1-1                                   AN ACT
 1-2     relating to the abolition of the General Services Commission; to
 1-3     the transfer of its functions to a newly created Texas Building and
 1-4     Procurement Commission; and to the operations of certain other
 1-5     state agencies having functions transferred from or associated with
 1-6     the General Services Commission, including the Department of
 1-7     Information Resources, the telecommunications planning and
 1-8     oversight council, the attorney general, the Legislative Budget
 1-9     Board, and the State Cemetery Committee.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11            ARTICLE 1.  ABOLITION OF GENERAL SERVICES COMMISSION;
1-12                        TRANSFER OF POWERS AND DUTIES
1-13           SECTION 1.01.  Subdivision (4), Section 1232.003, Government
1-14     Code, is amended to read as follows:
1-15                 (4)  "Commission" means the Texas Building and
1-16     Procurement [General Services] Commission.
1-17           SECTION 1.02.  Subdivision (1), Section 2151.002, Government
1-18     Code, is amended to read as follows:
1-19                 (1)  "Commission" means the Texas Building and
1-20     Procurement [General Services] Commission.
1-21           SECTION 1.03.  Section 2151.003, Government Code, is amended
1-22     to read as follows:
1-23           Sec. 2151.003.  REFERENCE.  A statutory reference to the
1-24     General Services Commission, the State Board of Control, or the
1-25     State Purchasing and General Services Commission means the Texas
 2-1     Building and Procurement [General Services] Commission.
 2-2           SECTION 1.04.  Chapter 2151, Government Code, is amended by
 2-3     adding Section 2151.004 to read as follows:
 2-4           Sec. 2151.004.  TRANSFER OF POWERS AND DUTIES TO DEPARTMENT
 2-5     OF INFORMATION RESOURCES.  (a)  The powers and duties of the
 2-6     General Services Commission under Chapter 2170 or other law
 2-7     relating to providing telecommunications services for state
 2-8     government are transferred to the Department of Information
 2-9     Resources.
2-10           (b)  A reference in law to the General Services Commission
2-11     that relates to the powers and duties of the General Services
2-12     Commission under Chapter 2170 or other law relating to providing
2-13     telecommunications services for state government is a reference to
2-14     the Department of Information Resources.
2-15           SECTION 1.05.  The heading of Chapter 2152, Government Code,
2-16     is amended to read as follows:
2-17                CHAPTER 2152.  TEXAS BUILDING AND PROCUREMENT
2-18                        [GENERAL SERVICES] COMMISSION
2-19           SECTION 1.06.  Section 2152.001, Government Code, is amended
2-20     to read as follows:
2-21           Sec. 2152.001.  COMMISSION.  The Texas Building and
2-22     Procurement [General Services] Commission is an agency of the
2-23     state.
2-24           SECTION 1.07.  Section 2152.002, Government Code, is amended
2-25     to read as follows:
2-26           Sec. 2152.002.  SUNSET PROVISION.  The Texas Building and
 3-1     Procurement [General Services] Commission is subject to Chapter 325
 3-2     (Texas Sunset Act).  Unless continued in existence as provided by
 3-3     that chapter, the commission is abolished and this subtitle, except
 3-4     for Chapter 2170 and Section 2157.121, expires September 1, 2013
 3-5     [2001].
 3-6           SECTION 1.08.  Section 2152.051, Government Code, is amended
 3-7     to read as follows:
 3-8           Sec. 2152.051.  COMPOSITION OF COMMISSION.  (a)  The
 3-9     commission consists of:
3-10                 (1)  three members appointed by the governor;
3-11                 (2)  two additional members appointed by the governor
3-12     from a list of nominees submitted by the speaker of the house of
3-13     representatives; and
3-14                 (3)  two members appointed by the lieutenant governor
3-15     [is composed of six representatives of the public appointed by the
3-16     governor with the advice and consent of the senate].
3-17           (b)  In making an appointment under Subsection (a)(2), the
3-18     governor may reject one or more of the nominees on a list submitted
3-19     by the speaker of the house of representatives and request a new
3-20     list of different nominees.
3-21           SECTION 1.09.  Subsection (b), Section 2152.052, Government
3-22     Code, is amended to read as follows:
3-23           (b)  In making appointments under this section, the governor
3-24     and lieutenant governor shall attempt to appoint women and members
3-25     of different minority groups, including African Americans, Hispanic
3-26     Americans, Native Americans, and Asian Americans.
 4-1           SECTION 1.10.  Subsections (b) and (c), Section 2152.054,
 4-2     Government Code, are amended to read as follows:
 4-3           (b)  An officer, employee, or paid consultant of a Texas
 4-4     trade association of business entities that contracts with the
 4-5     state may not:
 4-6                 (1)  serve as a commission member; or
 4-7                 (2)  be employed as a commission employee in a "bona
 4-8     fide executive, administrative, or professional capacity," as that
 4-9     phrase is used for purposes of establishing an exemption to the
4-10     overtime provisions of the federal Fair Labor Standards Act of 1938
4-11     (29 U.S.C. Section 201 et seq.) and its subsequent amendments [who
4-12     is exempt from the state's position classification plan or is
4-13     compensated at or above the amount prescribed by the General
4-14     Appropriations Act for step 1, salary group 17, of the position
4-15     classification salary schedule].
4-16           (c)  An individual who is the spouse of an officer, manager,
4-17     or paid consultant of a Texas trade association of business
4-18     entities that contracts with the state may not:
4-19                 (1)  serve as a commission member; or
4-20                 (2)  be employed as a commission employee in a "bona
4-21     fide executive, administrative, or professional capacity," as that
4-22     phrase is used for purposes of establishing an exemption to the
4-23     overtime provisions of the federal Fair Labor Standards Act of 1938
4-24     (29 U.S.C. Section 201 et seq.) and its subsequent amendments [who
4-25     is exempt from the state's position classification plan or is
4-26     compensated at or above the amount prescribed by the General
 5-1     Appropriations Act for step 1, salary group 17, of the position
 5-2     classification salary schedule].
 5-3           SECTION 1.11.  Subsection (c), Section 2152.056, Government
 5-4     Code, is amended to read as follows:
 5-5           (c)  If the executive director has knowledge that a potential
 5-6     ground for removal exists, the executive director shall notify the
 5-7     presiding officer of the commission of the potential ground.  The
 5-8     presiding officer shall then notify the governor and the attorney
 5-9     general that a potential ground for removal exists.  If the
5-10     potential ground for removal involves the presiding officer, the
5-11     executive director shall notify the next highest ranking officer of
5-12     the commission, who shall then notify the governor and the attorney
5-13     general that a potential ground for removal exists.
5-14           SECTION 1.12.  Section 2152.057, Government Code, is amended
5-15     to read as follows:
5-16           Sec. 2152.057.  TERMS.  Commission members serve staggered
5-17     six-year terms with two or three members' terms expiring January 31
5-18     of each odd-numbered year.
5-19           SECTION 1.13.  Subchapter B, Chapter 2152, Government Code,
5-20     is amended by adding Section 2152.0581 to read as follows:
5-21           Sec. 2152.0581.  TRAINING FOR COMMISSION MEMBERS.  (a)  A
5-22     person who is appointed to and qualifies for office as a member of
5-23     the commission may not vote, deliberate, or be counted as a member
5-24     in attendance at a meeting of the commission until the person
5-25     completes a training program that complies with this section.
5-26           (b)  The training program must provide the person with
 6-1     information regarding:
 6-2                 (1)  the legislation that created the commission;
 6-3                 (2)  the programs operated by the commission;
 6-4                 (3)  the role and functions of the commission;
 6-5                 (4)  the rules of the commission, with an emphasis on
 6-6     the rules that relate to disciplinary and investigatory authority;
 6-7                 (5)  the current budget for the commission;
 6-8                 (6)  the results of the most recent formal audit of the
 6-9     commission;
6-10                 (7)  the requirements of:
6-11                       (A)  the open meetings law, Chapter 551;
6-12                       (B)  the public information law, Chapter 552;
6-13                       (C)  the administrative procedure law, Chapter
6-14     2001; and
6-15                       (D)  other laws relating to public officials,
6-16     including conflict-of-interest laws; and
6-17                 (8)  any applicable ethics policies adopted by the
6-18     commission or the Texas Ethics Commission.
6-19           (c)  A person appointed to the commission is entitled to
6-20     reimbursement, as provided by the General Appropriations Act, for
6-21     the travel expenses incurred in attending the training program
6-22     regardless of whether the attendance at the program occurs before
6-23     or after the person qualifies for office.
6-24           SECTION 1.14.  Section 2152.060, Government Code, is amended
6-25     by amending Subsection (b) and adding Subsection (d) to read as
6-26     follows:
 7-1           (b)  The commission shall maintain a [keep an information]
 7-2     file on [about] each written complaint filed with the commission
 7-3     [that the commission has authority to resolve].  The file must
 7-4     include:
 7-5                 (1)  the name of the person who filed the complaint;
 7-6                 (2)  the date the complaint is received by the
 7-7     commission;
 7-8                 (3)  the subject matter of the complaint;
 7-9                 (4)  the name of each person contacted in relation to
7-10     the complaint;
7-11                 (5)  a summary of the results of the review or
7-12     investigation of the complaint; and
7-13                 (6)  an explanation of the reason the file was closed,
7-14     if the commission closed the file without taking action other than
7-15     to investigate the complaint.
7-16           (d)  The commission shall provide to the person filing the
7-17     complaint and to each person who is a subject of the complaint a
7-18     copy of the commission's policies and procedures relating to
7-19     complaint investigation and resolution.
7-20           SECTION 1.15.  Subchapter C, Chapter 2152, Government Code,
7-21     is amended by adding Section 2152.110 to read as follows:
7-22           Sec. 2152.110.  STATE EMPLOYEE INCENTIVE PROGRAM.  The
7-23     executive director or the executive director's designee shall
7-24     provide to commission employees information and training on the
7-25     benefits and methods of participation in the state employee
7-26     incentive program under Subchapter B, Chapter 2108.
 8-1           SECTION 1.16.  On October 1, 2001:
 8-2                 (1)  the Department of Information Resources replaces
 8-3     the General Services Commission as the telecommunications services
 8-4     provider for state government;
 8-5                 (2)  all functions and activities performed by the
 8-6     General Services Commission that relate to providing
 8-7     telecommunications services for state government or to the
 8-8     establishment of the electronic procurement marketplace or the
 8-9     electronic commerce network under Chapters 2170 and 2177,
8-10     Government Code, or other law immediately before that date are
8-11     transferred to the Department of Information Resources;
8-12                 (3)  all employees of the General Services Commission
8-13     who primarily perform duties related to providing
8-14     telecommunications services for state government or to the
8-15     establishment of the electronic procurement marketplace or the
8-16     electronic commerce network, including employees who provide
8-17     administrative support for those services, under Chapters 2170 and
8-18     2177, Government Code, or other law become employees of the
8-19     Department of Information Resources, but continue to work in the
8-20     same physical location unless moved in accordance with the plan
8-21     created under Section 1.17 of this Act;
8-22                 (4)  a rule or form adopted by the General Services
8-23     Commission that relates to providing telecommunications services
8-24     for state government or to the establishment of the electronic
8-25     procurement marketplace or the electronic commerce network under
8-26     Chapters 2170 and 2177, Government Code, or other law is a rule or
 9-1     form of the Department of Information Resources and remains in
 9-2     effect until changed by the department;
 9-3                 (5)  a reference in law to the General Services
 9-4     Commission that relates to providing telecommunications services
 9-5     for state government or to the establishment of the electronic
 9-6     procurement marketplace or the electronic commerce network under
 9-7     Chapters 2170 and 2177, Government Code, or other law means the
 9-8     Department of Information Resources;
 9-9                 (6)  a waiver in effect that was issued by the General
9-10     Services Commission relating to telecommunications under Chapter
9-11     2170, Government Code, or other law is continued in effect as a
9-12     waiver of the Department of Information Resources;
9-13                 (7)  a rate case, contract negotiation, or other
9-14     proceeding involving the General Services Commission that is
9-15     related to providing telecommunications services for state
9-16     government or to the establishment of the electronic procurement
9-17     marketplace or the electronic commerce network under Chapters 2170
9-18     and 2177, Government Code, or other law is transferred without
9-19     change in status to the Department of Information Resources, and
9-20     the Department of Information Resources assumes, without a change
9-21     in status, the position of the General Services Commission in a
9-22     negotiation or proceeding relating to telecommunications, the
9-23     marketplace, or the network to which the General Services
9-24     Commission is a party;
9-25                 (8)  all money, contracts, leases, rights, and
9-26     obligations of the General Services Commission related to providing
 10-1    telecommunications services for state government or to the
 10-2    establishment of the electronic procurement marketplace or the
 10-3    electronic commerce network under Chapters 2170 and 2177,
 10-4    Government Code, or other law are transferred to the Department of
 10-5    Information Resources;
 10-6                (9)  all property, including records, in the custody of
 10-7    the General Services Commission related to providing
 10-8    telecommunications services for state government or to the
 10-9    establishment of the electronic procurement marketplace or the
10-10    electronic commerce network under Chapters 2170 and 2177,
10-11    Government Code, or other law becomes the property of the
10-12    Department of Information Resources, but stays in the same physical
10-13    location unless moved in accordance with the plan created under
10-14    Section 1.17 of this Act; and
10-15                (10)  all funds appropriated by the legislature to the
10-16    General Services Commission for purposes related to providing
10-17    telecommunications services for state government or to the
10-18    establishment of the electronic procurement marketplace or the
10-19    electronic commerce network, including funds for providing
10-20    administrative support for those services such as funds to pay the
10-21    salary and benefits of employees who provide the administrative
10-22    support, under Chapters 2170 and 2177, Government Code, or other
10-23    law are transferred to the Department of Information Resources.
10-24          SECTION 1.17.  The General Services Commission or the Texas
10-25    Building and Procurement Commission, as applicable, and the
10-26    Department of Information Resources shall establish a transition
 11-1    plan for the transfer described in Section 1.16 of this Act.  The
 11-2    plan must include:
 11-3                (1)  a timetable for any necessary or advisable
 11-4    movement of the physical location of employees and property;
 11-5                (2)  an inventory of all equipment and other property
 11-6    required to be transferred;
 11-7                (3)  a determination of any continued support and
 11-8    cooperation the commission must provide the department before the
 11-9    commission is abolished to ensure an efficient continuation of
11-10    service and of planning for future needs; and
11-11                (4)  provisions for the immediate access of the
11-12    Department of Information Resources to facilities that house
11-13    telecommunications equipment and any related facilities.
11-14          SECTION 1.18.  (a)  The General Services Commission as it
11-15    exists on the effective date of this Act is abolished and the
11-16    offices of the members of the commission serving on that date are
11-17    abolished.  The abolition takes effect on the date of the first
11-18    meeting of the Texas Building and Procurement Commission as created
11-19    by this Act.  Until the General Services Commission as it exists on
11-20    the effective date of this Act is abolished, the commission shall
11-21    continue to perform its duties under Chapter 2152, Government Code,
11-22    as that law existed immediately before the effective date of this
11-23    Act.
11-24          (b)  The Texas Building and Procurement Commission, composed
11-25    as provided by Section 2152.051, Government Code, as amended by
11-26    this Act, is created with the powers and duties assigned by
 12-1    Subtitle D, Title 10, Government Code, as amended by this Act.  The
 12-2    creation takes effect on the date of the first meeting of the Texas
 12-3    Building and Procurement Commission as created by this Act.  The
 12-4    governor and the lieutenant governor shall make appointments to the
 12-5    Texas Building and Procurement Commission in accordance with
 12-6    Section 2152.051, Government Code, as amended by this Act, as soon
 12-7    as possible after the effective date of this Act.
 12-8          (c)  In making appointments under this section:
 12-9                (1)  the governor shall appoint:
12-10                      (A)  two members for terms expiring January 31,
12-11    2003;
12-12                      (B)  one member for a term expiring January 31,
12-13    2005; and
12-14                      (C)  two members from a list of nominees
12-15    submitted by the speaker of the house of representatives for terms
12-16    expiring January 31, 2007; and
12-17                (2)  the lieutenant governor shall appoint:
12-18                      (A)  one member for a term expiring January 31,
12-19    2005; and
12-20                      (B)  one member for a term expiring January 31,
12-21    2007.
12-22          (d)  Subject to the changes in law made by this Act, the
12-23    Texas Building and Procurement Commission created by this Act has
12-24    all the powers and duties provided by law and all the property,
12-25    employees, unspent appropriations, documents, rights, and
12-26    obligations of the abolished General Services Commission.
 13-1          (e)  The validity of an action taken by the General Services
 13-2    Commission before it is abolished under Subsection (a) of this
 13-3    section is not affected by the abolishment.
 13-4          SECTION 1.19.  This Act does not prohibit a person who is a
 13-5    member of the General Services Commission immediately before
 13-6    September 1, 2001, from being appointed as a member of the new
 13-7    Texas Building and Procurement Commission if the person has the
 13-8    qualifications required for the position under Chapter 2152,
 13-9    Government Code, as amended by this Act.
13-10          SECTION 1.20.  Section 2152.0581, Government Code, as added
13-11    by this Act, takes effect January 31, 2003.
13-12          SECTION 1.21.  The executive director, associate deputy
13-13    directors, and division directors of the General Services
13-14    Commission serving on the effective date of this Act  become
13-15    employees of the Texas Building and Procurement Commission as
13-16    provided  by this Act, but they do not automatically become the
13-17    executive director, associate deputy directors, and division
13-18    directors of the Texas Building and Procurement Commission.  To
13-19    become the executive director, associate deputy directors, and
13-20    division directors of the Texas Building and Procurement
13-21    Commission, they must apply for the positions and their employments
13-22    in those capacities must be approved by the Texas Building and
13-23    Procurement Commission.
13-24         ARTICLE 2.  MULTIPLE AWARD CONTRACTS FOR STATE AND LOCAL
13-25                           GOVERNMENT PURCHASES
13-26          SECTION 2.01.  Chapter 2155, Government Code, is amended by
 14-1    adding Subchapter I to read as follows:
 14-2              SUBCHAPTER I.  MULTIPLE AWARD CONTRACT SCHEDULE
 14-3          Sec. 2155.501.  DEFINITIONS.  In this subchapter:
 14-4                (1)  "Department" means the Department of Information
 14-5    Resources.
 14-6                (2)  "Local government" has the meaning assigned by
 14-7    Section 271.101, Local Government Code.
 14-8                (3)  "Multiple award contract" means an award of a
 14-9    contract for an indefinite amount of one or more similar goods or
14-10    services from a vendor.
14-11                (4)  "Schedule" means a list of multiple award
14-12    contracts from which agencies may purchase goods and services.
14-13          Sec. 2155.502.  DEVELOPMENT OF MULTIPLE AWARD CONTRACT
14-14    SCHEDULE.  (a)  The commission shall develop a schedule of multiple
14-15    award contracts that have been previously awarded using a
14-16    competitive process by:
14-17                (1)  the federal government, including the federal
14-18    General Services Administration; or
14-19                (2)  any other governmental entity in any state.
14-20          (b)  In developing the schedule under Subsection (a), the
14-21    commission shall modify any contractual terms, with the agreement
14-22    of the parties to the contract, as necessary to comply with any
14-23    federal or state requirements, including rules adopted under this
14-24    subchapter.
14-25          (c)  The commission may not list a multiple award contract on
14-26    a schedule developed under this section if the goods or services
 15-1    provided by that contract:
 15-2                (1)  are available from only one vendor; or
 15-3                (2)  are telecommunications services, facilities, or
 15-4    equipment.
 15-5          (d)  In this section, "telecommunications" has the meaning
 15-6    assigned by Section 2054.003.
 15-7          Sec. 2155.503.  RULES.  (a)  The commission and the
 15-8    department shall adopt rules to implement this subchapter.  The
 15-9    rules must:
15-10                (1)  establish standard terms for contracts listed on a
15-11    schedule; and
15-12                (2)  maintain consistency with existing purchasing
15-13    standards.
15-14          (b)  The commission and the department shall consult with the
15-15    attorney general and the comptroller in developing rules under this
15-16    section.
15-17          Sec. 2155.504.  USE OF SCHEDULE BY GOVERNMENTAL ENTITIES.
15-18    (a)  A state agency or local government may purchase goods or
15-19    services directly from a vendor under a contract listed on a
15-20    schedule developed under this subchapter.  A purchase authorized by
15-21    this section satisfies any requirement of state law relating to
15-22    competitive bids or proposals and satisfies any applicable
15-23    requirements of Chapter 2157.
15-24          (b)  The price listed for a good or service under a multiple
15-25    award contract is a maximum price.  An agency or local government
15-26    may negotiate a lower price for goods or services under a contract
 16-1    listed on a schedule developed under this subchapter.
 16-2          Sec. 2155.505.  HISTORICALLY UNDERUTILIZED AND SMALL
 16-3    BUSINESSES.  (a)  In this section:
 16-4                (1)  "Historically underutilized business" has the
 16-5    meaning assigned by Section 2161.001.
 16-6                (2)  "Small business" means a small business concern as
 16-7    defined by regulations of the United States Small Business
 16-8    Administration in 13 C.F.R. Section 121.201.
 16-9          (b)  The commission shall strongly encourage each vendor with
16-10    a contract listed on a schedule developed under this subchapter and
16-11    who is not a historically underutilized business or small business
16-12    to use historically underutilized or small businesses to sell or
16-13    provide a service under the contract.  If a vendor does not make a
16-14    good faith effort to use historically underutilized and small
16-15    businesses under the contract, the commission may exclude the
16-16    vendor from being listed on a schedule developed under this
16-17    subchapter.
16-18          (c)  A historically underutilized business or small business
16-19    may sell or provide a service under another vendor's contract
16-20    listed on a schedule developed under this subchapter if:
16-21                (1)  the contract is on a schedule developed under
16-22    Section 2155.502;
16-23                (2)  the vendor for the contract authorizes in writing
16-24    the historically underutilized business or small business to sell
16-25    or provide a service under that contract; and
16-26                (3)  the historically underutilized business or small
 17-1    business provides that written authorization to the commission.
 17-2          Sec. 2155.506.  REPORTING REQUIREMENTS.  (a)  A vendor listed
 17-3    on a contract for a schedule developed under this subchapter shall
 17-4    report its sales to the commission in the manner prescribed by the
 17-5    commission.
 17-6          (b)  The commission shall compile the information reported
 17-7    under Subsection (a) and include the information in its report
 17-8    under Section 2101.011.
 17-9          Sec. 2155.507.  EXEMPTION FROM CATALOGUE PURCHASE METHOD FOR
17-10    INFORMATION SYSTEM VENDORS.  Section 2157.062 does not apply to a
17-11    vendor who applies to be listed on a schedule developed under this
17-12    subchapter.
17-13          Sec. 2155.508.  INTERNET AVAILABILITY.  (a)  The commission
17-14    shall develop a database of the multiple award contracts developed
17-15    under this subchapter and make that information available on an
17-16    Internet site.  The database must have search capabilities that
17-17    allow a person to easily access the contracts.
17-18          (b)  The commission shall allow vendors to apply through the
17-19    Internet site to be listed on a schedule developed under this
17-20    subchapter.  The applicant shall provide an electronic mail address
17-21    to the commission as part of the application process.
17-22          (c)  The department shall post appropriate information
17-23    regarding contracts developed under this subchapter to any
17-24    electronic procurement system developed under Chapter 2177.  On
17-25    request by the department, the commission and any vendor with a
17-26    contract on a schedule developed under this subchapter shall
 18-1    provide to the department any information necessary for posting on
 18-2    the system.
 18-3          Sec. 2155.509.  NOTICE REGARDING PROCUREMENTS EXCEEDING
 18-4    $25,000.  After a purchase order has been placed, a state agency
 18-5    subject to Section 2155.083 shall post, as required under that
 18-6    section, a procurement made under a contract listed on a schedule
 18-7    developed under this subchapter.
 18-8          SECTION 2.02.  Subsection (a), Section 2155.079, Government
 18-9    Code, is amended to read as follows:
18-10          (a)  The commission shall adopt rules specifying the
18-11    circumstances under which it is advantageous for the state to allow
18-12    a state agency to purchase goods or services under a contract made
18-13    by another state agency other than the commission, including as
18-14    provided under Subchapter I.
18-15          SECTION 2.03.  (a)  Not later than March 1, 2002, the Texas
18-16    Building and Procurement Commission shall develop initial schedules
18-17    of multiple award contracts under Section 2155.502, Government
18-18    Code, as added by this Act.
18-19          (b)  Not later than January 1, 2002, the Texas Building and
18-20    Procurement Commission shall adopt the rules required by Subchapter
18-21    I, Chapter 2155, Government Code, as added by this Act.
18-22       ARTICLE 3.  OVERSIGHT OF MAJOR INFORMATION RESOURCES PROJECTS
18-23          SECTION 3.01.  Section 2054.003, Government Code, is amended
18-24    by adding a new Subdivision (8) and renumbering existing
18-25    Subdivisions (8), (9), and (10) as Subdivisions (9), (10), and (11)
18-26    to read as follows:
 19-1                (8)  "Major information resources project" means:
 19-2                      (A)  any information resources technology project
 19-3    identified in a state agency's biennial operating plan whose
 19-4    development costs exceed $1 million and that:
 19-5                            (i)  requires one year or longer to reach
 19-6    operations status;
 19-7                            (ii)  involves more than one state agency;
 19-8    or
 19-9                            (iii)  substantially alters work methods of
19-10    state agency personnel or the delivery of services to clients; and
19-11                      (B)  any information resources technology project
19-12    designated by the legislature in the General Appropriations Act as
19-13    a major information resources project.
19-14                (9)  "Project" means a program to provide information
19-15    resources technologies support to functions within or among
19-16    elements of a state agency, that ideally is characterized by
19-17    well-defined parameters, specific objectives, common benefits,
19-18    planned activities, a scheduled completion date, and an established
19-19    budget with a specified source of funding.
19-20                (10) [(9)]  "State agency" means a department,
19-21    commission, board, office, council, or other agency in the
19-22    executive or judicial branch of state government that is created by
19-23    the constitution or a statute of this state, including a university
19-24    system or institution of higher education as defined by Section
19-25    61.003, Education Code.
19-26                (11) [(10)]  "Telecommunications" means any
 20-1    transmission, emission, or reception of signs, signals, writings,
 20-2    images, or sounds of intelligence of any nature by wire, radio,
 20-3    optical, or other electromagnetic systems.  The term includes all
 20-4    facilities and equipment performing those functions that are owned,
 20-5    leased, or used by state agencies and branches of state government.
 20-6          SECTION 3.02.  Subchapter F, Chapter 2054, Government Code,
 20-7    is amended by adding Section 2054.1181 to read as follows:
 20-8          Sec. 2054.1181.  OVERSIGHT OF MAJOR INFORMATION RESOURCES
 20-9    PROJECTS.  (a)  The department shall create a division in the
20-10    department to oversee the implementation of major information
20-11    resources projects.
20-12          (b)  In performing its duties under this section, the
20-13    department shall:
20-14                (1)  develop policies for the oversight of projects;
20-15                (2)  implement project management standards;
20-16                (3)  use effective risk management strategies;
20-17                (4)  establish standards that promote the ability of
20-18    information resources systems to operate with each other; and
20-19                (5)  use industry best practices and process
20-20    reengineering when feasible.
20-21          (c)  The division shall be funded from a percentage of money
20-22    appropriated to or budgeted by state agencies for the major
20-23    information resources projects designated by the legislature under
20-24    Section 2054.003(8)(B).  The legislature shall prescribe the
20-25    percentage or percentages, as applicable, in the General
20-26    Appropriations Act.
 21-1          SECTION 3.03.  Subsection (d), Section 2054.118, Government
 21-2    Code, is repealed.
 21-3                      ARTICLE 4.  TELECOMMUNICATIONS
 21-4          SECTION 4.01.  Subsection (e), Section 2054.051, Government
 21-5    Code, is amended to read as follows:
 21-6          (e)  The department shall provide for all interagency use of
 21-7    information resources technologies by state agencies[, except for
 21-8    telecommunications services provided by the General Services
 21-9    Commission under other law].  The department may provide for
21-10    interagency use of information resources technologies either
21-11    directly or by certifying another state agency to provide specified
21-12    uses of information resources technologies to other state agencies.
21-13          SECTION 4.02.  Subsection (d), Section 2054.091, Government
21-14    Code, is amended to read as follows:
21-15          (d)  The executive director shall appoint an advisory
21-16    committee to assist in the preparation of the state strategic plan.
21-17    The members of the advisory committee appointed by the executive
21-18    director must be approved by the board and must include officers or
21-19    employees of state government.  The telecommunications planning and
21-20    oversight council shall appoint one of its members to serve as a
21-21    member of the advisory committee.
21-22          SECTION 4.03.  The heading to Subchapter H, Chapter 2054,
21-23    Government Code, is amended to read as follows:
21-24                SUBCHAPTER H.  TELECOMMUNICATIONS PLANNING
21-25                       AND OVERSIGHT COUNCIL [GROUP]
21-26          SECTION 4.04.  Section 2054.201, Government Code, is amended
 22-1    to read as follows:
 22-2          Sec. 2054.201.  COMPOSITION; TERMS.  (a)  The
 22-3    telecommunications planning and oversight council [group] is
 22-4    composed of:
 22-5                (1)  a representative of the comptroller's office,
 22-6    appointed by the comptroller;
 22-7                (2)  the executive director of the Telecommunications
 22-8    Infrastructure Fund Board;
 22-9                (3)  a representative of the Texas Building and
22-10    Procurement Commission, appointed by the executive director of the
22-11    commission;
22-12                (4)  a member representing the interests of state
22-13    agencies with 1,000 employees or more, appointed by the lieutenant
22-14    governor;
22-15                (5)  a member representing the interests of state
22-16    agencies with fewer than 1,000 employees, appointed by the speaker
22-17    of the house of representatives;
22-18                (6)  a member representing the interests of
22-19    institutions of higher education, appointed by the commissioner of
22-20    higher education;
22-21                (7)  a member representing the interests of The
22-22    University of Texas System, appointed by the chancellor;
22-23                (8)  a member representing the interests of The Texas
22-24    A&M University System, appointed by the chancellor;
22-25                (9)  a member representing the interests of public
22-26    school districts that are customers of the consolidated
 23-1    telecommunications system, appointed by the governor;
 23-2                (10)  a member representing the interests of local
 23-3    governments that are customers of the consolidated
 23-4    telecommunications system, appointed by the governor; and
 23-5                (11)  two public members with telecommunications
 23-6    expertise, appointed by the governor [the comptroller, the
 23-7    executive director of the department, and the executive director of
 23-8    the General Services Commission].
 23-9          (b)  Appointed members of the telecommunications planning and
23-10    oversight council serve two-year terms, except that the
23-11    representative of the comptroller's office serves at the discretion
23-12    of the comptroller and the representative of the Texas Building and
23-13    Procurement Commission serves at the discretion of the executive
23-14    director of the commission [Each member of the group may designate
23-15    an employee of the member's agency to serve in the member's place].
23-16          (c)  Members of the telecommunications planning and oversight
23-17    council who represent a state agency shall abstain from any action
23-18    taken by the council regarding a request for a waiver under Section
23-19    2170.051 from the state agency that is represented by the member.
23-20          SECTION 4.05.  Subchapter H, Chapter 2054, Government Code,
23-21    is amended by adding Section 2054.2011 to read as follows:
23-22          Sec. 2054.2011.  DEFINITIONS.  In this subchapter:
23-23                (1)  "Centralized capitol complex telephone system"
23-24    means the system described in Section 2170.059.
23-25                (2)  "Consolidated telecommunications system" has the
23-26    meaning assigned by Section 2170.001.
 24-1          SECTION 4.06.  Section 2054.202, Government Code, is amended
 24-2    to read as follows:
 24-3          Sec. 2054.202.  ADMINISTRATIVE PROVISIONS.  (a)  The
 24-4    telecommunications planning and oversight council [group] shall
 24-5    post notice of its meetings in accordance with the open meetings
 24-6    law, Chapter 551, in the manner required for a state governmental
 24-7    body under that chapter.
 24-8          (b)  The department shall provide [coordinate] the staff and
 24-9    administrative support necessary for [provided to] the
24-10    telecommunications planning and oversight council to perform its
24-11    duties under this subchapter [group by the department, by the
24-12    comptroller, and by the General Services Commission].
24-13          (c)  The telecommunications planning and oversight council
24-14    [group] may periodically elect one of its members to serve as
24-15    presiding officer of the council [group].
24-16          SECTION 4.07.  Section 2054.203, Government Code, is amended
24-17    by amending Subsections (a) through (d) and adding Subsection (g)
24-18    to read as follows:
24-19          (a)  The telecommunications planning and oversight council
24-20    [group] shall comprehensively collect and manage telecommunications
24-21    network configuration information about existing and planned
24-22    telecommunications networks throughout state government.
24-23          (b)  The telecommunications planning and oversight council
24-24    [group] may require state agencies to submit to the council [group]
24-25    the agencies' network configuration information, but the council
24-26    [group] must use existing reports to gather the information if
 25-1    possible and minimize the reporting burden on agencies to the
 25-2    extent possible.
 25-3          (c)  The telecommunications planning and oversight council
 25-4    [group] shall establish plans and policies for a system of
 25-5    telecommunications services to be managed and operated by the
 25-6    department [General Services Commission].
 25-7          (d)  The telecommunications planning and oversight council
 25-8    [group] shall develop a statewide telecommunications operating plan
 25-9    for all state agencies.  The plan shall implement a statewide
25-10    network and include technical specifications that are binding on
25-11    the department [General Services Commission].
25-12          (g)  The telecommunications planning and oversight council
25-13    shall perform strategic planning for all state telecommunications
25-14    services in accordance with the guiding principles of the state
25-15    strategic plan for information resources management.
25-16          SECTION 4.08.  Subsections (a) and (c), Section 2054.204,
25-17    Government Code, are amended to read as follows:
25-18          (a)  The telecommunications planning and oversight council
25-19    [group] shall develop a plan for a state telecommunications network
25-20    that will effectively and efficiently meet the long-term
25-21    requirements of state government for voice, video, and computer
25-22    communications, with the goal of achieving a single centralized
25-23    telecommunications network for state government.
25-24          (c)  The plan must incorporate efficiencies obtained through
25-25    the use of shared transmission services and open systems
25-26    architecture as they become available, building on existing systems
 26-1    as appropriate.  In developing the plan, the telecommunications
 26-2    planning and oversight council [group] shall make use of the
 26-3    technical expertise of state agencies, including institutions of
 26-4    higher education.
 26-5          SECTION 4.09.  Section 2054.205, Government Code, is amended
 26-6    to read as follows:
 26-7          Sec. 2054.205.  DEVELOPMENT OF SYSTEM.  (a)  The
 26-8    telecommunications planning and oversight council [group] shall
 26-9    develop functional requirements for a statewide system of
26-10    telecommunications services for all state agencies.  Existing
26-11    networks, as configured on September 1, 1991, of institutions of
26-12    higher education are exempt from the requirements.
26-13          (b)  The telecommunications planning and oversight council
26-14    [group] shall develop requests for information and proposals for a
26-15    statewide system of telecommunications services for all state
26-16    agencies.
26-17          (c)  The telecommunications planning and oversight council
26-18    [group] shall negotiate rates and execute contracts with
26-19    telecommunications service providers for services.  The
26-20    telecommunications planning and oversight council [group] may:
26-21                (1)  acquire transmission facilities by purchase,
26-22    lease, or lease-purchase in accordance with Chapters 2155-2158; and
26-23                (2)  develop, establish, and maintain carrier systems
26-24    necessary to the operation of the telecommunications system.
26-25          SECTION 4.10.  Subchapter H, Chapter 2054, Government Code,
26-26    is amended by adding Section 2054.2051 to read as follows:
 27-1          Sec. 2054.2051.  OVERSIGHT OF SYSTEMS.  (a)  The
 27-2    telecommunications planning and oversight council shall develop
 27-3    service objectives for the consolidated telecommunications system
 27-4    and the centralized capitol complex telephone system.
 27-5          (b)  The telecommunications planning and oversight council
 27-6    shall develop performance measures for the operations and staff of
 27-7    the consolidated telecommunications system and the centralized
 27-8    capitol complex telephone system.
 27-9          (c)  The telecommunications planning and oversight council
27-10    shall review every three months the status of all projects related
27-11    to and the financial performance of the consolidated
27-12    telecommunications system and the centralized capitol complex
27-13    telephone system, including a comparison between actual performance
27-14    and projected goals.
27-15          (d)  The telecommunications planning and oversight council
27-16    shall make recommendations to the board on ways to improve the
27-17    operation of the consolidated telecommunications system and the
27-18    centralized capitol complex telephone system based on its review of
27-19    their performance and on concerns raised by using entities.
27-20          SECTION 4.11.  Section 2054.206, Government Code, is amended
27-21    to read as follows:
27-22          Sec. 2054.206.  ANNUAL REPORT.  The telecommunications
27-23    planning and oversight council shall submit an annual report to the
27-24    department and to each entity served by the consolidated
27-25    telecommunications system or the centralized capitol complex
27-26    telephone system.  The report must include:
 28-1                (1)  information about the accomplishment of service
 28-2    objectives and other performance measures for management of the
 28-3    consolidated telecommunications system and the centralized capitol
 28-4    complex telephone system;
 28-5                (2)  information about the accounting and financial
 28-6    performance of the consolidated telecommunications system and the
 28-7    centralized capitol complex telephone system;
 28-8                (3)  estimates of savings to entities served by the
 28-9    consolidated telecommunications system over standard rates
28-10    available to state agencies who acquire telecommunications services
28-11    directly;
28-12                (4)  trends in network use, including the number of
28-13    users, workstations, and locations supported; and
28-14                (5)  rate information for services provided by the
28-15    consolidated telecommunications system and the centralized capitol
28-16    complex telephone system.  [ADVISORY AGENCIES.  The following state
28-17    agencies shall formally advise the telecommunications planning
28-18    group and send representatives to meetings of the group:]
28-19                [(1)  the Texas Education Agency;]
28-20                [(2)  the Texas Higher Education Coordinating Board;]
28-21                [(3)  The Texas A&M University System;]
28-22                [(4)  The University of Texas System;]
28-23                [(5)  the Telecommunications Infrastructure Fund Board;
28-24    and]
28-25                [(6)  the Texas State Library and Archives Commission.]
28-26          SECTION 4.12.  Section 2054.207, Government Code, is amended
 29-1    to read as follows:
 29-2          Sec. 2054.207.  REPORT TO LEGISLATURE.  The
 29-3    telecommunications planning and oversight council [group] shall
 29-4    report biennially to the legislature not later than October 1 of
 29-5    each even-numbered year on the status of the current plan for a
 29-6    state telecommunications network and on the progress state
 29-7    government has made towards accomplishing the goals of the plan.
 29-8    The report shall address consolidated telecommunications system
 29-9    performance, centralized capitol complex telephone system
29-10    performance, telecommunications system needs, and recommended
29-11    statutory changes to enhance system capability and
29-12    cost-effectiveness.
29-13          SECTION 4.13.  Subdivision (1), Section 2157.001, Government
29-14    Code, is amended to read as follows:
29-15                (1)  "Automated information system" includes:
29-16                      (A)  the computers and computer devices on which
29-17    an information system is automated, including computers and
29-18    computer devices that the commission identifies in guidelines
29-19    developed by the commission in consultation with the Department of
29-20    Information Resources and in accordance with Chapter 2054 and rules
29-21    adopted under that chapter;
29-22                      (B)  a service related to the automation of an
29-23    information system, including computer software or computers;
29-24                      (C)  a telecommunications apparatus or device
29-25    that serves as a component of a voice, data, or video
29-26    communications network for transmitting, switching, routing,
 30-1    multiplexing, modulating, amplifying, or receiving signals on the
 30-2    network, and services related to telecommunications that are not
 30-3    covered under Paragraph (D); and
 30-4                      (D)  for the Department of Information Resources
 30-5    [General Services Commission], as telecommunications provider for
 30-6    the state, the term includes any service provided by a
 30-7    telecommunications provider, as that term is defined by Section
 30-8    51.002, Utilities Code.
 30-9          SECTION 4.14.  Section 2157.121, Government Code, is amended
30-10    by amending Subsection (b) and adding Subsection (c) to read as
30-11    follows:
30-12          (b)  A state agency, other than the Department of Information
30-13    Resources, shall send its proposal specifications and criteria to
30-14    the commission for approval or request the commission to develop
30-15    the proposal specifications and criteria.
30-16          (c)  The Department of Information Resources may acquire a
30-17    telecommunications device, system, or service or an automated
30-18    information system by using competitive sealed proposals without
30-19    regard to whether the commission makes the determination required
30-20    under Subsection (a) for other state agencies.
30-21          SECTION 4.15.  Subsection (a), Section 2170.001, Government
30-22    Code, is amended by adding Subdivision (3) to read as follows:
30-23                (3)  "Department" means the Department of Information
30-24    Resources.
30-25          SECTION 4.16.  Section 2170.002, Government Code, is amended
30-26    to read as follows:
 31-1          Sec. 2170.002.  DEPARTMENT [COMMISSION] RESPONSIBLE FOR
 31-2    OBTAINING TELECOMMUNICATIONS SERVICES.  The department [commission]
 31-3    is the state agency responsible for obtaining telecommunications
 31-4    services.
 31-5          SECTION 4.17.  Section 2170.003, Government Code, is amended
 31-6    to read as follows:
 31-7          Sec. 2170.003.  OWNERSHIP OR LEASE OF NECESSARY EQUIPMENT.
 31-8    The department [commission] may own, lease, or lease-purchase in
 31-9    accordance with Chapters 2155, 2156, 2157, and 2158 any or all of
31-10    the facilities or equipment necessary to provide telecommunications
31-11    services.
31-12          SECTION 4.18.  Section 2170.004, Government Code, is amended
31-13    to read as follows:
31-14          Sec. 2170.004.  CONTRACTS WITH ENTITIES OTHER THAN STATE
31-15    AGENCIES.  The department [commission] may contract for use of the
31-16    consolidated telecommunications system with:
31-17                (1)  each house of the legislature;
31-18                (2)  a legislative agency;
31-19                (3)  an agency that is not a state agency as defined by
31-20    Section 2151.002; [and]
31-21                (4)  a political subdivision, including a county,
31-22    municipality, or district; and
31-23                (5)  a private institution of higher education
31-24    accredited by a recognized accrediting agency, as defined by
31-25    Section 61.003, Education Code, that:
31-26                      (A)  engages in distance learning, as defined by
 32-1    Section 57.021, Utilities Code; and
 32-2                      (B)  receives federal funds for distance learning
 32-3    initiatives.
 32-4          SECTION 4.19.  Subsections (a) and (c), Section 2170.005,
 32-5    Government Code, are amended to read as follows:
 32-6          (a)  To ensure efficient operation of the consolidated
 32-7    telecommunications system at minimum cost to the state, the
 32-8    department [commission] shall adopt and disseminate to all agencies
 32-9    appropriate guidelines, operating procedures, and telephone
32-10    directories.
32-11          (c)  Telephone directories published by the department
32-12    [commission] under this section and Section 2170.059 must be
32-13    revised regularly and must list state telephone numbers
32-14    alphabetically by the subject matter of agency programs as well as
32-15    alphabetically by agency.  The subject matter listing of programs
32-16    and telephone numbers in the telephone directories must be
32-17    consistent with the categorization developed by the Records
32-18    Management Interagency Coordinating Council under Section 441.203
32-19    [441.053].  The department [commission] may authorize, under
32-20    procedures and rules considered appropriate by the department
32-21    [commission], a yellow pages advertising section in the directories
32-22    to recover development, publication, and distribution costs of the
32-23    directories.
32-24          SECTION 4.20.  Section 2170.006, Government Code, is amended
32-25    to read as follows:
32-26          Sec. 2170.006.  COST-EFFECTIVENESS OF SYSTEM.  (a)  The
 33-1    department [commission], with the advice of the state auditor,
 33-2    shall maintain records relating to the consolidated
 33-3    telecommunications system necessary to enable the department
 33-4    [commission] to analyze the cost-effectiveness of the system to
 33-5    state agencies.
 33-6          (b)  The department [commission] shall advise the legislature
 33-7    at each session about the system's cost-effectiveness.
 33-8          SECTION 4.21.  Section 2170.008, Government Code, is amended
 33-9    to read as follows:
33-10          Sec. 2170.008.  RATE INTERVENTION.  (a)  If the department
33-11    [commission] determines there is sufficient economic impact on
33-12    state government, the department [commission] may intervene on
33-13    behalf of state agencies in telecommunications rate cases and may
33-14    hire special counsel and expert witnesses to prepare and present
33-15    testimony.
33-16          (b)  The attorney general shall represent the department
33-17    [commission] before the courts in all appeals from rate cases in
33-18    which the department [commission] intervenes.
33-19          SECTION 4.22.  Subsections (a) and (c), Section 2170.009,
33-20    Government Code, are amended to read as follows:
33-21          (a)  A pay telephone may be located in the capitol complex
33-22    only with the approval of the department [commission].  The
33-23    department [commission] shall collect the revenue from the
33-24    installation and operation of the pay telephone and deposit it to
33-25    the credit of the general revenue fund.
33-26          (c)  The department [commission] or other state entity shall
 34-1    account for the revenue collected under this section in the
 34-2    entity's annual report.
 34-3          SECTION 4.23.  Section 2170.051, Government Code, is amended
 34-4    to read as follows:
 34-5          Sec. 2170.051.  MANAGEMENT AND USE OF SYSTEM.  (a)  The
 34-6    department [commission] shall manage the operation of a system of
 34-7    telecommunications services for all state agencies.  Each agency
 34-8    shall identify its particular requirements for telecommunications
 34-9    services and the site at which the services are to be provided.
34-10          (b)  The department [commission] shall fulfill the
34-11    telecommunications requirements of each state agency to the extent
34-12    possible and to the extent that money is appropriated or available
34-13    for that purpose.
34-14          (c)  A state agency shall use the consolidated
34-15    telecommunications system to the fullest extent possible.  A state
34-16    agency may not acquire telecommunications services unless the
34-17    telecommunications planning and oversight council [group]
34-18    determines that the agency's requirement for telecommunications
34-19    services cannot be met at a comparable cost by the consolidated
34-20    telecommunications system.
34-21          (d)  A state agency may not enter into or renew a contract
34-22    with a carrier or other provider of telecommunications services
34-23    without obtaining a waiver from the telecommunications planning and
34-24    oversight council [group] certifying that the requested
34-25    telecommunications services cannot be provided at a comparable cost
34-26    on the consolidated telecommunications system.  The
 35-1    telecommunications planning and oversight council [group] shall
 35-2    evaluate requests for waivers based on cost-effectiveness to the
 35-3    state government as a whole.  A waiver may be granted only for a
 35-4    specific period and will automatically expire on the stated
 35-5    expiration date unless an extension is approved by the
 35-6    telecommunications planning and oversight council [group].  A
 35-7    contract for telecommunications services obtained under waiver may
 35-8    not extend beyond the expiration date of the waiver.  If the
 35-9    telecommunications planning and oversight council [group] becomes
35-10    aware of any state agency receiving telecommunications services
35-11    without a waiver, the telecommunications planning and oversight
35-12    council [group] shall notify the agency and the comptroller.  The
35-13    state agency shall have 60 days after notification by the
35-14    telecommunications planning and oversight council [group] in which
35-15    to submit a waiver request to the telecommunications planning and
35-16    oversight council [group] documenting the agency's reasons
35-17    [reasoning] for bypassing the consolidated telecommunications
35-18    system and otherwise providing all information required by the
35-19    waiver application form.
35-20          SECTION 4.24.  Section 2170.052, Government Code, is amended
35-21    to read as follows:
35-22          Sec. 2170.052.  BALANCING TECHNOLOGICAL ADVANCEMENTS AND
35-23    EXISTING FACILITIES.  In the planning, design, implementation, and
35-24    operation of the consolidated telecommunications system, the
35-25    department [commission] shall maintain an appropriate balance
35-26    between the adoption of technological advancements and the
 36-1    efficient use of existing facilities and services to avoid
 36-2    misapplication of state money and degradation or loss of the
 36-3    integrity of existing systems and facilities.
 36-4          SECTION 4.25.  Section 2170.056, Government Code, is amended
 36-5    to read as follows:
 36-6          Sec. 2170.056.  COSTS TO STATE OF PARALLEL TOLLS.  All
 36-7    contracts with telecommunications carriers shall provide that the
 36-8    department [commission] or any participating agency may obtain any
 36-9    information relating to the costs to the state of parallel tolls.
36-10          SECTION 4.26.  Subsections (a), (c), and (d), Section
36-11    2170.057, Government Code, are amended to read as follows:
36-12          (a)  The department [commission] shall develop a system of
36-13    billings and charges for services provided in operating and
36-14    administering the consolidated telecommunications system that
36-15    allocates the total state cost to each entity served by the system
36-16    based on proportionate usage.
36-17          (c)  To provide an adequate cash flow as necessary for
36-18    purposes of this chapter, using state agencies and other entities,
36-19    on proper notification, shall make monthly payments into the
36-20    telecommunications revolving fund account from appropriated or
36-21    other available money.  The legislature may appropriate money for
36-22    operating the system directly to the department [commission], in
36-23    which case the revolving fund account shall be used to receive
36-24    money due from local governmental entities and other agencies to
36-25    the extent that their money is not subject to legislative
36-26    appropriation.
 37-1          (d)  The department [commission] shall maintain in the
 37-2    revolving fund account sufficient amounts to pay the bills of the
 37-3    consolidated telecommunications system and the centralized capitol
 37-4    complex telephone system.  The department [commission] shall
 37-5    certify amounts that exceed this amount to the comptroller, and the
 37-6    comptroller shall transfer the excess amounts to the credit of the
 37-7    statewide network applications account established by Section
 37-8    2054.011 [22A, Information Resources Management Act (Article
 37-9    4413(32j), Revised Statutes)].
37-10          SECTION 4.27.  Subsections (b) and (c), Section 2170.058,
37-11    Government Code, are amended to read as follows:
37-12          (b)  The department [commission] shall adopt rules that
37-13    govern student access to the system, including:
37-14                (1)  times of access to the system; and
37-15                (2)  the full recovery of actual costs from each
37-16    student who uses the system.
37-17          (c)  In consideration of the duties and responsibilities
37-18    given the department [commission] under this chapter [subtitle], it
37-19    is the policy of this state that a state agency or unit of state
37-20    government may not provide telecommunications products or services
37-21    to the general public in competition with private enterprise unless
37-22    there is a finding that providing the products or services is in
37-23    the public interest.  This subsection does not prohibit students
37-24    who reside in housing for which institutions of higher education
37-25    provide telephone service from using service provided under this
37-26    section.
 38-1          SECTION 4.28.  Section 2170.059, Government Code, is amended
 38-2    to read as follows:
 38-3          Sec. 2170.059.  CENTRALIZED CAPITOL COMPLEX TELEPHONE SYSTEM.
 38-4    (a)  The department [commission] shall provide centralized
 38-5    telephone service for state agencies, each house of the
 38-6    legislature, and legislative agencies in the capitol complex.
 38-7    State agencies in the capitol complex shall use the service.  Each
 38-8    house of the legislature and each legislative agency shall use the
 38-9    service at the discretion of the legislature.  The department
38-10    [commission] may provide the service to other state agencies that
38-11    subscribe to it.
38-12          (b)  Each using entity shall make monthly payments to the
38-13    department [commission] when billed by the department [commission].
38-14          (c)  Each using entity may arrange for its own terminal
38-15    telephone equipment, but the equipment must be compatible with the
38-16    centralized telephone service.  The department [commission] shall
38-17    make terminal equipment available for using entities that choose to
38-18    use that terminal equipment.
38-19          (d)  The department [commission] annually shall prepare and
38-20    issue a revised centralized telephone service directory not later
38-21    than March 31.
38-22          SECTION 4.29.  Subchapter B, Chapter 2170, Government Code,
38-23    is amended by adding Section 2170.060 to read as follows:
38-24          Sec. 2170.060.  QUARTERLY REPORT.  The department shall
38-25    quarterly submit a report to the telecommunications planning and
38-26    oversight council on:
 39-1                (1)  the department's accomplishment of service
 39-2    objectives and other performance measures;
 39-3                (2)  the financial performance of the consolidated
 39-4    telecommunications system and the centralized capitol complex
 39-5    telephone system; and
 39-6                (3)  the status of projects for the consolidated
 39-7    telecommunications system and the centralized capitol complex
 39-8    telephone system.
 39-9          SECTION 4.30.  Subsection (e), Section 2054.091, Government
39-10    Code, is repealed.
39-11          SECTION 4.31.  Section 2170.007, Government Code, is
39-12    repealed.
39-13          SECTION 4.32.  (a)  The telecommunications planning group is
39-14    abolished.
39-15          (b)  The governor, the lieutenant governor, the speaker of
39-16    the house of representatives, the comptroller of public accounts,
39-17    the executive director of the Texas Building and Procurement
39-18    Commission, the commissioner of higher education, the chancellor of
39-19    The University of Texas System, and the chancellor of The Texas A&M
39-20    University System shall make appointments to the telecommunications
39-21    planning and oversight council in accordance with Section 2054.201,
39-22    Government Code, as amended by this Act, as soon as possible after
39-23    September 1, 2001.
39-24          (c)  Any powers, duties, rights, contracts, appropriations,
39-25    property, and records of the telecommunications planning group are
39-26    transferred to the telecommunications planning and oversight
 40-1    council as created by this Act.
 40-2          (d)  A rule, policy, plan, waiver, standard, requirement, or
 40-3    guideline of the telecommunications planning group continues in
 40-4    effect as a rule, policy, plan, waiver, standard, requirement, or
 40-5    guideline of the telecommunications planning and oversight council
 40-6    until it is superseded by an act of the telecommunications planning
 40-7    and oversight council as created by this Act or until it expires
 40-8    according to its terms or by operation of law.
 40-9          (e)  The validity of a rule, policy, plan, requirement,
40-10    guideline, or procedure adopted, waiver granted, contract or
40-11    acquisition made, obligation incurred, right accrued, or other
40-12    action taken by or in connection with the authority of the
40-13    telecommunications planning group before it is abolished under
40-14    Subsection (a) of this section is not affected by the abolishment.
40-15          SECTION 4.33.  The telecommunications planning and oversight
40-16    council shall issue the first annual report required under Section
40-17    2054.206, Government Code, as amended by this Act, not later than
40-18    September 1, 2002.
40-19                 ARTICLE 5.  STATEWIDE CONTRACT MANAGEMENT
40-20          SECTION 5.01.  Subtitle F, Title 10, Government Code, is
40-21    amended by adding Chapter 2262 to read as follows:
40-22               CHAPTER 2262.  STATEWIDE CONTRACT MANAGEMENT
40-23                     SUBCHAPTER A.  GENERAL PROVISIONS
40-24          Sec. 2262.001.  DEFINITIONS.  In this chapter:
40-25                (1)  "Team" means the Contract Advisory Team created
40-26    under Subchapter C.
 41-1                (2)  "Contract management guide" means the guide
 41-2    developed under Section 2262.051.
 41-3                (3)  "Contract manager" means a person who:
 41-4                      (A)  is employed by a state agency; and
 41-5                      (B)  has significant contract management duties
 41-6    for the state agency, as determined by the agency in consultation
 41-7    with the state auditor.
 41-8                (4)  "Major contract" means a contract that has a value
 41-9    of at least $1 million.
41-10                (5)  "State agency" has the meaning provided by Section
41-11    2056.001.
41-12          Sec. 2262.002.  EXEMPTIONS.  (a)  This chapter does not apply
41-13    to an institution of higher education as defined by Section 61.003,
41-14    Education Code.
41-15          (b)  This chapter does not apply to contracts of the Texas
41-16    Department of Transportation that relate to highway construction or
41-17    highway engineering.
41-18            (Sections 2262.003-2262.050 reserved for expansion
41-19                    SUBCHAPTER B.  CONTRACT MANAGEMENT
41-20          Sec. 2262.051.  CONTRACT MANAGEMENT GUIDE; RULES.  (a)  In
41-21    consultation with the Texas Building and Procurement Commission,
41-22    the Department of Information Resources, the comptroller, and the
41-23    state auditor, the attorney general shall develop and periodically
41-24    update a contract management guide for use by state agencies.
41-25          (b)  The attorney general may adopt rules necessary to
41-26    develop the guide.
 42-1          (c)  The guide must provide information regarding the primary
 42-2    duties of a contract manager, including how to:
 42-3                (1)  develop and negotiate a contract;
 42-4                (2)  select a contractor; and
 42-5                (3)  monitor contractor and subcontractor performance
 42-6    under a contract.
 42-7          (d)  The guide must include model provisions for state agency
 42-8    contracts.  The guide must:
 42-9                (1)  distinguish between essential provisions that a
42-10    state agency must include in a contract to protect the interests of
42-11    this state and recommended provisions that a state agency may
42-12    include in a contract;
42-13                (2)  recognize the unique contracting needs of an
42-14    individual state agency or program and provide sufficient
42-15    flexibility to accommodate those needs, consistent with protecting
42-16    the interests of this state; and
42-17                (3)  include maximum contract periods under which a new
42-18    competitive solicitation is not necessary.
42-19          (e)  The guide must recommend time frames under which a state
42-20    agency may issue a competitive solicitation for a major contract in
42-21    relation to the date on which the contract is to be executed.
42-22          (f)  The guide must establish procedures by which a state
42-23    agency is required to consult with the team before issuing a
42-24    solicitation for a major contract.  The procedures must establish a
42-25    process under which the team is required to review and comment on
42-26    whether to proceed with the solicitation.  As detailed in the
 43-1    procedures, the team may recommend that the agency use the services
 43-2    of the attorney general or private counsel or of private
 43-3    consultants who are experts in any technical matter that is the
 43-4    subject of the major contract.
 43-5          (g)  The guide must establish procedures under which a  state
 43-6    agency is required to solicit explanations from qualified potential
 43-7    respondents who did not respond to a competitive solicitation for a
 43-8    contract on which fewer than two qualified bids were received by
 43-9    the agency.
43-10          Sec. 2262.052.  COMPLIANCE WITH GUIDE.  (a)  Each state
43-11    agency shall comply with the contract management guide.
43-12          (b)  The state auditor shall:
43-13                (1)  periodically monitor compliance with this section;
43-14                (2)  report any noncompliance to:
43-15                      (A)  the governor;
43-16                      (B)  the lieutenant governor;
43-17                      (C)  the speaker of the house of representatives;
43-18    and
43-19                      (D)  the team; and
43-20                (3)  assist, in coordination with the attorney general
43-21    and the comptroller, a noncomplying state agency to comply with
43-22    this section.
43-23          Sec. 2262.053.  TRAINING.  (a)  In coordination with the
43-24    Texas Building and Procurement Commission, the comptroller, and the
43-25    Department of Information Resources, the state auditor shall
43-26    develop a training program for contract managers.
 44-1          (b)  The training must provide the contract manager with
 44-2    information regarding how to:
 44-3                (1)  fairly and objectively select and negotiate with
 44-4    the most qualified contractor;
 44-5                (2)  establish prices that are cost-effective and that
 44-6    reflect the cost of providing the service;
 44-7                (3)  include provisions in a contract that hold the
 44-8    contractor accountable for results;
 44-9                (4)  monitor and enforce a contract;
44-10                (5)  make payments consistent with the contract; and
44-11                (6)  comply with any requirements or goals contained in
44-12    the contract management guide.
44-13          (c)  Each state agency shall ensure that the agency's
44-14    contract managers complete the training developed under this
44-15    section.
44-16          Sec. 2262.054.  PUBLIC COMMENT.  The attorney general by rule
44-17    may establish procedures by which each state agency is required to
44-18    invite public comment by publishing the proposed technical
44-19    specifications for major contracts on the Internet through the
44-20    information service known as the Texas Marketplace or through a
44-21    suitable successor information service.  The guide must define
44-22    "technical specifications."
44-23            (Sections 2262.055-2262.100 reserved for expansion)
44-24                   SUBCHAPTER C.  CONTRACT ADVISORY TEAM
44-25          Sec. 2262.101.  CREATION; DUTIES.  The Contract Advisory Team
44-26    is created to assist state agencies in improving contract
 45-1    management practices by:
 45-2                (1)  reviewing the solicitation of major contracts by
 45-3    state agencies;
 45-4                (2)  reviewing any findings or recommendations made by
 45-5    the state auditor, including those made under Section 2262.052(b),
 45-6    regarding a state agency's compliance with the contract management
 45-7    guide; and
 45-8                (3)  providing recommendations to:
 45-9                      (A)  the attorney general regarding the
45-10    development of the contract management guide; and
45-11                      (B)  the state auditor regarding the training
45-12    under Section 2262.053.
45-13          Sec. 2262.102.  MEMBERS.  (a)  The team consists of the
45-14    following five members:
45-15                (1)  one member from the attorney general's office;
45-16                (2)  one member from the comptroller's office;
45-17                (3)  one member from the Department of Information
45-18    Resources;
45-19                (4)  one member from the Texas Building and Procurement
45-20    Commission; and
45-21                (5)  one member from the governor's office.
45-22          (b)  The Legislative Budget Board and the state auditor shall
45-23    provide technical assistance to the team.
45-24          Sec. 2262.103.  PERSONNEL.  Each agency or officer with
45-25    representation on the team shall provide, at the request of the
45-26    team, staff to assist the team in carrying out its duties under
 46-1    this chapter.
 46-2          SECTION 5.02.  Subsection (b), Section 2056.002, Government
 46-3    Code, is amended to read as follows:
 46-4          (b)  The Legislative Budget Board and the Governor's Office
 46-5    of Budget and Planning shall determine the elements required to be
 46-6    included in each agency's strategic plan.  Unless modified by the
 46-7    Legislative Budget Board and the Governor's Office of Budget and
 46-8    Planning, and except as provided by Subsection (c), a plan must
 46-9    include:
46-10                (1)  a statement of the mission and goals of the state
46-11    agency;
46-12                (2)  a description of the indicators developed under
46-13    this chapter and used to measure the output and outcome of the
46-14    agency;
46-15                (3)  identification of the groups of people served by
46-16    the agency, including those having service priorities, or other
46-17    service measures established by law, and estimates of changes in
46-18    those groups expected during the term of the plan;
46-19                (4)  an analysis of the use of the agency's resources
46-20    to meet the agency's needs, including future needs, and an estimate
46-21    of additional resources that may be necessary to meet future needs;
46-22                (5)  an analysis of expected changes in the services
46-23    provided by the agency because of changes in state or federal law;
46-24                (6)  a description of the means and strategies for
46-25    meeting the agency's needs, including future needs, and achieving
46-26    the goals established under Section 2056.006 for each area of state
 47-1    government for which the agency provides services;
 47-2                (7)  a description of the capital improvement needs of
 47-3    the agency during the term of the plan and a statement, if
 47-4    appropriate, of the priority of those needs;
 47-5                (8)  identification of each geographic region of this
 47-6    state, including the Texas-Louisiana border region and the
 47-7    Texas-Mexico border region, served by the agency, and if
 47-8    appropriate the agency's means and strategies for serving each
 47-9    region;
47-10                (9)  a description of the training of the agency's
47-11    contract managers under Section 2262.053; and
47-12                (10) [(9)]  other information that may be required.
47-13          SECTION 5.03.  Not later than March 1, 2002, the members of
47-14    the Contract Advisory Team created under Section 2262.101,
47-15    Government Code, as added by this Act, shall be designated by the
47-16    appropriate state agency or officer.
47-17          SECTION 5.04.  Not later than March 1, 2002, the attorney
47-18    general shall complete the contract management guide required by
47-19    Section 2262.051, Government Code, as added by this Act.
47-20          SECTION 5.05.  (a)  In this section:
47-21                (1)  "Team" means the Contract Advisory Team created
47-22    under Subchapter C, Chapter 2262, Government Code, as added by this
47-23    Act.
47-24                (2)  "Major contract" has the meaning provided by
47-25    Section 2262.001, Government Code, as added by this Act.
47-26                (3)  "Solicitation" includes an invitation for bid,
 48-1    request for proposal, request for offer, request for quote, or
 48-2    other method for soliciting contracts in this state.
 48-3                (4)  "State agency" has the meaning provided by Section
 48-4    2056.001, Government Code.
 48-5          (b)  Not later than March 1, 2002, each state agency shall
 48-6    provide the team:
 48-7                (1)  a list of all unexpired major contracts entered
 48-8    into by the agency for which a competitive bid was solicited before
 48-9    September 1, 1998; and
48-10                (2)  a plan for issuing new solicitations for those
48-11    contracts not later than September 1, 2003.
48-12          (c)  The team may review and comment on the plan submitted
48-13    under Subsection (b) of this section.
48-14          (d)  This section does not apply to contracts of the Texas
48-15    Department of Transportation that relate to highway construction or
48-16    highway engineering.
48-17          SECTION 5.06.  Not later than December 31, 2002, one contract
48-18    manager designated by each state agency must have received the
48-19    training required by Subsection (c), Section 2262.053, Government
48-20    Code, as added by this Act.
48-21          SECTION 5.07.  (a)  Except as provided by Subsections (b) and
48-22    (c) of this section, this article takes effect September 1, 2001.
48-23          (b)  Subsection (a), Section 2262.052, Government Code, as
48-24    added by this Act, takes effect January 1, 2003.  A state agency
48-25    may comply with Subsection (a), Section 2262.052, Government Code,
48-26    before its effective date.
 49-1          (c)  A state agency is not required to comply with
 49-2    Subdivision (9), Subsection (b), Section 2056.002, Government Code,
 49-3    as added by this Act, until June 1, 2004.
 49-4               ARTICLE 6.  COMMERCIALLY AVAILABLE ACTIVITIES
 49-5          SECTION 6.01.  Subtitle D, Title 10, Government Code, is
 49-6    amended by adding Chapter 2163 to read as follows:
 49-7             CHAPTER 2163.  COMMERCIALLY AVAILABLE ACTIVITIES
 49-8          Sec. 2163.001.  REVIEW PROCESS.  (a)  The commission shall
 49-9    develop a systematic review process to identify commercially
49-10    available services being performed by the commission and study the
49-11    services to determine if they may be better provided by other state
49-12    agency providers of the services or private commercial sources.
49-13          (b)  In reviewing its services, the commission shall:
49-14                (1)  determine whether competitive vendors exist in the
49-15    private sector;
49-16                (2)  compare the cost of contracting for the services
49-17    from other state agency providers of the services or private
49-18    commercial sources to the commission's cost of performing the
49-19    services; and
49-20                (3)  document cost savings from contracting for the
49-21    services from other state agency providers of the services or
49-22    private commercial sources.
49-23          (c)  Each commercially available service performed by the
49-24    commission shall be reviewed at least once every six years.
49-25          (d)  The commission shall consult with the State Council on
49-26    Competitive Government as necessary in planning and conducting its
 50-1    reviews under this subchapter.
 50-2          Sec. 2163.002.  COST COMPARISON AND CONTRACT CONSIDERATIONS.
 50-3    (a)  The commission shall consider all of its direct and indirect
 50-4    costs in determining the cost of providing a service.
 50-5          (b)  In comparing the cost of providing a service, the
 50-6    commission must include the:
 50-7                (1)  cost of supervising the work of a private
 50-8    contractor; and
 50-9                (2)  cost to the state of the commission's performance
50-10    of the service, including:
50-11                      (A)  the costs of the office of the attorney
50-12    general and other support agencies; and
50-13                      (B)  other indirect costs related to the
50-14    commission's performance of the service.
50-15          Sec. 2163.003.  CONTRACTING WITH ANOTHER STATE AGENCY OR
50-16    PRIVATE SOURCE.  (a)  If the commission determines that a service
50-17    can be performed with a comparable or better level of quality at a
50-18    savings to the state of at least 10 percent by using other state
50-19    agency providers of the service or a private commercial source, the
50-20    commission may contract with other state agency providers of the
50-21    services or private commercial sources for the service.
50-22          (b)  The commission maintains responsibility for providing a
50-23    contracted service and shall set measurable performance standards
50-24    for a contractor.
50-25          Sec. 2163.004.  PROHIBITION.  The commission may not begin
50-26    providing a service the General Services Commission did not provide
 51-1    as of September 1, 2001, unless, after conducting an in-depth
 51-2    analysis on cost in accordance with Section 2163.002 and on
 51-3    availability of a service, the commission determines that it can
 51-4    perform the service at a higher level of quality or at a lower cost
 51-5    than other state agency providers of the service or private
 51-6    commercial sources.
 51-7                  ARTICLE 7.  ELECTRONIC COMMERCE; TRAVEL
 51-8          SECTION 7.01.  Subsection (a), Section 2155.062, Government
 51-9    Code, is amended to read as follows:
51-10          (a)  In purchasing goods and services the commission may use,
51-11    but is not limited to, the:
51-12                (1)  contract purchase procedure;
51-13                (2)  multiple award contract procedure, including under
51-14    any schedules developed under Subchapter I; [or]
51-15                (3)  open market purchase procedure; or
51-16                (4)  reverse auction procedure.
51-17          SECTION 7.02.  Subsections (c), (d), (f), (k), and (l),
51-18    Section 2155.83, Government Code, are amended to read as follows:
51-19          (c)  The commission [department] each business day shall
51-20    produce and post a business daily in an electronic format.  The
51-21    commission [department] shall post in the business daily
51-22    information as prescribed by this section about each state agency
51-23    procurement that will exceed $25,000 in value.  The commission
51-24    [department] shall also post in the business daily other
51-25    information relating to the business activity of the state that the
51-26    commission [department] considers to be of interest to the public.
 52-1          (d)  The commission [department] shall make the business
 52-2    daily available on the Internet [through its information service
 52-3    known as the Texas Marketplace or through a suitable successor
 52-4    information service that will make the information available on the
 52-5    Internet].  Each [The department and each] state agency shall
 52-6    cooperate with the commission in making the electronic business
 52-7    daily available.
 52-8          (f)  The commission [department] and other state agencies may
 52-9    not charge a fee designed to recover the cost of preparing and
52-10    gathering the information that is published in the business daily.
52-11    These costs are considered part of a procuring agency's
52-12    responsibility to publicly inform potential bidders or offerors of
52-13    its procurement opportunities.
52-14          (k)  Each state agency that will award a procurement contract
52-15    estimated to exceed $25,000 in value shall send to the commission
52-16    [department]:
52-17                (1)  the information the commission [department]
52-18    requires for posting in the state business daily under this
52-19    section; and
52-20                (2)  a notice when the procurement contract has been
52-21    awarded or when the state agency has decided to not make the
52-22    procurement.
52-23          (l)  The commission [department] may adopt rules, prescribe
52-24    forms, and require information to administer this section.  The
52-25    commission [department] shall send any proposed rules to the
52-26    governor, Legislative Budget Board, comptroller, and state auditor
 53-1    [, and commission] for review and comment.  The commission's
 53-2    [department's] rules shall require that each state agency[, to the
 53-3    extent feasible,] shall directly and electronically post its own
 53-4    notices or solicitation packages under Subsections (g) and (h).
 53-5          SECTION 7.03.  Subsections (a) and (b), Section 2156.003,
 53-6    Government Code, are amended to read as follows:
 53-7          (a)  The commission shall electronically maintain a bidders
 53-8    list that is integrated into the electronic procurement marketplace
 53-9    established by the Department of Information Resources.  If the
53-10    commission determines that it is in the state's best interest, the
53-11    commission may also maintain the list on paper.  The commission may
53-12    [and] add or delete names from the list according to applicable
53-13    standards provided by Section 2156.007.
53-14          (b)  In addition to any requirements of Chapter 2177, an [An]
53-15    invitation to bid on an item to be purchased may be sent
53-16    electronically [only] to a vendor on the bidders list who has
53-17    expressed a desire to bid on that type of item.
53-18          SECTION 7.04.  Section 2171.052, Government Code, is amended
53-19    by adding Subsection (e) to read as follows:
53-20          (e)  The commission shall maintain at least one contract with
53-21    a provider of travel services that offers reservation and ticketing
53-22    services in person or by telephone.
53-23          SECTION 7.05.  Subchapter B, Chapter 2171, Government Code,
53-24    is amended by adding Section 2171.0521 to read as follows:
53-25          Sec. 2171.0521.  ONLINE RESERVATION AND TICKETING CAPABILITY.
53-26    (a)  The Department of Information Resources, in consultation with
 54-1    the commission, shall establish and manage the electronic
 54-2    infrastructure of an online travel reservation and ticketing
 54-3    capability for use by state agencies participating in the
 54-4    commission's contracts for travel services.  The commission shall
 54-5    manage and administer the content of the online travel reservation
 54-6    and ticketing capability.  The Department of Information Resources,
 54-7    in consultation with the commission, shall enter into contracts
 54-8    with private or public entities to establish a secure means by
 54-9    which a state employee traveling on state business may
54-10    electronically participate in the commission's contracts for travel
54-11    services.  The Department of Information Resources shall attempt to
54-12    establish an online capability that connects to the online
54-13    reservation or ticketing systems of providers of travel services.
54-14    Reservations must be made with a state-issued credit card or other
54-15    form of payment authorized by the commission.
54-16          (b)  The preference in Section 2171.052(c) for a resident
54-17    entity of this state does not apply to this section.
54-18          (c)  A state agency may use the online reservation and
54-19    ticketing capability to make travel reservations for a state
54-20    employee traveling on state business.
54-21          SECTION 7.06.  Chapter 2177, Government Code, is amended to
54-22    read as follows:
54-23                    CHAPTER 2177.  ELECTRONIC COMMERCE
54-24                     SUBCHAPTER A.  GENERAL PROVISIONS
54-25          Sec. 2177.001.  DEFINITIONS.  In this chapter:
54-26                (1)  "Department" means the Department of Information
 55-1    Resources.
 55-2                (2)  "Electronic procurement system" means the
 55-3    electronic system for procuring goods and services consisting of
 55-4    the electronic procurement marketplace created under Subchapter B
 55-5    and the electronic commerce network created under Subchapter C.
 55-6          Sec. 2177.002.  SMALL AND HISTORICALLY UNDERUTILIZED
 55-7    BUSINESSES.  The commission and the department shall ensure that
 55-8    small and historically underutilized businesses have maximum access
 55-9    to electronic commerce opportunities.
55-10          Sec. 2177.003.  CONSULTATION.  The commission, at least
55-11    quarterly, shall consult with the following entities to ensure that
55-12    the electronic procurement system meets the needs of users of the
55-13    system:
55-14                (1)  the department;
55-15                (2)  the state auditor;
55-16                (3)  groups, including coordinating councils, created
55-17    by the commission to assist with electronic commerce initiatives;
55-18                (4)  the vendor advisory committee established under
55-19    Section 2155.081; and
55-20                (5)  other state agencies and local governments that
55-21    use the system.
55-22          Sec. 2177.004.  INTERFACE WITH TEXAS ONLINE.  (a)  The
55-23    department, with the assistance of the commission, shall assess
55-24    whether all or parts of the electronic procurement system should
55-25    interface with the project known as Texas Online that is a
55-26    continuation of the demonstration project authorized by Section
 56-1    2054.062 as enacted by the 76th Legislature.
 56-2          (b)  Based on the assessment, the department and the
 56-3    commission may interface all or parts of the electronic procurement
 56-4    system with Texas Online or use features of Texas Online to enhance
 56-5    the electronic procurement system.
 56-6             SUBCHAPTER B.  ELECTRONIC PROCUREMENT MARKETPLACE
 56-7          Sec. 2177.051.  ELECTRONIC PROCUREMENT MARKETPLACE.  (a)  The
 56-8    department [commission] shall establish and manage the electronic
 56-9    infrastructure of an electronic procurement marketplace.  The
56-10    commission shall manage and administer the content of the
56-11    electronic procurement marketplace in accordance with this
56-12    subtitle.  The department or commission, as appropriate, may enter
56-13    into contracts with private or public entities to establish or
56-14    maintain all or part of the databases comprising the marketplace,
56-15    to the extent feasible, including contracts to procure hardware or
56-16    software.  The department or commission, as appropriate, shall
56-17    procure all goods and services related to the marketplace through a
56-18    competitive selection process appropriate for the good or service
56-19    being acquired.
56-20          (b)  The commission, in consultation with the department
56-21    [Department of Information Resources], shall define standards,
56-22    including keyword and product code standards, for the electronic
56-23    procurement marketplace.  The marketplace may contain:
56-24                (1)  information relevant to the state's standard
56-25    procurement specifications for goods and services;
56-26                (2)  information about vendors, including [information
 57-1    from the centralized master bidders list and] vendor performance
 57-2    information;
 57-3                (3)  information about products, including product
 57-4    testing results;
 57-5                (4)  historical purchasing information, qualified
 57-6    purchase lists, and trends; [and]
 57-7                (5)  information about the availability of surplus
 57-8    property; and
 57-9                (6)  information about recycled, remanufactured, or
57-10    environmentally sensitive commodities or services, including
57-11    commodities or services identified under Section 2155.448.
57-12          (c)  The commission shall integrate the business daily into
57-13    the electronic procurement marketplace.
57-14          (d)  The department [commission] may adopt rules relating to
57-15    the design and use of the electronic procurement marketplace that
57-16    concern the technical requirements of the marketplace.  The
57-17    commission may adopt rules relating to the use of the marketplace
57-18    for its intended purpose, including rules that require state
57-19    agencies to provide information for or receive information from the
57-20    marketplace.  The department and the commission shall consult in
57-21    adopting rules under this subsection.
57-22          (e) [(d)]  The commission may make state procurement
57-23    information available to political subdivisions through the
57-24    electronic procurement marketplace on a fee-for-service basis.  The
57-25    commission shall set the fees in an amount that recovers the
57-26    state's costs in providing the access to a political subdivision.
 58-1          (f) [(e)]  Before developing a contract for the procurement
 58-2    of a good or service, a state agency shall [may] use the electronic
 58-3    procurement marketplace as prescribed by this chapter and
 58-4    commission rules [to determine the most appropriate method for
 58-5    acquiring the good or service].
 58-6          (g) [(f)]  The marketplace may contain:
 58-7                (1)  information relevant to the state's standard
 58-8    procurement specifications for goods and services;
 58-9                (2)  information about vendors, including [information
58-10    from the centralized master bidders list and] vendor performance
58-11    information;
58-12                (3)  information about products, including product
58-13    testing results; and
58-14                (4)  historical purchasing information, qualified
58-15    purchase lists, and trends.
58-16          (h) [(g)]  The department or commission may require
58-17    information from a state agency for inclusion in the electronic
58-18    procurement marketplace.
58-19                SUBCHAPTER C.  ELECTRONIC COMMERCE NETWORK
58-20          Sec. 2177.101.  EXCEPTIONS.  (a)  This subchapter does not
58-21    apply to procurements for major construction projects, as defined
58-22    by the commission in consultation with the department, such as
58-23    procurements made under Chapter 223, Transportation Code.  In
58-24    defining a major construction project, the commission shall base
58-25    its decision on whether the nature of the project, any related
58-26    contract or specifications, or other considerations are of a type
 59-1    that would make electronic procurement inappropriate.
 59-2          (b)  The exceptions listed under Section 2166.003(a) apply as
 59-3    exceptions to this subchapter.
 59-4          Sec. 2177.102 [2177.002].  ELECTRONIC COMMERCE NETWORK.
 59-5    (a)  The department shall establish and manage the electronic
 59-6    infrastructure of an electronic commerce network.  The commission
 59-7    shall [establish and] manage and administer the content of the
 59-8    electronic commerce network.  The [an] electronic commerce network,
 59-9    to the extent feasible, shall allow [under which] the state's
59-10    purchasing transactions with vendors to [can] be accomplished
59-11    electronically by means of facsimile transmissions and on-line
59-12    transmission of necessary information.  [The commission shall
59-13    comply with applicable rules of the Department of Information
59-14    Resources to the extent that they are based on the standard data
59-15    protocol developed by the American National Standards Institute
59-16    known as electronic data interchange or on other efficient
59-17    standards as determined by the commission.]
59-18          (b)  The department or commission, as appropriate, may enter
59-19    into contracts with one or more public or private entities to
59-20    establish or support various elements of the network.  The
59-21    department or commission, as appropriate, shall procure all goods
59-22    and services related to the network through the competitive
59-23    selection process appropriate for the good or service being
59-24    acquired.
59-25          (c)  The department, in consultation with the commission, may
59-26    provide for a gateway between the electronic procurement
 60-1    marketplace and the electronic commerce network so that the
 60-2    elements of a procurement transaction that are within state
 60-3    government and the elements of a procurement transaction that
 60-4    involve communication with a vendor may all be accomplished
 60-5    electronically.
 60-6          (d)  Each state agency [that is capable of participating in
 60-7    the electronic commerce network] must participate in the network
 60-8    and participate in contracts entered into by the department or the
 60-9    commission for the establishment or support of the network.  The
60-10    department [commission] shall charge an agency a fee for network
60-11    services provided to the agency by the department [commission] or
60-12    by a contractor so that the cost of providing network services to
60-13    an agency is paid by the agency.
60-14          (e)  The commission may allow political subdivisions and
60-15    other public entities that are members of the commission's
60-16    cooperative purchasing program to participate in the electronic
60-17    commerce network.  The department [commission] shall require that a
60-18    participating political subdivision or other entity is charged a
60-19    fee for the network services in the same manner that participating
60-20    state agencies are charged fees under Subsection (d).
60-21          (f)  The department [commission] may also charge private
60-22    businesses a fee for accessing the network.
60-23          (g)  The department may adopt rules to administer this
60-24    section that concern the technical requirements of the network.
60-25    The commission may:
60-26                (1)  adopt rules relating to the use of the network for
 61-1    its intended purpose [to administer this section]; and
 61-2                (2)  require participating state agencies, political
 61-3    subdivisions, and other public entities to designate a network
 61-4    coordinator.
 61-5          (h)  The department and the commission shall consult in
 61-6    adopting rules under this section.
 61-7          (i)  The requirements of this subchapter [section and Section
 61-8    2177.003] are in addition to the requirements of other law relating
 61-9    to the solicitation of bids, proposals, or expressions of interest
61-10    for a procurement by the commission or another state agency.  This
61-11    subchapter does [section and Section 2177.003 do] not affect any
61-12    other law that requires the commission or another state agency to
61-13    award a procurement contract through competitive bidding,
61-14    competitive sealed proposals, or another method.
61-15          Sec. 2177.103 [2177.003].  PARTICIPATION BY STATE AGENCIES IN
61-16    ELECTRONIC COMMERCE NETWORK.  (a)  Each state agency shall send to
61-17    the commission for posting on the electronic commerce network
61-18    information on each procurement contract the commission, in
61-19    consultation with the department, determines is appropriate for
61-20    electronic procurement [the value of which will exceed the amount
61-21    of the agency's delegated purchasing authority under Section
61-22    2155.132]:
61-23                (1)  without regard to the source of funds the agency
61-24    will use for the procurement; and
61-25                (2)  including a procurement that is:
61-26                      (A)  a procurement by a state agency that is
 62-1    otherwise exempt from the commission's purchasing authority;
 62-2                      (B)  made under delegated purchasing authority
 62-3    under Section 2155.131; or
 62-4                      (C)  [related to a construction project; or]
 62-5                      [(D)]  a procurement of professional or
 62-6    consulting services.
 62-7          (b)  The commission and each state agency shall include in
 62-8    the information placed on the electronic commerce network[, to the
 62-9    extent it is feasible,] the following information for each
62-10    procurement that the commission will make or that another state
62-11    agency will make under Subsection (a):
62-12                (1)  a description of the goods or services to be
62-13    procured;
62-14                (2)  the estimated quantity of the goods or services to
62-15    be procured;
62-16                (3)  if applicable, the previous price paid by the
62-17    commission or another state agency for the same or similar goods or
62-18    services;
62-19                (4)  the estimated date on which the goods or services
62-20    to be procured will be needed; and
62-21                (5)  the name, business mailing address, and business
62-22    telephone number of the commission employee or other state agency
62-23    employee a person can contact to obtain all necessary information
62-24    relating to making a bid or proposal or other applicable expression
62-25    of interest for the procurement contract.
62-26          (c)  The commission shall also post on the electronic
 63-1    commerce network other information relating to the business
 63-2    activity of the state that the commission considers to be of
 63-3    interest to the public.  Each state agency shall provide the
 63-4    commission with information the commission requires for purposes of
 63-5    this subsection in a format prescribed by the commission.
 63-6          (d)  Each state agency that will award a contract that has
 63-7    been placed on the electronic commerce network under Subsection (a)
 63-8    shall place notification of the awarding of the contract on the
 63-9    electronic commerce network.
63-10          SECTION 7.07.  Subsection (b), Section 2155.083, Government
63-11    Code, is repealed.
63-12          SECTION 7.08.  On October 1, 2001:
63-13                (1)  all functions and activities performed by the
63-14    Texas Department of Economic Development relating to the business
63-15    daily under Chapter 2155, Government Code, or other law immediately
63-16    before that date are transferred to the Texas Building and
63-17    Procurement Commission;
63-18                (2)  a rule or form adopted by the Texas Department of
63-19    Economic Development that relates to the business daily under
63-20    Chapter 2155, Government Code, or other law is a rule or form of
63-21    the Texas Building and Procurement Commission and remains in effect
63-22    until altered by the commission;
63-23                (3)  a reference in law to the Texas Department of
63-24    Economic Development that relates to the business daily under
63-25    Chapter 2155, Government Code, or other law means the Texas
63-26    Building and Procurement Commission;
 64-1                (4)  all rights and obligations of the Texas Department
 64-2    of Economic Development related to the business daily under Chapter
 64-3    2155, Government Code, or other law are transferred to the
 64-4    commission; and
 64-5                (5)  all property, including records, in the custody of
 64-6    the Texas Department of Economic Development related to the
 64-7    business daily under Chapter 2155, Government Code, or other law is
 64-8    transferred to the Texas Building and Procurement Commission.
 64-9          SECTION 7.09.  The Department of Information Resources shall
64-10    have the online reservation and ticketing capability created under
64-11    Section 2171.0521, Government Code, as added by this Act, fully
64-12    operational by September 1, 2002.
64-13                        ARTICLE 8.  STATE CEMETERY
64-14          SECTION 8.01.  Subsection (a), Section 2165.256, Government
64-15    Code, is amended to read as follows:
64-16          (a)  The State Cemetery Committee shall oversee all
64-17    operations of the State Cemetery.  The committee shall develop a
64-18    budget for the operations of the commission relating to the State
64-19    Cemetery and determine the salary of employees of the commission
64-20    whose duties primarily relate to the operation of the State
64-21    Cemetery.
64-22          SECTION 8.02.  Section 2165.2561, Government Code, is amended
64-23    by amending Subsections (a), (k), and (l) and adding Subsections
64-24    (n) through (u) to read as follows:
64-25          (a)  The State Cemetery Committee is composed of:
64-26                (1)  three voting members appointed as follows:
 65-1                      (A)  one member of the general public appointed
 65-2    by the governor;
 65-3                      (B)  one member of the general public appointed
 65-4    by the governor from a list submitted by the lieutenant governor;
 65-5    and
 65-6                      (C)  one member of the general public appointed
 65-7    by the governor from a list submitted by the speaker of the house
 65-8    of representatives; and
 65-9                (2)  three nonvoting advisory members appointed as
65-10    follows:
65-11                      (A)  one employee of the Texas Historical
65-12    Commission appointed by the executive director of the Texas
65-13    Historical Commission;
65-14                      (B)  one employee of the Texas Building and
65-15    Procurement [General Services] Commission appointed by the
65-16    executive director of the Texas Building and Procurement [General
65-17    Services] Commission; and
65-18                      (C)  one employee of the Parks and Wildlife
65-19    Department appointed by the executive director of the Parks and
65-20    Wildlife Department.
65-21          (k)  The legislature shall separately appropriate money to
65-22    the committee within the appropriations to the Texas Building and
65-23    Procurement Commission for all matters relating to the operation of
65-24    the State Cemetery.  [At the direction of the committee, the
65-25    General Services Commission shall spend money appropriated to or
65-26    budgeted by the General Services Commission for State Cemetery
 66-1    purposes.]  Activities relating to maintenance of the State
 66-2    Cemetery grounds and monuments shall conform to guidelines for
 66-3    historic preservation submitted to the committee by the Texas
 66-4    Historical Commission.
 66-5          (l)  Funds appropriated to the Texas Building and Procurement
 66-6    [General Services] Commission may be transferred by interagency
 66-7    contract for the performance of, at the direction of the committee,
 66-8    an act related to the State Cemetery.
 66-9          (n)  It is a ground for removal from the committee that a
66-10    member:
66-11                (1)  does not have at the time of taking office the
66-12    qualifications required by Subsection (a);
66-13                (2)  does not maintain during service on the committee
66-14    the qualifications required by Subsection (a);
66-15                (3)  is ineligible for membership under Subsection (g)
66-16    or (h);
66-17                (4)  cannot, because of illness or disability,
66-18    discharge the member's duties for a substantial part of the
66-19    member's term; or
66-20                (5)  is absent from more than half of the regularly
66-21    scheduled committee meetings that the member is eligible to attend
66-22    during a calendar year without an excuse approved by a majority
66-23    vote of the committee.
66-24          (o)  The validity of an action of the committee is not
66-25    affected by the fact that it is taken when a ground for removal of
66-26    a committee member exists.
 67-1          (p)  If the executive director of the commission has
 67-2    knowledge that a potential ground for removal exists, the executive
 67-3    director shall notify the presiding officer of the committee of the
 67-4    potential ground.  The presiding officer shall then notify the
 67-5    governor and the attorney general that a potential ground for
 67-6    removal exists.  If the potential ground for removal involves the
 67-7    presiding officer, the executive director shall notify the next
 67-8    highest ranking officer of the committee, who shall then notify the
 67-9    governor and the attorney general that a potential ground for
67-10    removal exists.
67-11          (q)  The executive director of the commission or the
67-12    executive director's designee shall provide to members of the
67-13    committee, as often as necessary, information regarding the
67-14    requirements for office under this chapter, including information
67-15    regarding a person's responsibilities under applicable laws
67-16    relating to standards of conduct for state officers.
67-17          (r)  A person who is appointed to and qualifies for office as
67-18    a member of the committee may not vote, deliberate, or be counted
67-19    as a member in attendance at a meeting of the committee until the
67-20    person completes a training program that complies with this
67-21    subsection.  The training program must provide the person with
67-22    information regarding:
67-23                (1)  the legislation that created the State Cemetery
67-24    and the State Cemetery Committee;
67-25                (2)  the programs operated by the committee;
67-26                (3)  the role and functions of the committee;
 68-1                (4)  the rules of the committee, with an emphasis on
 68-2    any rules that relate to disciplinary and investigatory authority;
 68-3                (5)  the current budget for the committee;
 68-4                (6)  the results of the most recent formal audit of
 68-5    cemetery operations;
 68-6                (7)  the requirements of:
 68-7                      (A)  the open meetings law, Chapter 551;
 68-8                      (B)  the public information law, Chapter 552;
 68-9                      (C)  the administrative procedure law, Chapter
68-10    2001; and
68-11                      (D)  other laws relating to public officials,
68-12    including conflict-of-interest laws; and
68-13                (8)  any applicable ethics policies adopted by the
68-14    commission, the committee, or the Texas Ethics Commission.
68-15          (s)  A person appointed to the committee is entitled to
68-16    reimbursement, as provided by Chapter 660 and the General
68-17    Appropriations Act, for the travel expenses incurred in attending
68-18    the training program regardless of whether the attendance at the
68-19    program occurs before or after the person qualifies for office.
68-20          (t)  The committee shall develop and implement policies that
68-21    clearly separate the policymaking responsibilities of the committee
68-22    and the management responsibilities of the executive director of
68-23    the commission and staff of the cemetery.
68-24          (u)  The committee shall develop and implement policies that
68-25    provide the public with a reasonable opportunity to appear before
68-26    the committee and to speak on any issue under the jurisdiction of
 69-1    the committee.
 69-2          SECTION 8.03.  (a)  The changes in law made by this Act in
 69-3    the prohibitions and qualifications applying to members of the
 69-4    State Cemetery Committee do not affect the entitlement of a member
 69-5    serving on the committee immediately before September 1, 2001, to
 69-6    continue to serve and function as a member of the committee for the
 69-7    remainder of the member's term.  The changes in law apply only to a
 69-8    member appointed on or after September 1, 2001.  This Act does not
 69-9    prohibit a person who is a member of the State Cemetery Committee
69-10    immediately before September 1, 2001, from being reappointed as a
69-11    committee member if the person has the qualifications required for
69-12    the position under Chapter 2165, Government Code, as amended by
69-13    this Act.
69-14          (b)  Subsection (r), Section 2165.2561, Government Code, as
69-15    added by this Act, does not apply to a member of the State Cemetery
69-16    Committee until March 1, 2002.
69-17          SECTION 8.04.  The changes in law made by this Act to
69-18    Subsection (k), Section 2165.2561, Government Code, apply beginning
69-19    with the fiscal year beginning on September 1, 2003.
69-20             ARTICLE 9.  CONTRACTING METHODS FOR CONSTRUCTION
69-21                            OF STATE FACILITIES
69-22          SECTION 9.01.  Subchapter F, Chapter 2166, Government Code,
69-23    is amended by adding Section 2166.2511 to read as follows:
69-24          Sec. 2166.2511.  DEFINITIONS.  In this subchapter:
69-25                (1)  "Architect" means an individual registered as an
69-26    architect under Chapter 478, Acts of the 45th Legislature, Regular
 70-1    Session, 1937 (Article 249a, Vernon's Texas Civil Statutes).
 70-2                (2)  "Contractor" in the context of a contract for a
 70-3    project means a sole proprietorship, partnership, corporation, or
 70-4    other legal entity that assumes the risk for constructing,
 70-5    rehabilitating, altering, or repairing all or part of the project
 70-6    at the contracted price.
 70-7                (3)  "Engineer" means an individual registered as a
 70-8    professional engineer under The Texas Engineering Practice Act
 70-9    (Article 3271a, Vernon's Texas Civil Statutes).
70-10                (4)  "Facility" means buildings or structures the
70-11    design and construction of which is governed by accepted building
70-12    codes.  The term does not include:
70-13                      (A)  highways, roads, streets, bridges,
70-14    utilities, water supply projects, water plants, wastewater plants,
70-15    water and wastewater distribution or conveyance facilities,
70-16    wharves, docks, airport runways and taxiways, drainage projects, or
70-17    related types of projects associated with civil engineering
70-18    construction; or
70-19                      (B)  buildings or structures that are incidental
70-20    to projects that are primarily civil engineering construction
70-21    projects.
70-22                (5)  "Fee" in the context of a contract for a project
70-23    means the payment a construction manager receives for its overhead
70-24    and profit in performing its services.
70-25                (6)  "General conditions" in the context of a contract
70-26    for a project means on-site management, administrative personnel,
 71-1    insurance, bonds, equipment, utilities, and incidental work,
 71-2    including minor field labor and materials.
 71-3          SECTION 9.02.  Subchapter F, Chapter 2166, Government Code,
 71-4    is amended by adding Section 2166.2525 to read as follows:
 71-5          Sec. 2166.2525.  DETERMINATION OF CONTRACTING METHOD.  The
 71-6    commission shall adopt rules that determine the circumstances for
 71-7    use of each method of contracting allowed under this subchapter for
 71-8    design and construction services.  In developing the rules, the
 71-9    commission shall solicit advice and comment from design and
71-10    construction professionals regarding the criteria the commission
71-11    will use in determining which contracting method is best suited for
71-12    a project.
71-13          SECTION 9.03.  Subchapter F, Chapter 2166, Government Code,
71-14    is amended by adding Section 2166.2526 to read as follows:
71-15          Sec. 2166.2526.  EVALUATION OF BIDS AND PROPOSALS FOR
71-16    CONSTRUCTION SERVICES.  (a)  For each project, the commission must,
71-17    before advertising, establish which method of contracting provides
71-18    the best value for the commission or using agency.
71-19          (b)  Under each method of contracting, the commission shall
71-20    base its selection among the offerors on criteria established by
71-21    the commission.  The commission shall publish in the request for
71-22    bids, proposals, or qualifications all of the criteria that will be
71-23    used to evaluate the offerors.
71-24          (c)  The commission shall document the basis of its selection
71-25    of an offeror and shall make the evaluations public not later than
71-26    the seventh day after the date the contract is awarded.
 72-1          SECTION 9.04.  Section 2166.253, Government Code, is amended
 72-2    to read as follows:
 72-3          Sec. 2166.253.  LOWEST AND BEST BID METHOD [BIDDING
 72-4    PROCEDURES].  (a)  The commission may use the lowest and best bid
 72-5    method for a project.  In using that method, the commission shall
 72-6    follow the procedures provided by Subsections (b)-(g).
 72-7          (b)  After final approval of a project's working plans and
 72-8    specifications and their acceptance by a using agency, the
 72-9    commission shall advertise in one newspaper of general circulation
72-10    and the Texas Register for bids or proposals for the construction
72-11    of and related work on the project.
72-12          (c) [(b)]  Except as provided by Subsection (d) [(c)], the
72-13    commission shall allow bidders not less than 30 days after the date
72-14    the commission issues the bid documents to respond to an invitation
72-15    to bid.
72-16          (d) [(c)]  The commission shall allow bidders for small
72-17    construction projects not less than 14 days after the date the
72-18    commission issues the bid documents to respond to an invitation to
72-19    bid.
72-20          (e) [(d)]  The commission may shorten the time for response
72-21    to prevent undue additional costs to a state agency or, for
72-22    emergency projects, to prevent or remove a hazard to life or
72-23    property.
72-24          (f)  A contract shall be awarded to the qualified bidder
72-25    making the lowest and best bid in accordance with the law on
72-26    awarding a state contract.
 73-1          (g)  The commission may reject all bids.
 73-2          SECTION 9.05.  Subchapter F, Chapter 2166, Government Code,
 73-3    is amended by adding Section 2166.2531 to read as follows:
 73-4          Sec. 2166.2531.  DESIGN-BUILD METHOD.  (a)  In this section:
 73-5                (1)  "Design-build contract" means a single contract
 73-6    with a design-build firm for the design and construction of a
 73-7    facility.
 73-8                (2)  "Design-build firm" means a partnership,
 73-9    corporation, or other legal entity or team that includes an
73-10    engineer or architect and a builder qualified to engage in building
73-11    construction in this state.
73-12                (3)  "Design criteria package" means a set of documents
73-13    that provides sufficient information to permit a design-build firm
73-14    to prepare a response to the commission's request for
73-15    qualifications and any additional information requested, including
73-16    criteria for selection.  The design criteria package must specify
73-17    criteria the commission considers necessary to describe the project
73-18    and may include, as appropriate, the legal description of the site,
73-19    survey information concerning the site, interior space
73-20    requirements, special material requirements, material quality
73-21    standards, conceptual criteria for the project, special equipment
73-22    requirements, cost or budget estimates, time schedules, quality
73-23    assurance and quality control requirements, site development
73-24    requirements, applicable codes and ordinances, provisions for
73-25    utilities, parking requirements, or any other requirement, as
73-26    applicable.
 74-1          (b)  The commission may use the design-build method for a
 74-2    project.  In using that method and in entering into a contract for
 74-3    the services of a design-build firm, the commission and the
 74-4    design-build firm shall follow the procedures provided by
 74-5    Subsections (c)-(k).
 74-6          (c)  The commission shall designate an engineer or architect
 74-7    to act as its representative.  If the commission's engineer or
 74-8    architect is not a full-time employee of the commission, any
 74-9    engineer or architect designated shall be selected on the basis of
74-10    demonstrated competence and qualifications in accordance with
74-11    Subchapter A, Chapter 2254.
74-12          (d)  The commission shall prepare a request for
74-13    qualifications that includes general information on the project
74-14    site, project scope, budget, special systems, selection criteria,
74-15    and other information that may assist potential design-build firms
74-16    in submitting proposals for the project.  The commission shall also
74-17    prepare a design criteria package that includes more detailed
74-18    information on the project.  If the preparation of the design
74-19    criteria package requires engineering or architectural services
74-20    that constitute the practice of engineering within the meaning of
74-21    The Texas Engineering Practice Act (Article 3271a, Vernon's Texas
74-22    Civil Statutes) or the practice of architecture within the meaning
74-23    of Chapter 478, Acts of the 45th Legislature, Regular Session, 1937
74-24    (Article 249a, Vernon's Texas Civil Statutes), those services shall
74-25    be provided in accordance with the applicable law.
74-26          (e)  The commission or its representative shall publish the
 75-1    request for qualifications in a manner prescribed by the
 75-2    commission.
 75-3          (f)(1)  The commission or its representative shall evaluate
 75-4    statements of qualifications and select a design-build firm in two
 75-5    phases.
 75-6                (2)  In phase one, the commission or its representative
 75-7    shall prepare a request for qualifications and evaluate each
 75-8    offeror's experience, technical competence, and capability to
 75-9    perform, the past performance of the offeror's team and members of
75-10    the team, and other appropriate factors submitted by the team or
75-11    firm in response to the request for qualifications, except that
75-12    cost-related or price-related evaluation factors are not permitted.
75-13    Each offeror must certify to the commission that each engineer or
75-14    architect that is a member of its team was selected based on
75-15    demonstrated competence and qualifications.  The commission or its
75-16    representative shall qualify a maximum of five offerors to submit
75-17    additional information and, if the commission or its representative
75-18    chooses, to interview for final selection.
75-19                (3)  In phase two, the commission or its representative
75-20    shall evaluate the information submitted by the offerors on the
75-21    basis of the selection criteria stated in the request for
75-22    qualifications and the results of any interview.  The commission or
75-23    its representative may request additional information regarding
75-24    demonstrated competence and qualifications, considerations of the
75-25    safety and long-term durability of the project, the feasibility of
75-26    implementing the project as proposed, the ability of the offeror to
 76-1    meet schedules, costing methodology, or other factors as
 76-2    appropriate.  The commission or its representative may not require
 76-3    offerors to submit detailed engineering or architectural designs as
 76-4    part of the proposal.  The commission or its representative shall
 76-5    rank each proposal submitted on the basis of the criteria specified
 76-6    in the request for qualifications.  The commission or its
 76-7    representative shall select the design-build firm that submits the
 76-8    proposal offering the best value for the commission or using agency
 76-9    on the basis of the published selection criteria and on its ranking
76-10    evaluations.  The commission or its representative shall first
76-11    attempt to negotiate a contract with the selected offeror.  If the
76-12    commission or its representative is unable to negotiate a
76-13    satisfactory contract with the selected offeror, the commission
76-14    shall, formally and in writing, end all negotiations with that
76-15    offeror and proceed to negotiate with the next offeror in the order
76-16    of the selection ranking until a contract is reached or
76-17    negotiations with all ranked offerors end.
76-18          (g)  Following selection of a design-build firm under
76-19    Subsection (f), that firm's engineers or architects shall complete
76-20    the design, submitting all design elements for review and
76-21    determination of scope compliance by the commission's engineer or
76-22    architect before or concurrently with the beginning of
76-23    construction.
76-24          (h)  An engineer shall have responsibility for compliance
76-25    with the engineering design requirements and all other applicable
76-26    requirements of The Texas Engineering Practice Act (Article 3271a,
 77-1    Vernon's Texas Civil Statutes).  An architect shall have
 77-2    responsibility for compliance with the requirements of Chapter 478,
 77-3    Acts of the 45th Legislature, Regular Session, 1937 (Article 249a,
 77-4    Vernon's Texas Civil Statutes).
 77-5          (i)  The commission shall provide or contract for,
 77-6    independently of the design-build firm, the inspection services,
 77-7    the testing of construction materials engineering, and the
 77-8    verification testing services necessary for acceptance of the
 77-9    facility by the commission.  The commission shall select those
77-10    services for which it contracts in accordance with Section
77-11    2254.004.
77-12          (j)  The design-build firm shall supply a signed and sealed
77-13    set of construction documents for the project to the commission at
77-14    the conclusion of construction.
77-15          (k)  A payment or performance bond is not required for, and
77-16    may not provide coverage for, the portion of a design-build
77-17    contract under this section that includes design services only.  If
77-18    a fixed contract amount or guaranteed maximum price has not been
77-19    determined at the time a design-build contract is awarded, the
77-20    penal sums of the performance and payment bonds delivered to the
77-21    commission shall each be in an amount equal to the project budget,
77-22    as specified in the design criteria package.  The design-build firm
77-23    shall deliver the bonds not later than the 10th day after the date
77-24    the design-build firm executes the contract unless the design-build
77-25    firm furnishes a bid bond or other financial security acceptable to
77-26    the commission to ensure that the design-build firm will furnish
 78-1    the required performance and payment bonds when a guaranteed
 78-2    maximum price is established.
 78-3          SECTION 9.06.  Subchapter F, Chapter 2166, Government Code,
 78-4    is amended by adding Section 2166.2532 to read as follows:
 78-5          Sec. 2166.2532.  CONSTRUCTION MANAGER-AT-RISK METHOD.
 78-6    (a)  The commission may use the construction manager-at-risk method
 78-7    for a project.  In using that method and in entering into a
 78-8    contract for the services of a construction manager-at-risk, the
 78-9    commission shall follow the procedures prescribed by this section.
78-10          (b)  A construction manager-at-risk is a sole proprietorship,
78-11    partnership, corporation, or other legal entity that assumes the
78-12    risk for construction, rehabilitation, alteration, or repair of a
78-13    facility at the contracted price as a general contractor and
78-14    provides consultation to the commission regarding construction
78-15    during and after the design of the facility.
78-16          (c)  Before or concurrently with selecting a construction
78-17    manager-at-risk, the commission shall select or designate an
78-18    engineer or architect who shall prepare the construction documents
78-19    for the project and who has full responsibility for complying with
78-20    The Texas Engineering Practice Act (Article 3271a, Vernon's Texas
78-21    Civil Statutes) or Chapter 478, Acts of the 45th Legislature,
78-22    Regular Session, 1937 (Article 249a, Vernon's Texas Civil
78-23    Statutes), as applicable.  If the engineer or architect is not a
78-24    full-time employee of the commission, the commission shall select
78-25    the engineer or architect on the basis of demonstrated competence
78-26    and qualifications as provided by Section 2254.004.  The
 79-1    commission's engineer or architect for a project may not serve,
 79-2    alone or in combination with another, as the construction
 79-3    manager-at-risk.
 79-4          (d)  The commission shall provide or contract for,
 79-5    independently of the construction manager-at-risk, the inspection
 79-6    services, the testing of construction materials engineering, and
 79-7    the verification testing services necessary for acceptance of the
 79-8    facility by the commission.  The commission shall select those
 79-9    services for which it contracts in accordance with Section
79-10    2254.004.
79-11          (e)  The commission shall select the construction
79-12    manager-at-risk in either a one-step or two-step process.  The
79-13    commission shall prepare a request for proposals, in the case of a
79-14    one-step process, or a request for qualifications, in the case of a
79-15    two-step process, that includes general information on the project
79-16    site, project scope, schedule, selection criteria, estimated
79-17    budget, and the time and place for receipt of proposals or
79-18    qualifications, as applicable; a statement as to whether the
79-19    selection process is a one-step or two-step process; and other
79-20    information that may assist the commission in its selection of a
79-21    construction manager-at-risk.  The commission shall state the
79-22    selection criteria in the request for proposals or qualifications,
79-23    as applicable.  The selection criteria may include the offeror's
79-24    experience, past performance, safety record, proposed personnel and
79-25    methodology, and other appropriate factors that demonstrate the
79-26    capability of the construction manager-at-risk.  If a one-step
 80-1    process is used, the commission may request, as part of the
 80-2    offeror's proposal, proposed fees and prices for fulfilling the
 80-3    general conditions.  If a two-step process is used, the commission
 80-4    may not request fees or prices in step one.  In step two, the
 80-5    commission may request that five or fewer offerors, selected solely
 80-6    on the basis of qualifications, provide additional information,
 80-7    including the construction manager-at-risk's proposed fee and its
 80-8    price for fulfilling the general conditions.
 80-9          (f)  The commission shall publish the request for
80-10    qualifications in a manner prescribed by the commission.
80-11          (g)  At each step, the commission shall receive, publicly
80-12    open, and read aloud the names of the offerors.  At the appropriate
80-13    step, the commission shall also read aloud the fees and prices, if
80-14    any, stated in each proposal as the proposal is opened.  Within 45
80-15    days after the date of opening the proposals, the commission or its
80-16    representative shall evaluate and rank each proposal submitted in
80-17    relation to the criteria set forth in the request for proposals.
80-18          (h)  The commission or its representative shall select the
80-19    offeror that submits the proposal that offers the best value for
80-20    the commission or using agency based on the published selection
80-21    criteria and on its ranking evaluation.  The commission or its
80-22    representative shall first attempt to negotiate a contract with the
80-23    selected offeror.  If the commission or its representative is
80-24    unable to negotiate a satisfactory contract with the selected
80-25    offeror, the commission or its representative shall, formally and
80-26    in writing, end negotiations with that offeror and proceed to
 81-1    negotiate with the next offeror in the order of the selection
 81-2    ranking until a contract is reached or negotiations with all ranked
 81-3    offerors end.
 81-4          (i)  A construction manager-at-risk shall publicly advertise,
 81-5    in the manner prescribed by the commission, and receive bids or
 81-6    proposals from trade contractors or subcontractors for the
 81-7    performance of all major elements of the work other than the minor
 81-8    work that may be included in the general conditions.  A
 81-9    construction manager-at-risk may seek to perform portions of the
81-10    work itself if the construction manager-at-risk submits its bid or
81-11    proposal for those portions of the work in the same manner as all
81-12    other trade contractors or subcontractors and if the commission
81-13    determines that the construction manager-at-risk's bid or proposal
81-14    provides the best value for the commission or using agency.
81-15          (j)  The construction manager-at-risk and the commission or
81-16    its representative shall review all trade contractor or
81-17    subcontractor bids or proposals in a manner that does not disclose
81-18    the contents of the bid or proposal during the selection process to
81-19    a person not employed by the construction manager-at-risk,
81-20    engineer, architect, or commission.  All bids or proposals shall be
81-21    made public after the award of the contract or within seven days
81-22    after the date of final selection of bids and proposals, whichever
81-23    is later.
81-24          (k)  If the construction manager-at-risk reviews, evaluates,
81-25    and recommends to the commission a bid or proposal from a trade
81-26    contractor or subcontractor but the commission requires another bid
 82-1    or proposal to be accepted, the commission shall compensate the
 82-2    construction manager-at-risk by a change in price, time, or
 82-3    guaranteed maximum cost for any additional cost and risk that the
 82-4    construction manager-at-risk may incur because of the commission's
 82-5    requirement that another bid or proposal be accepted.
 82-6          (l)  If a selected trade contractor or subcontractor defaults
 82-7    in the performance of its work or fails to execute a subcontract
 82-8    after being selected in accordance with this section, the
 82-9    construction manager-at-risk may, without advertising, itself
82-10    fulfill the contract requirements or select a replacement trade
82-11    contractor or subcontractor to fulfill the contract requirements.
82-12          (m)  If a fixed contract amount or guaranteed maximum price
82-13    has not been determined at the time the contract is awarded, the
82-14    penal sums of the performance and payment bonds delivered to the
82-15    commission must each be in an amount equal to the project budget,
82-16    as set forth in the request for qualifications.  The construction
82-17    manager-at-risk shall deliver the bonds not later than the 10th day
82-18    after the date the construction manager-at-risk executes the
82-19    contract unless the construction manager-at-risk furnishes a bid
82-20    bond or other financial security acceptable to the commission to
82-21    ensure that the construction manager-at-risk will furnish the
82-22    required performance and payment bonds when a guaranteed maximum
82-23    price is established.
82-24          SECTION 9.07.  Subchapter F, Chapter 2166, Government Code,
82-25    is amended by adding Section 2166.2533 to read as follows:
82-26          Sec. 2166.2533.  COMPETITIVE SEALED PROPOSAL METHOD.
 83-1    (a)  The commission may select a contractor for a project using the
 83-2    competitive sealed proposal method prescribed by this section.
 83-3          (b)  The commission shall select or designate an engineer or
 83-4    architect to prepare construction documents for the project.  The
 83-5    selected or designated engineer or architect has full
 83-6    responsibility for complying with The Texas Engineering Practice
 83-7    Act (Article 3271a, Vernon's Texas Civil Statutes) or Chapter 478,
 83-8    Acts of the 45th Legislature, Regular Session, 1937 (Article 249a,
 83-9    Vernon's Texas Civil Statutes), as applicable.  If the engineer or
83-10    architect is not a full-time employee of the commission, the
83-11    commission shall select the engineer or architect on the basis of
83-12    demonstrated competence and qualifications as provided by Section
83-13    2254.004.
83-14          (c)  The commission shall provide or contract for,
83-15    independently of the contractor, the inspection services, the
83-16    testing of construction materials engineering, and the verification
83-17    testing services necessary for acceptance of the facility by the
83-18    commission.  The commission shall select those services for which
83-19    it contracts in accordance with Section 2254.004 and shall identify
83-20    them in the request for proposals.
83-21          (d)  The commission shall prepare a request for competitive
83-22    sealed proposals that includes construction documents, selection
83-23    criteria, estimated budget, project scope, schedule, and other
83-24    information that contractors may require to respond to the request.
83-25    The commission shall state in the request for proposals all of the
83-26    selection criteria that will be used in selecting the successful
 84-1    offeror.
 84-2          (e)  The commission shall publish notice of the request for
 84-3    proposals in a manner prescribed by the commission.
 84-4          (f)  The commission shall receive, publicly open, and read
 84-5    aloud the names of the offerors and, if any are required to be
 84-6    stated, all prices stated in each proposal.  Within 45 days after
 84-7    the date of opening the proposals, the commission shall evaluate
 84-8    and rank each proposal submitted in relation to the published
 84-9    selection criteria.
84-10          (g)  The commission shall select the offeror that offers the
84-11    best value for the commission or using agency based on the
84-12    published selection criteria and on its ranking evaluation.  The
84-13    commission shall first attempt to negotiate a contract with the
84-14    selected offeror.  The commission and its engineer or architect may
84-15    discuss with the selected offeror options for a scope or time
84-16    modification and any price change associated with the modification.
84-17    If the commission is unable to reach a contract with the selected
84-18    offeror, the commission shall, formally and in writing, end
84-19    negotiations with that offeror and proceed to the next offeror in
84-20    the order of the selection ranking until a contract is reached or
84-21    all proposals are rejected.
84-22          (h)  In determining the best value for the commission or
84-23    using agency, the commission is not restricted to considering price
84-24    alone but may consider any other factor stated in the selection
84-25    criteria.
84-26          SECTION 9.08.  Section 2166.255, Government Code, is amended
 85-1    to read as follows:
 85-2          Sec. 2166.255.  AMOUNT [AWARD] OF CONTRACT.  [(a)  A contract
 85-3    shall be awarded to the qualified bidder making the lowest and best
 85-4    bid in accordance with the law on awarding a state contract.]
 85-5          [(b)  The commission may reject all bids.]
 85-6          [(c)]  A contract may not be awarded for an amount greater
 85-7    than the amount that the comptroller certifies to be available for
 85-8    the project.
 85-9          SECTION 9.09.  Section 2166.258, Government Code, is amended
85-10    by amending Subsection (b) and adding Subsection (c) to read as
85-11    follows:
85-12          (b)  Except as provided by Subsection (c), notwithstanding
85-13    [Notwithstanding] Section 1, Chapter 87, Acts of the 56th
85-14    Legislature, Regular Session, 1959 (Article 7.19-1, Vernon's Texas
85-15    Insurance Code), the commission or other agency may require a
85-16    contractor or subcontractor to meet part or all of the bonding or
85-17    insurance requirements for the project under the arrangement
85-18    negotiated by the commission or other agency.
85-19          (c)  To assist historically underutilized businesses, small
85-20    businesses, or any other businesses, if an agency by rule requires
85-21    a proposal guaranty as a condition for bidding on a contract, the
85-22    guaranty may be in the form of a:
85-23                (1)  cashier's check or money order drawn on an account
85-24    with a financial entity determined by the agency;
85-25                (2)  bid bond issued by a surety authorized to do
85-26    business in this state; or
 86-1                (3)  any other method approved by the agency.
 86-2          SECTION 9.10.  (a)  The changes in law made by this Act to
 86-3    the General Services Commission's contract procedures apply only to
 86-4    a construction project for which the General Services Commission or
 86-5    the Texas Building and Procurement Commission first advertises or
 86-6    otherwise solicits bids, proposals, offers, or qualifications, as
 86-7    applicable, on or after September 1, 2001.
 86-8          (b)  A construction project for which the General Services
 86-9    Commission first advertised or otherwise solicited bids, proposals,
86-10    offers, or qualifications, as applicable, before September 1, 2001,
86-11    is governed by the law as it existed immediately before the
86-12    effective date of this Act, and that law is continued in effect for
86-13    that purpose.
86-14                ARTICLE 10.  LEASING OF STATE OFFICE SPACE
86-15          SECTION 10.01.  Subchapter A, Chapter 2167, Government Code,
86-16    is amended by adding Section 2167.0021 to read as follows:
86-17          Sec. 2167.0021.  BEST VALUE STANDARD FOR LEASE OF SPACE.
86-18    (a)  The commission shall lease space for the use of a state agency
86-19    on the basis of obtaining the best value for the state.
86-20          (b)  The commission shall adopt rules establishing guidelines
86-21    for the determination of best value in a lease contract.  In
86-22    determining the best value, the commission may consider:
86-23                (1)  the cost of the lease contract;
86-24                (2)  the condition and location of lease space;
86-25                (3)  utility costs;
86-26                (4)  access to public transportation;
 87-1                (5)  parking availability;
 87-2                (6)  security;
 87-3                (7)  telephone service availability;
 87-4                (8)  indicators of probable lessor performance under
 87-5    the contract, such as the lessor's financial resources and the
 87-6    lessor's experience;
 87-7                (9)  compliance with the architectural barriers law,
 87-8    Article 9102, Revised Statutes; and
 87-9                (10)  other relevant factors.
87-10          (c)  This section does not prohibit the commission from
87-11    leasing space from the offeror that offers the space at the lowest
87-12    cost if the commission determines that doing so obtains the best
87-13    value for the state.
87-14          SECTION 10.02.  Section 2167.003, Government Code, is amended
87-15    to read as follows:
87-16          Sec. 2167.003.  FIRST CONSIDERATION TO HISTORIC STRUCTURE.
87-17    (a)  In leasing space for the use of a state agency, the commission
87-18    or the private brokerage or real estate firm assisting the
87-19    commission shall give first consideration to a building that is
87-20    designated as a historic structure under Section 442.001 or to a
87-21    building that has been designated a landmark by a local governing
87-22    authority, if:
87-23                (1)  the building meets requirements and
87-24    specifications; and
87-25                (2)  the cost is not substantially higher than the cost
87-26    for other available buildings that meet requirements and
 88-1    specifications.
 88-2          (b)  When it considers leasing space for a state agency, the
 88-3    commission or the private brokerage or real estate firm assisting
 88-4    the commission shall notify each individual and organization that
 88-5    is:
 88-6                (1)  on a list furnished to the commission by the Texas
 88-7    Historical Commission under Section 442.005; and
 88-8                (2)  in the county in which the commission is
 88-9    considering leasing space.
88-10          (c)  At the end of a biennium, the commission shall report to
88-11    the legislature the commission's reasons for rejecting during the
88-12    biennium the lease of any historic structure that was offered as
88-13    [in a bid to] lease space to the state.
88-14          SECTION 10.03.  Section 2167.005, Government Code, is amended
88-15    to read as follows:
88-16          Sec. 2167.005.  DELEGATION OF AUTHORITY TO STATE AGENCIES
88-17    [INSTITUTIONS OF HIGHER EDUCATION].  (a)  The commission may
88-18    delegate to a state agency, including an institution of higher
88-19    education, the authority to enter into lease contracts for space
88-20    [for which payments are not made from money appropriated from the
88-21    general revenue fund].
88-22          (b)  Any reports on the lease contracts made [by an
88-23    institution of higher education] under this delegated authority
88-24    shall be required annually.
88-25          SECTION 10.04.  Subsection (b), Section 2167.006, Government
88-26    Code, is amended to read as follows:
 89-1          (b)  A state agency, including an [An] institution of higher
 89-2    education, may not enter a lease contract under Section 2167.005
 89-3    unless the agency [institution] complies with the architectural
 89-4    barriers law, Article 9102, Revised Statutes.
 89-5          SECTION 10.05.  Section 2167.052, Government Code, is amended
 89-6    by amending Subsection (a) and adding Subsection (c) to read as
 89-7    follows:
 89-8          (a)  Space may be leased from a private source through:
 89-9                (1)  competitive bidding; [or]
89-10                (2)  competitive sealed proposals under Section
89-11    2167.054; or
89-12                (3)  direct negotiation.
89-13          (c)  The commission shall use the method for leasing space
89-14    that provides the best value for the state.
89-15          SECTION 10.06.  Subsections (a) and (c), Section 2167.053,
89-16    Government Code, are amended to read as follows:
89-17          (a)  When space is leased through competitive bidding, the
89-18    commission shall determine the [lowest and best] bid that provides
89-19    the best value for the state after considering moving costs, the
89-20    cost of time lost in moving, the cost of telecommunications
89-21    services, and other relevant factors.
89-22          (c)  If, after review of the bids and evaluation of all
89-23    relevant factors, the leasing state agency's opinion is that the
89-24    bid selected by the commission is not the [lowest and best] bid
89-25    that provides the best value for the state, it may file with the
89-26    commission a written recommendation that the award be made to a
 90-1    bidder other than the commission's recommended bidder.  The leasing
 90-2    state agency's recommendation must contain the agency's
 90-3    justification for its recommendation and a complete explanation of
 90-4    all factors it considered.
 90-5          SECTION 10.07.  Subsections (a), (g), and (i), Section
 90-6    2167.054, Government Code, are amended to read as follows:
 90-7          (a)  The commission may lease space using competitive sealed
 90-8    proposals [if the commission first determines that competitive
 90-9    bidding is not practical or is disadvantageous to the state].
90-10          (g)  The commission shall make a written award of a lease to
90-11    the offeror whose proposal provides the best value for [is the most
90-12    advantageous to] the state, considering price and the evaluation
90-13    factors in the request for proposals.  [The commission may not use
90-14    other factors or criteria in its evaluation.]  The commission shall
90-15    state in writing in the contract file the reasons for which an
90-16    award is made.
90-17          (i)  If the competitive sealed proposal procedure for leasing
90-18    space is used by a state agency [an institution of higher
90-19    education] that has been delegated leasing authority under Section
90-20    2167.005, the agency [institution:]
90-21                [(1)  must first determine that competitive bidding is
90-22    not practical or is disadvantageous to the state; and]
90-23                [(2)]  shall follow the procedures outlined by this
90-24    section and any rules adopted by the commission.
90-25          SECTION 10.08.  Subchapter B, Chapter 2167, Government Code,
90-26    is amended by adding Section 2167.0541 to read as follows:
 91-1          Sec. 2167.0541.  USE OF PRIVATE FIRMS TO OBTAIN SPACE.
 91-2    (a)  The commission may contract with one or more private brokerage
 91-3    or real estate firms to assist the commission in obtaining lease
 91-4    space for state agencies on behalf of the commission under this
 91-5    chapter.
 91-6          (b)  A private brokerage or real estate firm with which the
 91-7    commission contracts under Subsection (a) may assist the commission
 91-8    in leasing facilities under this chapter.
 91-9          SECTION 10.09.  Subsection (b), Section 2167.055, Government
91-10    Code, is amended to read as follows:
91-11          (b)  A [The] lease contract entered into under Section
91-12    2167.053 or 2167.054 must reflect the provisions contained in the
91-13    invitation for bids or request for proposals, the successful bid or
91-14    proposal, and the award of the contract.
91-15          SECTION 10.10.  Subchapter C, Chapter 2167, Government Code,
91-16    is amended by adding Sections 2167.105, 2167.106, and 2167.107 to
91-17    read as follows:
91-18          Sec. 2167.105.  REPORT ON NONCOMPLIANCE.  If the commission
91-19    determines that a state agency has not complied with the
91-20    commission's rules or with other state law related to leasing
91-21    requirements, the commission shall report the noncompliance to the
91-22    members of the state agency's governing body and to the governor,
91-23    lieutenant governor, and speaker of the house of representatives.
91-24    The commission shall include in its report an estimate of the
91-25    fiscal impact resulting from the noncompliance.
91-26          Sec. 2167.106.  ANNUAL REPORT.  The staff of the commission
 92-1    shall annually submit a report to the commission regarding
 92-2    opportunities for delegating leasing authority to state agencies
 92-3    with statewide operations.  The report must include comments from
 92-4    state agencies with statewide operations.
 92-5          Sec. 2167.107.  WAREHOUSE SPACE USE STUDY.  (a)  The
 92-6    commission shall evaluate the operation of the first four
 92-7    state-leased warehouses in Austin for which the leases expire after
 92-8    October 1, 2001.  The commission shall work with the state agency
 92-9    that operates the warehouse to reduce inefficient warehouse space
92-10    use and adopt practices that can reduce the agency's need for
92-11    warehouse space and eliminate warehouse leases.
92-12          (b)  The commission and the state agency shall:
92-13                (1)  identify excess inventory;
92-14                (2)  determine the most appropriate ways to eliminate
92-15    excess inventory; and
92-16                (3)  determine the extent to which the state agency
92-17    uses the following management principles in operating the
92-18    warehouse:
92-19                      (A)  automated order processing;
92-20                      (B)  training customers how to use the supply
92-21    system;
92-22                      (C)  changing relationships with suppliers to
92-23    reduce inventory maintained by the state agency;
92-24                      (D)  establishing supplier support agreements to
92-25    reduce the time for delivery from a supplier;
92-26                      (E)  training supply staff to use information to
 93-1    manage supplies; and
 93-2                      (F)  reducing administrative cycle times through
 93-3    automation.
 93-4          (c)  The commission shall assist the state agency operating
 93-5    the warehouse in developing a plan to reduce the need for warehouse
 93-6    space by reducing inventory, selling surplus property, and
 93-7    efficiently managing warehouse operations.  Each agency shall
 93-8    include the plan as part of its strategic plan submitted under
 93-9    Chapter 2056 during calendar year 2002.
93-10          (d)  This section expires September 1, 2003.
93-11          SECTION 10.11.  A lease contract entered into by the General
93-12    Services Commission before September 1, 2001, under Chapter 2167,
93-13    Government Code, is governed during the remaining term of the lease
93-14    by Chapter 2167, Government Code, as it existed immediately before
93-15    September 1, 2001, and the prior law is continued in effect for
93-16    this purpose.  Chapter 2167, Government Code, as amended by this
93-17    Act, applies to the renewal of a lease described by this section.
93-18                       ARTICLE 11.  SURPLUS PROPERTY
93-19          SECTION 11.01.  Subdivision (1), Section 2175.001, Government
93-20    Code, is amended to read as follows:
93-21                (1)  "Assistance organization" means:
93-22                      (A)  a nonprofit organization that provides
93-23    educational, health, or human services or assistance to homeless
93-24    individuals;
93-25                      (B)  a nonprofit food bank that solicits,
93-26    warehouses, and redistributes edible but unmarketable food to an
 94-1    agency that feeds needy families and individuals;
 94-2                      (C)  Texas Partners of the Americas, a registered
 94-3    agency with the Advisory Committee on Voluntary Foreign Aid, with
 94-4    the approval of the Partners of the Alliance office of the Agency
 94-5    for International Development; [and]
 94-6                      (D)  a group, including a faith-based group, that
 94-7    enters into a financial or nonfinancial agreement with a health or
 94-8    human services agency to provide services to that agency's clients;
 94-9                      (E)  a nonprofit organization approved by the
94-10    Supreme Court of Texas that provides free legal services for
94-11    low-income households in civil matters; and
94-12                      (F)  the Texas Boll Weevil Eradication
94-13    Foundation, Inc., or an entity designated by the commissioner of
94-14    agriculture as the foundation's successor entity under Section
94-15    74.1011, Agriculture Code.
94-16          SECTION 11.02.  Section 2175.065, Government Code, is amended
94-17    to read as follows:
94-18          Sec. 2175.065.  DELEGATION OF AUTHORITY TO STATE AGENCY.
94-19    (a)  The commission may authorize a state agency to dispose of
94-20    surplus or salvage property if the agency demonstrates to the
94-21    commission its ability to dispose of the property under Subchapters
94-22    C and E in a manner that results in cost savings to the state,
94-23    under commission rules adopted under this chapter.
94-24          (b)  The commission shall establish by rule the criteria for
94-25    determining that a delegation of authority to a state agency
94-26    results in cost savings to the state.
 95-1          SECTION 11.03.  Subchapters C and D, Chapter 2175, Government
 95-2    Code, are amended to read as follows:
 95-3          SUBCHAPTER C.  DIRECT TRANSFER OR OTHER DISPOSITION OF
 95-4                SURPLUS OR SALVAGE PROPERTY BY STATE AGENCY
 95-5          Sec. 2175.121.  APPLICABILITY.  This subchapter applies only
 95-6    to surplus or salvage property to which Subchapter D does not
 95-7    apply.
 95-8          Sec. 2175.122.  STATE AGENCY NOTICE TO COMMISSION.  A state
 95-9    agency that determines it has surplus or salvage property shall
95-10    inform the commission of the property's kind, number, location,
95-11    condition, original cost or value, and date of acquisition.
95-12          Sec. 2175.123.  DETERMINING METHOD OF DISPOSAL.  (a)  Based
95-13    on the condition of the property, a state agency shall determine
95-14    whether the property is:
95-15                (1)  surplus property that should be offered for
95-16    transfer under Section 2175.125 or sold to the public; or
95-17                (2)  salvage property.
95-18          (b)  The state agency shall inform the commission and the
95-19    comptroller of its determination.
95-20          Sec. 2175.124 [2175.122].  COMMISSION NOTICE TO OTHER
95-21    ENTITIES.  After a determination that [On receiving notice from] a
95-22    state agency [that the agency] has surplus [or salvage] property,
95-23    the commission shall inform other state agencies, political
95-24    subdivisions, and assistance organizations of the comptroller's
95-25    website that lists surplus property that is available for sale [the
95-26    property's kind, number, location, and condition].
 96-1          Sec. 2175.1245.  ADVERTISING ON COMPTROLLER WEBSITE.  Not
 96-2    later than the second day after the date the comptroller receives
 96-3    notice from a state agency that the agency has surplus property,
 96-4    the comptroller shall advertise the property's kind, number,
 96-5    location, and condition on the comptroller's website.
 96-6          Sec. 2175.125 [2175.123].  DIRECT TRANSFER.  During the 10
 96-7    business [30] days after the date the property is posted on the
 96-8    comptroller's website [following dissemination of information under
 96-9    Section 2175.122], a state agency, political subdivision, or
96-10    assistance organization may coordinate directly with the reporting
96-11    state agency for a transfer of the property at a price established
96-12    by the reporting agency.
96-13          Sec. 2175.126 [2175.124].  NOTICE OF TRANSFER TO COMPTROLLER;
96-14    ADJUSTMENT OF APPROPRIATIONS AND PROPERTY ACCOUNTING RECORDS;
96-15    REMOVAL FROM WEBSITE.  (a)  If property is transferred to a state
96-16    agency, the participating agencies shall report the transaction to
96-17    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. 2175.127 [2175.125].  PRIORITY FOR TRANSFER TO STATE
 97-1    AGENCY.  During the 10 business [30] days after the date the
 97-2    property is posted on the comptroller's website [of notice under
 97-3    Section 2175.122], a transfer to a state agency has priority over
 97-4    any other transfer under rules adopted by the commission.
 97-5          Sec. 2175.128 [2175.126].  DISPOSITION OF DATA PROCESSING
 97-6    EQUIPMENT.  (a)  If a disposition of a state agency's surplus or
 97-7    salvage data processing equipment is not made under Section
 97-8    2175.125 or 2175.184 [this subchapter], the state agency shall
 97-9    transfer the equipment to the Texas Department of Criminal Justice.
97-10    The state agency may not collect a fee or other reimbursement from
97-11    the Texas Department of Criminal Justice for the surplus or salvage
97-12    data processing equipment.
97-13          (b)  If a disposition of the surplus or salvage data
97-14    processing equipment of a state eleemosynary institution or an
97-15    institution or agency of higher education is not made under other
97-16    law, the institution or agency shall transfer the equipment to the
97-17    Texas Department of Criminal Justice.  The institution or agency
97-18    may not collect a fee or other reimbursement from the Texas
97-19    Department of Criminal Justice for the surplus or salvage data
97-20    processing equipment.
97-21             [SUBCHAPTER D.  DISPOSITION OF SURPLUS OR SALVAGE
97-22                     PROPERTY BY COMPETITIVE BIDDING]
97-23          Sec. 2175.129 [2175.181].  DISPOSITION BY COMPETITIVE
97-24    BIDDING, [OR] AUCTION, OR DIRECT SALE.  (a)  If a disposition of a
97-25    state agency's surplus [or salvage] property is not made under
97-26    Section 2175.125 [Subchapter C], the commission shall:
 98-1                (1)  sell the property by competitive bid, [or]
 98-2    auction, or direct sale to the public, including a sale using an
 98-3    Internet auction site; or
 98-4                (2)  delegate to the state agency authority to sell the
 98-5    property by competitive bid, auction, or direct sale to the public,
 98-6    including a sale using an Internet auction site [bidding].
 98-7          (b)  The commission or a state agency to which authority is
 98-8    delegated under Subsection (a)(2) or under Section 2175.065 shall
 98-9    determine which method of sale shall be used based on the method
98-10    that is most advantageous to the state under the circumstances.
98-11    The commission shall adopt rules establishing guidelines for making
98-12    that determination.
98-13          (c)  In using an Internet auction site to sell surplus
98-14    property under this section, the commission or state agency shall
98-15    post the property on the site for at least 10 days.
98-16          Sec. 2175.130.  DISPOSITION BY DIRECT SALE TO PUBLIC.
98-17    (a)  If the commission or a state agency to which authority is
98-18    delegated under Section 2175.129(a)(2) or 2175.065 determines that
98-19    selling the property by competitive bid or auction, including a
98-20    sale using an Internet auction site, would not maximize the resale
98-21    value of the property to the state, the commission or agency may
98-22    sell surplus or salvage property directly to the public.
98-23          (b)  The commission, in cooperation with the state agency
98-24    that declared the property as surplus, or a state agency to which
98-25    authority is delegated under Section 2175.129(a)(2) or 2175.065
98-26    shall set a fixed price for the property.
 99-1          Sec. 2175.131 [2175.182].  PURCHASER'S FEE.  (a)  The
 99-2    commission or a state agency disposing of property by a method
 99-3    other than direct transfer under this subchapter shall collect a
 99-4    fee from the purchaser.
 99-5          (b)  The commission or state agency shall set the fee at an
 99-6    amount that is:
 99-7                (1)  sufficient to recover costs associated with the
 99-8    sale; and
 99-9                (2)  at least two percent but not more than 12 percent
99-10    of sale proceeds.
99-11          Sec. 2175.132 [2175.183].  ADVERTISEMENT OF SALE.  If the
99-12    value of an item or a lot of property to be sold is estimated to be
99-13    more than $5,000, the commission or the state agency authorized to
99-14    sell the property shall advertise the sale at least once in at
99-15    least one newspaper of general circulation in the vicinity in which
99-16    the property is located.
99-17          Sec. 2175.133 [2175.184].  REPORTING SALE; PROPERTY
99-18    ACCOUNTING ADJUSTMENT.  (a)  On the sale by the commission of
99-19    surplus or salvage property, the commission shall report the
99-20    property sold and the sale price to the state agency that declared
99-21    the property as surplus or salvage.
99-22          (b)  A state agency for which surplus or salvage property is
99-23    sold or that sells surplus or salvage property under authority of
99-24    the commission shall report the sale and amount of sale proceeds to
99-25    the comptroller.
99-26          (c)  If property reported under this section is on the state
 100-1   property accounting system, the comptroller shall remove the
 100-2   property from the property accounting records.
 100-3         Sec. 2175.134 [2175.185].  PROCEEDS OF SALE.  (a)  Proceeds
 100-4   from the sale of surplus or salvage property, less the cost of
 100-5   advertising the sale, the cost of selling the surplus or salvage
 100-6   property, including the cost of auctioneer services, and the amount
 100-7   of the fee collected under Section 2175.131 [2175.182], shall be
 100-8   deposited to the credit of the appropriate appropriation item of
 100-9   the state agency for which the sale was made.
100-10         (b)  The portion of sale proceeds equal to the cost of
100-11   advertising the sale and the cost of selling the surplus or salvage
100-12   property, including the cost of auctioneer services, shall be
100-13   deposited in the state treasury to the credit of the appropriation
100-14   item of the commission or other state agency from which the costs
100-15   were paid.
100-16         Sec. 2175.135 [2175.186].  PURCHASER'S TITLE.  A purchaser of
100-17   surplus [or salvage] property at a sale conducted under Section
100-18   2175.129 or 2175.130 [this subchapter] obtains good title to the
100-19   property if the purchaser has in good faith complied with:
100-20               (1)  the conditions of the sale; and
100-21               (2)  applicable commission rules.
100-22            SUBCHAPTER D.  DISPOSITION OF SURPLUS OR SALVAGE
100-23                         PROPERTY BY COMMISSION
100-24         Sec. 2175.181.  APPLICABILITY.  (a)  This subchapter applies
100-25   only to surplus and salvage property located in:
100-26               (1)  Travis County;
 101-1               (2)  a county in which federal surplus property is
 101-2   warehoused by the commission under Subchapter G; or
 101-3               (3)  a county for which the commission determines that
 101-4   it is cost-effective to follow the procedures created under this
 101-5   subchapter and informs affected state agencies of that
 101-6   determination.
 101-7         (b)  This subchapter does not apply to a state agency
 101-8   delegated the authority to dispose of surplus or salvage property
 101-9   under Section 2175.065.
101-10         Sec. 2175.1815.  ALTERNATIVE APPLICABILITY.  (a)
101-11   Notwithstanding Section 2175.181, until January 1, 2003, this
101-12   subchapter applies only to a state agency selected by the
101-13   commission to participate in the disposal process created under
101-14   this subchapter.
101-15         (b)  Subchapter C applies to a state agency that is not
101-16   selected by the commission to participate under this subchapter.
101-17         (c)  This section expires January 1, 2003.
101-18         Sec. 2175.182.  STATE AGENCY TRANSFER OF PROPERTY TO
101-19   COMMISSION.  (a)  The commission is responsible for the disposal of
101-20   surplus or salvage property under this subchapter.  The commission
101-21   may take physical possession of the property.  A state agency
101-22   maintains ownership of property throughout the disposal process.
101-23         (b)  Based on the condition of the property, the commission
101-24   shall determine whether the property is:
101-25               (1)  surplus property that should be offered for
101-26   transfer under Section 2175.184 or sold to the public; or
 102-1               (2)  salvage property.
 102-2         (c)  The commission shall inform the comptroller's office of
 102-3   the property's kind, number, location, condition, original cost or
 102-4   value, and date of acquisition.
 102-5         Sec. 2175.1825.  ADVERTISING ON COMPTROLLER WEBSITE.  Not
 102-6   later than the second day after the date the comptroller receives
 102-7   notice from the commission under Section 2175.182(c), the
 102-8   comptroller shall advertise the property's kind, number, location,
 102-9   and condition on the comptroller's website.
102-10         Sec. 2175.183.  COMMISSION NOTICE TO OTHER ENTITIES.  On
102-11   taking responsibility for surplus property under this subchapter,
102-12   the commission shall inform other state agencies, political
102-13   subdivisions, and assistance organizations of the comptroller's
102-14   website that lists surplus property that is available for sale.
102-15         Sec. 2175.184.  DIRECT TRANSFER.  During the 10 business days
102-16   after the date the property is posted on the comptroller's website,
102-17   a state agency, political subdivision, or assistance organization
102-18   may coordinate with the commission for a transfer of the property
102-19   at a price established by the commission in cooperation with the
102-20   transferring agency.  A transfer to a state agency has priority
102-21   over any other transfer during this period.
102-22         Sec. 2175.185.  NOTICE OF TRANSFER TO COMPTROLLER; ADJUSTMENT
102-23   OF APPROPRIATIONS AND PROPERTY ACCOUNTING RECORDS; REMOVAL FROM
102-24   WEBSITE.  (a)  If property is transferred to a state agency under
102-25   Section 2175.184, the participating agencies shall report the
102-26   transaction to the comptroller.
 103-1         (b)  On receiving notice under this section, the comptroller
 103-2   shall, if necessary:
 103-3               (1)  debit and credit the proper appropriations; and
 103-4               (2)  adjust state property accounting records.
 103-5         (c)  Not later than the second day after the date the
 103-6   comptroller receives notice under Subsection (a), the comptroller
 103-7   shall remove the property from the list of surplus property for
 103-8   sale on the comptroller's website.
 103-9         Sec. 2175.186.  DISPOSITION BY COMPETITIVE BIDDING, AUCTION,
103-10   OR DIRECT SALE.  (a)  If a disposition of a state agency's surplus
103-11   property is not made under Section 2175.184, the commission shall
103-12   sell the property by competitive bid, auction, or direct sale to
103-13   the public, including a sale using an Internet auction site.
103-14         (b)  The commission shall determine which method of sale
103-15   shall be used based on the method that is most advantageous to the
103-16   state under the circumstances.  The commission shall adopt rules
103-17   establishing guidelines for making that determination.
103-18         (c)  In using an Internet auction site to sell surplus
103-19   property under this section, the commission shall post the property
103-20   on the site for at least 10 days.
103-21         Sec. 2175.187.  DISPOSITION BY DIRECT SALE TO PUBLIC.
103-22   (a)  If the commission determines that selling the property by
103-23   competitive bid or auction, including a sale using an Internet
103-24   auction site, would not maximize the resale value of the property
103-25   to the state, the commission may sell surplus property directly to
103-26   the public.
 104-1         (b)  The commission shall set a fixed price for the property
 104-2   in cooperation with the state agency that owns the property.
 104-3         Sec. 2175.188.  PURCHASER'S FEE.  (a)  For property that is
 104-4   sold under Section 2175.186 or 2175.187, the commission shall
 104-5   collect a fee from the purchaser.
 104-6         (b)  The commission shall set the fee at an amount that is:
 104-7               (1)  sufficient to recover costs associated with the
 104-8   sale; and
 104-9               (2)  at least two percent but not more than 12 percent
104-10   of sale proceeds.
104-11         Sec. 2175.189.  ADVERTISEMENT OF SALE.  If the value of an
104-12   item or a lot of property to be sold is estimated to be more than
104-13   $5,000, the commission shall advertise the sale at least once in at
104-14   least one newspaper of general circulation in the vicinity in which
104-15   the property is located.
104-16         Sec. 2175.190.  REPORTING SALE; PROPERTY ACCOUNTING
104-17   ADJUSTMENT.  (a)  On the sale by the commission of surplus or
104-18   salvage property, the commission shall report the property sold and
104-19   the sale price to the state agency that owned the property and to
104-20   the comptroller.
104-21         (b)  If property reported under this section is on the state
104-22   property accounting system, the comptroller shall remove the
104-23   property from the property accounting records.
104-24         Sec. 2175.191.  PROCEEDS OF SALE.  (a)  Proceeds from the
104-25   sale of surplus or salvage property, less the cost of advertising
104-26   the sale, the cost of selling the surplus or salvage property,
 105-1   including the cost of auctioneer services, and the amount of the
 105-2   fee collected under Section 2175.188, shall be deposited to the
 105-3   credit of the appropriate appropriation item of the state agency
 105-4   for which the sale was made.
 105-5         (b)  The portion of sale proceeds equal to the cost of
 105-6   advertising the sale and the cost of selling the surplus or salvage
 105-7   property, including the cost of auctioneer services, if any, shall
 105-8   be deposited in the state treasury to the credit of the
 105-9   appropriation item of the commission.
105-10         Sec. 2175.192.  PURCHASER'S TITLE.  A purchaser of surplus
105-11   property at a sale conducted under Section 2175.186 or 2175.187
105-12   obtains good title to the property if the purchaser has in good
105-13   faith complied with:
105-14               (1)  the conditions of the sale; and
105-15               (2)  applicable commission rules.
105-16         Sec. 2175.193.  CONTRACTS FOR DESTRUCTION OF PROPERTY.  The
105-17   commission shall contract for the disposal of property under
105-18   Subchapter E in a manner that maximizes value to the state.
105-19         SECTION 11.04.  This article takes effect January 1, 2002.
105-20                  ARTICLE 12.  PAPER RECYCLING PROGRAM
105-21         SECTION 12.01.  Section 2175.902, Government Code, is amended
105-22   to read as follows:
105-23         Sec. 2175.902.  MANDATORY PAPER RECYCLING PROGRAM.  (a)  The
105-24   commission shall establish a mandatory recycling program for a
105-25   state agency that occupies a building [and maintain in each
105-26   building] under its control [procedures for collecting separately
 106-1   from other wastes all paper for recycling disposed of in that
 106-2   building]. By rule, the commission shall:
 106-3               (1)  establish guidelines and procedures for collecting
 106-4   and recycling of paper;
 106-5               (2)  set recycling goals and performance measures;
 106-6               (3)  require state agencies to designate a recycling
 106-7   coordinator;
 106-8               (4)  provide employee and custodial education and
 106-9   training;
106-10               (5)  provide feedback and recognition to state agencies
106-11   when appropriate; and
106-12               (6)  inform state agencies when proper recycling
106-13   methods are not used.
106-14         (b)  If the commission finds that a state agency's recycling
106-15   program meets or exceeds the standards created under Subsection
106-16   (a), the [The] commission may delegate its responsibility under
106-17   this section [subsection] to a state agency located in a [each]
106-18   building under its control.
106-19         (c) [(b)]  The commission or a state agency with delegated
106-20   responsibility under Subsection (b) [(a)] shall sell the paper for
106-21   recycling to the highest bidder.
106-22         (d)  The commission may enter into an interagency agreement
106-23   to provide recycling services to a state agency otherwise excluded
106-24   from the program.
 107-1           ARTICLE 13.  HISTORICALLY UNDERUTILIZED BUSINESSES
 107-2         SECTION 13.01.  Section 2161.061, Government Code, is amended
 107-3   to read as follows:
 107-4         Sec. 2161.061.  COMMISSION CERTIFICATION OF HISTORICALLY
 107-5   UNDERUTILIZED BUSINESSES[; MUNICIPAL CERTIFICATION].  (a)  The
 107-6   commission shall certify historically underutilized businesses.
 107-7         (b)  As one of its certification procedures, the commission
 107-8   may:
 107-9               (1)  approve the certification program of one or more
107-10   local governments or nonprofit organizations in this state that
107-11   certify historically underutilized businesses, minority business
107-12   enterprises, women's business enterprises, or disadvantaged
107-13   business enterprises under substantially the same definition, to
107-14   the extent applicable, used by Section 2161.001, if the local
107-15   government or nonprofit organization meets or exceeds the standards
107-16   established by the commission; and
107-17               (2)  certify a business that is certified by a [under
107-18   the] local government or by a nonprofit organization [program] as a
107-19   historically underutilized business under this chapter.
107-20         (c)  To maximize the number of certified historically
107-21   underutilized businesses, the commission shall enter into
107-22   agreements with local governments in this state that conduct
107-23   certification programs described by Subsection (b) and with
107-24   nonprofit organizations.  The commission may terminate an agreement
107-25   if a local government or nonprofit organization fails to meet the
107-26   standards established by the commission for certifying historically
 108-1   underutilized businesses.  The agreements must take effect
 108-2   immediately and:
 108-3               (1)  allow for automatic certification of businesses
 108-4   certified by [under] the local government or nonprofit organization
 108-5   [program];
 108-6               (2)  provide for the efficient updating of the
 108-7   commission database containing information about historically
 108-8   underutilized businesses and potential historically underutilized
 108-9   businesses; and
108-10               (3)  provide for a method by which the commission may
108-11   efficiently communicate with businesses certified by [under] the
108-12   local government or nonprofit organization [program] and provide
108-13   those businesses with information about the state historically
108-14   underutilized business program.
108-15         (d)  A local government or a nonprofit organization that
108-16   certifies historically underutilized businesses, minority business
108-17   enterprises, women's business enterprises, or disadvantaged
108-18   business enterprises as described in Subsections (b) and (c) shall
108-19   complete the certification of an applicant or provide an applicant
108-20   with written justification of its certification denial within the
108-21   period established by the commission in its rules for certification
108-22   activities.
108-23         SECTION 13.02.  Subsection (a), Section 2161.253, Government
108-24   Code, is amended to read as follows:
108-25         (a)  When a state agency requires a historically
108-26   underutilized business subcontracting plan under Section 2161.252,
 109-1   the awarded contract shall contain, as a provision of the contract
 109-2   that must be fulfilled, the plan that the contractor submitted in
 109-3   its bid, proposal, offer, or other applicable expression of
 109-4   interest for the contract.  The contractor shall make good faith
 109-5   efforts to implement the plan.  A contractor's participation in a
 109-6   mentor-protege program under Section 2161.065 and submission of a
 109-7   protege as a subcontractor in the contractor's historically
 109-8   underutilized business subcontracting plan constitutes a good faith
 109-9   effort under this section for the particular area of the
109-10   subcontracting plan involving the protege.
109-11                  ARTICLE 14.  MISCELLANEOUS PROVISIONS
109-12         SECTION 14.01.  Section 2054.022, Government Code, is amended
109-13   to read as follows:
109-14         Sec. 2054.022.  CONFLICT OF INTEREST.  (a)  A member of the
109-15   board or the executive director [an employee of the department] may
109-16   not:
109-17               (1)  be a person required to register as a lobbyist
109-18   under Chapter 305 because of the person's activities for
109-19   compensation on behalf of a business entity that has, or on behalf
109-20   of a trade association of business entities that have, a
109-21   substantial interest in the information resources technologies
109-22   industry;
109-23               (2)  be an officer, employee, or paid consultant of a
109-24   business entity that has, or of a trade association of business
109-25   entities that have, a substantial interest in the information
109-26   resources technologies industry and that may contract with state
 110-1   government;
 110-2               (3)  own, control, or have, directly or indirectly,
 110-3   more than a 10 percent interest in a business entity that has a
 110-4   substantial interest in the information resources technologies
 110-5   industry and that may contract with state government;
 110-6               (4)  receive more than 25 percent of the individual's
 110-7   income from a business entity that has a substantial interest in
 110-8   the information resources technologies industry and that may
 110-9   contract with state government;
110-10               (5)  be interested in or connected with a contract or
110-11   bid for furnishing a state agency with information resources
110-12   technologies;
110-13               (6)  be employed by a state agency as a consultant on
110-14   information resources technologies; or
110-15               (7)  accept or receive money or another thing of value
110-16   from an individual, firm, or corporation to whom a contract may be
110-17   awarded, directly or indirectly, by rebate, gift, or otherwise.
110-18         (b)  A person who is the spouse of an officer, employee, or
110-19   paid consultant of a business entity that has, or of a trade
110-20   association of business entities that have, a substantial interest
110-21   in the information resources technologies industry and that may
110-22   contract with state government may not be[:]
110-23               [(1)]  a member of the board or the executive
110-24   director[; or]
110-25               [(2)  an employee of the department who:]
110-26                     [(A)  is exempt from the state's position
 111-1   classification plan; or]
 111-2                     [(B)  is compensated at or above the amount
 111-3   prescribed by the General Appropriations Act for step 1, salary
 111-4   group 17, of the position classification salary schedule].
 111-5         (c)  An employee of the department, other than the executive
 111-6   director:
 111-7               (1)  may not participate in the department's bidding
 111-8   process, including the proposal development related to a contract
 111-9   and the negotiation of a contract, if:
111-10                     (A)  the employee receives more than five percent
111-11   of the employee's income from any likely bidder on the contract; or
111-12                     (B)  the employee's spouse is employed by any
111-13   likely bidder on the contract; and
111-14               (2)  may not:
111-15                     (A)  be a person required to register as a
111-16   lobbyist under Chapter 305 because of the person's activities for
111-17   compensation on behalf of a business entity that has, or on behalf
111-18   of a trade association of business entities that have, a
111-19   substantial interest in the information resources technologies
111-20   industry; or
111-21                     (B)  be employed by a state agency as a
111-22   consultant on information resources technologies.
111-23         (d)  For the purposes of this section, a trade association is
111-24   a nonprofit, cooperative, and voluntarily joined association of
111-25   business or professional competitors in this state designed to
111-26   assist its members and its industry or profession in dealing with
 112-1   mutual business or professional problems and in promoting their
 112-2   common interest.
 112-3         (e) [(d)]  The executive director shall dismiss an employee
 112-4   of the department who violates a prohibition under Subsection (c)
 112-5   [(a)], and the board shall remove the executive director if the
 112-6   executive director violates a prohibition under Subsection (a).
 112-7         SECTION 14.02.  Section 552.010, Government Code, is amended
 112-8   to read as follows:
 112-9         Sec. 552.010.  STATE GOVERNMENTAL BODIES:  FISCAL AND OTHER
112-10   INFORMATION RELATING TO MAKING INFORMATION ACCESSIBLE.  (a)  Each
112-11   state governmental body shall report to the Texas Building and
112-12   Procurement Commission [Legislative Budget Board] the information
112-13   the commission [board] requires regarding:
112-14               (1)  the number and nature of requests for information
112-15   the state governmental body processes under this chapter in the
112-16   period covered by the report; and
112-17               (2)  the cost to the state governmental body in that
112-18   period in terms of capital expenditures and personnel time of:
112-19                     (A)  responding to requests for information under
112-20   this chapter; and
112-21                     (B)  making information available to the public
112-22   by means of the Internet or another electronic format.
112-23         (b)  The Texas Building and Procurement Commission
112-24   [Legislative Budget Board] shall design and phase in the reporting
112-25   requirements in a way that:
112-26               (1)  minimizes the reporting burden on state
 113-1   governmental bodies; and
 113-2               (2)  allows the legislature and state governmental
 113-3   bodies to estimate the extent to which it is cost-effective for
 113-4   state government, and if possible the extent to which it is
 113-5   cost-effective or useful for members of the public, to make
 113-6   information available to the public by means of the Internet or
 113-7   another electronic format as a supplement or alternative to
 113-8   publicizing the information only in other ways or making the
 113-9   information available only in response to requests made under this
113-10   chapter.
113-11         (c)  The open records steering committee and the state
113-12   auditor, at the request of the Texas Building and Procurement
113-13   Commission [Legislative Budget Board], shall assist the commission
113-14   [board] in designing its reporting requirements under this section.
113-15   The commission [board] shall share the information reported under
113-16   this section with the open records steering committee.
113-17         SECTION 14.03.  Subchapter H, Chapter 2155, Government Code,
113-18   is amended by adding Section 2155.449 to read as follows:
113-19         Sec. 2155.449.  PREFERENCE TO PRODUCTS AND SERVICES FROM
113-20   ECONOMICALLY DEPRESSED OR BLIGHTED AREA.  (a)  In this section,
113-21   "economically depressed or blighted area" means an area that:
113-22               (1)  is an economically depressed or blighted area as
113-23   defined by Section 2306.004; or
113-24               (2)  meets the definition of a historically
113-25   underutilized business zone as defined by 15 U.S.C. Section 632(p).
113-26         (b)  The commission and all state agencies procuring goods or
 114-1   services shall give preference to goods or services produced in an
 114-2   economically depressed or blighted area if:
 114-3               (1)  the goods or services meet state specifications
 114-4   regarding quantity and quality; and
 114-5               (2)  the cost of the good or service does not exceed
 114-6   the cost of other similar products or services that are not
 114-7   produced in an economically depressed or blighted area.
 114-8         SECTION 14.04.  Subdivision (1), Section 2258.001, Government
 114-9   Code, is amended to read as follows:
114-10               (1)  "Locality in which the work is performed" means:
114-11                     (A)  for a contract for a public work awarded by
114-12   the state, the political subdivision of the state in which the
114-13   public work is located:
114-14                           (i)  [,] which may include a county,
114-15   municipality, county and municipality, or district, except as
114-16   provided by Subparagraph (ii); and
114-17                           (ii)  which, in a municipality with a
114-18   population of 500,000 or more, may only include the geographic
114-19   limits of the municipality; or
114-20                     (B)  for a contract for a public work awarded by
114-21   a political subdivision of the state, the geographical limits of
114-22   the political subdivision.
114-23         SECTION 14.05.  Section 2258.022, Government Code, is amended
114-24   to read as follows:
114-25         Sec. 2258.022.  DETERMINATION OF PREVAILING WAGE RATES.
114-26   (a)  For a contract for a public work awarded by a political
 115-1   subdivision of the state, the [A] public body shall determine the
 115-2   general prevailing rate of per diem wages in the locality in which
 115-3   the public work is to be performed for each craft or type of worker
 115-4   needed to execute the contract and the prevailing rate for legal
 115-5   holiday and overtime work by:
 115-6               (1)  conducting a survey of the wages received by
 115-7   classes of workers employed on projects of a character similar to
 115-8   the contract work in the political subdivision of the state in
 115-9   which the public work is to be performed; or
115-10               (2)  using the prevailing wage rate as determined by
115-11   the United States Department of Labor in accordance with the
115-12   Davis-Bacon Act (40 U.S.C. Section 276a et seq.), and its
115-13   subsequent amendments, if the survey used to determine that rate
115-14   was conducted within a three-year period preceding the date the
115-15   public body calls for bids for the public work.
115-16         (b)  This subsection applies only to a public work located in
115-17   a county bordering the United Mexican States or in a county
115-18   adjacent to a county bordering the United Mexican States.  For a
115-19   contract for a public work awarded by the state, the public body
115-20   shall determine the general prevailing rate of per diem wages in
115-21   the locality in which the public work is to be performed for each
115-22   craft or type of worker needed to execute the contract and the
115-23   prevailing rate for legal holiday and overtime work as follows.
115-24   The public body shall conduct a survey of the wages received by
115-25   classes of workers employed on projects of a character similar to
115-26   the contract work both statewide and in the political subdivision
 116-1   of the state in which the public work is to be performed.  The
 116-2   public body shall also consider the prevailing wage rate as
 116-3   determined by the United States Department of Labor in accordance
 116-4   with the Davis-Bacon Act (40 U.S.C. Section 276a et seq.), and its
 116-5   subsequent amendments, but only if the survey used to determine
 116-6   that rate was conducted within a three-year period preceding the
 116-7   date the public body calls for bids for the public work.  The
 116-8   public body shall determine the general prevailing rate of per diem
 116-9   wages in the locality based on the higher of:
116-10               (1)  the rate determined from the survey conducted in
116-11   the political subdivision;
116-12               (2)  the arithmetic mean between the rate determined
116-13   from the survey conducted in the political subdivision and the rate
116-14   determined from the statewide survey; and
116-15               (3)  if applicable, the arithmetic mean between the
116-16   rate determined from the survey conducted in the political
116-17   subdivision and the rate determined by the United States Department
116-18   of Labor.
116-19         (c)  The public body shall determine the general prevailing
116-20   rate of per diem wages as a sum certain, expressed in dollars and
116-21   cents.
116-22         (d) [(c)]  A public body shall specify in the call for bids
116-23   for the contract and in the contract itself the wage rates
116-24   determined under this section.
116-25         (e) [(d)]  The public body's determination of the general
116-26   prevailing rate of per diem wages is final.
 117-1         SECTION 14.06.  The changes made to Sections 2258.001 and
 117-2   2258.022, Government Code, by this Act apply only to determining
 117-3   the general prevailing rate of per diem wages in connection with a
 117-4   contract for constructing a public work awarded by the state if the
 117-5   state first requests bids or proposals for its contract on or after
 117-6   the effective date of this Act.
 117-7         SECTION 14.07.  Section 2260.002, Government Code, is amended
 117-8   to read as follows:
 117-9         Sec. 2260.002.  Applicability.  This chapter does not apply
117-10   to:
117-11               (1)  a claim for personal injury or wrongful death
117-12   arising from the breach of a contract; or
117-13               (2)  a contract executed or awarded on or before August
117-14   30, 1999.
117-15         SECTION 14.08.  Subsection (a), Section 2260.003, Government
117-16   Code, is amended to read as follows:
117-17         (a)  The total amount of money recoverable on a claim for
117-18   breach of contract under this chapter may not, after deducting the
117-19   amount specified in Subsection (b), exceed an amount equal to the
117-20   sum of:
117-21               (1)  the balance due and owing on the contract price;
117-22   and
117-23               (2)  the amount or fair market value of orders or
117-24   requests[, including orders] for additional work made by a unit of
117-25   state government to the extent that the orders or requests for
117-26   additional work were actually performed.
 118-1         SECTION 14.09.  Section 2260.005, Government Code, is amended
 118-2   to read as follows:
 118-3         Sec. 2260.005.  Exclusive Procedure.  Subject to Section
 118-4   2260.007, the [The] procedures contained in this chapter are
 118-5   exclusive and required prerequisites to suit in accordance with
 118-6   Chapter 107, Civil Practice and Remedies Code.
 118-7         SECTION 14.10.  Subchapter A, Chapter 2260, Government Code,
 118-8   is amended by adding Section 2260.007 to read as follows:
 118-9         Sec. 2260.007.  LEGISLATIVE PERMISSION TO SUE.  (a)
118-10   Notwithstanding Section 2260.005, the legislature retains the
118-11   authority to deny or grant a waiver of immunity to suit against a
118-12   unit of state government by statute, resolution, or any other means
118-13   the legislature may determine appropriate.
118-14         (b)  This chapter does not and may not be interpreted to:
118-15               (1)  divest the legislature of the authority to grant
118-16   permission to sue a unit of state government on the terms,
118-17   conditions, and procedures that the legislature may specify in the
118-18   measure granting the permission;
118-19               (2)  require that the legislature, in granting or
118-20   denying permission to sue a unit of state government, comply with
118-21   this chapter; or
118-22               (3)  limit in any way the effect of a legislative grant
118-23   of permission to sue a unit of state government unless the grant
118-24   itself provides that this chapter may have that effect.
118-25         SECTION 14.11.  (a)  Except for Section 2260.002(2),
118-26   Government Code, as amended by this Act, which applies according to
 119-1   its own terms, the changes made to Sections 2260.002, 2260.003, and
 119-2   2260.005, Government Code, as amended by this Act, and Section
 119-3   2260.007, Government Code, as added by this Act, apply only to a
 119-4   contract executed on or after the effective date of this Act.  A
 119-5   contract executed before the effective date of this Act is governed
 119-6   by the law applicable to the contract immediately before the
 119-7   effective date of this Act, and that law is continued in effect for
 119-8   that purpose.
 119-9         (b)  Notwithstanding Subsection (a) of this section, a waiver
119-10   of sovereign immunity to suit granted by a concurrent resolution
119-11   passed by the 77th Legislature that applies to a contract entered
119-12   into before the effective date of this Act shall be effective
119-13   according to its terms.
119-14         SECTION 14.12.  Subsection (f), Section 2165.005, Government
119-15   Code, is amended to read as follows:
119-16         (f)  A building that [which] will be used as a state or
119-17   regional headquarters for a state agency, other than a university
119-18   building, a secure correctional facility operated by the Texas
119-19   Youth Commission, or a prison, may bear the name of a person only
119-20   if the person is deceased and was significant in the state's
119-21   history.
119-22         SECTION 14.13.  The Texas Building and Procurement Commission
119-23   shall rename the Jefferson County State School for the Honorable Al
119-24   Price.
119-25         SECTION 14.14.  None of the changes in law made by this Act
119-26   are intended to weaken provisions of law favorable to small
 120-1   businesses or historically underutilized businesses.  None of the
 120-2   changes in law made by this Act may be construed in such a way as
 120-3   to weaken provisions of law favorable to small businesses or
 120-4   historically underutilized businesses.
 120-5         SECTION 14.15.  The maximum annual salary of the executive
 120-6   director of the State Preservation Board during the state fiscal
 120-7   biennium beginning September 1, 2001, is equal to the maximum
 120-8   annual salary set for the executive director of the General
 120-9   Services Commission prescribed by the General Appropriations Act
120-10   for the biennium.
120-11         SECTION 14.16.  Subsection (b), Section 2155.074, Government
120-12   Code, is amended to read as follows:
120-13         (b)  In determining the best value for the state, the
120-14   purchase price and whether the goods or services meet
120-15   specifications are the most important considerations.  However, the
120-16   commission or other state agency may, subject to Subsection (c) and
120-17   Section 2155.075, consider other relevant factors, including:
120-18               (1)  installation costs;
120-19               (2)  life cycle costs;
120-20               (3)  the quality and reliability of the goods and
120-21   services;
120-22               (4)  the delivery terms;
120-23               (5)  indicators of probable vendor performance under
120-24   the contract such as past vendor performance, the vendor's
120-25   financial resources and ability to perform, the vendor's experience
120-26   or demonstrated capability and responsibility, and the vendor's
 121-1   ability to provide reliable maintenance agreements and support;
 121-2               (6)  the cost of any employee training associated with
 121-3   a purchase;
 121-4               (7)  the effect of a purchase on agency productivity;
 121-5   [and]
 121-6               (8)  the vendor's anticipated economic impact to the
 121-7   state or a subdivision of the state, including potential tax
 121-8   revenue and employment; and
 121-9               (9)  other factors relevant to determining the best
121-10   value for the state in the context of a particular purchase.
121-11         SECTION 14.17.  Subchapter Z, Chapter 2252, Government Code,
121-12   is amended by adding Section 2252.902 to read as follows:
121-13         Sec. 2252.902.  INDEMNITY PROVISIONS IN CONSTRUCTION
121-14   CONTRACTS.  (a)  In this section, "construction contract" means a
121-15   contract or agreement made and entered into by a state governmental
121-16   entity, contractor, construction manager, subcontractor, supplier,
121-17   or equipment lessor, concerning the construction, alteration, or
121-18   repair, of a state public building or carrying out or completing
121-19   any state public work.
121-20         (b)  Except as proved by Subsection (c), a covenant, promise,
121-21   or agreement contained in a construction contract, or in an
121-22   agreement collateral to or affecting a construction contract, is
121-23   void and unenforceable to the extent that it indemnifies a person
121-24   against all or any portion of loss or liability for damage that:
121-25               (1)  is caused by or results from the sole, joint, or
121-26   concurrent negligence of the indemnitee, its agent, employee, or
 122-1   another independent contractor directly responsible to the
 122-2   indemnitee; and
 122-3               (2)  arises from:
 122-4                     (A)  personal injury or death;
 122-5                     (B)  property damage;
 122-6                     (C)  a fine, penalty, administrative action, or
 122-7   other action assessed by a governmental entity directly against the
 122-8   indemnitee, its agent or employee, or an independent contractor
 122-9   directly responsible to the indemnitee; or
122-10                     (D)  any other loss, damage, or expense that
122-11   arises from an occurrence described by Paragraphs (A), (B), or (C).
122-12         (c)  A covenant, promise, or agreement, contained in a
122-13   construction contract, or in an agreement collateral to or
122-14   affecting a construction contract, may provide for a person to
122-15   indemnify, hold harmless, or defend another person against loss or
122-16   liability for damage that is caused by or results from the sole,
122-17   joint, or concurrent negligence of the indemnitee or its agent or
122-18   employee and arises from the bodily injury or death of an employee
122-19   of:
122-20               (1)  the indemnitor;
122-21               (2)  the indemnitor's subcontractor, supplier, or
122-22   equipment lessor;
122-23               (3)  any lower-tier subcontractor, supplier, or
122-24   equipment lessor of the indemnitor's subcontractor; or
122-25               (4)  any independent contractor directly responsible to
122-26   a person described in Subdivisions (1)-(3).
 123-1         (d)  This chapter does not affect the validity and
 123-2   enforceability of:
 123-3               (1)  an insurance contract;
 123-4               (2)  benefits and protections under the workers'
 123-5   compensation laws of this state; or
 123-6               (3)  any statutory right of contribution.
 123-7         (e)  This section may not be waived by contract or otherwise.
 123-8                       ARTICLE 15.  EFFECTIVE DATE
 123-9         SECTION 15.01.  Except as otherwise provided by this Act,
123-10   this Act takes effect September 1, 2001.
                                                                S.B. No. 311
            _______________________________     _______________________________
                President of the Senate              Speaker of the House
                  I hereby certify that S.B. No. 311 passed the Senate on
            April 24, 2001, by a viva-voce vote; May 25, 2001, Senate refused
            to concur in House amendments and requested appointment of
            Conference Committee; May 25, 2001, House granted request of the
            Senate; May 27, 2001, Senate adopted Conference Committee Report by
            a viva-voce vote.
                                                _______________________________
                                                    Secretary of the Senate
                  I hereby certify that S.B. No. 311 passed the House, with
            amendments, on May 23, 2001, by a non-record vote; May 25, 2001,
            House granted request of the Senate for appointment of Conference
            Committee; May 27, 2001, House adopted Conference Committee Report
            by a non-record vote.
                                                _______________________________
                                                    Chief Clerk of the House
            Approved:
            _______________________________
                         Date
            _______________________________
                       Governor