By: Davis S.B. No. 1561 A BILL TO BE ENTITLED AN ACT relating to state agency purchasing. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 2155.062(a), Government Code, is amended to read as follows: (a) In purchasing goods and services the comptroller shall [commission may] use[, but is not limited to, the]: (1) the contract purchase procedure; (2) the multiple award contract procedure, including under any schedules developed under Subchapter I; (3) the open market purchase procedure; [or] (4) the reverse auction procedure; or (5) another purchasing method specifically authorized under state law. SECTION 2. Section 2155.074, Government Code, is amended by amending Subsection (b) and adding Subsection (b-1) to read as follows: (b) In determining the best value for the state, the [purchase price and whether the goods or services meet specifications are the] most important considerations are: (1) the purchase price; (2) whether the goods or services meet specifications; and (3) the vendor's anticipated economic impact to the state or a subdivision of the state, including: (A) potential tax revenue and employment; and (B) whether the vendor produces the goods in this state or is a Texas bidder as that term is defined by Section 2155.444(c). (b-1) In determining the best value for the state, in addition to the requirements under Subsection (b), [However,] the commission or other state agency may, subject to Subsection (c) and Section 2155.075, consider other relevant factors, including: (1) installation costs; (2) life cycle costs; (3) the quality and reliability of the goods and services; (4) the delivery terms; (5) indicators of probable vendor performance under the contract such as past vendor performance, the vendor's financial resources and ability to perform, the vendor's experience or demonstrated capability and responsibility, and the vendor's ability to provide reliable maintenance agreements and support; (6) the cost of any employee training associated with a purchase; (7) the effect of a purchase on agency productivity; and (8) [the vendor's anticipated economic impact to the state or a subdivision of the state, including potential tax revenue and employment; and (9)] other factors relevant to determining the best value for the state in the context of a particular purchase. SECTION 3. Section 2155.143(a), Government Code, is amended to read as follows: (a) The Texas Youth Commission may purchase care and treatment services, including educational services, for its wards subject to Section 2155.074. SECTION 4. Section 2155.144(c), Government Code, is amended to read as follows: (c) An agency to which this section applies shall acquire goods or services by a [any] procurement method authorized by this chapter [approved by the Health and Human Services Commission] that provides the best value to the agency. The agency shall document that it considered all relevant factors under Subsection (d) and in Section 2155.074 in making the acquisition. SECTION 5. Section 2155.1441(a), Government Code, is amended to read as follows: (a) A state agency shall acquire goods and services used in support of the agency's health care programs by the method that provides the greatest volume discount for the goods or services, including group purchasing programs, state agency purchasing consortiums, or competitive sealed proposals. The state agency shall document that it considered the best value standards under Section 2155.074 in making the determination. SECTION 6. Section 2155.146(b), Government Code, is amended to read as follows: (b) The Employees Retirement System of Texas shall acquire goods or services by a [any] procurement method authorized by this chapter [approved by the board of trustees of the retirement system] that provides the best value to the retirement system. The retirement system shall consider the best value standards enumerated in Section 2155.074 in making the acquisition[, as added by Chapter 1206, Acts of the 75th Legislature, Regular Session, 1997]. SECTION 7. Section 2155.147(b), Government Code, is amended to read as follows: (b) The General Land Office shall acquire goods and services by a [any] procurement method authorized by this chapter that provides the best value to the land office. The land office shall consider the best value standards provided by Section 2155.074. SECTION 8. Section 2155.148(b), Government Code, is amended to read as follows: (b) The fire fighters' pension commissioner shall acquire goods or services by a [any] procurement method authorized under this chapter [approved by the state board of trustees of the Texas statewide emergency services personnel retirement fund] that provides the best value to the retirement fund. The fire fighters' pension commissioner shall consider the best value standards provided by Section 2155.074. SECTION 9. Section 2155.149(b), Government Code, is amended to read as follows: (b) The Veterans' Land Board shall acquire goods and services under Subsection (a) by a [any] procurement method authorized by this chapter that provides the best value to the Veterans' Land Board. The Veterans' Land Board shall consider the best value standards listed in Section 2155.074. SECTION 10. Section 2155.150(b), Government Code, is amended to read as follows: (b) The Railroad Commission of Texas shall acquire goods and services, under Subsection (a), by a [any] procurement method authorized by this chapter that provides the best value to the railroad commission. The railroad commission shall consider the best value standards listed in Section 2155.074. SECTION 11. Section 2155.268(b), Government Code, is amended to read as follows: (b) A state agency shall [may] supplement the bidders list with its own list of historically underutilized businesses if it determines that the supplementation will increase the number of historically underutilized businesses that submit bids. SECTION 12. Section 2155.269, Government Code, is amended to read as follows: Sec. 2155.269. WAIVER. The comptroller [commission] by rule may establish a process under which the requirement for soliciting bids or proposals from eligible vendors on a bidders list may be waived for a [an appropriate] state agency or a [an appropriate] purchase or other acquisition under circumstances in which the requirement is not warranted as specifically defined in the comptroller rule. SECTION 13. Section 2155.444(a) Government Code, are amended to read as follows: (a) The commission and all state agencies making purchases of goods, including agricultural products, shall give preference to those produced or grown in this state or offered by Texas bidders as follows: (1) goods produced or offered by a Texas bidder that is owned by a service-disabled veteran who is a Texas resident shall be given a first preference and goods produced in this state or offered by other Texas bidders shall be given second preference, if the cost to the state and quality are equal; and (2) agricultural products grown in this state shall be given first preference and agricultural products offered by Texas bidders shall be given second preference, if the cost to the state and quality are comparable [equal]. SECTION 14. The changes in law made by this Act to Chapter 2155, Government Code, apply only to goods and services purchased or a contract entered into for the purchase of goods and services on or after the effective date of this Act. SECTION 15. This Act takes effect September 1, 2011.