Honorable Judith Zaffirini, Chair, Senate Committee on Government Organization
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
HB2472 by Cook (Relating to the continuation and functions of the Department of Information Resources and certain procurement functions of the comptroller of public accounts.), As Engrossed
No significant fiscal implication to the State is anticipated.
The bill would amend the Government Code relating to the continuation and operation of the Department of Information Resources (DIR). DIR is subject to the Sunset Act and will be abolished on September 1, 2013, unless continued by the Legislature. The bill would continue DIR for eight years and would take effect on September 1, 2013. The bill would amend the Government Code relating to the continuation of statewide procurement and related support functions at the Comptroller of Public Accounts (Comptroller). The Comptroller's procurement functions are subject to the Sunset Act and will be transferred to the Facilities Commission on September 1, 2013, unless continued at the Comptroller by the Legislature. The bill would continue statewide procurement functions at the Comptroller for eight years and would take effect on September 1, 2013.
The bill would require DIR's board to appoint a customer advisory committee to report to and advise the board on the status of critical statewide services provided by DIR. The bill would require DIR to appoint an internal auditor to implement an annual audit plan and require the development of criteria regarding the use of consultants and outside staff to temporarily augment the agency's existing staff. The bill would establish in the Treasury the statewide technology account as a depository for money received from services provided under Government Code, Chapter 2054, Subchapter L relating to services provided through statewide technology centers and the clearing fund account as a depository for money received from services provided under Government Code, Section 2157.068 regarding purchasing of information technology (IT) commodity items.
The bill would require the Sunset Advisory Commission to evaluate the state's overall procurement system and report to the Legislature on its findings and recommendations by January 1, 2021.
The bill would require DIR and the Comptroller to establish a procurement coordination committee composed of the agencies' staff to formally coordinate, share best practices and develop common methodologies for collecting and measuring cost savings and efficiencies of the agencies' respective procurement programs. The committee would report findings in separate reports filed on September 1, 2015 and September 1, 2017 and in reports filed by DIR and the Comptroller under Government Code, Sec. 325.007 to the Sunset Advisory Commission. The bill would require DIR and Comptroller to enter into a memorandum of understanding by March 1, 2014 to facilitate the implementation of this committee.
The bill would require DIR to negotiate specific pricing for commonly purchased IT commodity items to the greatest extent practicable. In the instances when DIR selects a vendor based on a percentage discount from the list price of commodity items, the bill would require DIR to document in writing how that arrangement obtains the best value for the state.
The Sunset Advisory Commission, DIR and the Comptroller indicate that costs associated with implementing provisions of the bill could be absorbed within existing resources. In addition, the Sunset Advisory Commission indicated that any potential savings from negotiation of specific pricing for IT commodity items cannot be estimated at this time.
The legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either within or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
116 Sunset Advisory Commission, 304 Comptroller of Public Accounts, 313 Department of Information Resources