77R16132 MTB-D                          
         By Zaffirini                                           S.B. No. 311
         Substitute the following for S.B. No. 311:
         By Wolens                                          C.S.S.B. No. 311
                                A BILL TO BE ENTITLED
 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 Procurement
 1-4     Commission, the Department of Information Resources, and a newly
 1-5     created Texas Building Commission; and to the operations of certain
 1-6     other state agencies having functions transferred from or
 1-7     associated with the commission, including the telecommunications
 1-8     planning and oversight council, the attorney general, and the State
 1-9     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. Subchapter A, Chapter 552, Government Code, is
1-14     amended by adding Section 552.0095 to read as follows:
1-15           Sec. 552.0095.  TRANSFER OF POWERS AND DUTIES TO ATTORNEY
1-16     GENERAL. The powers and duties of the General Services Commission
1-17     under this chapter are transferred to the Texas Procurement
1-18     Commission.
1-19           SECTION 1.02. Section 1232.003(4), Government Code, is
1-20     amended to read as follows:
1-21                 (4)  "Commission" means the Texas Building [General
1-22     Services] Commission.
1-23           SECTION 1.03. Section 2151.002(1), Government Code, is
1-24     amended to read as follows:
 2-1                 (1)  "Commission" means the Texas Building [General
 2-2     Services] Commission, the Department of Information Resources, or
 2-3     the Texas Procurement Commission, as appropriate.
 2-4           SECTION 1.04. Section 2151.003, Government Code, is amended
 2-5     to read as follows:
 2-6           Sec. 2151.003.  REFERENCE. A statutory reference to the State
 2-7     Board of Control or the State Purchasing and General Services
 2-8     Commission means the Texas Building [General Services] Commission,
 2-9     the Department of Information Resources, or the Texas Procurement
2-10     Commission, as appropriate.
2-11           SECTION 1.05. Chapter 2151, Government Code, is amended by
2-12     adding Sections 2151.004, 2151.005, and 2151.006 to read as
2-13     follows:
2-14           Sec. 2151.004.  TRANSFER OF POWERS AND DUTIES TO TEXAS
2-15     BUILDING COMMISSION. (a)  The powers and duties of the General
2-16     Services Commission under Chapters 2165-2167, Chapter 2176, or
2-17     other law relating to state buildings, grounds, or property or
2-18     related services, other than powers and duties relating to the
2-19     purchase of goods or to the disposition of surplus or salvage
2-20     property, are transferred to the Texas Building Commission.
2-21           (b)  A reference in law to the General Services Commission
2-22     that relates to the powers and duties of the General Services
2-23     Commission under Chapters 2165-2167, Chapter 2176, or other law
2-24     relating to state buildings, grounds, or property or related
2-25     services, other than powers and duties relating to the purchase of
2-26     goods or to the disposition of surplus or salvage property, is a
2-27     reference to the Texas Building Commission.
 3-1           Sec. 2151.005.  TRANSFER OF POWERS AND DUTIES TO TEXAS
 3-2     PROCUREMENT COMMISSION. (a)  The powers and duties of the General
 3-3     Services Commission under Chapter 552 or under Chapters 2155-2158,
 3-4     2161, 2171, 2172, 2175, and 2177, or other law relating to the
 3-5     purchase of goods or services for the state or to the disposition
 3-6     of surplus or salvage property or to other miscellaneous powers and
 3-7     duties, other than services relating to the construction, repair,
 3-8     acquisition, maintenance, or charge and control of real property,
 3-9     are transferred to the Texas Procurement Commission.
3-10           (b)  A reference in law to the General Services Commission
3-11     that relates to the powers and duties of the General Services
3-12     Commission under Chapter 552 or under Chapters 2155-2158, 2161,
3-13     2171, 2172, 2175, and 2177, or other law relating to the purchase
3-14     of goods or services for the state or to the disposition of surplus
3-15     or salvage property or to other miscellaneous powers and duties,
3-16     other than services relating to the construction, repair,
3-17     acquisition, maintenance, or charge and control of real property,
3-18     is a reference to the Texas Procurement Commission.
3-19           Sec. 2151.006.  TRANSFER OF POWERS AND DUTIES TO DEPARTMENT
3-20     OF INFORMATION RESOURCES. (a)  The powers and duties of the General
3-21     Services Commission under Chapter 2170 or other law relating to
3-22     providing telecommunications services for state government are
3-23     transferred to the Department of Information Resources.
3-24           (b)  A reference in law to the General Services Commission
3-25     that relates to the powers and duties of the General Services
3-26     Commission under Chapter 2170 or other law relating to providing
3-27     telecommunications services for state government is a reference to
 4-1     the Department of Information Resources.
 4-2           SECTION 1.06. The heading of Chapter 2152, Government Code,
 4-3     is amended to read as follows:
 4-4       CHAPTER 2152.  TEXAS PROCUREMENT [GENERAL SERVICES] COMMISSION
 4-5           SECTION 1.07. Subchapter A, Chapter 2152, Government Code, is
 4-6     amended to read as follows:
 4-7                      SUBCHAPTER A.  GENERAL PROVISIONS
 4-8           Sec. 2152.001.  COMMISSION; DEFINITION. (a)  The Texas
 4-9     Procurement [General Services] Commission is an agency of the
4-10     state.
4-11           (b)  In this chapter, "commission" means the Texas
4-12     Procurement Commission.
4-13           Sec. 2152.002.  SUNSET PROVISION. The Texas Procurement
4-14     [General Services] Commission is subject to Chapter 325 (Texas
4-15     Sunset Act). Unless continued in existence as provided by that
4-16     chapter, the commission is abolished and this chapter and Chapters
4-17     2155-2158, 2161, 2171, 2172, 2175, and 2177 expire [subtitle
4-18     expires] September 1, 2013 [2001].
4-19           Sec. 2152.003.  AUTHORITY TO ADOPT RULES. The commission may
4-20     adopt rules to efficiently and effectively accomplish its functions
4-21     [administer this subtitle].
4-22           Sec. 2152.004.  POWERS AND DUTIES. The commission shall
4-23     perform the powers and duties assigned to the commission under
4-24     Chapters 552, 2155-2158, 2161, 2171, 2172, 2175, 2177, or other
4-25     law.
4-26           SECTION 1.08.  Section 2152.051, Government Code, is amended
4-27     to read as follows:
 5-1           Sec. 2152.051.  COMPOSITION OF COMMISSION.  The commission is
 5-2     composed of five [six] representatives of the public appointed by
 5-3     the governor with the advice and consent of the senate.
 5-4           SECTION 1.09.  Subsections (b) and (c), Section 2152.054,
 5-5     Government Code, are amended to read as follows:
 5-6           (b)  An officer, employee, or paid consultant of a Texas
 5-7     trade association of business entities that contracts with the
 5-8     state may not:
 5-9                 (1)  serve as a commission member; or
5-10                 (2)  be employed as a commission employee in a "bona
5-11     fide executive, administrative, or professional capacity," as that
5-12     phrase is used for purposes of establishing an exemption to the
5-13     overtime provisions of the federal Fair Labor Standards Act of 1938
5-14     (29 U.S.C. Section 201 et seq.) and its subsequent amendments [who
5-15     is exempt from the state's position classification plan or is
5-16     compensated at or above the amount prescribed by the General
5-17     Appropriations Act for step 1, salary group 17, of the position
5-18     classification salary schedule].
5-19           (c)  An individual who is the spouse of an officer, manager,
5-20     or paid consultant of a Texas trade association of business
5-21     entities that contracts with the state may not:
5-22                 (1)  serve as a commission member; or
5-23                 (2)  be employed as a commission employee in a "bona
5-24     fide executive, administrative, or professional capacity," as that
5-25     phrase is used for purposes of establishing an exemption to the
5-26     overtime provisions of the federal Fair Labor Standards Act of 1938
5-27     (29 U.S.C. Section 201 et seq.) and its subsequent amendments [who
 6-1     is exempt from the state's position classification plan or is
 6-2     compensated at or above the amount prescribed by the General
 6-3     Appropriations Act for step 1, salary group 17, of the position
 6-4     classification salary schedule].
 6-5           SECTION 1.10.  Subsection (c), Section 2152.056, Government
 6-6     Code, is amended to read as follows:
 6-7           (c)  If the executive director has knowledge that a potential
 6-8     ground for removal exists, the executive director shall notify the
 6-9     presiding officer of the commission of the potential ground.  The
6-10     presiding officer shall then notify the governor and the attorney
6-11     general that a potential ground for removal exists.  If the
6-12     potential ground for removal involves the presiding officer, the
6-13     executive director shall notify the next highest ranking officer of
6-14     the commission, who shall then notify the governor and the attorney
6-15     general that a potential ground for removal exists.
6-16           SECTION 1.11.  Section 2152.057, Government Code, is amended
6-17     to read as follows:
6-18           Sec. 2152.057.  TERMS.  Commission members serve staggered
6-19     six-year terms with one or two members' terms expiring January 31
6-20     of each odd-numbered year.
6-21           SECTION 1.12.  Subsection (c), Section 2152.058, Government
6-22     Code, is amended to read as follows:
6-23           (c)  Three [Four] members of the commission constitute a
6-24     quorum.
6-25           SECTION 1.13.  Subchapter B, Chapter 2152, Government Code,
6-26     is amended by adding Section 2152.0581 to read as follows:
6-27           Sec. 2152.0581.  TRAINING FOR COMMISSION MEMBERS.  (a)  A
 7-1     person who is appointed to and qualifies for office as a member of
 7-2     the commission may not vote, deliberate, or be counted as a member
 7-3     in attendance at a meeting of the commission until the person
 7-4     completes a training program that complies with this section.
 7-5           (b)  The training program must provide the person with
 7-6     information regarding:
 7-7                 (1)  the legislation that created the commission;
 7-8                 (2)  the programs operated by the commission;
 7-9                 (3)  the role and functions of the commission;
7-10                 (4)  the rules of the commission, with an emphasis on
7-11     the rules that relate to disciplinary and investigatory authority;
7-12                 (5)  the current budget for the commission;
7-13                 (6)  the results of the most recent formal audit of the
7-14     commission;
7-15                 (7)  the requirements of:
7-16                       (A)  the open meetings law, Chapter 551;
7-17                       (B)  the public information law, Chapter 552;
7-18                       (C)  the administrative procedure law, Chapter
7-19     2001; and
7-20                       (D)  other laws relating to public officials,
7-21     including conflict-of-interest laws; and
7-22                 (8)  any applicable ethics policies adopted by the
7-23     commission or the Texas Ethics Commission.
7-24           (c)  A person appointed to the commission is entitled to
7-25     reimbursement, as provided by the General Appropriations Act, for
7-26     the travel expenses incurred in attending the training program
7-27     regardless of whether the attendance at the program occurs before
 8-1     or after the person qualifies for office.
 8-2           SECTION 1.14.  Section 2152.060, Government Code, is amended
 8-3     by amending Subsection (b) and adding Subsection (d) to read as
 8-4     follows:
 8-5           (b)  The commission shall maintain a [keep an information]
 8-6     file on [about] each written complaint filed with the commission
 8-7     [that the commission has authority to resolve].  The file must
 8-8     include:
 8-9                 (1)  the name of the person who filed the complaint;
8-10                 (2)  the date the complaint is received by the
8-11     commission;
8-12                 (3)  the subject matter of the complaint;
8-13                 (4)  the name of each person contacted in relation to
8-14     the complaint;
8-15                 (5)  a summary of the results of the review or
8-16     investigation of the complaint; and
8-17                 (6)  an explanation of the reason the file was closed,
8-18     if the commission closed the file without taking action other than
8-19     to investigate the complaint.
8-20           (d)  The commission shall provide to the person filing the
8-21     complaint and to each person who is a subject of the complaint a
8-22     copy of the commission's policies and procedures relating to
8-23     complaint investigation and resolution.
8-24           SECTION 1.15.  Subchapter C, Chapter 2152, Government Code,
8-25     is amended by adding Section 2152.110 to read as follows:
8-26           Sec. 2152.110.  STATE EMPLOYEE INCENTIVE PROGRAM.  The
8-27     executive director or the executive director's designee shall
 9-1     provide to commission employees information and training on the
 9-2     benefits and methods of participation in the state employee
 9-3     incentive program under Subchapter B, Chapter 2108.
 9-4           SECTION 1.16. Subtitle D, Title 10, Government Code, is
 9-5     amended by adding Chapter 2153 to read as follows:
 9-6                  CHAPTER 2153.  TEXAS BUILDING COMMISSION
 9-7           Sec. 2153.001.  DEFINITIONS. In this chapter:
 9-8                 (1)  "Commission" means the Texas Building Commission.
 9-9                 (2)  "Division" means the Texas building division of
9-10     the State Preservation Board.
9-11           Sec. 2153.002.  TEXAS BUILDING DIVISION; ADMINISTRATION. (a)
9-12     A Texas building division is established within the State
9-13     Preservation Board to administer the duties of the Texas Building
9-14     Commission under Chapters 2165-2167, Chapter 2176, or other law
9-15     relating to state buildings, grounds, or property or related
9-16     services.
9-17           (b)  The division is administratively attached to the State
9-18     Preservation Board and the State Preservation Board shall provide
9-19     the facilities for the division, but the division shall be
9-20     independent of the State Preservation Board's direction.
9-21           (c)  The commission is the governing body of the division.
9-22           (d)  The commission shall develop policies and procedures to
9-23     accomplish the division's functions.
9-24           Sec. 2153.003.  SUNSET PROVISION. The Texas Building
9-25     Commission and the Texas building division of the State
9-26     Preservation Board are subject to Chapter 325 (Texas Sunset Act).
9-27     Unless continued in existence as provided by that chapter, the
 10-1    commission is abolished and Chapters 2165-2167 and Chapter 2176
 10-2    expire September 1, 2007.
 10-3          Sec. 2153.004.  AUTHORITY TO ADOPT RULES. The commission may
 10-4    adopt rules to efficiently and effectively accomplish its
 10-5    functions.
 10-6          Sec. 2153.005.  EXECUTIVE DIRECTOR. (a)  The executive
 10-7    director of the State Preservation Board is the executive director
 10-8    of the division.
 10-9          (b)  The executive director of the division performs the
10-10    administrative functions of the commission under the commission's
10-11    supervision and shall report periodically to the commission on
10-12    those functions.
10-13          (c)  The executive director shall provide staff to the
10-14    division and assign duties to the staff to accomplish the
10-15    commission's functions.
10-16          Sec. 2153.006.  COMPOSITION OF COMMISSION. (a)  The
10-17    commission is composed of the governor, the lieutenant governor,
10-18    and one member appointed by the governor from a list of nominees
10-19    submitted by the speaker of the house of representatives.
10-20          (b)  The governor may reject one or more of the nominees on a
10-21    list submitted by the speaker of the house of representatives and
10-22    request a new list of different nominees.
10-23          Sec. 2153.007.  TERMS. The appointed member of the commission
10-24    serves a two-year term expiring February 1 of each odd-numbered
10-25    year.
10-26          Sec. 2153.008.  PRESIDING OFFICER; MEETINGS. (a)  The
10-27    governor is the presiding officer of the commission.
 11-1          (b)  The commission shall meet at the call of the governor.
 11-2          Sec. 2153.009.  CONFLICTS OF INTEREST. (a)  In this section,
 11-3    "Texas trade association" means a cooperative and voluntarily
 11-4    joined association of business or professional competitors in this
 11-5    state designed to assist its members and its industry or profession
 11-6    in dealing with mutual business or professional problems and in
 11-7    promoting their common interest.
 11-8          (b)  A person may not be the appointed member of the
 11-9    commission if:
11-10                (1)  the person is an officer, employee, or paid
11-11    consultant of a Texas trade association in a field related to the
11-12    operation of the commission; or
11-13                (2)  the person's spouse is an officer, manager, or
11-14    paid consultant of a Texas trade association in a field related to
11-15    the operation of the commission.
11-16          (c)  A person may not be the appointed member of the
11-17    commission or act as the general counsel to the commission if the
11-18    person is required to register as a lobbyist under Chapter 305
11-19    because of the person's activities for compensation on behalf of a
11-20    profession related to the operation of the commission.
11-21          Sec. 2153.010.  APPOINTMENTS. Appointments to the commission
11-22    shall be made without regard to the race, color, disability, sex,
11-23    religion, age, or national origin of the appointees.
11-24          Sec. 2153.011.  REMOVAL OF APPOINTED MEMBER. (a)  It is a
11-25    ground for removal from the commission that the appointed member:
11-26                (1)  is ineligible for membership under Section
11-27    2153.009;
 12-1                (2)  cannot, because of illness or disability,
 12-2    discharge the member's duties for a substantial part of the
 12-3    member's term; or
 12-4                (3)  is absent from more than half of the commission's
 12-5    meetings that the member is eligible to attend during a calendar
 12-6    year without an excuse approved by  a majority vote of the
 12-7    commission.
 12-8          (b)  The validity of an action of the commission is not
 12-9    affected by the fact that it is taken when a ground for removal of
12-10    the appointed commission member exists.
12-11          (c)  If the executive director has knowledge that a potential
12-12    ground for removal exists, the executive director shall notify the
12-13    presiding officer of the commission of the potential ground.  The
12-14    presiding officer shall then notify the attorney general that a
12-15    potential ground for removal exists.
12-16          Sec. 2153.012.  INFORMATION ABOUT QUALIFICATIONS AND
12-17    STANDARDS OF CONDUCT. The executive director or the executive
12-18    director's designee shall provide to the appointed member of the
12-19    commission and to agency employees, as often as necessary,
12-20    information regarding the requirements for office or employment
12-21    under this subtitle, including information regarding a person's
12-22    responsibilities under applicable laws relating to standards of
12-23    conduct for state officers or employees.
12-24          Sec. 2153.013. COMPENSATION AND EXPENSES OF COMMISSION
12-25    MEMBERS. (a)  The appointed member of the commission may not
12-26    receive compensation or a benefit because of the member's service
12-27    on the commission except as provided by Subsection (b).
 13-1          (b)  For each day that the appointed commission member
 13-2    engages in the business of the commission, the member is entitled
 13-3    to:
 13-4                (1)  actual expenses for meals and lodging; and
 13-5                (2)  transportation expenses.
 13-6          (c)  Compensation and expenses under Subsection (b) shall be
 13-7    in the amount set by legislative appropriation.
 13-8          SECTION 1.17. Section 2155.001, Government Code, is amended
 13-9    to read as follows:
13-10          Sec. 2155.001.  DEFINITIONS. In [Except as otherwise provided
13-11    by] this chapter and Chapters 2156, 2157, and 2158, except as
13-12    otherwise provided:
13-13                (1)  "Commission" means the Texas Procurement
13-14    Commission.
13-15                (2)  "Goods" means supplies, materials, or equipment.
13-16                (3) [(2)]  "Service" means the furnishing of skilled or
13-17    unskilled labor or professional work, but does not include a:
13-18                      (A)  professional service subject to Subchapter
13-19    A, Chapter 2254;
13-20                      (B)  service of a state agency employee;
13-21                      (C)  consulting service or service of a
13-22    consultant as defined by Subchapter B, Chapter 2254; or
13-23                      (D)  service of a public utility.
13-24          SECTION 1.18. Section 2161.001, Government Code, is amended
13-25    to read as follows:
13-26          Sec. 2161.001.  DEFINITIONS. In this chapter:
13-27                (1)  "Commission" means the Texas Procurement
 14-1    Commission.
 14-2                (2)  "Goods" means supplies, materials, or equipment.
 14-3                (3) [(2)]  "Historically underutilized business" means
 14-4    an entity with its principal place of business in this state that
 14-5    is:
 14-6                      (A)  a corporation formed for the purpose of
 14-7    making a profit in which 51 percent or more of all classes of the
 14-8    shares of stock or other equitable securities are owned by one or
 14-9    more economically disadvantaged persons who have a proportionate
14-10    interest and actively participate in the corporation's control,
14-11    operation, and management;
14-12                      (B)  a sole proprietorship created for the
14-13    purpose of making a profit that is completely owned, operated, and
14-14    controlled by an economically disadvantaged person;
14-15                      (C)  a partnership formed for the purpose of
14-16    making a profit in which 51 percent or more of the assets and
14-17    interest in the partnership are owned by one or more economically
14-18    disadvantaged persons who have a proportionate interest and
14-19    actively participate in the partnership's control, operation, and
14-20    management;
14-21                      (D)  a joint venture in which each entity in the
14-22    venture is a historically underutilized business, as determined
14-23    under another paragraph of this subdivision; or
14-24                      (E)  a supplier contract between a historically
14-25    underutilized business as determined under another paragraph of
14-26    this subdivision and a prime contractor under which the
14-27    historically underutilized business is directly involved in the
 15-1    manufacture or distribution of the goods or otherwise warehouses
 15-2    and ships the goods.
 15-3                (4) [(3)]  "Economically disadvantaged person" means a
 15-4    person who is economically disadvantaged because of the person's
 15-5    identification as a member of a certain group, including Black
 15-6    Americans, Hispanic Americans, women, Asian Pacific Americans, and
 15-7    Native Americans, and who has suffered the effects of
 15-8    discriminatory practices or other similar insidious circumstances
 15-9    over which the person has no control.
15-10          SECTION 1.19. Section 2162.001, Government Code, is amended
15-11    to read as follows:
15-12          Sec. 2162.001.  DEFINITIONS [DEFINITION]. In this chapter:
15-13                (1)  "Commission" means the Texas Procurement
15-14    Commission.
15-15                (2)  "Council"[, "council"] means the State Council on
15-16    Competitive Government.
15-17          SECTION 1.20. Subchapter A, Chapter 2165, Government Code, is
15-18    amended by adding Section 2165.0001 to read as follows:
15-19          Sec. 2165.0001.  DEFINITION. In this chapter, "commission"
15-20    means the Texas Building Commission.
15-21          SECTION 1.21. Section 2166.001, Government Code, is amended
15-22    to read as follows:
15-23          Sec. 2166.001.  DEFINITIONS. In this chapter:
15-24                (1)  "Commission" means the Texas Building Commission.
15-25                (2)  "Construction" includes acquisition and
15-26    reconstruction.
15-27                (3) [(2)]  "Cost of a project" includes the cost of:
 16-1                      (A)  real estate;
 16-2                      (B)  other property;
 16-3                      (C)  rights and easements;
 16-4                      (D)  utility services;
 16-5                      (E)  site development;
 16-6                      (F)  construction and initial furnishing and
 16-7    equipment;
 16-8                      (G)  architectural, engineering, and legal
 16-9    services;
16-10                      (H)  surveys, plans, and specifications; and
16-11                      (I)  other costs, including those incurred by the
16-12    commission, that are necessary or incidental to determining the
16-13    feasibility or practicability of a project.
16-14                (4) [(3)]  "Private design professional" means a design
16-15    professional as described by Subdivisions (7)(A) [(6)(A)] and
16-16    (B)(ii).
16-17                (5) [(4)]  "Project" means a building construction
16-18    project that is financed wholly or partly by a specific
16-19    appropriation, a bond issue, or federal money.  The term includes
16-20    the construction of:
16-21                      (A)  a building, structure, or appurtenant
16-22    facility or utility, including the acquisition and installation of
16-23    original equipment and original furnishings; and
16-24                      (B)  an addition to, or alteration,
16-25    rehabilitation, or repair of, an existing building, structure, or
16-26    appurtenant facility or utility.
16-27                (6) [(5)]  "Project analysis" means work done before
 17-1    the legislative appropriation for a project to develop a reliable
 17-2    estimate of the cost of the project to be used in the
 17-3    appropriations request.
 17-4                (7) [(6)]  "Design professional" means an individual
 17-5    registered as an architect under Chapter 478, Acts of the 45th
 17-6    Legislature, Regular Session, 1937 (Article 249a, Vernon's Texas
 17-7    Civil Statutes), or a person registered as a professional engineer
 17-8    under The Texas Engineering Practice Act (Article 3271a, Vernon's
 17-9    Texas Civil Statutes):
17-10                      (A)  who provides professional architectural or
17-11    engineering services and has overall responsibility for the design
17-12    of a building construction undertaking; and
17-13                      (B)  who:
17-14                            (i)  is employed on a salary basis; or
17-15                            (ii)  is in private practice and is
17-16    retained for a specific project under a contract with the
17-17    commission.
17-18                (8) [(7)]  "Rehabilitation" includes renewal,
17-19    restoration, extension, enlargement, and improvement.
17-20                (9) [(8)]  "Small construction project" means a project
17-21    that:
17-22                      (A)  has an estimated value of less than $25,000;
17-23    and
17-24                      (B)  requires advance preparation of working
17-25    plans or drawings.
17-26                (10) [(9)]  "Staged construction" means the
17-27    construction of a project in phases, with each phase resulting in
 18-1    one or more trade packages, features, buildings, or structures that
 18-2    individually or together may be built, regardless of whether later
 18-3    phases of the project are authorized.
 18-4                (11) [(10)]  "Using agency" means:
 18-5                      (A)  an instrumentality of the state that
 18-6    occupies and uses a state-owned or state-leased building; or
 18-7                      (B)  the commission, with respect to a
 18-8    state-owned building maintained by the commission.
 18-9          SECTION 1.22. Subchapter A, Chapter 2167, Government Code, is
18-10    amended by adding Section 2167.0011 to read as follows:
18-11          Sec. 2167.0011.  DEFINITION. In this chapter, "commission"
18-12    means the Texas Building Commission.
18-13          SECTION 1.23. Subchapter A, Chapter 2171, Government Code, is
18-14    amended by adding Section 2171.0001 to read as follows:
18-15          Sec. 2171.0001.  DEFINITION. In this chapter, "commission"
18-16    means the Texas Procurement Commission.
18-17          SECTION 1.24. Chapter 2172, Government Code, is amended by
18-18    adding Section 2172.0001 to read as follows:
18-19          Sec. 2172.0001.  DEFINITION. In this chapter, "commission"
18-20    means the Texas Procurement Commission.
18-21          SECTION 1.25. Section 2175.001, Government Code, is amended
18-22    to read as follows:
18-23          Sec. 2175.001.  DEFINITIONS. In this chapter:
18-24                (1)  "Assistance organization" means:
18-25                      (A)  a nonprofit organization that provides
18-26    educational, health, or human services or assistance to homeless
18-27    individuals;
 19-1                      (B)  a nonprofit food bank that solicits,
 19-2    warehouses, and redistributes edible but unmarketable food to an
 19-3    agency that feeds needy families and individuals;
 19-4                      (C)  Texas Partners of the Americas, a registered
 19-5    agency with the Advisory Committee on Voluntary Foreign Aid, with
 19-6    the approval of the Partners of the Alliance office of the Agency
 19-7    for International Development; [and]
 19-8                      (D)  a group, including a faith-based group, that
 19-9    enters into a financial or nonfinancial agreement with a health or
19-10    human services agency to provide services to that agency's clients;
19-11                      (E)  a nonprofit organization approved by the
19-12    Supreme Court of Texas that provides free legal services for
19-13    low-income households in civil matters; and
19-14                      (F)  the Texas Boll Weevil Eradication
19-15    Foundation, Inc., or an entity designated by the commissioner of
19-16    agriculture as the foundation's successor entity under Section
19-17    74.1011, Agriculture Code.
19-18                (2)  "Commission" means the Texas Procurement
19-19    Commission.
19-20                (3)  "Personal property" includes:
19-21                      (A)  personal property lawfully confiscated and
19-22    subject to disposal by a state agency; and
19-23                      (B)  personal property affixed to real property,
19-24    if its removal and disposition is for a lawful purpose under this
19-25    or another law.
19-26                (4) [(3)]  "Salvage property" means personal property
19-27    that through use, time, or accident is so damaged, used, or
 20-1    consumed that it has no value for the purpose for which it was
 20-2    originally intended.
 20-3                (5) [(4)]  "Surplus property" means personal property
 20-4    that exceeds a state agency's needs and is not required for the
 20-5    agency's foreseeable needs.  The term includes used or new property
 20-6    that retains some usefulness for the purpose for which it was
 20-7    intended or for another purpose.
 20-8                (6) [(5)]  "Data processing equipment" means equipment
 20-9    described by Section 2054.003(3)(A).
20-10          SECTION 1.26. On October 1, 2001, the General Services
20-11    Commission is abolished.
20-12          SECTION 1.27. On October 1, 2001:
20-13                (1)  the Department of Information Resources replaces
20-14    the General Services Commission as the telecommunications services
20-15    provider for state government;
20-16                (2)  all functions and activities performed by the
20-17    General Services Commission that relate to providing
20-18    telecommunications services for state government or to the
20-19    establishment of the electronic procurement marketplace or the
20-20    electronic commerce network under Chapters 2170 and 2177,
20-21    Government Code, or other law immediately before that date are
20-22    transferred to the Department of Information Resources;
20-23                (3)  all employees of the General Services Commission
20-24    who primarily perform duties related to providing
20-25    telecommunications services for state government or to the
20-26    establishment of the electronic procurement marketplace or the
20-27    electronic commerce network, including employees who provide
 21-1    administrative support for those services, under Chapters 2170 and
 21-2    2177, Government Code, or other law become employees of the
 21-3    Department of Information Resources, but continue to work in the
 21-4    same physical location unless moved in accordance with the plan
 21-5    created under Section 1.30 of this Act;
 21-6                (4)  a rule or form adopted by the General Services
 21-7    Commission that relates to providing telecommunications services
 21-8    for state government or to the establishment of the electronic
 21-9    procurement marketplace or the electronic commerce network under
21-10    Chapters 2170 and 2177, Government Code, or other law is a rule or
21-11    form of the Department of Information Resources and remains in
21-12    effect until changed by the department;
21-13                (5)  a reference in law to the General Services
21-14    Commission that relates to providing telecommunications services
21-15    for state government or to the establishment of the electronic
21-16    procurement marketplace or the electronic commerce network under
21-17    Chapters 2170 and 2177, Government Code, or other law means the
21-18    Department of Information Resources;
21-19                (6)  a waiver in effect that was issued by the General
21-20    Services Commission relating to telecommunications under Chapter
21-21    2170, Government Code, or other law is continued in effect as a
21-22    waiver of the Department of Information Resources;
21-23                (7)  a rate case, contract negotiation, or other
21-24    proceeding involving the General Services Commission that is
21-25    related to providing telecommunications services for state
21-26    government or to the establishment of the electronic procurement
21-27    marketplace or the electronic commerce network under Chapters 2170
 22-1    and 2177, Government Code, or other law is transferred without
 22-2    change in status to the Department of Information Resources, and
 22-3    the Department of Information Resources assumes, without a change
 22-4    in status, the position of the General Services Commission in a
 22-5    negotiation or proceeding relating to telecommunications, the
 22-6    marketplace, or the network to which the General Services
 22-7    Commission is a party;
 22-8                (8)  all money, contracts, leases, rights, and
 22-9    obligations of the General Services Commission related to providing
22-10    telecommunications services for state government or to the
22-11    establishment of the electronic procurement marketplace or the
22-12    electronic commerce network under Chapters 2170 and 2177,
22-13    Government Code, or other law are transferred to the Department of
22-14    Information Resources;
22-15                (9)  all property, including records, in the custody of
22-16    the General Services Commission related to providing
22-17    telecommunications services for state government or to the
22-18    establishment of the electronic procurement marketplace or the
22-19    electronic commerce network under Chapters 2170 and 2177,
22-20    Government Code, or other law becomes the property of the
22-21    Department of Information Resources, but stays in the same physical
22-22    location unless moved in accordance with the plan created under
22-23    Section 1.30 of this Act; and
22-24                (10)  all funds appropriated by the legislature to the
22-25    General Services Commission for purposes related to providing
22-26    telecommunications services for state government or to the
22-27    establishment of the electronic procurement marketplace or the
 23-1    electronic commerce network, including funds for providing
 23-2    administrative support for those services such as funds to pay the
 23-3    salary and benefits of employees who provide the administrative
 23-4    support, under Chapters 2170 and 2177, Government Code, or other
 23-5    law are transferred to the Department of Information Resources.
 23-6          SECTION 1.28. On October 1, 2001:
 23-7                (1)  the Texas Building Commission replaces the General
 23-8    Services Commission as the governmental entity generally
 23-9    responsible for state buildings, grounds, and property, other than
23-10    matters related to the purchase of goods or to the disposition of
23-11    surplus or salvage property, and as the governmental entity
23-12    generally responsible for building construction and acquisition for
23-13    state government;
23-14                (2)  all functions and activities performed by the
23-15    General Services Commission that relate to state buildings,
23-16    grounds, and property, other than matters related to the purchase
23-17    of goods or to the disposition of surplus or salvage property, or
23-18    that relate to building construction and acquisition for state
23-19    government under Chapters 2165-2167 and 2176, Government Code, or
23-20    other law are transferred to the Texas Building Commission;
23-21                (3)  all employees of the General Services Commission
23-22    who primarily perform duties related to state buildings, grounds,
23-23    and property, other than matters related to the purchase of goods
23-24    or to the disposition of surplus or salvage property, or who
23-25    primarily perform duties related to building construction and
23-26    acquisition for state government, including employees who provide
23-27    administrative support for those activities, under Chapters
 24-1    2165-2167 and 2176, Government Code, or other law become employees
 24-2    of the State Preservation Board to be used to administer the
 24-3    functions of the Texas Building Commission, but continue to work in
 24-4    the same physical location unless moved in accordance with the plan
 24-5    created under Section 1.30 of this Act;
 24-6                (4)  a rule, form, plan, report, or procedure adopted
 24-7    by the General Services Commission that relates to state buildings,
 24-8    grounds, and property, other than matters related to the purchase
 24-9    of goods or to the disposition of surplus or salvage property, or
24-10    that relates to building construction and acquisition for state
24-11    government under Chapters 2165-2167 and 2176, Government Code, or
24-12    other law is a rule, form, plan, report, or procedure of the Texas
24-13    Building Commission and remains in effect until changed by the
24-14    Texas Building Commission;
24-15                (5)  a reference in law to the General Services
24-16    Commission that relates to state buildings, grounds, and property,
24-17    other than matters related to the purchase of goods or to the
24-18    disposition of surplus or salvage property, or that relates to
24-19    building construction and acquisition for state government under
24-20    Chapters 2165-2167 and 2176, Government Code, or other law means
24-21    the Texas Building Commission;
24-22                (6)  an easement, franchise, contract, license, or
24-23    right-of-way that was granted or awarded by or to the General
24-24    Services Commission relating to state buildings, grounds, and
24-25    property, other than matters related to the purchase of goods or to
24-26    the disposition of surplus or salvage property, or relating to
24-27    building construction and acquisition for state government under
 25-1    Chapters 2165-2167 and 2176, Government Code, or other law is
 25-2    continued in effect as an easement, franchise, contract, license,
 25-3    or right-of-way granted or awarded by or to the Texas Building
 25-4    Commission;
 25-5                (7)  a contract negotiation or other proceeding
 25-6    involving the General Services Commission that is related to state
 25-7    buildings, grounds, and property, other than matters related to the
 25-8    purchase of goods or to the disposition of surplus or salvage
 25-9    property, or that is related to building construction and
25-10    acquisition for state government under Chapters 2165-2167 and 2176,
25-11    Government Code, or other law is transferred without change in
25-12    status to the Texas Building Commission, and the Texas Building
25-13    Commission assumes, without a change in status, the position of the
25-14    General Services Commission in a negotiation or proceeding relating
25-15    to state buildings, grounds, and property, other than matters
25-16    related to the purchase of goods or to the disposition of surplus
25-17    or salvage property, or relating to building construction and
25-18    acquisition, to which the General Services Commission is a party;
25-19                (8)  all money, contracts, leases, rights, and
25-20    obligations of the General Services Commission related to state
25-21    buildings, grounds, and property, other than matters related to the
25-22    purchase of goods or to the disposition of surplus or salvage
25-23    property, or related to building construction and acquisition for
25-24    state government under Chapters 2165-2167 and 2176, Government
25-25    Code, or other law are transferred to the Texas Building
25-26    Commission;
25-27                (9)  all property, including records, in the custody of
 26-1    the General Services Commission related to state buildings,
 26-2    grounds, and property, other than matters related to the purchase
 26-3    of goods or to the disposition of surplus or salvage property, or
 26-4    related to building construction and acquisition for state
 26-5    government under Chapters 2165-2167 and 2176, Government Code, or
 26-6    other law becomes property of the State Preservation Board to be
 26-7    used to administer the functions of the Texas Building Commission,
 26-8    but stays in the same physical location unless moved in accordance
 26-9    with the plan created under Section 1.30 of this Act; and
26-10                (10)  all funds appropriated by the legislature to the
26-11    General Services Commission for purposes related to state
26-12    buildings, grounds, and property, other than matters related to the
26-13    purchase of goods or to the disposition of surplus or salvage
26-14    property, or related to building construction and acquisition for
26-15    state government, including funds for providing administrative
26-16    support for those activities such as funds to pay the salary and
26-17    benefits of employees who provide the administrative support, under
26-18    Chapters 2165-2167 and 2176, Government Code, or other law are
26-19    transferred to the State Preservation Board to be used to
26-20    administer the functions of the Texas Building Commission.
26-21          SECTION 1.29. (a)  On October 1, 2001:
26-22                (1)  the Texas Procurement Commission replaces the
26-23    General Services Commission as the governmental entity responsible
26-24    for the purchase of goods or services for the state, other than
26-25    services relating to the construction, repair, acquisition,
26-26    maintenance, or charge and control of real property, for the
26-27    disposition of surplus or salvage property, and for other
 27-1    miscellaneous powers and duties;
 27-2                (2)  all functions and activities performed by the
 27-3    General Services Commission that relate to the purchase of goods or
 27-4    services for the state, other than services relating to the
 27-5    construction, repair, acquisition, maintenance, or charge and
 27-6    control of real property, to the disposition of surplus or salvage
 27-7    property, or to other miscellaneous powers and duties under
 27-8    Chapters 552, 2155-2158, 2161, 2171, 2172, 2175, and 2177,
 27-9    Government Code, or other law are transferred to the Texas
27-10    Procurement Commission;
27-11                (3)  all employees of the General Services Commission
27-12    who primarily perform duties related to the purchase of goods or
27-13    services for the state, other than services relating to the
27-14    construction, repair, acquisition, maintenance, or charge and
27-15    control of real property, to the disposition of surplus or salvage
27-16    property, or to other miscellaneous powers and duties under
27-17    Chapters 552, 2155-2158, 2161, 2171, 2172, 2175, and 2177,
27-18    Government Code, or other law become employees of the Texas
27-19    Procurement Commission, but continue to work in the same physical
27-20    location unless moved in accordance with the plan created under
27-21    Section 1.30 of this Act;
27-22                (4)  a rule, form, plan, specification, standard,
27-23    report, or procedure adopted by the General Services Commission
27-24    that relates to the purchase of goods or services for the state,
27-25    other than services relating to the construction, repair,
27-26    acquisition, maintenance, or charge and control of real property,
27-27    to the disposition of surplus or salvage property, or to other
 28-1    miscellaneous powers and duties under Chapters 552, 2155-2158,
 28-2    2161, 2171, 2172, 2175, and 2177, Government Code, or other law is
 28-3    a rule, form, plan, specification, standard, report, or procedure
 28-4    of the Texas Procurement Commission and remains in effect until
 28-5    changed by the commission;
 28-6                (5)  a reference in law to the General Services
 28-7    Commission that relates to the purchase of goods or services for
 28-8    the state, other than services relating to the construction,
 28-9    repair, acquisition, maintenance, or charge and control of real
28-10    property, to the disposition of surplus or salvage property, or to
28-11    other miscellaneous powers and duties under Chapters 552,
28-12    2155-2158, 2161, 2171, 2172, 2175, and 2177, Government Code, or
28-13    other law means the Texas Procurement Commission;
28-14                (6)  a waiver, license, or contract award that was
28-15    granted by the General Services Commission relating to the purchase
28-16    of goods or services for the state, other than services relating to
28-17    the construction, repair, acquisition, maintenance, or charge and
28-18    control of real property, to the disposition of surplus or salvage
28-19    property, or to other miscellaneous powers and duties under
28-20    Chapters 552, 2155-2158, 2161, 2171, 2172, 2175, and 2177,
28-21    Government Code, or other law is continued in effect as a waiver,
28-22    license, or contract award granted by the Texas Procurement
28-23    Commission;
28-24                (7)  a contract negotiation or other proceeding
28-25    involving the General Services Commission that is related to the
28-26    purchase of goods or services for the state, other than services
28-27    relating to the construction, repair, acquisition, maintenance, or
 29-1    charge and control of real property, to the disposition of surplus
 29-2    or salvage property, or to other miscellaneous powers and duties
 29-3    under Chapters 552, 2155-2158, 2161, 2171, 2172, 2175, and 2177,
 29-4    Government Code, or other law is transferred without change in
 29-5    status to the Texas Procurement Commission, and the commission
 29-6    assumes, without a change in status, the position of the General
 29-7    Services Commission in a negotiation or proceeding relating to the
 29-8    purchase of goods or services for the state, other than services
 29-9    relating to the construction, repair, acquisition, maintenance, or
29-10    charge and control of real property, to the disposition of surplus
29-11    or salvage property, or to other miscellaneous powers and duties to
29-12    which the General Services Commission is a party;
29-13                (8)  all money, contracts, leases, rights, and
29-14    obligations of the General Services Commission related to the
29-15    purchase of goods or services for the state, other than services
29-16    relating to the construction, repair, acquisition, maintenance, or
29-17    charge and control of real property, to the disposition of surplus
29-18    or salvage property, or to other miscellaneous powers and duties
29-19    under Chapters 552, 2155-2158, 2161, 2171, 2172, 2175, and 2177,
29-20    Government Code, or other law are transferred to the Texas
29-21    Procurement Commission;
29-22                (9)  all property, including records, in the custody of
29-23    the General Services Commission related to the purchase of goods or
29-24    services for the state, other than services relating to the
29-25    construction, repair, acquisition, maintenance, or charge and
29-26    control of real property, to the disposition of surplus or salvage
29-27    property, or to other miscellaneous powers and duties under
 30-1    Chapters 552, 2155-2158, 2161, 2171, 2172, 2175, and 2177,
 30-2    Government Code, or other law becomes property of the Texas
 30-3    Procurement Commission, but stays in the same physical location
 30-4    unless moved in accordance with the plan created under Section 1.30
 30-5    of this Act; and
 30-6                (10)  all funds appropriated by the legislature to the
 30-7    General Services Commission for purposes related to the purchase of
 30-8    goods or services for the state, other than services relating to
 30-9    the construction, repair, acquisition, maintenance, or charge and
30-10    control of real property, to the disposition of surplus or salvage
30-11    property, or to other miscellaneous powers and duties under
30-12    Chapters 552, 2155-2158, 2161, 2171, 2172, 2175, and 2177,
30-13    Government Code, or other law are transferred to the Texas
30-14    Procurement Commission.
30-15          (b)  The Texas Procurement Commission shall also perform the
30-16    functions assigned to the General Services Commission under Chapter
30-17    428, Acts of the 73rd Legislature, Regular Session, 1993.
30-18          SECTION 1.30. The General Services Commission, the Texas
30-19    Procurement Commission, the Texas Building Commission, and the
30-20    Department of Information Resources shall establish a transition
30-21    plan for the transfer described in Sections 1.27, 1.28, and 1.29 of
30-22    this Act.  The plan must include:
30-23                (1)  a timetable for any necessary or advisable
30-24    movement of the physical location of employees and property;
30-25                (2)  an inventory of all equipment and other property
30-26    required to be transferred;
30-27                (3)  a determination of any continued support and
 31-1    cooperation the commission must provide the other agencies before
 31-2    the commission is abolished to ensure an efficient continuation of
 31-3    service and of planning for future needs; and
 31-4                (4)  provisions for the immediate access of the
 31-5    Department of Information Resources to facilities that house
 31-6    telecommunications equipment and any related facilities.
 31-7          SECTION 1.31. (a)  Before December 31, 2001, the Texas
 31-8    Procurement Commission, the Texas Building Commission, and the
 31-9    Department of Information Resources shall adopt by rule a
31-10    memorandum of understanding under which the agencies clarify, to
31-11    the extent necessary, the transfer of powers and duties under this
31-12    Act.  The memorandum of understanding shall be sent to the
31-13    governor, the lieutenant governor, and the speaker of the house of
31-14    representatives.
31-15          (b)  If the Texas Procurement Commission, the Texas Building
31-16    Commission, and the Department of Information Resources do not
31-17    agree regarding to which entity a power or duty has been
31-18    transferred by this Act, the governor shall determine whether the
31-19    power or duty is transferred to the Texas Procurement Commission,
31-20    the Texas Building Commission, or the Department of Information
31-21    Resources.
31-22          SECTION 1.32. (a)  The governor shall make appointments to
31-23    the Texas Procurement Commission in accordance with Section
31-24    2152.051, Government Code, as amended by this Act, as soon as
31-25    possible after September 1, 2001, so that the procurement
31-26    commission may begin performing its duties on the abolition of the
31-27    General Services Commission on October 1, 2001.
 32-1          (b)  The Texas Procurement Commission shall hold its first
 32-2    meeting as soon as possible on or after October 1, 2001.  The
 32-3    governor may designate a person to perform the necessary duties
 32-4    involved in posting notice and making other preparations for the
 32-5    meeting.
 32-6          (c)  In making appointments under this section the governor
 32-7    shall appoint:
 32-8                (1)  one member for a term expiring January 31, 2003;
 32-9                (2)  two members for terms expiring January 31, 2005;
32-10    and
32-11                (3)  two members for terms expiring January 31, 2007.
32-12          (d)  Section 2152.0581, Government Code, as added by this
32-13    Act, does not apply to the members of the Texas Procurement
32-14    Commission until June 1, 2002.
32-15          SECTION 1.33. The governor shall make the appointment to the
32-16    Texas Building Commission in accordance with Section 2153.006,
32-17    Government Code, as added by this Act, as soon as possible after
32-18    September 1, 2001.  The term of the initial appointee expires
32-19    February 1, 2003.
32-20         ARTICLE 2.  MULTIPLE AWARD CONTRACTS FOR STATE AND LOCAL
32-21                           GOVERNMENT PURCHASES
32-22          SECTION 2.01. Chapter 2155, Government Code, is amended by
32-23    adding Subchapter I to read as follows:
32-24              SUBCHAPTER I.  MULTIPLE AWARD CONTRACT SCHEDULE
32-25          Sec. 2155.501.  DEFINITIONS. In this subchapter:
32-26                (1)  "Department" means the Department of Information
32-27    Resources.
 33-1                (2)  "Local government" has the meaning assigned by
 33-2    Section 271.101, Local Government Code.
 33-3                (3)  "Multiple award contract" means an award of a
 33-4    contract for an indefinite amount of one or more similar goods or
 33-5    services from a vendor.
 33-6                (4)  "Schedule" means a list of multiple award
 33-7    contracts from which agencies may purchase goods and services.
 33-8          Sec. 2155.502.  DEVELOPMENT OF MULTIPLE AWARD CONTRACT
 33-9    SCHEDULE.  (a)  The commission shall develop a schedule of multiple
33-10    award contracts that have been previously awarded using a
33-11    competitive process by:
33-12                (1)  the federal government, including the federal
33-13    General Services Administration; or
33-14                (2)  any other governmental entity in any state.
33-15          (b)  In developing the schedule under Subsection (a), the
33-16    commission shall modify any contractual terms, with the agreement
33-17    of the parties to the contract, as necessary to comply with any
33-18    federal or state requirements, including rules adopted under this
33-19    subchapter.
33-20          (c)  The commission may not list a multiple award contract on
33-21    a schedule developed under this section if the goods or services
33-22    provided by that contract are available from only one vendor.
33-23          Sec. 2155.503.  RULES.  (a)  The commission and the
33-24    department shall adopt rules to implement this subchapter.  The
33-25    rules must:
33-26                (1)  establish standard terms for contracts listed on a
33-27    schedule; and
 34-1                (2)  maintain consistency with existing purchasing
 34-2    standards.
 34-3          (b)  The commission and the department shall consult with the
 34-4    attorney general and the comptroller in developing rules under this
 34-5    section.
 34-6          Sec. 2155.504.  USE OF SCHEDULE BY GOVERNMENTAL ENTITIES.
 34-7    (a)  A state agency or local government may purchase goods or
 34-8    services directly from a vendor under a contract listed on a
 34-9    schedule developed under this subchapter.  A purchase authorized by
34-10    this section satisfies any requirement of state law relating to
34-11    competitive bids or proposals and satisfies any applicable
34-12    requirements of Chapter 2157.
34-13          (b)  The price listed for a good or service under a multiple
34-14    award contract is a maximum price.  An agency or local government
34-15    may negotiate a lower price for goods or services under a contract
34-16    listed on a schedule developed under this subchapter.
34-17          Sec. 2155.505.  HISTORICALLY UNDERUTILIZED AND SMALL
34-18    BUSINESSES.  (a)  In this section:
34-19                (1)  "Historically underutilized business" has the
34-20    meaning assigned by Section 2161.001.
34-21                (2)  "Small business" means a small business concern as
34-22    defined by regulations of the United States Small Business
34-23    Administration in 13 C.F.R.  Section 121.201.
34-24          (b)  The commission shall strongly encourage each vendor with
34-25    a contract listed on a schedule developed under this subchapter and
34-26    who is not a historically underutilized business or small business
34-27    to use historically underutilized or small businesses to sell or
 35-1    provide a service under the contract.  If a vendor does not make a
 35-2    good faith effort to use historically underutilized and small
 35-3    businesses under the contract, the commission may exclude the
 35-4    vendor from being listed on a schedule developed under this
 35-5    subchapter.
 35-6          (c)  A historically underutilized business or small business
 35-7    may sell or provide a service under another vendor's contract
 35-8    listed on a schedule developed under this subchapter if:
 35-9                (1)  the contract is on a schedule developed under
35-10    Section 2155.502;
35-11                (2)  the vendor for the contract authorizes in writing
35-12    the historically underutilized business or small business to sell
35-13    or provide a service under that contract; and
35-14                (3)  the historically underutilized business or small
35-15    business provides that written authorization to the commission.
35-16          Sec. 2155.506.  REPORTING REQUIREMENTS.  (a)  A vendor listed
35-17    on a contract for a schedule developed under this subchapter shall
35-18    report its sales to the commission in the manner prescribed by the
35-19    commission.
35-20          (b)  The commission shall compile the information reported
35-21    under Subsection (a) and include the information in its report
35-22    under Section 2101.011.
35-23          Sec. 2155.507.  EXEMPTION FROM CATALOGUE PURCHASE METHOD FOR
35-24    INFORMATION SYSTEM VENDORS.  Section 2157.062 does not apply to a
35-25    vendor who applies to be listed on a schedule developed under this
35-26    subchapter.
35-27          Sec. 2155.508.  INTERNET AVAILABILITY.  (a)  The commission
 36-1    shall develop a database of the multiple award contracts developed
 36-2    under this subchapter and make that information available on an
 36-3    Internet site.  The database must have search capabilities that
 36-4    allow a person to easily access the contracts.
 36-5          (b)  The commission shall allow vendors to apply through the
 36-6    Internet site to be listed on a schedule developed under this
 36-7    subchapter.  The applicant shall provide an electronic mail address
 36-8    to the commission as part of the application process.
 36-9          (c)  The department shall post appropriate information
36-10    regarding contracts developed under this subchapter to any
36-11    electronic procurement system developed under Chapter 2177.  On
36-12    request by the department, the commission and any vendor with a
36-13    contract on a schedule developed under this subchapter shall
36-14    provide to the department any information necessary for posting on
36-15    the system.
36-16          Sec. 2155.509.  NOTICE REGARDING PROCUREMENTS EXCEEDING
36-17    $25,000.  After a purchase order has been placed, a state agency
36-18    subject to Section 2155.083 shall post, as required under that
36-19    section, a procurement made under a contract listed on a schedule
36-20    developed under this subchapter.
36-21          SECTION 2.02. Section 2155.079(a), Government Code, is
36-22    amended to read as follows:
36-23          (a)  The commission shall adopt rules specifying the
36-24    circumstances under which it is advantageous for the state to allow
36-25    a state agency to purchase goods or services under a contract made
36-26    by another state agency other than the commission, including as
36-27    provided under Subchapter I.
 37-1          SECTION 2.03. (a)  Not later than March 1, 2002, the Texas
 37-2    Procurement Commission shall develop initial schedules of multiple
 37-3    award contracts under Section 2155.502, Government Code, as added
 37-4    by this Act.
 37-5          (b)  Not later than January 1, 2002, the Texas Procurement
 37-6    Commission shall adopt the rules required by Subchapter I, Chapter
 37-7    2155, Government Code, as added by this Act.
 37-8       ARTICLE 3.  OVERSIGHT OF MAJOR INFORMATION RESOURCES PROJECTS
 37-9          SECTION 3.01. Section 2054.003, Government Code, is amended
37-10    by adding a new Subdivision (8) and renumbering existing
37-11    Subdivisions (8), (9), and (10) as Subdivisions (9), (10), and (11)
37-12    to read as follows:
37-13                (8)  "Major information resources project" means:
37-14                      (A)  any information resources technology project
37-15    identified in a state agency's biennial operating plan whose
37-16    development costs exceed $1 million and that:
37-17                            (i)  requires one year or longer to reach
37-18    operations status;
37-19                            (ii)  involves more than one state agency;
37-20    or
37-21                            (iii)  substantially alters work methods of
37-22    state agency personnel or the delivery of services to clients; and
37-23                      (B)  any information resources technology project
37-24    designated by the legislature in the General Appropriations Act as
37-25    a major information resources project.
37-26                (9)  "Project" means a program to provide information
37-27    resources technologies support to functions within or among
 38-1    elements of a state agency, that ideally is characterized by
 38-2    well-defined parameters, specific objectives, common benefits,
 38-3    planned activities, a scheduled completion date, and an established
 38-4    budget with a specified source of funding.
 38-5                (10) [(9)]  "State agency" means a department,
 38-6    commission, board, office, council, or other agency in the
 38-7    executive or judicial branch of state government that is created by
 38-8    the constitution or a statute of this state, including a university
 38-9    system or institution of higher education as defined by Section
38-10    61.003, Education Code.
38-11                (11) [(10)]  "Telecommunications" means any
38-12    transmission, emission, or reception of signs, signals, writings,
38-13    images, or sounds of intelligence of any nature by wire, radio,
38-14    optical, or other electromagnetic systems.  The term includes all
38-15    facilities and equipment performing those functions that are owned,
38-16    leased, or used by state agencies and branches of state government.
38-17          SECTION 3.02.  Subchapter F, Chapter 2054, Government Code,
38-18    is amended by adding Section 2054.1181 to read as follows:
38-19          Sec. 2054.1181.  OVERSIGHT OF MAJOR INFORMATION RESOURCES
38-20    PROJECTS.  (a)  The department shall create a division in the
38-21    department to oversee the implementation of major information
38-22    resources projects.
38-23          (b)  In performing its duties under this section, the
38-24    department shall:
38-25                (1)  develop policies for the oversight of projects;
38-26                (2)  implement project management standards;
38-27                (3)  use effective risk management strategies;
 39-1                (4)  establish standards that promote the ability of
 39-2    information resources systems to operate with each other; and
 39-3                (5)  use industry best practices and process
 39-4    reengineering when feasible.
 39-5          (c)  The division shall be funded from a percentage of money
 39-6    appropriated to or budgeted by state agencies for the major
 39-7    information resources projects designated by the legislature under
 39-8    Section 2054.003(8)(B).  The legislature shall prescribe the
 39-9    percentage or percentages, as applicable, in the General
39-10    Appropriations Act.
39-11          SECTION 3.03. Section 2054.118(d), Government Code, is
39-12    repealed.
39-13                      ARTICLE 4.  TELECOMMUNICATIONS
39-14          SECTION 4.01. Section 2054.051(e), Government Code, is
39-15    amended to read as follows:
39-16          (e)  The department shall provide for all interagency use of
39-17    information resources technologies by state agencies[, except for
39-18    telecommunications services provided by the General Services
39-19    Commission under other law].  The department may provide for
39-20    interagency use of information resources technologies either
39-21    directly or by certifying another state agency to provide specified
39-22    uses of information resources technologies to other state agencies.
39-23          SECTION 4.02. Section 2054.091(d), Government Code, is
39-24    amended to read as follows:
39-25          (d)  The executive director shall appoint an advisory
39-26    committee to assist in the preparation of the state strategic plan.
39-27    The members of the advisory committee appointed by the executive
 40-1    director must be approved by the board and must include officers or
 40-2    employees of state government.  The telecommunications planning and
 40-3    oversight council shall appoint one of its members to serve as a
 40-4    member of the advisory committee.
 40-5          SECTION 4.03.  The heading to Subchapter H, Chapter 2054,
 40-6    Government Code, is amended to read as follows:
 40-7                SUBCHAPTER H.  TELECOMMUNICATIONS PLANNING
 40-8                       AND OVERSIGHT COUNCIL [GROUP]
 40-9          SECTION 4.04. Section 2054.201, Government Code, is amended
40-10    to read as follows:
40-11          Sec. 2054.201.  COMPOSITION; TERMS. (a)  The
40-12    telecommunications planning and oversight council [group] is
40-13    composed of:
40-14                (1)  a representative of the comptroller's office,
40-15    appointed by the comptroller;
40-16                (2)  the executive director of the Telecommunications
40-17    Infrastructure Fund Board;
40-18                (3)  a representative of the Texas Procurement
40-19    Commission, appointed by the executive director of the commission;
40-20                (4)  a member representing the interests of state
40-21    agencies with 1,000 employees or more, appointed by the lieutenant
40-22    governor;
40-23                (5)  a member representing the interests of state
40-24    agencies with fewer than 1,000 employees, appointed by the speaker
40-25    of the house of representatives;
40-26                (6)  a member representing the interests of
40-27    institutions of higher education, appointed by the commissioner of
 41-1    higher education;
 41-2                (7)  a member representing the interests of The
 41-3    University of Texas System, appointed by the chancellor;
 41-4                (8)  a member representing the interests of The Texas
 41-5    A&M University System, appointed by the chancellor;
 41-6                (9)  a member representing the interests of public
 41-7    school districts that are customers of the consolidated
 41-8    telecommunications system, appointed by the governor;
 41-9                (10)  a member representing the interests of local
41-10    governments that are customers of the consolidated
41-11    telecommunications system, appointed by the governor; and
41-12                (11)  two public members with telecommunications
41-13    expertise, appointed by the governor [the comptroller, the
41-14    executive director of the department, and the executive director of
41-15    the General Services Commission].
41-16          (b)  Appointed members of the telecommunications planning and
41-17    oversight council serve two-year terms, except that the
41-18    representative of the comptroller's office serves at the discretion
41-19    of the comptroller and the representative of the Texas Procurement
41-20    Commission serves at the discretion of the executive director of
41-21    the commission [Each member of the group may designate an employee
41-22    of the member's agency to serve in the member's place].
41-23          (c)  Members of the telecommunications planning and oversight
41-24    council who represent a state agency shall abstain from any action
41-25    taken by the council regarding a request for a waiver under Section
41-26    2170.051 from the state agency that is represented by the member.
41-27          SECTION 4.05.  Subchapter H, Chapter 2054, Government Code,
 42-1    is amended by adding Section 2054.2011 to read as follows:
 42-2          Sec. 2054.2011.  DEFINITIONS.  In this subchapter:
 42-3                (1)  "Centralized capitol complex telephone system"
 42-4    means the system described in Section 2170.059.
 42-5                (2)  "Consolidated telecommunications system" has the
 42-6    meaning assigned by Section 2170.001.
 42-7          SECTION 4.06.  Section 2054.202, Government Code, is amended
 42-8    to read as follows:
 42-9          Sec. 2054.202.  ADMINISTRATIVE PROVISIONS.  (a)  The
42-10    telecommunications planning and oversight council [group] shall
42-11    post notice of its meetings in accordance with the open meetings
42-12    law, Chapter 551, in the manner required for a state governmental
42-13    body under that chapter.
42-14          (b)  The department shall provide [coordinate] the staff and
42-15    administrative support necessary for [provided to] the
42-16    telecommunications planning and oversight council to perform its
42-17    duties under this subchapter [group by the department, by the
42-18    comptroller, and by the General Services Commission].
42-19          (c)  The telecommunications planning and oversight council
42-20    [group] may periodically elect one of its members to serve as
42-21    presiding officer of the council [group].
42-22          SECTION 4.07.  Section 2054.203, Government Code, is amended
42-23    by amending Subsections (a)-(d) and adding Subsection (g) to read
42-24    as follows:
42-25          (a)  The telecommunications planning and oversight council
42-26    [group] shall comprehensively collect and manage telecommunications
42-27    network configuration information about existing and planned
 43-1    telecommunications networks throughout state government.
 43-2          (b)  The telecommunications planning and oversight council
 43-3    [group] may require state agencies to submit to the council [group]
 43-4    the agencies' network configuration information, but the council
 43-5    [group] must use existing reports to gather the information if
 43-6    possible and minimize the reporting burden on agencies to the
 43-7    extent possible.
 43-8          (c)  The telecommunications planning and oversight council
 43-9    [group] shall establish plans and policies for a system of
43-10    telecommunications services to be managed and operated by the
43-11    department [General Services Commission].
43-12          (d)  The telecommunications planning and oversight council
43-13    [group] shall develop a statewide telecommunications operating plan
43-14    for all state agencies.  The plan shall implement a statewide
43-15    network and include technical specifications that are binding on
43-16    the department [General Services Commission].
43-17          (g)  The telecommunications planning and oversight council
43-18    shall perform strategic planning for all state telecommunications
43-19    services in accordance with the guiding principles of the state
43-20    strategic plan for information resources management.
43-21          SECTION 4.08. Sections 2054.204(a) and (c), Government Code,
43-22    are amended to read as follows:
43-23          (a)  The telecommunications planning and oversight council
43-24    [group] shall develop a plan for a state telecommunications network
43-25    that will effectively and efficiently meet the long-term
43-26    requirements of state government for voice, video, and computer
43-27    communications, with the goal of achieving a single centralized
 44-1    telecommunications network for state government.
 44-2          (c)  The plan must incorporate efficiencies obtained through
 44-3    the use of shared transmission services and open systems
 44-4    architecture as they become available, building on existing systems
 44-5    as appropriate.  In developing the plan, the telecommunications
 44-6    planning and oversight council [group] shall make use of the
 44-7    technical expertise of state agencies, including institutions of
 44-8    higher education.
 44-9          SECTION 4.09.  Section 2054.205, Government Code, is amended
44-10    to read as follows:
44-11          Sec. 2054.205.  DEVELOPMENT OF SYSTEM.  (a)  The
44-12    telecommunications planning and oversight council [group] shall
44-13    develop functional requirements for a statewide system of
44-14    telecommunications services for all state agencies.  Existing
44-15    networks, as configured on September 1, 1991, of institutions of
44-16    higher education are exempt from the requirements.
44-17          (b)  The telecommunications planning and oversight council
44-18    [group] shall develop requests for information and proposals for a
44-19    statewide system of telecommunications services for all state
44-20    agencies.
44-21          (c)  The telecommunications planning and oversight council
44-22    [group] shall negotiate rates and execute contracts with
44-23    telecommunications service providers for services.  The
44-24    telecommunications planning and oversight council [group] may:
44-25                (1)  acquire transmission facilities by purchase,
44-26    lease, or lease-purchase in accordance with Chapters 2155-2158; and
44-27                (2)  develop, establish, and maintain carrier systems
 45-1    necessary to the operation of the telecommunications system.
 45-2          SECTION 4.10.  Subchapter H, Chapter 2054, Government Code,
 45-3    is amended by adding Section 2054.2051 to read as follows:
 45-4          Sec. 2054.2051.  OVERSIGHT OF SYSTEMS.  (a)  The
 45-5    telecommunications planning and oversight council shall develop
 45-6    service objectives for the consolidated telecommunications system
 45-7    and the centralized capitol complex telephone system.
 45-8          (b)  The telecommunications planning and oversight council
 45-9    shall develop performance measures for the operations and staff of
45-10    the consolidated telecommunications system and the centralized
45-11    capitol complex telephone system.
45-12          (c)  The telecommunications planning and oversight council
45-13    shall review every three months the status of all projects related
45-14    to and the financial performance of the consolidated
45-15    telecommunications system and the centralized capitol complex
45-16    telephone system, including a comparison between actual performance
45-17    and projected goals.
45-18          (d)  The telecommunications planning and oversight council
45-19    shall make recommendations to the board on ways to improve the
45-20    operation of the consolidated telecommunications system and the
45-21    centralized capitol complex telephone system based on its review of
45-22    their performance and on concerns raised by using entities.
45-23          SECTION 4.11. Section 2054.206, Government Code, is amended
45-24    to read as follows:
45-25          Sec. 2054.206.  ANNUAL REPORT. The telecommunications
45-26    planning and oversight council shall submit an annual report to the
45-27    department and to each entity served by the consolidated
 46-1    telecommunications system or the centralized capitol complex
 46-2    telephone system.  The report must include:
 46-3                (1)  information about the accomplishment of service
 46-4    objectives and other performance measures for management of the
 46-5    consolidated telecommunications system and the centralized capitol
 46-6    complex telephone system;
 46-7                (2)  information about the accounting and financial
 46-8    performance of the consolidated telecommunications system and the
 46-9    centralized capitol complex telephone system;
46-10                (3)  estimates of savings to entities served by the
46-11    consolidated telecommunications system over standard rates
46-12    available to state agencies who acquire telecommunications services
46-13    directly;
46-14                (4)  trends in network use, including the number of
46-15    users, workstations, and locations supported; and
46-16                (5)  rate information for services provided by the
46-17    consolidated telecommunications system and the centralized capitol
46-18    complex telephone system.  [ADVISORY AGENCIES.  The following state
46-19    agencies shall formally advise the telecommunications planning
46-20    group and send representatives to meetings of the group:]
46-21                [(1)  the Texas Education Agency;]
46-22                [(2)  the Texas Higher Education Coordinating Board;]
46-23                [(3)  The Texas A&M University System;]
46-24                [(4)  The University of Texas System;]
46-25                [(5)  the Telecommunications Infrastructure Fund Board;
46-26    and]
46-27                [(6)  the Texas State Library and Archives Commission.]
 47-1          SECTION 4.12.  Section 2054.207, Government Code, is amended
 47-2    to read as follows:
 47-3          Sec. 2054.207.  REPORT TO LEGISLATURE. The telecommunications
 47-4    planning and oversight council [group] shall report biennially to
 47-5    the legislature not later than October 1 of each even-numbered year
 47-6    on the status of the current plan for a state telecommunications
 47-7    network and on the progress state government has made towards
 47-8    accomplishing the goals of the plan.  The report shall address
 47-9    consolidated telecommunications system performance, centralized
47-10    capitol complex telephone system performance, telecommunications
47-11    system needs, and recommended statutory changes to enhance system
47-12    capability and cost-effectiveness.
47-13          SECTION 4.13. Section 2157.001(1), Government Code, is
47-14    amended to read as follows:
47-15                (1)  "Automated information system" includes:
47-16                      (A)  the computers and computer devices on which
47-17    an information system is automated, including computers and
47-18    computer devices that the commission identifies in guidelines
47-19    developed by the commission in consultation with the Department of
47-20    Information Resources and in accordance with Chapter 2054 and rules
47-21    adopted under that chapter;
47-22                      (B)  a service related to the automation of an
47-23    information system, including computer software or computers;
47-24                      (C)  a telecommunications apparatus or device
47-25    that serves as a component of a voice, data, or video
47-26    communications network for transmitting, switching, routing,
47-27    multiplexing, modulating, amplifying, or receiving signals on the
 48-1    network, and services related to telecommunications that are not
 48-2    covered under Paragraph (D); and
 48-3                      (D)  for the Department of Information Resources
 48-4    [General Services Commission], as telecommunications provider for
 48-5    the state, the term includes any service provided by a
 48-6    telecommunications provider, as that term is defined by Section
 48-7    51.002, Utilities Code.
 48-8          SECTION 4.14. Section 2157.121, Government Code, is amended
 48-9    by amending Subsection (b) and adding Subsection (c) to read as
48-10    follows:
48-11          (b)  A state agency, other than the Department of Information
48-12    Resources, shall send its proposal specifications and criteria to
48-13    the commission for approval or request the commission to develop
48-14    the proposal specifications and criteria.
48-15          (c)  The Department of Information Resources may acquire a
48-16    telecommunications device, system, or service or an automated
48-17    information system by using competitive sealed proposals without
48-18    regard to whether the commission makes the determination required
48-19    under Subsection (a) for other state agencies.
48-20          SECTION 4.15. Section 2170.001(a), Government Code, is
48-21    amended by adding Subdivision (3) to read as follows:
48-22                (3)  "Department" means the Department of Information
48-23    Resources.
48-24          SECTION 4.16.  Section 2170.002, Government Code, is amended
48-25    to read as follows:
48-26          Sec. 2170.002.  DEPARTMENT [COMMISSION] RESPONSIBLE FOR
48-27    OBTAINING TELECOMMUNICATIONS SERVICES. The department [commission]
 49-1    is the state agency responsible for obtaining telecommunications
 49-2    services.
 49-3          SECTION 4.17.  Section 2170.003, Government Code, is amended
 49-4    to read as follows:
 49-5          Sec. 2170.003.  OWNERSHIP OR LEASE OF NECESSARY EQUIPMENT.
 49-6    The department [commission] may own, lease, or lease-purchase in
 49-7    accordance with Chapters 2155, 2156, 2157, and 2158 any or all of
 49-8    the facilities or equipment necessary to provide telecommunications
 49-9    services.
49-10          SECTION 4.18.  Section 2170.004, Government Code, is amended
49-11    to read as follows:
49-12          Sec. 2170.004.  CONTRACTS WITH ENTITIES OTHER THAN STATE
49-13    AGENCIES. The department [commission] may contract for use of the
49-14    consolidated telecommunications system with:
49-15                (1)  each house of the legislature;
49-16                (2)  a legislative agency;
49-17                (3)  an agency that is not a state agency as defined by
49-18    Section 2151.002; and
49-19                (4)  a political subdivision, including a county,
49-20    municipality, or district.
49-21          SECTION 4.19. Sections 2170.005(a) and (c), Government Code,
49-22    are amended to read as follows:
49-23          (a)  To ensure efficient operation of the consolidated
49-24    telecommunications system at minimum cost to the state, the
49-25    department [commission] shall adopt and disseminate to all agencies
49-26    appropriate guidelines, operating procedures, and telephone
49-27    directories.
 50-1          (c)  Telephone directories published by the department
 50-2    [commission] under this section and Section 2170.059 must be
 50-3    revised regularly and must list state telephone numbers
 50-4    alphabetically by the subject matter of agency programs as well as
 50-5    alphabetically by agency.  The subject matter listing of programs
 50-6    and telephone numbers in the telephone directories must be
 50-7    consistent with the categorization developed by the Records
 50-8    Management Interagency Coordinating Council under Section 441.203
 50-9    [441.053].  The department [commission] may authorize, under
50-10    procedures and rules considered appropriate by the department
50-11    [commission], a yellow pages advertising section in the directories
50-12    to recover development, publication, and distribution costs of the
50-13    directories.
50-14          SECTION 4.20.  Section 2170.006, Government Code, is amended
50-15    to read as follows:
50-16          Sec. 2170.006.  COST-EFFECTIVENESS OF SYSTEM. (a)  The
50-17    department [commission], with the advice of the state auditor,
50-18    shall maintain records relating to the consolidated
50-19    telecommunications system necessary to enable the department
50-20    [commission] to analyze the cost-effectiveness of the system to
50-21    state agencies.
50-22          (b)  The department [commission] shall advise the legislature
50-23    at each session about the system's cost-effectiveness.
50-24          SECTION 4.21.  Section 2170.008, Government Code, is amended
50-25    to read as follows:
50-26          Sec. 2170.008.  RATE INTERVENTION. (a)  If the department
50-27    [commission] determines there is sufficient economic impact on
 51-1    state government, the department [commission] may intervene on
 51-2    behalf of state agencies in telecommunications rate cases and may
 51-3    hire special counsel and expert witnesses to prepare and present
 51-4    testimony.
 51-5          (b)  The attorney general shall represent the department
 51-6    [commission] before the courts in all appeals from rate cases in
 51-7    which the department [commission] intervenes.
 51-8          SECTION 4.22. Sections 2170.009(a) and (c), Government Code,
 51-9    are amended to read as follows:
51-10          (a)  A pay telephone may be located in the capitol complex
51-11    only with the approval of the department [commission].  The
51-12    department [commission] shall collect the revenue from the
51-13    installation and operation of the pay telephone and deposit it to
51-14    the credit of the general revenue fund.
51-15          (c)  The department [commission] or other state entity shall
51-16    account for the revenue collected under this section in the
51-17    entity's annual report.
51-18          SECTION 4.23.  Section 2170.051, Government Code, is amended
51-19    to read as follows:
51-20          Sec. 2170.051.  MANAGEMENT AND USE OF SYSTEM. (a)  The
51-21    department [commission] shall manage the operation of a system of
51-22    telecommunications services for all state agencies.  Each agency
51-23    shall identify its particular requirements for telecommunications
51-24    services and the site at which the services are to be provided.
51-25          (b)  The department [commission] shall fulfill the
51-26    telecommunications requirements of each state agency to the extent
51-27    possible and to the extent that money is appropriated or available
 52-1    for that purpose.
 52-2          (c)  A state agency shall use the consolidated
 52-3    telecommunications system to the fullest extent possible.  A state
 52-4    agency may not acquire telecommunications services unless the
 52-5    telecommunications planning and oversight council [group]
 52-6    determines that the agency's requirement for telecommunications
 52-7    services cannot be met at a comparable cost by the consolidated
 52-8    telecommunications system.
 52-9          (d)  A state agency may not enter into or renew a contract
52-10    with a carrier or other provider of telecommunications services
52-11    without obtaining a waiver from the telecommunications planning and
52-12    oversight council [group] certifying that the requested
52-13    telecommunications services cannot be provided at a comparable cost
52-14    on the consolidated telecommunications system.  The
52-15    telecommunications planning and oversight council [group] shall
52-16    evaluate requests for waivers based on cost-effectiveness to the
52-17    state government as a whole.  A waiver may be granted only for a
52-18    specific period and will automatically expire on the stated
52-19    expiration date unless an extension is approved by the
52-20    telecommunications planning and oversight council [group].  A
52-21    contract for telecommunications services obtained under waiver may
52-22    not extend beyond the expiration date of the waiver.  If the
52-23    telecommunications planning and oversight council [group] becomes
52-24    aware of any state agency receiving telecommunications services
52-25    without a waiver, the telecommunications planning and oversight
52-26    council [group] shall notify the agency and the comptroller.  The
52-27    state agency shall have 60 days after notification by the
 53-1    telecommunications planning and oversight council [group] in which
 53-2    to submit a waiver request to the telecommunications planning and
 53-3    oversight council [group] documenting the agency's reasons
 53-4    [reasoning] for bypassing the consolidated telecommunications
 53-5    system and otherwise providing all information required by the
 53-6    waiver application form.
 53-7          SECTION 4.24.  Section 2170.052, Government Code, is amended
 53-8    to read as follows:
 53-9          Sec. 2170.052.  BALANCING TECHNOLOGICAL ADVANCEMENTS AND
53-10    EXISTING FACILITIES. In the planning, design, implementation, and
53-11    operation of the consolidated telecommunications system, the
53-12    department [commission] shall maintain an appropriate balance
53-13    between the adoption of technological advancements and the
53-14    efficient use of existing facilities and services to avoid
53-15    misapplication of state money and degradation or loss of the
53-16    integrity of existing systems and facilities.
53-17          SECTION 4.25.  Section 2170.056, Government Code, is amended
53-18    to read as follows:
53-19          Sec. 2170.056.  COSTS TO STATE OF PARALLEL TOLLS. All
53-20    contracts with telecommunications carriers shall provide that the
53-21    department [commission] or any participating agency may obtain any
53-22    information relating to the costs to the state of parallel tolls.
53-23          SECTION 4.26. Sections 2170.057(a), (c), and (d), Government
53-24    Code, are amended to read as follows:
53-25          (a)  The department [commission] shall develop a system of
53-26    billings and charges for services provided in operating and
53-27    administering the consolidated telecommunications system that
 54-1    allocates the total state cost to each entity served by the system
 54-2    based on proportionate usage.
 54-3          (c)  To provide an adequate cash flow as necessary for
 54-4    purposes of this chapter, using state agencies and other entities,
 54-5    on proper notification, shall make monthly payments into the
 54-6    telecommunications revolving fund account from appropriated or
 54-7    other available money.  The legislature may appropriate money for
 54-8    operating the system directly to the department [commission], in
 54-9    which case the revolving fund account shall be used to receive
54-10    money due from local governmental entities and other agencies to
54-11    the extent that their money is not subject to legislative
54-12    appropriation.
54-13          (d)  The department [commission] shall maintain in the
54-14    revolving fund account sufficient amounts to pay the bills of the
54-15    consolidated telecommunications system and the centralized capitol
54-16    complex telephone system.  The department [commission] shall
54-17    certify amounts that exceed this amount to the comptroller, and the
54-18    comptroller shall transfer the excess amounts to the credit of the
54-19    statewide network applications account established by Section
54-20    2054.011 [22A, Information Resources Management Act (Article
54-21    4413(32j), Revised Statutes)].
54-22          SECTION 4.27. Sections 2170.058(b) and (c), Government Code,
54-23    are amended to read as follows:
54-24          (b)  The department [commission] shall adopt rules that
54-25    govern student access to the system, including:
54-26                (1)  times of access to the system; and
54-27                (2)  the full recovery of actual costs from each
 55-1    student who uses the system.
 55-2          (c)  In consideration of the duties and responsibilities
 55-3    given the department [commission] under this chapter [subtitle], it
 55-4    is the policy of this state that a state agency or unit of state
 55-5    government may not provide telecommunications products or services
 55-6    to the general public in competition with private enterprise unless
 55-7    there is a finding that providing the products or services is in
 55-8    the public interest.  This subsection does not prohibit students
 55-9    who reside in housing for which institutions of higher education
55-10    provide telephone service from using service provided under this
55-11    section.
55-12          SECTION 4.28.  Section 2170.059, Government Code, is amended
55-13    to read as follows:
55-14          Sec. 2170.059.  CENTRALIZED CAPITOL COMPLEX TELEPHONE SYSTEM.
55-15    (a)  The department [commission] shall provide centralized
55-16    telephone service for state agencies, each house of the
55-17    legislature, and legislative agencies in the capitol complex.
55-18    State agencies in the capitol complex shall use the service.  Each
55-19    house of the legislature and each legislative agency shall use the
55-20    service at the discretion of the legislature.  The department
55-21    [commission] may provide the service to other state agencies that
55-22    subscribe to it.
55-23          (b)  Each using entity shall make monthly payments to the
55-24    department [commission] when billed by the department [commission].
55-25          (c)  Each using entity may arrange for its own terminal
55-26    telephone equipment, but the equipment must be compatible with the
55-27    centralized telephone service.  The department [commission] shall
 56-1    make terminal equipment available for using entities that choose to
 56-2    use that terminal equipment.
 56-3          (d)  The department [commission] annually shall prepare and
 56-4    issue a revised centralized telephone service directory not later
 56-5    than March 31.
 56-6          SECTION 4.29.  Subchapter B, Chapter 2170, Government Code,
 56-7    is amended by adding Section 2170.060 to read as follows:
 56-8          Sec. 2170.060.  QUARTERLY REPORT. The department shall
 56-9    quarterly submit a report to the telecommunications planning and
56-10    oversight council on:
56-11                (1)  the department's accomplishment of service
56-12    objectives and other performance measures;
56-13                (2)  the financial performance of the consolidated
56-14    telecommunications system and the centralized capitol complex
56-15    telephone system; and
56-16                (3)  the status of projects for the consolidated
56-17    telecommunications system and the centralized capitol complex
56-18    telephone system.
56-19          SECTION 4.30. Section 2054.091(e), Government Code, is
56-20    repealed.
56-21          SECTION 4.31.  Section 2170.007, Government Code, is
56-22    repealed.
56-23          SECTION 4.32.  (a)  The telecommunications planning group is
56-24    abolished.
56-25          (b)  The governor, the lieutenant governor, the speaker of
56-26    the house of representatives, the comptroller of public accounts,
56-27    the executive director of the Texas Procurement Commission, the
 57-1    commissioner of higher education, the chancellor of The University
 57-2    of Texas System, and the chancellor of The Texas A&M University
 57-3    System shall make appointments to the telecommunications planning
 57-4    and oversight council in accordance with Section 2054.201,
 57-5    Government Code, as amended by this Act, as soon as possible after
 57-6    September 1, 2001.
 57-7          (c)  Any powers, duties, rights, contracts, appropriations,
 57-8    property, and records of the telecommunications planning group are
 57-9    transferred to the telecommunications planning and oversight
57-10    council as created by this Act.
57-11          (d)  A rule, policy, plan, waiver, standard, requirement, or
57-12    guideline of the telecommunications planning group continues in
57-13    effect as a rule, policy, plan, waiver, standard, requirement, or
57-14    guideline of the telecommunications planning and oversight council
57-15    until it is superseded by an act of the telecommunications planning
57-16    and oversight council as created by this Act or until it expires
57-17    according to its terms or by operation of law.
57-18          (e)  The validity of a rule, policy, plan, requirement,
57-19    guideline, or procedure adopted, waiver granted, contract or
57-20    acquisition made, obligation incurred, right accrued, or other
57-21    action taken by or in connection with the authority of the
57-22    telecommunications planning group before it is abolished under
57-23    Subsection (a) of this section is not affected by the abolishment.
57-24          SECTION 4.33.  The telecommunications planning and oversight
57-25    council shall issue the first annual report required under Section
57-26    2054.206, Government Code, as amended by this Act, not later than
57-27    September 1, 2002.
 58-1                 ARTICLE 5.  STATEWIDE CONTRACT MANAGEMENT
 58-2          SECTION 5.01. Subtitle F, Title 10, Government Code, is
 58-3    amended by adding Chapter 2262 to read as follows:
 58-4               CHAPTER 2262.  STATEWIDE CONTRACT MANAGEMENT
 58-5                     SUBCHAPTER A.  GENERAL PROVISIONS
 58-6          Sec. 2262.001.  DEFINITIONS.  In this chapter:
 58-7                (1)  "Team" means the Contract Advisory Team created
 58-8    under Subchapter C.
 58-9                (2)  "Contract management guide" means the guide
58-10    developed under Section 2262.051.
58-11                (3)  "Contract manager" means a person who:
58-12                      (A)  is employed by a state agency; and
58-13                      (B)  has significant contract management duties
58-14    for the state agency, as determined by the agency in consultation
58-15    with the state auditor.
58-16                (4)  "Major contract" means a contract that has a value
58-17    of at least $1 million.
58-18                (5)  "State agency" has the meaning provided by Section
58-19    2056.001.
58-20          Sec. 2262.002.  EXEMPTIONS. (a)  This chapter does not apply
58-21    to an institution of higher education as defined by Section 61.003,
58-22    Education Code.
58-23          (b)  Any provisions of this chapter regarding the
58-24    solicitation of contracts do not apply to the Texas Department of
58-25    Transportation.
58-26            (Sections 2262.003-2262.050 reserved for expansion
58-27                    SUBCHAPTER B.  CONTRACT MANAGEMENT
 59-1          Sec. 2262.051.  CONTRACT MANAGEMENT GUIDE; RULES. (a)  In
 59-2    consultation with the Texas Procurement Commission, the Department
 59-3    of Information Resources, the comptroller, and the state auditor,
 59-4    the attorney general shall develop and periodically update a
 59-5    contract management guide for use by state agencies.
 59-6          (b)  The attorney general may adopt rules necessary to
 59-7    develop the guide.
 59-8          (c)  The guide must provide information regarding the primary
 59-9    duties of a contract manager, including how to:
59-10                (1)  develop and negotiate a contract;
59-11                (2)  select a contractor; and
59-12                (3)  monitor contractor and subcontractor performance
59-13    under a contract.
59-14          (d)  The guide must include model provisions for state agency
59-15    contracts.  The guide must:
59-16                (1)  distinguish between essential provisions that a
59-17    state agency must include in a contract to protect the interests of
59-18    this state and recommended provisions that a state agency may
59-19    include in a contract;
59-20                (2)  recognize the unique contracting needs of an
59-21    individual state agency or program and provide sufficient
59-22    flexibility to accommodate those needs, consistent with protecting
59-23    the interests of this state; and
59-24                (3)  include maximum contract periods under which a new
59-25    competitive solicitation is not necessary.
59-26          (e)  The guide must recommend time frames under which a state
59-27    agency may issue a competitive solicitation for a major contract in
 60-1    relation to the date on which the contract is to be executed.
 60-2          (f)  The guide must establish procedures by which a state
 60-3    agency is required to consult with the team before issuing a
 60-4    solicitation for a major contract.  The procedures must establish a
 60-5    process under which the team is required to review and comment on
 60-6    whether to proceed with the solicitation or execute the contract.
 60-7    As detailed in the procedures, the team may recommend that the
 60-8    agency use the services of the attorney general or private counsel
 60-9    or of private consultants who are experts in any technical matter
60-10    that is the subject of the major contract.
60-11          (g)  The guide must establish procedures under which a  state
60-12    agency is required to solicit explanations from qualified potential
60-13    respondents who did not respond to a competitive solicitation for a
60-14    contract on which fewer than two qualified bids were received by
60-15    the agency.
60-16          Sec. 2262.052.  COMPLIANCE WITH GUIDE.  (a)  Each state
60-17    agency shall comply with the contract management guide.
60-18          (b)  The state auditor shall:
60-19                (1)  periodically monitor compliance with this section;
60-20                (2)  report any noncompliance to:
60-21                      (A)  the governor;
60-22                      (B)  the lieutenant governor;
60-23                      (C)  the speaker of the house of representatives;
60-24    and
60-25                      (D)  the team; and
60-26                (3)  assist, in coordination with the attorney general
60-27    and the comptroller, a noncomplying state agency to comply with
 61-1    this section.
 61-2          Sec. 2262.053.  TRAINING. (a)  In coordination with the Texas
 61-3    Procurement Commission, the comptroller, and the Department of
 61-4    Information Resources, the state auditor shall develop a training
 61-5    program for contract managers.
 61-6          (b)  The training must provide the contract manager with
 61-7    information regarding how to:
 61-8                (1)  fairly and objectively select and negotiate with
 61-9    the most qualified contractor;
61-10                (2)  establish prices that are cost-effective and that
61-11    reflect the cost of providing the service;
61-12                (3)  include provisions in a contract that hold the
61-13    contractor accountable for results;
61-14                (4)  monitor and enforce a contract;
61-15                (5)  make payments consistent with the contract; and
61-16                (6)  comply with any requirements or goals contained in
61-17    the contract management guide.
61-18          (c)  Each state agency shall ensure that the agency's
61-19    contract managers complete the training developed under this
61-20    section.
61-21          Sec. 2262.054.  PUBLIC COMMENT. The attorney general by rule
61-22    may establish procedures by which each state agency is required to
61-23    invite public comment by publishing the proposed technical
61-24    specifications for major contracts on the Internet through the
61-25    information service known as the Texas Marketplace or through a
61-26    suitable successor information service.  The guide must define
61-27    "technical specifications."
 62-1            (Sections 2262.055-2262.100 reserved for expansion)
 62-2                   SUBCHAPTER C.  CONTRACT ADVISORY TEAM
 62-3          Sec. 2262.101.  CREATION; DUTIES. The Contract Advisory Team
 62-4    is created to assist state agencies in improving contract
 62-5    management practices by:
 62-6                (1)  reviewing the solicitation of major contracts by
 62-7    state agencies;
 62-8                (2)  reviewing any findings or recommendations made by
 62-9    the state auditor, including those made under Section 2262.052(b),
62-10    regarding a state agency's compliance with the contract management
62-11    guide; and
62-12                (3)  providing recommendations to:
62-13                      (A)  the attorney general regarding the
62-14    development of the contract management guide; and
62-15                      (B)  the state auditor regarding the training
62-16    under Section 2262.053.
62-17          Sec. 2262.102.  MEMBERS.  (a)  The team consists of the
62-18    following five members:
62-19                (1)  one member from the attorney general's office;
62-20                (2)  one member from the comptroller's office;
62-21                (3)  one member from the Department of Information
62-22    Resources;
62-23                (4)  one member from the Texas Procurement Commission;
62-24    and
62-25                (5)  one member from the governor's office.
62-26          (b)  The Legislative Budget Board and the state auditor shall
62-27    provide technical assistance to the team.
 63-1          Sec. 2262.103.  PERSONNEL. Each agency or officer with
 63-2    representation on the team shall provide, at the request of the
 63-3    team, staff to assist the team in carrying out its duties under
 63-4    this chapter.
 63-5          SECTION 5.02.  Section 2056.002(b), Government Code, is
 63-6    amended to read as follows:
 63-7          (b)  The Legislative Budget Board and the Governor's Office
 63-8    of Budget and Planning shall determine the elements required to be
 63-9    included in each agency's strategic plan.  Unless modified by the
63-10    Legislative Budget Board and the Governor's Office of Budget and
63-11    Planning, and except as provided by Subsection (c), a plan must
63-12    include:
63-13                (1)  a statement of the mission and goals of the state
63-14    agency;
63-15                (2)  a description of the indicators developed under
63-16    this chapter and used to measure the output and outcome of the
63-17    agency;
63-18                (3)  identification of the groups of people served by
63-19    the agency, including those having service priorities, or other
63-20    service measures established by law, and estimates of changes in
63-21    those groups expected during the term of the plan;
63-22                (4)  an analysis of the use of the agency's resources
63-23    to meet the agency's needs, including future needs, and an estimate
63-24    of additional resources that may be necessary to meet future needs;
63-25                (5)  an analysis of expected changes in the services
63-26    provided by the agency because of changes in state or federal law;
63-27                (6)  a description of the means and strategies for
 64-1    meeting the agency's needs, including future needs, and achieving
 64-2    the goals established under Section 2056.006 for each area of state
 64-3    government for which the agency provides services;
 64-4                (7)  a description of the capital improvement needs of
 64-5    the agency during the term of the plan and a statement, if
 64-6    appropriate, of the priority of those needs;
 64-7                (8)  identification of each geographic region of this
 64-8    state, including the Texas-Louisiana border region and the
 64-9    Texas-Mexico border region, served by the agency, and if
64-10    appropriate the agency's means and strategies for serving each
64-11    region;
64-12                (9)  a description of the training of the agency's
64-13    contract managers under Section 2262.053; and
64-14                (10) [(9)]  other information that may be required.
64-15          SECTION 5.03. Not later than March 1, 2002, the members of
64-16    the Contract Advisory Team created under Section 2262.101,
64-17    Government Code, as added by this Act, shall be designated by the
64-18    appropriate state agency or officer.
64-19          SECTION 5.04. Not later than March 1, 2002, the attorney
64-20    general shall complete the contract management guide required by
64-21    Section 2262.051, Government Code, as added by this Act.
64-22          SECTION 5.05. (a)  In this section:
64-23                (1)  "Team" means the Contract Advisory Team created
64-24    under Subchapter C, Chapter 2262, Government Code, as added by this
64-25    Act.
64-26                (2)  "Major contract" has the meaning provided by
64-27    Section 2262.001, Government Code, as added by this Act.
 65-1                (3)  "Solicitation" includes an invitation for bid,
 65-2    request for proposal, request for offer, request for quote, or
 65-3    other method for soliciting contracts in this state.
 65-4                (4)  "State agency" has the meaning provided by Section
 65-5    2056.001, Government Code.
 65-6          (b)  Not later than March 1, 2002, each state agency shall
 65-7    provide the team:
 65-8                (1)  a list of all major contracts entered into by the
 65-9    agency for which a competitive bid was solicited before September
65-10    1, 1998; and
65-11                (2)  a plan for issuing new solicitations for those
65-12    contracts not later than September 1, 2003.
65-13          (c)  The team may review and comment on the plan submitted
65-14    under Subsection (b) of this section.
65-15          SECTION 5.06.  Not later than December 31, 2002, one contract
65-16    manager designated by each state agency must have received the
65-17    training required by Section 2262.053(c), Government Code, as added
65-18    by this Act.
65-19          SECTION 5.07.  (a)  Except as provided by Subsections (b) and
65-20    (c) of this section, this article takes effect September 1, 2001.
65-21          (b)  Section 2262.052(a), Government Code, as added by this
65-22    Act, takes effect January 1, 2003.  A state agency may comply with
65-23    Section 2262.052(a) before its effective date.
65-24          (c)  A state agency is not required to comply with Section
65-25    2056.002(b)(9), Government Code, as added by this Act, until June
65-26    1, 2004.
 66-1               ARTICLE 6.  COMMERCIALLY AVAILABLE ACTIVITIES
 66-2          SECTION 6.01. Subtitle D, Title 10, Government Code, is
 66-3    amended by adding Chapter 2163 to read as follows:
 66-4             CHAPTER 2163.  COMMERCIALLY AVAILABLE ACTIVITIES
 66-5          Sec. 2163.001.  DEFINITION. In this chapter, "commission"
 66-6    means the Texas Procurement Commission.
 66-7          Sec. 2163.002.  REVIEW PROCESS.  (a)  The commission shall
 66-8    develop a systematic review process to identify commercially
 66-9    available services being performed by the commission and study the
66-10    services to determine if they may be better provided by other state
66-11    agency providers of the services or private commercial sources.
66-12          (b)  In reviewing its services, the commission shall:
66-13                (1)  determine whether competitive vendors exist in the
66-14    private sector;
66-15                (2)  compare the cost of contracting for the services
66-16    from other state agency providers of the services or private
66-17    commercial sources to the commission's cost of performing the
66-18    services; and
66-19                (3)  document cost savings from contracting for the
66-20    services from other state agency providers of the services or
66-21    private commercial sources.
66-22          (c)  Each commercially available service performed by the
66-23    commission shall be reviewed at least once every six years.
66-24          (d)  The commission shall consult with the State Council on
66-25    Competitive Government as necessary in planning and conducting its
66-26    reviews under this subchapter.
66-27          Sec. 2163.003.  COST COMPARISON AND CONTRACT CONSIDERATIONS.
 67-1    (a)  The commission shall consider all of its direct and indirect
 67-2    costs in determining the cost of providing a service.
 67-3          (b)  In comparing the cost of providing a service, the
 67-4    commission must include the:
 67-5                (1)  cost of supervising the work of a private
 67-6    contractor; and
 67-7                (2)  cost to the state of the commission's performance
 67-8    of the service, including:
 67-9                      (A)  the costs of the office of the attorney
67-10    general and other support agencies; and
67-11                      (B)  other indirect costs related to the
67-12    commission's performance of the service.
67-13          Sec. 2163.004.  CONTRACTING WITH ANOTHER STATE AGENCY OR
67-14    PRIVATE SOURCE.  (a)  If the commission determines that a service
67-15    can be performed with a comparable or better level of quality at a
67-16    savings to the state of at least 10 percent by using other state
67-17    agency providers of the service or a private commercial source, the
67-18    commission may contract with other state agency providers of the
67-19    services or private commercial sources for the service.
67-20          (b)  The commission maintains responsibility for providing a
67-21    contracted service and shall set measurable performance standards
67-22    for a contractor.
67-23          Sec. 2163.005.  PROHIBITION.  The commission may not begin
67-24    providing a service the General Services Commission did not provide
67-25    as of September 1, 2001, unless, after conducting an in-depth
67-26    analysis on cost in accordance with Section 2163.003 and on
67-27    availability of a service, the commission determines that it can
 68-1    perform the service at a higher level of quality or at a lower cost
 68-2    than other state agency providers of the service or private
 68-3    commercial sources.
 68-4                  ARTICLE 7.  ELECTRONIC COMMERCE; TRAVEL
 68-5          SECTION 7.01. Section 2155.062(a), Government Code, is
 68-6    amended to read as follows:
 68-7          (a)  In purchasing goods and services the commission may use,
 68-8    but is not limited to, the:
 68-9                (1)  contract purchase procedure;
68-10                (2)  multiple award contract procedure, including under
68-11    any schedules developed under Subchapter I; [or]
68-12                (3)  open market purchase procedure; or
68-13                (4)  reverse auction procedure.
68-14          SECTION 7.02. Sections 2155.083(c), (d), (f), (k), and (l),
68-15    Government Code, are amended to read as follows:
68-16          (c)  The commission [department] each business day shall
68-17    produce and post a business daily in an electronic format.  The
68-18    commission [department] shall post in the business daily
68-19    information as prescribed by this section about each state agency
68-20    procurement that will exceed $25,000 in value.  The commission
68-21    [department] shall also post in the business daily other
68-22    information relating to the business activity of the state that the
68-23    commission [department] considers to be of interest to the public.
68-24          (d)  The commission [department] shall make the business
68-25    daily available on the Internet [through its information service
68-26    known as the Texas Marketplace or through a suitable successor
68-27    information service that will make the information available on the
 69-1    Internet].  Each [The department and each] state agency shall
 69-2    cooperate with the commission in making the electronic business
 69-3    daily available.
 69-4          (f)  The commission [department] and other state agencies may
 69-5    not charge a fee designed to recover the cost of preparing and
 69-6    gathering the information that is published in the business daily.
 69-7    These costs are considered part of a procuring agency's
 69-8    responsibility to publicly inform potential bidders or offerors of
 69-9    its procurement opportunities.
69-10          (k)  Each state agency that will award a procurement contract
69-11    estimated to exceed $25,000 in value shall send to the commission
69-12    [department]:
69-13                (1)  the information the commission [department]
69-14    requires for posting in the state business daily under this
69-15    section; and
69-16                (2)  a notice when the procurement contract has been
69-17    awarded or when the state agency has decided to not make the
69-18    procurement.
69-19          (l)  The commission [department] may adopt rules, prescribe
69-20    forms, and require information to administer this section.  The
69-21    commission [department] shall send any proposed rules to the
69-22    governor, Legislative Budget Board, comptroller, and state auditor
69-23    [, and commission] for review and comment.  The commission's
69-24    [department's] rules shall require that each state agency[, to the
69-25    extent feasible,] shall directly and electronically post its own
69-26    notices or solicitation packages under Subsections (g) and (h).
69-27          SECTION 7.03. Sections 2156.003(a) and (b), Government Code,
 70-1    are amended to read as follows:
 70-2          (a)  The commission shall electronically maintain a bidders
 70-3    list that is integrated into the electronic procurement marketplace
 70-4    established by the Department of Information Resources.  If the
 70-5    commission determines that it is in the state's best interest, the
 70-6    commission may also maintain the list on paper.  The commission may
 70-7    [and] add or delete names from the list according to applicable
 70-8    standards provided by Section 2156.007.
 70-9          (b)  In addition to any requirements of Chapter 2177, an [An]
70-10    invitation to bid on an item to be purchased may be sent
70-11    electronically [only] to a vendor on the bidders list who has
70-12    expressed a desire to bid on that type of item.
70-13          SECTION 7.04.  Section 2171.052, Government Code, is amended
70-14    by adding Subsection (e) to read as follows:
70-15          (e)  The commission shall maintain at least one contract with
70-16    a provider of travel services that offers reservation and ticketing
70-17    services in person or by telephone.
70-18          SECTION 7.05.  Subchapter B, Chapter 2171, Government Code,
70-19    is amended by adding Section 2171.0521 to read as follows:
70-20          Sec. 2171.0521.  ONLINE RESERVATION AND TICKETING CAPABILITY.
70-21    (a)  The Department of Information Resources, in consultation with
70-22    the commission, shall establish and manage the electronic
70-23    infrastructure of an online travel reservation and ticketing
70-24    capability for use by state agencies participating in the
70-25    commission's contracts for travel services.  The commission shall
70-26    manage and administer the content of the online travel reservation
70-27    and ticketing capability.  The Department of Information Resources,
 71-1    in consultation with the commission, shall enter into contracts
 71-2    with private or public entities to establish a secure means by
 71-3    which a state employee traveling on state business may
 71-4    electronically participate in the commission's contracts for travel
 71-5    services. The Department of Information Resources shall attempt to
 71-6    establish an online capability that connects to the online
 71-7    reservation or ticketing systems of providers of travel services.
 71-8    Reservations must be made with a state-issued credit card or other
 71-9    form of payment authorized by the commission.
71-10          (b)  The preference in Section 2171.052(c) for a resident
71-11    entity of this state does not apply to this section.
71-12          (c)  A state agency may use the online reservation and
71-13    ticketing capability to make travel reservations for  a state
71-14    employee traveling on state business.
71-15          SECTION 7.06.  Chapter 2177, Government Code, is amended to
71-16    read as follows:
71-17                    CHAPTER 2177.  ELECTRONIC COMMERCE
71-18                     SUBCHAPTER A.  GENERAL PROVISIONS
71-19          Sec. 2177.001.  DEFINITIONS. In this chapter:
71-20                (1)  "Commission" means the Texas Procurement
71-21    Commission.
71-22                (2)  "Department" means the Department of Information
71-23    Resources.
71-24                (3)  "Electronic procurement system" means the
71-25    electronic system for procuring goods and services consisting of
71-26    the electronic procurement marketplace created under Subchapter B
71-27    and the electronic commerce network created under Subchapter C.
 72-1          Sec. 2177.002.  SMALL AND HISTORICALLY UNDERUTILIZED
 72-2    BUSINESSES.  The commission and the department shall ensure that
 72-3    small and historically underutilized businesses have maximum access
 72-4    to electronic commerce opportunities.
 72-5          Sec. 2177.003.  CONSULTATION.  The commission, at least
 72-6    quarterly, shall consult with the following entities to ensure that
 72-7    the electronic procurement system meets the needs of users of the
 72-8    system:
 72-9                (1)  the department;
72-10                (2)  the state auditor;
72-11                (3)  groups, including coordinating councils, created
72-12    by the commission to assist with electronic commerce initiatives;
72-13                (4)  the vendor advisory committee established under
72-14    Section 2155.081; and
72-15                (5)  other state agencies and local governments that
72-16    use the system.
72-17          Sec. 2177.004.  INTERFACE WITH TEXAS ONLINE.  (a)  The
72-18    department, with the assistance of the commission, shall assess
72-19    whether all or parts of the electronic procurement system should
72-20    interface with the project known as Texas Online that is a
72-21    continuation of the demonstration project authorized by Section
72-22    2054.062 as enacted by the 76th Legislature.
72-23          (b)  Based on the assessment, the department and the
72-24    commission may interface all or parts of the electronic procurement
72-25    system with Texas Online or use features of Texas Online to enhance
72-26    the electronic procurement system.
72-27             SUBCHAPTER B.  ELECTRONIC PROCUREMENT MARKETPLACE
 73-1          Sec. 2177.051.  ELECTRONIC PROCUREMENT MARKETPLACE. (a)  The
 73-2    department [commission] shall establish and manage the electronic
 73-3    infrastructure of an electronic procurement marketplace.  The
 73-4    commission shall manage and administer the content of the
 73-5    electronic procurement marketplace in accordance with this
 73-6    subtitle.  The department or commission, as appropriate, may enter
 73-7    into contracts with private or public entities to establish or
 73-8    maintain all or part of the databases comprising the marketplace,
 73-9    to the extent feasible, including contracts to procure hardware or
73-10    software.  The department or commission, as appropriate, shall
73-11    procure all goods and services related to the marketplace through a
73-12    competitive selection process appropriate for the good or service
73-13    being acquired.
73-14          (b)  The commission, in consultation with the department
73-15    [Department of Information Resources], shall define standards,
73-16    including keyword and product code standards, for the electronic
73-17    procurement marketplace.  The marketplace may contain:
73-18                (1)  information relevant to the state's standard
73-19    procurement specifications for goods and services;
73-20                (2)  information about vendors, including [information
73-21    from the centralized master bidders list and] vendor performance
73-22    information;
73-23                (3)  information about products, including product
73-24    testing results;
73-25                (4)  historical purchasing information, qualified
73-26    purchase lists, and trends; [and]
73-27                (5)  information about the availability of surplus
 74-1    property; and
 74-2                (6)  information about recycled, remanufactured, or
 74-3    environmentally sensitive commodities or services, including
 74-4    commodities or services identified under Section 2155.448.
 74-5          (c)  The commission shall integrate the business daily into
 74-6    the electronic procurement marketplace.
 74-7          (d)  The department [commission] may adopt rules relating to
 74-8    the design and use of the electronic procurement marketplace that
 74-9    concern the technical requirements of the marketplace.  The
74-10    commission may adopt rules relating to the use of the marketplace
74-11    for its intended purpose, including rules that require state
74-12    agencies to provide information for or receive information from the
74-13    marketplace.  The department and the commission shall consult in
74-14    adopting rules under this subsection.
74-15          (e) [(d)]  The commission may make state procurement
74-16    information available to political subdivisions through the
74-17    electronic procurement marketplace on a fee-for-service basis.  The
74-18    commission shall set the fees in an amount that recovers the
74-19    state's costs in providing the access to a political subdivision.
74-20          (f) [(e)]  Before developing a contract for the procurement
74-21    of a good or service, a state agency shall [may] use the electronic
74-22    procurement marketplace as prescribed by this chapter and
74-23    commission rules [to determine the most appropriate method for
74-24    acquiring the good or service].
74-25          (g) [(f)]  The marketplace may contain:
74-26                (1)  information relevant to the state's standard
74-27    procurement specifications for goods and services;
 75-1                (2)  information about vendors, including [information
 75-2    from the centralized master bidders list and] vendor performance
 75-3    information;
 75-4                (3)  information about products, including product
 75-5    testing results; and
 75-6                (4)  historical purchasing information, qualified
 75-7    purchase lists, and trends.
 75-8          (h) [(g)]  The department or commission may require
 75-9    information from a state agency for inclusion in the electronic
75-10    procurement marketplace.
75-11                SUBCHAPTER C.  ELECTRONIC COMMERCE NETWORK
75-12          Sec. 2177.101.  EXCEPTIONS.  (a)  This subchapter does not
75-13    apply to procurements for major construction projects, as defined
75-14    by the commission in consultation with the department, such as
75-15    procurements made under Chapter 223, Transportation Code.  In
75-16    defining a major construction project, the commission shall base
75-17    its decision on whether the nature of the project, any related
75-18    contract or specifications, or other considerations are of a type
75-19    that would make electronic procurement inappropriate.
75-20          (b)  The exceptions listed under Section 2166.003(a) apply as
75-21    exceptions to this subchapter.
75-22          Sec. 2177.102 [2177.002].  ELECTRONIC COMMERCE NETWORK. (a)
75-23    The department shall establish and manage the electronic
75-24    infrastructure of an electronic commerce network.  The commission
75-25    shall [establish and] manage and administer the content of the
75-26    electronic commerce network.  The [an] electronic commerce network,
75-27    to the extent feasible, shall allow [under which] the state's
 76-1    purchasing transactions with vendors to [can] be accomplished
 76-2    electronically by means of facsimile transmissions and on-line
 76-3    transmission of necessary information.  [The commission shall
 76-4    comply with applicable rules of the Department of Information
 76-5    Resources to the extent that they are based on the standard data
 76-6    protocol developed by the American National Standards Institute
 76-7    known as electronic data interchange or on other efficient
 76-8    standards as determined by the commission.]
 76-9          (b)  The department or commission, as appropriate, may enter
76-10    into contracts with one or more public or private entities to
76-11    establish or support various elements of the network.  The
76-12    department or commission, as appropriate, shall procure all goods
76-13    and services related to the network through the competitive
76-14    selection process appropriate for the good or service being
76-15    acquired.
76-16          (c)  The department, in consultation with the commission, may
76-17    provide for a gateway between the electronic procurement
76-18    marketplace and the electronic commerce network so that the
76-19    elements of a procurement transaction that are within state
76-20    government and the elements of a procurement transaction that
76-21    involve communication with a vendor may all be accomplished
76-22    electronically.
76-23          (d)  Each state agency [that is capable of participating in
76-24    the electronic commerce network] must participate in the network
76-25    and participate in contracts entered into by the department or the
76-26    commission for the establishment or support of the network.  The
76-27    department [commission] shall charge an agency a fee for network
 77-1    services provided to the agency by the department [commission] or
 77-2    by a contractor so that the cost of providing network services to
 77-3    an agency is paid by the agency.
 77-4          (e)  The commission may allow political subdivisions and
 77-5    other public entities that are members of the commission's
 77-6    cooperative purchasing program to participate in the electronic
 77-7    commerce network.  The department [commission] shall require that a
 77-8    participating political subdivision or other entity is charged a
 77-9    fee for the network services in the same manner that participating
77-10    state agencies are charged fees under Subsection (d).
77-11          (f)  The commission may also charge private businesses a fee
77-12    for accessing the network.
77-13          (g)  The department may adopt rules to administer this
77-14    section that concern the technical requirements of the network.
77-15    The commission may:
77-16                (1)  adopt rules relating to the use of the network for
77-17    its intended purpose [to administer this section]; and
77-18                (2)  require participating state agencies, political
77-19    subdivisions, and other public entities to designate a network
77-20    coordinator.
77-21          (h)  The department and the commission shall consult in
77-22    adopting rules under this section.
77-23          (i)  The requirements of this subchapter [section and Section
77-24    2177.003] are in addition to the requirements of other law relating
77-25    to the solicitation of bids, proposals, or expressions of interest
77-26    for a procurement by the commission or another state agency.  This
77-27    subchapter does [section and Section 2177.003 do] not affect any
 78-1    other law that requires the commission or another state agency to
 78-2    award a procurement contract through competitive bidding,
 78-3    competitive sealed proposals, or another method.
 78-4          Sec. 2177.103 [2177.003].  PARTICIPATION BY STATE AGENCIES IN
 78-5    ELECTRONIC COMMERCE NETWORK.  (a)  Each state agency shall send to
 78-6    the commission for posting on the electronic commerce network
 78-7    information on each procurement contract the commission, in
 78-8    consultation with the department, determines is appropriate for
 78-9    electronic procurement [the value of which will exceed the amount
78-10    of the agency's delegated purchasing authority under Section
78-11    2155.132]:
78-12                (1)  without regard to the source of funds the agency
78-13    will use for the procurement; and
78-14                (2)  including a procurement that is:
78-15                      (A)  a procurement by a state agency that is
78-16    otherwise exempt from the commission's purchasing authority;
78-17                      (B)  made under delegated purchasing authority
78-18    under Section 2155.131; or
78-19                      (C)  [related to a construction project; or]
78-20                      [(D)]  a procurement of professional or
78-21    consulting services.
78-22          (b)  The commission and each state agency shall include in
78-23    the information placed on the electronic commerce network[, to the
78-24    extent it is feasible,] the following information for each
78-25    procurement that the commission will make or that another state
78-26    agency will make under Subsection (a):
78-27                (1)  a description of the goods or services to be
 79-1    procured;
 79-2                (2)  the estimated quantity of the goods or services to
 79-3    be procured;
 79-4                (3)  if applicable, the previous price paid by the
 79-5    commission or another state agency for the same or similar goods or
 79-6    services;
 79-7                (4)  the estimated date on which the goods or services
 79-8    to be procured will be needed; and
 79-9                (5)  the name, business mailing address, and business
79-10    telephone number of the commission employee or other state agency
79-11    employee a person can contact to obtain all necessary information
79-12    relating to making a bid or proposal or other applicable expression
79-13    of interest for the procurement contract.
79-14          (c)  The commission shall also post on the electronic
79-15    commerce network other information relating to the business
79-16    activity of the state that the commission considers to be of
79-17    interest to the public.  Each state agency shall provide the
79-18    commission with information the commission requires for purposes of
79-19    this subsection in a format prescribed by the commission.
79-20          (d)  Each state agency that will award a contract that has
79-21    been placed on the electronic commerce network under Subsection (a)
79-22    shall place notification of the awarding of the contract on the
79-23    electronic commerce network.
79-24          SECTION 7.07. Section 2155.083(b), Government Code, is
79-25    repealed.
79-26          SECTION 7.08.  On October 1, 2001:
79-27                (1)  all functions and activities performed by the
 80-1    Texas Department of Economic Development relating to the business
 80-2    daily under Chapter 2155, Government Code, or other law immediately
 80-3    before that date are transferred to the Texas Procurement
 80-4    Commission;
 80-5                (2)  a rule or form adopted by the Texas Department of
 80-6    Economic Development that relates to the business daily under
 80-7    Chapter 2155, Government Code, or other law is a rule or form of
 80-8    the commission and remains in effect until altered by the
 80-9    commission;
80-10                (3)  a reference in law to the Texas Department of
80-11    Economic Development that relates to the business daily under
80-12    Chapter 2155, Government Code, or other law means the commission;
80-13                (4)  all rights and obligations of the Texas Department
80-14    of Economic Development related to the business daily under Chapter
80-15    2155, Government Code, or other law are transferred to the
80-16    commission; and
80-17                (5)  all property, including records, in the custody of
80-18    the Texas Department of Economic Development related to the
80-19    business daily under Chapter 2155, Government Code, or other law is
80-20    transferred to the commission.
80-21          SECTION 7.09.  The Department of Information Resources shall
80-22    have the online reservation and ticketing capability created under
80-23    Section 2171.0521, Government Code, as added by this Act, fully
80-24    operational by September 1, 2002.
80-25                        ARTICLE 8.  STATE CEMETERY
80-26          SECTION 8.01. Section 2165.256(a), Government Code, is
80-27    amended to read as follows:
 81-1          (a)  The State Cemetery Committee shall oversee all
 81-2    operations of the State Cemetery.  The committee shall develop a
 81-3    budget for the operations of the commission   relating to the State
 81-4    Cemetery and determine the salary of employees of the Texas
 81-5    building division of the State Preservation Board whose duties
 81-6    primarily relate to the operation of the State Cemetery.
 81-7          SECTION 8.02. Section 2165.2561, Government Code, is amended
 81-8    by amending Subsections (a), (k), and (l) and adding Subsections
 81-9    (n)-(u) to read as follows:
81-10          (a)  The State Cemetery Committee is composed of:
81-11                (1)  three voting members appointed as follows:
81-12                      (A)  one member of the general public appointed
81-13    by the governor;
81-14                      (B)  one member of the general public appointed
81-15    by the governor from a list submitted by the lieutenant governor;
81-16    and
81-17                      (C)  one member of the general public appointed
81-18    by the governor from a list submitted by the speaker of the house
81-19    of representatives; and
81-20                (2)  three nonvoting advisory members appointed as
81-21    follows:
81-22                      (A)  one employee of the Texas Historical
81-23    Commission appointed by the executive director of the Texas
81-24    Historical Commission;
81-25                      (B)  one employee of the State Preservation Board
81-26    who performs duties related to the functions of the commission and
81-27    is [General Services Commission] appointed by the executive
 82-1    director of the State Preservation Board [General Services
 82-2    Commission]; and
 82-3                      (C)  one employee of the Parks and Wildlife
 82-4    Department appointed by the executive director of the Parks and
 82-5    Wildlife Department.
 82-6          (k)  The legislature shall separately appropriate money to
 82-7    the committee within the appropriations to the State Preservation
 82-8    Board for all matters relating to the operation of the State
 82-9    Cemetery.  [At the direction of the committee, the General Services
82-10    Commission shall spend money appropriated to or budgeted by the
82-11    General Services Commission for State Cemetery purposes.]
82-12    Activities relating to maintenance of the State Cemetery grounds
82-13    and monuments shall conform to guidelines for historic preservation
82-14    submitted to the committee by the Texas Historical Commission.
82-15          (l)  Funds appropriated to the State Preservation Board
82-16    [General Services Commission] may be transferred by interagency
82-17    contract for the performance of, at the direction of the committee,
82-18    an act related to the State Cemetery.
82-19          (n)  It is a ground for removal from the committee that a
82-20    member:
82-21                (1)  does not have at the time of taking office the
82-22    qualifications required by Subsection (a);
82-23                (2)  does not maintain during service on the committee
82-24    the qualifications required by Subsection (a);
82-25                (3)  is ineligible for membership under Subsection (g)
82-26    or (h);
82-27                (4)  cannot, because of illness or disability,
 83-1    discharge the member's duties for a substantial part of the
 83-2    member's term; or
 83-3                (5)  is absent from more than half of the regularly
 83-4    scheduled committee meetings that the member is eligible to attend
 83-5    during a calendar year without an excuse approved by  a majority
 83-6    vote of the committee.
 83-7          (o)  The validity of an action of the committee is not
 83-8    affected by the fact that it is taken when a ground for removal of
 83-9    a committee member exists.
83-10          (p)  If the executive director of the State Preservation
83-11    Board has knowledge that a potential ground for removal exists, the
83-12    executive director shall notify the presiding officer of the
83-13    committee of the potential ground.  The presiding officer shall
83-14    then notify the governor and the attorney general that a potential
83-15    ground for removal exists.  If the potential ground for removal
83-16    involves the presiding officer, the executive director shall notify
83-17    the next highest ranking officer of the committee, who shall then
83-18    notify the governor and the attorney general that a potential
83-19    ground for removal exists.
83-20          (q)  The executive director of the State Preservation Board
83-21    or the executive director's designee shall provide to members of
83-22    the committee, as often as necessary, information regarding the
83-23    requirements for office under this chapter, including information
83-24    regarding a person's responsibilities under applicable laws
83-25    relating to standards of conduct for state officers.
83-26          (r)  A person who is appointed to and qualifies for office as
83-27    a member of the committee may not vote, deliberate, or be counted
 84-1    as a member in attendance at a meeting of the committee until the
 84-2    person completes a training program that complies with this
 84-3    subsection.  The training program must provide the person with
 84-4    information regarding:
 84-5                (1)  the legislation that created the State Cemetery
 84-6    and the State Cemetery Committee;
 84-7                (2)  the programs operated by the committee;
 84-8                (3)  the role and functions of the committee;
 84-9                (4)  the rules of the committee, with an emphasis on
84-10    any rules that relate to disciplinary and investigatory authority;
84-11                (5)  the current budget for the committee;
84-12                (6)  the results of the most recent formal audit of
84-13    cemetery operations;
84-14                (7)  the requirements of:
84-15                      (A)  the open meetings law, Chapter 551;
84-16                      (B)  the public information law, Chapter 552;
84-17                      (C)  the administrative procedure law, Chapter
84-18    2001; and
84-19                      (D)  other laws relating to public officials,
84-20    including conflict-of-interest laws; and
84-21                (8)  any applicable ethics policies adopted by the
84-22    commission, the committee, or the Texas Ethics Commission.
84-23          (s)  A person appointed to the committee is entitled to
84-24    reimbursement, as provided by Chapter 660 and the General
84-25    Appropriations Act, for the travel expenses incurred in attending
84-26    the training program regardless of whether the attendance at the
84-27    program occurs before or after the person qualifies for office.
 85-1          (t)  The committee shall develop and implement policies that
 85-2    clearly separate the policymaking responsibilities of the committee
 85-3    and the management responsibilities of the executive director of
 85-4    the State Preservation Board and staff of the cemetery.
 85-5          (u)  The committee shall develop and implement policies that
 85-6    provide the public with a reasonable opportunity to appear before
 85-7    the committee and to speak on any issue under the jurisdiction of
 85-8    the committee.
 85-9          SECTION 8.03. (a)  The changes in law made by this Act in the
85-10    prohibitions and qualifications applying to members of the State
85-11    Cemetery Committee do not affect the entitlement of a member
85-12    serving on the committee immediately before September 1, 2001, to
85-13    continue to serve and function as a member of the committee for the
85-14    remainder of the member's term.  The changes in law apply only to a
85-15    member appointed on or after September 1, 2001. This Act does not
85-16    prohibit a person who is a member of the State Cemetery Committee
85-17    immediately before September 1, 2001, from being reappointed as a
85-18    committee member if the person has the qualifications required for
85-19    the position under Chapter 2165, Government Code, as amended by
85-20    this Act.
85-21          (b)  Section 2165.2561(r), Government Code, as added by this
85-22    Act, does not apply to a member of the State Cemetery Committee
85-23    until March 1, 2002.
85-24          SECTION 8.04. The changes in law made by this Act to Section
85-25    2165.2561(k), Government Code, apply beginning with the fiscal year
85-26    beginning on September 1, 2003.
 86-1             ARTICLE 9.  CONTRACTING METHODS FOR CONSTRUCTION
 86-2                            OF STATE FACILITIES
 86-3          SECTION 9.01. Subchapter F, Chapter 2166, Government Code, is
 86-4    amended by adding Section 2166.2511 to read as follows:
 86-5          Sec. 2166.2511.  DEFINITIONS.  In this subchapter:
 86-6                (1)  "Architect" means an individual registered as an
 86-7    architect under Chapter 478, Acts of the 45th Legislature, Regular
 86-8    Session, 1937 (Article 249a, Vernon's Texas Civil Statutes).
 86-9                (2)  "Contractor" in the context of a contract for a
86-10    project means a sole proprietorship, partnership, corporation, or
86-11    other legal entity that assumes the risk for constructing,
86-12    rehabilitating, altering, or repairing all or part of the project
86-13    at the contracted price.
86-14                (3)  "Engineer" means an individual registered as a
86-15    professional engineer under The Texas Engineering Practice Act
86-16    (Article 3271a, Vernon's Texas Civil Statutes).
86-17                (4)  "Facility" means buildings or structures the
86-18    design and construction of which is governed by accepted building
86-19    codes.  The term does not include:
86-20                      (A)  highways, roads, streets, bridges,
86-21    utilities, water supply projects, water plants, wastewater plants,
86-22    water and wastewater distribution or conveyance facilities,
86-23    wharves, docks, airport runways and taxiways, drainage projects, or
86-24    related types of projects associated with civil engineering
86-25    construction; or
86-26                      (B)  buildings or structures that are incidental
86-27    to projects that are primarily civil engineering construction
 87-1    projects.
 87-2                (5)  "Fee" in the context of a contract for a project
 87-3    means the payment a construction manager receives for its overhead
 87-4    and profit in performing its services.
 87-5                (6)  "General conditions" in the context of a contract
 87-6    for a project means on-site management, administrative personnel,
 87-7    insurance, bonds, equipment, utilities, and incidental work,
 87-8    including minor field labor and materials.
 87-9          SECTION 9.02.  Subchapter F, Chapter 2166, Government Code,
87-10    is amended by adding Section 2166.2525 to read as follows:
87-11          Sec. 2166.2525.  DETERMINATION OF CONTRACTING METHOD.  The
87-12    commission shall adopt rules that determine the circumstances for
87-13    use of each method of contracting allowed under this subchapter for
87-14    design and construction services.  In developing the rules, the
87-15    commission shall solicit advice and comment from design and
87-16    construction professionals regarding the criteria the commission
87-17    will use in determining which contracting method is best suited for
87-18    a project.
87-19          SECTION 9.03.  Subchapter F, Chapter 2166, Government Code,
87-20    is amended by adding Section 2166.2526 to read as follows:
87-21          Sec. 2166.2526.  EVALUATION OF BIDS AND PROPOSALS FOR
87-22    CONSTRUCTION SERVICES.  (a)  For each project, the commission must,
87-23    before advertising, establish which method of contracting provides
87-24    the best value for the commission or using agency.
87-25          (b)  Under each method of contracting, the commission shall
87-26    base its selection among the offerors on criteria established by
87-27    the commission.  The commission shall publish in the request for
 88-1    bids, proposals, or qualifications all of the criteria that will be
 88-2    used to evaluate the offerors.
 88-3          (c)  The commission shall document the basis of its selection
 88-4    of an offeror and shall make the evaluations public not later than
 88-5    the seventh day after the date the contract is awarded.
 88-6          SECTION 9.04.  Section 2166.253, Government Code, is amended
 88-7    to read as follows:
 88-8          Sec. 2166.253.  LOWEST AND BEST BID METHOD [BIDDING
 88-9    PROCEDURES].  (a)  The commission may use the lowest and best bid
88-10    method for a project.  In using that method, the commission shall
88-11    follow the procedures provided by Subsections (b)-(g).
88-12          (b)  After final approval of a project's working plans and
88-13    specifications and their acceptance by a using agency, the
88-14    commission shall advertise in one newspaper of general circulation
88-15    and the Texas Register for bids or proposals for the construction
88-16    of and related work on the project.
88-17          (c) [(b)]  Except as provided by Subsection (d) [(c)], the
88-18    commission shall allow bidders not less than 30 days after the date
88-19    the commission issues the bid documents to respond to an invitation
88-20    to bid.
88-21          (d) [(c)]  The commission shall allow bidders for small
88-22    construction projects not less than 14 days after the date the
88-23    commission issues the bid documents to respond to an invitation to
88-24    bid.
88-25          (e) [(d)]  The commission may shorten the time for response
88-26    to prevent undue additional costs to a state agency or, for
88-27    emergency projects, to prevent or remove a hazard to life or
 89-1    property.
 89-2          (f)  A contract shall be awarded to the qualified bidder
 89-3    making the lowest and best bid in accordance with the law on
 89-4    awarding a state contract.
 89-5          (g)  The commission may reject all bids.
 89-6          SECTION 9.05.  Subchapter F, Chapter 2166, Government Code,
 89-7    is amended by adding Section 2166.2531 to read as follows:
 89-8          Sec. 2166.2531.  DESIGN-BUILD METHOD.  (a)  In this section:
 89-9                (1)  "Design-build contract" means a single contract
89-10    with a design-build firm for the design and construction of a
89-11    facility.
89-12                (2)  "Design-build firm" means a partnership,
89-13    corporation, or other legal entity or team that includes an
89-14    engineer or architect and a builder qualified to engage in building
89-15    construction in this state.
89-16                (3)  "Design criteria package" means a set of documents
89-17    that provides sufficient information to permit a design-build firm
89-18    to prepare a response to the commission's request for
89-19    qualifications and any additional information requested, including
89-20    criteria for selection.  The design criteria package must specify
89-21    criteria the commission considers necessary to describe the project
89-22    and may include, as appropriate, the legal description of the site,
89-23    survey information concerning the site, interior space
89-24    requirements, special material requirements, material quality
89-25    standards, conceptual criteria for the project, special equipment
89-26    requirements, cost or budget estimates, time schedules, quality
89-27    assurance and quality control requirements, site development
 90-1    requirements, applicable codes and ordinances, provisions for
 90-2    utilities, parking requirements, or any other requirement, as
 90-3    applicable.
 90-4          (b)  The commission may use the design-build method for a
 90-5    project.  In using that method and in entering into a contract for
 90-6    the services of a design-build firm, the commission and the
 90-7    design-build firm shall follow the procedures provided by
 90-8    Subsections (c)-(k).
 90-9          (c)  The commission shall designate an engineer or architect
90-10    to act as its representative.  If the commission's engineer or
90-11    architect is not a full-time employee of the commission, any
90-12    engineer or architect designated shall be selected on the basis of
90-13    demonstrated competence and qualifications in accordance with
90-14    Subchapter A, Chapter 2254.
90-15          (d)  The commission shall prepare a request for
90-16    qualifications that includes general information on the project
90-17    site, project scope, budget, special systems, selection criteria,
90-18    and other information that may assist potential design-build firms
90-19    in submitting proposals for the project.  The commission shall also
90-20    prepare a design criteria package that includes more detailed
90-21    information on the project.  If the preparation of the design
90-22    criteria package requires engineering or architectural services
90-23    that constitute the practice of engineering within the meaning of
90-24    The Texas Engineering Practice Act (Article 3271a, Vernon's Texas
90-25    Civil Statutes) or the practice of architecture within the meaning
90-26    of Chapter 478, Acts of the 45th Legislature, Regular Session, 1937
90-27    (Article 249a, Vernon's Texas Civil Statutes), those services shall
 91-1    be provided in accordance with the applicable law.
 91-2          (e)  The commission or its representative shall publish the
 91-3    request for qualifications in a manner prescribed by the
 91-4    commission.
 91-5          (f)(1)  The commission or its representative shall evaluate
 91-6    statements of qualifications and select a design-build firm in two
 91-7    phases.
 91-8                (2)  In phase one, the commission or its representative
 91-9    shall prepare a request for qualifications and evaluate each
91-10    offeror's experience, technical competence, and capability to
91-11    perform, the past performance of the offeror's team and members of
91-12    the team, and other appropriate factors submitted by the team or
91-13    firm in response to the request for qualifications, except that
91-14    cost-related or price-related evaluation factors are not permitted.
91-15    Each offeror must certify to the commission that each engineer or
91-16    architect that is a member of its team was selected based on
91-17    demonstrated competence and qualifications.  The commission or its
91-18    representative shall qualify a maximum of five offerors to submit
91-19    additional information and, if the commission or its representative
91-20    chooses, to interview for final selection.
91-21                (3)  In phase two, the commission or its representative
91-22    shall evaluate the information submitted by the offerors on the
91-23    basis of the selection criteria stated in the request for
91-24    qualifications and the results of any interview.  The commission or
91-25    its representative may request additional information regarding
91-26    demonstrated competence and qualifications, considerations of the
91-27    safety and long-term durability of the project, the feasibility of
 92-1    implementing the project as proposed, the ability of the offeror to
 92-2    meet schedules, costing methodology, or other factors as
 92-3    appropriate.  The commission or its representative may not require
 92-4    offerors to submit detailed engineering or architectural designs as
 92-5    part of the proposal.  The commission or its representative shall
 92-6    rank each proposal submitted on the basis of the criteria specified
 92-7    in the request for qualifications.  The commission or its
 92-8    representative shall select the design-build firm that submits the
 92-9    proposal offering the best value for the commission or using agency
92-10    on the basis of the published selection criteria and on its ranking
92-11    evaluations.  The commission or its representative shall first
92-12    attempt to negotiate a contract with the selected offeror.  If the
92-13    commission or its representative is unable to negotiate a
92-14    satisfactory contract with the selected offeror, the commission
92-15    shall, formally and in writing, end all negotiations with that
92-16    offeror and proceed to negotiate with the next offeror in the order
92-17    of the selection ranking until a contract is reached or
92-18    negotiations with all ranked offerors end.
92-19          (g)  Following selection of a design-build firm under
92-20    Subsection (f), that firm's engineers or architects shall complete
92-21    the design, submitting all design elements for review and
92-22    determination of scope compliance by the commission's engineer or
92-23    architect before or concurrently with the beginning of
92-24    construction.
92-25          (h)  An engineer shall have responsibility for compliance
92-26    with the engineering design requirements and all other applicable
92-27    requirements of The Texas Engineering Practice Act (Article 3271a,
 93-1    Vernon's Texas Civil Statutes).  An architect shall have
 93-2    responsibility for compliance with the requirements of Chapter 478,
 93-3    Acts of the 45th Legislature, Regular Session, 1937 (Article 249a,
 93-4    Vernon's Texas Civil Statutes).
 93-5          (i)  The commission shall provide or contract for,
 93-6    independently of the design-build firm, the inspection services,
 93-7    the testing of construction materials engineering, and the
 93-8    verification testing services necessary for acceptance of the
 93-9    facility by the commission.  The commission shall select those
93-10    services for which it contracts in accordance with Section
93-11    2254.004.
93-12          (j)  The design-build firm shall supply a signed and sealed
93-13    set of construction documents for the project to the commission at
93-14    the conclusion of construction.
93-15          (k)  A payment or performance bond is not required for, and
93-16    may not provide coverage for, the portion of a design-build
93-17    contract under this section that includes design services only.  If
93-18    a fixed contract amount or guaranteed maximum price has not been
93-19    determined at the time a design-build contract is awarded, the
93-20    penal sums of the performance and payment bonds delivered to the
93-21    commission shall each be in an amount equal to the project budget,
93-22    as specified in the design criteria package.  The design-build firm
93-23    shall deliver the bonds not later than the 10th day after the date
93-24    the design-build firm executes the contract unless the design-build
93-25    firm furnishes a bid bond or other financial security acceptable to
93-26    the commission to ensure that the design-build firm will furnish
93-27    the required performance and payment bonds when a guaranteed
 94-1    maximum price is established.
 94-2          SECTION 9.06.  Subchapter F, Chapter 2166, Government Code,
 94-3    is amended by adding Section 2166.2532 to read as follows:
 94-4          Sec. 2166.2532.  CONSTRUCTION MANAGER-AT-RISK METHOD.
 94-5    (a)  The commission may use the construction manager-at-risk method
 94-6    for a project.  In using that method and in entering into a
 94-7    contract for the services of a construction manager-at-risk, the
 94-8    commission shall follow the procedures prescribed by this section.
 94-9          (b)  A construction manager-at-risk is a sole proprietorship,
94-10    partnership, corporation, or other legal entity that assumes the
94-11    risk for construction, rehabilitation, alteration, or repair of a
94-12    facility at the contracted price as a general contractor and
94-13    provides consultation to the commission regarding construction
94-14    during and after the design of the facility.
94-15          (c)  Before or concurrently with selecting a construction
94-16    manager-at-risk, the commission shall select or designate an
94-17    engineer or architect who shall prepare the construction documents
94-18    for the project and who has full responsibility for complying with
94-19    The Texas Engineering Practice Act (Article 3271a, Vernon's Texas
94-20    Civil Statutes) or Chapter 478, Acts of the 45th Legislature,
94-21    Regular Session, 1937 (Article 249a, Vernon's Texas Civil
94-22    Statutes), as applicable.  If the engineer or architect is not a
94-23    full-time employee of the commission, the commission shall select
94-24    the engineer or architect on the basis of demonstrated competence
94-25    and qualifications as provided by Section 2254.004.  The
94-26    commission's engineer or architect for a project may not serve,
94-27    alone or in combination with another, as the construction
 95-1    manager-at-risk.
 95-2          (d)  The commission shall provide or contract for,
 95-3    independently of the construction manager-at-risk, the inspection
 95-4    services, the testing of construction materials engineering, and
 95-5    the verification testing services necessary for acceptance of the
 95-6    facility by the commission.  The commission shall select those
 95-7    services for which it contracts in accordance with Section
 95-8    2254.004.
 95-9          (e)  The commission shall select the construction
95-10    manager-at-risk in either a one-step or two-step process.  The
95-11    commission shall prepare a request for proposals, in the case of a
95-12    one-step process, or a request for qualifications, in the case of a
95-13    two-step process, that includes general information on the project
95-14    site, project scope, schedule, selection criteria, estimated
95-15    budget, and the time and place for receipt of proposals or
95-16    qualifications, as applicable; a statement as to whether the
95-17    selection process is a one-step or two-step process; and other
95-18    information that may assist the commission in its selection of a
95-19    construction manager-at-risk.  The commission shall state the
95-20    selection criteria in the request for proposals or qualifications,
95-21    as applicable.  The selection criteria may include the offeror's
95-22    experience, past performance, safety record, proposed personnel and
95-23    methodology, and other appropriate factors that demonstrate the
95-24    capability of the construction manager-at-risk.  If a one-step
95-25    process is used, the commission may request, as part of the
95-26    offeror's proposal, proposed fees and prices for fulfilling the
95-27    general conditions.  If a two-step process is used, the commission
 96-1    may not request fees or prices in step one.  In step two, the
 96-2    commission may request that five or fewer offerors, selected solely
 96-3    on the basis of qualifications, provide additional information,
 96-4    including the construction manager-at-risk's proposed fee and its
 96-5    price for fulfilling the general conditions.
 96-6          (f)  The commission shall publish the request for
 96-7    qualifications in a manner prescribed by the commission.
 96-8          (g)  At each step, the commission shall receive, publicly
 96-9    open, and read aloud the names of the offerors.  At the appropriate
96-10    step, the commission shall also read aloud the fees and prices, if
96-11    any, stated in each proposal as the proposal is opened.  Within 45
96-12    days after the date of opening the proposals, the commission or its
96-13    representative shall evaluate and rank each proposal submitted in
96-14    relation to the criteria set forth in the request for proposals.
96-15          (h)  The commission or its representative shall select the
96-16    offeror that submits the proposal that offers the best value for
96-17    the commission or using agency based on the published selection
96-18    criteria and on its ranking evaluation.  The commission or its
96-19    representative shall first attempt to negotiate a contract with the
96-20    selected offeror.  If the commission or its representative is
96-21    unable to negotiate a satisfactory contract with the selected
96-22    offeror, the commission or its representative shall, formally and
96-23    in writing, end negotiations with that offeror and proceed to
96-24    negotiate with the next offeror in the order of the selection
96-25    ranking until a contract is reached or negotiations with all ranked
96-26    offerors end.
96-27          (i)  A construction manager-at-risk shall publicly advertise,
 97-1    in the manner prescribed by the commission, and receive bids or
 97-2    proposals from trade contractors or subcontractors for the
 97-3    performance of all major elements of the work other than the minor
 97-4    work that may be included in the general conditions.  A
 97-5    construction manager-at-risk may seek to perform portions of the
 97-6    work itself if the construction manager-at-risk submits its bid or
 97-7    proposal for those portions of the work in the same manner as all
 97-8    other trade contractors or subcontractors and if the commission
 97-9    determines that the construction manager-at-risk's bid or proposal
97-10    provides the best value for the commission or using agency.
97-11          (j)  The construction manager-at-risk and the commission or
97-12    its representative shall review all trade contractor or
97-13    subcontractor bids or proposals in a manner that does not disclose
97-14    the contents of the bid or proposal during the selection process to
97-15    a person not employed by the construction manager-at-risk,
97-16    engineer, architect, or commission.  All bids or proposals shall be
97-17    made public after the award of the contract or within seven days
97-18    after the date of final selection of bids and proposals, whichever
97-19    is later.
97-20          (k)  If the construction manager-at-risk reviews, evaluates,
97-21    and recommends to the commission a bid or proposal from a trade
97-22    contractor or subcontractor but the commission requires another bid
97-23    or proposal to be accepted, the commission shall compensate the
97-24    construction manager-at-risk by a change in price, time, or
97-25    guaranteed maximum cost for any additional cost and risk that the
97-26    construction manager-at-risk may incur because of the commission's
97-27    requirement that another bid or proposal be accepted.
 98-1          (l)  If a selected trade contractor or subcontractor defaults
 98-2    in the performance of its work or fails to execute a subcontract
 98-3    after being selected in accordance with this section, the
 98-4    construction manager-at-risk may, without advertising, itself
 98-5    fulfill the contract requirements or select a replacement trade
 98-6    contractor or subcontractor to fulfill the contract requirements.
 98-7          (m)  If a fixed contract amount or guaranteed maximum price
 98-8    has not been determined at the time the contract is awarded, the
 98-9    penal sums of the performance and payment bonds delivered to the
98-10    commission must each be in an amount equal to the project budget,
98-11    as set forth in the request for qualifications.  The construction
98-12    manager-at-risk shall deliver the bonds not later than the 10th day
98-13    after the date the construction manager-at-risk executes the
98-14    contract unless the construction manager-at-risk furnishes a bid
98-15    bond or other financial security acceptable to the commission to
98-16    ensure that the construction manager-at-risk will furnish the
98-17    required performance and payment bonds when a guaranteed maximum
98-18    price is established.
98-19          SECTION 9.07.  Subchapter F, Chapter 2166, Government Code,
98-20    is amended by adding Section 2166.2533 to read as follows:
98-21          Sec. 2166.2533.  COMPETITIVE SEALED PROPOSAL METHOD.
98-22    (a)  The commission may select a contractor for a project using the
98-23    competitive sealed proposal method prescribed by this section.
98-24          (b)  The commission shall select or designate an engineer or
98-25    architect to prepare construction documents for the project.  The
98-26    selected or designated engineer or architect has full
98-27    responsibility for complying with The Texas Engineering Practice
 99-1    Act (Article 3271a, Vernon's Texas Civil Statutes) or Chapter 478,
 99-2    Acts of the 45th Legislature, Regular Session, 1937 (Article 249a,
 99-3    Vernon's Texas Civil Statutes), as applicable.  If the engineer or
 99-4    architect is not a full-time employee of the commission, the
 99-5    commission shall select the engineer or architect on the basis of
 99-6    demonstrated competence and qualifications as provided by Section
 99-7    2254.004.
 99-8          (c)  The commission shall provide or contract for,
 99-9    independently of the contractor, the inspection services, the
99-10    testing of construction materials engineering, and the verification
99-11    testing services necessary for acceptance of the facility by the
99-12    commission.  The commission shall select those services for which
99-13    it contracts in accordance with Section 2254.004 and shall identify
99-14    them in the request for proposals.
99-15          (d)  The commission shall prepare a request for competitive
99-16    sealed proposals that includes construction documents, selection
99-17    criteria, estimated budget, project scope, schedule, and other
99-18    information that contractors may require to respond to the request.
99-19    The commission shall state in the request for proposals all of the
99-20    selection criteria that will be used in selecting the successful
99-21    offeror.
99-22          (e)  The commission shall publish notice of the request for
99-23    proposals in a manner prescribed by the commission.
99-24          (f)  The commission shall receive, publicly open, and read
99-25    aloud the names of the offerors and, if any are required to be
99-26    stated, all prices stated in each proposal.  Within 45 days after
99-27    the date of opening the proposals, the commission shall evaluate
 100-1   and rank each proposal submitted in relation to the published
 100-2   selection criteria.
 100-3         (g)  The commission shall select the offeror that offers the
 100-4   best value for the commission or using agency based on the
 100-5   published selection criteria and on its ranking evaluation.  The
 100-6   commission shall first attempt to negotiate a contract with the
 100-7   selected offeror.  The commission and its engineer or architect may
 100-8   discuss with the selected offeror options for a scope or time
 100-9   modification and any price change associated with the modification.
100-10   If the commission is unable to reach a contract with the selected
100-11   offeror, the commission shall, formally and in writing, end
100-12   negotiations with that offeror and proceed to the next offeror in
100-13   the order of the selection ranking until a contract is reached or
100-14   all proposals are rejected.
100-15         (h)  In determining the best value for the commission or
100-16   using agency, the commission is not restricted to considering price
100-17   alone but may consider any other factor stated in the selection
100-18   criteria.
100-19         SECTION 9.08.  Section 2166.255, Government Code, is amended
100-20   to read as follows:
100-21         Sec. 2166.255.  AMOUNT [AWARD] OF CONTRACT.  [(a)  A contract
100-22   shall be awarded to the qualified bidder making the lowest and best
100-23   bid in accordance with the law on awarding a state contract.]
100-24         [(b)  The commission may reject all bids.]
100-25         [(c)]  A contract may not be awarded for an amount greater
100-26   than the amount that the comptroller certifies to be available for
100-27   the project.
 101-1         SECTION 9.09.  (a)  The changes in law made by this Act to
 101-2   the General Services Commission's contract procedures apply only to
 101-3   a construction project for which the General Services Commission or
 101-4   the Texas Building Commission first advertises or otherwise
 101-5   solicits bids, proposals, offers, or qualifications, as applicable,
 101-6   on or after September 1, 2001.
 101-7         (b)  A construction project for which the General Services
 101-8   Commission first advertised or otherwise solicited bids, proposals,
 101-9   offers, or qualifications, as applicable, before September 1, 2001,
101-10   is governed by the law as it existed immediately before the
101-11   effective date of this Act, and that law is continued in effect for
101-12   that purpose.
101-13               ARTICLE 10.  LEASING OF STATE OFFICE SPACE
101-14         SECTION 10.01.  Subchapter A, Chapter 2167, Government Code,
101-15   is amended by adding Section 2167.0021 to read as follows:
101-16         Sec. 2167.0021.  BEST VALUE STANDARD FOR LEASE OF SPACE.  (a)
101-17   The commission shall lease space for the use of a state agency on
101-18   the basis of obtaining the best value for the state.
101-19         (b)  The commission shall adopt rules establishing guidelines
101-20   for the determination of best value in a lease contract.  In
101-21   determining the best value, the commission may consider:
101-22               (1)  the cost of the lease contract;
101-23               (2)  the condition and location of lease space;
101-24               (3)  utility costs;
101-25               (4)  access to public transportation;
101-26               (5)  parking availability;
101-27               (6)  security;
 102-1               (7)  telephone service availability;
 102-2               (8)  indicators of probable lessor performance under
 102-3   the contract, such as the lessor's financial resources and the
 102-4   lessor's experience;
 102-5               (9)  compliance with the architectural barriers law,
 102-6   Article 9102, Revised Statutes; and
 102-7               (10)  other relevant factors.
 102-8         (c)  This section does not prohibit the commission from
 102-9   leasing space from the offeror that offers the space at the lowest
102-10   cost if the commission determines that doing so obtains the best
102-11   value for the state.
102-12         SECTION 10.02.  Section 2167.003, Government Code, is amended
102-13   to read as follows:
102-14         Sec. 2167.003.  FIRST CONSIDERATION TO HISTORIC STRUCTURE.
102-15   (a)  In leasing space for the use of a state agency, the commission
102-16   or the private brokerage or real estate firm assisting the
102-17   commission shall give first consideration to a building that is
102-18   designated as a historic structure under Section 442.001 or to a
102-19   building that has been designated a landmark by a local governing
102-20   authority, if:
102-21               (1)  the building meets requirements and
102-22   specifications; and
102-23               (2)  the cost is not substantially higher than the cost
102-24   for other available buildings that meet requirements and
102-25   specifications.
102-26         (b)  When it considers leasing space for a state agency, the
102-27   commission or the private brokerage or real estate firm assisting
 103-1   the commission shall notify each individual and organization that
 103-2   is:
 103-3               (1)  on a list furnished to the commission by the Texas
 103-4   Historical Commission under Section 442.005; and
 103-5               (2)  in the county in which the commission is
 103-6   considering leasing space.
 103-7         (c)  At the end of a biennium, the commission shall report to
 103-8   the legislature the commission's reasons for rejecting during the
 103-9   biennium the lease of any historic structure that was offered as
103-10   [in a bid to] lease space to the state.
103-11         SECTION 10.03.  Section 2167.005, Government Code, is amended
103-12   to read as follows:
103-13         Sec. 2167.005.  DELEGATION OF AUTHORITY TO STATE AGENCIES
103-14   [INSTITUTIONS OF HIGHER EDUCATION].  (a)  The commission may
103-15   delegate to a state agency, including an institution of higher
103-16   education, the authority to enter into lease contracts for space
103-17   [for which payments are not made from money appropriated from the
103-18   general revenue fund].
103-19         (b)  Any reports on the lease contracts made [by an
103-20   institution of higher education] under this delegated authority
103-21   shall be required annually.
103-22         SECTION 10.04.  Section 2167.006(b), Government Code, is
103-23   amended to read as follows:
103-24         (b)  A state agency, including an [An] institution of higher
103-25   education, may not enter a lease contract under Section 2167.005
103-26   unless the agency [institution] complies with the architectural
103-27   barriers law, Article 9102, Revised Statutes.
 104-1         SECTION 10.05.  Section 2167.052, Government Code, is amended
 104-2   by amending Subsection (a) and adding Subsection (c) to read as
 104-3   follows:
 104-4         (a)  Space may be leased from a private source through:
 104-5               (1)  competitive bidding; [or]
 104-6               (2)  competitive sealed proposals under Section
 104-7   2167.054; or
 104-8               (3)  direct negotiation.
 104-9         (c)  The commission shall use the method for leasing space
104-10   that provides the best value for the state.
104-11         SECTION 10.06.  Sections 2167.053(a) and (c), Government
104-12   Code, are amended to read as follows:
104-13         (a)  When space is leased through competitive bidding, the
104-14   commission shall determine the [lowest and best] bid that provides
104-15   the best value for the state after considering moving costs, the
104-16   cost of time lost in moving, the cost of telecommunications
104-17   services, and other relevant factors.
104-18         (c)  If, after review of the bids and evaluation of all
104-19   relevant factors, the leasing state agency's opinion is that the
104-20   bid selected by the commission is not the [lowest and best] bid
104-21   that provides the best value for the state, it may file with the
104-22   commission a written recommendation that the award be made to a
104-23   bidder other than the commission's recommended bidder.  The leasing
104-24   state agency's recommendation must contain the agency's
104-25   justification for its recommendation and a complete explanation of
104-26   all factors it considered.
104-27         SECTION 10.07.  Sections 2167.054(a), (g), and (i),
 105-1   Government Code, are amended to read as follows:
 105-2         (a)  The commission may lease space using competitive sealed
 105-3   proposals [if the commission first determines that competitive
 105-4   bidding is not practical or is disadvantageous to the state].
 105-5         (g)  The commission shall make a written award of a lease to
 105-6   the offeror whose proposal provides the best value for [is the most
 105-7   advantageous to] the state, considering price and the evaluation
 105-8   factors in the request for proposals.  [The commission may not use
 105-9   other factors or criteria in its evaluation.]  The commission shall
105-10   state in writing in the contract file the reasons for which an
105-11   award is made.
105-12         (i)  If the competitive sealed proposal procedure for leasing
105-13   space is used by a state agency [an institution of higher
105-14   education] that has been delegated leasing authority under Section
105-15   2167.005, the agency [institution:]
105-16               [(1)  must first determine that competitive bidding is
105-17   not practical or is disadvantageous to the state; and]
105-18               [(2)]  shall follow the procedures outlined by this
105-19   section and any rules adopted by the commission.
105-20         SECTION 10.08.  Subchapter B, Chapter 2167, Government Code,
105-21   is amended by adding Section 2167.0541 to read as follows:
105-22         Sec. 2167.0541.  USE OF PRIVATE FIRMS TO OBTAIN SPACE.  (a)
105-23   The commission may contract with one or more private brokerage or
105-24   real estate firms to assist the commission in obtaining lease space
105-25   for state agencies on behalf of the commission under this chapter.
105-26         (b)  A private brokerage or real estate firm with which the
105-27   commission contracts under Subsection (a) may assist the commission
 106-1   in leasing facilities under this chapter.
 106-2         SECTION 10.09.  Section 2167.055(b), Government Code, is
 106-3   amended to read as follows:
 106-4         (b)  A [The] lease contract entered into under Section
 106-5   2167.053 or 2167.054 must reflect the provisions contained in the
 106-6   invitation for bids or request for proposals, the successful bid or
 106-7   proposal, and the award of the contract.
 106-8         SECTION 10.10.  Subchapter C, Chapter 2167, Government Code,
 106-9   is amended by adding Sections 2167.105, 2167.106, and 2167.107 to
106-10   read as follows:
106-11         Sec. 2167.105.  REPORT ON NONCOMPLIANCE.  If the commission
106-12   determines that a state agency has not complied with the
106-13   commission's rules or with other state law related to leasing
106-14   requirements, the commission shall report the noncompliance to the
106-15   members of the state agency's governing body and to the governor,
106-16   lieutenant governor, and speaker of the house of representatives.
106-17   The commission shall include in its report an estimate of the
106-18   fiscal impact resulting from the noncompliance.
106-19         Sec. 2167.106.  ANNUAL REPORT.  The staff of the commission
106-20   shall annually submit a report to the commission regarding
106-21   opportunities for delegating leasing authority to state agencies
106-22   with statewide operations.  The report must include comments from
106-23   state agencies with statewide operations.
106-24         Sec. 2167.107.  WAREHOUSE SPACE USE STUDY.  (a)  The
106-25   commission shall evaluate the operation of the first four
106-26   state-leased warehouses in Austin for which the leases expire after
106-27   October 1, 2001.  The commission shall work with the state agency
 107-1   that operates the warehouse to reduce inefficient warehouse space
 107-2   use and adopt practices that can reduce the agency's need for
 107-3   warehouse space and eliminate warehouse leases.
 107-4         (b)  The commission and the state agency shall:
 107-5               (1)  identify excess inventory;
 107-6               (2)  determine the most appropriate ways to eliminate
 107-7   excess inventory; and
 107-8               (3)  determine the extent to which the state agency
 107-9   uses the following management principles in operating the
107-10   warehouse:
107-11                     (A)  automated order processing;
107-12                     (B)  training customers how to use the supply
107-13   system;
107-14                     (C)  changing relationships with suppliers to
107-15   reduce inventory maintained by the state agency;
107-16                     (D)  establishing supplier support agreements to
107-17   reduce the time for delivery from a supplier;
107-18                     (E)  training supply staff to use information to
107-19   manage supplies; and
107-20                     (F)  reducing administrative cycle times through
107-21   automation.
107-22         (c)  The commission shall assist the state agency operating
107-23   the warehouse in developing a plan to reduce the need for warehouse
107-24   space by reducing inventory, selling surplus property, and
107-25   efficiently managing warehouse operations.  Each agency shall
107-26   include the plan as part of its strategic plan submitted under
107-27   Chapter 2056 during calendar year 2002.
 108-1         (d)  This section expires September 1, 2003.
 108-2         SECTION 10.11.  A lease contract entered into by the General
 108-3   Services Commission before September 1, 2001, under Chapter 2167,
 108-4   Government Code, is governed during the remaining term of the lease
 108-5   by Chapter 2167, Government Code, as it existed immediately before
 108-6   September 1, 2001, and the prior law is continued in effect for
 108-7   this purpose.  Chapter 2167, Government Code, as amended by this
 108-8   Act, applies to the renewal of a lease described by this section.
 108-9                      ARTICLE 11.  SURPLUS PROPERTY
108-10         SECTION 11.01.  Section 2175.065, Government Code, is amended
108-11   to read as follows:
108-12         Sec. 2175.065.  DELEGATION OF AUTHORITY TO STATE AGENCY.
108-13   (a)  The commission may authorize a state agency to dispose of
108-14   surplus or salvage property if the agency demonstrates to the
108-15   commission its ability to dispose of the property under Subchapters
108-16   C and E in a manner that results in cost savings to the state,
108-17   under commission rules adopted under this chapter.
108-18         (b)  The commission shall establish by rule the criteria for
108-19   determining that a delegation of authority to a state agency
108-20   results in cost savings to the state.
108-21         SECTION 11.02.  Subchapters C and D, Chapter 2175, Government
108-22   Code, are amended to read as follows:
108-23         SUBCHAPTER C.  DIRECT TRANSFER OR OTHER DISPOSITION OF
108-24               SURPLUS OR SALVAGE PROPERTY BY STATE AGENCY
108-25         Sec. 2175.121.  APPLICABILITY.  This subchapter applies only
108-26   to surplus or salvage property to which Subchapter D does not
108-27   apply.
 109-1         Sec. 2175.122.  STATE AGENCY NOTICE TO COMMISSION. A state
 109-2   agency that determines it has surplus or salvage property shall
 109-3   inform the commission of the property's kind, number, location,
 109-4   condition, original cost or value, and date of acquisition.
 109-5         Sec. 2175.123.  DETERMINING METHOD OF DISPOSAL.  (a)  Based
 109-6   on the condition of the property, a state agency shall determine
 109-7   whether the property is:
 109-8               (1)  surplus property that should be offered for
 109-9   transfer under Section 2175.125 or sold to the public; or
109-10               (2)  salvage property.
109-11         (b)  The state agency shall inform the commission and the
109-12   comptroller of its determination.
109-13         Sec. 2175.124 [2175.122].  COMMISSION NOTICE TO OTHER
109-14   ENTITIES.  After a determination that [On receiving notice from] a
109-15   state agency [that the agency] has surplus [or salvage] property,
109-16   the commission shall inform other state agencies, political
109-17   subdivisions, and assistance organizations of the comptroller's
109-18   website that lists surplus property that is available for sale [the
109-19   property's kind, number, location, and condition].
109-20         Sec. 2175.1245.  ADVERTISING ON COMPTROLLER WEBSITE.  Not
109-21   later than the second day after the date the comptroller receives
109-22   notice from a state agency that the agency has surplus property,
109-23   the comptroller shall advertise the property's kind, number,
109-24   location, and condition on the comptroller's website.
109-25         Sec. 2175.125 [2175.123].  DIRECT TRANSFER.  During the 10
109-26   business [30] days after the date the property is posted on the
109-27   comptroller's website [following dissemination of information under
 110-1   Section 2175.122], a state agency, political subdivision, or
 110-2   assistance organization may coordinate directly with the reporting
 110-3   state agency for a transfer of the property at a price established
 110-4   by the reporting agency.
 110-5         Sec. 2175.126 [2175.124].  NOTICE OF TRANSFER TO COMPTROLLER;
 110-6   ADJUSTMENT OF APPROPRIATIONS AND PROPERTY ACCOUNTING RECORDS;
 110-7   REMOVAL FROM WEBSITE.  (a)  If property is transferred to a state
 110-8   agency, the participating agencies shall report the transaction to
 110-9   the comptroller.
110-10         (b)  On receiving notice under this section, the comptroller
110-11   shall, if necessary:
110-12               (1)  debit and credit the proper appropriations; and
110-13               (2)  adjust state property accounting records.
110-14         (c)  Not later than the second day after the date the
110-15   comptroller receives notice under Subsection (a), the comptroller
110-16   shall remove the property from the list of surplus property for
110-17   sale on the comptroller's website.
110-18         Sec. 2175.127 [2175.125].  PRIORITY FOR TRANSFER TO STATE
110-19   AGENCY.  During the 10 business [30] days after the date the
110-20   property is posted on the comptroller's website [of notice under
110-21   Section 2175.122], a transfer to a state agency has priority over
110-22   any other transfer under rules adopted by the commission.
110-23         Sec. 2175.128 [2175.126].  DISPOSITION OF DATA PROCESSING
110-24   EQUIPMENT.  (a)  If a disposition of a state agency's surplus or
110-25   salvage data processing equipment is not made under Section
110-26   2175.125 or 2175.184 [this subchapter], the state agency shall
110-27   transfer the equipment to the Texas Department of Criminal Justice.
 111-1   The state agency may not collect a fee or other reimbursement from
 111-2   the Texas Department of Criminal Justice for the surplus or salvage
 111-3   data processing equipment.
 111-4         (b)  If a disposition of the surplus or salvage data
 111-5   processing equipment of a state eleemosynary institution or an
 111-6   institution or agency of higher education is not made under other
 111-7   law, the institution or agency shall transfer the equipment to the
 111-8   Texas Department of Criminal Justice.  The institution or agency
 111-9   may not collect a fee or other reimbursement from the Texas
111-10   Department of Criminal Justice for the surplus or salvage data
111-11   processing equipment.
111-12            [SUBCHAPTER D.  DISPOSITION OF SURPLUS OR SALVAGE
111-13                    PROPERTY BY COMPETITIVE BIDDING]
111-14         Sec. 2175.129 [2175.181].  DISPOSITION BY COMPETITIVE
111-15   BIDDING, [OR] AUCTION, OR DIRECT SALE. (a)  If a disposition of a
111-16   state agency's surplus [or salvage] property is not made under
111-17   Section 2175.125 [Subchapter C], the commission shall:
111-18               (1)  sell the property by competitive bid, [or]
111-19   auction, or direct sale to the public, including a sale using an
111-20   Internet auction site; or
111-21               (2)  delegate to the state agency authority to sell the
111-22   property by competitive bid, auction, or direct sale to the public,
111-23   including a sale using an Internet auction site [bidding].
111-24         (b)  The commission or a state agency to which authority is
111-25   delegated under Subsection (a)(2) or under Section 2175.065 shall
111-26   determine which method of sale shall be used based on the method
111-27   that is most advantageous to the state under the circumstances.
 112-1   The commission shall adopt rules establishing guidelines for making
 112-2   that determination.
 112-3         (c)  In using an Internet auction site to sell surplus
 112-4   property under this section, the commission or state agency shall
 112-5   post the property on the site for at least 10 days.
 112-6         Sec. 2175.130.  DISPOSITION BY DIRECT SALE TO PUBLIC.  (a)
 112-7   If the commission or a state agency to which authority is delegated
 112-8   under Section 2175.129(a)(2) or 2175.065 determines that selling
 112-9   the property by competitive bid or auction, including a sale using
112-10   an Internet auction site, would not maximize the resale value of
112-11   the property to the state, the commission or agency may sell
112-12   surplus or salvage property directly to the public.
112-13         (b)  The commission, in cooperation with the state agency
112-14   that declared the property as surplus, or a state agency to which
112-15   authority is delegated under Section 2175.129(a)(2) or 2175.065
112-16   shall set a fixed price for the property.
112-17         Sec. 2175.131 [2175.182].  PURCHASER'S FEE.  (a)  The
112-18   commission or a state agency disposing of property by a method
112-19   other than direct transfer under this subchapter shall collect a
112-20   fee from the purchaser.
112-21         (b)  The commission or state agency shall set the fee at an
112-22   amount that is:
112-23               (1)  sufficient to recover costs associated with the
112-24   sale; and
112-25               (2)  at least two percent but not more than 12 percent
112-26   of sale proceeds.
112-27         Sec. 2175.132 [2175.183].  ADVERTISEMENT OF SALE.  If the
 113-1   value of an item or a lot of property to be sold is estimated to be
 113-2   more than $5,000, the commission or the state agency authorized to
 113-3   sell the property shall advertise the sale at least once in at
 113-4   least one newspaper of general circulation in the vicinity in which
 113-5   the property is located.
 113-6         Sec. 2175.133 [2175.184].  REPORTING SALE; PROPERTY
 113-7   ACCOUNTING ADJUSTMENT.  (a)  On the sale by the commission of
 113-8   surplus or salvage property, the commission shall report the
 113-9   property sold and the sale price to the state agency that declared
113-10   the property as surplus or salvage.
113-11         (b)  A state agency for which surplus or salvage property is
113-12   sold or that sells surplus or salvage property under authority of
113-13   the commission shall report the sale and amount of sale proceeds to
113-14   the comptroller.
113-15         (c)  If property reported under this section is on the state
113-16   property accounting system, the comptroller shall remove the
113-17   property from the property accounting records.
113-18         Sec. 2175.134 [2175.185].  PROCEEDS OF SALE.  (a)  Proceeds
113-19   from the sale of surplus or salvage property, less the cost of
113-20   advertising the sale, the cost of selling the surplus or salvage
113-21   property, including the cost of auctioneer services, and the amount
113-22   of the fee collected under Section 2175.131 [2175.182], shall be
113-23   deposited to the credit of the appropriate appropriation item of
113-24   the state agency for which the sale was made.
113-25         (b)  The portion of sale proceeds equal to the cost of
113-26   advertising the sale and the cost of selling the surplus or salvage
113-27   property, including the cost of auctioneer services, shall be
 114-1   deposited in the state treasury to the credit of the appropriation
 114-2   item of the commission or other state agency from which the costs
 114-3   were paid.
 114-4         Sec. 2175.135 [2175.186].  PURCHASER'S TITLE.  A purchaser of
 114-5   surplus [or salvage] property at a sale conducted under Section
 114-6   2175.129 or 2175.130 [this subchapter] obtains good title to the
 114-7   property if the purchaser has in good faith complied with:
 114-8               (1)  the conditions of the sale; and
 114-9               (2)  applicable commission rules.
114-10            SUBCHAPTER D.  DISPOSITION OF SURPLUS OR SALVAGE
114-11                         PROPERTY BY COMMISSION
114-12         Sec. 2175.181.  APPLICABILITY.  (a)  This subchapter applies
114-13   only to surplus and salvage property located in:
114-14               (1)  Travis County;
114-15               (2)  a county in which federal surplus property is
114-16   warehoused by the commission under Subchapter G; or
114-17               (3)  a county for which the commission determines that
114-18   it is cost-effective to follow the procedures created under this
114-19   subchapter and informs affected state agencies of that
114-20   determination.
114-21         (b)  This subchapter does not apply to a state agency
114-22   delegated the authority to dispose of surplus or salvage property
114-23   under Section 2175.065.
114-24         Sec. 2175.1815.  ALTERNATIVE APPLICABILITY.  (a)
114-25   Notwithstanding Section 2175.181, until January 1, 2003, this
114-26   subchapter applies only to a state agency selected by the
114-27   commission to participate in the disposal process created under
 115-1   this subchapter.
 115-2         (b)  Subchapter C applies to a state agency that is not
 115-3   selected by the commission to participate under this subchapter.
 115-4         (c)  This section expires January 1, 2003.
 115-5         Sec. 2175.182.  STATE AGENCY TRANSFER OF PROPERTY TO
 115-6   COMMISSION.  (a)  The commission is responsible for the disposal of
 115-7   surplus or salvage property under this subchapter.  The commission
 115-8   may take physical possession of the property.  A state agency
 115-9   maintains ownership of property throughout the disposal process.
115-10         (b)  Based on the condition of the property, the commission
115-11   shall determine whether the property is:
115-12               (1)  surplus property that should be offered for
115-13   transfer under Section 2175.184 or sold to the public; or
115-14               (2)  salvage property.
115-15         (c)  The commission shall inform the comptroller's office of
115-16   the property's kind, number, location, condition, original cost or
115-17   value, and date of acquisition.
115-18         Sec. 2175.1825.  ADVERTISING ON COMPTROLLER WEBSITE.  Not
115-19   later than the second day after the date the comptroller receives
115-20   notice from the commission under Section 2175.182(c), the
115-21   comptroller shall advertise the property's kind, number, location,
115-22   and condition on the comptroller's website.
115-23         Sec. 2175.183.  COMMISSION NOTICE TO OTHER ENTITIES.  On
115-24   taking responsibility for surplus property under this subchapter,
115-25   the commission shall inform other state agencies, political
115-26   subdivisions, and assistance organizations of the comptroller's
115-27   website that lists surplus property that is available for sale.
 116-1         Sec. 2175.184.  DIRECT TRANSFER.  During the 10 business days
 116-2   after the date the property is posted on the comptroller's website,
 116-3   a state agency, political subdivision, or assistance organization
 116-4   may coordinate with the commission for a transfer of the property
 116-5   at a price established by the commission in cooperation with the
 116-6   transferring agency.  A transfer to a state agency has priority
 116-7   over any other transfer during this period.
 116-8         Sec. 2175.185.  NOTICE OF TRANSFER TO COMPTROLLER; ADJUSTMENT
 116-9   OF APPROPRIATIONS AND PROPERTY ACCOUNTING RECORDS; REMOVAL FROM
116-10   WEBSITE.  (a)  If property is transferred to a state agency under
116-11   Section 2175.184, the participating agencies shall report the
116-12   transaction to the comptroller.
116-13         (b)  On receiving notice under this section, the comptroller
116-14   shall, if necessary:
116-15               (1)  debit and credit the proper appropriations; and
116-16               (2)  adjust state property accounting records.
116-17         (c)  Not later than the second day after the date the
116-18   comptroller receives notice under Subsection (a), the comptroller
116-19   shall remove the property from the list of surplus property for
116-20   sale on the comptroller's website.
116-21         Sec. 2175.186.  DISPOSITION BY COMPETITIVE BIDDING, AUCTION,
116-22   OR DIRECT SALE.  (a)  If a disposition of a state agency's surplus
116-23   property is not made under Section 2175.184, the commission shall
116-24   sell the property by competitive bid, auction, or direct sale to
116-25   the public, including a sale using an Internet auction site.
116-26         (b)  The commission shall determine which method of sale
116-27   shall be used based on the method that is most advantageous to the
 117-1   state under the circumstances.  The commission shall adopt rules
 117-2   establishing guidelines for making that determination.
 117-3         (c)  In using an Internet auction site to sell surplus
 117-4   property under this section, the commission shall post the property
 117-5   on the site for at least 10 days.
 117-6         Sec. 2175.187.  DISPOSITION BY DIRECT SALE TO PUBLIC.
 117-7   (a)  If the commission determines that selling the property by
 117-8   competitive bid or auction, including a sale using an Internet
 117-9   auction site, would not maximize the resale value of the property
117-10   to the state, the commission may sell surplus property directly to
117-11   the public.
117-12         (b)  The commission shall set a fixed price for the property
117-13   in cooperation with the state agency that owns the property.
117-14         Sec. 2175.188.  PURCHASER'S FEE.  (a)  For property that is
117-15   sold under Section 2175.186 or 2175.187, the commission shall
117-16   collect a fee from the purchaser.
117-17         (b)  The commission shall set the fee at an amount that is:
117-18               (1)  sufficient to recover costs associated with the
117-19   sale; and
117-20               (2)  at least two percent but not more than 12 percent
117-21   of sale proceeds.
117-22         Sec. 2175.189.  ADVERTISEMENT OF SALE.  If the value of an
117-23   item or a lot of property to be sold is estimated to be more than
117-24   $5,000, the commission shall advertise the sale at least once in at
117-25   least one newspaper of general circulation in the vicinity in which
117-26   the property is located.
117-27         Sec. 2175.190.  REPORTING SALE; PROPERTY ACCOUNTING
 118-1   ADJUSTMENT.  (a)  On the sale by the commission of surplus or
 118-2   salvage property, the commission shall report the property sold and
 118-3   the sale price to the state agency that owned the property and to
 118-4   the comptroller.
 118-5         (b)  If property reported under this section is on the state
 118-6   property accounting system, the comptroller shall remove the
 118-7   property from the property accounting records.
 118-8         Sec. 2175.191.  PROCEEDS OF SALE.  (a)  Proceeds from the
 118-9   sale of surplus or salvage property, less the cost of advertising
118-10   the sale, the cost of selling the surplus or salvage property,
118-11   including the cost of auctioneer services, and the amount of the
118-12   fee collected under Section 2175.188, shall be deposited to the
118-13   credit of the appropriate appropriation item of the state agency
118-14   for which the sale was made.
118-15         (b)  The portion of sale proceeds equal to the cost of
118-16   advertising the sale and the cost of selling the surplus or salvage
118-17   property, including the cost of auctioneer services, if any, shall
118-18   be deposited in the state treasury to the credit of the
118-19   appropriation item of the commission.
118-20         Sec. 2175.192.  PURCHASER'S TITLE.  A purchaser of surplus
118-21   property at a sale conducted under Section 2175.186 or 2175.187
118-22   obtains good title to the property if the purchaser has in good
118-23   faith complied with:
118-24               (1)  the conditions of the sale; and
118-25               (2)  applicable commission rules.
118-26         Sec. 2175.193.  CONTRACTS FOR DESTRUCTION OF PROPERTY.  The
118-27   commission shall contract for the disposal of property under
 119-1   Subchapter E in a manner that maximizes value to the state.
 119-2         SECTION 11.03.  This article takes effect January 1, 2002.
 119-3                  ARTICLE 12.  PAPER RECYCLING PROGRAM
 119-4         SECTION 12.01. Section 2175.902, Government Code, is amended
 119-5   to read as follows:
 119-6         Sec. 2175.902.  MANDATORY PAPER RECYCLING PROGRAM. (a)  The
 119-7   Texas Building Commission [commission] shall establish a mandatory
 119-8   recycling program for a state agency that occupies a building [and
 119-9   maintain in each building] under its control [procedures for
119-10   collecting separately from other wastes all paper for recycling
119-11   disposed of in that building]. By rule, the Texas Building
119-12   Commission shall:
119-13               (1)  establish guidelines and procedures for collecting
119-14   and recycling of paper;
119-15               (2)  set recycling goals and performance measures;
119-16               (3)  require state agencies to designate a recycling
119-17   coordinator;
119-18               (4)  provide employee and custodial education and
119-19   training;
119-20               (5)  provide feedback and recognition to state agencies
119-21   when appropriate; and
119-22               (6)  inform state agencies when proper recycling
119-23   methods are not used.
119-24         (b)  If the Texas Building Commission finds that a state
119-25   agency's recycling program meets or exceeds the standards created
119-26   under Subsection (a), the Texas Building Commission [The
119-27   commission] may delegate its responsibility under this section
 120-1   [subsection] to a state agency located in a [each] building under
 120-2   its control.
 120-3         (c) [(b)]  The Texas Building Commission [commission] or a
 120-4   state agency with delegated responsibility under Subsection (b)
 120-5   [(a)] shall sell the paper for recycling to the highest bidder.
 120-6         (d)  The Texas Building Commission may enter into an
 120-7   interagency agreement to provide recycling services to a state
 120-8   agency otherwise excluded from the program.
 120-9           ARTICLE 13.  HISTORICALLY UNDERUTILIZED BUSINESSES
120-10         SECTION 13.01. Section 2161.061, Government Code, is amended
120-11   to read as follows:
120-12         Sec. 2161.061.  COMMISSION CERTIFICATION OF HISTORICALLY
120-13   UNDERUTILIZED BUSINESSES[; MUNICIPAL CERTIFICATION]. (a)  The
120-14   commission shall certify historically underutilized businesses.
120-15         (b)  As one of its certification procedures, the commission
120-16   may:
120-17               (1)  approve the certification program of:
120-18                     (A)  one or more local governments in this state
120-19   that certify historically underutilized businesses, minority
120-20   business enterprises, women's business enterprises, or
120-21   disadvantaged business enterprises under substantially the same
120-22   definition, to the extent applicable, used by Section 2161.001; and
120-23                     (B)  nonprofit organizations that certify on
120-24   behalf of local governments; and
120-25               (2)  certify a business that is certified by a [under
120-26   the] local government or by a nonprofit organization certifying on
120-27   behalf of a local government [program] as a historically
 121-1   underutilized business under this chapter.
 121-2         (c)  To maximize the number of certified historically
 121-3   underutilized businesses, the commission shall enter into
 121-4   agreements with local governments in this state that conduct
 121-5   certification programs described by Subsection (b) and with
 121-6   nonprofit organizations that certify on behalf of local
 121-7   governments.  The agreements must take effect immediately and:
 121-8               (1)  allow for automatic certification of businesses
 121-9   certified by [under] the local government or nonprofit organization
121-10   certifying on behalf of the local government [program];
121-11               (2)  provide for the efficient updating of the
121-12   commission database containing information about historically
121-13   underutilized businesses and potential historically underutilized
121-14   businesses; and
121-15               (3)  provide for a method by which the commission may
121-16   efficiently communicate with businesses certified by [under] the
121-17   local government or nonprofit organization certifying on behalf of
121-18   the local government [program] and provide those businesses with
121-19   information about the state historically underutilized business
121-20   program.
121-21         (d)  A local government or a nonprofit organization that
121-22   certifies historically underutilized businesses, minority business
121-23   enterprises, women's business enterprises, or disadvantaged
121-24   business enterprises as described in Subsections (b) and (c) shall
121-25   complete the certification of an applicant or provide an applicant
121-26   with written justification of its certification denial within the
121-27   period established by the commission in its rules for certification
 122-1   activities.
 122-2         SECTION 13.02. Section 2161.065, Government Code, is amended
 122-3   by adding Subsection (c) to read as follows:
 122-4         (c)  In selecting historically underutilized business
 122-5   subcontractors under this section, an agency shall give preference
 122-6   to subcontractors that demonstrate the greatest need for a mentor,
 122-7   as determined by the agency on consideration of:
 122-8               (1)  the agency's goals, procurement history, and
 122-9   procurement needs; and
122-10               (2)  the subcontractor's goals.
122-11         SECTION 13.03. Section 2161.253(a), Government Code, is
122-12   amended to read as follows:
122-13         (a)  When a state agency requires a historically
122-14   underutilized business subcontracting plan under Section 2161.252,
122-15   the awarded contract shall contain, as a provision of the contract
122-16   that must be fulfilled, the plan that the contractor submitted in
122-17   its bid, proposal, offer, or other applicable expression of
122-18   interest for the contract.  The contractor shall make good faith
122-19   efforts to implement the plan.  A contractor's participation in a
122-20   mentor-protege program under Section 2161.065 and submission of a
122-21   protege as a subcontractor in the contractor's historically
122-22   underutilized business subcontracting plan constitutes a good faith
122-23   effort under this section for the particular area of the
122-24   subcontracting plan involving the protege.
122-25                  ARTICLE 14.  MISCELLANEOUS PROVISIONS
122-26         SECTION 14.01. Section 2054.022, Government Code, is amended
122-27   to read as follows:
 123-1         Sec. 2054.022.  CONFLICT OF INTEREST. (a)  A member of the
 123-2   board or the executive director [an employee of the department] may
 123-3   not:
 123-4               (1)  be a person required to register as a lobbyist
 123-5   under Chapter 305 because of the person's activities for
 123-6   compensation on behalf of a business entity that has, or on behalf
 123-7   of a trade association of business entities that have, a
 123-8   substantial interest in the information resources technologies
 123-9   industry;
123-10               (2)  be an officer, employee, or paid consultant of a
123-11   business entity that has, or of a trade association of business
123-12   entities that have, a substantial interest in the information
123-13   resources technologies industry and that may contract with state
123-14   government;
123-15               (3)  own, control, or have, directly or indirectly,
123-16   more than a 10 percent interest in a business entity that has a
123-17   substantial interest in the information resources technologies
123-18   industry and that may contract with state government;
123-19               (4)  receive more than 25 percent of the individual's
123-20   income from a business entity that has a substantial interest in
123-21   the information resources technologies industry and that may
123-22   contract with state government;
123-23               (5)  be interested in or connected with a contract or
123-24   bid for furnishing a state agency with information resources
123-25   technologies;
123-26               (6)  be employed by a state agency as a consultant on
123-27   information resources technologies; or
 124-1               (7)  accept or receive money or another thing of value
 124-2   from an individual, firm, or corporation to whom a contract may be
 124-3   awarded, directly or indirectly, by rebate, gift, or otherwise.
 124-4         (b)  A person who is the spouse of an officer, employee, or
 124-5   paid consultant of a business entity that has, or of a trade
 124-6   association of business entities that have, a substantial interest
 124-7   in the information resources technologies industry and that may
 124-8   contract with state government may not be[:]
 124-9               [(1)]  a member of the board or the executive
124-10   director[; or]
124-11               [(2)  an employee of the department who:]
124-12                     [(A)  is exempt from the state's position
124-13   classification plan; or]
124-14                     [(B)  is compensated at or above the amount
124-15   prescribed by the General Appropriations Act for step 1, salary
124-16   group 17, of the position classification salary schedule].
124-17         (c)  An employee of the department, other than the executive
124-18   director:
124-19               (1)  may not participate in the department's bidding
124-20   process, including the proposal development related to a contract
124-21   and the negotiation of a contract, if:
124-22                     (A)  the employee receives more than five percent
124-23   of the employee's income from any likely bidder on the contract; or
124-24                     (B)  the employee's spouse is employed by any
124-25   likely bidder on the contract; and
124-26               (2)  may not:
124-27                     (A)  be a person required to register as a
 125-1   lobbyist under Chapter 305 because of the person's activities for
 125-2   compensation on behalf of a business entity that has, or on behalf
 125-3   of a trade association of business entities that have, a
 125-4   substantial interest in the information resources technologies
 125-5   industry; or
 125-6                     (B)  be employed by a state agency as a
 125-7   consultant on information resources technologies.
 125-8         (d)  For the purposes of this section, a trade association is
 125-9   a nonprofit, cooperative, and voluntarily joined association of
125-10   business or professional competitors in this state designed to
125-11   assist its members and its industry or profession in dealing with
125-12   mutual business or professional problems and in promoting their
125-13   common interest.
125-14         (e) [(d)]  The executive director shall dismiss an employee
125-15   of the department who violates a prohibition under Subsection (c)
125-16   [(a)], and the board shall remove the executive director if the
125-17   executive director violates a prohibition under Subsection (a).
125-18         SECTION 14.02.  Section 552.010, Government Code, is amended
125-19   to read as follows:
125-20         Sec. 552.010.  STATE GOVERNMENTAL BODIES:  FISCAL AND OTHER
125-21   INFORMATION RELATING TO MAKING INFORMATION ACCESSIBLE.  (a)  Each
125-22   state governmental body shall report to the Texas Procurement
125-23   Commission [Legislative Budget Board] the information the
125-24   commission [board] requires regarding:
125-25               (1)  the number and nature of requests for information
125-26   the state governmental body processes under this chapter in the
125-27   period covered by the report; and
 126-1               (2)  the cost to the state governmental body in that
 126-2   period in terms of capital expenditures and personnel time of:
 126-3                     (A)  responding to requests for information under
 126-4   this chapter; and
 126-5                     (B)  making information available to the public
 126-6   by means of the Internet or another electronic format.
 126-7         (b)  The Texas Procurement Commission [Legislative Budget
 126-8   Board] shall design and phase in the reporting requirements in a
 126-9   way that:
126-10               (1)  minimizes the reporting burden on state
126-11   governmental bodies; and
126-12               (2)  allows the legislature and state governmental
126-13   bodies to estimate the extent to which it is cost-effective for
126-14   state government, and if possible the extent to which it is
126-15   cost-effective or useful for members of the public, to make
126-16   information available to the public by means of the Internet or
126-17   another electronic format as a supplement or alternative to
126-18   publicizing the information only in other ways or making the
126-19   information available only in response to requests made under this
126-20   chapter.
126-21         (c)  The open records steering committee and the state
126-22   auditor, at the request of the Texas Procurement Commission
126-23   [Legislative Budget Board], shall assist the commission [board] in
126-24   designing its reporting requirements under this section.  The
126-25   commission [board] shall share the information reported under this
126-26   section with the open records steering committee.
126-27                       ARTICLE 15.  EFFECTIVE DATE
 127-1         SECTION 15.01. Except as otherwise provided by this Act, this
 127-2   Act takes effect September 1, 2001.