By:  Van de Putte, Bernsen                            S.B. No. 1366
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to preference to Texas bidders and best value for certain
 1-3     state procurements.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subsection (b), Section 2155.074, Government
 1-6     Code, is amended to read as follows:
 1-7           (b)  In determining the best value for the state, the
 1-8     purchase price, [and] whether the goods or services meet
 1-9     specifications, and the anticipated economic impact on the state,
1-10     including sales, ad valorem tax revenue, franchise tax revenue, and
1-11     any gain or loss of jobs, are the most important considerations.
1-12     However, the commission or other state agency may, subject to
1-13     Subsection (c) and Section 2155.075, consider other relevant
1-14     factors, including:
1-15                 (1)  installation costs;
1-16                 (2)  life cycle costs;
1-17                 (3)  the quality and reliability of the goods and
1-18     services;
1-19                 (4)  the delivery terms;
1-20                 (5)  indicators of probable vendor performance under
1-21     the contract such as past vendor performance, the vendor's
1-22     financial resources and ability to perform, the vendor's experience
1-23     or demonstrated capability and responsibility, and the vendor's
1-24     ability to provide reliable maintenance agreements and support;
1-25                 (6)  the cost of any employee training associated with
 2-1     a purchase;
 2-2                 (7)  the effect of a purchase on agency productivity;
 2-3     and
 2-4                 (8)  other factors relevant to determining the best
 2-5     value for the state in the context of a particular purchase.
 2-6           SECTION 2.  Subchapter H, Chapter 2155, Government Code, is
 2-7     amended by adding Section 2155.4439 to read as follows:
 2-8           Sec. 2155.4439.  PREFERENCE TO TEXAS BIDDERS.  (a)  The
 2-9     commission and all state agencies procuring goods or services may
2-10     give preference to a Texas bidder if:
2-11                 (1)  the contract for goods or services has a value
2-12     greater than $100,000; or
2-13                 (2)  the comptroller estimates that the tax revenue
2-14     generated by the contract and payable to the state during the
2-15     contract period will have a value of at least $1 million.
2-16           (b)  For each contemplated procurement that will have a value
2-17     greater than $100 million the procuring agency shall promptly
2-18     inform the comptroller of the contemplated procurement and the
2-19     comptroller shall complete a tax revenue analysis before the date
2-20     on which the bids or proposals, or the responses to a request for
2-21     qualifications, will be received by the commission or state agency.
2-22     The comptroller shall complete the requested analysis not later
2-23     than the 14th day after the date of receipt of all information
2-24     necessary to conduct the analysis.
2-25           (c)  In the event of a conflict between this section and
2-26     Section 2252.002, this section controls.
 3-1           (d)  In this section, "Texas bidder" means a bidder whose
 3-2     principal place of business is in this state, provided that a
 3-3     permanently staffed, full-time office is maintained at the place of
 3-4     business and that the bidder's principal decision makers conduct
 3-5     the daily affairs of the bidder at the place of business.  The mere
 3-6     presence of an employee or representative does not establish that a
 3-7     location is the principal place of business.  The term includes a
 3-8     contractor whose ultimate parent company or majority owner has its
 3-9     principal place of business in this state.
3-10           SECTION 3.  Subsection (a), Section 466.105, Government Code,
3-11     is amended to read as follows:
3-12           (a)  A contract for the acquisition or provision of
3-13     facilities, supplies, equipment, materials, or services related to
3-14     the operation of the lottery is not subject to:
3-15                 (1)  Chapter 2054 or 2254; or
3-16                 (2)  Subtitle D, Title 10, except that Section
3-17     2155.4439 applies to the contract.
3-18           SECTION 4.  Subsections (a) and (b), Section 2155.444,
3-19     Government Code, are amended to read as follows:
3-20           (a)  To the extent consistent with Section 2155.4439, the
3-21     [The] commission and all state agencies making purchases of goods,
3-22     including agricultural products, shall give preference to those
3-23     produced or grown in this state or offered by Texas bidders as
3-24     follows:
3-25                 (1)  goods produced in this state or offered by Texas
3-26     bidders shall equally be given preference if the cost to the state
 4-1     and quality are equal; and
 4-2                 (2)  agricultural products grown in this state shall be
 4-3     given first preference and agricultural products offered by Texas
 4-4     bidders shall be given second preference, if the cost to the state
 4-5     and quality are equal.
 4-6           (b)  Except as provided by Section 2155.4439, if [If] goods,
 4-7     including agricultural products, produced or grown in this state or
 4-8     offered by Texas bidders are not equal in cost and quality to other
 4-9     products, then goods, including agricultural products, produced or
4-10     grown in other states of the United States shall be given
4-11     preference over foreign products if the cost to the state and
4-12     quality are equal.
4-13           SECTION 5.  This Act takes effect immediately if it receives
4-14     a vote of two-thirds of all the members elected to each house, as
4-15     provided by Section 39, Article III, Texas Constitution.  If this
4-16     Act does not receive the vote necessary for immediate effect, this
4-17     Act takes effect September 1, 2001.