Strike section 23 and replace with the following:                            
	SECTION 23:  Subchapter B, Chapter 2055 Government Code, is 
amended by adding Section 2055.061 to read as follows:
	Sec. 2055.061:  State Data Center.                                      
	(a)  In this section:                                                   
		(1)  "Center" means the State Data Center.                             
		(2)  "Best value" has the meaning assigned under Section 
2157.003.  Government Code,
	(b)  The department shall operate, or through cooperative 
agreement, manage operations of the State Data Center on the campus 
of Angelo State University.  It is the intent of the Legislature 
that all state agencies and institutions of higher education 
utilize the Center for data center operations, testing disaster 
recovery plans, and for disaster recovery services.  None of the 
funds appropriated by this Act may be expended for entering into or 
renewing contracts or issuing purchase orders for data center 
operations, disaster recovery plan testing services, or disaster 
recovery services from other state agencies or other providers of 
these services without first obtaining a waiver from the 
Legislative Budget Board certifying that the requested service 
requirements cannot be provided at reasonable costs through the 
Center.  Waiver requests will be evaluated by the Legislative 
Budget Board, based on best value to the State, rather than best 
value to the state agency or institution of higher education 
requesting the waiver.  Prior to requesting a waiver from the 
Legislative Budget Board, agencies and institutions of higher 
education must first provide the operational vendor of the Center 
with a comprehensive statement of work sufficient for the 
operational vendor to provide an accurate cost estimate for cost 
comparison purposes.  Prior to initiating the waiver process, state 
agencies and institutions of higher education must also coordinate 
with the department regarding appropriate time frames for 
preparation of the statement of work, pricing, cost comparison and 
transition.
	Agencies and institutions of higher education shall use the 
State Auditor's Report 95-139 in evaluating cost comparison.  The 
Legislative Budget Board, may request assistance from the State 
Auditor's Office in validating cost evaluations.  Waivers may be 
granted for specific periods of time and any contracts for services 
obtained under waiver may not extend beyond the expiration date of 
the waiver.  Once a waiver has been granted, state agencies and 
institutions of higher education must provide a comparison of 
actual costs versus the projected costs used to obtain the waiver on 
an annual basis to the Legislative Budget Board.
	(c)  State agencies and institutions of higher education that 
use the Center shall do so under contract with the department.  The 
department may collect fees for these services in amounts that 
offset the direct and indirect costs of providing the services.  The 
department may request assistance from the State Auditor regarding 
the billing system formula for offsetting service costs.  In order 
for the state to realize maximum cost savings and operational 
efficiencies, the department, in consultation with the Legislative 
Budget Board, the State Auditor's Office and the Center's 
operational vendor, will develop a comprehensive information 
technology consolidation plan and provide information relating to 
the use of the Center as a location for one of the state's 
consolidated data centers.  The department shall file a written 
report of the plan with the Governor, the Lieutenant Governor, and 
the Speaker of the House of Representatives not later than May 31, 
2004.