By Lucio S.B. No. 360 77R1378 MXM-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to requiring state agencies to compete with the private 1-3 sector in providing certain functions and services. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subtitle D, Title 10, Government Code, is amended 1-6 by adding Chapter 2163 to read as follows: 1-7 CHAPTER 2163. GOVERNMENT COMPETITION WITH PRIVATE SECTOR 1-8 Sec. 2163.001. DEFINITION. In this chapter, "council" means 1-9 the State Council on Competitive Government. 1-10 Sec. 2163.002. SIZE OF STATE AGENCIES; PERFORMANCE OF 1-11 ESSENTIAL GOVERNMENT FUNCTIONS. A state agency shall endeavor to 1-12 limit its size and use its funds as effectively and efficiently as 1-13 possible in the performance of essential government functions. 1-14 Sec. 2163.003. LIMIT ON FUNCTIONS THAT AGENCY MAY PERFORM. A 1-15 state agency shall endeavor not to perform a function if a private 1-16 entity can perform that function better and at a lower cost. 1-17 Sec. 2163.004. IDENTIFICATION OF COMMERCIALLY AVAILABLE 1-18 ACTIVITIES; STRATEGIC PLANS. (a) As determined by council rule, a 1-19 state agency shall identify each function that it performs that is 1-20 also commercially available in the private sector. The agency 1-21 shall link each identified function with the state agency employees 1-22 or positions that perform that function. 1-23 (b) The agency shall include the findings from Subsection 1-24 (a) in its strategic plan under Section 2056.002. 2-1 Sec. 2163.005. PERFORMANCE TARGETS AND COMPETITION WITH 2-2 PRIVATE SECTOR. (a) A state agency annually shall: 2-3 (1) select a reasonable percentage of the functions 2-4 identified under Section 2163.004; and 2-5 (2) subject specific selected functions to competition 2-6 with the private sector by using an appropriate competitive 2-7 procurement process allowed under state law under which private 2-8 businesses may offer to perform a selected function. 2-9 (b) The division or part of the agency that performs a 2-10 function subjected to competition under Subsection (a)(2) may 2-11 participate in the competitive procurement process as if the 2-12 division or part were a private business. If the bid, proposal, or 2-13 other applicable kind of offer submitted by the division or part 2-14 provides the best value for the state: 2-15 (1) the division or part may continue to perform the 2-16 function but in accordance with the bid, proposal, or other 2-17 applicable kind of offer submitted by the division or part; and 2-18 (2) the Texas Incentive and Productivity Commission 2-19 shall treat the successful bid, proposal, or other applicable kind 2-20 of offer as a suggestion submitted by a state employee group and 2-21 consider whether the employees of the division or part are eligible 2-22 for a bonus under Section 2108.0236 or a recognition award under 2-23 Section 2108.0235. 2-24 Sec. 2163.006. REPORTING. The agency annually shall report 2-25 the percentage and specific projects identified under Section 2-26 2163.005(a) and summarize the results of the competition: 2-27 (1) to the council; and 3-1 (2) in the agency's strategic plan under Section 3-2 2056.002. 3-3 SECTION 2. (a) In this section, "state agency" has the 3-4 meaning assigned by Section 2151.002, Government Code. 3-5 (b) Each state agency shall make a list of all functions 3-6 that it performs, including services that it provides, that are 3-7 also commercially available in the private sector. 3-8 (c) Not later than June 1, 2002, each state agency shall 3-9 electronically report its list to the governor's office. 3-10 SECTION 3. This Act takes effect immediately if it receives 3-11 a vote of two-thirds of all the members elected to each house, as 3-12 provided by Section 39, Article III, Texas Constitution. If this 3-13 Act does not receive the vote necessary for immediate effect, this 3-14 Act takes effect September 1, 2001.