BILL ANALYSIS

C.S.H.B. 3395

By: Callegari

Government Efficiency & Reform

Committee Report (Substituted)

BACKGROUND AND PURPOSE

State law requires that the Texas Facilities Commission and state agencies give preference to the purchase of recycled products; including recycled paper and motor oil and lubricants that contain at least 25 percent recycled oil.  These preferences for recycled products sometimes require that state agencies purchase more expensive items.  For example, a ream of generic, non-recycled paper (500 sheets) can cost approximately $7.49 through a major office retailer.  That same retailer offers reams of 30 percent recycled paper at approximately $9.49 apiece, 50 percent recycled paper at approximately $10.49 apiece, and 100 percent recycled paper at approximately $11.49.  Other recycled products can also command a premium.  As an example, a regular park picnic table may cost around $700; whereas a park picnic table constructed out of recycled materials may cost between $850 and $1,000.

The bill makes the current requirement that the Texas Facilities Commission and state agencies purchase recycled materials permissive.  The bill would maintain the state's authorization to purchase recycled goods, but remove the mandate that agencies purchase recycled items that may command a premium.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

The bill amends the Government Code to authorize, rather than require, the comptroller of public accounts and state agencies to give preference to recycled, remanufactured, or environmentally sensitive products in state purchases if the product meets state specifications regarding quantity and quality.

The bill authorizes, rather than requires, the comptroller to contract for paper containing the highest proportion of recycled fibers for all purposes for which paper with recycled fibers may be used and to the extent that the paper is available at a reasonable price through normal commercial sources to supply the state's needs. The bill authorizes, rather than requires, a state agency that purchases through the comptroller to place orders for papers containing recycled fibers to the highest extent of its needs and to the extent that the paper is available through the comptroller's purchasing procedures.

The bill authorizes, rather than requires, the comptroller, all state agencies, and all state agency employees who purchase motor oil and other automotive lubricants for state-owned vehicles to give preference to motor oils and lubricants that contain at least 25 percent recycled oil if the cost to the state and the quality are comparable to those of new oil and lubricants.

EFFECTIVE DATE

Upon passage, or, if the Act does not receive the necessary vote, the Act takes effect September 1, 2011.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute bill differs from the original in nonsubstantive ways by using language reflective of certain bill drafting conventions; whereas the original bill was a non-council draft.