C.S.H.B. 2 78(R)    BILL ANALYSIS


C.S.H.B. 2
By: Swinford
Government Reform
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

To achieve the cost savings and revenue necessary to finance state
government, C.S.H.B. 2 implements various reorganization, efficiency, and
reform measures.  C.S.H.B. 2 reorganizes and consolidates several state
agencies and functions, enacts several cost savings measures included in
the Comptroller's eTexas reports, creates the Texas Enterprise Fund to
stimulate economic development, improves the process for collecting tax on
the sale of motor vehicles, improves on-line access to government
services, provides for a process to privatize correctional facilities,
reforms the state's environmental regulatory burden. 

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly
granted to any agency of this state that provides a program of health
insurance or health benefits  that authorizes health reimbursement
arrangements in SECTION 1B.01, (Chapter 3, Insurance Code).  Rulemaking
authority is transferred from the Texas Funeral Commission to the Texas
Department of Licensing and Regulation in SECTION 1J.21, (Chapter 651,
Occupations Code); is transferred from the Texas Board of Professional
Land Surveying to the Texas Department of Licensing and Regulation in
SECTION 1J.22, (Chapter 1071, Occupations Code); is transferred from
theTexas Department of Housing and Community Affairs to the Texas
Department of Licensing and Regulation in SECTION 1J.23, (Chapter 1201,
Occupations Code); is transferred from Texas State Board of Plumbing
Examiners to the Texas Department of Licensing and Regulation in SECTION
1J.24, (Chapter 1301, Occupations Code); is transferred from the State
Board of Barber Examiners to the Texas Department of Licensing and
Regulation in SECTION 1J.25, (Chapter 1601, Occupations Code); is
transferred from the Texas Cosmetology Commission to the Texas Department
of Licensing and Regulation in SECTION 1J.26, (Chapter 1602, Occupations
Code); is transferred from the Texas Structural Pest Control Board to the
Texas Department of Licensing and Regulation in SECTION 1J.27, (Chapter
1951, Occupations Code); is transferred from Texas Board of Professional
Geoscientists to the Texas Department of Licensing and Regulation in
SECTION 1J.28,  (Article 3271b, Vernon's Texas Civil Statutes). 

It is the committee's opinion that rulemaking authority is transferred
from the Office of State-Federal Relations to the Governor's Office in
SECTION 1K.12, (Sec. 401.152, Government Code). 

It is the committee's opinion that rulemaking authority is expressly
granted to the Texas Transportation Commission in SECTION 1L.01, (Sec.
461.003, Transportation Code). 

It is the committee's opinion that rulemaking authority is transferred
from the Texas Commission on Private Security to the Texas Department of
Public Safety in SECTION 1P.01, (Sec.1702.005, Occupations Code). 

It is the committee's opinion that rulemaking authority is expressly
granted to the Railroad Commission of Texas in SECTION 2B.01 (Art. 6448a,
Revised Statutes); rulemaking is expressly granted to the Comptroller of
Public Accounts in SECTION 2D.01 (Sec. 152.0412, Tax Code); rulemaking
authority is expressly granted to the Governor in SECTION 2E.02 (Sec.
391.009, Local Government Code); rulemaking authority is expressly
transferred to the Texas Building and Procurement Commission from a state
agency in relation to facilities management in SECTION 3B.03; rulemaking
authority is expressly delegated to the Texas Department of Transportation
in SECTION 3J.03;  rulemaking authority is expressly delegated to the
Department of Information  Resources in SECTION 4A.01 (Section 2054.102,
Government Code);  rulemaking authority is expressly granted to the board
of the Department of Information Resources in SECTION 
4B.14 (Section 2054.271, Government Code).

It is the opinion of the committee that rulemaking authority is expressly
granted to the Texas Department of Public Safety in SECTION 4F.01
(Sections 548.251 and 548.253, Transportation Code) and SECTION 4F.02
(Section 548.508, Transportation Code).  Rulemaking authority is expressly
granted to the Texas Transportation Commission in SECTION 5A.01 (Section
223.050, Transportation Code) and SECTION 5A.02 (Section 2158.276,
Government Code).    

It is the opinion of the committee that rulemaking authority is expressly
granted to the Commission on Private Initiative in SECTION 5B.01 (Section
495.013, Government Code); transfers rulemaking authority from the Private
Sector Prison Industries Oversight Authority to the Commission on Private
Initiative in SECTION 5B.02 (Sections 497.057, 497.058, 497.0581,497.059,
497.060, and 497.062).  Rulemaking authority is expressly granted to the
Commission on Private Initiative in SECTION 5E.15 (2157.066, Government
Code). 

It is the opinion of the committee that rulemaking authority is expressly
transferred from the Office of the Attorney General to the Texas Building
and Procurement Commission in SECTION 5E.20 (Section 2262.051, Government
Code),  SECTION 5E.23 (Section 2262.054, Government Code), and SECTION
5E.27 (Chapter 2262, Government Code); rulemaking authority is expressly
granted to the Texas Building and Procurement Commission in SECTION 5E.28
(Section 2175.061, Government Code).  

It is the opinion of the committee that rulemaking authority is expressly
granted to the board of trustees of the Employees Retirement System of
Texas in SECTION 7A.02 (Section 813.514, Government Code).  Rulemaking
authority is expressly granted to the Governor in SECTION 7E.03. (Section
651.004, Government Code). 

It is the opinion of the committee that rulemaking authority is expressly
granted to the Texas Commission on Environmental Quality in SECTION 8A.01
(Sections 5.853 and 5.855, Water Code), SECTION 8B.01 (Section 5.132,
Water Code), SECTION 8B.03 (Section 5.5515, Water Code), SECTION 8B.06
(Section 5.554, Water Code), SECTION 8B.09 (Section 5.556, Water Code),
SECTION 8B.14 (Sections 361.123, Health and Safety Code), SECTION 8B.15
(Section 361.534, Health and Safety Code), SECTION 8B.17 (Section
382.05191, Health and Safety Code), SECTION 8B.18 (Section 382.05197,
Health and Safety Code), SECTION 8B.20 (Section 382.056, Health and Safety
Code), SECTION 8B.22 (Section 382.0561, Health and Safety Code), SECTION
8C.06 (Sections 27.05, Water Code, as amended by Chapter 965, Acts of the
77thLegislature, Regular Session, 2001), and SECTION 8F.02. 

It is the opinion of the committee that rulemaking authority is expressly
granted to the Texas Department of Agriculture in SECTION 8K.06 (Section
16.006, Agriculture Code).  

It is the opinion of the committee that rulemaking authority is expressly
transferred from the Texas Building and Procurement Commission to the
Texas Department of Public Safety in SECTION 9A.02 (Section 547.7015,
Transportation Code).  

It is the opinion of the committee that rulemaking authority is expressly
granted to the Texas Higher Education Coordinating Board in SECTION 9C.01
(Section 52.015, Education Code).  

It is the opinion of the committee that rulemaking authority is expressly
granted to the Texas Department of Agriculture in SECTION 8K.06 (Section
16.006, Agriculture Code). 

It is the opinion of the committee that rulemaking authority is expressly
transferred from the Texas Building and Procurement Commission to the
Texas Department of Public Safety in SECTION 9A.02 (Section 547.7015,
Transportation Code). 

It is the opinion of the committee that  rulemaking authority is expressly
granted to the Texas Higher Education Coordinating Board in SECTION 9C.01
(Section 52.015, Education Code). 
 
It is the opinion of the committee that rulemaking authority is expressly
granted to the commissioner of the State Board on Property Valuation in
SECTION 13A.01 (Section 51.22, Section 51.42, Section 51.44, Tax Code);
rulemaking authority is transferred from the comptroller to the
commissioner of the State Board on Property Valuation in SECTION 13A.22
(Section 1.111, Tax Code).  It is the opinion of the committee that
rulemaking authority is expressly transferred from the comptroller to the
State Board on Property Valuation in  SECTION 13A.24 (Section 5.03, Tax
Code); rulemaking authority is expressly transferred from the comptroller
to the commissioner of the State Board on Property Valuation in  SECTION
13A.35 (Section 11.252, Tax Code), SECTION 13A.39 (Section 11.44, Tax
Code), SECTION 13A.40 (Section 21.03, Tax Code),  SECTION 13A.41 (Section
21.031, Tax Code), SECTION 13A.53 (Section 23.1241, Tax Code),  SECTION
13A.55 (Section 23.1242, Tax Code),  SECTION 13A.60 (Section 23.127, Tax
Code), SECTION 13A.62 (Section 23.128, Tax Code), SECTION 13A.63 (Section
23.175, Tax Code ), SECTION 13A.64 (Section 23.41, Tax Code), SECTION
13A.67 (Section 23.52, Tax Code), SECTION 13A.68 (Section 23.521, Tax
Code), SECTION 13A.70 (Section 23.73, Tax Code),  SECTION 13A.72 (Section
23.83, Tax Code), SECTION 13A.74 (Section 23.93, Tax Code), SECTION 13A.78
(Section 24.34, Tax Code), SECTION 13A.85 (Section 25.03, Tax Code),
SECTION 13A.88 (Section 26.01, Tax Code), SECTION 13A.90 (Section 26.06,
Tax Code), SECTION 13A.92 (Section 31.032, Tax Code), SECTION 13A.94
(Section 31.11 Tax Code), SECTION 13A.100 (Section 41.70, Tax Code),
SECTION 13A.110 (Section 39.901, Utilities Code). 


ANALYSIS

Part 1.General Matters Affecting State Agencies, Including Consolidation
of Functions and Entities 

C.S.H.B. 2 broadens the qualifications for persons eligible to be
appointed to serve as Adjutant General by allowing active duty service in
the marines, at least 10 years reserve or active duty service as a
commissioned officer with the United State armed forces, the National
Guard, or the Texas National Guard, including at least five years with the
Texas National Guard. 

C.S.H.B. 2 allows state agencies that provide health insurance or health
benefits to provide their program in accordance  with the ruling of the
United State Internal Revenue Service authorizing reimbursement
arrangements. 
     
C.S.H.B. 2 defines what constitutes a budgetary working paper, and excepts
certain entities from disclosure required under Chapter 552, Government
Code. 

C.S.H.B. 2 changes the terms of  the Workers' Compensation Commissioners
to two-year terms from staggered six-year terms. 

C.S.H.B. 2 changes the number of members of the Board of Pardons and
Paroles Policy Board from six members to seven. 

C.S.H.B. 2 removes the requirement that no more than one member of the
Veterans Commission be from a senatorial district composed of a single
county. 

C.S.H.B. 2  allows the Governor to issue executive orders to change the
organization and operations of a state agency within the executive branch,
including institutions of higher education other than a public junior
college.  Changes made by the Governor must be consistent with the state
constitution and existing law. 

C.S.H.B. 2  reduces the size of the Higher Education Coordinating Board
from 18 to nine members. 

C.S.H.B. 2 abolishes the Funeral Services Commission, Board of
Professional Land Surveying, State Board of Plumbing Examiners, State
Board of Barber Examiners, Cosmetology Commission, Structural Pest Control
Board, and Board of Professional Geoscientists and transfers the functions
and activities of those agencies to the Department of Licensing and
Regulation.  Transfers responsibility for the regulation of manufactured
housing from the Department of Housing and  Community Affairs to the
Department of Licensing and Regulation.  Requires the Governor to appoint
seven-member advisory committees for each of the transferred functions to
advise the Department of Licensing and Regulation in administering each
regulatory act. 

C.S.H.B. 2 transfers the Office of State-Federal Relations to the
Governor's Office and requires the Governor to appoint the director of the
office.  Changes the Office of State-Federal Relations Advisory Policy
Board to the State-Federal Relations Advisory Board.  Gives the Governor's
Office of Budget, Planning, and Policy primary responsibility for
monitoring and reporting on the state's efforts to ensure receipt of an
equitable share of federal formula funds. 
          
C.S.H.B. 2 provides for the increased coordination of provision of public
transportation in the state.  
C.S.H.B. 2 requires the Governor to present a copy of the Governor's
budget to the legislature before the State of the State address, rather
than within the first six days of the legislative session.  Deletes the
criminal penalty for a person who refuses to perform duties related to the
Governor's budget. Repeals the requirement the Governor biennially prepare
and submit to the legislature a report on the organization and efficiency
of state agencies. 

C.S.H.B. 2 provides that the Commissioner of Insurance serves a one-year,
rather than a two-year, term of office.  Changes the qualifications for
the Commissioner of Insurance by removing the requirement of experience as
an administrator and ten years service as a business or government
executive, practicing attorney, or certified public accountant with five
years specializing in the insurance field. 

C.S.H.B. 2 requires the Higher Education Coordinating Board to review the
organization and operations of university system offices and to identify
opportunities for reorganization and consolidation of functions, systems,
and activities by November 1, 2004. 

C.S.H.B. 2 abolishes the Commission on Private Security and transfers its
functions to Department of Public Safety. 

C.S.H.B. 2 allows the Governor to consider geographic and the balance of
rural and urban representation when making appointments to the Parks and
Wildlife Department Board. 

C.S.H.B. 2 provides that the Governor designate a member of the governing
body of each state agency, university system, institution of higher
education, and river authority as  the presiding officer to serve at the
pleasure of the Governor. 

C.S.H.B. 2 requires the Department of Criminal Justice to report on the
costs and feasibility of providing cognitive behavior training to
corrections officers by December 31, 2004.  Requires the Department, in
consultation with representative from the University of Texas and Texas
A&M University who are specialists in corporate reorganization and
efficiency, to conduct a study to evaluate the organizational efficiency
of the Department.  

C.S.H.B. 2 repeals certain sections of the Occupations Code, certain
sections of the Texas Geoscience Practice Act, certain sections of the
Government Code. 

Part 2. Fees and Other Financial Issues

C.S.H.B. 2 creates the Texas Enterprise Fund as an account in the general
revenue fund for economic development, infrastructure, and job training
and creation programs.  Allows the Governor to negotiate on behalf of the
state to grant money from the fund, with the consent of the Lieutenant
Governor and Speaker of the House. 

C.S.H.B. 2 requires the Railroad Commission to assess and collect fees on
railroads operating in the state to cover the costs of administering the
rail safety program. 

C.S.H.B. 2 would require agencies to determine if capital items could be
funded through savings from a contract for energy utility conservation.
Requires agencies to consider utility cost savings  generated as potential
methods to finance capital expenditures. 

C.S.H.B. 2 requires the Comptroller of Public Accounts, in cooperation
with the Department of Transportation, to adopt rules for determining the
standard presumptive value of a motor vehicle subject to the sales tax.
Prohibits the transfer of a motor vehicle title if the sales price is less
than the standard presumptive value of the vehicle.  Specifies the manner
and amounts of motor fuels taxes the Comptroller is to withhold from the
state highway fund if the Department has not fully implemented the
registration and title system by September 1, 2003. 

C.S.H.B. 2 adds the State Auditor to the entities with statutory oversight
of regional planning commissions and specifies the responsibilities of the
Auditor. 

C.S.H.B. 2 allows the Governor to negotiate on the state's behalf in
economic pursuits and specifies the categories of funds the Governor may
redirect for economic development. 

C.S.H.B. 2 requires the Texas Transportation Institute to state whether
state highway fund money could be used in lieu of general revenue money
when submitting budget requests to the legislature, Legislative Budget
Board, or Higher Education Coordinating Board. 

C.S.H.B. 2 Sets forth qualifications for unclaimed wages.

C.S.H.B. 2 increases the registration and renewal fees for landscape
architects, interior designers, professional land surveyors, and property
tax consultants by $200.  Provides that $50 of the increase be deposited
in the foundation school fund and $150 in the general revenue fund. 

C.S.H.B. 2 requires the Legislative Budget Board and the Governor to
develop performance measures to be used by state agencies in the
appropriations process.  Requires the Legislative Budget Board and the
Governor to develop recommendations for improving the strategic planning
process. Requires agencies to submit letters to the Office of the
Governor, the Legislative Budget Board, and the State Auditor providing
assurance about risk assessment and financial control systems. 

Part 3.Management of State Property and Facilities

C.S.H.B. 2 requires a state agency with 10 or more motor vehicles or
non-road diesels to reduce total fuel consumption by at least 5 percent
from fiscal year 2002 consumption levels through costeffective fuel saving
technologies.  A state agency may delay reducing fuel use until a list of
proven technologies is provided by the State Energy Conservation Office
and may not purchase technology that increases pollution or degrades air
quality. 

C.S.H.B. 2 requires the Department of Transportation, under the direction
of the State Energy Conservation Office, to demonstrate the effectiveness
of at least four fuel-saving technologies on a combined maximum of 100
vehicles to determine the technologies that reduce fuel consumption and
save state revenue.  The Texas Council on Environmental Technology, the
University of Texas Center for Transportation Research, the University of
Houston Diesel Emissions Center, or another agency may be designated to
assist with the demonstration.  Requires the State Energy Conservation
Office to rank the technologies and provide a report to each state agency
with 10 or more vehicles and to the Legislative Budget Board by September
1, 2004. 

C.S.H.B. 2 transfers to the Building and Procurement Commission the
responsibility for all facilities management services for all facilities
not unique to carrying out an agency program for a state facility in
Travis County, or in an adjacent county.  Requires the State Energy
Conservation Office to provide utility management services for the same
facilities.  Exempts higher education facilities, military facilities,
prison facilities, the Capitol and related facilities, and residential
facilities. 

C.S.H.B. 2 abolishes the Recycling Market Development Board and transfers
the functions and duties of the Board to Governor's Office, the Commission
on Environmental Quality, the Department of Economic Development, and the
Building and Procurement Commission. 

C.S.H.B. 2 requires the Building and Procurement Commission to develop
private, commercial uses  for state-owned parking lots and garages located
within the City of Austin.  Allows the Commission to contract with a
private vendor to manage the program and money received from a lease under
the program must be deposited to the credit of the general revenue fund. 

C.S.H.B. 2 clarifies that the Building and Procurement Commission may
lease boat storage space, aircraft hangar space, and vehicle parking space
for state agencies with those needs.  Authorizes the 
Commission to revoke a delegation of authority to another state agency to
enter into lease contracts for space.  Gives the Commission the option of
charging and billing state agencies for the cost of providing leasing
services, rather than making these charges mandatory.  Allows the
Commission the option of inviting a state agency to participate in the
discussions and negotiations.  Allows the Commission to renew leases under
which the terms are agreed upon by all parties rather than allowing for
only a one-time renewal, not to exceed one year.  Clarifies that agencies
must certify that they have funds available to pay for their lease until
the end of the next fiscal biennium. 

C.S.H.B. 2 allows the Transportation Commission to sell the Bull Creek
campus with the revenue deposited to the credit of the state highway fund.
Allows the commission to purchase or acquire the State Aircraft Pooling
Board property and adjacent property located at the former Robert Mueller
Municipal Airport in Austin by eminent domain as replacement property. 

C.S.H.B. 2 changes the limitation on the allocation of space to an average
of 135 square feet per employee from 153 square feet.  Allows the Building
and Procurement Commission to determine the applicability of the
allocation for small agencies.  Requires the Commission to determine
whether it would be cost-effective to bring its current allocation of
space into compliance with the new requirements. 

C.S.H.B. 2 deletes the requirement that the Building and Procurement
Commission solicit and consider comments from the asset management
division of the General Land Office before the Commission leases public
ground for agricultural or commercial purposes or leases space in a
stateowned building to private tenants. 

C.S.H.B. 2 requires the Building and Procurement Commission to stipulate
the use of recycled steel as one of the components in its requests for
proposals when appropriate, including all building construction projects
of the state. 

C.S.H.B. 2 repeals certain sections of the Government Code.

Part 4.Management of Information Technology.

C.S.H.B. 2 requires the Legislative Budget Board to process agency
biennial operating plans or amendments within 60 days of receipt.
Requires the Department of Information Resources to adopt rules to
establish standards and provide the Legislative Budget Board with a list
of agencies that have not complied with standards, provisions of the
strategic plan, or corrective action plans.  Requires an agency identified
on the list to develop a corrective action plan. 

C.S.H.B. 2 increases the size of the TexasOnline authority from 15 to 17
members by increasing the number of public members from three to six and
by removing the member representing the Department of Information
Resources.  Requires the Governor to designate a member of the authority,
rather than the Department, as the presiding officer who serves at the
pleasure of the Governor. 

C.S.H.B. 2 requires a state agency using TexasOnline to advertise the
option of completing transactions on-line.  Requires a state agency to
provide the Department of Information Resources an opportunity to bid on a
project that proposes to duplicate a TexasOnline function.  Requires state
agencies with Internet sites to include a link to TexasOnline on the front
page of the site.  Allows state agencies to use electronic payment methods
for transactions. 

C.S.H.B. 2 authorizes the TexasOnline Authority to charge a reasonable
convenience fee to a license holder who uses on-line license issuance or
renewal if the transaction costs exceed the maximum increase in
occupational license renewal fees.  Authorizes the authority to exempt a
licensing entity  from subscription fees if the entity has established an
Internet portal that is performing cost-effective on-line license renewal.
Requires each licensing entity to increase the occupational license fees,
rather than renewal fees, by an amount sufficient to cover the cost of the
subscription fee.  Requires certain licensing authorities to participate
in the TexasOnline system.  Authorizes a licensing entity to use another
state agency's database, where appropriate, to validate an individual's
identity rather than requiring a notarized document or a document signed
by a third party. 

C.S.H.B. 2 provides that a contract between the TexasOnline Authority and
another entity is not void for the sole reason that a member of the
authority also serves on the governing body of the contracting entity.
Authorizes the Department of Information Resources to exercise all
intellectual property rights regarding TexasOnline, including prevention
from using similar names or designs used by the project to market
products.  Provides that for purposes of TexasOnline, the renewal of a
motor vehicle registration is a state service.  Requires certain state
agencies to study the feasibility of making on-line renewals of licenses
mandatory.  Allows the Authority to hold an open or closed meeting by
telephone conference.  Requires the Department of Information Resources to
work with the Secretary of State to study the feasibility of providing
notary public services on the Internet. 

C.S.H.B. 2 requires the Comptroller of Public Accounts, contracting with a
private vendor, to establish a common electronic infrastructure to
administer state agency work site benefits plans. Requires the contract to
specify that the project applies to all state agencies at no cost to the
state until the project is initially implemented.  Requires the vendor to
offer existing technology for use in the project. 

C.S.H.B. 2 requires the executive director of the Workforce Commission to
use TexasOnline to furnish appropriate electronic records to eligible
individuals. Requires the fee to recover the total costs incurred in
furnishing the record. 

C.S.H.B. 2 allows the Department of Public Safety to adopt rules that
authorize inspection stations to purchase inspection certificates and
transmit information using TexasOnline.  Authorizes inspection stations to
collect reasonable fees to support the system. 

C.S.H.B. 2 repeals certain sections of the Government Code.

Part 5.State Contracting and Procurement.

C.S.H.B. 2 requires the Department of Transportation to require
contractors for highway projects to use an owner-controlled insurance
program, managed by the Texas Building and Procurement Commission.
Requires the Commission to contract with one or more private vendors to
develop an owner-controlled insurance program to be used by state agencies
for public works projects. Authorizes the Commission to approve the use of
the program by local governments.  Authorizes the Commission or the vendor
to charge a fee for use of the program.  Deletes the requirement that the
Commission or other agency may require a contractor or subcontractor to
meet bonding or insurance requirements under a negotiated arrangement. 

C.S.H.B. 2 alters the composition of the Private Sector Prison Industries
Oversight Authority, renaming it the Commission on Private Initiative,
which will administer the state's contracts with vendors for correctional
facilities and services.  It also delineates representation on the
commission. Provides that members of the Commission are entitled to travel
reimbursement, authorizes the Commission to employ a director and staff,
and authorizes the Commission to adopt rules as necessary.  Requires the
Commission to issue requests for proposals for services, contract
negotiation, and vendor oversight and monitoring.  Requires the
Commission, with the assistance of other entities, to establish a daily
"price to beat" per diem rate for facilities operated by the Department or
under contract.  Subjects the Commission to the Texas Sunset Act. 

C.S.H.B. transfers employees and funds from the private facilities
division of the Department of Criminal Justice to the Commission on
Private Initiative. Specifies the Commission, rather than the Department,
is responsible for all matters related to contracts with private vendors
and commissioners courts for institutional division facilities as well as
services  and removes the current provision dealing with the maximum
average daily population of 1,000 inmates held in facilities  operated by
private vendors or a county.  Deletes the requirement that requests for
proposals have an initial contract term of not more than three years with
an option to review for additional periods of two years.  Specifies the
Commission, rather than the Legislative Budget Board, determine the costs
and savings of a proposal for private facilities.  Requires the Commission
to enter into contracts with private vendors for at least 1,000 beds for
inmates serving sentences for driving while intoxicated.  Deletes
provisions related to Department's  responsibilities regarding operation
of correctional facilities by a private vendor.  Requires entities
entering into contracts to maximize revenue through participation in
inmate industry and agriculture programs, technology, and commissary
programs and details how proceeds from these activities are treated. 
           
C.S.H.B. 2 requires the office of vehicle fleet management within the
Building and Procurement Commission to provide monthly reports to agencies
to assist with the management of vehicle fleets. Allows the Commission to
choose whether to continue or cease providing routine vehicle maintenance
to state agencies in Travis County and to negotiate contracts for major
overhauls and extensive mechanical work.  Deletes the requirement the
Commission deposit the proceeds for the sale or surplus or salvage
property to the  account that the agency used to purchase the vehicle and
requires the funds to be deposited in the general revenue fund, unless the
property was acquired with money from the state highway fund or property
given or granted to a state agency. 

C.S.H.B. 2 deletes the requirement an institution of higher education
consider the use of material in construction or repair to real property
that is not proprietary to a single vendor unless the institution provides
written justification for use of the unique material.  Exempts outside
legal counsel services, expert witnesses, or litigation-related goods and
services from the State Purchasing Act.  Requires the Building and
Procurement Commission to require a reasonable number, rather than 24
hours, of continuing education and gives flexibility for the renewal
period to maintain certification for state agency purchasers.  Expands the
Commission's authority to make purchases previously not within its
purchasing authority.  Delegates the fire fighters' pension commissioner
all purchasing functions relating to the purchase of goods and services
from non-general revenue funds for fiduciary duties of the retirement
fund. 

C.S.H.B. 2 allows the Building and Procurement Commission to collect
rebates from vendors under a contract listed on the multiple award
contract schedule.  Modifies the catalogue purchasing process to remove
the requirement that the vendor apply and be designated by the Commission
as a qualified information system vendor.  Transfers responsibilities and
all appropriated funds related to statewide contract management from the
State Auditor's Office and the Office of Attorney General to the Building
and Procurement Commission no later than February 1, 2004.  Removes
statutory delegation of certain purchasing authority from instructional
departments of institutions of higher education or similar activities of
other state agencies, the Veteran's Land Board, health and human services
agencies, and from state agencies acquiring goods and services in support
of health care programs. 

C.S.H.B. 2 allows a state agency to contract for legal services and
specifies that the Professional Services Procurement Act does not apply to
a contingent fee for legal services.  Allows the Attorney General to
require state agencies to obtain outside legal services through a
competitive procurement process. 

C.S.H.B. 2 prohibits a state agency from spending more than the amount
authorized for the cost of a project unless the Governor and the
Legislative Budget Board approve the expenditure.  Requires an agency to
get authorization from the Governor and the Legislative Budget Board for
any changes to the approved project plans once the cost of the project
reaches the amount that has been authorized. 

C.S.H.B. 2 prohibits the Commission on Environmental Quality from
amending, interpreting, impairing, or modifying a wholesale water
contract.  Requires a written petition to include information that the
petitioner has not entered into a contract with the party owning or
controlling the water supply. 

C.S.H.B. 2 authorizes, rather than requires,  the Building and Procurement
Commission the option of negotiating private travel service contracts.
Eliminates the requirement that the Commission  maintain at least one
contract with a provider of travel services. 

C.S.H.B. 2 provides that the Building and Procurement Commission consists
of five members appointed by the Governor, after January 31, 2007.  Until
that date, the Commission will consist of seven members, three of which
are appointed by the Governor, two of which are appointed by the Governor,
chosen from a list of nominees submitted by the Speaker, and two of which
are appointed by the Lieutenant Governor.  Requires the governing body of
the Commission to meet at least quarterly, rather than monthly.  Provides
that the executive director or the executive director's designee may serve
as the Commission's representative on various boards and committees where
representation by the Commission is required, unless the presiding officer
of the Commission elects to personally serve or appoints a specific
person.  Requires the Commission to have an appropriate number of deputy
director positions, rather than mandating three associate deputy
directors. Authorizes, rather than requires, the Commission to operate a
central supply store and requires the Commission to devise an appropriate
method of billing method for use of the store.  Deletes the requirement
that the Commission send a monthly purchase voucher to each entity using
the store. Authorizes, rather than requires, the Commission to maintain a
facility to repair office machines. 

C.S.H.B. 2 requires the Department of Information Resources to create a
program that automatically generates letterhead for a state agency on an
agency computer. 

C.S.H.B. 2 repeals certain sections of the Government Code.

Part 6.Reserved.

Part 7.Personnel and Human Resources.

C.S.H.B. 2 delays Employee's Retirement System contributions for the first
90 days of employment for new hires and persons who are reemployed and
have withdrawn contributions.  Allows new employees to purchase credit for
during the 90-day waiting period on a cost-neutral basis. 

C.S.H.B. 2 allows for cost-sharing if an employee prefers to not
participate in ordering prescriptions through the mail order process. 

C.S.H.B. 2 requires agencies with more than 500 or more full-time
equivalent employees to achieve a ratio of human resources personnel to
employees of not more than 1:100.  Requires the Council on Competitive
Government to determine the cost-effectiveness of consolidating or
outsourcing the human resources functions of agencies with fewer than 500
full-time equivalent employees. 

C.S.H.B. 2 eliminates state-paid health insurance for state board and
commission members or their dependents. 

C.S.H.B. 2 allows agencies to make salary bonus payments of up to $5,000
under certain circumstances when hiring new employees or to retain current
employees.  Requires repayment if the employee discontinues employment
during the first year.  Establishes a management performance program
administered within executive branch agencies requiring the governing body
of a state agency to enter into agreements with employees who serve in
upper management positions. 

C.S.H.B. 2 imposes limitations on the allowable management to staff ratio
at state agencies, equal to 1:8 in fiscal year 2004, 1:9 in fiscal year
2005, 1:10 in fiscal year 2006 and 1:11 afterwards. Agencies would have to
reduce management staff to meet the ratios. 

C.S.H.B. 2 repeals certain sections of the Government Code.

Part 8.Environment

C.S.H.B. 2 establishes procedures for providing public notice, opportunity
for public comment, and an opportunity for a non adjudicative hearing for
certain permits issued by the Commission on Environmental Quality related
to water quality control, injection wells, and solid waste disposal
facilities, and the Clean Air Act.  Requires hearings on applications for
issuance, amendment,  modification, or renewal of certain permits to be
conducted as non adjudicative hearings and not as contested case hearings
after the close of the public comment period if there is significant
public interest in the application.  Requires the Commission to establish
the form, content, and timing of the notice and duration of the public
comment period; requires the Commission to mail notice to the state
senator and representative of the general area in which the facility is
located or proposed to be located; requires applicants to publish notice
in newspaper of general circulation; provides statutory consistency for
public notice, comment, and meeting requirements; makes state notice
requirements for permitting actions consistent with federal program
requirements that public notice be issued after technical review of the
application is complete and a draft permit is issue. If necessary to
satisfy federal authorization requirements, the executive director of the
Commission is required  to prepare and file a response to each submitted
significant written comment, a fact sheet describing the principal facts
and significant legal and policy issues is to be filed  if a response to
each individual comment is not required for federal authorization. 

C.S.H.B. 2 allows the Commission on Environmental Quality to issue a
general permit to authorize a regulated activity for a category of
entities if operations are the same or substantially similar, enforceable
compliance can be monitored and does not conflict with maintenance of
federal program authorizations. Specifies requirements for notice, public
meetings and comments, procedures, time limits  for issuance or denial,
and fees related to permit issuance.  Specifies that Commission actions
related to general permits are not to be conducted as contested cases.
Establishes time limit for issuance or denial of such permits. 

C.S.H.B. 2 eliminates pre-hearings by the Commission on Environmental
Quality on parties and issues related to permits for regulated activities.
Creates a standard for determining affected parties based on distance to
the facility, group composition  and the nature of the application.  

C.S.H.B. 2 allows the Commission on Environmental Quality not to hold a
contested case hearing before issuing a new or renewed permit if the
permit action has been noticed and the public has been provided an
opportunity to comment on the action and request a non adjudicative
hearing.  Provides that a public meeting is not required for a new
municipal solid waste facility that is authorized by registration.
Provides for renewal of a permit for treatment, storage, or disposal of
solid waste if the renewal application does not include any changes to the
existing permit.  Provides that permits for new arid exempt landfills
designated to the disposal of brush, construction, and demolition waste
and new animal crematory facilities are subject to notice and comment but
not contested case hearings. 

C.S.H.B. 2 provides for notice and opportunity for non adjudicative
hearings for existing facility permits, electric generating facilities,
pipeline facilities, and voluntary emission reduction permit applications.
Deletes the requirement to publish notice of intent to obtain a permit
pursuant to Section 382.056 of the Health and Safety Code and provides
that applications for multiple plant permits are subject to notice and
opportunity for hearing; provides authority to require additional notice. 

C.S.H.B. 2 provides that an amendment, modification, or renewal of a
permit that would not result in an increase in allowable emissions and
would not result in the emission of an air contaminant not previously
emitted is subject to notice.  Provides that an application for a permit
amendment is not subject to notice and opportunity for a contested case
hearing if the total emissions increase from all facilities authorized
meet the de minimis criteria and there is no change in character of
emissions. Provides that certain applications for permit, permit
amendment, or permit renewal are only subject to notice and opportunity
for a non-adjudicative hearing.  Applications are subject to contested
case hearing if the applicant's compliance history is unacceptable to the
commission based on certain criteria.   

C.S.H.B. 2 repeals the exemption for notice for de minimis facilities that
have no change in character of emissions and the exemption for notice of
certain agricultural facilities if the total emissions increase from all
facilities authorized under the amendment is not significant and there
will be no change in character of emissions.  

C.S.H.B. 2 repeals provisions related to performance-based regulation by
the Commission on  Environmental Quality.  Eliminates the compliance
history classification system administered by the Commission and replaces
the current rating and ranking system with an "acceptable" or
"unacceptable" determination made by the Commission on matters involving a
permittee or applicant. 

C.S.H.B. 2 establishes a separate, operating fee account in the state
treasury for future Title V emissions fees.  Requires that any balance
remaining in the account at the end of a fiscal be used in subsequent
fiscal years to cover the costs of developing and administering the Texas
Title V operating permit program. 

C.S.H.B. 2 Repeals provisions relating to Interagency Council, Oil Spill
Oversight Council, Coastal Discharge Contingency Plan, notice to Railroad
Commission relative to certain applications, and transfers Railroad
Commission jurisdiction over coastal spills from exploration and
production facilities of 240 barrels or less to the General Land Office. 

C.S.H.B. 2 repeals certain reporting requirements of the Commission on
Environmental Quality. 

C.S.H.B. 2 repeals provisions related to purchasing or leasing
requirements for mass transit, local government, private, and state fleet
vehicles related to the Texas Clean Fleet program. 

C.S.H.B. 2 requires the Department of Agriculture to grant funds to
producers of fuel ethanol and biodiesel as an incentive for the
development of the renewable fuel industry in Texas.  Specifies
eligibility and reporting requirements, composition of the fund created to
administer the program, and requirements related to grants made under the
program. 

C.S.H.B. 2 repeals certain sections of the Water Code, certain sections of
the Health and Safety Code, certain sections of the Government Code,
certain sections of the Natural Resources Code, certain sections of the
Transportation Code. 

Part 9.Education

C.S.H.B. 2 removes the Building and Procurement Commission's authority and
designates the Department of Public Safety as the primary agency charged
with school bus safety standards. 
 

C.S.H.B. 2 prohibits the Higher Education Coordinating Board from issuing
student loans on or after July 1, 2003 if the act takes effect before that
date or September 1, 2003.  Requires the Board to adopt a plan for
discontinuing the student loan program and selling the loans to one or
more qualified student loan purchasers not later than January 1, 2004;
specifies the process for purchases, including an independent appraisal of
the portfolio value and requires the Board to use proceeds from the sale
to retire any outstanding bond debt.  Specifies the process for
disposition of any remaining funds. Allows the Board to not sell its
student loan portfolio if it determines that the proceeds from the sale
will be less than the amount necessary to retire the outstanding debt on
bonds issued to finance loans. Requires that any portion of the state
private activity bond ceiling that is available exclusively to the Board
as an issuer of qualified student loan bonds be allocated in equal amounts
to purchasers of the student loans held by the Board. 

Part 10.Insurance.

C.S.H.B. 2 requires the dormancy period for funds received for the
ownership shares of demutualized insurance companies to begin either on
the date of last contact or the date of demutualization, whichever is
earlier.  Requires the holder of property subject to delivery under
demutualization to deliver the property and required reports to the
Comptroller on or before August 1. 

Part 11.Reserved.

Part 12.Business and Commerce.

 C.S.H.B. 2 requires agencies to analyze the economic impact of a proposed
rule on small businesses and require agencies to conduct a regulatory
flexibility analysis that includes the agency's consideration of
alternative methods of achieving the purpose of the proposed rule,
including several 
proposed methods of reducing the adverse impact of a rule on a small
business.  Directs agencies to include the economic impact statement and
regulatory flexibility analysis as a part of the notice of the proposed
rule for publication and for notice to standing committees that are
charged with reviewing the proposed rule.  Allows small businesses
adversely affected by a rule to judicial review of the agency's compliance
with the legislation requiring the rule.  Requires that the new provisions
concerning economic impact statements and regulatory flexibility analysis
apply to all rules adopted on or after January 1, 2004. It would require
all agencies, by September 1, 2007, to have reviewed all rules adopted
before January 1, 2004, to determine whether any rule has an adverse
economic impact on small businesses. 

Part 13.Ad Valorem Taxation.

C.S.H.B. 2 creates the State Board on Property Valuation consisting of
five members appointed by the Governor; specifies terms of members and
eligibility and requirements to serve on the Board. Requires the Board to
employ a commissioner to employ and supervise staff appropriate to carry
out the Board's functions.  Allows the Comptroller to provide
administrative support to the Board by interagency contract.  Transfers
all responsibility for administering appraisal district accountability and
establishing minimum standards for the administration and operation of
appraisal districts from the Comptroller of Public Accounts to the Board. 

C.S.H.B. 2 allows the commissioner of the State Board on Property
Valuation to audit the total taxable value of property in a school
district on request of a school district or the Commissioner of Education.
Requires the commissioner to conduct a ratio study in each appraisal
district for each tax year to determine the degree of uniformity of and
the median level of appraisals by the appraisal district within each major
category of property for that tax year.  Specifies the process for
conducting study and required contents. 

C.S.H.B. requires the commissioner of the State Board on Property
Valuation to review the appraisal standards, procedures, and methodology
used by each appraisal district to determine compliance with generally
accepted appraisal standards and practices.  Specifies the process for
delivery of findings and process for remedial action. 

C.S.H.B. requires the commissioner of the State Board on Property
Valuation to audit the performance of an appraisal district under certain
conditions according to the results of each of two consecutive ratio
studies conducted.  Specifies deadlines for completion of audits; scope
and manner of audits; notice provisions; reporting requirement, and the
disposition of the costs or conducting the audits. 

C.S.H.B. 2 repeals Sections 5.10, 5.102, 5.12, and 5.13, Tax Code; and
Subchapter M, Chapter 403, Government Code. 

C.S.H.B. 2 provides that in the event of any conflict between a provision
of the Act and another Act passed during the 78th Legislature, Regular
Session, that becomes law, this act prevails and controls, regardless of
the relative dates of enactment. 
  

EFFECTIVE DATE

Part 1
September 1, 2003.

Part 2
September 1, 2003.

Part 3
September 1, 2003.
 Part 4
September 1, 2003, except that article 4B takes effect upon passage, or if
the Act does not receive the necessary vote, the article takes effect
September 1, 2003, 

Part 5
September 1, 2003, except that the Department of Transportation or another
state agency is not required to use the Owner-Controlled Insurance Program
for Public Works until the Building and Procurement Commission has
implemented the insurance program; changing the composition of the Board
of Building and Procurement occurs January 31, 2007. 

Part 7
September 1, 2003, except that the one year period for agencies to comply
with management to staff ratios of 1:8 takes effect September 1, 2003, 1:9
takes effect September 1, 2004, 1:10 takes effect September 1, 2005, and
1:11 takes effect September 1, 2006. 

Part 8
September 1, 2003, except the requirement that the Comptroller make
transfers under Section 16.004(c), Agriculture Code, as added by this Act
does not take effect until after the fiscal biennium ending August 31,
2005. 

Part 9
September 1, 2003, except the prohibition against the Higher Education
Coordinating Board making a student loan takes effect July 1, 2003, or, if
the Act does not receive the necessary vote, the provision takes effect
September 1, 2003. 

Part 10
September 1, 2003.

Part 12
September 1, 2003, except that the required analysis of small business
impact of agency rules applies only to a rule that is adopted on or after
January 1, 2004. 

Part 13
Upon passage, or, if the Act does not receive the necessary vote, the Part
takes effect September 1, 2003. 



COMPARISON OF ORIGINAL TO SUBSTITUTE

Part 1

C.S.H.B. 2 adds new language to broaden the qualifications for persons
eligible to be appointed to serve as Adjutant General. 

C.S.H.B. 2 allows state agencies that provide health insurance or health
benefits to provide their program in accordance  with the ruling of the
United State Internal Revenue Service authorizing reimbursement
arrangements. 

C.S.H.B. 2 provides for the increased coordination of provision of public
transportation in the state.  

C.S.H.B. 2 adds new language that excepts certain entities from disclosure
of budgetary working documents under Section 552, Government Code. 

C.S.H.B. 2 adds new language to change the terms of  the Texas Workers'
Compensation Commissioners to two-year terms from staggered six-year
terms. 

C.S.H.B. 2 adds new language to change the number of members of the Board
of Pardons and Paroles Policy Board from six members to seven. 
 
C.S.H.B. 2 adds new language to remove the requirement that no more than
one member of the Veterans Commission may be from a senatorial district
composed of a single county. 

C.S.H.B. 2 adds new language to allow the Governor to issue executive
orders to change the organization and operations of a state agency within
the executive branch, including institutions of higher education other
than a public junior college. 

C.S.H.B. 2 adds new language to reduce the size of the Higher Education
Coordinating Board from eighteen to nine members. 

C.S.H.B 2 modifies the original to add the State Board of Plumbing
Examiners, manufactured housing regulation, the Structural Pest Control
Board, the Funeral Services Commission, and the Board of Professional
Geoscientists to the agencies and functions which are transferred to the
Department of Licensing and Regulation. 

C.S.H.B. 2 adds new language to transfer the Office of State-Federal
Relations to the Governor's Office. 

C.S.H.B. 2 adds new language to require the Governor to present a copy of
the Governor's budget to the legislature before the State of the State
address, rather than within the first six days of the legislative session.
Deletes the criminal penalty for a person who refuses to perform duties
related to the Governor's budget. 

C.S.H.B. 2 adds new language to provide that the Commissioner of Insurance
serves a one-year, rather than two-year, term of office and changes
qualifications for individuals to serve as commissioner. 

C.S.H.B 2 modifies the original to transfer the Commission on Private
Security to the Department of Public Safety, rather than the Department of
Licensing and Regulation. 

C.S.H.B. 2 adds new language to allow the Governor to consider geographic
and the balance of rural and urban representation when making appointments
to the Parks and Wildlife Department board. 

C.S.H.B. 2 adds new language to provide that the Governor designate a
member of the governing body of each state agency, university system,
institution of higher education, and river authority as the presiding
officer to serve at the pleasure of the Governor. 

C.S.H.B. 2 adds new language to require the Department of Criminal Justice
to report on the costs and feasibility of providing cognitive behavior
training to corrections officers, to conduct a study evaluating the
organizational efficiency of the Department. 

C.S.H.B 2 removes the provision in the original which transferred the
Structural Pest Control Board to the Texas Department of Agriculture. 

C.S.H.B 2 removes the provision in the original which required the Finance
Commission to identify and implement cost savings by combining
administrative functions performed by the finance agencies. 

C.S.H.B 2 removes the provision in the original which transferred the
Military Facilities  
Commission to the Adjutant General's Department.

C.S.H.B 2 removes the provision in the original which transfers the Jail
Standards Commission to the Texas Department of Criminal Justice. 

C.S.H.B 2 removes the provision in the original which transfers all
administrative hearings to the State Office of Administrative Hearings. 

C.S.H.B 2 removes the provisions in the original which create the State
Administrative Services Agency by consolidating the Department of
Information Resources and the Building and  Procurement Commission. 

C.S.H.B 2 removes the provision in the original which abolished the Texas
Council on Environmental Technology. 

C.S.H.B 2 removes the provision in the original which transferred the
Commission on State Emergency Communications to the Public Utility
Commission. 

C.S.H.B 2 removes the provisions in the original which created the
Department of Professional Licensing by consolidating the functions of the
State Board of Public Accountancy, Board of Professional Engineers, and
Board of Architectural Examiners. 

Part 2

C.S.H.B. 2 adds new language to create the Texas Enterprise Fund as an
account in the general revenue fund for economic development,
infrastructure, and job training and creation programs. Allows the
Governor to negotiate on behalf of the state to grant money from the fund
with the consent of the Lieutenant Governor and Speaker of the House. 

C.S.H.B. 2 adds new language to require the Railroad Commission to assess
and collect fees on railroads operating in the state to cover the costs of
administering the rail safety program. 

C.S.H.B. 2 adds new language to require agencies to determine if capital
items could be funded through savings from a contract for energy utility
conservation measures. 

C.S.H.B. 2 adds new language to require the Comptroller of Public
Accounts, in cooperation with the Texas Department of Transportation, to
adopt rules for determining the standard presumptive value of a motor
vehicle subject to the sales tax.  Prohibits the transfer of a motor
vehicle title if the sales price is less than the standard presumptive
value of the vehicle.  Specifies the manner and amounts of motor fuels
taxes the Comptroller is to withhold from the state highway fund if the
Department has not fully implemented the registration and title system by
September 1, 2003. 

C.S.H.B. 2 adds new language to add the State Auditor to the entities with
statutory oversight of regional planning commissions. 

C.S.H.B. 2 adds new language to allow the Governor to negotiate on the
state's behalf in economic pursuits and specifies the categories of funds
the Governor may obligate for economic development. 

C.S.H.B 2 modifies the original to change application of $200 fee increase
for registration or renewal of a license from property tax professionals
to property tax consultants. 

C.S.H.B 2 modifies the original to include the Governor's Office in the
development of a system of performance measures used by state agencies in
the appropriations process.  Modified the original to reference the
Governor, rather than the Governor's Office of Budget and Planning, in the
requirement the Legislative Budget Board and the Governor develop
recommendations for the improvement of the strategic planning process. 

C.S.H.B 2 removes the provision in the original which required the Animal
Health Commission to set and collect fees to recover at least 25 percent
of its costs. 

C.S.H.B 2 removes the provision in the original which required the
Railroad Commission to set and collect fees to recover its costs. 

C.S.H.B 2 removes the provision in the original which required the
Commission on Environmental Quality to set and collect fees to recover its
costs. 

C.S.H.B 2 removes the provisions in the original which required the State
Auditor to develop fraud awareness training, required state agencies to
provide training, and allowed the Comptroller to verify that an agency had
completed the training. 
 
Part 3

C.S.H.B. 2 adds new language to require a state agency with 10 or more
motor vehicles to reduce total fuel consumption by at least 5 percent from
fiscal year 2002 consumption levels. 

C.S.H.B. 2 adds new language to require the Department of Transportation,
under the direction of the state energy conservation office, to
demonstrate the effectiveness of at least four fuel-saving technologies on
a combined maximum of 100 motor vehicles to determine the technologies
that may reduce fuel consumption and save state revenue. 

C.S.H.B 2 modifies the original to delete energy management from the
facilities management duties of the Building and Procurement Commission;
adds language ensuring that the Capitol Building, Extension, and any other
facilities maintained by the Preservation Board are exempted; and adds
language exempting military facilities, institutions of higher education,
prisons, and residences. Modifies the original by requiring the State
Energy Conservation Office to provide utility management services for
state agencies for which the Building and Procurement Commission provides
facility management services. 

C.S.H.B. 2 adds new language to abolish the Recycling Market Development
Board and transfer its functions to the Governor's Office, the Commission
on Environmental Quality, the Department of Economic Development, and the
Building and Procurement Commission. 

C.S.H.B. 2 adds new language to require the Building and Procurement
Commission to develop private, commercial uses for state-owned parking
lots and garages located within the City of Austin. 

C.S.H.B. 2 adds new language to clarify that the Building and Procurement
Commission may lease certain space for state agencies.  Authorizes the
Commission to revoke a delegation of authority to another state agency to
enter into lease contracts for space. 

C.S.H.B. 2 adds new language to allow the Transportation Commission to
sell the Bull Creek campus with the revenue credited to the state highway
fund.  Allows the commission to purchase or acquire the State Aircraft
Pooling Board property and adjacent property located at the former Robert
Mueller Municipal Airport in Austin by eminent domain as replacement
property. 

C.S.H.B. 2 adds new language to change the limitation on the allocation of
space to an average of 135 square feet per employee from 153 square feet
per agency employee. 

C.S.H.B. 2 adds new language to delete the requirement that the Building
and Procurement Commission solicit and consider comments from the asset
management division of the General Land Office before the Commission
leases public ground for agricultural or commercial purposes or leases
space in a state-owned building to private tenants. 

C.S.H.B. 2 adds new language to require the Building and Procurement
Commission to stipulate the use of recycled steel as one of the components
in its requests for proposals when appropriate, including all building
construction projects of the state. 

C.S.H.B 2 modifies the original by deleting the requirement that the
Department of Transportation implement the recommendations of the General
Land Office's evaluation of real property. 

C.S.H.B 2 removes the provisions in the original which related to use and
management of state property; including information on real property and
the creation of the Texas Agency Infrastructure Commission. 

C.S.H.B 2 removes the provision in the original which required an
assessment of using state land for public hunting. 

Part 4

C.S.H.B. 2 adds new language to require the Legislative Budget Board to
review and approve or  disapprove an agency's biennial operating plan or
amendment within 60 days of receipt.  Requires the board of the Department
of Information Resources to adopt rules to establish department standards.
Requires the Department to provide the Legislative Budget Board with a
list of agencies that have not complied with standards, provisions of the
strategic plan, or corrective action plans. 

C.S.H.B. 2 adds new language to increase the size of the TexasOnline
authority from 15 to 17 members and modifies the member qualifications. 

C.S.H.B. 2 adds new language to require a state agency using TexasOnline
to advertise the option of completing their transactions on-line and
requires state agencies with Internet sites to include a link to
TexasOnline on the front page of the Internet site. 

C.S.H.B. 2 adds new language to authorize the TexasOnline Authority to
charge a reasonable convenience fee to a license holder who uses the
project for on-line issuance or renewal of a license. Authorizes the
authority to exempt a licensing entity from subscription fees if the
licensing entity has established an Internet portal that is performing
cost-effective on-line license renewal. 

C.S.H.B. 2 adds new language to provide that a contract entered into
between the TexasOnline Authority and another entity is not void for the
sole reason that a member of the authority also serves on the governing
body of the entity with whom the contract was entered.  Authorizes the
Department of Information Resources to exercise all intellectual property
rights regarding TexasOnline.  Provides that for purposes of TexasOnline,
the renewal of a motor vehicle registration is a state service. 

C.S.H.B. 2 adds new language to require the Comptroller of Public
Accounts, contracting with a private vendor, to establish a common
electronic infrastructure through which state agencies administer their
work site benefits plans. 

C.S.H.B. 2 adds new language to require the Workforce Commission to use
TexasOnline to furnish appropriate electronic records to eligible
individuals. 

C.S.H.B. 2 adds new language to allow the Department of Public Safety to
adopt rules that authorize inspection stations to purchase inspection
certificates and transmit information using TexasOnline. 

C.S.H.B 2 removes the provisions in the original which related to
enhancement and improvement of information capabilities, return on
investment program, review of information systems, recording and storage
of records, centralization of information and assistance, and internet
registration system. 

Part 5

C.S.H.B. 2 adds new language to require the Department of Transportation
to require contractors to use an owner-controlled insurance program,
managed by the Texas Building and Procurement Commission.  Requires the
Commission to contract with one or more private vendors to develop the
program required to be used by state agencies for public works projects. 

C.S.H.B. 2 adds new language relating to the Commission on Private
Initiative to administer the state's participation in a program
contracting for correctional facilities and services.  Requires the
Commission to establish a daily "price to beat" per diem rate for
facilities operated by the Department or under contract. 

C.S.H.B. adds new language to transfer employees and funds from the
private facilities division of the Department of Criminal Justice to the
Commission on Private Initiative. 

C.S.H.B. 2 repeals the requirement state agencies file a report with the
Legislative Budget Board that identifies certain contract awards to
nonresident bidders.  Requires the office of vehicle fleet management
within the Building and Procurement Commission to provide monthly reports
to agencies to assist in the management of their vehicle fleet.  Deletes
the requirement the Commission deposit the proceeds for the sale or
surplus or salvage property to the  account that the agency used to
purchase the vehicle and requires the funds to be deposited in the general
revenue fund, except in special circumstances. 
 
C.S.H.B. 2 adds new language to delete the requirement an institution of
higher education consider the use of material in construction or repair to
real property that is not proprietary to a single vendor unless the
institution provides written justification.  Exempts obtaining outside
legal counsel services, expert witnesses, or litigation-related goods and
services from the State Purchasing Act. Delegates the fire fighters'
pension commissioner all purchasing functions relating to the purchase of
goods and services from non-general revenue funds for fiduciary duties of
the retirement fund. 

C.S.H.B. 2 adds new language to allow the Building and Procurement
Commission to collect rebates from vendors under a contract listed on the
multiple award contract schedule.  Modifies the catalogue purchasing
process to remove the requirement that the vendor apply and be designated
by the Commission as a qualified information system vendor.  Transfers
responsibilities related to statewide contract management from the State
Auditor's Office and the Office of Attorney General to the Building and
Procurement Commission. 

C.S.H.B. 2 adds new language to allow a state agency to contract for legal
services and specifies that the Professional Services Procurement Act does
not apply to a contingent fee for legal services. Allows the Attorney
General to require state agencies to obtain outside legal services through
a competitive procurement process. 

C.S.H.B. 2 adds new language to prohibit a state agency from spending more
than the amount authorized for the cost of a project unless the Governor
and the Legislative Budget Board approve the expenditure. 

C.S.H.B. 2 adds new language to prohibit the Commission on Environmental
Quality from amending, interpreting, impairing, or modifying a wholesale
water contract.  Requires a written petition to include information that
the petitioner has not entered into a contract with the party owning or
controlling the water supply. 

C.S.H.B. 2 adds new language to authorize, rather than require, the
Building and Procurement Commission the option of negotiating travel
services contracts with private entities.  Eliminates the requirement that
the Commission maintain at least one contract with a provider of travel
services. 

C.S.H.B. 2 adds new language to provide that the Building and Procurement
Commission consists, after January 31, 2007, of five members appointed by
the Governor.  Requires the governing body of the Commission to meet at
least quarterly, rather than monthly.  Requires the Commission to have an
appropriate number of deputy director positions, rather than mandating
three associate deputy directors.  Authorizes, rather than requires, the
Commission to operate a central supply store or maintain a facility to
repair office machines. 

C.S.H.B 2 removes the provision in the original which related to contracts
for transportation brokerage services. 

C.S.H.B 2 removes the provision in the original which allow junior college
employees to participate in the Building and Procurement Commission's
contract for travel services. 

C.S.H.B 2 removes the provisions in the original which related to highway
maintenance pilot projects, reverse auctions, just-in-time inventory pilot
programs, supply chain management training, valuation of warehouse space,
prequalification-based bidding, and use of warranties. 

Part 6

C.S.H.B 2 removes the provisions in the original which related to health
and human services issues. 

Part 7

C.S.H.B. 2 adds new language to delay Employee's Retirement System
contributions for the first 90 days of employment for new hires and
persons who are reemployed and have withdrawn contributions.  Allows new
employees to purchase credit for during the 90-day waiting period on a
cost-neutral basis. 
 
C.S.H.B. 2 adds new language to require employees to cost-share if they
prefer to not participate in a mail order prescription program. 

C.S.H.B 2 modifies the original by requiring the Council on Competitive
Government to determine the cost-effectiveness of consolidating or
outsourcing the human resources functions of agencies with fewer than 500
full-time equivalent employees, rather than mandating the consolidation;
deletes the consolidation requirements for small agencies. 

C.S.H.B. 2 adds new language to eliminate state-paid health insurance for
state board and commission members or their dependents. 

C.S.H.B 2 modifies the original by adding an appeal to the Governor for an
exemption to the management to staff ratios mandated in the bill. 

C.S.H.B 2 removes the provision in the original which related to workforce
planning. 

C.S.H.B 2 removes the provision in the original which addressed the
Department of Transportation's allocation of employees. 

Part 8

C.S.H.B. 2 adds new language to establish procedures for providing public
notice, opportunity for public comment, and an opportunity for a non
adjudicative hearing for certain permits issued by the Commission on
Environmental Quality related to water quality control, injection wells,
and solid waste disposal facilities, and the Clean Air Act. 

C.S.H.B. 2 adds new language to allow the Commission on Environmental
Quality to issue a general permit to authorize a regulated activity for a
category of entities if operations are the same of substantially similar.
Specifies that Commission actions related to general permits are not to be
conducted as contested cases. 

C.S.H.B. 2 adds new language to eliminate pre-hearings by the Commission
on Environmental Quality on parties and issues related to permits for
regulated activities.  Creates a standard for determining affected parties
based on distance to the facility and the nature of the application. 

C.S.H.B. 2 adds new language to provide that the Commission on
Environmental Quality need not hold a contested case hearing prior to
issuance of a new or renewed permit if the permit action has been noticed
and the public has been provided an opportunity to comment and request a
non adjudicative hearing. 

C.S.H.B. 2 adds new language to provide that a public meeting is not
required for a new municipal solid waste facility that is authorized by
registration.  Provides for renewal of a permit for treatment, storage, or
disposal of solid waste if the renewal application does not include any
changes to the existing permit. 

C.S.H.B. 2 adds new language to provide that permits for new arid exempt
landfills designated to the disposal of brush, construction, and
demolition waste and new animal crematory facilities are subject to notice
and comment but not contested case hearings. 

C.S.H.B. 2 adds new language to delete the exemption for notice for de
minimis facilities that have no change in character of emissions.  Deletes
the exemption for notice of certain agricultural facilities if the total
emissions increase from all facilities authorized under the amendment is
not significant and there will be no change in character of emissions.
Allow non adjudicative hearings if there is substantial public interest. 

C.S.H.B. 2 adds new language to provide for notice and opportunity for non
adjudicative hearings for existing facility permits, electric generating
facilities, pipeline facilities, and voluntary emission reduction permit
applications. 

 C.S.H.B. 2 adds new language to provide that an amendment, modification,
or renewal of a permit that would not result in an increase in allowable
emissions and would not result in the emission of an air contaminant not
previously emitted is subject to notice, but the Commission may hold a
contested case hearing. 

C.S.H.B. 2 adds new language to repeal provisions related to
performance-based regulation by the Texas Commission on Environmental
Quality.  Eliminates the compliance history classification system
administered by the  Commission and replaces the current rating and
ranking system with an "acceptable" or "unacceptable" determination made
by the Commission when acting on a matter involving a permittee or
applicant. 

C.S.H.B. 2 adds new language to establish a separate, operating fee
account in the state treasury for all future Title V emissions fees and
clarifies that any balance remaining in the account at the end of a fiscal
year must be used in subsequent fiscal years solely to cover costs of
developing and administering the Texas Title V operating permit program. 

C.S.H.B. 2 adds new language to transfer the Railroad Commission's
jurisdiction over coastal spills from exploration and production
facilities of 240 barrels or less to the General Land Office. 

C.S.H.B. 2 adds new language to repeal certain reporting requirements of
the Commission on Environmental Quality. 

C.S.H.B. 2 adds new language to repeal provisions related to purchasing or
leasing requirements for mass transit, local government, private, and
state fleet vehicles related to the Texas Clean Fleet program. 

C.S.H.B. 2 adds new language to require the Department of Agriculture to
grant funds to producers of fuel ethanol and biodiesel as an incentive for
the development of the renewable fuel industry in Texas. 

Part 9

C.S.H.B. 2 adds new language to remove the Building and Procurement
Commission's authority and designate the Department of Public Safety as
the primary agency charged with school bus safety standards. 


C.S.H.B. 2 adds new language to prohibit the Higher Education Coordinating
Board from issuing student loans on or before September 1, 2003.  Requires
the Board to adopt a plan for discontinuing the student loan program and
selling the loans to one or more qualified student loan purchasers not
later than January 1, 2004.  Requires the Board to use proceeds from the
sale to retire any outstanding bond debt.  Allows the Board to not sell
its student loan portfolio if it determines that the proceeds from the
sale will be less than the amount necessary to retire the outstanding debt
on bonds issued to finance loans. 

Part 10

C.S.H.B. 2 adds new language to require the dormancy period for funds
received for the ownership shares of demutualized insurance companies to
begin either on the date of last contact or the date of demutualization,
whichever is earlier. 


Part 12

C.S.H.B. 2 adds new language to require agencies to analyze the economic
impact of a proposed rule on small businesses and require agencies to
conduct a regulatory flexibility analysis that includes the agency's
consideration of alternative methods of achieving the purpose of the
proposed rule.  Allows small businesses adversely affected by a rule to
judicial review of the agency's compliance with the bill with respect to
the rule. 
 
Part 13

C.S.H.B. 2 adds new language to create the State Board on Property
Valuation consisting of five members appointed by the Governor.  Transfers
all responsibility for administering appraisal district accountability and
establishing minimum standards for the administration and operation of
appraisal districts from the Comptroller of Public Accounts to the Board. 

C.S.H.B. 2 adds new language to allow the commissioner of the State Board
on Property Valuation to audit the total taxable value of property in a
school district on request of a school district or the Commissioner of
Education.  Requires the commissioner to conduct a ratio study in each
appraisal district for each tax year to determine the degree of uniformity
of and the median level of appraisals by the appraisal district within
each major category of property for that tax year.  Requires the
commissioner to review the appraisal standards, procedures, and
methodology used by each appraisal district to determine compliance with
generally accepted appraisal standards and practices.  Requires the
commissioner to audit the performance of an appraisal district under
certain conditions according to the results of each of two consecutive
ratio studies conducted.