Texas 2011 - 82nd Regular

Texas Senate Bill SB1109 Compare Versions

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1	1	By: Williams S.B. No. 1109
2	2	(In the Senate - Filed March 3, 2011; March 16, 2011, read
3	3	first time and referred to Committee on State Affairs;
4	4	March 29, 2011, reported adversely, with favorable Committee
5	5	Substitute by the following vote: Yeas 8, Nays 0; March 29, 2011,
6	6	sent to printer.)
7	7	COMMITTEE SUBSTITUTE FOR S.B. No. 1109 By: Williams
8	8
9	9
10	10	A BILL TO BE ENTITLED
11	11	AN ACT
12	12	relating to state agency procurement and the comptroller's
13	13	procurement powers and duties.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. Section 2155.001, Government Code, is amended by
16	16	amending Subdivision (2) and adding Subdivision (3) to read as
17	17	follows:
18	18	(2) "Service" means the furnishing of skilled or
19	19	unskilled labor or professional work, but does not include a:
20	20	(A) professional service subject to Subchapter
21	21	A, Chapter 2254;
22	22	(B) service of a state agency employee;
23	23	(C) service procured by the Department of
24	24	Information Resources;
25	25	(D) consulting service or service of a consultant
26	26	as defined by Subchapter B, Chapter 2254; or
27	27	(E) [(D)] service of a public utility.
28	28	(3) "State agency" has the meaning assigned by Section
29	29	2151.002 unless otherwise provided by this chapter.
30	30	SECTION 2. Section 2155.002, Government Code, is amended to
31	31	read as follows:
32	32	Sec. 2155.002. COMPTROLLER [COMMISSION] FOCUS ON LARGE
33	33	EXPENDITURES. To the extent possible, the comptroller [commission]
34	34	shall focus [its efforts under this chapter and Chapters 2156,
35	35	2157, and 2158] on purchases and contracts that involve relatively
36	36	large amounts of money or that leverage state spending in the most
37	37	efficient manner.
38	38	SECTION 3. Section 2155.064, Government Code, is amended to
39	39	read as follows:
40	40	Sec. 2155.064. LEVERAGED [SCHEDULE AND BULK] PURCHASING.
41	41	To the greatest extent possible, the comptroller shall pursue
42	42	statewide contracts and attempt to leverage state spending to
43	43	achieve cost savings for this state [The commission may combine
44	44	orders in a system of schedule purchasing and shall attempt to
45	45	benefit from bulk purchasing].
46	46	SECTION 4. Section 2155.068, Government Code, is amended to
47	47	read as follows:
48	48	Sec. 2155.068. UNIFORM STANDARDS AND SPECIFICATIONS.
49	49	(a) The comptroller [commission] may coordinate uniform standards
50	50	and specifications for goods purchased by this state [the
51	51	commission]. The comptroller [commission] by rule may adopt
52	52	appropriate standards developed by a nationally recognized
53	53	standards-making association as part of its specifications and
54	54	standards program.
55	55	(b) On request of the comptroller, a state agency shall
56	56	cooperate with the comptroller [The commission shall enlist the
57	57	cooperation of other state agencies] in the establishment,
58	58	maintenance, and revision of uniform standards and specifications.
59	59	(c) The comptroller [commission] shall review contracts
60	60	administered by the comptroller [commission] to ensure that all
61	61	goods and services meet contract specifications.
62	62	(d) As part of the standards and specifications program, the
63	63	comptroller [commission] shall:
64	64	(1) review contracts for opportunities to recycle
65	65	waste produced at state buildings;
66	66	(2) develop and update a list of equipment and
67	67	appliances that meet the energy efficiency standards provided by
68	68	Section 2158.301; and
69	69	(3) assist state agencies in selecting products under
70	70	Section 2158.301, as appropriate.
71	71	SECTION 5. Section 2155.070, Government Code, is amended to
72	72	read as follows:
73	73	Sec. 2155.070. FAILURE TO MEET SPECIFICATIONS. (a) A
74	74	state agency that determines that goods or services received under
75	75	a contract administered by the comptroller [commission] do not meet
76	76	specifications shall promptly notify the comptroller [commission]
77	77	in writing of the reasons for the determination. As soon as
78	78	possible, the comptroller [The commission] shall determine
79	79	[immediately make its own determination of] whether the goods and
80	80	services meet specifications.
81	81	(b) For purchases exempt from the comptroller's purchasing
82	82	authority, the comptroller may [The commission or a state agency,
83	83	including an institution of higher education, has the authority to]
84	84	determine whether the purchased [that] goods and services [exempted
85	85	from the commission's purchasing authority] meet or fail to meet
86	86	specifications. A state agency may also determine whether the
87	87	goods and services meet or fail to meet specifications.
88	88	(c) On determining that contract specifications or
89	89	conditions have not been met, the comptroller [commission] shall
90	90	act against the defaulting contractor, with the assistance of the
91	91	attorney general as necessary.
92	92	(d) If the comptroller [commission] receives repeated
93	93	complaints against a vendor, the comptroller [commission] shall
94	94	remove the vendor's name and the vendor's goods and services from
95	95	the comptroller's [commission's] bidders list for not longer than
96	96	one year. If complaints resume after the vendor is reinstated on
97	97	the bidders list, the comptroller [commission] may bar the vendor
98	98	from participating in state contracts for a period under Section
99	99	2155.077.
100	100	SECTION 6. Section 2155.072, Government Code, is amended to
101	101	read as follows:
102	102	Sec. 2155.072. STATEWIDE OR REGIONAL SERVICES CONTRACTS;
103	103	COMPTROLLER [COMMISSION] STUDIES. Each state fiscal year, the
104	104	comptroller [(a) The commission annually] shall consider one or
105	105	more services purchased by one or more state agencies for
106	106	development into statewide contracts. The comptroller shall
107	107	determine if a particular service may be leveraged for multiple
108	108	state agencies at a cost savings to this state compared to the cost
109	109	to this state of purchasing the service under individual state
110	110	agency contracts [select for study at least one service that is
111	111	purchased by one or more state agencies]. The comptroller
112	112	[commission] shall consider awarding statewide contracts by region
113	113	[study a selected service to determine whether the state would
114	114	benefit if the service were provided to appropriate state agencies
115	115	under a regional or statewide contract. The commission shall give
116	116	priority to studying services for which the commission has
117	117	delegated the purchasing function to many state agencies].
118	118	[(b) The commission is not required to enter into a
119	119	statewide or regional contract for the provision of a service to
120	120	state agencies if more than five bidders are willing to provide the
121	121	service to the state under a statewide or regional contract.]
122	122	SECTION 7. Section 2155.074, Government Code, is amended to
123	123	read as follows:
124	124	Sec. 2155.074. PROCUREMENT MANUAL; BEST VALUE AND SOURCING
125	125	STANDARDS [STANDARD] FOR PURCHASE OF GOODS OR SERVICES. (a) The
126	126	comptroller shall publish and maintain a procurement manual for
127	127	state agencies to follow that incorporates the sourcing standards
128	128	of this section and the best practices for procurement. Before
129	129	publication, the procurement manual must be reviewed by the
130	130	contract advisory team established under Chapter 2262. Each state
131	131	agency shall comply with the procurement manual in its procurement
132	132	activities.
133	133	(b) For a purchase of goods and services under this chapter,
134	134	each state agency, including the comptroller [commission], shall
135	135	purchase goods and services that provide the best value for the
136	136	state.
137	137	(c) [(b)] In determining the best value for the state, the
138	138	purchase price and whether the goods or services meet
139	139	specifications are the most important considerations. However, the
140	140	comptroller [commission] or other state agency may, subject to
141	141	Subsection (d) [(c)] and Section 2155.075, consider other relevant
142	142	factors, including:
143	143	(1) installation costs;
144	144	(2) life cycle costs;
145	145	(3) the quality and reliability of the goods and
146	146	services;
147	147	(4) the delivery terms;
148	148	(5) indicators of probable vendor performance under
149	149	the contract such as past vendor performance, the vendor's
150	150	financial resources and ability to perform, the vendor's experience
151	151	or demonstrated capability and responsibility, and the vendor's
152	152	ability to provide reliable maintenance agreements and support;
153	153	(6) the cost of any employee training associated with
154	154	a purchase;
155	155	(7) the effect of a purchase on agency productivity;
156	156	(8) the vendor's anticipated economic impact to the
157	157	state or a subdivision of the state, including potential tax
158	158	revenue and employment; and
159	159	(9) other factors relevant to determining the best
160	160	value for the state in the context of a particular purchase.
161	161	(d) [(c)] A state agency shall consult with and receive
162	162	approval from the comptroller [commission] before considering
163	163	factors other than price and meeting specifications when the agency
164	164	procures through competitive bidding goods or services with a value
165	165	that exceeds $100,000.
166	166	(e) The comptroller shall:
167	167	(1) identify commercially available goods and
168	168	services needed or used by state agencies; and
169	169	(2) analyze and determine whether the goods and
170	170	services are better provided through a statewide contract.
171	171	(f) If the comptroller determines that a good or service
172	172	identified under Subsection (e) is better provided through a
173	173	statewide contract, the comptroller shall require state agencies to
174	174	engage in any process, including competitive bidding, developed by
175	175	the comptroller to develop and award one or more statewide
176	176	contracts for the good or service.
177	177	(g) In performing the comptroller's duties under this
178	178	chapter, the comptroller may:
179	179	(1) require a state agency to conduct a hearing,
180	180	study, review, or cost estimate, including an agency in-house cost
181	181	estimate or a management study, concerning any aspect of a good or
182	182	service identified under Subsection (e);
183	183	(2) develop and require state agencies to use methods
184	184	that accurately and fairly estimate and account for the cost of
185	185	obtaining the identified good or service;
186	186	(3) require that the identified good or service be
187	187	submitted to competitive bidding or another process that creates
188	188	competition;
189	189	(4) prescribe, after consulting affected state
190	190	agencies, the specifications and conditions of the purchase and the
191	191	procedures that must be followed for the procurement of the
192	192	identified good or service; and
193	193	(5) determine the terms of a contract for the
194	194	identified good or service.
195	195	SECTION 8. Subsection (a), Section 2155.078, Government
196	196	Code, is amended to read as follows:
197	197	(a) The comptroller [commission] shall establish and
198	198	administer a system of training, continuing education, and
199	199	certification for state agency purchasing personnel. The
200	200	comptroller [commission] may establish and offer appropriate
201	201	training to vendors on a cost recovery basis. The comptroller
202	202	[commission] may adopt rules to administer this section, including
203	203	rules relating to:
204	204	(1) monitoring a certified purchaser's compliance with
205	205	the continuing education requirements of this section; and
206	206	(2) suspending or revoking a purchaser's certification
207	207	for failure to comply with this chapter or comptroller rules.
208	208	SECTION 9. Section 2155.082, Government Code, is amended to
209	209	read as follows:
210	210	Sec. 2155.082. PROVIDING CERTAIN PURCHASING SERVICES ON
211	211	FEE-FOR-SERVICE BASIS OR THROUGH BENEFIT FUNDING. (a) The
212	212	comptroller [commission] may provide open market purchasing
213	213	services on a fee-for-service basis for state agency purchases that
214	214	are delegated to an agency under Section 2155.131, 2155.132,
215	215	[2155.133,] or 2157.121 or that are exempted from the purchasing
216	216	authority of the comptroller [commission]. The comptroller
217	217	[commission] shall set the fees in an amount that recovers the
218	218	comptroller's [commission's] costs in providing the services.
219	219	(b) The comptroller [commission] shall publish a schedule
220	220	of [its] fees for services that are subject to this section. The
221	221	schedule must include the comptroller's [commission's] fees for:
222	222	(1) reviewing bid and contract documents for clarity,
223	223	completeness, and compliance with laws and rules;
224	224	(2) developing and transmitting invitations to bid;
225	225	(3) receiving and tabulating bids;
226	226	(4) evaluating and determining which bidder offers the
227	227	best value to the state;
228	228	(5) creating and transmitting purchase orders; and
229	229	(6) participating in agencies' request for proposal
230	230	processes.
231	231	(c) The comptroller may engage a consultant to assist with a
232	232	particular procurement on behalf of a state agency and pay the
233	233	consultant from the cost savings realized by the state agency.
234	234	SECTION 10. Subsection (n), Section 2155.083, Government
235	235	Code, is amended to read as follows:
236	236	(n) Notwithstanding any other provision of this section, a
237	237	state agency that conducts covert law enforcement operations is not
238	238	required to post the specifications for covert equipment in the
239	239	state business daily [This section does not apply to a state agency
240	240	to which Section 51.9335 or 73.115, Education Code, applies].
241	241	SECTION 11. Section 2155.085, Government Code, is amended
242	242	to read as follows:
243	243	Sec. 2155.085. REVERSE AUCTION PROCEDURE. [(a)] The
244	244	comptroller may [commission shall]:
245	245	(1) purchase goods or services using the reverse
246	246	auction procedure whenever:
247	247	(A) the procedure provides the best value to the
248	248	state; or
249	249	(B) all purchasing methods provide equal value to
250	250	the state;
251	251	(2) offer historically underutilized businesses
252	252	assistance and training relating to the reverse auction procedure;
253	253	and
254	254	(3) advise historically underutilized businesses on
255	255	contracts available using the reverse auction procedure.
256	256	[(b) The commission shall set a goal of purchasing at least
257	257	20 percent of the dollar value of goods or services purchased by the
258	258	commission using the reverse auction procedure.]
259	259	SECTION 12. Subchapter B, Chapter 2155, Government Code, is
260	260	amended by adding Section 2155.088 to read as follows:
261	261	Sec. 2155.088. PROCUREMENT PLANS FOR GOODS AND SERVICES.
262	262	(a) Not later than June 1 of each odd-numbered year, each state
263	263	agency shall provide a procurement plan to the comptroller that
264	264	identifies the major goods and services the agency plans to
265	265	purchase during the next fiscal biennium.
266	266	(b) The comptroller shall use the procurement plans to
267	267	schedule solicitations for proposals for goods and services used by
268	268	multiple state agencies.
269	269	(c) A state agency that makes a substantive change to its
270	270	procurement plan shall submit a revised copy of the plan to the
271	271	comptroller not later than the 30th day after the date of the
272	272	change.
273	273	(d) The comptroller may adopt rules to administer this
274	274	section.
275	275	SECTION 13. Section 2155.131, Government Code, is amended
276	276	to read as follows:
277	277	Sec. 2155.131. DELEGATION OF AUTHORITY TO STATE AGENCIES.
278	278	(a) The comptroller [commission] may delegate purchasing
279	279	functions to a state agency.
280	280	(b) In delegating purchasing authority under this section
281	281	or Section 2155.132, the comptroller shall consider factors
282	282	relevant to a state agency's ability to perform purchasing
283	283	functions, including:
284	284	(1) the purchasing capabilities of the agency's
285	285	purchasing personnel and the existence of automated purchasing
286	286	tools at the agency;
287	287	(2) the certification levels held by the agency's
288	288	purchasing personnel;
289	289	(3) the results of the comptroller's procurement
290	290	review audits of an agency's purchasing practices; and
291	291	(4) whether the agency has adopted and published as
292	292	part of its purchasing rules protest procedures consistent with the
293	293	comptroller's protest procedures.
294	294	(c) The comptroller shall monitor the purchasing practices
295	295	of each state agency that the comptroller delegates purchasing
296	296	authority to under Subsection (b) or Section 2155.132 to ensure
297	297	that the certification levels of the agency's purchasing personnel
298	298	and the quality of the agency's purchasing practices continue to
299	299	warrant the delegated purchasing authority. The comptroller may
300	300	revoke for any cause, including the agency's failure to comply with
301	301	Section 2155.074, all or part of the delegated purchasing
302	302	authority. The comptroller shall adopt rules to administer this
303	303	subsection.
304	304	(d) The comptroller by rule shall prescribe:
305	305	(1) the procedures a state agency must follow in
306	306	making a delegated purchase; and
307	307	(2) the procedures by which a state agency may use the
308	308	comptroller's services for delegated purchases under Section
309	309	2155.082.
310	310	SECTION 14. Section 2155.132, Government Code, is amended
311	311	to read as follows:
312	312	Sec. 2155.132. PURCHASES LESS THAN SPECIFIED MONETARY
313	313	AMOUNT. (a) A state agency is delegated the authority to purchase
314	314	goods and services if the purchase does not exceed $15,000. If the
315	315	comptroller [commission] determines that a state agency has not
316	316	followed the comptroller's [commission's] rules or the laws related
317	317	to the delegated purchases, the comptroller [commission] shall
318	318	report the comptroller's [its] determination to the members of the
319	319	state agency's governing body and to the governor, lieutenant
320	320	governor, speaker of the house of representatives, and Legislative
321	321	Budget Board.
322	322	(b) The comptroller [commission] by rule may delegate to a
323	323	state agency the authority to purchase goods and services if the
324	324	purchase exceeds $15,000. [In delegating purchasing authority
325	325	under this subsection or Section 2155.131, the commission shall
326	326	consider factors relevant to a state agency's ability to perform
327	327	purchasing functions, including:
328	328	[(1) the capabilities of the agency's purchasing staff
329	329	and the existence of automated purchasing tools at the agency;
330	330	[(2) the certification levels held by the agency's
331	331	purchasing personnel;
332	332	[(3) the results of the commission's procurement
333	333	review audits of an agency's purchasing practices; and
334	334	[(4) whether the agency has adopted and published
335	335	protest procedures consistent with those of the commission as part
336	336	of its purchasing rules.]
337	337	(c) [The commission shall monitor the purchasing practices
338	338	of state agencies that are making delegated purchases under
339	339	Subsection (b) or Section 2155.131 to ensure that the certification
340	340	levels of the agency's purchasing personnel and the quality of the
341	341	agency's purchasing practices continue to warrant the amount of
342	342	delegated authority provided by the commission to the agency. The
343	343	commission may revoke for cause all or part of the purchasing
344	344	authority that the commission delegated to a state agency. The
345	345	commission shall adopt rules to administer this subsection.
346	346	[(d) The commission by rule:
347	347	[(1) shall prescribe procedures for a delegated
348	348	purchase; and
349	349	[(2) shall prescribe procedures by which agencies may
350	350	use the commission's services for delegated purchases, in
351	351	accordance with Section 2155.082.
352	352	[(e)] Competitive bidding, whether formal or informal, is
353	353	required for a purchase by a state agency if the purchase:
354	354	(1) exceeds $5,000; and
355	355	(2) is made under a written contract.
356	356	(d) [(f)] Goods purchased under this section may not
357	357	include:
358	358	(1) an item for which a statewide contract has been
359	359	awarded by the comptroller [under the contract purchase procedure],
360	360	unless the quantity purchased is less than any [the] minimum
361	361	quantity specified in the contract;
362	362	(2) an item required by statute to be purchased from a
363	363	particular source, including through the program administered
364	364	under Chapter 122, Human Resources Code, or from the Texas
365	365	Correctional Industries under Chapter 497; or
366	366	(3) a scheduled item that has been designated for
367	367	purchase by the comptroller [commission].
368	368	(e) [(g)] A large purchase may not be divided into small lot
369	369	purchases to circumvent [meet] the dollar limits prescribed by this
370	370	section. The comptroller [commission] may not require that
371	371	unrelated purchases be combined into one purchase order to exceed
372	372	the dollar limits prescribed by this section.
373	373	(f) [(h)] A state agency making a purchase under this
374	374	section for which competitive bidding is required shall [must]:
375	375	(1) [attempt to] obtain at least three competitive
376	376	bids from:
377	377	(A) sources listed on the master bidders list
378	378	that normally offer for sale the goods being purchased; or
379	379	(B) if three vendors are not available on the
380	380	master bidders list, vendors in the applicable industry; and
381	381	(2) comply with Subchapter E.
382	382	SECTION 15. Subchapter C, Chapter 2155, Government Code, is
383	383	amended by adding Section 2155.1325 to read as follows:
384	384	Sec. 2155.1325. STANDARDS FOR DELEGATED PURCHASES. (a) A
385	385	state agency that is preparing a solicitation for proposals for a
386	386	purchase of goods or services with a purchase price that exceeds
387	387	$100,000 that is delegated under this chapter or other law shall
388	388	submit to the comptroller a copy of the draft solicitation with a
389	389	statement of the procurement strategy for the purchase.
390	390	(b) The comptroller may review the draft solicitation and
391	391	procurement strategy to determine whether the state agency is
392	392	following the best value and sourcing standards of Section 2155.074
393	393	to the greatest extent possible. The comptroller may:
394	394	(1) recommend changes to the draft solicitation or
395	395	procurement strategy, provided the written recommended changes are
396	396	submitted to the state agency not later than the 30th day after the
397	397	date the comptroller receives the draft solicitation and
398	398	procurement strategy from the state agency;
399	399	(2) partner with the state agency to ensure that the
400	400	standards of this chapter are followed;
401	401	(3) partner with the state agency to award a statewide
402	402	contract that results from the solicitation; or
403	403	(4) require the state agency to engage a consultant to
404	404	assist with the solicitation to be paid from the cost savings
405	405	realized under the contract, as authorized by Section 2155.082.
406	406	(c) A state agency that receives the comptroller's
407	407	recommended changes under Subsection (b)(1) shall:
408	408	(1) accept the recommended changes; or
409	409	(2) submit alternative suggestions to the comptroller
410	410	for review in accordance with this section.
411	411	(d) The comptroller may adopt rules to administer this
412	412	section.
413	413	SECTION 16. Subchapter D, Chapter 2155, Government Code, is
414	414	amended by adding Section 2155.205 to read as follows:
415	415	Sec. 2155.205. ACCESS BY OTHER GOVERNMENTAL ENTITIES. The
416	416	comptroller may allow a governmental entity of another state to
417	417	access the comptroller's statewide contracts.
418	418	SECTION 17. Subsection (a), Section 2155.385, Government
419	419	Code, is amended to read as follows:
420	420	(a) The comptroller [If authorized by rule adopted by the
421	421	comptroller under Section 403.023, the commission] may contract
422	422	with one or more credit card issuers for state agencies to use
423	423	credit cards to pay for purchases. [The commission may not enter
424	424	into a contract that conflicts with the comptroller's rules.]
425	425	SECTION 18. Section 2054.158, Government Code, is amended
426	426	to read as follows:
427	427	Sec. 2054.158. QUALITY ASSURANCE TEAM. The state auditor,
428	428	comptroller, Legislative Budget Board, and department shall:
429	429	(1) create a quality assurance team to perform the
430	430	duties specified in this chapter and other law; and
431	431	(2) specify in writing the responsibilities of the
432	432	state auditor, comptroller, Legislative Budget Board, and
433	433	department in performing the duties.
434	434	SECTION 19. Subsection (c), Section 2151.0041, Government
435	435	Code, is amended to read as follows:
436	436	(c) Unless otherwise provided by the legislature by law, on
437	437	September 1, 2013:
438	438	(1) the powers and duties transferred to the
439	439	comptroller under Section 2151.004(d) and under House Bill 3560,
440	440	Acts of the 80th Legislature, Regular Session, 2007, are
441	441	transferred to the Texas Facilities Commission;
442	442	(2) a reference in law to the comptroller relating to a
443	443	power or duty transferred under this subsection means the Texas
444	444	Facilities Commission;
445	445	(3) a rule or form adopted by the comptroller relating
446	446	to a power or duty transferred under this subsection is a rule or
447	447	form of the Texas Facilities Commission and remains in effect until
448	448	altered by the commission;
449	449	(4) all obligations, contracts, proceedings, cases,
450	450	negotiations, funds, and employees of the comptroller relating to a
451	451	power or duty transferred under this subsection are transferred to
452	452	the Texas Facilities Commission;
453	453	(5) all property and records in the custody of the
454	454	comptroller relating to a power or duty transferred under this
455	455	subsection and all funds appropriated by the legislature for
456	456	purposes related to a power or duty transferred under this
457	457	subsection are transferred to the Texas Facilities Commission; and
458	458	(6) Section 122.0011, Human Resources Code, and the
459	459	following provisions of the Government Code expire:
460	460	(A) Sections 2151.004(c) and (d);
461	461	(B) Section 2155.0011;
462	462	(C) [Section 2155.086;
463	463	[(D) Section 2155.087;
464	464	[(E)] Section 2156.0011;
465	465	(D) [(F)] Section 2157.0011;
466	466	(E) [(G)] Section 2158.0011;
467	467	(F) [(H)] Section 2161.0011;
468	468	(G) [(I)] Section 2163.0011;
469	469	(H) [(J)] Section 2170.0011;
470	470	(I) [(K)] Section 2171.0011;
471	471	(J) [(L)] Section 2172.0011;
472	472	(K) [(M)] Section 2176.0011; and
473	473	(L) [(N)] Section 2262.0011.
474	474	SECTION 20. Subsection (i), Section 2166.406, Government
475	475	Code, is amended to read as follows:
476	476	(i) An energy savings performance contract shall be let
477	477	according to the procedures established for procuring certain
478	478	professional services by Section 2254.004. [Notice of the request
479	479	for qualifications shall be given in the manner provided by Section
480	480	2156.002.] The State Energy Conservation Office shall establish
481	481	guidelines and an approval process for awarding energy savings
482	482	performance contracts. The guidelines adopted under this
483	483	subsection must require that the cost savings projected by an
484	484	offeror be reviewed by a licensed professional engineer who has a
485	485	minimum of three years of experience in energy calculation and
486	486	review, is not an officer or employee of an offeror for the contract
487	487	under review, and is not otherwise associated with the contract. In
488	488	conducting the review, the engineer shall focus primarily on the
489	489	proposed improvements from an engineering perspective, the
490	490	methodology and calculations related to cost savings, increases in
491	491	revenue, and, if applicable, efficiency or accuracy of metering
492	492	equipment. An engineer who reviews a contract shall maintain the
493	493	confidentiality of any proprietary information the engineer
494	494	acquires while reviewing the contract. An energy savings
495	495	performance contract may not be entered into unless the contract
496	496	has been approved by the State Energy Conservation Office.
497	497	Sections 1001.053 and 1001.407, Occupations Code, apply to work
498	498	performed under the contract.
499	499	SECTION 21. Subsection (i), Section 51.927, Education Code,
500	500	is amended to read as follows:
501	501	(i) An energy savings performance contract shall be let
502	502	according to the procedures established for procuring certain
503	503	professional services by Section 2254.004, Government Code.
504	504	[Notice of the request for qualifications shall be given in the
505	505	manner provided by Section 2156.002, Government Code.] The Texas
506	506	Higher Education Coordinating Board, in consultation with the State
507	507	Energy Conservation Office with regard to energy and water
508	508	conservation measures, shall establish guidelines and an approval
509	509	process for awarding energy savings performance contracts. The
510	510	guidelines must require that the cost savings projected by an
511	511	offeror be reviewed by a licensed professional engineer who has a
512	512	minimum of three years of experience in energy calculation and
513	513	review, is not an officer or employee of an offeror for the contract
514	514	under review, and is not otherwise associated with the contract. In
515	515	conducting the review, the engineer shall focus primarily on the
516	516	proposed improvements from an engineering perspective, the
517	517	methodology and calculations related to cost savings, increases in
518	518	revenue, and, if applicable, efficiency or accuracy of metering
519	519	equipment. An engineer who reviews a contract shall maintain the
520	520	confidentiality of any proprietary information the engineer
521	521	acquires while reviewing the contract. A contract is not required
522	522	to be reviewed or approved by the State Energy Conservation Office.
523	523	Sections 1001.053 and 1001.407, Occupations Code, apply to work
524	524	performed under the contract.
525	525	SECTION 22. The following sections of the Government Code
526	526	are repealed:
527	527	(1) Section 2155.086;
528	528	(2) Section 2155.087;
529	529	(3) Section 2155.138;
530	530	(4) Section 2155.141; and
531	531	(5) Section 2156.002.
532	532	SECTION 23. This Act takes effect immediately if it
533	533	receives a vote of two-thirds of all the members elected to each
534	534	house, as provided by Section 39, Article III, Texas Constitution.
535	535	If this Act does not receive the vote necessary for immediate
536	536	effect, this Act takes effect September 1, 2011.
537	537	* * * * *