By Zaffirini                                           S.B. No. 311
         77R1069 MTB-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the continuation and functions of the General Services
 1-3     Commission and to the operations of certain other state agencies
 1-4     having functions transferred from or associated with the
 1-5     commission, including the Department of Information Resources, the
 1-6     telecommunications planning and oversight council, the interagency
 1-7     work group for developing contracting guidelines, and the State
 1-8     Cemetery Committee.
 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10                    ARTICLE 1.  ADMINISTRATIVE PROVISIONS
1-11           SECTION 1.01. Section 2054.022, Government Code, is amended
1-12     to read as follows:
1-13           Sec. 2054.022.  CONFLICT OF INTEREST. (a)  A member of the
1-14     board or the executive director [an employee of the department] may
1-15     not:
1-16                 (1)  be a person required to register as a lobbyist
1-17     under Chapter 305 because of the person's activities for
1-18     compensation on behalf of a business entity that has, or on behalf
1-19     of a trade association of business entities that have, a
1-20     substantial interest in the information resources technologies
1-21     industry;
1-22                 (2)  be an officer, employee, or paid consultant of a
1-23     business entity that has, or of a trade association of business
1-24     entities that have, a substantial interest in the information
 2-1     resources technologies industry and that may contract with state
 2-2     government;
 2-3                 (3)  own, control, or have, directly or indirectly,
 2-4     more than a 10 percent interest in a business entity that has a
 2-5     substantial interest in the information resources technologies
 2-6     industry and that may contract with state government;
 2-7                 (4)  receive more than 25 percent of the individual's
 2-8     income from a business entity that has a substantial interest in
 2-9     the information resources technologies industry and that may
2-10     contract with state government;
2-11                 (5)  be interested in or connected with a contract or
2-12     bid for furnishing a state agency with information resources
2-13     technologies;
2-14                 (6)  be employed by a state agency as a consultant on
2-15     information resources technologies; or
2-16                 (7)  accept or receive money or another thing of value
2-17     from an individual, firm, or corporation to whom a contract may be
2-18     awarded, directly or indirectly, by rebate, gift, or otherwise.
2-19           (b)  A person who is the spouse of an officer, employee, or
2-20     paid consultant of a business entity that has, or of a trade
2-21     association of business entities that have, a substantial interest
2-22     in the information resources technologies industry and that may
2-23     contract with state government may not be[:]
2-24                 [(1)]  a member of the board or the executive
2-25     director[; or]
2-26                 [(2)  an employee of the department who:]
2-27                       [(A)  is exempt from the state's position
 3-1     classification plan; or]
 3-2                       [(B)  is compensated at or above the amount
 3-3     prescribed by the General Appropriations Act for step 1, salary
 3-4     group 17, of the position classification salary schedule].
 3-5           (c)  An employee of the department, other than the executive
 3-6     director:
 3-7                 (1)  may not participate in the department's bidding
 3-8     process, including the proposal development related to a contract
 3-9     and the negotiation of a contract, if:
3-10                       (A)  the employee receives income from any likely
3-11     bidder on the contract; or
3-12                       (B)  the employee's spouse is employed by any
3-13     likely bidder on the contract; and
3-14                 (2)  may not:
3-15                       (A)  be a person required to register as a
3-16     lobbyist under Chapter 305 because of the person's activities for
3-17     compensation on behalf of a business entity that has, or on behalf
3-18     of a trade association of business entities that have, a
3-19     substantial interest in the information resources technologies
3-20     industry; or
3-21                       (B)  be employed by a state agency as a
3-22     consultant on information resources technologies.
3-23           (d)  For the purposes of this section, a trade association is
3-24     a nonprofit, cooperative, and voluntarily joined association of
3-25     business or professional competitors in this state designed to
3-26     assist its members and its industry or profession in dealing with
3-27     mutual business or professional problems and in promoting their
 4-1     common interest.
 4-2           (e) [(d)]  The executive director shall dismiss an employee
 4-3     of the department who violates a prohibition under Subsection (c)
 4-4     [(a)], and the board shall remove the executive director if the
 4-5     executive director violates a prohibition under Subsection (a).
 4-6           SECTION 1.02. Section 2152.002, Government Code, is amended
 4-7     to read as follows:
 4-8           Sec. 2152.002.  SUNSET PROVISION. The General Services
 4-9     Commission is subject to Chapter 325 (Texas Sunset Act).  Unless
4-10     continued in existence as provided by that chapter, the commission
4-11     is abolished and this subtitle, except for Chapter 2170 and Section
4-12     2157.121, expires September 1, 2013 [2001].
4-13           SECTION 1.03. Section 2152.051, Government Code, is amended
4-14     to read as follows:
4-15           Sec. 2152.051.  COMPOSITION OF COMMISSION. The commission is
4-16     composed of five [six] representatives of the public appointed by
4-17     the governor with the advice and consent of the senate.
4-18           SECTION 1.04. Sections 2152.054(b) and (c), Government Code,
4-19     are amended to read as follows:
4-20           (b)  An officer, employee, or paid consultant of a Texas
4-21     trade association of business entities that contracts with the
4-22     state may not:
4-23                 (1)  serve as a commission member; or
4-24                 (2)  be employed as a commission employee in a "bona
4-25     fide executive, administrative, or professional capacity," as that
4-26     phrase is used for purposes of establishing an exemption to the
4-27     overtime provisions of the federal Fair Labor Standards Act of 1938
 5-1     (29 U.S.C. Section 201 et seq.) and its subsequent amendments [who
 5-2     is exempt from the state's position classification plan or is
 5-3     compensated at or above the amount prescribed by the General
 5-4     Appropriations Act for step 1, salary group 17, of the position
 5-5     classification salary schedule].
 5-6           (c)  An individual who is the spouse of an officer, manager,
 5-7     or paid consultant of a Texas trade association of business
 5-8     entities that contracts with the 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           SECTION 1.05. Section 2152.056(c), Government Code, is
5-20     amended to read as follows:
5-21           (c)  If the executive director has knowledge that a potential
5-22     ground for removal exists, the executive director shall notify the
5-23     presiding officer of the commission of the potential ground.  The
5-24     presiding officer shall then notify the governor and the attorney
5-25     general that a potential ground for removal exists.  If the
5-26     potential ground for removal involves the presiding officer, the
5-27     executive director shall notify the next highest ranking officer of
 6-1     the commission, who shall then notify the governor and the attorney
 6-2     general that a potential ground for removal exists.
 6-3           SECTION 1.06. Section 2152.057, Government Code, is amended
 6-4     to read as follows:
 6-5           Sec. 2152.057.  TERMS. Commission members serve staggered
 6-6     six-year terms with one or two members' terms expiring January 31
 6-7     of each odd-numbered year.
 6-8           SECTION 1.07. Section 2152.058(c), Government Code, is
 6-9     amended to read as follows:
6-10           (c)  Three [Four] members of the commission constitute a
6-11     quorum.
6-12           SECTION 1.08. Subchapter B, Chapter 2152, Government Code, is
6-13     amended by adding Section 2152.0581 to read as follows:
6-14           Sec. 2152.0581.  TRAINING FOR COMMISSION MEMBERS. (a)  A
6-15     person who is appointed to and qualifies for office as a member of
6-16     the commission may not vote, deliberate, or be counted as a member
6-17     in attendance at a meeting of the commission until the person
6-18     completes a training program that complies with this section.
6-19           (b)  The training program must provide the person with
6-20     information regarding:
6-21                 (1)  the legislation that created the commission;
6-22                 (2)  the programs operated by the commission;
6-23                 (3)  the role and functions of the commission;
6-24                 (4)  the rules of the commission, with an emphasis on
6-25     the rules that relate to disciplinary and investigatory authority;
6-26                 (5)  the current budget for the commission;
6-27                 (6)  the results of the most recent formal audit of the
 7-1     commission;
 7-2                 (7)  the requirements of:
 7-3                       (A)  the open meetings law, Chapter 551;
 7-4                       (B)  the public information law, Chapter 552;
 7-5                       (C)  the administrative procedure law, Chapter
 7-6     2001; and
 7-7                       (D)  other laws relating to public officials,
 7-8     including conflict of interest laws; and
 7-9                 (8)  any applicable ethics policies adopted by the
7-10     commission or the Texas Ethics Commission.
7-11           (c)  A person appointed to the commission is entitled to
7-12     reimbursement, as provided by the General Appropriations Act, for
7-13     the travel expenses incurred in attending the training program
7-14     regardless of whether the attendance at the program occurs before
7-15     or after the person qualifies for office.
7-16           SECTION 1.09. Section 2152.060, Government Code, is amended
7-17     by amending Subsection (b) and adding Subsection (d) to read as
7-18     follows:
7-19           (b)  The commission shall maintain a [keep an information]
7-20     file on [about] each written complaint filed with the commission
7-21     [that the commission has authority to resolve].  The file must
7-22     include:
7-23                 (1)  the name of the person who filed the complaint;
7-24                 (2)  the date the complaint is received by the
7-25     commission;
7-26                 (3)  the subject matter of the complaint;
7-27                 (4)  the name of each person contacted in relation to
 8-1     the complaint;
 8-2                 (5)  a summary of the results of the review or
 8-3     investigation of the complaint; and
 8-4                 (6)  an explanation of the reason the file was closed,
 8-5     if the commission closed the file without taking action other than
 8-6     to investigate the complaint.
 8-7           (d)  The commission shall provide to the person filing the
 8-8     complaint and to each person who is a subject of the complaint a
 8-9     copy of the commission's policies and procedures relating to
8-10     complaint investigation and resolution.
8-11           SECTION 1.10. Subchapter C, Chapter 2152, Government Code, is
8-12     amended by adding Section 2152.110 to read as follows:
8-13           Sec. 2152.110.  STATE EMPLOYEE INCENTIVE PROGRAM. The
8-14     executive director or the executive director's designee shall
8-15     provide to commission employees information and training on the
8-16     benefits and methods of participation in the state employee
8-17     incentive program under Subchapter B, Chapter 2108.
8-18           SECTION 1.11. (a)  To achieve the membership plan prescribed
8-19     by Section 2152.051, Government Code, as amended by this Act, for
8-20     the General Services Commission, the governor shall appoint only
8-21     one commission member to succeed the commission members whose terms
8-22     expire on January 31, 2003.  The member appointed under this
8-23     section is appointed for a term expiring January 31, 2009.
8-24           (b)  As soon as possible after September 1, 2001, the
8-25     governor shall designate for abolition on January 31, 2003, one of
8-26     the two membership positions with terms that expire on January 31,
8-27     2003.
 9-1           SECTION 1.12. The changes in law made by this Act in the
 9-2     prohibitions and qualifications applying to members of the General
 9-3     Services Commission do not affect the entitlement of a member
 9-4     serving on the commission immediately before September 1, 2001, to
 9-5     continue to serve and function as a member of the commission for
 9-6     the remainder of the member's term.  The changes in law apply only
 9-7     to a member appointed on or after September 1, 2001.  This Act does
 9-8     not prohibit a person who is a member of the General Services
 9-9     Commission immediately before September 1, 2001, from being
9-10     reappointed as a commission member if the person has the
9-11     qualifications required for the position under Chapter 2152,
9-12     Government Code, as amended by this Act.
9-13           SECTION 1.13. The change in law made by this Act to Sections
9-14     2152.051, 2152.057, and 2152.058(c), Government Code, takes effect
9-15     January 31, 2003.
9-16        ARTICLE 2.  OVERSIGHT OF MAJOR INFORMATION RESOURCES PROJECTS
9-17           SECTION 2.01. Section 2054.003, Government Code, is amended
9-18     by adding a new Subdivision (8) and renumbering existing
9-19     Subdivisions (8)-(10) as Subdivisions (9)-(11) to read as follows:
9-20                 (8)  "Major information resources project" means:
9-21                       (A)  any information resources technology project
9-22     identified in a state agency's biennial operating plan whose
9-23     development costs exceed $1 million and that:
9-24                             (i)  requires one year or longer to reach
9-25     operations status;
9-26                             (ii)  involves more than one state agency;
9-27     or
 10-1                            (iii)  substantially alters work methods of
 10-2    state agency personnel or the delivery of services to clients; and
 10-3                      (B)  any information resources technology project
 10-4    designated by the legislature in the General Appropriations Act as
 10-5    a major information resources project.
 10-6                (9)  "Project" means a program to provide information
 10-7    resources technologies support to functions within or among
 10-8    elements of a state agency, that ideally is characterized by
 10-9    well-defined parameters, specific objectives, common benefits,
10-10    planned activities, a scheduled completion date, and an established
10-11    budget with a specified source of funding.
10-12                (10) [(9)]  "State agency" means a department,
10-13    commission, board, office, council, or other agency in the
10-14    executive or judicial branch of state government that is created by
10-15    the constitution or a statute of this state, including a university
10-16    system or institution of higher education as defined by Section
10-17    61.003, Education Code.
10-18                (11) [(10)]  "Telecommunications" means any
10-19    transmission, emission, or reception of signs, signals, writings,
10-20    images, or sounds of intelligence of any nature by wire, radio,
10-21    optical, or other electromagnetic systems.  The term includes all
10-22    facilities and equipment performing those functions that are owned,
10-23    leased, or used by state agencies and branches of state government.
10-24          SECTION 2.02. Subchapter F, Chapter 2054, Government Code, is
10-25    amended by adding Section 2054.1181 to read as follows:
10-26          Sec. 2054.1181.  OVERSIGHT OF MAJOR INFORMATION RESOURCES
10-27    PROJECTS. (a)  The department shall create a division in the
 11-1    department to oversee the implementation of major information
 11-2    resources projects.
 11-3          (b)  In performing its duties under this section, the
 11-4    department shall:
 11-5                (1)  develop policies for the oversight of projects;
 11-6                (2)  implement project management standards;
 11-7                (3)  use effective risk management strategies;
 11-8                (4)  establish standards that promote the ability of
 11-9    information resources systems to operate with each other; and
11-10                (5)  use industry best practices and process
11-11    reengineering when feasible.
11-12          (c)  The division shall be funded from a percentage of money
11-13    appropriated to or budgeted by state agencies for the major
11-14    information resources projects designated by the legislature under
11-15    Section 2054.003(8)(B).  The legislature shall prescribe the
11-16    percentage or percentages, as applicable, in the General
11-17    Appropriations Act.
11-18          SECTION 2.03. Section 2054.118(d), Government Code, is
11-19    repealed.
11-20                      ARTICLE 3.  TELECOMMUNICATIONS
11-21          SECTION 3.01. Section 2054.051(e), Government Code, is
11-22    amended to read as follows:
11-23          (e)  The department shall provide for all interagency use of
11-24    information resources technologies by state agencies[, except for
11-25    telecommunications services provided by the General Services
11-26    Commission under other law].  The department may provide for
11-27    interagency use of information resources technologies either
 12-1    directly or by certifying another state agency to provide specified
 12-2    uses of information resources technologies to other state agencies.
 12-3          SECTION 3.02. Section 2054.091(d), Government Code, is
 12-4    amended to read as follows:
 12-5          (d)  The executive director shall appoint an advisory
 12-6    committee to assist in the preparation of the state strategic plan.
 12-7    The members of the advisory committee appointed by the executive
 12-8    director must be approved by the board and must include officers or
 12-9    employees of state government.  The telecommunications planning and
12-10    oversight council shall appoint one of its members to serve as a
12-11    member of the advisory committee.
12-12          SECTION 3.03. The heading of Subchapter H, Chapter 2054,
12-13    Government Code, is amended to read as follows:
12-14                SUBCHAPTER H.  TELECOMMUNICATIONS PLANNING
12-15                       AND OVERSIGHT COUNCIL [GROUP]
12-16          SECTION 3.04. Section 2054.201, Government Code, is amended
12-17    to read as follows:
12-18          Sec. 2054.201.  COMPOSITION; TERMS. (a)  The
12-19    telecommunications planning and oversight council [group] is
12-20    composed of:
12-21                (1)  a representative of the comptroller's office,
12-22    appointed by the comptroller;
12-23                (2)  the executive director of the Telecommunications
12-24    Infrastructure Fund Board;
12-25                (3)  a member representing the interests of state
12-26    agencies with 1,000 employees or more, appointed by the lieutenant
12-27    governor;
 13-1                (4)  a member representing the interests of state
 13-2    agencies with less than 1,000 employees, appointed by the speaker
 13-3    of the house of representatives;
 13-4                (5)  a member representing the interests of
 13-5    institutions of higher education, appointed by the commissioner of
 13-6    higher education;
 13-7                (6)  a member representing the interests of The
 13-8    University of Texas System, appointed by the chancellor;
 13-9                (7)  a member representing the interests of The Texas
13-10    A&M University System, appointed by the chancellor;
13-11                (8)  a member representing the interests of public
13-12    school districts that are customers of the consolidated
13-13    telecommunications system, appointed by the governor;
13-14                (9)  a member representing the interests of local
13-15    governments that are customers of the consolidated
13-16    telecommunications system, appointed by the governor; and
13-17                (10)  two public members with telecommunications
13-18    expertise, appointed by the governor [the comptroller, the
13-19    executive director of the department, and the executive director of
13-20    the General Services Commission].
13-21          (b)  Appointed members of the telecommunications planning and
13-22    oversight council serve two-year terms, except that the
13-23    representative of the comptroller's office serves at the discretion
13-24    of the comptroller [Each member of the group may designate an
13-25    employee of the member's agency to serve in the member's place].
13-26          (c)  Members of the telecommunications planning and oversight
13-27    council who represent a state agency shall abstain from any action
 14-1    taken by the council regarding a request for a waiver under Section
 14-2    2170.051 from the state agency that is represented by the member.
 14-3          SECTION 3.05. Subchapter H, Chapter 2054, Government Code, is
 14-4    amended by adding Section 2054.2011 to read as follows:
 14-5          Sec. 2054.2011.  DEFINITIONS. In this subchapter:
 14-6                (1)  "Consolidated telecommunications system" has the
 14-7    meaning assigned by Section 2170.001.
 14-8                (2)  "Centralized capitol complex telephone system"
 14-9    means the system described in Section 2170.059.
14-10          SECTION 3.06. Section 2054.202, Government Code, is amended
14-11    to read as follows:
14-12          Sec. 2054.202.  ADMINISTRATIVE PROVISIONS. (a)  The
14-13    telecommunications planning and oversight council [group] shall
14-14    post notice of its meetings in accordance with the open meetings
14-15    law, Chapter 551, in the manner required for a state governmental
14-16    body under that chapter.
14-17          (b)  The department shall provide [coordinate] the staff and
14-18    administrative support necessary for [provided to] the
14-19    telecommunications planning and oversight council to perform its
14-20    duties under this subchapter [group by the department, by the
14-21    comptroller, and by the General Services Commission].
14-22          (c)  The telecommunications planning and oversight council
14-23    [group] may periodically elect one of its members to serve as
14-24    presiding officer of the council [group].
14-25          SECTION 3.07. Section 2054.203, Government Code, is amended
14-26    by amending Subsections (a), (b), (c), and (d) and adding
14-27    Subsection (g) to read as follows:
 15-1          (a)  The telecommunications planning and oversight council
 15-2    [group] shall comprehensively collect and manage telecommunications
 15-3    network configuration information about existing and planned
 15-4    telecommunications networks throughout state government.
 15-5          (b)  The telecommunications planning and oversight council
 15-6    [group] may require state agencies to submit to the council [group]
 15-7    the agencies' network configuration information, but the council
 15-8    [group] must use existing reports to gather the information if
 15-9    possible and minimize the reporting burden on agencies to the
15-10    extent possible.
15-11          (c)  The telecommunications planning and oversight council
15-12    [group] shall establish plans and policies for a system of
15-13    telecommunications services to be managed and operated by the
15-14    department [General Services Commission].
15-15          (d)  The telecommunications planning and oversight council
15-16    [group] shall develop a statewide telecommunications operating plan
15-17    for all state agencies.  The plan shall implement a statewide
15-18    network and include technical specifications that are binding on
15-19    the department [General Services Commission].
15-20          (g)  The telecommunications planning and oversight council
15-21    shall perform strategic planning for all state telecommunications
15-22    services in accordance with the guiding principles of the state
15-23    strategic plan for information resources management.
15-24          SECTION 3.08. Sections 2054.204(a) and (c), Government Code,
15-25    are amended to read as follows:
15-26          (a)  The telecommunications planning and oversight council
15-27    [group] shall develop a plan for a state telecommunications network
 16-1    that will effectively and efficiently meet the long-term
 16-2    requirements of state government for voice, video, and computer
 16-3    communications, with the goal of achieving a single centralized
 16-4    telecommunications network for state government.
 16-5          (c)  The plan must incorporate efficiencies obtained through
 16-6    the use of shared transmission services and open systems
 16-7    architecture as they become available, building on existing systems
 16-8    as appropriate.  In developing the plan, the telecommunications
 16-9    planning and oversight council [group] shall make use of the
16-10    technical expertise of state agencies, including institutions of
16-11    higher education.
16-12          SECTION 3.09. Section 2054.205, Government Code, is amended
16-13    to read as follows:
16-14          Sec. 2054.205.  DEVELOPMENT OF SYSTEM. (a)  The
16-15    telecommunications planning and oversight council [group] shall
16-16    develop functional requirements for a statewide system of
16-17    telecommunications services for all state agencies.  Existing
16-18    networks, as configured on September 1, 1991, of institutions of
16-19    higher education are exempt from the requirements.
16-20          (b)  The telecommunications planning and oversight council
16-21    [group] shall develop requests for information and proposals for a
16-22    statewide system of telecommunications services for all state
16-23    agencies.
16-24          (c)  The telecommunications planning and oversight council
16-25    [group] shall negotiate rates and execute contracts with
16-26    telecommunications service providers for services.  The
16-27    telecommunications planning and oversight council [group] may:
 17-1                (1)  acquire transmission facilities by purchase,
 17-2    lease, or lease-purchase in accordance with Chapters 2155-2158; and
 17-3                (2)  develop, establish, and maintain carrier systems
 17-4    necessary to the operation of the telecommunications system.
 17-5          SECTION 3.10. Subchapter H, Chapter 2054, Government Code, is
 17-6    amended by adding Section 2054.2051 to read as follows:
 17-7          Sec. 2054.2051.  OVERSIGHT OF SYSTEMS. (a)  The
 17-8    telecommunications planning and oversight council shall develop
 17-9    service objectives for the consolidated telecommunications system
17-10    and the centralized capitol complex telephone system.
17-11          (b)  The telecommunications planning and oversight council
17-12    shall develop performance measures for the operations and staff of
17-13    the consolidated telecommunications system and the centralized
17-14    capitol complex telephone system.
17-15          (c)  The telecommunications planning and oversight council
17-16    shall review every three months the status of all projects related
17-17    to and the financial performance of the consolidated
17-18    telecommunications system and the centralized capitol complex
17-19    telephone system, including a comparison between actual performance
17-20    and projected goals.
17-21          (d)  The telecommunications planning and oversight council
17-22    shall make recommendations to the board on ways to improve the
17-23    operation of the consolidated telecommunications system and the
17-24    centralized capitol complex telephone system based on its review of
17-25    their performance and on concerns raised by using entities.
17-26          SECTION 3.11. Section 2054.206, Government Code, is amended
17-27    to read as follows:
 18-1          Sec. 2054.206.  ANNUAL REPORT. The telecommunications
 18-2    planning and oversight council shall submit an annual report to the
 18-3    department and to each entity served by the consolidated
 18-4    telecommunications system or the centralized capitol complex
 18-5    telephone system.  The report must include:
 18-6                (1)  information about the accomplishment of service
 18-7    objectives and other performance measures for management of the
 18-8    consolidated telecommunications system and the centralized capitol
 18-9    complex telephone system;
18-10                (2)  information about the accounting and financial
18-11    performance of the consolidated telecommunications system and the
18-12    centralized capitol complex telephone system;
18-13                (3)  estimates of savings to entities served by the
18-14    consolidated telecommunications system over standard rates
18-15    available to state agencies who acquire telecommunications services
18-16    directly;
18-17                (4)  trends in network use, including the number of
18-18    users, workstations, and locations supported; and
18-19                (5)  rate information for services provided by the
18-20    consolidated telecommunications system and the centralized capitol
18-21    complex telephone system.  [ADVISORY AGENCIES.  The following state
18-22    agencies shall formally advise the telecommunications planning
18-23    group and send representatives to meetings of the group:]
18-24                [(1)  the Texas Education Agency;]
18-25                [(2)  the Texas Higher Education Coordinating Board;]
18-26                [(3)  The Texas A&M University System;]
18-27                [(4)  The University of Texas System;]
 19-1                [(5)  the Telecommunications Infrastructure Fund Board;
 19-2    and]
 19-3                [(6)  the Texas State Library and Archives Commission.]
 19-4          SECTION 3.12. Section 2054.207, Government Code, is amended
 19-5    to read as follows:
 19-6          Sec. 2054.207.  REPORT TO LEGISLATURE. The telecommunications
 19-7    planning and oversight council [group] shall report biennially to
 19-8    the legislature not later than October 1 of each even-numbered year
 19-9    on the status of the current plan for a state telecommunications
19-10    network and on the progress state government has made towards
19-11    accomplishing the goals of the plan.  The report shall address
19-12    consolidated telecommunications system performance, centralized
19-13    capitol complex telephone system performance, telecommunications
19-14    system needs, and recommended statutory changes to enhance system
19-15    capability and cost-effectiveness.
19-16          SECTION 3.13. Section 2157.001(1), Government Code, is
19-17    amended to read as follows:
19-18                (1)  "Automated information system" includes:
19-19                      (A)  the computers and computer devices on which
19-20    an information system is automated, including computers and
19-21    computer devices that the commission identifies in guidelines
19-22    developed by the commission in consultation with the Department of
19-23    Information Resources and in accordance with Chapter 2054 and rules
19-24    adopted under that chapter;
19-25                      (B)  a service related to the automation of an
19-26    information system, including computer software or computers;
19-27                      (C)  a telecommunications apparatus or device
 20-1    that serves as a component of a voice, data, or video
 20-2    communications network for transmitting, switching, routing,
 20-3    multiplexing, modulating, amplifying, or receiving signals on the
 20-4    network, and services related to telecommunications that are not
 20-5    covered under Paragraph (D); and
 20-6                      (D)  for the Department of Information Resources
 20-7    [General Services Commission], as telecommunications provider for
 20-8    the state, the term includes any service provided by a
 20-9    telecommunications provider, as that term is defined by Section
20-10    51.002, Utilities Code.
20-11          SECTION 3.14. Section 2157.121, Government Code, is amended
20-12    by amending Subsection (b) and adding Subsection (c) to read as
20-13    follows:
20-14          (b)  A state agency, other than the Department of Information
20-15    Resources, shall send its proposal specifications and criteria to
20-16    the commission for approval or request the commission to develop
20-17    the proposal specifications and criteria.
20-18          (c)  The Department of Information Resources may acquire a
20-19    telecommunications device, system, or service or an automated
20-20    information system by using competitive sealed proposals without
20-21    regard to whether the commission makes the determination required
20-22    under Subsection (a) for other state agencies.
20-23          SECTION 3.15. Section 2170.001(a), Government Code, is
20-24    amended by adding Subdivision (3) to read as follows:
20-25                (3)  "Department" means the Department of Information
20-26    Resources.
20-27          SECTION 3.16. Section 2170.002, Government Code, is amended
 21-1    to read as follows:
 21-2          Sec. 2170.002.  DEPARTMENT [COMMISSION] RESPONSIBLE FOR
 21-3    OBTAINING TELECOMMUNICATIONS SERVICES. The department [commission]
 21-4    is the state agency responsible for obtaining telecommunications
 21-5    services.
 21-6          SECTION 3.17. Section 2170.003, Government Code, is amended
 21-7    to read as follows:
 21-8          Sec. 2170.003.  OWNERSHIP OR LEASE OF NECESSARY EQUIPMENT.
 21-9    The department [commission] may own, lease, or lease-purchase in
21-10    accordance with Chapters 2155, 2156, 2157, and 2158 any or all of
21-11    the facilities or equipment necessary to provide telecommunications
21-12    services.
21-13          SECTION 3.18. Section 2170.004, Government Code, is amended
21-14    to read as follows:
21-15          Sec. 2170.004.  CONTRACTS WITH ENTITIES OTHER THAN STATE
21-16    AGENCIES. The department [commission] may contract for use of the
21-17    consolidated telecommunications system with:
21-18                (1)  each house of the legislature;
21-19                (2)  a legislative agency;
21-20                (3)  an agency that is not a state agency as defined by
21-21    Section 2151.002; and
21-22                (4)  a political subdivision, including a county,
21-23    municipality, or district.
21-24          SECTION 3.19. Sections 2170.005(a) and (c), Government Code,
21-25    are amended to read as follows:
21-26          (a)  To ensure efficient operation of the consolidated
21-27    telecommunications system at minimum cost to the state, the
 22-1    department [commission] shall adopt and disseminate to all agencies
 22-2    appropriate guidelines, operating procedures, and telephone
 22-3    directories.
 22-4          (c)  Telephone directories published by the department
 22-5    [commission] under this section and Section 2170.059 must be
 22-6    revised regularly and must list state telephone numbers
 22-7    alphabetically by the subject matter of agency programs as well as
 22-8    alphabetically by agency.  The subject matter listing of programs
 22-9    and telephone numbers in the telephone directories must be
22-10    consistent with the categorization developed by the Records
22-11    Management Interagency Coordinating Council under Section 441.203
22-12    [441.053].  The department [commission] may authorize, under
22-13    procedures and rules considered appropriate by the department
22-14    [commission], a yellow pages advertising section in the directories
22-15    to recover development, publication, and distribution costs of the
22-16    directories.
22-17          SECTION 3.20. Section 2170.006, Government Code, is amended
22-18    to read as follows:
22-19          Sec. 2170.006.  COST-EFFECTIVENESS OF SYSTEM. (a)  The
22-20    department [commission], with the advice of the state auditor,
22-21    shall maintain records relating to the consolidated
22-22    telecommunications system necessary to enable the department
22-23    [commission] to analyze the cost-effectiveness of the system to
22-24    state agencies.
22-25          (b)  The department [commission] shall advise the legislature
22-26    at each session about the system's cost-effectiveness.
22-27          SECTION 3.21. Section 2170.008, Government Code, is amended
 23-1    to read as follows:
 23-2          Sec. 2170.008.  RATE INTERVENTION. (a)  If the department
 23-3    [commission] determines there is sufficient economic impact on
 23-4    state government, the department [commission] may intervene on
 23-5    behalf of state agencies in telecommunications rate cases and may
 23-6    hire special counsel and expert witnesses to prepare and present
 23-7    testimony.
 23-8          (b)  The attorney general shall represent the department
 23-9    [commission] before the courts in all appeals from rate cases in
23-10    which the department [commission] intervenes.
23-11          SECTION 3.22. Sections 2170.009(a) and (c), Government Code,
23-12    are amended to read as follows:
23-13          (a)  A pay telephone may be located in the capitol complex
23-14    only with the approval of the department [commission].  The
23-15    department [commission] shall collect the revenue from the
23-16    installation and operation of the pay telephone and deposit it to
23-17    the credit of the general revenue fund.
23-18          (c)  The department [commission] or other state entity shall
23-19    account for the revenue collected under this section in the
23-20    entity's annual report.
23-21          SECTION 3.23. Section 2170.051, Government Code, is amended
23-22    to read as follows:
23-23          Sec. 2170.051.  MANAGEMENT AND USE OF SYSTEM. (a)  The
23-24    department [commission] shall manage the operation of a system of
23-25    telecommunications services for all state agencies.  Each agency
23-26    shall identify its particular requirements for telecommunications
23-27    services and the site at which the services are to be provided.
 24-1          (b)  The department [commission] shall fulfill the
 24-2    telecommunications requirements of each state agency to the extent
 24-3    possible and to the extent that money is appropriated or available
 24-4    for that purpose.
 24-5          (c)  A state agency shall use the consolidated
 24-6    telecommunications system to the fullest extent possible.  A state
 24-7    agency may not acquire telecommunications services unless the
 24-8    telecommunications planning and oversight council [group]
 24-9    determines that the agency's requirement for telecommunications
24-10    services cannot be met at a comparable cost by the consolidated
24-11    telecommunications system.
24-12          (d)  A state agency may not enter into or renew a contract
24-13    with a carrier or other provider of telecommunications services
24-14    without obtaining a waiver from the telecommunications planning and
24-15    oversight council [group] certifying that the requested
24-16    telecommunications services cannot be provided at a comparable cost
24-17    on the consolidated telecommunications system.  The
24-18    telecommunications planning and oversight council [group] shall
24-19    evaluate requests for waivers based on cost-effectiveness to the
24-20    state government as a whole.  A waiver may be granted only for a
24-21    specific period and will automatically expire on the stated
24-22    expiration date unless an extension is approved by the
24-23    telecommunications planning and oversight council [group].  A
24-24    contract for telecommunications services obtained under waiver may
24-25    not extend beyond the expiration date of the waiver.  If the
24-26    telecommunications planning and oversight council [group] becomes
24-27    aware of any state agency receiving telecommunications services
 25-1    without a waiver, the telecommunications planning and oversight
 25-2    council [group] shall notify the agency and the comptroller.  The
 25-3    state agency shall have 60 days after notification by the
 25-4    telecommunications planning and oversight council [group] in which
 25-5    to submit a waiver request to the telecommunications planning and
 25-6    oversight council [group] documenting the agency's reasons
 25-7    [reasoning] for bypassing the consolidated telecommunications
 25-8    system and otherwise providing all information required by the
 25-9    waiver application form.
25-10          SECTION 3.24. Section 2170.052, Government Code, is amended
25-11    to read as follows:
25-12          Sec. 2170.052.  BALANCING TECHNOLOGICAL ADVANCEMENTS AND
25-13    EXISTING FACILITIES. In the planning, design, implementation, and
25-14    operation of the consolidated telecommunications system, the
25-15    department [commission] shall maintain an appropriate balance
25-16    between the adoption of technological advancements and the
25-17    efficient use of existing facilities and services to avoid
25-18    misapplication of state money and degradation or loss of the
25-19    integrity of existing systems and facilities.
25-20          SECTION 3.25. Section 2170.056, Government Code, is amended
25-21    to read as follows:
25-22          Sec. 2170.056.  COSTS TO STATE OF PARALLEL TOLLS. All
25-23    contracts with telecommunications carriers shall provide that the
25-24    department [commission] or any participating agency may obtain any
25-25    information relating to the costs to the state of parallel tolls.
25-26          SECTION 3.26. Sections 2170.057(a), (c), and (d), Government
25-27    Code, are amended to read as follows:
 26-1          (a)  The department [commission] shall develop a system of
 26-2    billings and charges for services provided in operating and
 26-3    administering the consolidated telecommunications system that
 26-4    allocates the total state cost to each entity served by the system
 26-5    based on proportionate usage.
 26-6          (c)  To provide an adequate cash flow as necessary for
 26-7    purposes of this chapter, using state agencies and other entities,
 26-8    on proper notification, shall make monthly payments into the
 26-9    telecommunications revolving fund account from appropriated or
26-10    other available money.  The legislature may appropriate money for
26-11    operating the system directly to the department [commission], in
26-12    which case the revolving fund account shall be used to receive
26-13    money due from local governmental entities and other agencies to
26-14    the extent that their money is not subject to legislative
26-15    appropriation.
26-16          (d)  The department [commission] shall maintain in the
26-17    revolving fund account sufficient amounts to pay the bills of the
26-18    consolidated telecommunications system and the centralized capitol
26-19    complex telephone system.  The department [commission] shall
26-20    certify amounts that exceed this amount to the comptroller, and the
26-21    comptroller shall transfer the excess amounts to the credit of the
26-22    statewide network applications account established by Section
26-23    2054.011 [22A, Information Resources Management Act (Article
26-24    4413(32j), Revised Statutes)].
26-25          SECTION 3.27. Sections 2170.058(b) and (c), Government Code,
26-26    are amended to read as follows:
26-27          (b)  The department [commission] shall adopt rules that
 27-1    govern student access to the system, including:
 27-2                (1)  times of access to the system; and
 27-3                (2)  the full recovery of actual costs from each
 27-4    student who uses the system.
 27-5          (c)  In consideration of the duties and responsibilities
 27-6    given the department [commission] under this chapter [subtitle], it
 27-7    is the policy of this state that a state agency or unit of state
 27-8    government may not provide telecommunications products or services
 27-9    to the general public in competition with private enterprise unless
27-10    there is a finding that providing the products or services is in
27-11    the public interest.  This subsection does not prohibit students
27-12    who reside in housing for which institutions of higher education
27-13    provide telephone service from using service provided under this
27-14    section.
27-15          SECTION 3.28. Section 2170.059, Government Code, is amended
27-16    to read as follows:
27-17          Sec. 2170.059.  CENTRALIZED CAPITOL COMPLEX TELEPHONE SYSTEM.
27-18    (a)  The department [commission] shall provide centralized
27-19    telephone service for state agencies, each house of the
27-20    legislature, and legislative agencies in the capitol complex.
27-21    State agencies in the capitol complex shall use the service.  Each
27-22    house of the legislature and each legislative agency shall use the
27-23    service at the discretion of the legislature.  The department
27-24    [commission] may provide the service to other state agencies that
27-25    subscribe to it.
27-26          (b)  Each using entity shall make monthly payments to the
27-27    department [commission] when billed by the department [commission].
 28-1          (c)  Each using entity may arrange for its own terminal
 28-2    telephone equipment, but the equipment must be compatible with the
 28-3    centralized telephone service.  The department [commission] shall
 28-4    make terminal equipment available for using entities that choose to
 28-5    use that terminal equipment.
 28-6          (d)  The department [commission] annually shall prepare and
 28-7    issue a revised centralized telephone service directory not later
 28-8    than March 31.
 28-9          SECTION 3.29. Subchapter B, Chapter 2170, Government Code, is
28-10    amended by adding Section 2170.060 to read as follows:
28-11          Sec. 2170.060.  QUARTERLY REPORT. The department shall
28-12    quarterly submit a report to the telecommunications planning and
28-13    oversight council on:
28-14                (1)  the department's accomplishment of service
28-15    objectives and other performance measures;
28-16                (2)  the financial performance of the consolidated
28-17    telecommunications system and the centralized capitol complex
28-18    telephone system; and
28-19                (3)  the status of projects for the consolidated
28-20    telecommunications system and the centralized capitol complex
28-21    telephone system.
28-22          SECTION 3.30. Section 2054.091(e), Government Code, is
28-23    repealed.
28-24          SECTION 3.31. Section 2170.007, Government Code, is repealed.
28-25          SECTION 3.32. On September 1, 2001:
28-26                (1)  the Department of Information Resources replaces
28-27    the General Services Commission as the telecommunications services
 29-1    provider for state government;
 29-2                (2)  all functions and activities performed by the
 29-3    General Services Commission that relate to providing
 29-4    telecommunications services for state government under Chapter
 29-5    2170, Government Code, or other law immediately before that date
 29-6    are transferred to the Department of Information Resources;
 29-7                (3)  all employees of the General Services Commission
 29-8    who primarily perform duties related to providing
 29-9    telecommunications services for state government, including
29-10    employees who provide administrative support for those services,
29-11    under Chapter 2170, Government Code, or other law become employees
29-12    of the Department of Information Resources, but continue to work in
29-13    the same physical location unless moved in accordance with the plan
29-14    created under Section 3.33 of this Act;
29-15                (4)  a rule or form adopted by the General Services
29-16    Commission that relates to providing telecommunications services
29-17    for state government under Chapter 2170, Government Code, or other
29-18    law is a rule or form of the Department of Information Resources
29-19    and remains in effect until changed by the department;
29-20                (5)  a reference in law to the General Services
29-21    Commission that relates to providing telecommunications services
29-22    for state government under Chapter 2170, Government Code, or other
29-23    law means the Department of Information Resources;
29-24                (6)  a waiver in effect that was issued by the General
29-25    Services Commission relating to telecommunications under Chapter
29-26    2170, Government Code, or other law is continued in effect as a
29-27    waiver of the Department of Information Resources;
 30-1                (7)  a rate case, contract negotiation, or other
 30-2    proceeding involving the General Services Commission that is
 30-3    related to providing telecommunications services for state
 30-4    government under Chapter 2170, Government Code, or other law is
 30-5    transferred without change in status to the Department of
 30-6    Information Resources, and the Department of Information Resources
 30-7    assumes, without a change in status, the position of the General
 30-8    Services Commission in a negotiation or proceeding relating to
 30-9    telecommunications to which the General Services Commission is a
30-10    party;
30-11                (8)  all money, contracts, leases, rights, and
30-12    obligations of the General Services Commission related to providing
30-13    telecommunications services for state government under Chapter
30-14    2170, Government Code, or other law are transferred to the
30-15    Department of Information Resources;
30-16                (9)  all property, including records, in the custody of
30-17    the General Services Commission related to providing
30-18    telecommunications services for state government under Chapter
30-19    2170, Government Code, or other law becomes property of the
30-20    Department of Information Resources, but stays in the same physical
30-21    location unless moved in accordance with the plan created under
30-22    Section 3.33 of this Act; and
30-23                (10)  all funds appropriated by the legislature to the
30-24    General Services Commission for purposes related to providing
30-25    telecommunications services for state government, including funds
30-26    for providing administrative support for those services such as
30-27    funds to pay the salary and benefits of employees who provide the
 31-1    administrative support, under Chapter 2170, Government Code, or
 31-2    other law are transferred to the Department of Information
 31-3    Resources.
 31-4          SECTION 3.33. The General Services Commission and the
 31-5    Department of Information Resources shall establish a transition
 31-6    plan for the transfer described in Section 3.32 of this Act.  The
 31-7    plan must include:
 31-8                (1)  a timetable for any necessary or advisable
 31-9    movement of the physical location of employees and property;
31-10                (2)  an inventory of all equipment and other property
31-11    required to be transferred;
31-12                (3)  a determination of any continued support and
31-13    cooperation the commission must provide the department to ensure an
31-14    efficient continuation of service and of planning for future needs,
31-15    and the period during which continued support and cooperation will
31-16    be necessary; and
31-17                (4)  provisions for the immediate access of the
31-18    Department of Information Resources to facilities that house
31-19    telecommunications equipment and any related facilities.
31-20          SECTION 3.34. (a)  The telecommunications planning group is
31-21    abolished.
31-22          (b)  The governor, the lieutenant governor, the speaker of
31-23    the house of representatives, the comptroller, the commissioner of
31-24    higher education, the chancellor of The University of Texas System,
31-25    and the chancellor of The Texas A&M University System shall make
31-26    appointments to the telecommunications planning and oversight
31-27    council in accordance with Section 2054.201, Government Code, as
 32-1    amended by this Act, as soon as possible after September 1, 2001.
 32-2          (c)  Any powers, duties, rights, contracts, appropriations,
 32-3    property, and records of the telecommunications planning group are
 32-4    transferred to the telecommunications planning and oversight
 32-5    council as created by this Act.
 32-6          (d)  A rule, policy, plan, waiver, standard, requirement, or
 32-7    guideline of the telecommunications planning group continues in
 32-8    effect as a rule, policy, plan, waiver, standard, requirement, or
 32-9    guideline of the telecommunications planning and oversight council
32-10    until it is superseded by an act of the telecommunications planning
32-11    and oversight council as created by this Act or until it expires
32-12    according to its terms or by operation of law.
32-13          (e)  The validity of a rule, policy, plan, requirement,
32-14    guideline, or procedure adopted, waiver granted, contract or
32-15    acquisition made, obligation incurred, right accrued, or other
32-16    action taken by or in connection with the authority of the
32-17    telecommunications planning group before it is abolished under
32-18    Subsection (a)  of this section is not affected by the abolishment.
32-19          SECTION 3.35. The telecommunications planning and oversight
32-20    council shall issue the first annual report required under Section
32-21    2054.206, Government Code, as amended by this Act, not later than
32-22    September 1, 2002.
32-23                    ARTICLE 4.  CONTRACTING GUIDELINES
32-24          SECTION 4.01. Subchapter C, Chapter 2054, Government Code, is
32-25    amended by adding Section 2054.058 to read as follows:
32-26          Sec. 2054.058.  CONTRACTING GUIDELINES. (a)  The department
32-27    with the assistance of the state auditor's office and the office of
 33-1    the attorney general shall develop contracting guidelines for state
 33-2    agencies.  The guidelines must be developed to accommodate the
 33-3    varying needs of state agencies.  The department shall include in
 33-4    the guidelines information regarding:
 33-5                (1)  contract monitoring;
 33-6                (2)  contractor selection;
 33-7                (3)  subcontractor performance; and
 33-8                (4)  standard contract provisions for common types of
 33-9    contracts.
33-10          (b)  The department shall:
33-11                (1)  create training materials for state agency
33-12    personnel who are directly or indirectly involved with contracts;
33-13                (2)  provide ongoing assistance and support for state
33-14    agency contracting efforts;
33-15                (3)  enter into an interagency agreement with the
33-16    office of the attorney general for legal assistance necessary in
33-17    implementing this section; and
33-18                (4)  identify the types of contracts that pose a risk
33-19    of loss to the state and require enhanced contract monitoring, and
33-20    rank the types of contracts according to the amount of risk posed.
33-21          (c)  Each state agency shall comply with the contracting
33-22    guidelines developed by the department under this section.
33-23          (d)  The contracting guidelines developed by the department
33-24    apply only to procurements made with appropriated money.
33-25          SECTION 4.02. (a)  An interagency work group is created to
33-26    assist the Department of Information Resources in developing
33-27    contracting guidelines for state agency use under Section 2054.058,
 34-1    Government Code, as added by this Act.
 34-2          (b)  The work group is composed of:
 34-3                (1)  a representative of:
 34-4                      (A)  the state auditor's office, appointed by the
 34-5    state auditor;
 34-6                      (B)  the office of the attorney general,
 34-7    appointed by the attorney general; and
 34-8                      (C)  the comptroller's office, appointed by the
 34-9    comptroller; and
34-10                (2)  additional members appointed by the governing
34-11    board of the Department of Information Resources from:
34-12                      (A)  institutions of higher education; and
34-13                      (B)  other state agencies.
34-14          (c)  The work group expires on September 1, 2002, unless
34-15    reconvened by the department, as needed.
34-16               ARTICLE 5.  COMMERCIALLY AVAILABLE ACTIVITIES
34-17          SECTION 5.01. Chapter 2152, Government Code, is amended by
34-18    adding Subchapter D to read as follows:
34-19             SUBCHAPTER D.  COMMERCIALLY AVAILABLE ACTIVITIES
34-20          Sec. 2152.151.  REVIEW PROCESS. (a)  The commission shall
34-21    develop a systematic review process to identify commercially
34-22    available services being performed by the commission and study the
34-23    services to determine if they may be better provided by other state
34-24    agency providers of the services or private commercial sources.
34-25          (b)  In reviewing its services, the commission shall:
34-26                (1)  determine whether competitive vendors exist in the
34-27    private sector;
 35-1                (2)  compare the cost of contracting for the services
 35-2    from other state agency providers of the services or private
 35-3    commercial sources to the commission's cost of performing the
 35-4    services; and
 35-5                (3)  document cost savings from contracting for the
 35-6    services from other state agency providers of the services or
 35-7    private commercial sources.
 35-8          (c)  Each commercially available service performed by the
 35-9    commission shall be reviewed at least once every six years.
35-10          (d)  The commission shall consult with the State Council on
35-11    Competitive Government as necessary in planning and conducting its
35-12    reviews under this subchapter.
35-13          Sec. 2152.152.  COST COMPARISON AND CONTRACT CONSIDERATIONS.
35-14    (a)  The commission shall consider all of its direct and indirect
35-15    costs in determining the cost of providing a service.
35-16          (b)  In comparing the cost of providing a service, the
35-17    commission must include the:
35-18                (1)  cost of supervising the work of a private
35-19    contractor; and
35-20                (2)  cost to the state of the commission's performance
35-21    of the service, including:
35-22                      (A)  the costs of the comptroller's office, the
35-23    office of the attorney general, and other support agencies; and
35-24                      (B)  other indirect costs related to the
35-25    commission's performance of the service.
35-26          Sec. 2152.153.  CONTRACTING WITH ANOTHER STATE AGENCY OR
35-27    PRIVATE SOURCE. (a)  If the commission determines that a service
 36-1    can be performed with a comparable or better level of quality at a
 36-2    savings to the state of at least 10 percent by using other state
 36-3    agency providers of the service or a private commercial source, the
 36-4    commission may contract with other state agency providers of the
 36-5    services or private commercial sources for the service.
 36-6          (b)  The commission maintains responsibility for providing a
 36-7    contracted service and shall set measurable performance standards
 36-8    for a contractor.
 36-9          Sec. 2152.154.  PROHIBITION. The commission may not begin
36-10    providing a service it did not already provide as of September 1,
36-11    2001, unless, after conducting an in-depth analysis on cost in
36-12    accordance with Section 2152.152 and on availability of a service,
36-13    it determines that it can perform the service at a higher level of
36-14    quality or at a lower cost than other state agency providers of the
36-15    service or private commercial sources.
36-16                  ARTICLE 6.  ELECTRONIC COMMERCE; TRAVEL
36-17          SECTION 6.01. Section 2155.062(a), Government Code, is
36-18    amended to read as follows:
36-19          (a)  In purchasing goods and services the commission may use,
36-20    but is not limited to, the:
36-21                (1)  contract purchase procedure;
36-22                (2)  multiple award contract procedure;  [or]
36-23                (3)  open market purchase procedure; or
36-24                (4)  reverse auction procedure.
36-25          SECTION 6.02. Sections 2155.083(c), (d), (f), (k), and (l),
36-26    Government Code, are amended to read as follows:
36-27          (c)  The commission [department] each business day shall
 37-1    produce and post a business daily in an electronic format.  The
 37-2    commission [department] shall post in the business daily
 37-3    information as prescribed by this section about each state agency
 37-4    procurement that will exceed $25,000 in value.  The commission
 37-5    [department] shall also post in the business daily other
 37-6    information relating to the business activity of the state that the
 37-7    commission [department] considers to be of interest to the public.
 37-8          (d)  The commission [department] shall make the business
 37-9    daily available on the Internet [through its information service
37-10    known as the Texas Marketplace or through a suitable successor
37-11    information service that will make the information available on the
37-12    Internet]. Each [The department and each] state agency shall
37-13    cooperate with the commission in making the electronic business
37-14    daily available.
37-15          (f)  The commission [department] and other state agencies may
37-16    not charge a fee designed to recover the cost of preparing and
37-17    gathering the information that is published in the business daily.
37-18    These costs are considered part of a procuring agency's
37-19    responsibility to publicly inform potential bidders or offerors of
37-20    its procurement opportunities.
37-21          (k)  Each state agency that will award a procurement contract
37-22    estimated to exceed $25,000 in value shall send to the commission
37-23    [department]:
37-24                (1)  the information the commission [department]
37-25    requires for posting in the state business daily under this
37-26    section; and
37-27                (2)  a notice when the procurement contract has been
 38-1    awarded or when the state agency has decided to not make the
 38-2    procurement.
 38-3          (l)  The commission [department] may adopt rules, prescribe
 38-4    forms, and require information to administer this section.  The
 38-5    commission [department] shall send any proposed rules to the
 38-6    governor, Legislative Budget Board, comptroller, and state auditor
 38-7    [, and commission] for review and comment.  The commission's
 38-8    [department's] rules shall require that each state agency, to the
 38-9    extent feasible, shall directly and electronically post its own
38-10    notices or solicitation packages under Subsections (g) and (h).
38-11          SECTION 6.03. Section 2171.052, Government Code, is amended
38-12    by adding Subsection (e) to read as follows:
38-13          (e)  The commission shall maintain at least one contract with
38-14    a provider of travel services that offers reservation and ticketing
38-15    services in person or by telephone.
38-16          SECTION 6.04. Subchapter B, Chapter 2171, Government Code, is
38-17    amended by adding Section 2171.0521 to read as follows:
38-18          Sec. 2171.0521.  ONLINE RESERVATION AND TICKETING SYSTEM. (a)
38-19    The Department of Information Resources, in consultation with the
38-20    commission, shall establish an online travel reservation and
38-21    ticketing system for use by state agencies participating in the
38-22    commission's contracts for travel services.  The Department of
38-23    Information Resources, in consultation with the commission, shall
38-24    enter into contracts with private or public entities to establish a
38-25    secure system for use by state employees traveling on state
38-26    business.  Reservations must be made with a state-issued credit
38-27    card.
 39-1          (b)  When the online reservation and ticketing system becomes
 39-2    fully operational, as determined by the Department of Information
 39-3    Resources, the commission shall assume management and
 39-4    administrative responsibility for the  system.  The commission, in
 39-5    consultation with the Department of Information Resources,  shall
 39-6    enter into contracts with private or public entities to maintain
 39-7    all or part of the system.
 39-8          (c)  The preference in Section 2171.052(c) for a resident
 39-9    entity of this state does not apply to this section.
39-10          (d)  A state agency may use the online reservation and
39-11    ticketing system to make travel reservations for  a state employee
39-12    traveling on state business.
39-13          SECTION 6.05. Chapter 2177, Government Code, is amended to
39-14    read as follows:
39-15                    CHAPTER 2177.  ELECTRONIC COMMERCE
39-16                     SUBCHAPTER A.  GENERAL PROVISIONS
39-17          Sec. 2177.001.  DEFINITION. In this chapter, "department"
39-18    means the Department of Information Resources.
39-19          Sec. 2177.002.  SMALL AND HISTORICALLY UNDERUTILIZED
39-20    BUSINESSES. The commission and the department shall ensure that
39-21    small and historically underutilized businesses have maximum access
39-22    to electronic commerce opportunities.
39-23             SUBCHAPTER B.  ELECTRONIC PROCUREMENT MARKETPLACE
39-24          Sec. 2177.051.  ELECTRONIC PROCUREMENT MARKETPLACE. (a)  The
39-25    department, in consultation with the commission, shall establish
39-26    [and manage] an electronic procurement marketplace.  The
39-27    department, in consultation with the commission, may enter into
 40-1    contracts with private or public entities to establish [or
 40-2    maintain] all or part of the databases comprising the marketplace,
 40-3    to the extent feasible, including contracts to procure hardware or
 40-4    software.  The department, in consultation with the commission,
 40-5    shall procure all goods and services related to the marketplace
 40-6    through a competitive selection process appropriate for the good or
 40-7    service being acquired.
 40-8          (b)  The department [commission], in consultation with the
 40-9    commission [Department of Information Resources], shall define
40-10    standards, including keyword and product code standards, for the
40-11    electronic procurement marketplace.  The marketplace may contain:
40-12                (1)  information relevant to the state's standard
40-13    procurement specifications for goods and services;
40-14                (2)  information about vendors, including [information
40-15    from the centralized master bidders list and] vendor performance
40-16    information;
40-17                (3)  information about products, including product
40-18    testing results;
40-19                (4)  historical purchasing information, qualified
40-20    purchase lists, and trends; and
40-21                (5)  information about the availability of surplus
40-22    property.
40-23          (c)  The department, in consultation with the commission,
40-24    shall integrate the centralized master bidders list and the
40-25    business daily into the electronic procurement marketplace.
40-26          (d)  The department, in consultation with the commission, may
40-27    adopt rules relating to the design and use of the electronic
 41-1    procurement marketplace, including rules that require state
 41-2    agencies to provide information for or receive information from the
 41-3    marketplace.
 41-4          (e)  When the electronic procurement marketplace becomes
 41-5    fully operational, as determined by the department, the commission
 41-6    shall assume management and administrative responsibility for the
 41-7    marketplace.  The commission, in consultation with the department,
 41-8    may enter into contracts with private or public entities to
 41-9    maintain all or part of the databases comprising the marketplace.
41-10          (f) [(d)]  The commission may make state procurement
41-11    information available to political subdivisions through the
41-12    electronic procurement marketplace on a fee-for-service basis.  The
41-13    commission shall set the fees in an amount that recovers the
41-14    state's costs in providing the access to a political subdivision.
41-15          (g) [(e)]  Before developing a contract for the procurement
41-16    of a good or service, a state agency shall [may] use the electronic
41-17    procurement marketplace to determine the most appropriate method
41-18    for acquiring the good or service.
41-19          (h) [(f)]  The marketplace may contain:
41-20                (1)  information relevant to the state's standard
41-21    procurement specifications for goods and services;
41-22                (2)  information about vendors, including [information
41-23    from the centralized master bidders list and] vendor performance
41-24    information;
41-25                (3)  information about products, including product
41-26    testing results; and
41-27                (4)  historical purchasing information, qualified
 42-1    purchase lists, and trends.
 42-2          (i) [(g)]  The commission may require information from a
 42-3    state agency for inclusion in the electronic procurement
 42-4    marketplace.
 42-5                SUBCHAPTER C.  ELECTRONIC COMMERCE NETWORK
 42-6          Sec. 2177.101.  EXCEPTIONS. (a)  This subchapter does not
 42-7    apply to procurements for major construction projects, as defined
 42-8    by the commission in consultation with the department, such as
 42-9    procurements made under Chapter 223, Transportation Code.  In
42-10    defining a major construction project, the commission shall base
42-11    its decision on whether the nature of the project, any related
42-12    contract or specifications, or other considerations are of a type
42-13    that would make electronic procurement inappropriate.
42-14          (b)  The exceptions listed under Section 2166.003(a) apply to
42-15    this subchapter.
42-16          Sec. 2177.102 [2177.002].  ELECTRONIC COMMERCE NETWORK. (a)
42-17    The department, in consultation with the commission, shall
42-18    establish [and manage] an electronic commerce network, to the
42-19    extent feasible, under which the state's purchasing transactions
42-20    with vendors can be accomplished electronically by means of
42-21    facsimile transmissions and on-line transmission of necessary
42-22    information.  The department, in consultation with the commission,
42-23    may adopt rules relating to the design and use of the electronic
42-24    commerce network [The commission shall comply with applicable rules
42-25    of the Department of Information Resources to the extent that they
42-26    are based on the standard data protocol developed by the American
42-27    National Standards Institute known as electronic data interchange
 43-1    or on other efficient standards as determined by the commission].
 43-2          (b)  The department, in consultation with the commission, may
 43-3    enter into contracts with one or more public or private entities to
 43-4    establish [or support] various elements of the network.  The
 43-5    department, in consultation with the commission, shall procure all
 43-6    goods and services related to the network through the competitive
 43-7    selection process appropriate for the good or service being
 43-8    acquired.
 43-9          (c)  The department, in consultation with the commission, may
43-10    provide for a gateway between the electronic procurement
43-11    marketplace and the electronic commerce network so that the
43-12    elements of a procurement transaction that are within state
43-13    government and the elements of a procurement transaction that
43-14    involve communication with a vendor may all be accomplished
43-15    electronically.
43-16          (d)  When the electronic commerce network becomes fully
43-17    operational, as determined by the department, the commission shall
43-18    assume management and administrative responsibility for the
43-19    network. The commission, in consultation with the department,  may
43-20    enter into contracts with one or more public or private entities to
43-21    maintain or support various elements of the network.
43-22          (e)  Each state agency [that is capable of participating in
43-23    the electronic commerce network] must participate in the network
43-24    and participate in contracts entered into by the department or the
43-25    commission for the establishment or support of the network.  The
43-26    commission shall charge an agency a fee for network services
43-27    provided to the agency by the commission or by a contractor so that
 44-1    the cost of providing network services to an agency is paid by the
 44-2    agency.
 44-3          (f) [(e)]  The commission may allow political subdivisions
 44-4    and other public entities that are members of the commission's
 44-5    cooperative purchasing program to participate in the electronic
 44-6    commerce network.  The commission shall require that a
 44-7    participating political subdivision or other entity is charged a
 44-8    fee for the network services in the same manner that participating
 44-9    state agencies are charged fees under Subsection (e) [(d)].
44-10          (g) [(f)]  The commission may also charge private businesses
44-11    a fee for accessing the network.
44-12          (h) [(g)]  The commission may:
44-13                (1)  adopt rules relating to the management or support
44-14    of the network [to administer this section]; and
44-15                (2)  require participating state agencies, political
44-16    subdivisions, and other public entities to designate a network
44-17    coordinator.
44-18          (i) [(h)]  The requirements of this subchapter [section and
44-19    Section 2177.003] are in addition to the requirements of other law
44-20    relating to the solicitation of bids, proposals, or expressions of
44-21    interest for a procurement by the commission or another state
44-22    agency.  This subchapter does [section and Section 2177.003 do] not
44-23    affect any other law that requires the commission or another state
44-24    agency to award a procurement contract through competitive bidding,
44-25    competitive sealed proposals, or another method.
44-26          Sec. 2177.103 [2177.003].  PARTICIPATION BY STATE AGENCIES IN
44-27    ELECTRONIC COMMERCE NETWORK. (a)  Each state agency shall send to
 45-1    the commission for posting on the electronic commerce network
 45-2    information on each procurement contract the commission, in
 45-3    consultation with the department, determines is appropriate for
 45-4    electronic procurement [the value of which will exceed the amount
 45-5    of the agency's delegated purchasing authority under Section
 45-6    2155.132]:
 45-7                (1)  without regard to the source of funds the agency
 45-8    will use for the procurement; and
 45-9                (2)  including a procurement that is:
45-10                      (A)  a procurement by a state agency that is
45-11    otherwise exempt from the commission's purchasing authority;
45-12                      (B)  made under delegated purchasing authority
45-13    under Section 2155.131; or
45-14                      (C)  [related to a construction project; or]
45-15                      [(D)]  a procurement of professional or
45-16    consulting services.
45-17          (b)  The commission and each state agency shall include in
45-18    the information placed on the electronic commerce network, to the
45-19    extent it is feasible, the following information for each
45-20    procurement that the commission will make or that another state
45-21    agency will make under Subsection (a):
45-22                (1)  a description of the goods or services to be
45-23    procured;
45-24                (2)  the estimated quantity of the goods or services to
45-25    be procured;
45-26                (3)  if applicable, the previous price paid by the
45-27    commission or another state agency for the same or similar goods or
 46-1    services;
 46-2                (4)  the estimated date on which the goods or services
 46-3    to be procured will be needed; and
 46-4                (5)  the name, business mailing address, and business
 46-5    telephone number of the commission employee or other state agency
 46-6    employee a person can contact to obtain all necessary information
 46-7    relating to making a bid or proposal or other applicable expression
 46-8    of interest for the procurement contract.
 46-9          (c)  The commission shall also post on the electronic
46-10    commerce network other information relating to the business
46-11    activity of the state that the commission considers to be of
46-12    interest to the public.  Each state agency shall provide the
46-13    commission with information the commission requires for purposes of
46-14    this subsection in a format prescribed by the commission.
46-15          (d)  Each state agency that will award a contract that has
46-16    been placed on the electronic commerce network under Subsection (a)
46-17    shall place notification of the awarding of the contract on the
46-18    electronic commerce network.
46-19          SECTION 6.06. Section 2155.083(b), Government Code, is
46-20    repealed.
46-21          SECTION 6.07. On September 1, 2001:
46-22                (1)  all functions and activities performed by the
46-23    General Services Commission relating to the establishment of the
46-24    electronic procurement marketplace or the electronic commerce
46-25    network under Chapter 2177, Government Code, immediately before
46-26    that date are transferred to the Department of Information
46-27    Resources;
 47-1                (2)  a rule or form adopted by the General Services
 47-2    Commission that relates to the establishment of the electronic
 47-3    procurement marketplace or the electronic commerce network under
 47-4    Chapter 2177, Government Code, is a rule or form of the Department
 47-5    of Information Resources and remains in effect until changed by the
 47-6    department;
 47-7                (3)  a reference in law to the General Services
 47-8    Commission that relates to the establishment of the electronic
 47-9    procurement marketplace or the electronic commerce network under
47-10    Chapter 2177, Government Code, means the Department of Information
47-11    Resources;
47-12                (4)  a contract negotiation or other proceeding
47-13    involving the General Services Commission that is related to the
47-14    establishment of the electronic procurement marketplace or the
47-15    electronic commerce network under Chapter 2177, Government Code, is
47-16    transferred without change in status to the Department of
47-17    Information Resources, and the Department of Information Resources
47-18    assumes, without a change in status, the position of the General
47-19    Services Commission in the negotiation or proceeding to which the
47-20    General Services Commission is a party;
47-21                (5)  all money, contracts, leases, rights, and
47-22    obligations of the General Services Commission related to the
47-23    establishment of the electronic procurement marketplace or the
47-24    electronic commerce network under Chapter 2177, Government Code,
47-25    are transferred to the Department of Information Resources;
47-26                (6)  all property, including records, in the custody of
47-27    the General Services Commission related to the establishment of the
 48-1    electronic procurement marketplace or the electronic commerce
 48-2    network under Chapter 2177, Government Code, is transferred to the
 48-3    Department of Information Resources; and
 48-4                (7)  all funds appropriated by the legislature to the
 48-5    General Services Commission related to the establishment of the
 48-6    electronic procurement marketplace or the electronic commerce
 48-7    network under Chapter 2177, Government Code, are transferred to the
 48-8    Department of Information Resources.
 48-9          SECTION 6.08. The General Services Commission and the
48-10    Department of Information Resources shall work together to
48-11    administer the transfer prescribed by this article and to ensure
48-12    that the personnel of the General Services Commission who primarily
48-13    perform duties related to the establishment of the electronic
48-14    procurement marketplace or the electronic commerce network under
48-15    Chapter 2177, Government Code, are loaned to the Department of
48-16    Information Resources until the electronic procurement marketplace
48-17    and the electronic commerce network under Chapter 2177, Government
48-18    Code, become fully operational as determined by the Department of
48-19    Information Resources.
48-20          SECTION 6.09. Once the electronic procurement marketplace and
48-21    the electronic commerce network under Chapter 2177, Government
48-22    Code, and the online reservation and ticketing system under Chapter
48-23    2171, Government Code, become fully operational as determined by
48-24    the Department of Information Resources, all funds, obligations,
48-25    contracts, property, and records of the Department of Information
48-26    Resources related to the marketplace, network, and system become
48-27    the funds, obligations, contracts, property, and records of the
 49-1    General Services Commission.
 49-2          SECTION 6.10. On September 1, 2001:
 49-3                (1)  all functions and activities performed by the
 49-4    Texas Department of Economic Development relating to the business
 49-5    daily under Chapter 2155, Government Code, or other law immediately
 49-6    before that date are transferred to the General Services
 49-7    Commission;
 49-8                (2)  a rule or form adopted by the Texas Department of
 49-9    Economic Development that relates to the business daily under
49-10    Chapter 2155, Government Code, or other law is a rule or form of
49-11    the General Services Commission and remains in effect until altered
49-12    by the commission;
49-13                (3)  a reference in law to the Texas Department of
49-14    Economic Development that relates to the business daily under
49-15    Chapter 2155, Government Code, or other law means the General
49-16    Services Commission;
49-17                (4)  all rights and obligations of the Texas Department
49-18    of Economic Development related to the business daily under Chapter
49-19    2155, Government Code, or other law are transferred to the General
49-20    Services Commission; and
49-21                (5)  all property, including records, in the custody of
49-22    the Texas Department of Economic Development related to the
49-23    business daily under Chapter 2155, Government Code, or other law is
49-24    transferred to the General Services Commission.
49-25          SECTION 6.11. The Department of Information Resources shall
49-26    have the online reservation and ticketing system created under
49-27    Section 2171.0521, Government Code, as added by this Act, fully
 50-1    operational by September 1, 2002.
 50-2                        ARTICLE 7.  STATE CEMETERY
 50-3          SECTION 7.01. Section 2165.256(a), Government Code, is
 50-4    amended to read as follows:
 50-5          (a)  The State Cemetery Committee shall oversee all
 50-6    operations of the State Cemetery.  The committee shall develop a
 50-7    budget for the operations of the commission relating to the State
 50-8    Cemetery and determine the salary of employees of the commission
 50-9    whose duties primarily relate to the operation of the State
50-10    Cemetery.
50-11          SECTION 7.02. Section 2165.2561, Government Code, is amended
50-12    by amending Subsection (k) and adding Subsections (n)-(u) to read
50-13    as follows:
50-14          (k)  The legislature shall separately appropriate money to
50-15    the committee within the appropriations to the General Services
50-16    Commission for all matters relating to the operation of the State
50-17    Cemetery.  [At the direction of the committee, the General Services
50-18    Commission shall spend money appropriated to or budgeted by the
50-19    General Services Commission for State Cemetery purposes.]
50-20    Activities relating to maintenance of the State Cemetery grounds
50-21    and monuments shall conform to guidelines for historic preservation
50-22    submitted to the committee by the Texas Historical Commission.
50-23          (n)  It is a ground for removal from the committee that a
50-24    member:
50-25                (1)  does not have at the time of taking office the
50-26    qualifications required by Subsection (a);
50-27                (2)  does not maintain during service on the committee
 51-1    the qualifications required by Subsection (a);
 51-2                (3)  is ineligible for membership under Subsection (g)
 51-3    or (h);
 51-4                (4)  cannot, because of illness or disability,
 51-5    discharge the member's duties for a substantial part of the
 51-6    member's term; or
 51-7                (5)  is absent from more than half of the regularly
 51-8    scheduled committee meetings that the member is eligible to attend
 51-9    during a calendar year without an excuse approved by  a majority
51-10    vote of the committee.
51-11          (o)  The validity of an action of the committee is not
51-12    affected by the fact that it is taken when a ground for removal of
51-13    a committee member exists.
51-14          (p)  If the executive director of the commission has
51-15    knowledge that a potential ground for removal exists, the executive
51-16    director shall notify the presiding officer of the committee of the
51-17    potential ground.  The presiding officer shall then notify the
51-18    governor and the attorney general that a potential ground for
51-19    removal exists.  If the potential ground for removal involves the
51-20    presiding officer, the executive director shall notify the next
51-21    highest ranking officer of the committee, who shall then notify the
51-22    governor and the attorney general that a potential ground for
51-23    removal exists.
51-24          (q)  The executive director of the commission or the
51-25    executive director's designee shall provide to members of the
51-26    committee, as often as necessary, information regarding the
51-27    requirements for office under this chapter, including information
 52-1    regarding a person's responsibilities under applicable laws
 52-2    relating to standards of conduct for state officers.
 52-3          (r)  A person who is appointed to and qualifies for office as
 52-4    a member of the committee may not vote, deliberate, or be counted
 52-5    as a member in attendance at a meeting of the committee until the
 52-6    person completes a training program that complies with this
 52-7    subsection.  The training program must provide the person with
 52-8    information regarding:
 52-9                (1)  the legislation that created the State Cemetery
52-10    and the State Cemetery Committee;
52-11                (2)  the programs operated by the committee;
52-12                (3)  the role and functions of the committee;
52-13                (4)  the rules of the committee, with an emphasis on
52-14    any rules that relate to disciplinary and investigatory authority;
52-15                (5)  the current budget for the committee;
52-16                (6)  the results of the most recent formal audit of
52-17    cemetery operations;
52-18                (7)  the requirements of:
52-19                      (A)  the open meetings law, Chapter 551;
52-20                      (B)  the public information law, Chapter 552;
52-21                      (C)  the administrative procedure law, Chapter
52-22    2001; and
52-23                      (D)  other laws relating to public officials,
52-24    including conflict-of-interest laws; and
52-25                (8)  any applicable ethics policies adopted by the
52-26    commission, the committee, or the Texas Ethics Commission.
52-27          (s)  A person appointed to the committee is entitled to
 53-1    reimbursement, as provided by Chapter 660 and the General
 53-2    Appropriations Act, for the travel expenses incurred in attending
 53-3    the training program regardless of whether the attendance at the
 53-4    program occurs before or after the person qualifies for office.
 53-5          (t)  The committee shall develop and implement policies that
 53-6    clearly separate the policymaking responsibilities of the committee
 53-7    and the management responsibilities of the executive director of
 53-8    the commission and staff of the cemetery.
 53-9          (u)  The committee shall develop and implement policies that
53-10    provide the public with a reasonable opportunity to appear before
53-11    the committee and to speak on any issue under the jurisdiction of
53-12    the committee.
53-13          SECTION 7.03. (a)  The changes in law made by this Act in the
53-14    prohibitions and qualifications applying to members of the State
53-15    Cemetery Committee do not affect the entitlement of a member
53-16    serving on the committee immediately before September 1, 2001, to
53-17    continue to serve and function as a member of the committee for the
53-18    remainder of the member's term.  The changes in law apply only to a
53-19    member appointed on or after September 1, 2001. This Act does not
53-20    prohibit a person who is a member of the State Cemetery Committee
53-21    immediately before September 1, 2001, from being reappointed as a
53-22    committee member if the person has the qualifications required for
53-23    the position under Chapter 2165, Government Code, as amended by
53-24    this Act.
53-25          (b)  Section 2165.2561(r), Government Code, as added by this
53-26    Act, does not apply to a member of the State Cemetery Committee
53-27    until March 1, 2002.
 54-1          SECTION 7.04. The changes in law made by this Act to the
 54-2    State Cemetery's budget and appropriations process apply beginning
 54-3    with the fiscal year beginning on September 1, 2003.
 54-4             ARTICLE 8.  CONTRACTING METHODS FOR CONSTRUCTION
 54-5                            OF STATE FACILITIES
 54-6          SECTION 8.01. Subchapter F, Chapter 2166, Government Code, is
 54-7    amended by adding Section 2166.2511 to read as follows:
 54-8          Sec. 2166.2511.  DEFINITIONS. In this subchapter:
 54-9                (1)  "Architect" means an individual registered as an
54-10    architect under Chapter 478, Acts of the 45th Legislature, Regular
54-11    Session, 1937 (Article 249a, Vernon's Texas Civil Statutes).
54-12                (2)  "Contractor" in the context of a contract for a
54-13    project means a sole proprietorship, partnership, corporation, or
54-14    other legal entity that assumes the risk for constructing,
54-15    rehabilitating, altering, or repairing all or part of the project
54-16    at the contracted price.
54-17                (3)  "Engineer" means an individual registered as a
54-18    professional engineer under The Texas Engineering Practice Act
54-19    (Article 3271a, Vernon's Texas Civil Statutes).
54-20                (4)  "Facility" means real property, including
54-21    buildings and associated structures and improved or unimproved
54-22    land.
54-23                (5)  "Fee" in the context of a contract for a project
54-24    means the payment a construction manager receives for its overhead
54-25    and profit in performing its services.
54-26                (6)  "General conditions" in the context of a  contract
54-27    for a project means on-site management, administrative personnel,
 55-1    insurance, bonds, equipment, utilities, and incidental work,
 55-2    including minor field labor and materials.
 55-3          SECTION 8.02. Subchapter F, Chapter 2166, Government Code, is
 55-4    amended by adding Section 2166.2525 to read as follows:
 55-5          Sec. 2166.2525.  DETERMINATION OF CONTRACTING METHOD. The
 55-6    commission shall adopt rules that determine the circumstances for
 55-7    use of each method of contracting allowed under this subchapter for
 55-8    design and construction services.  In developing the rules, the
 55-9    commission shall solicit advice and comment from design and
55-10    construction professionals regarding the criteria the commission
55-11    will use in determining which contracting method is best suited for
55-12    a project.
55-13          SECTION 8.03. Subchapter F, Chapter 2166, Government Code, is
55-14    amended by adding Section 2166.2526 to read as follows:
55-15          Sec. 2166.2526.  EVALUATION OF BIDS AND PROPOSALS FOR
55-16    CONSTRUCTION SERVICES. (a)  For each project, the commission must,
55-17    before advertising, establish which method of contracting provides
55-18    the best value for the commission or using agency.
55-19          (b)  Under each method of contracting, the commission shall
55-20    base its selection among the offerors on criteria established by
55-21    the commission.  The commission shall publish in the request for
55-22    bids, proposals, or qualifications the criteria that will be used
55-23    to evaluate the offerors.
55-24          (c)  The commission shall document the basis of its selection
55-25    of an offeror and shall make the evaluations public not later than
55-26    the seventh day after the date the contract is awarded.
55-27          SECTION 8.04. Section 2166.253, Government Code, is amended
 56-1    to read as follows:
 56-2          Sec. 2166.253.  LOWEST AND BEST BID METHOD [BIDDING
 56-3    PROCEDURES]. (a)  The commission may use the lowest and best bid
 56-4    method for a project.  In using that method, the commission shall
 56-5    follow the procedures provided by Subsections (b)-(g).
 56-6          (b)  After final approval of a project's working plans and
 56-7    specifications and their acceptance by a using agency, the
 56-8    commission shall advertise in one newspaper of general circulation
 56-9    and the Texas Register for bids or proposals for the construction
56-10    of and related work on the project.
56-11          (c) [(b)]  Except as provided by Subsection (d) [(c)], the
56-12    commission shall allow bidders not less than 30 days after the date
56-13    the commission issues the bid documents to respond to an invitation
56-14    to bid.
56-15          (d) [(c)]  The commission shall allow bidders for small
56-16    construction projects not less than 14 days after the date the
56-17    commission issues the bid documents to respond to an invitation to
56-18    bid.
56-19          (e) [(d)]  The commission may shorten the time for response
56-20    to prevent undue additional costs to a state agency or, for
56-21    emergency projects, to prevent or remove a hazard to life or
56-22    property.
56-23          (f)  A contract shall be awarded to the qualified bidder
56-24    making the lowest and best bid in accordance with the law on
56-25    awarding a state contract.
56-26          (g)  The commission may reject all bids.
56-27          SECTION 8.05. Subchapter F, Chapter 2166, Government Code, is
 57-1    amended by adding Section 2166.2531 to read as follows:
 57-2          Sec. 2166.2531.  DESIGN-BUILD METHOD. (a)  In this section:
 57-3                (1)  "Design-build contract" means a single contract
 57-4    with a design-build firm for the design and construction of a
 57-5    facility.
 57-6                (2)  "Design-build firm" means a partnership,
 57-7    corporation, or other legal entity or team that includes an
 57-8    engineer or architect and a builder qualified to engage in building
 57-9    construction in this state.
57-10                (3)  "Design criteria package" means a set of documents
57-11    that provides sufficient information to permit a design-build firm
57-12    to prepare a response to the commission's request for
57-13    qualifications and any additional information requested, including
57-14    criteria for selection.  The design criteria package must specify
57-15    criteria the commission considers necessary to describe the project
57-16    and may include, as appropriate, the legal description of the site,
57-17    survey information concerning the site, interior space
57-18    requirements, special material requirements, material quality
57-19    standards, conceptual criteria for the project, special equipment
57-20    requirements, cost or budget estimates, time schedules, quality
57-21    assurance and quality control requirements, site development
57-22    requirements, applicable codes and ordinances, provisions for
57-23    utilities, parking requirements, or any other requirement, as
57-24    applicable.
57-25          (b)  The commission may use the design-build method for a
57-26    project.  In using that method and in entering into a contract for
57-27    the services of a design-build firm, the commission and the
 58-1    design-build firm shall follow the procedures provided by
 58-2    Subsections (c)-(k).
 58-3          (c)  The commission may designate an engineer or architect to
 58-4    act as its representative.  If the commission's engineer or
 58-5    architect is not a full-time employee of the commission, any
 58-6    engineer or architect designated shall be selected on the basis of
 58-7    demonstrated competence and qualifications in accordance with
 58-8    Subchapter A, Chapter 2254.
 58-9          (d)  The commission shall prepare a request for
58-10    qualifications that includes general information on the project
58-11    site, project scope, budget, special systems, selection criteria,
58-12    and other information that may assist potential design-build firms
58-13    in submitting proposals for the project.  The commission shall also
58-14    prepare a design criteria package that includes more detailed
58-15    information on the project.  If the preparation of the design
58-16    criteria package requires engineering or architectural services
58-17    that constitute the practice of engineering within the meaning of
58-18    The Texas Engineering Practice Act (Article 3271a, Vernon's Texas
58-19    Civil Statutes) or the practice of architecture within the meaning
58-20    of Chapter 478, Acts of the 45th Legislature, Regular Session, 1937
58-21    (Article 249a, Vernon's Texas Civil Statutes), those services shall
58-22    be provided in accordance with the applicable law.
58-23          (e)  The commission or its representative shall publish the
58-24    request for qualifications in a manner prescribed by the
58-25    commission.
58-26          (f)(1)  The commission or its representative shall evaluate
58-27    statements of qualifications and select a design-build firm in two
 59-1    phases.
 59-2                (2)  In phase one, the commission or its representative
 59-3    shall prepare a request for qualifications and evaluate each
 59-4    offeror's experience, technical competence, and capability to
 59-5    perform, the past performance of the offeror's team and members of
 59-6    the team, and other appropriate factors submitted by the team or
 59-7    firm in response to the request for qualifications, except that
 59-8    cost-related or price-related evaluation factors are not permitted.
 59-9    Each offeror must certify to the commission that each engineer or
59-10    architect that is a member of its team was selected based on
59-11    demonstrated competence and qualifications.  The commission or its
59-12    representative shall qualify a maximum of five offerors to submit
59-13    additional information and, if the commission or its representative
59-14    chooses, to interview for final selection.
59-15                (3)  In phase two, the commission or its representative
59-16    shall evaluate the information submitted by the offerors on the
59-17    basis of the selection criteria stated in the request for
59-18    qualifications and the results of any interview.  The commission or
59-19    its representative may request additional information regarding
59-20    demonstrated competence and qualifications, considerations of the
59-21    safety and long-term durability of the project, the feasibility of
59-22    implementing the project as proposed, the ability of the offeror to
59-23    meet schedules, costing methodology, or other factors as
59-24    appropriate.  The commission or its representative may not require
59-25    offerors to submit detailed engineering or architectural designs as
59-26    part of the proposal.  The commission or its representative shall
59-27    rank each proposal submitted on the basis of the criteria specified
 60-1    in the request for qualifications.  The commission or its
 60-2    representative shall select the design-build firm that submits the
 60-3    proposal offering the best value for the commission or using agency
 60-4    on the basis of the published selection criteria and on its ranking
 60-5    evaluations.  The commission or its representative shall first
 60-6    attempt to negotiate a contract with the selected offeror.  If the
 60-7    commission or its representative is unable to negotiate a
 60-8    satisfactory contract with the selected offeror, the commission
 60-9    shall, formally and in writing, end all negotiations with that
60-10    offeror and proceed to negotiate with the next offeror in the order
60-11    of the selection ranking until a contract is reached or
60-12    negotiations with all ranked offerors end.
60-13          (g)  Following selection of a design-build firm under
60-14    Subsection (f), that firm's engineers or architects shall complete
60-15    the design, submitting all design elements for review and
60-16    determination of scope compliance by the commission's engineer or
60-17    architect before or concurrently with the beginning of
60-18    construction.
60-19          (h)  An engineer shall have responsibility for compliance
60-20    with the engineering design requirements and all other applicable
60-21    requirements of The Texas Engineering Practice Act (Article 3271a,
60-22    Vernon's Texas Civil Statutes).  An architect shall have
60-23    responsibility for compliance with the requirements of Chapter 478,
60-24    Acts of the 45th Legislature, Regular Session, 1937 (Article 249a,
60-25    Vernon's Texas Civil Statutes).
60-26          (i)  The commission shall provide or contract for,
60-27    independently of the design-build firm, the inspection services,
 61-1    the testing of construction materials engineering, and the
 61-2    verification testing services necessary for acceptance of the
 61-3    facility by the commission.  The commission shall select those
 61-4    services for which it contracts in accordance with Section
 61-5    2254.004.
 61-6          (j)  The design-build firm shall supply a signed and sealed
 61-7    set of construction documents for the project to the commission at
 61-8    the conclusion of construction.
 61-9          (k)  A payment or performance bond is not required for, and
61-10    may not provide coverage for, the portion of a design-build
61-11    contract under this section that includes design services only.  If
61-12    a fixed contract amount or guaranteed maximum price has not been
61-13    determined at the time a design-build contract is awarded, the
61-14    penal sums of the performance and payment bonds delivered to the
61-15    commission shall each be in an amount equal to the project budget,
61-16    as specified in the design criteria package.  The design-build firm
61-17    shall deliver the bonds not later than the 10th day after the date
61-18    the design-build firm executes the contract unless the design-build
61-19    firm furnishes a bid bond or other financial security acceptable to
61-20    the commission to ensure that the design-build firm will furnish
61-21    the required performance and payment bonds when a guaranteed
61-22    maximum price is established.
61-23          SECTION 8.06. Subchapter F, Chapter 2166, Government Code, is
61-24    amended by adding Section 2166.2532 to read as follows:
61-25          Sec. 2166.2532.  CONSTRUCTION MANAGER-AT-RISK METHOD. (a)
61-26    The commission may use the construction manager-at-risk method for
61-27    a project.  In using that method and in entering into a contract
 62-1    for the services of a construction manager-at-risk, the commission
 62-2    shall follow the procedures prescribed by this section.
 62-3          (b)  A construction manager-at-risk is a sole proprietorship,
 62-4    partnership, corporation, or other legal entity that assumes the
 62-5    risk for construction, rehabilitation, alteration, or repair of a
 62-6    facility at the contracted price as a general contractor and
 62-7    provides consultation to the commission regarding construction
 62-8    during and after the design of the facility.
 62-9          (c)  Before or concurrently with selecting a construction
62-10    manager-at-risk, the commission shall select or designate an
62-11    engineer or architect who shall prepare the construction documents
62-12    for the project and who has full responsibility for complying with
62-13    The Texas Engineering Practice Act (Article 3271a, Vernon's Texas
62-14    Civil Statutes) or Chapter 478, Acts of the 45th Legislature,
62-15    Regular Session, 1937 (Article 249a, Vernon's Texas Civil
62-16    Statutes), as applicable.  If the engineer or architect is not a
62-17    full-time employee of the commission, the commission shall select
62-18    the engineer or architect on the basis of demonstrated competence
62-19    and qualifications as provided by Section 2254.004.  The
62-20    commission's engineer or architect for a project may not serve,
62-21    alone or in combination with another, as the construction
62-22    manager-at-risk.
62-23          (d)  The commission shall provide or contract for,
62-24    independently of the construction manager-at-risk, the inspection
62-25    services, the testing of construction materials engineering, and
62-26    the verification testing services necessary for acceptance of the
62-27    facility by the commission.  The commission shall select those
 63-1    services for which it contracts in accordance with Section
 63-2    2254.004.
 63-3          (e)  The commission shall select the construction
 63-4    manager-at-risk in either a one-step or two-step process.  The
 63-5    commission shall prepare a request for proposals, in the case of a
 63-6    one-step process, or a request for qualifications, in the case of a
 63-7    two-step process, that includes general information on the project
 63-8    site, project scope, schedule, selection criteria, estimated
 63-9    budget, and the time and place for receipt of proposals or
63-10    qualifications, as applicable; a statement as to whether the
63-11    selection process is a one-step or two-step process; and other
63-12    information that may assist the commission in its selection of a
63-13    construction manager-at-risk.  The commission shall state the
63-14    selection criteria in the request for proposals or qualifications,
63-15    as applicable.  The selection criteria may include the offeror's
63-16    experience, past performance, safety record, proposed personnel and
63-17    methodology, and other appropriate factors that demonstrate the
63-18    capability of the construction manager-at-risk.  If a one-step
63-19    process is used, the commission may request, as part of the
63-20    offeror's proposal, proposed fees and prices for fulfilling the
63-21    general conditions.  If a two-step process is used, the commission
63-22    may not request fees or prices in step one.  In step two, the
63-23    commission may request that five or fewer offerors, selected solely
63-24    on the basis of qualifications, provide additional information,
63-25    including the construction manager-at-risk's proposed fee and its
63-26    price for fulfilling the general conditions.
63-27          (f)  The commission shall publish the request for
 64-1    qualifications in a manner prescribed by the commission.
 64-2          (g)  At each step, the commission shall receive, publicly
 64-3    open, and read aloud the names of the offerors.  At the appropriate
 64-4    step, the commission shall also read aloud the fees and prices, if
 64-5    any, stated in each proposal as the proposal is opened.  Within 45
 64-6    days after the date of opening the proposals, the commission or its
 64-7    representative shall evaluate and rank each proposal submitted in
 64-8    relation to the criteria set forth in the request for proposals.
 64-9          (h)  The commission or its representative shall select the
64-10    offeror that submits the proposal that offers the best value for
64-11    the commission or using agency based on the published selection
64-12    criteria and on its ranking evaluation.  The commission or its
64-13    representative shall first attempt to negotiate a contract with the
64-14    selected offeror.  If the commission or its representative is
64-15    unable to negotiate a satisfactory contract with the selected
64-16    offeror, the commission or its representative shall, formally and
64-17    in writing, end negotiations with that offeror and proceed to
64-18    negotiate with the next offeror in the order of the selection
64-19    ranking until a contract is reached or negotiations with all ranked
64-20    offerors end.
64-21          (i)  A construction manager-at-risk shall publicly advertise,
64-22    in the manner prescribed by the commission, and receive bids or
64-23    proposals from trade contractors or subcontractors for the
64-24    performance of all major elements of the work other than the minor
64-25    work that may be included in the general conditions.  A
64-26    construction manager-at-risk may seek to perform portions of the
64-27    work itself if the construction manager-at-risk submits its bid or
 65-1    proposal for those portions of the work in the same manner as all
 65-2    other trade contractors or subcontractors and if the commission
 65-3    determines that the construction manager-at-risk's bid or proposal
 65-4    provides the best value for the commission or using agency.
 65-5          (j)  The construction manager-at-risk and the commission or
 65-6    its representative shall review all trade contractor or
 65-7    subcontractor bids or proposals in a manner that does not disclose
 65-8    the contents of the bid or proposal during the selection process to
 65-9    a person not employed by the construction manager-at-risk,
65-10    engineer, architect, or commission.  All bids or proposals shall be
65-11    made public after the award of the contract or within seven days
65-12    after the date of final selection of bids and proposals, whichever
65-13    is later.
65-14          (k)  If the construction manager-at-risk reviews, evaluates,
65-15    and recommends to the commission a bid or proposal from a trade
65-16    contractor or subcontractor but the commission requires another bid
65-17    or proposal to be accepted, the commission shall compensate the
65-18    construction manager-at-risk by a change in price, time, or
65-19    guaranteed maximum cost for any additional cost and risk that the
65-20    construction manager-at-risk may incur because of the commission's
65-21    requirement that another bid or proposal be accepted.
65-22          (l)  If a selected trade contractor or subcontractor defaults
65-23    in the performance of its work or fails to execute a subcontract
65-24    after being selected in accordance with this section, the
65-25    construction manager-at-risk may, without advertising, itself
65-26    fulfill the contract requirements or select a replacement trade
65-27    contractor or subcontractor to fulfill the contract requirements.
 66-1          (m)  If a fixed contract amount or guaranteed maximum price
 66-2    has not been determined at the time the contract is awarded, the
 66-3    penal sums of the performance and payment bonds delivered to the
 66-4    commission must each be in an amount equal to the project budget,
 66-5    as set forth in the request for qualifications.  The construction
 66-6    manager-at-risk shall deliver the bonds not later than the 10th day
 66-7    after the date the construction manager-at-risk executes the
 66-8    contract unless the construction manager-at-risk furnishes a bid
 66-9    bond or other financial security acceptable to the commission to
66-10    ensure that the construction manager-at-risk will furnish the
66-11    required performance and payment bonds when a guaranteed maximum
66-12    price is established.
66-13          SECTION 8.07. Subchapter F, Chapter 2166, Government Code, is
66-14    amended by adding Section 2166.2533 to read as follows:
66-15          Sec. 2166.2533.  COMPETITIVE SEALED PROPOSAL METHOD. (a)  The
66-16    commission may select a contractor for a project using the
66-17    competitive sealed proposal method prescribed by this section.
66-18          (b)  The commission shall select or designate an engineer or
66-19    architect to prepare construction documents for the project.  The
66-20    selected or designated engineer or architect has full
66-21    responsibility for complying with The Texas Engineering Practice
66-22    Act (Article 3271a, Vernon's Texas Civil Statutes) or Chapter 478,
66-23    Acts of the 45th Legislature, Regular Session, 1937 (Article 249a,
66-24    Vernon's Texas Civil Statutes), as applicable.  If the engineer or
66-25    architect is not a full-time employee of the commission, the
66-26    commission shall select the engineer or architect on the basis of
66-27    demonstrated competence and qualifications as provided by Section
 67-1    2254.004.
 67-2          (c)  The commission shall provide or contract for,
 67-3    independently of the contractor, the inspection services, the
 67-4    testing of construction materials engineering, and the verification
 67-5    testing services necessary for acceptance of the facility by the
 67-6    commission.  The commission shall select those services for which
 67-7    it contracts in accordance with Section 2254.004 and shall identify
 67-8    them in the request for proposals.
 67-9          (d)  The commission shall prepare a request for competitive
67-10    sealed proposals that includes construction documents, selection
67-11    criteria, estimated budget, project scope, schedule, and other
67-12    information that contractors may require to respond to the request.
67-13    The commission shall state in the request for proposals the
67-14    selection criteria that will be used in selecting the successful
67-15    offeror.
67-16          (e)  The commission shall publish notice of the request for
67-17    proposals in a manner prescribed by the commission.
67-18          (f)  The commission shall receive, publicly open, and read
67-19    aloud the names of the offerors and, if any are required to be
67-20    stated, all prices stated in each proposal.  Within 45 days after
67-21    the date of opening the proposals, the commission shall evaluate
67-22    and rank each proposal submitted in relation to the published
67-23    selection criteria.
67-24          (g)  The commission shall select the offeror that offers the
67-25    best value for the commission or using agency based on the
67-26    published selection criteria and on its ranking evaluation.  The
67-27    commission shall first attempt to negotiate a contract with the
 68-1    selected offeror.  The commission and its engineer or architect may
 68-2    discuss with the selected offeror options for a scope or time
 68-3    modification and any price change associated with the modification.
 68-4    If the commission is unable to reach a contract with the selected
 68-5    offeror, the commission shall, formally and in writing, end
 68-6    negotiations with that offeror and proceed to the next offeror in
 68-7    the order of the selection ranking until a contract is reached or
 68-8    all proposals are rejected.
 68-9          (h)  In determining the best value for the commission or
68-10    using agency, the commission is not restricted to considering price
68-11    alone but may consider any other factor stated in the selection
68-12    criteria.
68-13          SECTION 8.08. Section 2166.255, Government Code, is amended
68-14    to read as follows:
68-15          Sec. 2166.255.  AMOUNT [AWARD] OF CONTRACT. [(a)  A contract
68-16    shall be awarded to the qualified bidder making the lowest and best
68-17    bid in accordance with the law on awarding a state contract.]
68-18          [(b)  The commission may reject all bids.]
68-19          [(c)]  A contract may not be awarded for an amount greater
68-20    than the amount that the comptroller certifies to be available for
68-21    the project.
68-22          SECTION 8.09. (a)  The changes in law made by this Act to the
68-23    General Services Commission's contract procedures apply only to a
68-24    construction project for which the General Services Commission
68-25    first advertises or otherwise solicits bids, proposals, offers, or
68-26    qualifications, as applicable, on or after September 1, 2001.
68-27          (b)  A construction project for which the General Services
 69-1    Commission first advertised or otherwise solicited bids, proposals,
 69-2    offers, or qualifications, as applicable, before September 1, 2001,
 69-3    is governed by the law as it existed immediately before the
 69-4    effective date of this Act, and that law is continued in effect for
 69-5    that purpose.
 69-6                 ARTICLE 9.  LEASING OF STATE OFFICE SPACE
 69-7          SECTION 9.01. Subchapter A, Chapter 2167, Government Code, is
 69-8    amended by adding Section 2167.0021 to read as follows:
 69-9          Sec. 2167.0021.  BEST VALUE STANDARD FOR LEASE OF SPACE. (a)
69-10    The commission shall lease space for the use of a state agency on
69-11    the basis of obtaining the best value for the state.
69-12          (b)  The commission shall adopt rules establishing guidelines
69-13    for the determination of best value in a lease contract.  In
69-14    determining the best value, the commission may consider:
69-15                (1)  the cost of the lease contract;
69-16                (2)  the condition and location of lease space;
69-17                (3)  utility costs;
69-18                (4)  access to public transportation;
69-19                (5)  parking availability;
69-20                (6)  security;
69-21                (7)  telephone service availability;
69-22                (8)  indicators of probable lessor performance under
69-23    the contract, such as the lessor's financial resources and the
69-24    lessor's experience;
69-25                (9)  compliance with the architectural barriers law,
69-26    Article 9102, Revised Statutes; and
69-27                (10)  other relevant factors.
 70-1          (c)  This section does not prohibit the commission from
 70-2    leasing space from the offeror that offers the space at the lowest
 70-3    cost if the commission determines that doing so obtains the best
 70-4    value for the state.
 70-5          SECTION 9.02. Section 2167.003, Government Code, is amended
 70-6    to read as follows:
 70-7          Sec. 2167.003.  FIRST CONSIDERATION TO HISTORIC STRUCTURE.
 70-8    (a)  In leasing space for the use of a state agency, the commission
 70-9    or the private brokerage or real estate firm assisting the
70-10    commission shall give first consideration to a building that is
70-11    designated as a historic structure under Section 442.001 or to a
70-12    building that has been designated a landmark by a local governing
70-13    authority, if:
70-14                (1)  the building meets requirements and
70-15    specifications; and
70-16                (2)  the cost is not substantially higher than the cost
70-17    for other available buildings that meet requirements and
70-18    specifications.
70-19          (b)  When it considers leasing space for a state agency, the
70-20    commission or the private brokerage or real estate firm assisting
70-21    the commission shall notify each individual and organization that
70-22    is:
70-23                (1)  on a list furnished to the commission by the Texas
70-24    Historical Commission under Section 442.005; and
70-25                (2)  in the county in which the commission is
70-26    considering leasing space.
70-27          (c)  At the end of a biennium, the commission shall report to
 71-1    the legislature the commission's reasons for rejecting during the
 71-2    biennium the lease of any historic structure that was offered as
 71-3    [in a bid to] lease space to the state.
 71-4          SECTION 9.03. Section 2167.005, Government Code, is amended
 71-5    to read as follows:
 71-6          Sec. 2167.005.  DELEGATION OF AUTHORITY TO STATE AGENCIES
 71-7    [INSTITUTIONS OF HIGHER EDUCATION]. (a)  The commission may
 71-8    delegate to a state agency, including an institution of higher
 71-9    education, the authority to enter into lease contracts for space
71-10    [for which payments are not made from money appropriated from the
71-11    general revenue fund].
71-12          (b)  Any reports on the lease contracts made [by an
71-13    institution of higher education] under this delegated authority
71-14    shall be required annually.
71-15          SECTION 9.04. Section 2167.006(b), Government Code, is
71-16    amended to read as follows:
71-17          (b)  A state agency, including an [An] institution of higher
71-18    education, may not enter a lease contract under Section 2167.005
71-19    unless the agency [institution] complies with the architectural
71-20    barriers law, Article 9102, Revised Statutes.
71-21          SECTION 9.05. Section 2167.052, Government Code, is amended
71-22    by amending Subsection (a) and adding Subsection (c) to read as
71-23    follows:
71-24          (a)  Space may be leased from a private source through:
71-25                (1)  competitive bidding; [or]
71-26                (2)  competitive sealed proposals under Section
71-27    2167.054; or
 72-1                (3)  direct negotiation.
 72-2          (c)  The commission shall use the method for leasing space
 72-3    that provides the best value for the state.
 72-4          SECTION 9.06. Sections 2167.053(a) and (c), Government Code,
 72-5    are amended to read as follows:
 72-6          (a)  When space is leased through competitive bidding, the
 72-7    commission shall determine the [lowest and best] bid that provides
 72-8    the best value for the state after considering moving costs, the
 72-9    cost of time lost in moving, the cost of telecommunications
72-10    services, and other relevant factors.
72-11          (c)  If, after review of the bids and evaluation of all
72-12    relevant factors, the leasing state agency's opinion is that the
72-13    bid selected by the commission is not the [lowest and best] bid
72-14    that provides the best value for the state, it may file with the
72-15    commission a written recommendation that the award be made to a
72-16    bidder other than the commission's recommended bidder.  The leasing
72-17    state agency's recommendation must contain the agency's
72-18    justification for its recommendation and a complete explanation of
72-19    all factors it considered.
72-20          SECTION 9.07. Sections 2167.054(a), (g), and (i), Government
72-21    Code, are amended to read as follows:
72-22          (a)  The commission may lease space using competitive sealed
72-23    proposals [if the commission first determines that competitive
72-24    bidding is not practical or is disadvantageous to the state].
72-25          (g)  The commission shall make a written award of a lease to
72-26    the offeror whose proposal provides the best value for [is the most
72-27    advantageous to] the state, considering price and the evaluation
 73-1    factors in the request for proposals.  [The commission may not use
 73-2    other factors or criteria in its evaluation.]  The commission shall
 73-3    state in writing in the contract file the reasons for which an
 73-4    award is made.
 73-5          (i)  If the competitive sealed proposal procedure for leasing
 73-6    space is used by a state agency [an institution of higher
 73-7    education] that has been delegated leasing authority under Section
 73-8    2167.005, the agency [institution]:
 73-9                [(1)  must first determine that competitive bidding is
73-10    not practical or is disadvantageous to the state; and]
73-11                [(2)]  shall follow the procedures outlined by this
73-12    section and any rules adopted by the commission.
73-13          SECTION 9.08. Subchapter B, Chapter 2167, Government Code, is
73-14    amended by adding Section 2167.0541 to read as follows:
73-15          Sec. 2167.0541.  USE OF PRIVATE FIRMS TO OBTAIN SPACE. (a)
73-16    The commission may contract with one or more private brokerage or
73-17    real estate firms to assist the commission in obtaining lease space
73-18    for state agencies on behalf of the commission under this chapter.
73-19          (b)  A private brokerage or real estate firm with which the
73-20    commission contracts under Subsection (a)  may assist the
73-21    commission in leasing facilities under this chapter.
73-22          SECTION 9.09. Section 2167.055(b), Government Code, is
73-23    amended to read as follows:
73-24          (b)  A [The] lease contract entered into under Section
73-25    2167.053 or 2167.054 must reflect the provisions contained in the
73-26    invitation for bids or request for proposals, the successful bid or
73-27    proposal, and the award of the contract.
 74-1          SECTION 9.10. Subchapter C, Chapter 2167, Government Code, is
 74-2    amended by adding Sections 2167.105 and 2167.106 to read as
 74-3    follows:
 74-4          Sec. 2167.105.  REPORT ON NONCOMPLIANCE. If the commission
 74-5    determines that a state agency has not complied with the
 74-6    commission's rules or with other state law related to leasing
 74-7    requirements, the commission shall report the noncompliance to the
 74-8    members of the state agency's governing body and to the governor,
 74-9    lieutenant governor, and speaker of the house of representatives.
74-10    The commission shall include in its report an estimate of the
74-11    fiscal impact resulting from the noncompliance.
74-12          Sec. 2167.106.  ANNUAL REPORT. The staff of the commission
74-13    shall annually submit a report to the commission regarding
74-14    opportunities for delegating leasing authority to state agencies
74-15    with statewide operations.  The report must include comments from
74-16    state agencies with statewide operations.
74-17          SECTION 9.11. A lease contract entered into by the commission
74-18    before September 1, 2001, under Chapter 2167, Government Code, is
74-19    governed during the remaining term of the lease by Chapter 2167,
74-20    Government Code, as it existed immediately before September 1,
74-21    2001, and the prior law is continued in effect for this purpose.
74-22    Chapter 2167, Government Code, as amended by this Act, applies to
74-23    the renewal of a lease described by this section.
74-24                       ARTICLE 10.  SURPLUS PROPERTY
74-25          SECTION 10.01. Section 2175.065, Government Code, is amended
74-26    to read as follows:
74-27          Sec. 2175.065.  DELEGATION OF AUTHORITY TO STATE AGENCY. (a)
 75-1    The commission may authorize a state agency to dispose of surplus
 75-2    or salvage property if the agency demonstrates to the commission
 75-3    its ability to dispose of the property under Subchapters C and E in
 75-4    a manner that results in cost savings to the state, under
 75-5    commission rules adopted under this chapter.
 75-6          (b)  The commission shall establish by rule the criteria for
 75-7    determining that a delegation of authority to a state agency
 75-8    results in cost savings to the state.
 75-9          SECTION 10.02. Subchapters C and D, Chapter 2175, Government
75-10    Code, are amended to read as follows:
75-11       SUBCHAPTER C. DIRECT TRANSFER OR OTHER DISPOSITION OF SURPLUS
75-12                    OR SALVAGE PROPERTY BY STATE AGENCY
75-13          Sec. 2175.121.  APPLICABILITY. This subchapter applies only
75-14    to surplus or salvage property to which Subchapter D does not
75-15    apply.
75-16          Sec. 2175.122.  STATE AGENCY NOTICE TO COMMISSION. A state
75-17    agency that determines it has surplus or salvage property shall
75-18    inform the commission of the property's kind, number, location,
75-19    condition, original cost or value, and date of acquisition.
75-20          Sec. 2175.123.  DETERMINING METHOD OF DISPOSAL. Based on the
75-21    condition of the property, a state agency shall determine whether
75-22    the property is surplus property that should be offered for
75-23    transfer under Section 2175.125 or sold to the public or whether it
75-24    is salvage property, and inform the commission of its
75-25    determination.
75-26          Sec. 2175.124 [2175.122].  COMMISSION NOTICE TO OTHER
75-27    ENTITIES. After a determination that [On receiving notice from] a
 76-1    state agency [that the agency] has surplus [or salvage] property,
 76-2    the commission shall inform other state agencies, political
 76-3    subdivisions, and assistance organizations of the property's kind,
 76-4    number, location, and condition.
 76-5          Sec. 2175.125 [2175.123].  DIRECT TRANSFER. During the 30
 76-6    days following dissemination of information under Section 2175.124
 76-7    [2175.122], a state agency, political subdivision, or assistance
 76-8    organization may coordinate directly with the reporting state
 76-9    agency for a transfer of the property at a price established by the
76-10    reporting agency.
76-11          Sec. 2175.126 [2175.124].  NOTICE OF TRANSFER TO COMPTROLLER;
76-12    ADJUSTMENT OF APPROPRIATIONS AND PROPERTY ACCOUNTING RECORDS. (a)
76-13    If property is transferred to a state agency, the participating
76-14    agencies shall report the transaction to the comptroller.
76-15          (b)  On receiving notice under this section, the comptroller
76-16    shall, if necessary:
76-17                (1)  debit and credit the proper appropriations; and
76-18                (2)  adjust state property accounting records.
76-19          Sec. 2175.127 [2175.125].  PRIORITY FOR TRANSFER TO STATE
76-20    AGENCY. During the 30 days after the date of notice under Section
76-21    2175.124 [2175.122], a transfer to a state agency has priority over
76-22    any other transfer under rules adopted by the commission.
76-23          Sec. 2175.128 [2175.126].  DISPOSITION OF DATA PROCESSING
76-24    EQUIPMENT. (a)  If a disposition of a state agency's surplus or
76-25    salvage data processing equipment is not made under Section
76-26    2175.125 or 2175.184 [this subchapter], the state agency shall
76-27    transfer the equipment to the Texas Department of Criminal Justice.
 77-1    The state agency may not collect a fee or other reimbursement from
 77-2    the Texas Department of Criminal Justice for the surplus or salvage
 77-3    data processing equipment.
 77-4          (b)  If a disposition of the surplus or salvage data
 77-5    processing equipment of a state eleemosynary institution or an
 77-6    institution or agency of higher education is not made under other
 77-7    law, the institution or agency shall transfer the equipment to the
 77-8    Texas Department of Criminal Justice.  The institution or agency
 77-9    may not collect a fee or other reimbursement from the Texas
77-10    Department of Criminal Justice for the surplus or salvage data
77-11    processing equipment.
77-12        [SUBCHAPTER D.  DISPOSITION OF SURPLUS OR SALVAGE PROPERTY
77-13                          BY COMPETITIVE BIDDING]
77-14          Sec. 2175.129 [2175.181].  DISPOSITION BY COMPETITIVE
77-15    BIDDING, [OR] AUCTION, OR DIRECT SALE. (a)  If a disposition of a
77-16    state agency's surplus [or salvage] property is not made under
77-17    Section 2175.125 [Subchapter C], the commission shall:
77-18                (1)  sell the property by competitive bid, [or]
77-19    auction, or direct sale to the public; or
77-20                (2)  delegate to the state agency authority to sell the
77-21    property by competitive bid, auction, or direct sale to the public
77-22    [bidding].
77-23          (b)  The commission or a state agency to which authority is
77-24    delegated under Subsection (a)(2) or under Section 2175.065 shall
77-25    determine which method of sale shall be used based on the method
77-26    that is most advantageous to the state under the circumstances.
77-27    The commission shall adopt rules establishing guidelines for making
 78-1    that determination.
 78-2          Sec. 2175.130.  DISPOSITION BY DIRECT SALE TO PUBLIC. (a)  If
 78-3    the commission or a state agency to which authority is delegated
 78-4    under Section 2175.129(a)(2) or 2175.065 determines that selling
 78-5    the property by competitive bid or auction would not maximize the
 78-6    resale value of the property to the state, the commission or agency
 78-7    may sell surplus or salvage property directly to the public.
 78-8          (b)  The commission, in cooperation with the state agency
 78-9    that declared the property as surplus, or a state agency to which
78-10    authority is delegated under Section 2175.129(a)(2) or 2175.065
78-11    shall set a fixed price for the property.
78-12          Sec. 2175.131 [2175.182].  PURCHASER'S FEE. (a)  The
78-13    commission or a state agency disposing of property by a method
78-14    other than direct transfer under this subchapter shall collect a
78-15    fee from the purchaser.
78-16          (b)  The commission or state agency shall set the fee at an
78-17    amount that is:
78-18                (1)  sufficient to recover costs associated with the
78-19    sale; and
78-20                (2)  at least two percent but not more than 12 percent
78-21    of sale proceeds.
78-22          Sec. 2175.132 [2175.183].  ADVERTISEMENT OF SALE. If the
78-23    value of an item or a lot of property to be sold is estimated to be
78-24    more than $5,000, the commission or the state agency authorized to
78-25    sell the property shall advertise the sale at least once in at
78-26    least one newspaper of general circulation in the vicinity in which
78-27    the property is located.
 79-1          Sec. 2175.133 [2175.184].  REPORTING SALE; PROPERTY
 79-2    ACCOUNTING ADJUSTMENT. (a)  On the sale by the commission of
 79-3    surplus or salvage property, the commission shall report the
 79-4    property sold and the sale price to the state agency that declared
 79-5    the property as surplus or salvage.
 79-6          (b)  A state agency for which surplus or salvage property is
 79-7    sold or that sells surplus or salvage property under authority of
 79-8    the commission shall report the sale and amount of sale proceeds to
 79-9    the comptroller.
79-10          (c)  If property reported under this section is on the state
79-11    property accounting system, the comptroller shall remove the
79-12    property from the property accounting records.
79-13          Sec. 2175.134 [2175.185].  PROCEEDS OF SALE. (a)  Proceeds
79-14    from the sale of surplus or salvage property, less the cost of
79-15    advertising the sale, the cost of selling the surplus or salvage
79-16    property, including the cost of auctioneer services, and the amount
79-17    of the fee collected under Section 2175.131 [2175.182], shall be
79-18    deposited to the credit of the appropriate appropriation item of
79-19    the state agency for which the sale was made.
79-20          (b)  The portion of sale proceeds equal to the cost of
79-21    advertising the sale and the cost of selling the surplus or salvage
79-22    property, including the cost of auctioneer services, shall be
79-23    deposited in the state treasury to the credit of the appropriation
79-24    item of the commission or other state agency from which the costs
79-25    were paid.
79-26          Sec. 2175.135 [2175.186].  PURCHASER'S TITLE. A purchaser of
79-27    surplus [or salvage] property at a sale conducted under Section
 80-1    2175.129 or 2175.130 [this subchapter] obtains good title to the
 80-2    property if the purchaser has in good faith complied with:
 80-3                (1)  the conditions of the sale; and
 80-4                (2)  applicable commission rules.
 80-5       SUBCHAPTER D.  DISPOSITION OF SURPLUS OR SALVAGE PROPERTY BY
 80-6                                COMMISSION
 80-7          Sec. 2175.181.  APPLICABILITY. (a)  This subchapter applies
 80-8    only to surplus and salvage property located in:
 80-9                (1)  Travis County;
80-10                (2)  a county in which federal surplus property is
80-11    warehoused by the commission under Subchapter G; or
80-12                (3)  a county for which the commission determines that
80-13    it is cost-effective to follow the procedures created under this
80-14    subchapter and informs affected state agencies of that
80-15    determination.
80-16          (b)  This subchapter does not apply to a state agency
80-17    delegated the authority to dispose of surplus or salvage property
80-18    under Section 2175.065.
80-19          Sec. 2175.1815.  ALTERNATIVE APPLICABILITY. (a)
80-20    Notwithstanding Section 2175.181, until January 1, 2003, this
80-21    subchapter applies only to a state agency selected by the
80-22    commission to participate in the disposal process created under
80-23    this subchapter.
80-24          (b)  Subchapter C applies to a state agency that is not
80-25    selected by the commission to participate under this subchapter.
80-26          (c)  This section expires January 1, 2003.
80-27          Sec. 2175.182.  STATE AGENCY TRANSFER OF PROPERTY TO
 81-1    COMMISSION. (a)  The commission is responsible for the disposal of
 81-2    surplus or salvage property under this subchapter. The commission
 81-3    may take physical possession of the property.  A state agency
 81-4    maintains ownership of property throughout the disposal process.
 81-5          (b)  Based on the condition of the property, the commission
 81-6    shall determine whether the property is surplus property that
 81-7    should be offered for transfer under Section 2175.184 or sold to
 81-8    the public or whether it is salvage property.
 81-9          (c)  The commission shall cooperate with the comptroller's
81-10    office to ensure the accurate designation and tracking of the
81-11    property.
81-12          Sec. 2175.183.  COMMISSION NOTICE TO OTHER ENTITIES. On
81-13    taking responsibility for surplus property under this subchapter,
81-14    the commission shall inform other state agencies, political
81-15    subdivisions, and assistance organizations of the property's kind,
81-16    number, location, and condition.
81-17          Sec. 2175.184.  DIRECT TRANSFER. During the 30 days following
81-18    dissemination of information under Section 2175.183, a state
81-19    agency, political subdivision, or assistance organization may
81-20    coordinate with the commission for a transfer of the property at a
81-21    price established by the commission in cooperation with the
81-22    transferring agency.  A transfer to a state agency has priority
81-23    over any other transfer during this period.
81-24          Sec. 2175.185.  NOTICE OF TRANSFER TO COMPTROLLER; ADJUSTMENT
81-25    OF APPROPRIATIONS AND PROPERTY ACCOUNTING RECORDS. (a)  If property
81-26    is transferred to a state agency under Section 2175.184, the
81-27    participating agencies shall report the transaction to the
 82-1    comptroller.
 82-2          (b)  On receiving notice under this section, the comptroller
 82-3    shall, if necessary:
 82-4                (1)  debit and credit the proper appropriations; and
 82-5                (2)  adjust state property accounting records.
 82-6          Sec. 2175.186.  DISPOSITION BY COMPETITIVE BIDDING, AUCTION,
 82-7    OR DIRECT SALE. (a)  If a disposition of a state agency's surplus
 82-8    property is not made under Section 2175.184, the commission shall
 82-9    sell the property by competitive bid, auction, or direct sale to
82-10    the public.
82-11          (b)  The commission shall determine which method of sale
82-12    shall be used based on the method that is most advantageous to the
82-13    state under the circumstances.  The commission shall adopt rules
82-14    establishing guidelines for making that determination.
82-15          Sec. 2175.187.  DISPOSITION BY DIRECT SALE TO PUBLIC. (a)  If
82-16    the commission determines that selling the property by competitive
82-17    bid or auction would not maximize the resale value of the property
82-18    to the state, the commission may sell surplus property directly to
82-19    the public.
82-20          (b)  The commission shall set a fixed price for the property
82-21    in cooperation with the state agency that owns the property.
82-22          Sec. 2175.188.  PURCHASER'S FEE. (a)  For property that is
82-23    sold under Section 2175.186 or 2175.187, the commission shall
82-24    collect a fee from the purchaser.
82-25          (b)  The commission shall set the fee at an amount that is:
82-26                (1)  sufficient to recover costs associated with the
82-27    sale; and
 83-1                (2)  at least two percent but not more than 12 percent
 83-2    of sale proceeds.
 83-3          Sec. 2175.189.  ADVERTISEMENT OF SALE. If the value of an
 83-4    item or a lot of property to be sold is estimated to be more than
 83-5    $5,000, the commission shall advertise the sale at least once in at
 83-6    least one newspaper of general circulation in the vicinity in which
 83-7    the property is located.
 83-8          Sec. 2175.190.  REPORTING SALE; PROPERTY ACCOUNTING
 83-9    ADJUSTMENT. (a)  On the sale by the commission of surplus or
83-10    salvage property, the commission shall report the property sold and
83-11    the sale price to the state agency that owned the property and to
83-12    the comptroller.
83-13          (b)  If property reported under this section is on the state
83-14    property accounting system, the comptroller shall remove the
83-15    property from the property accounting records.
83-16          Sec. 2175.191.  PROCEEDS OF SALE. (a)  Proceeds from the sale
83-17    of surplus or salvage property, less the cost of advertising the
83-18    sale, the cost of selling the surplus or salvage property,
83-19    including the cost of auctioneer services, and the amount of the
83-20    fee collected under Section 2175.188, shall be deposited to the
83-21    credit of the appropriate appropriation item of the state agency
83-22    for which the sale was made.
83-23          (b)  The portion of sale proceeds equal to the cost of
83-24    advertising the sale and the cost of selling the surplus or salvage
83-25    property, including the cost of auctioneer services, if any, shall
83-26    be deposited in the state treasury to the credit of the
83-27    appropriation item of the commission.
 84-1          Sec. 2175.192.  PURCHASER'S TITLE. A purchaser of surplus
 84-2    property at a sale conducted under Section 2175.186 or 2175.187
 84-3    obtains good title to the property if the purchaser has in good
 84-4    faith complied with:
 84-5                (1)  the conditions of the sale; and
 84-6                (2)  applicable commission rules.
 84-7          Sec. 2175.193.  CONTRACTS FOR DESTRUCTION OF PROPERTY. The
 84-8    commission shall contract for the disposal of property under
 84-9    Subchapter E in a manner that maximizes value to the state.
84-10          SECTION 10.03. This article takes effect January 1, 2002.
84-11                   ARTICLE 11.  PAPER RECYCLING PROGRAM
84-12          SECTION 11.01. Section 2175.902, Government Code, is amended
84-13    to read as follows:
84-14          Sec. 2175.902.  MANDATORY PAPER RECYCLING PROGRAM. (a)  The
84-15    commission shall establish a mandatory recycling program for a
84-16    state agency that occupies a building [and maintain in each
84-17    building] under its control [procedures for collecting separately
84-18    from other wastes all paper for recycling disposed of in that
84-19    building]. By rule, the commission shall:
84-20                (1)  establish guidelines and procedures for collecting
84-21    and recycling of paper;
84-22                (2)  set recycling goals and performance measures;
84-23                (3)  require state agencies to designate a recycling
84-24    coordinator;
84-25                (4)  provide employee and custodial education and
84-26    training;
84-27                (5)  provide feedback and recognition to state agencies
 85-1    when appropriate; and
 85-2                (6)  inform state agencies when proper recycling
 85-3    methods are not used.
 85-4          (b)  If the commission finds that a state agency's recycling
 85-5    program meets or exceeds the standards created under Subsection
 85-6    (a), the [The] commission may delegate its responsibility under
 85-7    this section [subsection] to a state agency located in a [each]
 85-8    building under its control.
 85-9          (c) [(b)]  The commission or a state agency with delegated
85-10    responsibility under Subsection (b) [(a)] shall sell the paper for
85-11    recycling to the highest bidder.
85-12          (d)  The commission may enter into an interagency agreement
85-13    to provide recycling services to a state agency otherwise excluded
85-14    from the program.
85-15                        ARTICLE 12.  EFFECTIVE DATE
85-16          SECTION 12.01. Except as otherwise provided by this Act, this
85-17    Act takes effect September 1, 2001.