1-1     By:  Zaffirini                                         S.B. No. 311
 1-2           (In the Senate - Filed March 7, 2001; March 8, 2001, read
 1-3     first time and referred to Committee on State Affairs;
 1-4     April 11, 2001, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 7, Nays 0; April 11, 2001,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 311                    By:  Madla
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the continuation and functions of the General Services
1-11     Commission and to the operations of certain other state agencies
1-12     having functions transferred from or associated with the
1-13     commission, including the Department of Information Resources, the
1-14     telecommunications planning and oversight council, the interagency
1-15     work group for developing contracting guidelines, and the State
1-16     Cemetery Committee.
1-17           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-18                    ARTICLE 1.  ADMINISTRATIVE PROVISIONS
1-19           SECTION 1.01.  Section 552.010, Government Code, is amended
1-20     to read as follows:
1-21           Sec. 552.010.  STATE GOVERNMENTAL BODIES:  FISCAL AND OTHER
1-22     INFORMATION RELATING TO MAKING INFORMATION ACCESSIBLE.  (a)  Each
1-23     state governmental body shall report to the General Services
1-24     Commission [Legislative Budget Board] the information the
1-25     commission [board] requires regarding:
1-26                 (1)  the number and nature of requests for information
1-27     the state governmental body processes under this chapter in the
1-28     period covered by the report; and
1-29                 (2)  the cost to the state governmental body in that
1-30     period in terms of capital expenditures and personnel time of:
1-31                       (A)  responding to requests for information under
1-32     this chapter; and
1-33                       (B)  making information available to the public
1-34     by means of the Internet or another electronic format.
1-35           (b)  The General Services Commission [Legislative Budget
1-36     Board] shall design and phase in the reporting requirements in a
1-37     way that:
1-38                 (1)  minimizes the reporting burden on state
1-39     governmental bodies; and
1-40                 (2)  allows the legislature and state governmental
1-41     bodies to estimate the extent to which it is cost-effective for
1-42     state government, and if possible the extent to which it is
1-43     cost-effective or useful for members of the public, to make
1-44     information available to the public by means of the Internet or
1-45     another electronic format as a supplement or alternative to
1-46     publicizing the information only in other ways or making the
1-47     information available only in response to requests made under this
1-48     chapter.
1-49           (c)  The open records steering committee and the state
1-50     auditor, at the request of the General Services Commission
1-51     [Legislative Budget Board], shall assist the commission [board] in
1-52     designing its reporting requirements under this section.  The
1-53     commission [board] shall share the information reported under this
1-54     section with the open records steering committee.
1-55           SECTION 1.02.  Section 2054.022, Government Code, is amended
1-56     to read as follows:
1-57           Sec. 2054.022.  CONFLICT OF INTEREST.  (a)  A member of the
1-58     board or the executive director [an employee of the department] may
1-59     not:
1-60                 (1)  be a person required to register as a lobbyist
1-61     under Chapter 305 because of the person's activities for
1-62     compensation on behalf of a business entity that has, or on behalf
1-63     of a trade association of business entities that have, a
1-64     substantial interest in the information resources technologies
 2-1     industry;
 2-2                 (2)  be an officer, employee, or paid consultant of a
 2-3     business entity that has, or of a trade association of business
 2-4     entities that have, a substantial interest in the information
 2-5     resources technologies industry and that may contract with state
 2-6     government;
 2-7                 (3)  own, control, or have, directly or indirectly,
 2-8     more than a 10 percent interest in a business entity that has a
 2-9     substantial interest in the information resources technologies
2-10     industry and that may contract with state government;
2-11                 (4)  receive more than 25 percent of the individual's
2-12     income from a business entity that has a substantial interest in
2-13     the information resources technologies industry and that may
2-14     contract with state government;
2-15                 (5)  be interested in or connected with a contract or
2-16     bid for furnishing a state agency with information resources
2-17     technologies;
2-18                 (6)  be employed by a state agency as a consultant on
2-19     information resources technologies; or
2-20                 (7)  accept or receive money or another thing of value
2-21     from an individual, firm, or corporation to whom a contract may be
2-22     awarded, directly or indirectly, by rebate, gift, or otherwise.
2-23           (b)  A person who is the spouse of an officer, employee, or
2-24     paid consultant of a business entity that has, or of a trade
2-25     association of business entities that have, a substantial interest
2-26     in the information resources technologies industry and that may
2-27     contract with state government may not be[:]
2-28                 [(1)]  a member of the board or the executive
2-29     director[; or]
2-30                 [(2)  an employee of the department who:]
2-31                       [(A)  is exempt from the state's position
2-32     classification plan; or]
2-33                       [(B)  is compensated at or above the amount
2-34     prescribed by the General Appropriations Act for step 1, salary
2-35     group 17, of the position classification salary schedule].
2-36           (c)  An employee of the department, other than the executive
2-37     director:
2-38                 (1)  may not participate in the department's bidding
2-39     process, including the proposal development related to a contract
2-40     and the negotiation of a contract, if:
2-41                       (A)  the employee receives income from any likely
2-42     bidder on the contract; or
2-43                       (B)  the employee's spouse is employed by any
2-44     likely bidder on the contract; and
2-45                 (2)  may not:
2-46                       (A)  be a person required to register as a
2-47     lobbyist under Chapter 305 because of the person's activities for
2-48     compensation on behalf of a business entity that has, or on behalf
2-49     of a trade association of business entities that have, a
2-50     substantial interest in the information resources technologies
2-51     industry; or
2-52                       (B)  be employed by a state agency as a
2-53     consultant on information resources technologies.
2-54           (d)  For the purposes of this section, a trade association is
2-55     a nonprofit, cooperative, and voluntarily joined association of
2-56     business or professional competitors in this state designed to
2-57     assist its members and its industry or profession in dealing with
2-58     mutual business or professional problems and in promoting their
2-59     common interest.
2-60           (e) [(d)]  The executive director shall dismiss an employee
2-61     of the department who violates a prohibition under Subsection (c)
2-62     [(a)], and the board shall remove the executive director if the
2-63     executive director violates a prohibition under Subsection (a).
2-64           SECTION 1.03.  Section 2152.002, Government Code, is amended
2-65     to read as follows:
2-66           Sec. 2152.002.  SUNSET PROVISION.  The General Services
2-67     Commission is subject to Chapter 325 (Texas Sunset Act).  Unless
2-68     continued in existence as provided by that chapter, the commission
2-69     is abolished and this subtitle, except for Chapter 2170 and Section
 3-1     2157.121, expires September 1, 2013 [2001].
 3-2           SECTION 1.04.  Section 2152.051, Government Code, is amended
 3-3     to read as follows:
 3-4           Sec. 2152.051.  COMPOSITION OF COMMISSION.  The commission is
 3-5     composed of five [six] representatives of the public appointed by
 3-6     the governor with the advice and consent of the senate.
 3-7           SECTION 1.05.  Subsections (b) and (c), Section 2152.054,
 3-8     Government Code, are amended to read as follows:
 3-9           (b)  An officer, employee, or paid consultant of a Texas
3-10     trade association of business entities that contracts with the
3-11     state may not:
3-12                 (1)  serve as a commission member; or
3-13                 (2)  be employed as a commission employee in a "bona
3-14     fide executive, administrative, or professional capacity," as that
3-15     phrase is used for purposes of establishing an exemption to the
3-16     overtime provisions of the federal Fair Labor Standards Act of 1938
3-17     (29 U.S.C. Section 201 et seq.) and its subsequent amendments [who
3-18     is exempt from the state's position classification plan or is
3-19     compensated at or above the amount prescribed by the General
3-20     Appropriations Act for step 1, salary group 17, of the position
3-21     classification salary schedule].
3-22           (c)  An individual who is the spouse of an officer, manager,
3-23     or paid consultant of a Texas trade association of business
3-24     entities that contracts with the state may not:
3-25                 (1)  serve as a commission member; or
3-26                 (2)  be employed as a commission employee in a "bona
3-27     fide executive, administrative, or professional capacity," as that
3-28     phrase is used for purposes of establishing an exemption to the
3-29     overtime provisions of the federal Fair Labor Standards Act of 1938
3-30     (29 U.S.C. Section 201 et seq.) and its subsequent amendments [who
3-31     is exempt from the state's position classification plan or is
3-32     compensated at or above the amount prescribed by the General
3-33     Appropriations Act for step 1, salary group 17, of the position
3-34     classification salary schedule].
3-35           SECTION 1.06.  Subsection (c), Section 2152.056, Government
3-36     Code, is amended to read as follows:
3-37           (c)  If the executive director has knowledge that a potential
3-38     ground for removal exists, the executive director shall notify the
3-39     presiding officer of the commission of the potential ground.  The
3-40     presiding officer shall then notify the governor and the attorney
3-41     general that a potential ground for removal exists.  If the
3-42     potential ground for removal involves the presiding officer, the
3-43     executive director shall notify the next highest ranking officer of
3-44     the commission, who shall then notify the governor and the attorney
3-45     general that a potential ground for removal exists.
3-46           SECTION 1.07.  Section 2152.057, Government Code, is amended
3-47     to read as follows:
3-48           Sec. 2152.057.  TERMS.  Commission members serve staggered
3-49     six-year terms with one or two members' terms expiring January 31
3-50     of each odd-numbered year.
3-51           SECTION 1.08.  Subsection (c), Section 2152.058, Government
3-52     Code, is amended to read as follows:
3-53           (c)  Three [Four] members of the commission constitute a
3-54     quorum.
3-55           SECTION 1.09.  Subchapter B, Chapter 2152, Government Code,
3-56     is amended by adding Section 2152.0581 to read as follows:
3-57           Sec. 2152.0581.  TRAINING FOR COMMISSION MEMBERS.  (a)  A
3-58     person who is appointed to and qualifies for office as a member of
3-59     the commission may not vote, deliberate, or be counted as a member
3-60     in attendance at a meeting of the commission until the person
3-61     completes a training program that complies with this section.
3-62           (b)  The training program must provide the person with
3-63     information regarding:
3-64                 (1)  the legislation that created the commission;
3-65                 (2)  the programs operated by the commission;
3-66                 (3)  the role and functions of the commission;
3-67                 (4)  the rules of the commission, with an emphasis on
3-68     the rules that relate to disciplinary and investigatory authority;
3-69                 (5)  the current budget for the commission;
 4-1                 (6)  the results of the most recent formal audit of the
 4-2     commission;
 4-3                 (7)  the requirements of:
 4-4                       (A)  the open meetings law, Chapter 551;
 4-5                       (B)  the public information law, Chapter 552;
 4-6                       (C)  the administrative procedure law, Chapter
 4-7     2001; and
 4-8                       (D)  other laws relating to public officials,
 4-9     including conflict-of-interest laws; and
4-10                 (8)  any applicable ethics policies adopted by the
4-11     commission or the Texas Ethics Commission.
4-12           (c)  A person appointed to the commission is entitled to
4-13     reimbursement, as provided by the General Appropriations Act, for
4-14     the travel expenses incurred in attending the training program
4-15     regardless of whether the attendance at the program occurs before
4-16     or after the person qualifies for office.
4-17           SECTION 1.10.  Section 2152.060, Government Code, is amended
4-18     by amending Subsection (b) and adding Subsection (d) to read as
4-19     follows:
4-20           (b)  The commission shall maintain a [keep an information]
4-21     file on [about] each written complaint filed with the commission
4-22     [that the commission has authority to resolve].  The file must
4-23     include:
4-24                 (1)  the name of the person who filed the complaint;
4-25                 (2)  the date the complaint is received by the
4-26     commission;
4-27                 (3)  the subject matter of the complaint;
4-28                 (4)  the name of each person contacted in relation to
4-29     the complaint;
4-30                 (5)  a summary of the results of the review or
4-31     investigation of the complaint; and
4-32                 (6)  an explanation of the reason the file was closed,
4-33     if the commission closed the file without taking action other than
4-34     to investigate the complaint.
4-35           (d)  The commission shall provide to the person filing the
4-36     complaint and to each person who is a subject of the complaint a
4-37     copy of the commission's policies and procedures relating to
4-38     complaint investigation and resolution.
4-39           SECTION 1.11.  Subchapter C, Chapter 2152, Government Code,
4-40     is amended by adding Section 2152.110 to read as follows:
4-41           Sec. 2152.110.  STATE EMPLOYEE INCENTIVE PROGRAM.  The
4-42     executive director or the executive director's designee shall
4-43     provide to commission employees information and training on the
4-44     benefits and methods of participation in the state employee
4-45     incentive program under Subchapter B, Chapter 2108.
4-46           SECTION 1.12.  (a)  To achieve the membership plan prescribed
4-47     by Section 2152.051, Government Code, as amended by this Act, for
4-48     the General Services Commission, the governor shall appoint only
4-49     one commission member to succeed the commission members whose terms
4-50     expire on January 31, 2003.  The member appointed under this
4-51     section is appointed for a term expiring January 31, 2009.
4-52           (b)  As soon as possible after September 1, 2001, the
4-53     governor shall designate for abolition on January 31, 2003, one of
4-54     the two membership positions with terms that expire on January 31,
4-55     2003.
4-56           SECTION 1.13.  The changes in law made by this Act in the
4-57     prohibitions and qualifications applying to members of the General
4-58     Services Commission do not affect the entitlement of a member
4-59     serving on the commission immediately before September 1, 2001, to
4-60     continue to serve and function as a member of the commission for
4-61     the remainder of the member's term.  The changes in law apply only
4-62     to a member appointed on or after September 1, 2001.  This Act does
4-63     not prohibit a person who is a member of the General Services
4-64     Commission immediately before September 1, 2001, from being
4-65     reappointed as a commission member if the person has the
4-66     qualifications required for the position under Chapter 2152,
4-67     Government Code, as amended by this Act.
4-68           SECTION 1.14.  The change in law made by this Act to Sections
4-69     2152.051, 2152.057, and Subsection (c), Section 2152.058,
 5-1     Government Code, takes effect January 31, 2003.
 5-2        ARTICLE 2.  OVERSIGHT OF MAJOR INFORMATION RESOURCES PROJECTS
 5-3           SECTION 2.01.  Section 2054.003, Government Code, is amended
 5-4     by adding a new Subdivision (8) and renumbering existing
 5-5     Subdivisions (8), (9), and (10) as Subdivisions (9), (10), and (11)
 5-6     to read as follows:
 5-7                 (8)  "Major information resources project" means:
 5-8                       (A)  any information resources technology project
 5-9     identified in a state agency's biennial operating plan whose
5-10     development costs exceed $1 million and that:
5-11                             (i)  requires one year or longer to reach
5-12     operations status;
5-13                             (ii)  involves more than one state agency;
5-14     or
5-15                             (iii)  substantially alters work methods of
5-16     state agency personnel or the delivery of services to clients; and
5-17                       (B)  any information resources technology project
5-18     designated by the legislature in the General Appropriations Act as
5-19     a major information resources project.
5-20                 (9)  "Project" means a program to provide information
5-21     resources technologies support to functions within or among
5-22     elements of a state agency, that ideally is characterized by
5-23     well-defined parameters, specific objectives, common benefits,
5-24     planned activities, a scheduled completion date, and an established
5-25     budget with a specified source of funding.
5-26                 (10) [(9)]  "State agency" means a department,
5-27     commission, board, office, council, or other agency in the
5-28     executive or judicial branch of state government that is created by
5-29     the constitution or a statute of this state, including a university
5-30     system or institution of higher education as defined by Section
5-31     61.003, Education Code.
5-32                 (11) [(10)]  "Telecommunications" means any
5-33     transmission, emission, or reception of signs, signals, writings,
5-34     images, or sounds of intelligence of any nature by wire, radio,
5-35     optical, or other electromagnetic systems.  The term includes all
5-36     facilities and equipment performing those functions that are owned,
5-37     leased, or used by state agencies and branches of state government.
5-38           SECTION 2.02.  Subchapter F, Chapter 2054, Government Code,
5-39     is amended by adding Section 2054.1181 to read as follows:
5-40           Sec. 2054.1181.  OVERSIGHT OF MAJOR INFORMATION RESOURCES
5-41     PROJECTS.  (a)  The department shall create a division in the
5-42     department to oversee the implementation of major information
5-43     resources projects.
5-44           (b)  In performing its duties under this section, the
5-45     department shall:
5-46                 (1)  develop policies for the oversight of projects;
5-47                 (2)  implement project management standards;
5-48                 (3)  use effective risk management strategies;
5-49                 (4)  establish standards that promote the ability of
5-50     information resources systems to operate with each other; and
5-51                 (5)  use industry best practices and process
5-52     reengineering when feasible.
5-53           (c)  The division shall be funded from a percentage of money
5-54     appropriated to or budgeted by state agencies for the major
5-55     information resources projects designated by the legislature under
5-56     Section 2054.003(8)(B).  The legislature shall prescribe the
5-57     percentage or percentages, as applicable, in the General
5-58     Appropriations Act.
5-59           SECTION 2.03.  Subsection (d), Section 2054.118, Government
5-60     Code, is repealed.
5-61                       ARTICLE 3.  TELECOMMUNICATIONS
5-62           SECTION 3.01.  Subsection (e), Section 2054.051, Government
5-63     Code, is amended to read as follows:
5-64           (e)  The department shall provide for all interagency use of
5-65     information resources technologies by state agencies[, except for
5-66     telecommunications services provided by the General Services
5-67     Commission under other law].  The department may provide for
5-68     interagency use of information resources technologies either
5-69     directly or by certifying another state agency to provide specified
 6-1     uses of information resources technologies to other state agencies.
 6-2           SECTION 3.02.  Subsection (d), Section 2054.091, Government
 6-3     Code, is amended to read as follows:
 6-4           (d)  The executive director shall appoint an advisory
 6-5     committee to assist in the preparation of the state strategic plan.
 6-6     The members of the advisory committee appointed by the executive
 6-7     director must be approved by the board and must include officers or
 6-8     employees of state government.  The telecommunications planning and
 6-9     oversight council shall appoint one of its members to serve as a
6-10     member of the advisory committee.
6-11           SECTION 3.03.  The heading of Subchapter H, Chapter 2054,
6-12     Government Code, is amended to read as follows:
6-13                 SUBCHAPTER H.  TELECOMMUNICATIONS PLANNING
6-14                        AND OVERSIGHT COUNCIL [GROUP]
6-15           SECTION 3.04.  Section 2054.201, Government Code, is amended
6-16     to read as follows:
6-17           Sec. 2054.201.  COMPOSITION; TERMS.  (a)  The
6-18     telecommunications planning and oversight council [group] is
6-19     composed of:
6-20                 (1)  a representative of the comptroller's office,
6-21     appointed by the comptroller;
6-22                 (2)  the executive director of the Telecommunications
6-23     Infrastructure Fund Board;
6-24                 (3)  a representative of the General Services
6-25     Commission, appointed by the executive director of the commission;
6-26                 (4)  a member representing the interests of state
6-27     agencies with 1,000 employees or more, appointed by the lieutenant
6-28     governor;
6-29                 (5)  a member representing the interests of state
6-30     agencies with fewer than 1,000 employees, appointed by the speaker
6-31     of the house of representatives;
6-32                 (6)  a member representing the interests of
6-33     institutions of higher education, appointed by the commissioner of
6-34     higher education;
6-35                 (7)  a member representing the interests of The
6-36     University of Texas System, appointed by the chancellor;
6-37                 (8)  a member representing the interests of The Texas
6-38     A&M University System, appointed by the chancellor;
6-39                 (9)  a member representing the interests of public
6-40     school districts that are customers of the consolidated
6-41     telecommunications system, appointed by the governor;
6-42                 (10)  a member representing the interests of local
6-43     governments that are customers of the consolidated
6-44     telecommunications system, appointed by the governor; and
6-45                 (11)  two public members with telecommunications
6-46     expertise, appointed by the governor [the comptroller, the
6-47     executive director of the department, and the executive director of
6-48     the General Services Commission].
6-49           (b)  Appointed members of the telecommunications planning and
6-50     oversight council serve two-year terms, except that the
6-51     representative of the comptroller's office serves at the discretion
6-52     of the comptroller and the representative of the General Services
6-53     Commission serves at the discretion of the executive director of
6-54     the commission [Each member of the group may designate an employee
6-55     of the member's agency to serve in the member's place].
6-56           (c)  Members of the telecommunications planning and oversight
6-57     council who represent a state agency shall abstain from any action
6-58     taken by the council regarding a request for a waiver under Section
6-59     2170.051 from the state agency that is represented by the member.
6-60           SECTION 3.05.  Subchapter H, Chapter 2054, Government Code,
6-61     is amended by adding Section 2054.2011 to read as follows:
6-62           Sec. 2054.2011.  DEFINITIONS.  In this subchapter:
6-63                 (1)  "Centralized capitol complex telephone system"
6-64     means the system described in Section 2170.059.
6-65                 (2)  "Consolidated telecommunications system" has the
6-66     meaning assigned by Section 2170.001.
6-67           SECTION 3.06.  Section 2054.202, Government Code, is amended
6-68     to read as follows:
6-69           Sec. 2054.202.  ADMINISTRATIVE PROVISIONS.  (a)  The
 7-1     telecommunications planning and oversight council [group] shall
 7-2     post notice of its meetings in accordance with the open meetings
 7-3     law, Chapter 551, in the manner required for a state governmental
 7-4     body under that chapter.
 7-5           (b)  The department shall provide [coordinate] the staff and
 7-6     administrative support necessary for [provided to] the
 7-7     telecommunications planning and oversight council to perform its
 7-8     duties under this subchapter [group by the department, by the
 7-9     comptroller, and by the General Services Commission].
7-10           (c)  The telecommunications planning and oversight council
7-11     [group] may periodically elect one of its members to serve as
7-12     presiding officer of the council [group].
7-13           SECTION 3.07.  Section 2054.203, Government Code, is amended
7-14     by amending Subsections (a) through (d) and adding Subsection (g)
7-15     to read as follows:
7-16           (a)  The telecommunications planning and oversight council
7-17     [group] shall comprehensively collect and manage telecommunications
7-18     network configuration information about existing and planned
7-19     telecommunications networks throughout state government.
7-20           (b)  The telecommunications planning and oversight council
7-21     [group] may require state agencies to submit to the council [group]
7-22     the agencies' network configuration information, but the council
7-23     [group] must use existing reports to gather the information if
7-24     possible and minimize the reporting burden on agencies to the
7-25     extent possible.
7-26           (c)  The telecommunications planning and oversight council
7-27     [group] shall establish plans and policies for a system of
7-28     telecommunications services to be managed and operated by the
7-29     department [General Services Commission].
7-30           (d)  The telecommunications planning and oversight council
7-31     [group] shall develop a statewide telecommunications operating plan
7-32     for all state agencies.  The plan shall implement a statewide
7-33     network and include technical specifications that are binding on
7-34     the department [General Services Commission].
7-35           (g)  The telecommunications planning and oversight council
7-36     shall perform strategic planning for all state telecommunications
7-37     services in accordance with the guiding principles of the state
7-38     strategic plan for information resources management.
7-39           SECTION 3.08.  Subsections (a) and (c), Section 2054.204,
7-40     Government Code, are amended to read as follows:
7-41           (a)  The telecommunications planning and oversight council
7-42     [group] shall develop a plan for a state telecommunications network
7-43     that will effectively and efficiently meet the long-term
7-44     requirements of state government for voice, video, and computer
7-45     communications, with the goal of achieving a single centralized
7-46     telecommunications network for state government.
7-47           (c)  The plan must incorporate efficiencies obtained through
7-48     the use of shared transmission services and open systems
7-49     architecture as they become available, building on existing systems
7-50     as appropriate.  In developing the plan, the telecommunications
7-51     planning and oversight council [group] shall make use of the
7-52     technical expertise of state agencies, including institutions of
7-53     higher education.
7-54           SECTION 3.09.  Section 2054.205, Government Code, is amended
7-55     to read as follows:
7-56           Sec. 2054.205.  DEVELOPMENT OF SYSTEM.  (a)  The
7-57     telecommunications planning and oversight council [group] shall
7-58     develop functional requirements for a statewide system of
7-59     telecommunications services for all state agencies.  Existing
7-60     networks, as configured on September 1, 1991, of institutions of
7-61     higher education are exempt from the requirements.
7-62           (b)  The telecommunications planning and oversight council
7-63     [group] shall develop requests for information and proposals for a
7-64     statewide system of telecommunications services for all state
7-65     agencies.
7-66           (c)  The telecommunications planning and oversight council
7-67     [group] shall negotiate rates and execute contracts with
7-68     telecommunications service providers for services.  The
7-69     telecommunications planning and oversight council [group] may:
 8-1                 (1)  acquire transmission facilities by purchase,
 8-2     lease, or lease-purchase in accordance with Chapters 2155-2158; and
 8-3                 (2)  develop, establish, and maintain carrier systems
 8-4     necessary to the operation of the telecommunications system.
 8-5           SECTION 3.10.  Subchapter H, Chapter 2054, Government Code,
 8-6     is amended by adding Section 2054.2051 to read as follows:
 8-7           Sec. 2054.2051.  OVERSIGHT OF SYSTEMS.  (a)  The
 8-8     telecommunications planning and oversight council shall develop
 8-9     service objectives for the consolidated telecommunications system
8-10     and the centralized capitol complex telephone system.
8-11           (b)  The telecommunications planning and oversight council
8-12     shall develop performance measures for the operations and staff of
8-13     the consolidated telecommunications system and the centralized
8-14     capitol complex telephone system.
8-15           (c)  The telecommunications planning and oversight council
8-16     shall review every three months the status of all projects related
8-17     to and the financial performance of the consolidated
8-18     telecommunications system and the centralized capitol complex
8-19     telephone system, including a comparison between actual performance
8-20     and projected goals.
8-21           (d)  The telecommunications planning and oversight council
8-22     shall make recommendations to the board on ways to improve the
8-23     operation of the consolidated telecommunications system and the
8-24     centralized capitol complex telephone system based on its review of
8-25     their performance and on concerns raised by using entities.
8-26           SECTION 3.11.  Section 2054.206, Government Code, is amended
8-27     to read as follows:
8-28           Sec. 2054.206.  ANNUAL REPORT.  The telecommunications
8-29     planning and oversight council shall submit an annual report to the
8-30     department and to each entity served by the consolidated
8-31     telecommunications system or the centralized capitol complex
8-32     telephone system.  The report must include:
8-33                 (1)  information about the accomplishment of service
8-34     objectives and other performance measures for management of the
8-35     consolidated telecommunications system and the centralized capitol
8-36     complex telephone system;
8-37                 (2)  information about the accounting and financial
8-38     performance of the consolidated telecommunications system and the
8-39     centralized capitol complex telephone system;
8-40                 (3)  estimates of savings to entities served by the
8-41     consolidated telecommunications system over standard rates
8-42     available to state agencies who acquire telecommunications services
8-43     directly;
8-44                 (4)  trends in network use, including the number of
8-45     users, workstations, and locations supported; and
8-46                 (5)  rate information for services provided by the
8-47     consolidated telecommunications system and the centralized capitol
8-48     complex telephone system.  [ADVISORY AGENCIES.  The following state
8-49     agencies shall formally advise the telecommunications planning
8-50     group and send representatives to meetings of the group:]
8-51                 [(1)  the Texas Education Agency;]
8-52                 [(2)  the Texas Higher Education Coordinating Board;]
8-53                 [(3)  The Texas A&M University System;]
8-54                 [(4)  The University of Texas System;]
8-55                 [(5)  the Telecommunications Infrastructure Fund Board;
8-56     and]
8-57                 [(6)  the Texas State Library and Archives Commission.]
8-58           SECTION 3.12.  Section 2054.207, Government Code, is amended
8-59     to read as follows:
8-60           Sec. 2054.207.  REPORT TO LEGISLATURE.  The
8-61     telecommunications planning and oversight council [group] shall
8-62     report biennially to the legislature not later than October 1 of
8-63     each even-numbered year on the status of the current plan for a
8-64     state telecommunications network and on the progress state
8-65     government has made towards accomplishing the goals of the plan.
8-66     The report shall address consolidated telecommunications system
8-67     performance, centralized capitol complex telephone system
8-68     performance, telecommunications system needs, and recommended
8-69     statutory changes to enhance system capability and
 9-1     cost-effectiveness.
 9-2           SECTION 3.13.  Subdivision (1), Section 2157.001, Government
 9-3     Code, is amended to read as follows:
 9-4                 (1)  "Automated information system" includes:
 9-5                       (A)  the computers and computer devices on which
 9-6     an information system is automated, including computers and
 9-7     computer devices that the commission identifies in guidelines
 9-8     developed by the commission in consultation with the Department of
 9-9     Information Resources and in accordance with Chapter 2054 and rules
9-10     adopted under that chapter;
9-11                       (B)  a service related to the automation of an
9-12     information system, including computer software or computers;
9-13                       (C)  a telecommunications apparatus or device
9-14     that serves as a component of a voice, data, or video
9-15     communications network for transmitting, switching, routing,
9-16     multiplexing, modulating, amplifying, or receiving signals on the
9-17     network, and services related to telecommunications that are not
9-18     covered under Paragraph (D); and
9-19                       (D)  for the Department of Information Resources
9-20     [General Services Commission], as telecommunications provider for
9-21     the state, the term includes any service provided by a
9-22     telecommunications provider, as that term is defined by Section
9-23     51.002, Utilities Code.
9-24           SECTION 3.14.  Section 2157.121, Government Code, is amended
9-25     by amending Subsection (b) and adding Subsection (c) to read as
9-26     follows:
9-27           (b)  A state agency, other than the Department of Information
9-28     Resources, shall send its proposal specifications and criteria to
9-29     the commission for approval or request the commission to develop
9-30     the proposal specifications and criteria.
9-31           (c)  The Department of Information Resources may acquire a
9-32     telecommunications device, system, or service or an automated
9-33     information system by using competitive sealed proposals without
9-34     regard to whether the commission makes the determination required
9-35     under Subsection (a) for other state agencies.
9-36           SECTION 3.15.  Subsection (a), Section 2170.001, Government
9-37     Code, is amended by adding Subdivision (3) to read as follows:
9-38                 (3)  "Department" means the Department of Information
9-39     Resources.
9-40           SECTION 3.16.  Section 2170.002, Government Code, is amended
9-41     to read as follows:
9-42           Sec. 2170.002.  DEPARTMENT [COMMISSION] RESPONSIBLE FOR
9-43     OBTAINING TELECOMMUNICATIONS SERVICES.  The department [commission]
9-44     is the state agency responsible for obtaining telecommunications
9-45     services.
9-46           SECTION 3.17.  Section 2170.003, Government Code, is amended
9-47     to read as follows:
9-48           Sec. 2170.003.  OWNERSHIP OR LEASE OF NECESSARY EQUIPMENT.
9-49     The department [commission] may own, lease, or lease-purchase in
9-50     accordance with Chapters 2155, 2156, 2157, and 2158 any or all of
9-51     the facilities or equipment necessary to provide telecommunications
9-52     services.
9-53           SECTION 3.18.  Section 2170.004, Government Code, is amended
9-54     to read as follows:
9-55           Sec. 2170.004.  CONTRACTS WITH ENTITIES OTHER THAN STATE
9-56     AGENCIES.  The department [commission] may contract for use of the
9-57     consolidated telecommunications system with:
9-58                 (1)  each house of the legislature;
9-59                 (2)  a legislative agency;
9-60                 (3)  an agency that is not a state agency as defined by
9-61     Section 2151.002; and
9-62                 (4)  a political subdivision, including a county,
9-63     municipality, or district.
9-64           SECTION 3.19.  Subsections (a) and (c), Section 2170.005,
9-65     Government Code, are amended to read as follows:
9-66           (a)  To ensure efficient operation of the consolidated
9-67     telecommunications system at minimum cost to the state, the
9-68     department [commission] shall adopt and disseminate to all agencies
9-69     appropriate guidelines, operating procedures, and telephone
 10-1    directories.
 10-2          (c)  Telephone directories published by the department
 10-3    [commission] under this section and Section 2170.059 must be
 10-4    revised regularly and must list state telephone numbers
 10-5    alphabetically by the subject matter of agency programs as well as
 10-6    alphabetically by agency.  The subject matter listing of programs
 10-7    and telephone numbers in the telephone directories must be
 10-8    consistent with the categorization developed by the Records
 10-9    Management Interagency Coordinating Council under Section 441.203
10-10    [441.053].  The department [commission] may authorize, under
10-11    procedures and rules considered appropriate by the department
10-12    [commission], a yellow pages advertising section in the directories
10-13    to recover development, publication, and distribution costs of the
10-14    directories.
10-15          SECTION 3.20.  Section 2170.006, Government Code, is amended
10-16    to read as follows:
10-17          Sec. 2170.006.  COST-EFFECTIVENESS OF SYSTEM.  (a)  The
10-18    department [commission], with the advice of the state auditor,
10-19    shall maintain records relating to the consolidated
10-20    telecommunications system necessary to enable the department
10-21    [commission] to analyze the cost-effectiveness of the system to
10-22    state agencies.
10-23          (b)  The department [commission] shall advise the legislature
10-24    at each session about the system's cost-effectiveness.
10-25          SECTION 3.21.  Section 2170.008, Government Code, is amended
10-26    to read as follows:
10-27          Sec. 2170.008.  RATE INTERVENTION.  (a)  If the department
10-28    [commission] determines there is sufficient economic impact on
10-29    state government, the department [commission] may intervene on
10-30    behalf of state agencies in telecommunications rate cases and may
10-31    hire special counsel and expert witnesses to prepare and present
10-32    testimony.
10-33          (b)  The attorney general shall represent the department
10-34    [commission] before the courts in all appeals from rate cases in
10-35    which the department [commission] intervenes.
10-36          SECTION 3.22.  Subsections (a) and (c), Section 2170.009,
10-37    Government Code, are amended to read as follows:
10-38          (a)  A pay telephone may be located in the capitol complex
10-39    only with the approval of the department [commission].  The
10-40    department [commission] shall collect the revenue from the
10-41    installation and operation of the pay telephone and deposit it to
10-42    the credit of the general revenue fund.
10-43          (c)  The department [commission] or other state entity shall
10-44    account for the revenue collected under this section in the
10-45    entity's annual report.
10-46          SECTION 3.23.  Section 2170.051, Government Code, is amended
10-47    to read as follows:
10-48          Sec. 2170.051.  MANAGEMENT AND USE OF SYSTEM.  (a)  The
10-49    department [commission] shall manage the operation of a system of
10-50    telecommunications services for all state agencies.  Each agency
10-51    shall identify its particular requirements for telecommunications
10-52    services and the site at which the services are to be provided.
10-53          (b)  The department [commission] shall fulfill the
10-54    telecommunications requirements of each state agency to the extent
10-55    possible and to the extent that money is appropriated or available
10-56    for that purpose.
10-57          (c)  A state agency shall use the consolidated
10-58    telecommunications system to the fullest extent possible.  A state
10-59    agency may not acquire telecommunications services unless the
10-60    telecommunications planning and oversight council [group]
10-61    determines that the agency's requirement for telecommunications
10-62    services cannot be met at a comparable cost by the consolidated
10-63    telecommunications system.
10-64          (d)  A state agency may not enter into or renew a contract
10-65    with a carrier or other provider of telecommunications services
10-66    without obtaining a waiver from the telecommunications planning and
10-67    oversight council [group] certifying that the requested
10-68    telecommunications services cannot be provided at a comparable cost
10-69    on the consolidated telecommunications system.  The
 11-1    telecommunications planning and oversight council [group] shall
 11-2    evaluate requests for waivers based on cost-effectiveness to the
 11-3    state government as a whole.  A waiver may be granted only for a
 11-4    specific period and will automatically expire on the stated
 11-5    expiration date unless an extension is approved by the
 11-6    telecommunications planning and oversight council [group].  A
 11-7    contract for telecommunications services obtained under waiver may
 11-8    not extend beyond the expiration date of the waiver.  If the
 11-9    telecommunications planning and oversight council [group] becomes
11-10    aware of any state agency receiving telecommunications services
11-11    without a waiver, the telecommunications planning and oversight
11-12    council [group] shall notify the agency and the comptroller.  The
11-13    state agency shall have 60 days after notification by the
11-14    telecommunications planning and oversight council [group] in which
11-15    to submit a waiver request to the telecommunications planning and
11-16    oversight council [group] documenting the agency's reasons
11-17    [reasoning] for bypassing the consolidated telecommunications
11-18    system and otherwise providing all information required by the
11-19    waiver application form.
11-20          SECTION 3.24.  Section 2170.052, Government Code, is amended
11-21    to read as follows:
11-22          Sec. 2170.052.  BALANCING TECHNOLOGICAL ADVANCEMENTS AND
11-23    EXISTING FACILITIES.  In the planning, design, implementation, and
11-24    operation of the consolidated telecommunications system, the
11-25    department [commission] shall maintain an appropriate balance
11-26    between the adoption of technological advancements and the
11-27    efficient use of existing facilities and services to avoid
11-28    misapplication of state money and degradation or loss of the
11-29    integrity of existing systems and facilities.
11-30          SECTION 3.25.  Section 2170.056, Government Code, is amended
11-31    to read as follows:
11-32          Sec. 2170.056.  COSTS TO STATE OF PARALLEL TOLLS.  All
11-33    contracts with telecommunications carriers shall provide that the
11-34    department [commission] or any participating agency may obtain any
11-35    information relating to the costs to the state of parallel tolls.
11-36          SECTION 3.26.  Subsections (a), (c), and (d), Section
11-37    2170.057, Government Code, are amended to read as follows:
11-38          (a)  The department [commission] shall develop a system of
11-39    billings and charges for services provided in operating and
11-40    administering the consolidated telecommunications system that
11-41    allocates the total state cost to each entity served by the system
11-42    based on proportionate usage.
11-43          (c)  To provide an adequate cash flow as necessary for
11-44    purposes of this chapter, using state agencies and other entities,
11-45    on proper notification, shall make monthly payments into the
11-46    telecommunications revolving fund account from appropriated or
11-47    other available money.  The legislature may appropriate money for
11-48    operating the system directly to the department [commission], in
11-49    which case the revolving fund account shall be used to receive
11-50    money due from local governmental entities and other agencies to
11-51    the extent that their money is not subject to legislative
11-52    appropriation.
11-53          (d)  The department [commission] shall maintain in the
11-54    revolving fund account sufficient amounts to pay the bills of the
11-55    consolidated telecommunications system and the centralized capitol
11-56    complex telephone system.  The department [commission] shall
11-57    certify amounts that exceed this amount to the comptroller, and the
11-58    comptroller shall transfer the excess amounts to the credit of the
11-59    statewide network applications account established by Section
11-60    2054.011 [22A, Information Resources Management Act (Article
11-61    4413(32j), Revised Statutes)].
11-62          SECTION 3.27.  Subsections (b) and (c), Section 2170.058,
11-63    Government Code, are amended to read as follows:
11-64          (b)  The department [commission] shall adopt rules that
11-65    govern student access to the system, including:
11-66                (1)  times of access to the system; and
11-67                (2)  the full recovery of actual costs from each
11-68    student who uses the system.
11-69          (c)  In consideration of the duties and responsibilities
 12-1    given the department [commission] under this chapter [subtitle], it
 12-2    is the policy of this state that a state agency or unit of state
 12-3    government may not provide telecommunications products or services
 12-4    to the general public in competition with private enterprise unless
 12-5    there is a finding that providing the products or services is in
 12-6    the public interest.  This subsection does not prohibit students
 12-7    who reside in housing for which institutions of higher education
 12-8    provide telephone service from using service provided under this
 12-9    section.
12-10          SECTION 3.28.  Section 2170.059, Government Code, is amended
12-11    to read as follows:
12-12          Sec. 2170.059.  CENTRALIZED CAPITOL COMPLEX TELEPHONE SYSTEM.
12-13    (a)  The department [commission] shall provide centralized
12-14    telephone service for state agencies, each house of the
12-15    legislature, and legislative agencies in the capitol complex.
12-16    State agencies in the capitol complex shall use the service.  Each
12-17    house of the legislature and each legislative agency shall use the
12-18    service at the discretion of the legislature.  The department
12-19    [commission] may provide the service to other state agencies that
12-20    subscribe to it.
12-21          (b)  Each using entity shall make monthly payments to the
12-22    department [commission] when billed by the department [commission].
12-23          (c)  Each using entity may arrange for its own terminal
12-24    telephone equipment, but the equipment must be compatible with the
12-25    centralized telephone service.  The department [commission] shall
12-26    make terminal equipment available for using entities that choose to
12-27    use that terminal equipment.
12-28          (d)  The department [commission] annually shall prepare and
12-29    issue a revised centralized telephone service directory not later
12-30    than March 31.
12-31          SECTION 3.29.  Subchapter B, Chapter 2170, Government Code,
12-32    is amended by adding Section 2170.060 to read as follows:
12-33          Sec. 2170.060.  QUARTERLY REPORT.  The department shall
12-34    quarterly submit a report to the telecommunications planning and
12-35    oversight council on:
12-36                (1)  the department's accomplishment of service
12-37    objectives and other performance measures;
12-38                (2)  the financial performance of the consolidated
12-39    telecommunications system and the centralized capitol complex
12-40    telephone system; and
12-41                (3)  the status of projects for the consolidated
12-42    telecommunications system and the centralized capitol complex
12-43    telephone system.
12-44          SECTION 3.30.  Subsection (e), Section 2054.091, Government
12-45    Code, is repealed.
12-46          SECTION 3.31.  Section 2170.007, Government Code, is
12-47    repealed.
12-48          SECTION 3.32.  On September 1, 2001:
12-49                (1)  the Department of Information Resources replaces
12-50    the General Services Commission as the telecommunications services
12-51    provider for state government;
12-52                (2)  all functions and activities performed by the
12-53    General Services Commission that relate to providing
12-54    telecommunications services for state government under Chapter
12-55    2170, Government Code, or other law immediately before that date
12-56    are transferred to the Department of Information Resources;
12-57                (3)  all employees of the General Services Commission
12-58    who primarily perform duties related to providing
12-59    telecommunications services for state government, including
12-60    employees who provide administrative support for those services,
12-61    under Chapter 2170, Government Code, or other law become employees
12-62    of the Department of Information Resources, but continue to work in
12-63    the same physical location unless moved in accordance with the plan
12-64    created under Section 3.33 of this Act;
12-65                (4)  a rule or form adopted by the General Services
12-66    Commission that relates to providing telecommunications services
12-67    for state government under Chapter 2170, Government Code, or other
12-68    law is a rule or form of the Department of Information Resources
12-69    and remains in effect until changed by the department;
 13-1                (5)  a reference in law to the General Services
 13-2    Commission that relates to providing telecommunications services
 13-3    for state government under Chapter 2170, Government Code, or other
 13-4    law means the Department of Information Resources;
 13-5                (6)  a waiver in effect that was issued by the General
 13-6    Services Commission relating to telecommunications under Chapter
 13-7    2170, Government Code, or other law is continued in effect as a
 13-8    waiver of the Department of Information Resources;
 13-9                (7)  a rate case, contract negotiation, or other
13-10    proceeding involving the General Services Commission that is
13-11    related to providing telecommunications services for state
13-12    government under Chapter 2170, Government Code, or other law is
13-13    transferred without change in status to the Department of
13-14    Information Resources, and the Department of Information Resources
13-15    assumes, without a change in status, the position of the General
13-16    Services Commission in a negotiation or proceeding relating to
13-17    telecommunications to which the General Services Commission is a
13-18    party;
13-19                (8)  all money, contracts, leases, rights, and
13-20    obligations of the General Services Commission related to providing
13-21    telecommunications services for state government under Chapter
13-22    2170, Government Code, or other law are transferred to the
13-23    Department of Information Resources;
13-24                (9)  all property, including records, in the custody of
13-25    the General Services Commission related to providing
13-26    telecommunications services for state government under Chapter
13-27    2170, Government Code, or other law becomes property of the
13-28    Department of Information Resources, but stays in the same physical
13-29    location unless moved in accordance with the plan created under
13-30    Section 3.33 of this Act; and
13-31                (10)  all funds appropriated by the legislature to the
13-32    General Services Commission for purposes related to providing
13-33    telecommunications services for state government, including funds
13-34    for providing administrative support for those services such as
13-35    funds to pay the salary and benefits of employees who provide the
13-36    administrative support, under Chapter 2170, Government Code, or
13-37    other law are transferred to the Department of Information
13-38    Resources.
13-39          SECTION 3.33.  The General Services Commission and the
13-40    Department of Information Resources shall establish a transition
13-41    plan for the transfer described in Section 3.32 of this Act.  The
13-42    plan must include:
13-43                (1)  a timetable for any necessary or advisable
13-44    movement of the physical location of employees and property;
13-45                (2)  an inventory of all equipment and other property
13-46    required to be transferred;
13-47                (3)  a determination of any continued support and
13-48    cooperation the commission must provide the department to ensure an
13-49    efficient continuation of service and of planning for future needs,
13-50    and the period during which continued support and cooperation will
13-51    be necessary; and
13-52                (4)  provisions for the immediate access of the
13-53    department to facilities that house telecommunications equipment
13-54    and any related facilities.
13-55          SECTION 3.34.  (a)  The telecommunications planning group is
13-56    abolished.
13-57          (b)  The governor, the lieutenant governor, the speaker of
13-58    the house of representatives, the comptroller of public accounts,
13-59    the executive director of the General Services Commission, the
13-60    commissioner of higher education, the chancellor of The University
13-61    of Texas System, and the chancellor of The Texas A&M University
13-62    System shall make appointments to the telecommunications planning
13-63    and oversight council in accordance with Section 2054.201,
13-64    Government Code, as amended by this Act, as soon as possible after
13-65    September 1, 2001.
13-66          (c)  Any powers, duties, rights, contracts, appropriations,
13-67    property, and records of the telecommunications planning group are
13-68    transferred to the telecommunications planning and oversight
13-69    council as created by this Act.
 14-1          (d)  A rule, policy, plan, waiver, standard, requirement, or
 14-2    guideline of the telecommunications planning group continues in
 14-3    effect as a rule, policy, plan, waiver, standard, requirement, or
 14-4    guideline of the telecommunications planning and oversight council
 14-5    until it is superseded by an act of the telecommunications planning
 14-6    and oversight council as created by this Act or until it expires
 14-7    according to its terms or by operation of law.
 14-8          (e)  The validity of a rule, policy, plan, requirement,
 14-9    guideline, or procedure adopted, waiver granted, contract or
14-10    acquisition made, obligation incurred, right accrued, or other
14-11    action taken by or in connection with the authority of the
14-12    telecommunications planning group before it is abolished under
14-13    Subsection (a) of this section is not affected by the abolishment.
14-14          SECTION 3.35.  The telecommunications planning and oversight
14-15    council shall issue the first annual report required under Section
14-16    2054.206, Government Code, as amended by this Act, not later than
14-17    September 1, 2002.
14-18                    ARTICLE 4.  CONTRACTING GUIDELINES
14-19          SECTION 4.01.  Subchapter C, Chapter 2054, Government Code,
14-20    is amended by adding Section 2054.058 to read as follows:
14-21          Sec. 2054.058.  CONTRACTING GUIDELINES.  (a)  The department
14-22    with the assistance of the state auditor's office, the office of
14-23    the attorney general, and the General Services Commission shall
14-24    develop contracting guidelines for state agencies.  The guidelines
14-25    must be developed to accommodate the varying needs of state
14-26    agencies.  The department shall include in the guidelines
14-27    information regarding:
14-28                (1)  contract monitoring;
14-29                (2)  contractor selection;
14-30                (3)  subcontractor performance; and
14-31                (4)  standard contract provisions for common types of
14-32    contracts.
14-33          (b)  The department shall:
14-34                (1)  create training materials for state agency
14-35    personnel who are directly or indirectly involved with contracts;
14-36                (2)  provide ongoing assistance and support for state
14-37    agency contracting efforts;
14-38                (3)  enter into an interagency agreement with the
14-39    office of the attorney general for legal assistance necessary in
14-40    implementing this section; and
14-41                (4)  identify the types of contracts that pose a risk
14-42    of loss to the state and require enhanced contract monitoring, and
14-43    rank the types of contracts according to the amount of risk posed.
14-44          (c)  Each state agency shall comply with the contracting
14-45    guidelines developed by the department under this section.
14-46          (d)  The contracting guidelines developed by the department
14-47    apply only to procurements made with appropriated money.
14-48          SECTION 4.02.  (a)  An interagency work group is created to
14-49    assist the Department of Information Resources in developing
14-50    contracting guidelines for state agency use under Section 2054.058,
14-51    Government Code, as added by this Act.
14-52          (b)  The interagency work group is composed of:
14-53                (1)  a representative of:
14-54                      (A)  the state auditor's office, appointed by the
14-55    state auditor;
14-56                      (B)  the office of the attorney general,
14-57    appointed by the attorney general;
14-58                      (C)  the comptroller's office, appointed by the
14-59    comptroller of public accounts; and
14-60                      (D)  the General Services Commission, appointed
14-61    by the executive director of the commission; and
14-62                (2)  additional members appointed by the governing
14-63    board of the Department of Information Resources from:
14-64                      (A)  institutions of higher education; and
14-65                      (B)  other state agencies.
14-66          (c)  The interagency work group expires on September 1, 2002,
14-67    unless reconvened by the Department of Information Resources, as
14-68    needed.
 15-1               ARTICLE 5.  COMMERCIALLY AVAILABLE ACTIVITIES
 15-2          SECTION 5.01.  Chapter 2152, Government Code, is amended by
 15-3    adding Subchapter D to read as follows:
 15-4             SUBCHAPTER D.  COMMERCIALLY AVAILABLE ACTIVITIES
 15-5          Sec. 2152.151.  REVIEW PROCESS.  (a)  The commission shall
 15-6    develop a systematic review process to identify commercially
 15-7    available services being performed by the commission and study the
 15-8    services to determine if they may be better provided by other state
 15-9    agency providers of the services or private commercial sources.
15-10          (b)  In reviewing its services, the commission shall:
15-11                (1)  determine whether competitive vendors exist in the
15-12    private sector;
15-13                (2)  compare the cost of contracting for the services
15-14    from other state agency providers of the services or private
15-15    commercial sources to the commission's cost of performing the
15-16    services; and
15-17                (3)  document cost savings from contracting for the
15-18    services from other state agency providers of the services or
15-19    private commercial sources.
15-20          (c)  Each commercially available service performed by the
15-21    commission shall be reviewed at least once every six years.
15-22          (d)  The commission shall consult with the State Council on
15-23    Competitive Government as necessary in planning and conducting its
15-24    reviews under this subchapter.
15-25          Sec. 2152.152.  COST COMPARISON AND CONTRACT CONSIDERATIONS.
15-26    (a)  The commission shall consider all of its direct and indirect
15-27    costs in determining the cost of providing a service.
15-28          (b)  In comparing the cost of providing a service, the
15-29    commission must include the:
15-30                (1)  cost of supervising the work of a private
15-31    contractor; and
15-32                (2)  cost to the state of the commission's performance
15-33    of the service, including:
15-34                      (A)  the costs of the comptroller's office, the
15-35    office of the attorney general, and other support agencies; and
15-36                      (B)  other indirect costs related to the
15-37    commission's performance of the service.
15-38          Sec. 2152.153.  CONTRACTING WITH ANOTHER STATE AGENCY OR
15-39    PRIVATE SOURCE.  (a)  If the commission determines that a service
15-40    can be performed with a comparable or better level of quality at a
15-41    savings to the state of at least 10 percent by using other state
15-42    agency providers of the service or a private commercial source, the
15-43    commission may contract with other state agency providers of the
15-44    services or private commercial sources for the service.
15-45          (b)  The commission maintains responsibility for providing a
15-46    contracted service and shall set measurable performance standards
15-47    for a contractor.
15-48          Sec. 2152.154.  PROHIBITION.  The commission may not begin
15-49    providing a service it did not already provide as of September 1,
15-50    2001, unless, after conducting an in-depth analysis on cost in
15-51    accordance with Section 2152.152 and on availability of a service,
15-52    it determines that it can perform the service at a higher level of
15-53    quality or at a lower cost than other state agency providers of the
15-54    service or private commercial sources.
15-55                  ARTICLE 6.  ELECTRONIC COMMERCE; TRAVEL
15-56          SECTION 6.01.  Subsection (a), Section 2155.062, Government
15-57    Code, is amended to read as follows:
15-58          (a)  In purchasing goods and services the commission may use,
15-59    but is not limited to, the:
15-60                (1)  contract purchase procedure;
15-61                (2)  multiple award contract procedure; [or]
15-62                (3)  open market purchase procedure; or
15-63                (4)  reverse auction procedure.
15-64          SECTION 6.02.  Subsections (c), (d), (f), (k), and (l),
15-65    Section 2155.083, Government Code, are amended to read as follows:
15-66          (c)  The commission [department] each business day shall
15-67    produce and post a business daily in an electronic format.  The
15-68    commission [department] shall post in the business daily
15-69    information as prescribed by this section about each state agency
 16-1    procurement that will exceed $25,000 in value.  The commission
 16-2    [department] shall also post in the business daily other
 16-3    information relating to the business activity of the state that the
 16-4    commission [department] considers to be of interest to the public.
 16-5          (d)  The commission [department] shall make the business
 16-6    daily available on the Internet [through its information service
 16-7    known as the Texas Marketplace or through a suitable successor
 16-8    information service that will make the information available on the
 16-9    Internet].  Each [The department and each] state agency shall
16-10    cooperate with the commission in making the electronic business
16-11    daily available.
16-12          (f)  The commission [department] and other state agencies may
16-13    not charge a fee designed to recover the cost of preparing and
16-14    gathering the information that is published in the business daily.
16-15    These costs are considered part of a procuring agency's
16-16    responsibility to publicly inform potential bidders or offerors of
16-17    its procurement opportunities.
16-18          (k)  Each state agency that will award a procurement contract
16-19    estimated to exceed $25,000 in value shall send to the commission
16-20    [department]:
16-21                (1)  the information the commission [department]
16-22    requires for posting in the state business daily under this
16-23    section; and
16-24                (2)  a notice when the procurement contract has been
16-25    awarded or when the state agency has decided to not make the
16-26    procurement.
16-27          (l)  The commission [department] may adopt rules, prescribe
16-28    forms, and require information to administer this section.  The
16-29    commission [department] shall send any proposed rules to the
16-30    governor, Legislative Budget Board, comptroller, and state auditor
16-31    [, and commission] for review and comment.  The commission's
16-32    [department's] rules shall require that each state agency[, to the
16-33    extent feasible,] shall directly and electronically post its own
16-34    notices or solicitation packages under Subsections (g) and (h).
16-35          SECTION 6.03.  Subsections (a) and (b), Section 2156.003,
16-36    Government Code, are amended to read as follows:
16-37          (a)  The commission shall electronically maintain a bidders
16-38    list that is integrated into the electronic procurement marketplace
16-39    established by the Department of Information Resources.  If the
16-40    commission determines that it is in the state's best interest, the
16-41    commission may also maintain the list on paper.  The commission may
16-42    [and] add or delete names from the list according to applicable
16-43    standards provided by Section 2156.007.
16-44          (b)  In addition to any requirements of Chapter 2177, an [An]
16-45    invitation to bid on an item to be purchased may be sent
16-46    electronically [only] to a vendor on the bidders list who has
16-47    expressed a desire to bid on that type of item.
16-48          SECTION 6.04.  Section 2171.052, Government Code, is amended
16-49    by adding Subsection (e) to read as follows:
16-50          (e)  The commission shall maintain at least one contract with
16-51    a provider of travel services that offers reservation and ticketing
16-52    services in person or by telephone.
16-53          SECTION 6.05.  Subchapter B, Chapter 2171, Government Code,
16-54    is amended by adding Section 2171.0521 to read as follows:
16-55          Sec. 2171.0521.  ONLINE RESERVATION AND TICKETING SYSTEM.
16-56    (a)  The Department of Information Resources, in consultation with
16-57    the commission, shall establish an online travel reservation and
16-58    ticketing system for use by state agencies participating in the
16-59    commission's contracts for travel services.  The Department of
16-60    Information Resources, in consultation with the commission, shall
16-61    enter into contracts with private or public entities to establish a
16-62    secure system for use by state employees traveling on state
16-63    business.  Reservations must be made with a state-issued credit
16-64    card.
16-65          (b)  When the online reservation and ticketing system becomes
16-66    fully operational, as determined by the Department of Information
16-67    Resources, the commission shall assume management and
16-68    administrative responsibility for the system.  The commission, in
16-69    consultation with the Department of Information Resources, shall
 17-1    enter into contracts with private or public entities to maintain
 17-2    all or part of the system.
 17-3          (c)  The preference in Section 2171.052(c) for a resident
 17-4    entity of this state does not apply to this section.
 17-5          (d)  A state agency may use the online reservation and
 17-6    ticketing system to make travel reservations for a state employee
 17-7    traveling on state business.
 17-8          SECTION 6.06.  Chapter 2177, Government Code, is amended to
 17-9    read as follows:
17-10                    CHAPTER 2177.  ELECTRONIC COMMERCE
17-11                     SUBCHAPTER A.  GENERAL PROVISIONS
17-12          Sec. 2177.001.  DEFINITIONS.  In this chapter:
17-13                (1)  "Department" means the Department of Information
17-14    Resources.
17-15                (2)  "Electronic procurement system" means the
17-16    electronic system for procuring goods and services consisting of
17-17    the electronic procurement marketplace created under Subchapter B
17-18    and the electronic commerce network created under Subchapter C.
17-19          Sec. 2177.002.  SMALL AND HISTORICALLY UNDERUTILIZED
17-20    BUSINESSES.  The commission and the department shall ensure that
17-21    small and historically underutilized businesses have maximum access
17-22    to electronic commerce opportunities.
17-23          Sec. 2177.003.  CONSULTATION.  The commission, at least
17-24    quarterly, shall consult with the following entities to ensure that
17-25    the electronic procurement system meets the needs of users of the
17-26    system:
17-27                (1)  the department;
17-28                (2)  the comptroller;
17-29                (3)  the state auditor;
17-30                (4)  groups, including coordinating councils, created
17-31    by the commission to assist with electronic commerce initiatives;
17-32                (5)  the vendor advisory committee established under
17-33    Section 2155.081; and
17-34                (6)  other state agencies and local governments that
17-35    use the system.
17-36          Sec. 2177.004.  INTEGRATION WITH TEXAS ONLINE.  (a)  The
17-37    department, with the assistance of the commission, shall assess
17-38    whether all or parts of the electronic procurement system should be
17-39    enhanced by or integrated into the project known as Texas Online
17-40    that is a continuation of the demonstration project authorized by
17-41    Section 2054.062 as enacted by the 76th Legislature.
17-42          (b)  Based on the assessment, the department and the
17-43    commission may integrate all or parts of the electronic procurement
17-44    system into Texas Online or use features of Texas Online to enhance
17-45    the electronic procurement system.
17-46             SUBCHAPTER B.  ELECTRONIC PROCUREMENT MARKETPLACE
17-47          Sec. 2177.051.  ELECTRONIC PROCUREMENT MARKETPLACE.  (a)  The
17-48    department, in consultation with the commission, shall establish
17-49    [and manage] an electronic procurement marketplace.  The
17-50    department, in consultation with the commission, may enter into
17-51    contracts with private or public entities to establish [or
17-52    maintain] all or part of the databases comprising the marketplace,
17-53    to the extent feasible, including contracts to procure hardware or
17-54    software.  The department, in consultation with the commission,
17-55    shall procure all goods and services related to the marketplace
17-56    through a competitive selection process appropriate for the good or
17-57    service being acquired.
17-58          (b)  The department [commission], in consultation with the
17-59    commission [Department of Information Resources], shall define
17-60    standards, including keyword and product code standards, for the
17-61    electronic procurement marketplace.  The marketplace may contain:
17-62                (1)  information relevant to the state's standard
17-63    procurement specifications for goods and services;
17-64                (2)  information about vendors, including [information
17-65    from the centralized master bidders list and] vendor performance
17-66    information;
17-67                (3)  information about products, including product
17-68    testing results;
17-69                (4)  historical purchasing information, qualified
 18-1    purchase lists, and trends; [and]
 18-2                (5)  information about the availability of surplus
 18-3    property; and
 18-4                (6)  information about recycled, remanufactured, or
 18-5    environmentally sensitive commodities or services, including
 18-6    commodities or services identified under Section 2155.448.
 18-7          (c)  The department, in consultation with the commission,
 18-8    shall integrate the business daily into the electronic procurement
 18-9    marketplace.
18-10          (d)  The department, in consultation with the commission, may
18-11    adopt rules relating to the design and use of the electronic
18-12    procurement marketplace that concern the technical requirements of
18-13    the marketplace.  The commission, in consultation with the
18-14    department, may adopt rules relating to the use of the marketplace
18-15    for its intended purpose, including rules that require state
18-16    agencies to provide information for or receive information from the
18-17    marketplace.
18-18          (e)  When the electronic procurement marketplace becomes
18-19    fully operational, as determined by the department, the commission
18-20    shall assume management and administrative responsibility for the
18-21    marketplace.  The commission, in consultation with the department,
18-22    may enter into contracts with private or public entities to
18-23    maintain all or part of the databases comprising the marketplace.
18-24          (f) [(d)]  The commission may make state procurement
18-25    information available to political subdivisions through the
18-26    electronic procurement marketplace on a fee-for-service basis.  The
18-27    commission shall set the fees in an amount that recovers the
18-28    state's costs in providing the access to a political subdivision.
18-29          (g) [(e)]  Before developing a contract for the procurement
18-30    of a good or service, a state agency shall [may] use the electronic
18-31    procurement marketplace as prescribed by this chapter and
18-32    commission rules [to determine the most appropriate method for
18-33    acquiring the good or service].
18-34          (h) [(f)]  The marketplace may contain:
18-35                (1)  information relevant to the state's standard
18-36    procurement specifications for goods and services;
18-37                (2)  information about vendors, including [information
18-38    from the centralized master bidders list and] vendor performance
18-39    information;
18-40                (3)  information about products, including product
18-41    testing results; and
18-42                (4)  historical purchasing information, qualified
18-43    purchase lists, and trends.
18-44          (i) [(g)]  The commission may require information from a
18-45    state agency for inclusion in the electronic procurement
18-46    marketplace.
18-47                SUBCHAPTER C.  ELECTRONIC COMMERCE NETWORK
18-48          Sec. 2177.101.  EXCEPTIONS.  (a)  This subchapter does not
18-49    apply to procurements for major construction projects, as defined
18-50    by the commission in consultation with the department, such as
18-51    procurements made under Chapter 223, Transportation Code.  In
18-52    defining a major construction project, the commission shall base
18-53    its decision on whether the nature of the project, any related
18-54    contract or specifications, or other considerations are of a type
18-55    that would make electronic procurement inappropriate.
18-56          (b)  The exceptions listed under Section 2166.003(a) apply as
18-57    exceptions to this subchapter.
18-58          Sec. 2177.102 [2177.002].  ELECTRONIC COMMERCE NETWORK.
18-59    (a)  The department, in consultation with the commission, shall
18-60    establish [and manage] an electronic commerce network, to the
18-61    extent feasible, under which the state's purchasing transactions
18-62    with vendors can be accomplished electronically by means of
18-63    facsimile transmissions and on-line transmission of necessary
18-64    information.  The department, in consultation with the commission,
18-65    may adopt rules relating to the design and use of the electronic
18-66    commerce network that concern the technical requirements of the
18-67    network.  The commission, in consultation with the department, may
18-68    adopt rules relating to the use of the network for its intended
18-69    purpose. [The commission shall comply with applicable rules of the
 19-1    Department of Information Resources to the extent that they are
 19-2    based on the standard data protocol developed by the American
 19-3    National Standards Institute known as electronic data interchange
 19-4    or on other efficient standards as determined by the commission.]
 19-5          (b)  The department, in consultation with the commission, may
 19-6    enter into contracts with one or more public or private entities to
 19-7    establish [or support] various elements of the network.  The
 19-8    department, in consultation with the commission, shall procure all
 19-9    goods and services related to the network through the competitive
19-10    selection process appropriate for the good or service being
19-11    acquired.
19-12          (c)  The department, in consultation with the commission, may
19-13    provide for a gateway between the electronic procurement
19-14    marketplace and the electronic commerce network so that the
19-15    elements of a procurement transaction that are within state
19-16    government and the elements of a procurement transaction that
19-17    involve communication with a vendor may all be accomplished
19-18    electronically.
19-19          (d)  When the electronic commerce network becomes fully
19-20    operational, as determined by the department, the commission shall
19-21    assume management and administrative responsibility for the
19-22    network.  The commission, in consultation with the department, may
19-23    enter into contracts with one or more public or private entities to
19-24    maintain or support various elements of the network.
19-25          (e)  Each state agency [that is capable of participating in
19-26    the electronic commerce network] must participate in the network
19-27    and participate in contracts entered into by the department or the
19-28    commission for the establishment or support of the network.  The
19-29    commission shall charge an agency a fee for network services
19-30    provided to the agency by the commission or by a contractor so that
19-31    the cost of providing network services to an agency is paid by the
19-32    agency.
19-33          (f) [(e)]  The commission may allow political subdivisions
19-34    and other public entities that are members of the commission's
19-35    cooperative purchasing program to participate in the electronic
19-36    commerce network.  The commission shall require that a
19-37    participating political subdivision or other entity is charged a
19-38    fee for the network services in the same manner that participating
19-39    state agencies are charged fees under Subsection (e) [(d)].
19-40          (g) [(f)]  The commission may also charge private businesses
19-41    a fee for accessing the network.
19-42          (h) [(g)]  The commission may:
19-43                (1)  adopt rules relating to the management or support
19-44    of the network [to administer this section]; and
19-45                (2)  require participating state agencies, political
19-46    subdivisions, and other public entities to designate a network
19-47    coordinator.
19-48          (i) [(h)]  The requirements of this subchapter [section and
19-49    Section 2177.003] are in addition to the requirements of other law
19-50    relating to the solicitation of bids, proposals, or expressions of
19-51    interest for a procurement by the commission or another state
19-52    agency.  This subchapter does [section and Section 2177.003 do] not
19-53    affect any other law that requires the commission or another state
19-54    agency to award a procurement contract through competitive bidding,
19-55    competitive sealed proposals, or another method.
19-56          Sec. 2177.103 [2177.003].  PARTICIPATION BY STATE AGENCIES IN
19-57    ELECTRONIC COMMERCE NETWORK.  (a)  Each state agency shall send to
19-58    the commission for posting on the electronic commerce network
19-59    information on each procurement contract the commission, in
19-60    consultation with the department, determines is appropriate for
19-61    electronic procurement [the value of which will exceed the amount
19-62    of the agency's delegated purchasing authority under Section
19-63    2155.132]:
19-64                (1)  without regard to the source of funds the agency
19-65    will use for the procurement; and
19-66                (2)  including a procurement that is:
19-67                      (A)  a procurement by a state agency that is
19-68    otherwise exempt from the commission's purchasing authority;
19-69                      (B)  made under delegated purchasing authority
 20-1    under Section 2155.131; or
 20-2                      (C)  [related to a construction project; or]
 20-3                      [(D)]  a procurement of professional or
 20-4    consulting services.
 20-5          (b)  The commission and each state agency shall include in
 20-6    the information placed on the electronic commerce network[, to the
 20-7    extent it is feasible,] the following information for each
 20-8    procurement that the commission will make or that another state
 20-9    agency will make under Subsection (a):
20-10                (1)  a description of the goods or services to be
20-11    procured;
20-12                (2)  the estimated quantity of the goods or services to
20-13    be procured;
20-14                (3)  if applicable, the previous price paid by the
20-15    commission or another state agency for the same or similar goods or
20-16    services;
20-17                (4)  the estimated date on which the goods or services
20-18    to be procured will be needed; and
20-19                (5)  the name, business mailing address, and business
20-20    telephone number of the commission employee or other state agency
20-21    employee a person can contact to obtain all necessary information
20-22    relating to making a bid or proposal or other applicable expression
20-23    of interest for the procurement contract.
20-24          (c)  The commission shall also post on the electronic
20-25    commerce network other information relating to the business
20-26    activity of the state that the commission considers to be of
20-27    interest to the public.  Each state agency shall provide the
20-28    commission with information the commission requires for purposes of
20-29    this subsection in a format prescribed by the commission.
20-30          (d)  Each state agency that will award a contract that has
20-31    been placed on the electronic commerce network under Subsection (a)
20-32    shall place notification of the awarding of the contract on the
20-33    electronic commerce network.
20-34          SECTION 6.07.  Subsection (b), Section 2155.083, Government
20-35    Code, is repealed.
20-36          SECTION 6.08.  On September 1, 2001:
20-37                (1)  all functions and activities performed by the
20-38    General Services Commission relating to the establishment of the
20-39    electronic procurement marketplace or the electronic commerce
20-40    network under Chapter 2177, Government Code, immediately before
20-41    that date are transferred to the Department of Information
20-42    Resources;
20-43                (2)  a rule or form adopted by the General Services
20-44    Commission that relates to the establishment of the electronic
20-45    procurement marketplace or the electronic commerce network under
20-46    Chapter 2177, Government Code, is a rule or form of the Department
20-47    of Information Resources and remains in effect until changed by the
20-48    department;
20-49                (3)  a reference in law to the General Services
20-50    Commission that relates to the establishment of the electronic
20-51    procurement marketplace or the electronic commerce network under
20-52    Chapter 2177, Government Code, means the Department of Information
20-53    Resources;
20-54                (4)  a contract negotiation or other proceeding
20-55    involving the General Services Commission that is related to the
20-56    establishment of the electronic procurement marketplace or the
20-57    electronic commerce network under Chapter 2177, Government Code, is
20-58    transferred without change in status to the Department of
20-59    Information Resources, and the Department of Information Resources
20-60    assumes, without a change in status, the position of the General
20-61    Services Commission in the negotiation or proceeding to which the
20-62    General Services Commission is a party;
20-63                (5)  all money, contracts, leases, rights, and
20-64    obligations of the General Services Commission related to the
20-65    establishment of the electronic procurement marketplace or the
20-66    electronic commerce network under Chapter 2177, Government Code,
20-67    are transferred to the Department of Information Resources;
20-68                (6)  all property, including records, in the custody of
20-69    the General Services Commission related to the establishment of the
 21-1    electronic procurement marketplace or the electronic commerce
 21-2    network under Chapter 2177, Government Code, is transferred to the
 21-3    Department of Information Resources; and
 21-4                (7)  all funds appropriated by the legislature to the
 21-5    General Services Commission related to the establishment of the
 21-6    electronic procurement marketplace or the electronic commerce
 21-7    network under Chapter 2177, Government Code, are transferred to the
 21-8    Department of Information Resources.
 21-9          SECTION 6.09.  The General Services Commission and the
21-10    Department of Information Resources shall work together to
21-11    administer the transfer prescribed by this article and to ensure
21-12    that the personnel of the General Services Commission who primarily
21-13    perform duties related to the establishment of the electronic
21-14    procurement marketplace or the electronic commerce network under
21-15    Chapter 2177, Government Code, are loaned to the Department of
21-16    Information Resources until the electronic procurement marketplace
21-17    and the electronic commerce network under Chapter 2177, Government
21-18    Code, become fully operational as determined by the Department of
21-19    Information Resources.
21-20          SECTION 6.10.  Once the electronic procurement marketplace
21-21    and the electronic commerce network under Chapter 2177, Government
21-22    Code, as amended by this Act, become fully operational as
21-23    determined by the Department of Information Resources, all funds,
21-24    obligations, contracts, property, and records of the Department of
21-25    Information Resources related to the marketplace and network become
21-26    the funds, obligations, contracts, property, and records of the
21-27    General Services Commission.
21-28          SECTION 6.11.  Once the online reservation and ticketing
21-29    system under Chapter 2171, Government Code, as amended by this Act,
21-30    becomes fully operational as determined by the Department of
21-31    Information Resources, all funds, obligations, contracts, property,
21-32    and records of the Department of Information Resources related to
21-33    the system become the funds, obligations, contracts, property, and
21-34    records of the General Services Commission.
21-35          SECTION 6.12.  On September 1, 2001:
21-36                (1)  all functions and activities performed by the
21-37    Texas Department of Economic Development relating to the business
21-38    daily under Chapter 2155, Government Code, or other law immediately
21-39    before that date are transferred to the General Services
21-40    Commission;
21-41                (2)  a rule or form adopted by the Texas Department of
21-42    Economic Development that relates to the business daily under
21-43    Chapter 2155, Government Code, or other law is a rule or form of
21-44    the General Services Commission and remains in effect until altered
21-45    by the commission;
21-46                (3)  a reference in law to the Texas Department of
21-47    Economic Development that relates to the business daily under
21-48    Chapter 2155, Government Code, or other law means the General
21-49    Services Commission;
21-50                (4)  all rights and obligations of the Texas Department
21-51    of Economic Development related to the business daily under Chapter
21-52    2155, Government Code, or other law are transferred to the General
21-53    Services Commission; and
21-54                (5)  all property, including records, in the custody of
21-55    the Texas Department of Economic Development related to the
21-56    business daily under Chapter 2155, Government Code, or other law is
21-57    transferred to the General Services Commission.
21-58          SECTION 6.13.  The Department of Information Resources shall
21-59    have the online reservation and ticketing system created under
21-60    Section 2171.0521, Government Code, as added by this Act, fully
21-61    operational by September 1, 2002.
21-62                        ARTICLE 7.  STATE CEMETERY
21-63          SECTION 7.01.  Subsection (a), Section 2165.256, Government
21-64    Code, is amended to read as follows:
21-65          (a)  The State Cemetery Committee shall oversee all
21-66    operations of the State Cemetery.  The committee shall develop a
21-67    budget for the operations of the commission relating to the State
21-68    Cemetery and determine the salary of employees of the commission
21-69    whose duties primarily relate to the operation of the State
 22-1    Cemetery.
 22-2          SECTION 7.02.  Section 2165.2561, Government Code, is amended
 22-3    by amending Subsection (k) and adding Subsections (n) through (u)
 22-4    to read as follows:
 22-5          (k)  The legislature shall separately appropriate money to
 22-6    the committee within the appropriations to the General Services
 22-7    Commission for all matters relating to the operation of the State
 22-8    Cemetery.  [At the direction of the committee, the General Services
 22-9    Commission shall spend money appropriated to or budgeted by the
22-10    General Services Commission for State Cemetery purposes.]
22-11    Activities relating to maintenance of the State Cemetery grounds
22-12    and monuments shall conform to guidelines for historic preservation
22-13    submitted to the committee by the Texas Historical Commission.
22-14          (n)  It is a ground for removal from the committee that a
22-15    member:
22-16                (1)  does not have at the time of taking office the
22-17    qualifications required by Subsection (a);
22-18                (2)  does not maintain during service on the committee
22-19    the qualifications required by Subsection (a);
22-20                (3)  is ineligible for membership under Subsection (g)
22-21    or (h);
22-22                (4)  cannot, because of illness or disability,
22-23    discharge the member's duties for a substantial part of the
22-24    member's term; or
22-25                (5)  is absent from more than half of the regularly
22-26    scheduled committee meetings that the member is eligible to attend
22-27    during a calendar year without an excuse approved by a majority
22-28    vote of the committee.
22-29          (o)  The validity of an action of the committee is not
22-30    affected by the fact that it is taken when a ground for removal of
22-31    a committee member exists.
22-32          (p)  If the executive director of the commission has
22-33    knowledge that a potential ground for removal exists, the executive
22-34    director shall notify the presiding officer of the committee of the
22-35    potential ground.  The presiding officer shall then notify the
22-36    governor and the attorney general that a potential ground for
22-37    removal exists.  If the potential ground for removal involves the
22-38    presiding officer, the executive director shall notify the next
22-39    highest ranking officer of the committee, who shall then notify the
22-40    governor and the attorney general that a potential ground for
22-41    removal exists.
22-42          (q)  The executive director of the commission or the
22-43    executive director's designee shall provide to members of the
22-44    committee, as often as necessary, information regarding the
22-45    requirements for office under this chapter, including information
22-46    regarding a person's responsibilities under applicable laws
22-47    relating to standards of conduct for state officers.
22-48          (r)  A person who is appointed to and qualifies for office as
22-49    a member of the committee may not vote, deliberate, or be counted
22-50    as a member in attendance at a meeting of the committee until the
22-51    person completes a training program that complies with this
22-52    subsection.  The training program must provide the person with
22-53    information regarding:
22-54                (1)  the legislation that created the State Cemetery
22-55    and the State Cemetery Committee;
22-56                (2)  the programs operated by the committee;
22-57                (3)  the role and functions of the committee;
22-58                (4)  the rules of the committee, with an emphasis on
22-59    any rules that relate to disciplinary and investigatory authority;
22-60                (5)  the current budget for the committee;
22-61                (6)  the results of the most recent formal audit of
22-62    cemetery operations;
22-63                (7)  the requirements of:
22-64                      (A)  the open meetings law, Chapter 551;
22-65                      (B)  the public information law, Chapter 552;
22-66                      (C)  the administrative procedure law, Chapter
22-67    2001; and
22-68                      (D)  other laws relating to public officials,
22-69    including conflict-of-interest laws; and
 23-1                (8)  any applicable ethics policies adopted by the
 23-2    commission, the committee, or the Texas Ethics Commission.
 23-3          (s)  A person appointed to the committee is entitled to
 23-4    reimbursement, as provided by Chapter 660 and the General
 23-5    Appropriations Act, for the travel expenses incurred in attending
 23-6    the training program regardless of whether the attendance at the
 23-7    program occurs before or after the person qualifies for office.
 23-8          (t)  The committee shall develop and implement policies that
 23-9    clearly separate the policymaking responsibilities of the committee
23-10    and the management responsibilities of the executive director of
23-11    the commission and staff of the cemetery.
23-12          (u)  The committee shall develop and implement policies that
23-13    provide the public with a reasonable opportunity to appear before
23-14    the committee and to speak on any issue under the jurisdiction of
23-15    the committee.
23-16          SECTION 7.03.  (a)  The changes in law made by this Act in
23-17    the prohibitions and qualifications applying to members of the
23-18    State Cemetery Committee do not affect the entitlement of a member
23-19    serving on the committee immediately before September 1, 2001, to
23-20    continue to serve and function as a member of the committee for the
23-21    remainder of the member's term.  The changes in law apply only to a
23-22    member appointed on or after September 1, 2001.  This Act does not
23-23    prohibit a person who is a member of the State Cemetery Committee
23-24    immediately before September 1, 2001, from being reappointed as a
23-25    committee member if the person has the qualifications required for
23-26    the position under Chapter 2165, Government Code, as amended by
23-27    this Act.
23-28          (b)  Subsection (r), Section 2165.2561, Government Code, as
23-29    added by this Act, does not apply to a member of the State Cemetery
23-30    Committee until March 1, 2002.
23-31          SECTION 7.04.  The changes in law made by this Act to the
23-32    State Cemetery's appropriations process apply in relation to the
23-33    fiscal biennium beginning on September 1, 2003.
23-34             ARTICLE 8.  CONTRACTING METHODS FOR CONSTRUCTION
23-35                            OF STATE FACILITIES
23-36          SECTION 8.01.  Subchapter F, Chapter 2166, Government Code,
23-37    is amended by adding Section 2166.2511 to read as follows:
23-38          Sec. 2166.2511.  DEFINITIONS.  In this subchapter:
23-39                (1)  "Architect" means an individual registered as an
23-40    architect under Chapter 478, Acts of the 45th Legislature, Regular
23-41    Session, 1937 (Article 249a, Vernon's Texas Civil Statutes).
23-42                (2)  "Contractor" in the context of a contract for a
23-43    project means a sole proprietorship, partnership, corporation, or
23-44    other legal entity that assumes the risk for constructing,
23-45    rehabilitating, altering, or repairing all or part of the project
23-46    at the contracted price.
23-47                (3)  "Engineer" means an individual registered as a
23-48    professional engineer under The Texas Engineering Practice Act
23-49    (Article 3271a, Vernon's Texas Civil Statutes).
23-50                (4)  "Facility" means real property, including
23-51    buildings and associated structures and improved or unimproved
23-52    land.
23-53                (5)  "Fee" in the context of a contract for a project
23-54    means the payment a construction manager receives for its overhead
23-55    and profit in performing its services.
23-56                (6)  "General conditions" in the context of a contract
23-57    for a project means on-site management, administrative personnel,
23-58    insurance, bonds, equipment, utilities, and incidental work,
23-59    including minor field labor and materials.
23-60          SECTION 8.02.  Subchapter F, Chapter 2166, Government Code,
23-61    is amended by adding Section 2166.2525 to read as follows:
23-62          Sec. 2166.2525.  DETERMINATION OF CONTRACTING METHOD.  The
23-63    commission shall adopt rules that determine the circumstances for
23-64    use of each method of contracting allowed under this subchapter for
23-65    design and construction services.  In developing the rules, the
23-66    commission shall solicit advice and comment from design and
23-67    construction professionals regarding the criteria the commission
23-68    will use in determining which contracting method is best suited for
23-69    a project.
 24-1          SECTION 8.03.  Subchapter F, Chapter 2166, Government Code,
 24-2    is amended by adding Section 2166.2526 to read as follows:
 24-3          Sec. 2166.2526.  EVALUATION OF BIDS AND PROPOSALS FOR
 24-4    CONSTRUCTION SERVICES.  (a)  For each project, the commission must,
 24-5    before advertising, establish which method of contracting provides
 24-6    the best value for the commission or using agency.
 24-7          (b)  Under each method of contracting, the commission shall
 24-8    base its selection among the offerors on criteria established by
 24-9    the commission.  The commission shall publish in the request for
24-10    bids, proposals, or qualifications all of the criteria that will be
24-11    used to evaluate the offerors.
24-12          (c)  The commission shall document the basis of its selection
24-13    of an offeror and shall make the evaluations public not later than
24-14    the seventh day after the date the contract is awarded.
24-15          SECTION 8.04.  Section 2166.253, Government Code, is amended
24-16    to read as follows:
24-17          Sec. 2166.253.  LOWEST AND BEST BID METHOD [BIDDING
24-18    PROCEDURES].  (a)  The commission may use the lowest and best bid
24-19    method for a project.  In using that method, the commission shall
24-20    follow the procedures provided by Subsections (b)-(g).
24-21          (b)  After final approval of a project's working plans and
24-22    specifications and their acceptance by a using agency, the
24-23    commission shall advertise in one newspaper of general circulation
24-24    and the Texas Register for bids or proposals for the construction
24-25    of and related work on the project.
24-26          (c) [(b)]  Except as provided by Subsection (d) [(c)], the
24-27    commission shall allow bidders not less than 30 days after the date
24-28    the commission issues the bid documents to respond to an invitation
24-29    to bid.
24-30          (d) [(c)]  The commission shall allow bidders for small
24-31    construction projects not less than 14 days after the date the
24-32    commission issues the bid documents to respond to an invitation to
24-33    bid.
24-34          (e) [(d)]  The commission may shorten the time for response
24-35    to prevent undue additional costs to a state agency or, for
24-36    emergency projects, to prevent or remove a hazard to life or
24-37    property.
24-38          (f)  A contract shall be awarded to the qualified bidder
24-39    making the lowest and best bid in accordance with the law on
24-40    awarding a state contract.
24-41          (g)  The commission may reject all bids.
24-42          SECTION 8.05.  Subchapter F, Chapter 2166, Government Code,
24-43    is amended by adding Section 2166.2531 to read as follows:
24-44          Sec. 2166.2531.  DESIGN-BUILD METHOD.  (a)  In this section:
24-45                (1)  "Design-build contract" means a single contract
24-46    with a design-build firm for the design and construction of a
24-47    facility.
24-48                (2)  "Design-build firm" means a partnership,
24-49    corporation, or other legal entity or team that includes an
24-50    engineer or architect and a builder qualified to engage in building
24-51    construction in this state.
24-52                (3)  "Design criteria package" means a set of documents
24-53    that provides sufficient information to permit a design-build firm
24-54    to prepare a response to the commission's request for
24-55    qualifications and any additional information requested, including
24-56    criteria for selection.  The design criteria package must specify
24-57    criteria the commission considers necessary to describe the project
24-58    and may include, as appropriate, the legal description of the site,
24-59    survey information concerning the site, interior space
24-60    requirements, special material requirements, material quality
24-61    standards, conceptual criteria for the project, special equipment
24-62    requirements, cost or budget estimates, time schedules, quality
24-63    assurance and quality control requirements, site development
24-64    requirements, applicable codes and ordinances, provisions for
24-65    utilities, parking requirements, or any other requirement, as
24-66    applicable.
24-67          (b)  The commission may use the design-build method for a
24-68    project.  In using that method and in entering into a contract for
24-69    the services of a design-build firm, the commission and the
 25-1    design-build firm shall follow the procedures provided by
 25-2    Subsections (c)-(k).
 25-3          (c)  The commission may designate an engineer or architect to
 25-4    act as its representative.  If the commission's engineer or
 25-5    architect is not a full-time employee of the commission, any
 25-6    engineer or architect designated shall be selected on the basis of
 25-7    demonstrated competence and qualifications in accordance with
 25-8    Subchapter A, Chapter 2254.
 25-9          (d)  The commission shall prepare a request for
25-10    qualifications that includes general information on the project
25-11    site, project scope, budget, special systems, selection criteria,
25-12    and other information that may assist potential design-build firms
25-13    in submitting proposals for the project.  The commission shall also
25-14    prepare a design criteria package that includes more detailed
25-15    information on the project.  If the preparation of the design
25-16    criteria package requires engineering or architectural services
25-17    that constitute the practice of engineering within the meaning of
25-18    The Texas Engineering Practice Act (Article 3271a, Vernon's Texas
25-19    Civil Statutes) or the practice of architecture within the meaning
25-20    of Chapter 478, Acts of the 45th Legislature, Regular Session, 1937
25-21    (Article 249a, Vernon's Texas Civil Statutes), those services shall
25-22    be provided in accordance with the applicable law.
25-23          (e)  The commission or its representative shall publish the
25-24    request for qualifications in a manner prescribed by the
25-25    commission.
25-26          (f)(1)  The commission or its representative shall evaluate
25-27    statements of qualifications and select a design-build firm in two
25-28    phases.
25-29                (2)  In phase one, the commission or its representative
25-30    shall prepare a request for qualifications and evaluate each
25-31    offeror's experience, technical competence, and capability to
25-32    perform, the past performance of the offeror's team and members of
25-33    the team, and other appropriate factors submitted by the team or
25-34    firm in response to the request for qualifications, except that
25-35    cost-related or price-related evaluation factors are not permitted.
25-36    Each offeror must certify to the commission that each engineer or
25-37    architect that is a member of its team was selected based on
25-38    demonstrated competence and qualifications.  The commission or its
25-39    representative shall qualify a maximum of five offerors to submit
25-40    additional information and, if the commission or its representative
25-41    chooses, to interview for final selection.
25-42                (3)  In phase two, the commission or its representative
25-43    shall evaluate the information submitted by the offerors on the
25-44    basis of the selection criteria stated in the request for
25-45    qualifications and the results of any interview.  The commission or
25-46    its representative may request additional information regarding
25-47    demonstrated competence and qualifications, considerations of the
25-48    safety and long-term durability of the project, the feasibility of
25-49    implementing the project as proposed, the ability of the offeror to
25-50    meet schedules, costing methodology, or other factors as
25-51    appropriate.  The commission or its representative may not require
25-52    offerors to submit detailed engineering or architectural designs as
25-53    part of the proposal.  The commission or its representative shall
25-54    rank each proposal submitted on the basis of the criteria specified
25-55    in the request for qualifications.  The commission or its
25-56    representative shall select the design-build firm that submits the
25-57    proposal offering the best value for the commission or using agency
25-58    on the basis of the published selection criteria and on its ranking
25-59    evaluations.  The commission or its representative shall first
25-60    attempt to negotiate a contract with the selected offeror.  If the
25-61    commission or its representative is unable to negotiate a
25-62    satisfactory contract with the selected offeror, the commission
25-63    shall, formally and in writing, end all negotiations with that
25-64    offeror and proceed to negotiate with the next offeror in the order
25-65    of the selection ranking until a contract is reached or
25-66    negotiations with all ranked offerors end.
25-67          (g)  Following selection of a design-build firm under
25-68    Subsection (f), that firm's engineers or architects shall complete
25-69    the design, submitting all design elements for review and
 26-1    determination of scope compliance by the commission's engineer or
 26-2    architect before or concurrently with the beginning of
 26-3    construction.
 26-4          (h)  An engineer shall have responsibility for compliance
 26-5    with the engineering design requirements and all other applicable
 26-6    requirements of The Texas Engineering Practice Act (Article 3271a,
 26-7    Vernon's Texas Civil Statutes).  An architect shall have
 26-8    responsibility for compliance with the requirements of Chapter 478,
 26-9    Acts of the 45th Legislature, Regular Session, 1937 (Article 249a,
26-10    Vernon's Texas Civil Statutes).
26-11          (i)  The commission shall provide or contract for,
26-12    independently of the design-build firm, the inspection services,
26-13    the testing of construction materials engineering, and the
26-14    verification testing services necessary for acceptance of the
26-15    facility by the commission.  The commission shall select those
26-16    services for which it contracts in accordance with Section
26-17    2254.004.
26-18          (j)  The design-build firm shall supply a signed and sealed
26-19    set of construction documents for the project to the commission at
26-20    the conclusion of construction.
26-21          (k)  A payment or performance bond is not required for, and
26-22    may not provide coverage for, the portion of a design-build
26-23    contract under this section that includes design services only.  If
26-24    a fixed contract amount or guaranteed maximum price has not been
26-25    determined at the time a design-build contract is awarded, the
26-26    penal sums of the performance and payment bonds delivered to the
26-27    commission shall each be in an amount equal to the project budget,
26-28    as specified in the design criteria package.  The design-build firm
26-29    shall deliver the bonds not later than the 10th day after the date
26-30    the design-build firm executes the contract unless the design-build
26-31    firm furnishes a bid bond or other financial security acceptable to
26-32    the commission to ensure that the design-build firm will furnish
26-33    the required performance and payment bonds when a guaranteed
26-34    maximum price is established.
26-35          SECTION 8.06.  Subchapter F, Chapter 2166, Government Code,
26-36    is amended by adding Section 2166.2532 to read as follows:
26-37          Sec. 2166.2532.  CONSTRUCTION MANAGER-AT-RISK METHOD.
26-38    (a)  The commission may use the construction manager-at-risk method
26-39    for a project.  In using that method and in entering into a
26-40    contract for the services of a construction manager-at-risk, the
26-41    commission shall follow the procedures prescribed by this section.
26-42          (b)  A construction manager-at-risk is a sole proprietorship,
26-43    partnership, corporation, or other legal entity that assumes the
26-44    risk for construction, rehabilitation, alteration, or repair of a
26-45    facility at the contracted price as a general contractor and
26-46    provides consultation to the commission regarding construction
26-47    during and after the design of the facility.
26-48          (c)  Before or concurrently with selecting a construction
26-49    manager-at-risk, the commission shall select or designate an
26-50    engineer or architect who shall prepare the construction documents
26-51    for the project and who has full responsibility for complying with
26-52    The Texas Engineering Practice Act (Article 3271a, Vernon's Texas
26-53    Civil Statutes) or Chapter 478, Acts of the 45th Legislature,
26-54    Regular Session, 1937 (Article 249a, Vernon's Texas Civil
26-55    Statutes), as applicable.  If the engineer or architect is not a
26-56    full-time employee of the commission, the commission shall select
26-57    the engineer or architect on the basis of demonstrated competence
26-58    and qualifications as provided by Section 2254.004.  The
26-59    commission's engineer or architect for a project may not serve,
26-60    alone or in combination with another, as the construction
26-61    manager-at-risk.
26-62          (d)  The commission shall provide or contract for,
26-63    independently of the construction manager-at-risk, the inspection
26-64    services, the testing of construction materials engineering, and
26-65    the verification testing services necessary for acceptance of the
26-66    facility by the commission.  The commission shall select those
26-67    services for which it contracts in accordance with Section
26-68    2254.004.
26-69          (e)  The commission shall select the construction
 27-1    manager-at-risk in either a one-step or two-step process.  The
 27-2    commission shall prepare a request for proposals, in the case of a
 27-3    one-step process, or a request for qualifications, in the case of a
 27-4    two-step process, that includes general information on the project
 27-5    site, project scope, schedule, selection criteria, estimated
 27-6    budget, and the time and place for receipt of proposals or
 27-7    qualifications, as applicable; a statement as to whether the
 27-8    selection process is a one-step or two-step process; and other
 27-9    information that may assist the commission in its selection of a
27-10    construction manager-at-risk.  The commission shall state the
27-11    selection criteria in the request for proposals or qualifications,
27-12    as applicable.  The selection criteria may include the offeror's
27-13    experience, past performance, safety record, proposed personnel and
27-14    methodology, and other appropriate factors that demonstrate the
27-15    capability of the construction manager-at-risk.  If a one-step
27-16    process is used, the commission may request, as part of the
27-17    offeror's proposal, proposed fees and prices for fulfilling the
27-18    general conditions.  If a two-step process is used, the commission
27-19    may not request fees or prices in step one.  In step two, the
27-20    commission may request that five or fewer offerors, selected solely
27-21    on the basis of qualifications, provide additional information,
27-22    including the construction manager-at-risk's proposed fee and its
27-23    price for fulfilling the general conditions.
27-24          (f)  The commission shall publish the request for
27-25    qualifications in a manner prescribed by the commission.
27-26          (g)  At each step, the commission shall receive, publicly
27-27    open, and read aloud the names of the offerors.  At the appropriate
27-28    step, the commission shall also read aloud the fees and prices, if
27-29    any, stated in each proposal as the proposal is opened.  Within 45
27-30    days after the date of opening the proposals, the commission or its
27-31    representative shall evaluate and rank each proposal submitted in
27-32    relation to the criteria set forth in the request for proposals.
27-33          (h)  The commission or its representative shall select the
27-34    offeror that submits the proposal that offers the best value for
27-35    the commission or using agency based on the published selection
27-36    criteria and on its ranking evaluation.  The commission or its
27-37    representative shall first attempt to negotiate a contract with the
27-38    selected offeror.  If the commission or its representative is
27-39    unable to negotiate a satisfactory contract with the selected
27-40    offeror, the commission or its representative shall, formally and
27-41    in writing, end negotiations with that offeror and proceed to
27-42    negotiate with the next offeror in the order of the selection
27-43    ranking until a contract is reached or negotiations with all ranked
27-44    offerors end.
27-45          (i)  A construction manager-at-risk shall publicly advertise,
27-46    in the manner prescribed by the commission, and receive bids or
27-47    proposals from trade contractors or subcontractors for the
27-48    performance of all major elements of the work other than the minor
27-49    work that may be included in the general conditions.  A
27-50    construction manager-at-risk may seek to perform portions of the
27-51    work itself if the construction manager-at-risk submits its bid or
27-52    proposal for those portions of the work in the same manner as all
27-53    other trade contractors or subcontractors and if the commission
27-54    determines that the construction manager-at-risk's bid or proposal
27-55    provides the best value for the commission or using agency.
27-56          (j)  The construction manager-at-risk and the commission or
27-57    its representative shall review all trade contractor or
27-58    subcontractor bids or proposals in a manner that does not disclose
27-59    the contents of the bid or proposal during the selection process to
27-60    a person not employed by the construction manager-at-risk,
27-61    engineer, architect, or commission.  All bids or proposals shall be
27-62    made public after the award of the contract or within seven days
27-63    after the date of final selection of bids and proposals, whichever
27-64    is later.
27-65          (k)  If the construction manager-at-risk reviews, evaluates,
27-66    and recommends to the commission a bid or proposal from a trade
27-67    contractor or subcontractor but the commission requires another bid
27-68    or proposal to be accepted, the commission shall compensate the
27-69    construction manager-at-risk by a change in price, time, or
 28-1    guaranteed maximum cost for any additional cost and risk that the
 28-2    construction manager-at-risk may incur because of the commission's
 28-3    requirement that another bid or proposal be accepted.
 28-4          (l)  If a selected trade contractor or subcontractor defaults
 28-5    in the performance of its work or fails to execute a subcontract
 28-6    after being selected in accordance with this section, the
 28-7    construction manager-at-risk may, without advertising, itself
 28-8    fulfill the contract requirements or select a replacement trade
 28-9    contractor or subcontractor to fulfill the contract requirements.
28-10          (m)  If a fixed contract amount or guaranteed maximum price
28-11    has not been determined at the time the contract is awarded, the
28-12    penal sums of the performance and payment bonds delivered to the
28-13    commission must each be in an amount equal to the project budget,
28-14    as set forth in the request for qualifications.  The construction
28-15    manager-at-risk shall deliver the bonds not later than the 10th day
28-16    after the date the construction manager-at-risk executes the
28-17    contract unless the construction manager-at-risk furnishes a bid
28-18    bond or other financial security acceptable to the commission to
28-19    ensure that the construction manager-at-risk will furnish the
28-20    required performance and payment bonds when a guaranteed maximum
28-21    price is established.
28-22          SECTION 8.07.  Subchapter F, Chapter 2166, Government Code,
28-23    is amended by adding Section 2166.2533 to read as follows:
28-24          Sec. 2166.2533.  COMPETITIVE SEALED PROPOSAL METHOD.
28-25    (a)  The commission may select a contractor for a project using the
28-26    competitive sealed proposal method prescribed by this section.
28-27          (b)  The commission shall select or designate an engineer or
28-28    architect to prepare construction documents for the project.  The
28-29    selected or designated engineer or architect has full
28-30    responsibility for complying with The Texas Engineering Practice
28-31    Act (Article 3271a, Vernon's Texas Civil Statutes) or Chapter 478,
28-32    Acts of the 45th Legislature, Regular Session, 1937 (Article 249a,
28-33    Vernon's Texas Civil Statutes), as applicable.  If the engineer or
28-34    architect is not a full-time employee of the commission, the
28-35    commission shall select the engineer or architect on the basis of
28-36    demonstrated competence and qualifications as provided by Section
28-37    2254.004.
28-38          (c)  The commission shall provide or contract for,
28-39    independently of the contractor, the inspection services, the
28-40    testing of construction materials engineering, and the verification
28-41    testing services necessary for acceptance of the facility by the
28-42    commission.  The commission shall select those services for which
28-43    it contracts in accordance with Section 2254.004 and shall identify
28-44    them in the request for proposals.
28-45          (d)  The commission shall prepare a request for competitive
28-46    sealed proposals that includes construction documents, selection
28-47    criteria, estimated budget, project scope, schedule, and other
28-48    information that contractors may require to respond to the request.
28-49    The commission shall state in the request for proposals all of the
28-50    selection criteria that will be used in selecting the successful
28-51    offeror.
28-52          (e)  The commission shall publish notice of the request for
28-53    proposals in a manner prescribed by the commission.
28-54          (f)  The commission shall receive, publicly open, and read
28-55    aloud the names of the offerors and, if any are required to be
28-56    stated, all prices stated in each proposal.  Within 45 days after
28-57    the date of opening the proposals, the commission shall evaluate
28-58    and rank each proposal submitted in relation to the published
28-59    selection criteria.
28-60          (g)  The commission shall select the offeror that offers the
28-61    best value for the commission or using agency based on the
28-62    published selection criteria and on its ranking evaluation.  The
28-63    commission shall first attempt to negotiate a contract with the
28-64    selected offeror.  The commission and its engineer or architect may
28-65    discuss with the selected offeror options for a scope or time
28-66    modification and any price change associated with the modification.
28-67    If the commission is unable to reach a contract with the selected
28-68    offeror, the commission shall, formally and in writing, end
28-69    negotiations with that offeror and proceed to the next offeror in
 29-1    the order of the selection ranking until a contract is reached or
 29-2    all proposals are rejected.
 29-3          (h)  In determining the best value for the commission or
 29-4    using agency, the commission is not restricted to considering price
 29-5    alone but may consider any other factor stated in the selection
 29-6    criteria.
 29-7          SECTION 8.08.  Section 2166.255, Government Code, is amended
 29-8    to read as follows:
 29-9          Sec. 2166.255.  AMOUNT [AWARD] OF CONTRACT.  [(a)  A contract
29-10    shall be awarded to the qualified bidder making the lowest and best
29-11    bid in accordance with the law on awarding a state contract.]
29-12          [(b)  The commission may reject all bids.]
29-13          [(c)]  A contract may not be awarded for an amount greater
29-14    than the amount that the comptroller certifies to be available for
29-15    the project.
29-16          SECTION 8.09.  (a)  The changes in law made by this Act to
29-17    the General Services Commission's contract procedures apply only to
29-18    a construction project for which the General Services Commission
29-19    first advertises or otherwise solicits bids, proposals, offers, or
29-20    qualifications, as applicable, on or after September 1, 2001.
29-21          (b)  A construction project for which the General Services
29-22    Commission first advertised or otherwise solicited bids, proposals,
29-23    offers, or qualifications, as applicable, before September 1, 2001,
29-24    is governed by the law as it existed immediately before the
29-25    effective date of this Act, and that law is continued in effect for
29-26    that purpose.
29-27                 ARTICLE 9.  LEASING OF STATE OFFICE SPACE
29-28          SECTION 9.01.  Subchapter A, Chapter 2167, Government Code,
29-29    is amended by adding Section 2167.0021 to read as follows:
29-30          Sec. 2167.0021.  BEST VALUE STANDARD FOR LEASE OF SPACE.
29-31    (a)  The commission shall lease space for the use of a state agency
29-32    on the basis of obtaining the best value for the state.
29-33          (b)  The commission shall adopt rules establishing guidelines
29-34    for the determination of best value in a lease contract.  In
29-35    determining the best value, the commission may consider:
29-36                (1)  the cost of the lease contract;
29-37                (2)  the condition and location of lease space;
29-38                (3)  utility costs;
29-39                (4)  access to public transportation;
29-40                (5)  parking availability;
29-41                (6)  security;
29-42                (7)  telephone service availability;
29-43                (8)  indicators of probable lessor performance under
29-44    the contract, such as the lessor's financial resources and the
29-45    lessor's experience;
29-46                (9)  compliance with the architectural barriers law,
29-47    Article 9102, Revised Statutes; and
29-48                (10)  other relevant factors.
29-49          (c)  This section does not prohibit the commission from
29-50    leasing space from the offeror that offers the space at the lowest
29-51    cost if the commission determines that doing so obtains the best
29-52    value for the state.
29-53          SECTION 9.02.  Section 2167.003, Government Code, is amended
29-54    to read as follows:
29-55          Sec. 2167.003.  FIRST CONSIDERATION TO HISTORIC STRUCTURE.
29-56    (a)  In leasing space for the use of a state agency, the commission
29-57    or the private brokerage or real estate firm assisting the
29-58    commission shall give first consideration to a building that is
29-59    designated as a historic structure under Section 442.001 or to a
29-60    building that has been designated a landmark by a local governing
29-61    authority, if:
29-62                (1)  the building meets requirements and
29-63    specifications; and
29-64                (2)  the cost is not substantially higher than the cost
29-65    for other available buildings that meet requirements and
29-66    specifications.
29-67          (b)  When it considers leasing space for a state agency, the
29-68    commission or the private brokerage or real estate firm assisting
29-69    the commission shall notify each individual and organization that
 30-1    is:
 30-2                (1)  on a list furnished to the commission by the Texas
 30-3    Historical Commission under Section 442.005; and
 30-4                (2)  in the county in which the commission is
 30-5    considering leasing space.
 30-6          (c)  At the end of a biennium, the commission shall report to
 30-7    the legislature the commission's reasons for rejecting during the
 30-8    biennium the lease of any historic structure that was offered as
 30-9    [in a bid to] lease space to the state.
30-10          SECTION 9.03.  Section 2167.005, Government Code, is amended
30-11    to read as follows:
30-12          Sec. 2167.005.  DELEGATION OF AUTHORITY TO STATE AGENCIES
30-13    [INSTITUTIONS OF HIGHER EDUCATION].  (a)  The commission may
30-14    delegate to a state agency, including an institution of higher
30-15    education, the authority to enter into lease contracts for space
30-16    [for which payments are not made from money appropriated from the
30-17    general revenue fund].
30-18          (b)  Any reports on the lease contracts made [by an
30-19    institution of higher education] under this delegated authority
30-20    shall be required annually.
30-21          SECTION 9.04.  Subsection (b), Section 2167.006, Government
30-22    Code, is amended to read as follows:
30-23          (b)  A state agency, including an [An] institution of higher
30-24    education, may not enter a lease contract under Section 2167.005
30-25    unless the agency [institution] complies with the architectural
30-26    barriers law, Article 9102, Revised Statutes.
30-27          SECTION 9.05.  Section 2167.052, Government Code, is amended
30-28    by amending Subsection (a) and adding Subsection (c) to read as
30-29    follows:
30-30          (a)  Space may be leased from a private source through:
30-31                (1)  competitive bidding; [or]
30-32                (2)  competitive sealed proposals under Section
30-33    2167.054; or
30-34                (3)  direct negotiation.
30-35          (c)  The commission shall use the method for leasing space
30-36    that provides the best value for the state.
30-37          SECTION 9.06.  Subsections (a) and (c), Section 2167.053,
30-38    Government Code, are amended to read as follows:
30-39          (a)  When space is leased through competitive bidding, the
30-40    commission shall determine the [lowest and best] bid that provides
30-41    the best value for the state after considering moving costs, the
30-42    cost of time lost in moving, the cost of telecommunications
30-43    services, and other relevant factors.
30-44          (c)  If, after review of the bids and evaluation of all
30-45    relevant factors, the leasing state agency's opinion is that the
30-46    bid selected by the commission is not the [lowest and best] bid
30-47    that provides the best value for the state, it may file with the
30-48    commission a written recommendation that the award be made to a
30-49    bidder other than the commission's recommended bidder.  The leasing
30-50    state agency's recommendation must contain the agency's
30-51    justification for its recommendation and a complete explanation of
30-52    all factors it considered.
30-53          SECTION 9.07.  Subsections (a), (g), and (i), Section
30-54    2167.054, Government Code, are amended to read as follows:
30-55          (a)  The commission may lease space using competitive sealed
30-56    proposals [if the commission first determines that competitive
30-57    bidding is not practical or is disadvantageous to the state].
30-58          (g)  The commission shall make a written award of a lease to
30-59    the offeror whose proposal provides the best value for [is the most
30-60    advantageous to] the state, considering price and the evaluation
30-61    factors in the request for proposals.  [The commission may not use
30-62    other factors or criteria in its evaluation.]  The commission shall
30-63    state in writing in the contract file the reasons for which an
30-64    award is made.
30-65          (i)  If the competitive sealed proposal procedure for leasing
30-66    space is used by a state agency [an institution of higher
30-67    education] that has been delegated leasing authority under Section
30-68    2167.005, the agency [institution]:
30-69                [(1)  must first determine that competitive bidding is
 31-1    not practical or is disadvantageous to the state; and]
 31-2                [(2)]  shall follow the procedures outlined by this
 31-3    section and any rules adopted by the commission.
 31-4          SECTION 9.08.  Subchapter B, Chapter 2167, Government Code,
 31-5    is amended by adding Section 2167.0541 to read as follows:
 31-6          Sec. 2167.0541.  USE OF PRIVATE FIRMS TO OBTAIN SPACE.
 31-7    (a)  The commission may contract with one or more private brokerage
 31-8    or real estate firms to assist the commission in obtaining lease
 31-9    space for state agencies on behalf of the commission under this
31-10    chapter.
31-11          (b)  A private brokerage or real estate firm with which the
31-12    commission contracts under Subsection (a) may assist the commission
31-13    in leasing facilities under this chapter.
31-14          SECTION 9.09.  Subsection (b), Section 2167.055, Government
31-15    Code, is amended to read as follows:
31-16          (b)  A [The] lease contract entered into under Section
31-17    2167.053 or 2167.054 must reflect the provisions contained in the
31-18    invitation for bids or request for proposals, the successful bid or
31-19    proposal, and the award of the contract.
31-20          SECTION 9.10.  Subchapter C, Chapter 2167, Government Code,
31-21    is amended by adding Sections 2167.105 and 2167.106 to read as
31-22    follows:
31-23          Sec. 2167.105.  REPORT ON NONCOMPLIANCE.  If the commission
31-24    determines that a state agency has not complied with the
31-25    commission's rules or with other state law related to leasing
31-26    requirements, the commission shall report the noncompliance to the
31-27    members of the state agency's governing body and to the governor,
31-28    lieutenant governor, and speaker of the house of representatives.
31-29    The commission shall include in its report an estimate of the
31-30    fiscal impact resulting from the noncompliance.
31-31          Sec. 2167.106.  ANNUAL REPORT.  The staff of the commission
31-32    shall annually submit a report to the commission regarding
31-33    opportunities for delegating leasing authority to state agencies
31-34    with statewide operations.  The report must include comments from
31-35    state agencies with statewide operations.
31-36          SECTION 9.11.  A lease contract entered into by the General
31-37    Services Commission before September 1, 2001, under Chapter 2167,
31-38    Government Code, is governed during the remaining term of the lease
31-39    by Chapter 2167, Government Code, as it existed immediately before
31-40    September 1, 2001, and the prior law is continued in effect for
31-41    this purpose.  Chapter 2167, Government Code, as amended by this
31-42    Act, applies to the renewal of a lease described by this section.
31-43                       ARTICLE 10.  SURPLUS PROPERTY
31-44          SECTION 10.01.  Section 2175.065, Government Code, is amended
31-45    to read as follows:
31-46          Sec. 2175.065.  DELEGATION OF AUTHORITY TO STATE AGENCY.
31-47    (a)  The commission may authorize a state agency to dispose of
31-48    surplus or salvage property if the agency demonstrates to the
31-49    commission its ability to dispose of the property under Subchapters
31-50    C and E in a manner that results in cost savings to the state,
31-51    under commission rules adopted under this chapter.
31-52          (b)  The commission shall establish by rule the criteria for
31-53    determining that a delegation of authority to a state agency
31-54    results in cost savings to the state.
31-55          SECTION 10.02.  Subchapters C and D, Chapter 2175, Government
31-56    Code, are amended to read as follows:
31-57          SUBCHAPTER C.  DIRECT TRANSFER OR OTHER DISPOSITION OF
31-58                SURPLUS OR SALVAGE PROPERTY BY STATE AGENCY
31-59          Sec. 2175.121.  APPLICABILITY.  This subchapter applies only
31-60    to surplus or salvage property to which Subchapter D does not
31-61    apply.
31-62          Sec. 2175.122.  STATE AGENCY NOTICE TO COMMISSION AND
31-63    COMPTROLLER.  A state agency that determines it has surplus or
31-64    salvage property shall inform the commission and the comptroller of
31-65    the property's kind, number, location, condition, original cost or
31-66    value, and date of acquisition.
31-67          Sec. 2175.123.  DETERMINING METHOD OF DISPOSAL.  (a)  Based
31-68    on the condition of the property, a state agency shall determine
31-69    whether the property is:
 32-1                (1)  surplus property that should be offered for
 32-2    transfer under Section 2175.125 or sold to the public; or
 32-3                (2)  salvage property.
 32-4          (b)  The state agency shall inform the commission and the
 32-5    comptroller of its determination.
 32-6          Sec. 2175.124 [2175.122].  COMMISSION NOTICE TO OTHER
 32-7    ENTITIES.  After a determination that [On receiving notice from] a
 32-8    state agency [that the agency] has surplus [or salvage] property,
 32-9    the commission shall inform other state agencies, political
32-10    subdivisions, and assistance organizations of the comptroller's
32-11    website that lists surplus property that is available for sale [the
32-12    property's kind, number, location, and condition].
32-13          Sec. 2175.1245.  ADVERTISING ON COMPTROLLER WEBSITE.  Not
32-14    later than the second day after the date the comptroller receives
32-15    notice from a state agency that the agency has surplus property,
32-16    the comptroller shall advertise the property's kind, number,
32-17    location, and condition on the comptroller's website.
32-18          Sec. 2175.125 [2175.123].  DIRECT TRANSFER.  During the 10
32-19    business [30] days after the date the property is posted on the
32-20    comptroller's website [following dissemination of information under
32-21    Section 2175.122], a state agency, political subdivision, or
32-22    assistance organization may coordinate directly with the reporting
32-23    state agency for a transfer of the property at a price established
32-24    by the reporting agency.
32-25          Sec. 2175.126 [2175.124].  NOTICE OF TRANSFER TO COMPTROLLER;
32-26    ADJUSTMENT OF APPROPRIATIONS AND PROPERTY ACCOUNTING RECORDS;
32-27    REMOVAL FROM WEBSITE.  (a)  If property is transferred to a state
32-28    agency, the participating agencies shall report the transaction to
32-29    the comptroller.
32-30          (b)  On receiving notice under this section, the comptroller
32-31    shall, if necessary:
32-32                (1)  debit and credit the proper appropriations; and
32-33                (2)  adjust state property accounting records.
32-34          (c)  Not later than the second day after the date the
32-35    comptroller receives notice under Subsection (a), the comptroller
32-36    shall remove the property from the list of surplus property for
32-37    sale on the comptroller's website.
32-38          Sec. 2175.127 [2175.125].  PRIORITY FOR TRANSFER TO STATE
32-39    AGENCY.  During the 10 business [30] days after the date the
32-40    property is posted on the comptroller's website [of notice under
32-41    Section 2175.122], a transfer to a state agency has priority over
32-42    any other transfer under rules adopted by the commission.
32-43          Sec. 2175.128 [2175.126].  DISPOSITION OF DATA PROCESSING
32-44    EQUIPMENT.  (a)  If a disposition of a state agency's surplus or
32-45    salvage data processing equipment is not made under Section
32-46    2175.125 or 2175.184 [this subchapter], the state agency shall
32-47    transfer the equipment to the Texas Department of Criminal Justice.
32-48    The state agency may not collect a fee or other reimbursement from
32-49    the Texas Department of Criminal Justice for the surplus or salvage
32-50    data processing equipment.
32-51          (b)  If a disposition of the surplus or salvage data
32-52    processing equipment of a state eleemosynary institution or an
32-53    institution or agency of higher education is not made under other
32-54    law, the institution or agency shall transfer the equipment to the
32-55    Texas Department of Criminal Justice.  The institution or agency
32-56    may not collect a fee or other reimbursement from the Texas
32-57    Department of Criminal Justice for the surplus or salvage data
32-58    processing equipment.
32-59             [SUBCHAPTER D.  DISPOSITION OF SURPLUS OR SALVAGE
32-60                     PROPERTY BY COMPETITIVE BIDDING]
32-61          Sec. 2175.129 [2175.181].  DISPOSITION BY COMPETITIVE
32-62    BIDDING, [OR] AUCTION, OR DIRECT SALE.  (a)  If a disposition of a
32-63    state agency's surplus [or salvage] property is not made under
32-64    Section 2175.125 [Subchapter C], the commission shall:
32-65                (1)  sell the property by competitive bid, [or]
32-66    auction, or direct sale to the public, including a sale using an
32-67    Internet auction site; or
32-68                (2)  delegate to the state agency authority to sell the
32-69    property by competitive bid, auction, or direct sale to the public,
 33-1    including a sale using an Internet auction site [bidding].
 33-2          (b)  The commission or a state agency to which authority is
 33-3    delegated under Subsection (a)(2) or under Section 2175.065 shall
 33-4    determine which method of sale shall be used based on the method
 33-5    that is most advantageous to the state under the circumstances.
 33-6    The commission shall adopt rules establishing guidelines for making
 33-7    that determination.
 33-8          (c)  In using an Internet auction site to sell surplus
 33-9    property under this section, the commission or state agency shall
33-10    post the property on the site for at least 10 days.
33-11          Sec. 2175.130.  DISPOSITION BY DIRECT SALE TO PUBLIC.
33-12    (a)  If the commission or a state agency to which authority is
33-13    delegated under Section 2175.129(a)(2) or 2175.065 determines that
33-14    selling the property by competitive bid or auction, including a
33-15    sale using an Internet auction site, would not maximize the resale
33-16    value of the property to the state, the commission or agency may
33-17    sell surplus or salvage property directly to the public.
33-18          (b)  The commission, in cooperation with the state agency
33-19    that declared the property as surplus, or a state agency to which
33-20    authority is delegated under Section 2175.129(a)(2) or 2175.065
33-21    shall set a fixed price for the property.
33-22          Sec. 2175.131 [2175.182].  PURCHASER'S FEE.  (a)  The
33-23    commission or a state agency disposing of property by a method
33-24    other than direct transfer under this subchapter shall collect a
33-25    fee from the purchaser.
33-26          (b)  The commission or state agency shall set the fee at an
33-27    amount that is:
33-28                (1)  sufficient to recover costs associated with the
33-29    sale; and
33-30                (2)  at least two percent but not more than 12 percent
33-31    of sale proceeds.
33-32          Sec. 2175.132 [2175.183].  ADVERTISEMENT OF SALE.  If the
33-33    value of an item or a lot of property to be sold is estimated to be
33-34    more than $5,000, the commission or the state agency authorized to
33-35    sell the property shall advertise the sale at least once in at
33-36    least one newspaper of general circulation in the vicinity in which
33-37    the property is located.
33-38          Sec. 2175.133 [2175.184].  REPORTING SALE; PROPERTY
33-39    ACCOUNTING ADJUSTMENT.  (a)  On the sale by the commission of
33-40    surplus or salvage property, the commission shall report the
33-41    property sold and the sale price to the state agency that declared
33-42    the property as surplus or salvage.
33-43          (b)  A state agency for which surplus or salvage property is
33-44    sold or that sells surplus or salvage property under authority of
33-45    the commission shall report the sale and amount of sale proceeds to
33-46    the comptroller.
33-47          (c)  If property reported under this section is on the state
33-48    property accounting system, the comptroller shall remove the
33-49    property from the property accounting records.
33-50          Sec. 2175.134 [2175.185].  PROCEEDS OF SALE.  (a)  Proceeds
33-51    from the sale of surplus or salvage property, less the cost of
33-52    advertising the sale, the cost of selling the surplus or salvage
33-53    property, including the cost of auctioneer services, and the amount
33-54    of the fee collected under Section 2175.131 [2175.182], shall be
33-55    deposited to the credit of the appropriate appropriation item of
33-56    the state agency for which the sale was made.
33-57          (b)  The portion of sale proceeds equal to the cost of
33-58    advertising the sale and the cost of selling the surplus or salvage
33-59    property, including the cost of auctioneer services, shall be
33-60    deposited in the state treasury to the credit of the appropriation
33-61    item of the commission or other state agency from which the costs
33-62    were paid.
33-63          Sec. 2175.135 [2175.186].  PURCHASER'S TITLE.  A purchaser of
33-64    surplus [or salvage] property at a sale conducted under Section
33-65    2175.129 or 2175.130 [this subchapter] obtains good title to the
33-66    property if the purchaser has in good faith complied with:
33-67                (1)  the conditions of the sale; and
33-68                (2)  applicable commission rules.
 34-1             SUBCHAPTER D.  DISPOSITION OF SURPLUS OR SALVAGE
 34-2                          PROPERTY BY COMMISSION
 34-3          Sec. 2175.181.  APPLICABILITY.  (a)  This subchapter applies
 34-4    only to surplus and salvage property located in:
 34-5                (1)  Travis County;
 34-6                (2)  a county in which federal surplus property is
 34-7    warehoused by the commission under Subchapter G; or
 34-8                (3)  a county for which the commission determines that
 34-9    it is cost-effective to follow the procedures created under this
34-10    subchapter and informs affected state agencies of that
34-11    determination.
34-12          (b)  This subchapter does not apply to a state agency
34-13    delegated the authority to dispose of surplus or salvage property
34-14    under Section 2175.065.
34-15          Sec. 2175.1815.  ALTERNATIVE APPLICABILITY.
34-16    (a)  Notwithstanding Section 2175.181, until January 1, 2003, this
34-17    subchapter applies only to a state agency selected by the
34-18    commission to participate in the disposal process created under
34-19    this subchapter.
34-20          (b)  Subchapter C applies to a state agency that is not
34-21    selected by the commission to participate under this subchapter.
34-22          (c)  This section expires January 1, 2003.
34-23          Sec. 2175.182.  STATE AGENCY TRANSFER OF PROPERTY TO
34-24    COMMISSION.  (a)  The commission is responsible for the disposal of
34-25    surplus or salvage property under this subchapter.  The commission
34-26    may take physical possession of the property.  A state agency
34-27    maintains ownership of property throughout the disposal process.
34-28          (b)  Based on the condition of the property, the commission
34-29    shall determine whether the property is:
34-30                (1)  surplus property that should be offered for
34-31    transfer under Section 2175.184 or sold to the public; or
34-32                (2)  salvage property.
34-33          (c)  The commission shall inform the comptroller's office of
34-34    the property's kind, number, location, condition, original cost or
34-35    value, and date of acquisition.
34-36          Sec. 2175.1825.  ADVERTISING ON COMPTROLLER WEBSITE.  Not
34-37    later than the second day after the date the comptroller receives
34-38    notice from the commission under Section 2175.182(c), the
34-39    comptroller shall advertise the property's kind, number, location,
34-40    and condition on the comptroller's website.
34-41          Sec. 2175.183.  COMMISSION NOTICE TO OTHER ENTITIES.  On
34-42    taking responsibility for surplus property under this subchapter,
34-43    the commission shall inform other state agencies, political
34-44    subdivisions, and assistance organizations of the comptroller's
34-45    website that lists surplus property that is available for sale.
34-46          Sec. 2175.184.  DIRECT TRANSFER.  During the 10 business days
34-47    after the date the property is posted on the comptroller's website,
34-48    a state agency, political subdivision, or assistance organization
34-49    may coordinate with the commission for a transfer of the property
34-50    at a price established by the commission in cooperation with the
34-51    transferring agency.  A transfer to a state agency has priority
34-52    over any other transfer during this period.
34-53          Sec. 2175.185.  NOTICE OF TRANSFER TO COMPTROLLER; ADJUSTMENT
34-54    OF APPROPRIATIONS AND PROPERTY ACCOUNTING RECORDS; REMOVAL FROM
34-55    WEBSITE.  (a)  If property is transferred to a state agency under
34-56    Section 2175.184, the participating agencies shall report the
34-57    transaction to the comptroller.
34-58          (b)  On receiving notice under this section, the comptroller
34-59    shall, if necessary:
34-60                (1)  debit and credit the proper appropriations; and
34-61                (2)  adjust state property accounting records.
34-62          (c)  Not later than the second day after the date the
34-63    comptroller receives notice under Subsection (a), the comptroller
34-64    shall remove the property from the list of surplus property for
34-65    sale on the comptroller's website.
34-66          Sec. 2175.186.  DISPOSITION BY COMPETITIVE BIDDING, AUCTION,
34-67    OR DIRECT SALE.  (a)  If a disposition of a state agency's surplus
34-68    property is not made under Section 2175.184, the commission shall
34-69    sell the property by competitive bid, auction, or direct sale to
 35-1    the public, including a sale using an Internet auction site.
 35-2          (b)  The commission shall determine which method of sale
 35-3    shall be used based on the method that is most advantageous to the
 35-4    state under the circumstances.  The commission shall adopt rules
 35-5    establishing guidelines for making that determination.
 35-6          (c)  In using an Internet auction site to sell surplus
 35-7    property under this section, the commission shall post the property
 35-8    on the site for at least 10 days.
 35-9          Sec. 2175.187.  DISPOSITION BY DIRECT SALE TO PUBLIC.
35-10    (a)  If the commission determines that selling the property by
35-11    competitive bid or auction, including a sale using an Internet
35-12    auction site, would not maximize the resale value of the property
35-13    to the state, the commission may sell surplus property directly to
35-14    the public.
35-15          (b)  The commission shall set a fixed price for the property
35-16    in cooperation with the state agency that owns the property.
35-17          Sec. 2175.188.  PURCHASER'S FEE.  (a)  For property that is
35-18    sold under Section 2175.186 or 2175.187, the commission shall
35-19    collect a fee from the purchaser.
35-20          (b)  The commission shall set the fee at an amount that is:
35-21                (1)  sufficient to recover costs associated with the
35-22    sale; and
35-23                (2)  at least two percent but not more than 12 percent
35-24    of sale proceeds.
35-25          Sec. 2175.189.  ADVERTISEMENT OF SALE.  If the value of an
35-26    item or a lot of property to be sold is estimated to be more than
35-27    $5,000, the commission shall advertise the sale at least once in at
35-28    least one newspaper of general circulation in the vicinity in which
35-29    the property is located.
35-30          Sec. 2175.190.  REPORTING SALE; PROPERTY ACCOUNTING
35-31    ADJUSTMENT.  (a)  On the sale by the commission of surplus or
35-32    salvage property, the commission shall report the property sold and
35-33    the sale price to the state agency that owned the property and to
35-34    the comptroller.
35-35          (b)  If property reported under this section is on the state
35-36    property accounting system, the comptroller shall remove the
35-37    property from the property accounting records.
35-38          Sec. 2175.191.  PROCEEDS OF SALE.  (a)  Proceeds from the
35-39    sale of surplus or salvage property, less the cost of advertising
35-40    the sale, the cost of selling the surplus or salvage property,
35-41    including the cost of auctioneer services, and the amount of the
35-42    fee collected under Section 2175.188, shall be deposited to the
35-43    credit of the appropriate appropriation item of the state agency
35-44    for which the sale was made.
35-45          (b)  The portion of sale proceeds equal to the cost of
35-46    advertising the sale and the cost of selling the surplus or salvage
35-47    property, including the cost of auctioneer services, if any, shall
35-48    be deposited in the state treasury to the credit of the
35-49    appropriation item of the commission.
35-50          Sec. 2175.192.  PURCHASER'S TITLE.  A purchaser of surplus
35-51    property at a sale conducted under Section 2175.186 or 2175.187
35-52    obtains good title to the property if the purchaser has in good
35-53    faith complied with:
35-54                (1)  the conditions of the sale; and
35-55                (2)  applicable commission rules.
35-56          Sec. 2175.193.  CONTRACTS FOR DESTRUCTION OF PROPERTY.  The
35-57    commission shall contract for the disposal of property under
35-58    Subchapter E in a manner that maximizes value to the state.
35-59          SECTION 10.03.  This article takes effect January 1, 2002.
35-60                   ARTICLE 11.  PAPER RECYCLING PROGRAM
35-61          SECTION 11.01.  Section 2175.902, Government Code, is amended
35-62    to read as follows:
35-63          Sec. 2175.902.  MANDATORY PAPER RECYCLING PROGRAM.  (a)  The
35-64    commission shall establish a mandatory recycling program for a
35-65    state agency that occupies a building [and maintain in each
35-66    building] under its control [procedures for collecting separately
35-67    from other wastes all paper for recycling disposed of in that
35-68    building].  By rule, the commission shall:
35-69                (1)  establish guidelines and procedures for collecting
 36-1    and recycling of paper;
 36-2                (2)  set recycling goals and performance measures;
 36-3                (3)  require state agencies to designate a recycling
 36-4    coordinator;
 36-5                (4)  provide employee and custodial education and
 36-6    training;
 36-7                (5)  provide recognition and evaluative and corrective
 36-8    information to state agencies when appropriate; and
 36-9                (6)  inform state agencies when proper recycling
36-10    methods are not used.
36-11          (b)  If the commission finds that a state agency's recycling
36-12    program meets or exceeds the standards created under Subsection
36-13    (a), the [The] commission may delegate its responsibility under
36-14    this section [subsection] to a state agency located in a [each]
36-15    building under its control.
36-16          (c) [(b)]  The commission or a state agency with delegated
36-17    responsibility under Subsection (b) [(a)] shall sell the paper for
36-18    recycling to the highest bidder.
36-19          (d)  The commission may enter into an interagency agreement
36-20    to provide recycling services to a state agency otherwise excluded
36-21    from the program.
36-22                        ARTICLE 12.  EFFECTIVE DATE
36-23          SECTION 12.01.  Except as otherwise provided by this Act,
36-24    this Act takes effect September 1, 2001.
36-25                                 * * * * *