1-1     By:  Van de Putte, Bernsen                            S.B. No. 1366
 1-2           (In the Senate - Filed March 8, 2001; March 13, 2001, read
 1-3     first time and referred to Committee on State Affairs; May 3, 2001,
 1-4     reported adversely, with favorable Committee Substitute by the
 1-5     following vote:  Yeas 9, Nays 0; May 3, 2001, sent to printer.)
 1-6     COMMITTEE SUBSTITUTE FOR S.B. No. 1366                By:  Gallegos
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to preference to Texas bidders and best value for certain
1-10     state procurements.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1.  Subsection (b), Section 2155.074, Government
1-13     Code, is amended to read as follows:
1-14           (b)  In determining the best value for the state, the
1-15     purchase price, [and] whether the goods or services meet
1-16     specifications, and the anticipated economic impact on the state,
1-17     including sales, ad valorem tax revenue, and any gain or loss of
1-18     jobs, are the most important considerations.  However, the
1-19     commission or other state agency may, subject to Subsection (c) and
1-20     Section 2155.075, consider other relevant factors, including:
1-21                 (1)  installation costs;
1-22                 (2)  life cycle costs;
1-23                 (3)  the quality and reliability of the goods and
1-24     services;
1-25                 (4)  the delivery terms;
1-26                 (5)  indicators of probable vendor performance under
1-27     the contract such as past vendor performance, the vendor's
1-28     financial resources and ability to perform, the vendor's experience
1-29     or demonstrated capability and responsibility, and the vendor's
1-30     ability to provide reliable maintenance agreements and support;
1-31                 (6)  the cost of any employee training associated with
1-32     a purchase;
1-33                 (7)  the effect of a purchase on agency productivity;
1-34     and
1-35                 (8)  other factors relevant to determining the best
1-36     value for the state in the context of a particular purchase.
1-37           SECTION 2.  Subchapter H, Chapter 2155, Government Code, is
1-38     amended by adding Section 2155.4439 to read as follows:
1-39           Sec. 2155.4439.  PREFERENCE TO TEXAS BIDDERS.  (a)  The
1-40     commission and all state agencies procuring goods or services may
1-41     give preference to a Texas bidder if:
1-42                 (1)  the contract for goods or services has a value
1-43     greater than $100,000; or
1-44                 (2)  the comptroller estimates that the tax revenue
1-45     generated by the contract and payable to the state during the
1-46     contract period will have a value of at least $1 million.
1-47           (b)  For each contemplated procurement that will have a value
1-48     greater than $100 million the procuring agency shall promptly
1-49     inform the comptroller of the contemplated procurement and the
1-50     comptroller shall complete a tax revenue analysis before the date
1-51     on which the bids or proposals, or the responses to a request for
1-52     qualifications, will be received by the commission or state agency.
1-53     The comptroller shall complete the requested analysis not later
1-54     than the 14th day after the date of receipt of all information
1-55     necessary to conduct the analysis.
1-56           (c)  In the event of a conflict between this section and
1-57     Section 2252.002, this section controls.
1-58           (d)  In this section, "Texas bidder" means a bidder whose
1-59     principal place of business is in this state, provided that a
1-60     permanently staffed, full-time office is maintained at the place of
1-61     business and that the bidder's principal decision makers conduct
1-62     the daily affairs of the bidder at the place of business.  The mere
1-63     presence of an employee or representative does not establish that a
1-64     location is the principal place of business.  The term includes a
 2-1     contractor whose ultimate parent company or majority owner has its
 2-2     principal place of business in this state.
 2-3           SECTION 3.  Subsection (a), Section 466.105, Government Code,
 2-4     is amended to read as follows:
 2-5           (a)  A contract for the acquisition or provision of
 2-6     facilities, supplies, equipment, materials, or services related to
 2-7     the operation of the lottery is not subject to:
 2-8                 (1)  Chapter 2054 or 2254; or
 2-9                 (2)  Subtitle D, Title 10, except that Section
2-10     2155.4439 applies to the contract.
2-11           SECTION 4.  Subsections (a) and (b), Section 2155.444,
2-12     Government Code, are amended to read as follows:
2-13           (a)  To the extent consistent with Section 2155.4439, the
2-14     [The] commission and all state agencies making purchases of goods,
2-15     including agricultural products, shall give preference to those
2-16     produced or grown in this state or offered by Texas bidders as
2-17     follows:
2-18                 (1)  goods produced in this state or offered by Texas
2-19     bidders shall equally be given preference if the cost to the state
2-20     and quality are equal; and
2-21                 (2)  agricultural products grown in this state shall be
2-22     given first preference and agricultural products offered by Texas
2-23     bidders shall be given second preference, if the cost to the state
2-24     and quality are equal.
2-25           (b)  Except as provided by Section 2155.4439, if [If] goods,
2-26     including agricultural products, produced or grown in this state or
2-27     offered by Texas bidders are not equal in cost and quality to other
2-28     products, then goods, including agricultural products, produced or
2-29     grown in other states of the United States shall be given
2-30     preference over foreign products if the cost to the state and
2-31     quality are equal.
2-32           SECTION 5.  This Act takes effect immediately if it receives
2-33     a vote of two-thirds of all the members elected to each house, as
2-34     provided by Section 39, Article III, Texas Constitution.  If this
2-35     Act does not receive the vote necessary for immediate effect, this
2-36     Act takes effect September 1, 2001.
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