C.S.S.B. 1952 78(R)    BILL ANALYSIS


C.S.S.B. 1952
By: Ellis, Rodney
Government Reform
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

To achieve the cost savings and revenue necessary to finance state
government, C.S.S.B. 1952 implements various reorganization, efficiency,
and reform measures.  C.S.S.B.1952 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) and SECTION 1K.15. 

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.03 (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 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).  It is the opinion of the committee that
rulemaking authority is expressly granted to the Texas Building and
Procurement Commission in  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,
and 497.060). Rulemaking authority is expressly granted to the Texas
Building and Procurement Commission 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). It is the
opinion of the committee that rulemaking authority is expressly
transferred from the Office of the Attorney General and the State Auditor
to the Texas Building and Procurement Commission in 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 and 361.124, 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 (Section 27.051, 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 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 granted to the State Board on Property
Valuation in SECTION 13A.23 (Section 5.01, Tax Code) and in SECTION 13A.24
(Section 5.03, 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), and SECTION 13A.112. 


ANALYSIS

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

C.S.S.B. 1952 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.S.B. 1952 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.S.B. 1952 defines what constitutes a budgetary working paper, and
excepts certain entities from disclosure required under Chapter 552,
Government Code. 

C.S.S.B.1952 changes the terms of  the Workers' Compensation Commissioners
to two-year terms from staggered six-year terms. 

C.S.S.B. 1952 changes the number of members of the Board of Pardons and
Paroles Policy Board from six members to seven. 

C.S.S.B. 1952 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.S.B. 1952  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.S.B. 1952  reduces the size of the Higher Education Coordinating Board
from 18 to nine members. 

C.S.S.B. 1952 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. Changes number of  Commission  members for the Department
from six to seven. 

C.S.S.B. 1952 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.S.B. 1952 provides for the increased coordination of provision of
public transportation in the state.   
C.S.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 abolishes the Commission on Private Security and transfers
its functions to Department of Public Safety. 

C.S.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 adds the State Auditor to the entities with statutory
oversight of regional planning commissions and specifies the
responsibilities of the Auditor. 

C.S.S.B. 1952 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.S.B. 1952 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.S.B. 1952 Sets forth qualifications for unclaimed wages.

C.S.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 repeals certain sections of the Government Code.

Part 4.Management of Information Technology.

C.S.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 repeals certain sections of the Government Code.

Part 5.State Contracting and Procurement.

C.S.S.B. 1952 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.S.B. 1952 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.  

C.S.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 requires the Department of Information Resources to create a
program that automatically generates letterhead for a state agency on an
agency computer. 

C.S.S.B. 1952 repeals certain sections of the Government Code.

Part 6.Reserved.

Part 7.Personnel and Human Resources.

C.S.S.B. 1952 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.S.B. 1952 allows for cost-sharing if an employee prefers to not
participate in ordering prescriptions through the mail order process. 

C.S.S.B. 1952 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.S.B. 1952 eliminates state-paid health insurance for state board and
commission members or their dependents. 

C.S.S.B. 1952 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.S.B. 1952 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.S.B. 1952 repeals certain sections of the Government Code.

Part 8.Environment

C.S.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 repeals certain reporting requirements of the Commission on
Environmental Quality. 

C.S.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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. 

Part 10.Insurance.

C.S.S.B. 1952 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.Reserved.

Part 13.Ad Valorem Taxation.

C.S.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 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.S.B. 1952 repeals Sections 5.10, 5.102, 5.12, and 5.13, Tax Code; and
Subchapter M, Chapter 403, Government Code. 

C.S.S.B. 1952 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 10
September 1, 2003.

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
  
C.S.S.B. 1952 adds language regarding use of health reimbursement
arrangements. 

C.S.S.B. 1952 adds language regarding public information and disclosure of
budgetary working papers. 

C.S.S.B. 1952 adds language regarding the membership of the Texas Workers'
Compensation Commission, membership of the Board of Pardons and Paroles
Policy Board,  and members of the Texas Veterans' Commission. 

C.S.S.B. 1952 removes language regarding Joint Emergency Orders issued by
the Governor in cooperation with the Legislative Budget Board.  Language
is added that gives the Governor the power to issue executive orders
relating to state agencies for efficient management and operations. 

C.S.S.B. 1952 adds language relating to the abolition of 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 Texas Department of Licensing and Regulation. 

C.S.S.B. 1952 adds language relating to transferring the Office of
State-Federal Relations to the Governor's office.   

C.S.S.B. 1952 adds language regarding statewide coordination of public
transportation. 

C.S.S.B. 1952 adds language requiring the Texas Department of Criminal
Justice submit a report to the legislature regarding efficient
administration of the department. 

C.S.S.B. 1952 adds language regarding restrictions on capital expenditures
that could be otherwise paid for through savings associated with money
generated by a utility cost savings contract. 

C.S.S.B. 1952 adds language relating to oversight of regional planning
commissions. 

C.S.S.B. 1952 removes language relating to coordination of economic
development efforts and adds language relating to the economic development
powers of the Governor.   

C.S.S.B. 1952 adds language relating to the Texas Transportation
Institute's funding and deletes language related to the Economic Impact of
Lottery Contracts. 

C.S.S.B. 1952  adds language relating to the operations and accountability
of state agencies.   

C.S.S.B. 1952 adds language relating to reducing fuel costs in state
agencies with 10 or more motor vehicles and provides for a field test. 

C.S.S.B. 1952 adds language relating to the Recycling Market Development
program, and transfers the duties of the Board to the Governor's Office,
the Commission on Environmental Quality, the Department of Economic
Development, and the Building and Procurement Commission. 

C.S.S.B. 1952 adds language relating to the administration and functions
of the Texas Building and Procurement Commission, including provisions
relating to the lease of space for state agencies.   

C.S.S.B. 1952 adds an article regarding the state's management of
information technology.  This includes various provisions relating to the
use of Texas Online by state agencies, and specifically addresses issues
facing the Department of Information Resources.  Includes provisions
relating to online state benefits systems, the Texas Online Authority and
its meetings, as well as applications  of the Texas Online. 

C.S.S.B. 1952 adds language that would require the Texas Department of
Transportation to require contractors for highway projects to use an
owner-controlled insurance program, managed by the Texas Building and
Procurement Commission.   

C.S.S.B. 1952 adds language altering the composition of the Private Sector
Prison Industries Oversight Authority.  C.S.S.B. 1952 adds language that
would transfer employees and funds from the private facilities division of
the Department of Criminal Justice to the Commission on Private
Initiative, specifies that the department is responsible for contracts
with private vendors, and sets forth other provisions relating to
privatization of prisons. 

C.S.S.B. 1952 adds several provisions related to general state
procurement, administration, and the practices of the Texas Building and
Procurement Commission.  These include, but are not limited to,
provisions relating to vehicle fleet management, contracting for legal
services, permitting the Texas Building and Procurement Commission to use
rebates, and addresses the ability of the TBPC to negotiate travel
services contracts. 

C.S.S.B. 1952 adds language prohibiting the Commission on Environmental
Quality from amending, modifying, interpreting, or impairing a wholesale
water contract. 

C.S.S.B. 1952  adds language requiring the Department of Information
Resources to develop a program to generate letterhead for state agencies. 

C.S.S.B. 1952 removes language providing that TRS contributions for the
first 90 days be delayed for new hires and persons who are reemployed and
have withdrawn contributions. 

C.S.S.B. 1952 adds language relating to mail order prescriptions for
participants in the Texas Employees Group Health Benefit Plan. 

C.S.S.B. 1952 adds several provisions relating to the Texas Commission on
Environmental Quality. This includes, but is not limited to,  provisions
relating to nonadjudicative notice and hearing, public participation,
compliance history, and alternative fuels and vehicles. 

C.S.S.B. 1952 adds language relating to State Administration of Ad Valorem
Taxation.  Among other provisions, creates the State Board on Property
Valuation and allows the commissioner of the Board to audit the total
taxable value of property in a school district on request of a school
district or the Commissioner of Education.  Adds various other provisions
relating to the administration, responsibilities, and duties of the Board
and Commissioner. 

C.S.S.B. 1952 removes language relating to the approval of state security
(Art. 13, SB 1952) 
C.S.S.B. 1952 removes language relating to a joint interim committee on
post conviction exonerations (Art. 21, SB 1952) 
C.S.S.B. 1952 removes language relating to the Board of Pardons and
Paroles (Art. 23, SB 1952) 
C.S.S.B. 1952 removes language relating to limiting teacher paperwork,
education programs and services. (Art. 24, SB 1952) 
C.S.S.B. 1952 removes language relating to the Texas B-On-Time Loan
Program (Art. 25, SB 1952) 
C.S.S.B. 1952 removes language relating to the business of insurance (Art.
26, SB 1952) 
C.S.S.B. 1952 removes language relating to corporate ethics and integrity
(Art. 30, SB 1952) 
C.S.S.B. 1952 removes language relating to limitations applicable to
certain group insurance programs. (Art. 36, SB 1952) 
C.S.S.B. 1952 removes language relating to regulation of industrialized
housing (Art. 37, SB 1952). 
C.S.S.B. 1952 removes language relating to teleconference meeting of the
Legislative Budget Board (Art. 38, SB 1952) 
C.S.S.B. 1952 removes language regarding disclosure on political
advertising (Art. 39, SB 1952). 
C.S.S.B. 1952 removes language relating to the Texas A&M University-Corpus
Christi Natural Resoruces Center (Art. 40, SB 1952). 
C.S.S.B. 1952 removes language relating to the Texas Commission on
Environmental Quality Permitting authority (Art. 41, SB 1952) 
 C.S.S.B. 1952 removes language relating to the carrying of weapons by
certain officers and investigators (Art. 42, SB 1952). 
C.S.S.B. 1952 removes language relating to designating the poet laureate,
state musician, and state artists (Art. 43, SB 1952). 
C.S.S.B. 1952 removes language relating to school safety regulations and
safety training program (Art. 44, SB 1952). 
C.S.S.B. 1952 removes language relating to permits for certain concrete
plants (Art. 45, SB 1952). 
C.S.S.B. 1952 removes language relating to the Texas Department of Mental
Health and Mental Retardation, including language regarding voluntary
admission to a state school (Art. 46, SB 1952). 
C.S.S.B. 1952 removes language relating to preventing and detecting
identity theft (Art. 47, SB 1952). 
C.S.S.B. 1952 removes language relating to license plates (Art. 48, SB
1952). 
C.S.S.B. 1952 removes language relating to restrictions on certain
landfill permits (Art. 49, SB 1952). 
C.S.S.B. 1952 removes language relating to liquid wastes manifests (Art.
50, SB 1952). 
C.S.S.B. 1952 removes language relating to eminent domain jurisdiction for
certain civil courts at law (Art. 51, SB 1952). 
C.S.S.B. 1952 removes language relating to the Texas Next Step grant
program (Art. 52, SB 1952). 
C.S.S.B. 1952 removes language relating to the Texas Racing Commission
(Art. 53, SB 1952). 
C.S.S.B. 1952 removes language relating to regulation of bingo (Art. 54,
SB 1952). 
C.S.S.B. 1952 removes language relating to the organization of certain
state agencies (Art. 55, SB 1952). 
C.S.S.B. 1952 removes language relating to energy conservation in state
buildings (Art. 56, SB 1952). 
C.S.S.B. 1952 removes language relating to the Paul C. Moreno State Office
Building (Art. 57, SB 1952). 
C.S.S.B. 1952 removes language relating to the sale of desert plants (Art.
58, SB 1952). 
C.S.S.B. 1952 removes language relating to the continuing education
exemption (Art. 59, SB 1952). 
C.S.S.B. 1952 removes language relating to the Texas Commission on
Environmental Quality landfill regulations (Art. 60, SB 1952).