a plan to reduce the need for warehouse
87-19    space by reducing inventory, selling surplus property, and
87-20    efficiently managing warehouse operations.  Each agency shall
87-21    include the plan as part of its strategic plan submitted under
87-22    Chapter 2056 during calendar year 2002.
87-23          (d)  This section expires September 1, 2003.
87-24          SECTION 10.11.  A lease contract entered into by the General
87-25    Services Commission before September 1, 2001, under Chapter 2167,
87-26    Government Code, is governed during the remaining term of the lease
 88-1    by Chapter 2167, Government Code, as it existed immediately before
 88-2    September 1, 2001, and the prior law is continued in effect for
 88-3    this purpose.  Chapter 2167, Government Code, as amended by this
 88-4    Act, applies to the renewal of a lease described by this section.
 88-5                       ARTICLE 11.  SURPLUS PROPERTY
 88-6          SECTION 11.01.  Section 2175.065, Government Code, is amended
 88-7    to read as follows:
 88-8          Sec. 2175.065.  DELEGATION OF AUTHORITY TO STATE AGENCY.
 88-9    (a)  The commission may authorize a state agency to dispose of
88-10    surplus or salvage property if the agency demonstrates to the
88-11    commission its ability to dispose of the property under Subchapters
88-12    C and E in a manner that results in cost savings to the state,
88-13    under commission rules adopted under this chapter.
88-14          (b)  The commission shall establish by rule the criteria for
88-15    determining that a delegation of authority to a state agency
88-16    results in cost savings to the state.
88-17          SECTION 11.02.  Subchapters C and D, Chapter 2175, Government
88-18    Code, are amended to read as follows:
88-19          SUBCHAPTER C.  DIRECT TRANSFER OR OTHER DISPOSITION OF
88-20                SURPLUS OR SALVAGE PROPERTY BY STATE AGENCY
88-21          Sec. 2175.121.  APPLICABILITY.  This subchapter applies only
88-22    to surplus or salvage property to which Subchapter D does not
88-23    apply.
88-24          Sec. 2175.122.  STATE AGENCY NOTICE TO COMMISSION AND
88-25    COMPTROLLER.  A state agency that determines it has surplus or
88-26    salvage property shall inform the commission and the comptroller of
 89-1    the property's kind, number, location, condition, original cost or
 89-2    value, and date of acquisition.
 89-3          Sec. 2175.123.  DETERMINING METHOD OF DISPOSAL.  (a)  Based
 89-4    on the condition of the property, a state agency shall determine
 89-5    whether the property is:
 89-6                (1)  surplus property that should be offered for
 89-7    transfer under Section 2175.125 or sold to the public; or
 89-8                (2)  salvage property.
 89-9          (b)  The state agency shall inform the commission and the
89-10    comptroller of its determination.
89-11          Sec. 2175.124 [2175.122].  COMMISSION NOTICE TO OTHER
89-12    ENTITIES.  After a determination that [On receiving notice from] a
89-13    state agency [that the agency] has surplus [or salvage] property,
89-14    the commission shall inform other state agencies, political
89-15    subdivisions, and assistance organizations of the comptroller's
89-16    website that lists surplus property that is available for sale [the
89-17    property's kind, number, location, and condition].
89-18          Sec. 2175.1245.  ADVERTISING ON COMPTROLLER WEBSITE.  Not
89-19    later than the second day after the date the comptroller receives
89-20    notice from a state agency that the agency has surplus property,
89-21    the comptroller shall advertise the property's kind, number,
89-22    location, and condition on the comptroller's website.
89-23          Sec. 2175.125 [2175.123].  DIRECT TRANSFER.  During the 10
89-24    business [30] days after the date the property is posted on the
89-25    comptroller's website [following dissemination of information under
89-26    Section 2175.122], a state agency, political subdivision, or
 90-1    assistance organization may coordinate directly with the reporting
 90-2    state agency for a transfer of the property at a price established
 90-3    by the reporting agency.
 90-4          Sec. 2175.126 [2175.124].  NOTICE OF TRANSFER TO COMPTROLLER;
 90-5    ADJUSTMENT OF APPROPRIATIONS AND PROPERTY ACCOUNTING RECORDS;
 90-6    REMOVAL FROM WEBSITE.  (a)  If property is transferred to a state
 90-7    agency, the participating agencies shall report the transaction to
 90-8    the comptroller.
 90-9          (b)  On receiving notice under this section, the comptroller
90-10    shall, if necessary:
90-11                (1)  debit and credit the proper appropriations; and
90-12                (2)  adjust state property accounting records.
90-13          (c)  Not later than the second day after the date the
90-14    comptroller receives notice under Subsection (a), the comptroller
90-15    shall remove the property from the list of surplus property for
90-16    sale on the comptroller's website.
90-17          Sec. 2175.127 [2175.125].  PRIORITY FOR TRANSFER TO STATE
90-18    AGENCY.  During the 10 business [30] days after the date the
90-19    property is posted on the comptroller's website [of notice under
90-20    Section 2175.122], a transfer to a state agency has priority over
90-21    any other transfer under rules adopted by the commission.
90-22          Sec. 2175.128 [2175.126].  DISPOSITION OF DATA PROCESSING
90-23    EQUIPMENT.  (a)  If a disposition of a state agency's surplus or
90-24    salvage data processing equipment is not made under Section
90-25    2175.125 or 2175.184 [this subchapter], the state agency shall
90-26    transfer the equipment to the Texas Department of Criminal Justice.
 91-1    The state agency may not collect a fee or other reimbursement from
 91-2    the Texas Department of Criminal Justice for the surplus or salvage
 91-3    data processing equipment.
 91-4          (b)  If a disposition of the surplus or salvage data
 91-5    processing equipment of a state eleemosynary institution or an
 91-6    institution or agency of higher education is not made under other
 91-7    law, the institution or agency shall transfer the equipment to the
 91-8    Texas Department of Criminal Justice.  The institution or agency
 91-9    may not collect a fee or other reimbursement from the Texas
91-10    Department of Criminal Justice for the surplus or salvage data
91-11    processing equipment.
91-12             [SUBCHAPTER D.  DISPOSITION OF SURPLUS OR SALVAGE
91-13                     PROPERTY BY COMPETITIVE BIDDING]
91-14          Sec. 2175.129 [2175.181].  DISPOSITION BY COMPETITIVE
91-15    BIDDING, [OR] AUCTION, OR DIRECT SALE.  (a)  If a disposition of a
91-16    state agency's surplus [or salvage] property is not made under
91-17    Section 2175.125 [Subchapter C], the commission shall:
91-18                (1)  sell the property by competitive bid, [or]
91-19    auction, or direct sale to the public, including a sale using an
91-20    Internet auction site; or
91-21                (2)  delegate to the state agency authority to sell the
91-22    property by competitive bid, auction, or direct sale to the public,
91-23    including a sale using an Internet auction site [bidding].
91-24          (b)  The commission or a state agency to which authority is
91-25    delegated under Subsection (a)(2) or under Section 2175.065 shall
91-26    determine which method of sale shall be used based on the method
 92-1    that is most advantageous to the state under the circumstances.
 92-2    The commission shall adopt rules establishing guidelines for making
 92-3    that determination.
 92-4          (c)  In using an Internet auction site to sell surplus
 92-5    property under this section, the commission or state agency shall
 92-6    post the property on the site for at least 10 days.
 92-7          Sec. 2175.130.  DISPOSITION BY DIRECT SALE TO PUBLIC.
 92-8    (a)  If the commission or a state agency to which authority is
 92-9    delegated under Section 2175.129(a)(2) or 2175.065 determines that
92-10    selling the property by competitive bid or auction, including a
92-11    sale using an Internet auction site, would not maximize the resale
92-12    value of the property to the state, the commission or agency may
92-13    sell surplus or salvage property directly to the public.
92-14          (b)  The commission, in cooperation with the state agency
92-15    that declared the property as surplus, or a state agency to which
92-16    authority is delegated under Section 2175.129(a)(2) or 2175.065
92-17    shall set a fixed price for the property.
92-18          Sec. 2175.131 [2175.182].  PURCHASER'S FEE.  (a)  The
92-19    commission or a state agency disposing of property by a method
92-20    other than direct transfer under this subchapter shall collect a
92-21    fee from the purchaser.
92-22          (b)  The commission or state agency shall set the fee at an
92-23    amount that is:
92-24                (1)  sufficient to recover costs associated with the
92-25    sale; and
92-26                (2)  at least two percent but not more than 12 percent
 93-1    of sale proceeds.
 93-2          Sec. 2175.132 [2175.183].  ADVERTISEMENT OF SALE.  If the
 93-3    value of an item or a lot of property to be sold is estimated to be
 93-4    more than $5,000, the commission or the state agency authorized to
 93-5    sell the property shall advertise the sale at least once in at
 93-6    least one newspaper of general circulation in the vicinity in which
 93-7    the property is located.
 93-8          Sec. 2175.133 [2175.184].  REPORTING SALE; PROPERTY
 93-9    ACCOUNTING ADJUSTMENT.  (a)  On the sale by the commission of
93-10    surplus or salvage property, the commission shall report the
93-11    property sold and the sale price to the state agency that declared
93-12    the property as surplus or salvage.
93-13          (b)  A state agency for which surplus or salvage property is
93-14    sold or that sells surplus or salvage property under authority of
93-15    the commission shall report the sale and amount of sale proceeds to
93-16    the comptroller.
93-17          (c)  If property reported under this section is on the state
93-18    property accounting system, the comptroller shall remove the
93-19    property from the property accounting records.
93-20          Sec. 2175.134 [2175.185].  PROCEEDS OF SALE.  (a)  Proceeds
93-21    from the sale of surplus or salvage property, less the cost of
93-22    advertising the sale, the cost of selling the surplus or salvage
93-23    property, including the cost of auctioneer services, and the amount
93-24    of the fee collected under Section 2175.131 [2175.182], shall be
93-25    deposited to the credit of the appropriate appropriation item of
93-26    the state agency for which the sale was made.
 94-1          (b)  The portion of sale proceeds equal to the cost of
 94-2    advertising the sale and the cost of selling the surplus or salvage
 94-3    property, including the cost of auctioneer services, shall be
 94-4    deposited in the state treasury to the credit of the appropriation
 94-5    item of the commission or other state agency from which the costs
 94-6    were paid.
 94-7          Sec. 2175.135 [2175.186].  PURCHASER'S TITLE.  A purchaser of
 94-8    surplus [or salvage] property at a sale conducted under Section
 94-9    2175.129 or 2175.130 [this subchapter] obtains good title to the
94-10    property if the purchaser has in good faith complied with:
94-11                (1)  the conditions of the sale; and
94-12                (2)  applicable commission rules.
94-13             SUBCHAPTER D.  DISPOSITION OF SURPLUS OR SALVAGE
94-14                          PROPERTY BY COMMISSION
94-15          Sec. 2175.181.  APPLICABILITY.  (a)  This subchapter applies
94-16    only to surplus and salvage property located in:
94-17                (1)  Travis County;
94-18                (2)  a county in which federal surplus property is
94-19    warehoused by the commission under Subchapter G; or
94-20                (3)  a county for which the commission determines that
94-21    it is cost-effective to follow the procedures created under this
94-22    subchapter and informs affected state agencies of that
94-23    determination.
94-24          (b)  This subchapter does not apply to a state agency
94-25    delegated the authority to dispose of surplus or salvage property
94-26    under Section 2175.065.
 95-1          Sec. 2175.1815.  ALTERNATIVE APPLICABILITY.  (a)
 95-2    Notwithstanding Section 2175.181, until January 1, 2003, this
 95-3    subchapter applies only to a state agency selected by the
 95-4    commission to participate in the disposal process created under
 95-5    this subchapter.
 95-6          (b)  Subchapter C applies to a state agency that is not
 95-7    selected by the commission to participate under this subchapter.
 95-8          (c)  This section expires January 1, 2003.
 95-9          Sec. 2175.182.  STATE AGENCY TRANSFER OF PROPERTY TO
95-10    COMMISSION.  (a)  The commission is responsible for the disposal of
95-11    surplus or salvage property under this subchapter.  The commission
95-12    may take physical possession of the property.  A state agency
95-13    maintains ownership of property throughout the disposal process.
95-14          (b)  Based on the condition of the property, the commission
95-15    shall determine whether the property is:
95-16                (1)  surplus property that should be offered for
95-17    transfer under Section 2175.184 or sold to the public; or
95-18                (2)  salvage property.
95-19          (c)  The commission shall inform the comptroller's office of
95-20    the property's kind, number, location, condition, original cost or
95-21    value, and date of acquisition.
95-22          Sec. 2175.1825.  ADVERTISING ON COMPTROLLER WEBSITE.  Not
95-23    later than the second day after the date the comptroller receives
95-24    notice from the commission under Section 2175.182(c), the
95-25    comptroller shall advertise the property's kind, number, location,
95-26    and condition on the comptroller's website.
 96-1          Sec. 2175.183.  COMMISSION NOTICE TO OTHER ENTITIES.  On
 96-2    taking responsibility for surplus property under this subchapter,
 96-3    the commission shall inform other state agencies, political
 96-4    subdivisions, and assistance organizations of the comptroller's
 96-5    website that lists surplus property that is available for sale.
 96-6          Sec. 2175.184.  DIRECT TRANSFER.  During the 10 business days
 96-7    after the date the property is posted on the comptroller's website,
 96-8    a state agency, political subdivision, or assistance organization
 96-9    may coordinate with the commission for a transfer of the property
96-10    at a price established by the commission in cooperation with the
96-11    transferring agency.  A transfer to a state agency has priority
96-12    over any other transfer during this period.
96-13          Sec. 2175.185.  NOTICE OF TRANSFER TO COMPTROLLER; ADJUSTMENT
96-14    OF APPROPRIATIONS AND PROPERTY ACCOUNTING RECORDS; REMOVAL FROM
96-15    WEBSITE.  (a)  If property is transferred to a state agency under
96-16    Section 2175.184, the participating agencies shall report the
96-17    transaction to the comptroller.
96-18          (b)  On receiving notice under this section, the comptroller
96-19    shall, if necessary:
96-20                (1)  debit and credit the proper appropriations; and
96-21                (2)  adjust state property accounting records.
96-22          (c)  Not later than the second day after the date the
96-23    comptroller receives notice under Subsection (a), the comptroller
96-24    shall remove the property from the list of surplus property for
96-25    sale on the comptroller's website.
96-26          Sec. 2175.186.  DISPOSITION BY COMPETITIVE BIDDING, AUCTION,
 97-1    OR DIRECT SALE.  (a)  If a disposition of a state agency's surplus
 97-2    property is not made under Section 2175.184, the commission shall
 97-3    sell the property by competitive bid, auction, or direct sale to
 97-4    the public, including a sale using an Internet auction site.
 97-5          (b)  The commission shall determine which method of sale
 97-6    shall be used based on the method that is most advantageous to the
 97-7    state under the circumstances.  The commission shall adopt rules
 97-8    establishing guidelines for making that determination.
 97-9          (c)  In using an Internet auction site to sell surplus
97-10    property under this section, the commission shall post the property
97-11    on the site for at least 10 days.
97-12          Sec. 2175.187.  DISPOSITION BY DIRECT SALE TO PUBLIC.
97-13    (a)  If the commission determines that selling the property by
97-14    competitive bid or auction, including a sale using an Internet
97-15    auction site, would not maximize the resale value of the property
97-16    to the state, the commission may sell surplus property directly to
97-17    the public.
97-18          (b)  The commission shall set a fixed price for the property
97-19    in cooperation with the state agency that owns the property.
97-20          Sec. 2175.188.  PURCHASER'S FEE.  (a)  For property that is
97-21    sold under Section 2175.186 or 2175.187, the commission shall
97-22    collect a fee from the purchaser.
97-23          (b)  The commission shall set the fee at an amount that is:
97-24                (1)  sufficient to recover costs associated with the
97-25    sale; and
97-26                (2)  at least two percent but not more than 12 percent
 98-1    of sale proceeds.
 98-2          Sec. 2175.189.  ADVERTISEMENT OF SALE.  If the value of an
 98-3    item or a lot of property to be sold is estimated to be more than
 98-4    $5,000, the commission shall advertise the sale at least once in at
 98-5    least one newspaper of general circulation in the vicinity in which
 98-6    the property is located.
 98-7          Sec. 2175.190.  REPORTING SALE; PROPERTY ACCOUNTING
 98-8    ADJUSTMENT.  (a)  On the sale by the commission of surplus or
 98-9    salvage property, the commission shall report the property sold and
98-10    the sale price to the state agency that owned the property and to
98-11    the comptroller.
98-12          (b)  If property reported under this section is on the state
98-13    property accounting system, the comptroller shall remove the
98-14    property from the property accounting records.
98-15          Sec. 2175.191.  PROCEEDS OF SALE.  (a)  Proceeds from the
98-16    sale of surplus or salvage property, less the cost of advertising
98-17    the sale, the cost of selling the surplus or salvage property,
98-18    including the cost of auctioneer services, and the amount of the
98-19    fee collected under Section 2175.188, shall be deposited to the
98-20    credit of the appropriate appropriation item of the state agency
98-21    for which the sale was made.
98-22          (b)  The portion of sale proceeds equal to the cost of
98-23    advertising the sale and the cost of selling the surplus or salvage
98-24    property, including the cost of auctioneer services, if any, shall
98-25    be deposited in the state treasury to the credit of the
98-26    appropriation item of the commission.
 99-1          Sec. 2175.192.  PURCHASER'S TITLE.  A purchaser of surplus
 99-2    property at a sale conducted under Section 2175.186 or 2175.187
 99-3    obtains good title to the property if the purchaser has in good
 99-4    faith complied with:
 99-5                (1)  the conditions of the sale; and
 99-6                (2)  applicable commission rules.
 99-7          Sec. 2175.193.  CONTRACTS FOR DESTRUCTION OF PROPERTY.  The
 99-8    commission shall contract for the disposal of property under
 99-9    Subchapter E in a manner that maximizes value to the state.
99-10          SECTION 11.03.  This article takes effect January 1, 2002.
99-11                   ARTICLE 12.  PAPER RECYCLING PROGRAM
99-12          SECTION 12.01.  Section 2175.902, Government Code, is amended
99-13    to read as follows:
99-14          Sec. 2175.902.  MANDATORY PAPER RECYCLING PROGRAM.  (a)  The
99-15    commission shall establish a mandatory recycling program for a
99-16    state agency that occupies a building [and maintain in each
99-17    building] under its control [procedures for collecting separately
99-18    from other wastes all paper for recycling disposed of in that
99-19    building].  By rule, the commission shall:
99-20                (1)  establish guidelines and procedures for collecting
99-21    and recycling of paper;
99-22                (2)  set recycling goals and performance measures;
99-23                (3)  require state agencies to designate a recycling
99-24    coordinator;
99-25                (4)  provide employee and custodial education and
99-26    training;
 100-1               (5)  provide recognition and evaluative and corrective
 100-2   information to state agencies when appropriate; and
 100-3               (6)  inform state agencies when proper recycling
 100-4   methods are not used.
 100-5         (b)  If the commission finds that a state agency's recycling
 100-6   program meets or exceeds the standards created under Subsection
 100-7   (a), the [The] commission may delegate its responsibility under
 100-8   this section [subsection] to a state agency located in a [each]
 100-9   building under its control.
100-10         (c) [(b)]  The commission or a state agency with delegated
100-11   responsibility under Subsection (b) [(a)] shall sell the paper for
100-12   recycling to the highest bidder.
100-13         (d)  The commission may enter into an interagency agreement
100-14   to provide recycling services to a state agency otherwise excluded
100-15   from the program.
100-16                       ARTICLE 13.  EFFECTIVE DATE
100-17         SECTION 13.01.  Except as otherwise provided by this Act,
100-18   this Act takes effect September 1, 2001.