Texas 2019 - 86th Regular

Texas House Bill HB1524 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 1524
	1	+	By: Shaheen (Senate Sponsor - Paxton) H.B. No. 1524
	2	+	(In the Senate - Received from the House May 6, 2019;
	3	+	May 7, 2019, read first time and referred to Committee on Business &
	4	+	Commerce; May 19, 2019, reported favorably by the following vote:
	5	+	Yeas 7, Nays 0; May 19, 2019, sent to printer.)
	6	+	Click here to see the committee vote
2	7
3	8
	9	+	A BILL TO BE ENTITLED
4	10		AN ACT
5	11		relating to correcting outdated references to the Texas Building
6	12		and Procurement Commission.
7	13		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	14		SECTION 1. Section 411.064, Government Code, is amended to
9	15		read as follows:
10	16		Sec. 411.064. ASSISTANCE OF TEXAS DEPARTMENT OF
11	17		TRANSPORTATION OR TEXAS FACILITIES [GENERAL SERVICES] COMMISSION.
12	18		(a) On request of the department, the Texas Department of
13	19		Transportation and the Texas Facilities [General Services]
14	20		Commission shall:
15	21		(1) assist the department in the marking and
16	22		designation of parking lots, parking garages, and parking spaces;
17	23		(2) maintain the painting of lines and curb markings;
18	24		and
19	25		(3) furnish and erect direction and information signs.
20	26		(b) The department may recover the cost of providing the
21	27		services described in Subsection (a) from the agency or agencies
22	28		for which the service was provided. To the extent that either the
23	29		Texas Facilities [General Services] Commission or the Texas
24	30		Department of Transportation provides or assists in providing the
25	31		services described in Subsection (a), that agency shall be
26	32		reimbursed by the department from its funds or the funds received
27	33		from another agency under this subsection.
28	34		SECTION 2. Section 411.0645(a), Government Code, is amended
29	35		to read as follows:
30	36		(a) The department, the City of Austin, the Capital
31	37		Metropolitan Transportation Authority, the Texas Facilities
32	38		[General Services] Commission, the State Preservation Board, and
33	39		The University of Texas at Austin shall each designate a
34	40		representative to a committee established for the purpose of
35	41		coordinating transportation in and adjacent to the Capitol Complex.
36	42		The representative of the department shall convene the initial
37	43		meeting of the committee, and the committee shall elect officers
38	44		and meet as decided by the committee.
39	45		SECTION 3. Sections 469.106(b) and (d), Government Code,
40	46		are amended to read as follows:
41	47		(b) The department and the Texas Facilities [Building and
42	48		Procurement] Commission shall ensure compliance with the standards
43	49		and specifications described by Subsection (a) for a building or
44	50		facility described by Subsection (a) and leased for an annual
45	51		amount of more than $12,000 or built by or for the state.
46	52		(d) If an inspection under Subsection (c) determines that a
47	53		building or facility does not comply with all applicable standards
48	54		and specifications, the leasing agency or the Texas Facilities
49	55		[Building and Procurement] Commission, as applicable, shall cancel
50	56		the lease unless the lessor brings the building or facility into
51	57		compliance not later than:
52	58		(1) the 60th day after the date the person performing
53	59		the inspection delivers the results of the inspection to the lessor
54	60		or the lessor's agent; or
55	61		(2) a later date established by the commission if
56	62		circumstances justify a later date.
57	63		SECTION 4. Section 1232.003(4), Government Code, is amended
58	64		to read as follows:
59	65		(4) "Commission" means the Texas Facilities [Building
60	66		and Procurement] Commission.
61	67		SECTION 5. Section 2101.0115(c), Government Code, is
62	68		amended to read as follows:
63	69		(c) A state agency's annual report must include:
64	70		(1) the name and job title of each bonded agency
65	71		employee, the amount of the bond, and the name of the surety company
66	72		that issued the bond;
67	73		(2) an analysis of space occupied by the agency,
68	74		including:
69	75		(A) the total amount of space rented by the
70	76		agency, expressed in square feet;
71	77		(B) the total amount of space occupied by the
72	78		agency in state-owned buildings, expressed in square feet;
73	79		(C) the name and address of each building in
74	80		which the agency occupies space and the amount of square feet in
75	81		each building devoted to each particular use;
76	82		(D) the cost per square foot of all rented space;
77	83		(E) the annual and monthly cost of all rented
78	84		space;
79	85		(F) the name of each lessor of space rented by the
80	86		agency;
81	87		(G) a description of the agency's progress toward
82	88		achieving the objective provided by Section 2165.104, if the agency
83	89		is subject to that section; and
84	90		(H) any other information helpful to describe the
85	91		agency's use of space;
86	92		(3) an itemization of all fees paid by the agency for
87	93		professional or consulting services provided under Subchapter A or
88	94		B, Chapter 2254, including the name of each person receiving those
89	95		fees and the reason for the provision of the services;
90	96		(4) an itemization of all fees paid by the agency for
91	97		legal services, other than legal services provided by an agency
92	98		employee or the attorney general, including the name of each person
93	99		receiving those fees and the reason for the provision of the
94	100		services;
95	101		(5) a copy of the form prepared by the agency under
96	102		Section 2205.041, relating to the agency's use and cost of
97	103		operating aircraft that are state-owned or under rental or
98	104		long-term lease;
99	105		(6) an itemization of any purchases made under Section
100	106		2155.067, including each product purchased, the amount of the
101	107		purchase, and the name of the vendor;
102	108		(7) for each fiscal year ending in an even-numbered
103	109		calendar year:
104	110		(A) a copy of the master file report verification
105	111		form certified by the General Land Office, if applicable to the
106	112		agency, to confirm that the agency is in compliance with Subchapter
107	113		E, Chapter 31, Natural Resources Code; or
108	114		(B) if the agency's inventory record is
109	115		inaccurate or incomplete, a statement that the agency will submit
110	116		the appropriate forms to the General Land Office not later than the
111	117		15th day after the date the agency submits its annual report;
112	118		(8) a copy of the report prepared by the agency under
113	119		Section 2161.124, relating to the agency's use of historically
114	120		underutilized businesses;
115	121		(9) a report of each transfer of appropriated money
116	122		between appropriation items that shows the sum of all transfers
117	123		affecting each item;
118	124		(10) an itemization of each passenger vehicle the
119	125		agency purchased, including the make, model, purchase price,
120	126		assigned type of use, and fuel efficiency as expressed by the
121	127		manufacturer's fuel efficiency rating;
122	128		(11) a schedule, applicable to state agencies
123	129		determined by the Legislative Budget Board, detailing total
124	130		expenditures by or on behalf of the agency for:
125	131		(A) employee benefits, including social
126	132		security, health insurance, retirement contributions, benefit
127	133		replacement pay, and workers' and unemployment compensation
128	134		payments;
129	135		(B) bond debt service; and
130	136		(C) payments for general governmental services
131	137		as defined by the comptroller, including services of the
132	138		comptroller, the attorney general, the Texas Facilities [General
133	139		Services] Commission, the Department of Information Resources, and
134	140		the state auditor;
135	141		(12) for an institution of higher education, the total
136	142		amount of lump-sum vacation and compensatory leave payments made to
137	143		employees who separated from state service during the fiscal year;
138	144		(13) the name and job title of each state officer or
139	145		employee authorized to use a state-owned or state-leased vehicle
140	146		and the reasons for the authorization, in accordance with Section
141	147		2113.013; and
142	148		(14) a report of expenditures made for each commodity
143	149		or service identified under Section 2155.448, including:
144	150		(A) the total amount spent on those commodities
145	151		and services;
146	152		(B) the total amount spent for commodities and
147	153		services purchased that accomplish the same purpose; and
148	154		(C) the total amount spent for all other
149	155		recycled, remanufactured, or environmentally sensitive commodities
150	156		or services, itemized by type of commodity or service.
151	157		SECTION 6. Section 2152.0011(b), Government Code, is
152	158		amended to read as follows:
153	159		(b) In this chapter, "commission" [or "Texas Building and
154	160		Procurement Commission"] means the Texas Facilities Commission.
155	161		SECTION 7. Sections 2155.0011 and 2155.002, Government
156	162		Code, are amended to read as follows:
157	163		Sec. 2155.0011. COMPTROLLER POWERS AND [TRANSFER OF]
158	164		DUTIES[; REFERENCE]. [(a)] The comptroller has under this chapter
159	165		the powers and duties described by Section 2151.004(d) [of the
160	166		commission under this chapter are transferred to the comptroller].
161	167		[(b) In this chapter, a reference to the commission means
162	168		the comptroller.]
163	169		Sec. 2155.002. [COMMISSION] FOCUS ON LARGE EXPENDITURES.
164	170		To the extent possible, the comptroller [commission] shall focus
165	171		its efforts under this chapter and Chapters 2156, 2157, and 2158 on
166	172		purchases and contracts that involve relatively large amounts of
167	173		money.
168	174		SECTION 8. Section 2155.061, Government Code, is amended to
169	175		read as follows:
170	176		Sec. 2155.061. COMPTROLLER [COMMISSION] PURCHASING SYSTEM.
171	177		(a) The comptroller [commission] shall acquire by purchase, lease,
172	178		rental, or another manner all goods and services for a state agency,
173	179		including a purchase that does not require a competitive bid or a
174	180		spot purchase.
175	181		(b) The comptroller [commission] shall operate an effective
176	182		and economical system for purchasing goods and services.
177	183		SECTION 9. Section 2155.062(a), Government Code, is amended
178	184		to read as follows:
179	185		(a) In purchasing goods and services the comptroller
180	186		[commission] may use, but is not limited to, the:
181	187		(1) contract purchase procedure;
182	188		(2) multiple award contract procedure, including
183	189		under any schedules developed under Subchapter I;
184	190		(3) open market purchase procedure; or
185	191		(4) reverse auction procedure.
186	192		SECTION 10. Section 2155.064, Government Code, is amended
187	193		to read as follows:
188	194		Sec. 2155.064. SCHEDULE AND BULK PURCHASING. The
189	195		comptroller [commission] may combine orders in a system of schedule
190	196		purchasing and shall attempt to benefit from bulk purchasing.
191	197		SECTION 11. Sections 2155.065(a) and (c), Government Code,
192	198		are amended to read as follows:
193	199		(a) The comptroller [commission] is authorized to make
194	200		contracts with the Texas Department of Criminal Justice for the
195	201		purchase of goods and services for use by another state agency.
196	202		(c) The comptroller [commission] shall make awards under
197	203		this section based on proposed goods and services meeting formal
198	204		state specifications developed by the comptroller [commission] or
199	205		meeting commercial specifications approved by the comptroller
200	206		[commission].
201	207		SECTION 12. Section 2155.066, Government Code, is amended
202	208		to read as follows:
203	209		Sec. 2155.066. REVIEW OF SPECIFICATIONS. The comptroller
204	210		[commission] shall review the specifications and purchase
205	211		conditions of goods or services considered for purchase.
206	212		SECTION 13. Sections 2155.067(a), (c), (d), and (f),
207	213		Government Code, are amended to read as follows:
208	214		(a) If, after review under Section 2155.066, the
209	215		comptroller [commission] finds that specifications and conditions
210	216		of a purchase request describe a product that is proprietary to one
211	217		vendor and do not permit an equivalent product to be supplied, the
212	218		comptroller [commission] shall require the requesting state agency
213	219		to justify in writing the specifications or conditions.
214	220		(c) The written justification must:
215	221		(1) explain the need for the specifications;
216	222		(2) state the reason competing products are not
217	223		satisfactory; and
218	224		(3) provide other information requested by the
219	225		comptroller [commission].
220	226		(d) If the comptroller [commission] requires a resubmission
221	227		with written justification, the comptroller [commission] shall
222	228		notify the requesting state agency of the requirement not later
223	229		than the 10th day after the date of receiving the purchase request.
224	230		(f) The comptroller [commission] shall issue an invitation
225	231		to bid to vendors not later than the 20th day after the date of
226	232		receiving the required written justification.
227	233		SECTION 14. Sections 2155.068, 2155.069, 2155.070,
228	234		2155.072, 2155.073, 2155.074, and 2155.075, Government Code, are
229	235		amended to read as follows:
230	236		Sec. 2155.068. UNIFORM STANDARDS AND SPECIFICATIONS. (a)
231	237		The comptroller [commission] may coordinate uniform standards and
232	238		specifications for goods purchased by the comptroller
233	239		[commission]. The comptroller [commission] by rule may adopt
234	240		appropriate standards developed by a nationally recognized
235	241		standards-making association as part of its specifications and
236	242		standards program.
237	243		(b) The comptroller [commission] shall enlist the
238	244		cooperation of other state agencies in the establishment,
239	245		maintenance, and revision of uniform standards and specifications.
240	246		(c) The comptroller [commission] shall review contracts
241	247		administered by the comptroller [commission] to ensure that all
242	248		goods and services meet contract specifications.
243	249		(d) As part of the standards and specifications program, the
244	250		comptroller [commission] shall:
245	251		(1) review contracts for opportunities to recycle
246	252		waste produced at state buildings;
247	253		(2) develop and update a list of equipment and
248	254		appliances that meet the energy efficiency standards provided by
249	255		Section 2158.301; and
250	256		(3) assist state agencies in selecting products under
251	257		Section 2158.301, as appropriate.
252	258		Sec. 2155.069. TESTING AND INSPECTION. (a) The
253	259		comptroller [commission] may test and inspect goods and services
254	260		purchased under a contract administered by the comptroller
255	261		[commission] to ensure compliance with specifications.
256	262		(b) The comptroller [commission] may contract for testing
257	263		under this section.
258	264		(c) The comptroller [commission] may, on request, test and
259	265		inspect goods and services purchased by other state governmental
260	266		entities on a cost recovery basis.
261	267		(d) The comptroller [commission] may also test and inspect
262	268		goods and services before they are purchased. Other state agencies
263	269		may test and inspect goods and services before purchase under
264	270		standard industry testing methods, or they may contract for
265	271		testing. The comptroller [commission] may inform agencies about
266	272		available private testing facilities.
267	273		Sec. 2155.070. FAILURE TO MEET SPECIFICATIONS. (a) A state
268	274		agency that determines that goods or services received under a
269	275		contract administered by the comptroller [commission] do not meet
270	276		specifications shall promptly notify the comptroller [commission]
271	277		in writing of the reasons for the determination. The comptroller
272	278		[commission] shall immediately make its own determination of
273	279		whether the goods and services meet specifications.
274	280		(b) The comptroller [commission] or a state agency,
275	281		including an institution of higher education, has the authority to
276	282		determine that goods and services exempted from the comptroller's
277	283		[commission's] purchasing authority meet or fail to meet
278	284		specifications.
279	285		(c) On determining that contract specifications or
280	286		conditions have not been met, the comptroller [commission] shall
281	287		act against the defaulting contractor, with the assistance of the
282	288		attorney general as necessary.
283	289		(d) If the comptroller [commission] receives repeated
284	290		complaints against a vendor, the comptroller [commission] shall
285	291		remove the vendor's name and the vendor's goods and services from
286	292		the comptroller's [commission's] bidders list for not longer than
287	293		one year. If complaints resume after the vendor is reinstated on
288	294		the bidders list, the comptroller [commission] may bar the vendor
289	295		from participating in state contracts for a period under Section
290	296		2155.077.
291	297		Sec. 2155.072. STATEWIDE OR REGIONAL SERVICES CONTRACTS;
292	298		[COMMISSION] STUDIES. (a) The comptroller [commission] annually
293	299		shall select for study at least one service that is purchased by one
294	300		or more state agencies. The comptroller [commission] shall study a
295	301		selected service to determine whether the state would benefit if
296	302		the service were provided to appropriate state agencies under a
297	303		regional or statewide contract. The comptroller [commission] shall
298	304		give priority to studying services for which the comptroller
299	305		[commission] has delegated the purchasing function to many state
300	306		agencies.
301	307		(b) The comptroller [commission] is not required to enter
302	308		into a statewide or regional contract for the provision of a service
303	309		to state agencies if more than five bidders are willing to provide
304	310		the service to the state under a statewide or regional contract.
305	311		Sec. 2155.073. PARTICIPATION BY SMALL BUSINESSES IN STATE
306	312		PURCHASING. The comptroller [commission] shall foster
307	313		participation of small businesses in the purchasing activities of
308	314		the state by:
309	315		(1) assisting state agencies in developing procedures
310	316		to ensure the inclusion of small businesses on state agency master
311	317		bid lists;
312	318		(2) informing small businesses of state purchasing
313	319		opportunities;
314	320		(3) assisting small businesses in complying with the
315	321		procedures for bidding on state contracts;
316	322		(4) working with state and federal agencies and with
317	323		private organizations in disseminating information on state
318	324		purchasing procedures and the opportunities for small businesses to
319	325		participate in state contracts;
320	326		(5) assisting state agencies with the development of a
321	327		comprehensive list of small businesses capable of providing goods
322	328		or services to the state;
323	329		(6) making recommendations to state agencies to
324	330		simplify contract specifications and terms to increase the
325	331		opportunities for small business participation;
326	332		(7) working with state agencies to establish a
327	333		statewide policy for increasing the use of small businesses;
328	334		(8) assisting state agencies in seeking small
329	335		businesses capable of supplying goods and services that the
330	336		agencies require;
331	337		(9) assisting state agencies in identifying and
332	338		advising small businesses on the types of goods and services needed
333	339		by the agencies; and
334	340		(10) assisting state agencies in increasing the volume
335	341		of business placed with small businesses.
336	342		Sec. 2155.074. BEST VALUE STANDARD FOR PURCHASE OF GOODS OR
337	343		SERVICES. (a) For a purchase of goods and services under this
338	344		chapter, each state agency, including the comptroller
339	345		[commission], shall purchase goods and services that provide the
340	346		best value for the state.
341	347		(b) In determining the best value for the state, the
342	348		purchase price and whether the goods or services meet
343	349		specifications are the most important considerations. However, the
344	350		comptroller [commission] or other state agency may, subject to
345	351		Subsection (c) and Section 2155.075, consider other relevant
346	352		factors, including:
347	353		(1) installation costs;
348	354		(2) life cycle costs;
349	355		(3) the quality and reliability of the goods and
350	356		services;
351	357		(4) the delivery terms;
352	358		(5) indicators of probable vendor performance under
353	359		the contract such as past vendor performance, the vendor's
354	360		financial resources and ability to perform, the vendor's experience
355	361		or demonstrated capability and responsibility, and the vendor's
356	362		ability to provide reliable maintenance agreements and support;
357	363		(6) the cost of any employee training associated with
358	364		a purchase;
359	365		(7) the effect of a purchase on agency productivity;
360	366		(8) the vendor's anticipated economic impact to the
361	367		state or a subdivision of the state, including potential tax
362	368		revenue and employment; and
363	369		(9) other factors relevant to determining the best
364	370		value for the state in the context of a particular purchase.
365	371		(c) A state agency shall consult with and receive approval
366	372		from the comptroller [commission] before considering factors other
367	373		than price and meeting specifications when the agency procures
368	374		through competitive bidding goods or services with a value that
369	375		exceeds $100,000.
370	376		Sec. 2155.075. REQUIREMENT TO SPECIFY VALUE FACTORS IN
371	377		REQUEST FOR BIDS OR PROPOSALS. (a) For a purchase made through
372	378		competitive bidding, the comptroller [commission] or other state
373	379		agency making the purchase must specify in the request for bids the
374	380		factors other than price that the comptroller [commission] or
375	381		agency will consider in determining which bid offers the best value
376	382		for the state.
377	383		(b) For a purchase made through competitive sealed
378	384		proposals, the comptroller [commission] or other state agency
379	385		making the purchase:
380	386		(1) must specify in the request for proposals the
381	387		known factors other than price that the comptroller [commission] or
382	388		agency will consider in determining which proposal offers the best
383	389		value for the state; and
384	390		(2) may concurrently inform each vendor that made a
385	391		proposal on the contract of any additional factors the comptroller
386	392		[commission] or agency will consider in determining which proposal
387	393		offers the best value for the state if the comptroller [commission]
388	394		or other agency determines after opening the proposals that
389	395		additional factors not covered under Subdivision (1) are relevant
390	396		in determining which proposal offers the best value for the state.
391	397		SECTION 15. Section 2155.076(a), Government Code, is
392	398		amended to read as follows:
393	399		(a) The comptroller [commission] and each state agency by
394	400		rule shall develop and adopt protest procedures for resolving
395	401		vendor protests relating to purchasing issues. An agency's rules
396	402		must be consistent with the comptroller's [commission's] rules.
397	403		The rules must include standards for maintaining documentation
398	404		about the purchasing process to be used in the event of a protest.
399	405		SECTION 16. Sections 2155.077(a), (a-1), (b), (c), and (d),
400	406		Government Code, are amended to read as follows:
401	407		(a) The comptroller [commission] may bar a vendor from
402	408		participating in state contracts that are subject to this subtitle,
403	409		including contracts for which purchasing authority is delegated to
404	410		a state agency, for:
405	411		(1) substandard performance under a contract with the
406	412		state or a state agency;
407	413		(2) material misrepresentations in a bid or proposal
408	414		to the state or a state agency or during the course of performing a
409	415		contract with the state or a state agency;
410	416		(3) fraud;
411	417		(4) breaching a contract with the state or a state
412	418		agency; or
413	419		(5) repeated unfavorable performance reviews under
414	420		Section 2155.089 or repeated unfavorable classifications received
415	421		by the vendor under Section 2262.055 after considering the
416	422		following factors:
417	423		(A) the severity of the substandard performance
418	424		by the vendor;
419	425		(B) the impact to the state of the substandard
420	426		performance;
421	427		(C) any recommendations by a contracting state
422	428		agency that provides an unfavorable performance review;
423	429		(D) whether debarment of the vendor is in the
424	430		best interest of the state; and
425	431		(E) any other factor that the comptroller
426	432		considers relevant, as specified by comptroller rule.
427	433		(a-1) The comptroller [commission] shall bar a vendor from
428	434		participating in state contracts that are subject to this subtitle,
429	435		including contracts for which purchasing authority is delegated to
430	436		a state agency, if the vendor has been:
431	437		(1) convicted of violating a federal law in connection
432	438		with a contract awarded by the federal government for relief,
433	439		recovery, or reconstruction efforts as a result of Hurricane Rita,
434	440		as defined by Section 39.459, Utilities Code, Hurricane Katrina, or
435	441		any other disaster occurring after September 24, 2005; or
436	442		(2) assessed a penalty in a federal civil or
437	443		administrative enforcement action in connection with a contract
438	444		awarded by the federal government for relief, recovery, or
439	445		reconstruction efforts as a result of Hurricane Rita, as defined by
440	446		Section 39.459, Utilities Code, Hurricane Katrina, or any other
441	447		disaster occurring after September 24, 2005.
442	448		(b) Except as provided by Subsection (d), the comptroller
443	449		[commission] shall bar a vendor from participating in state
444	450		contracts under Subsection (a) or (a-2) for a period that is
445	451		commensurate with the seriousness of the vendor's action and the
446	452		damage to the state's interests.
447	453		(c) The comptroller [commission] by rule shall:
448	454		(1) state generally the reasons for which a vendor may
449	455		be barred from participating in state contracts and the periods for
450	456		which the vendor may be barred; and
451	457		(2) prescribe the procedures under which the
452	458		comptroller [commission] will determine whether and for how long a
453	459		vendor will be barred.
454	460		(d) The comptroller [commission] shall bar a vendor from
455	461		participating in state contracts under Subsection (a-1) for a
456	462		period of five years from the date the vendor was convicted or the
457	463		penalty was assessed.
458	464		SECTION 17. Section 2155.079, Government Code, is amended
459	465		to read as follows:
460	466		Sec. 2155.079. BUYING UNDER CONTRACT ESTABLISHED BY AGENCY
461	467		OTHER THAN COMPTROLLER [COMMISSION]. (a) The comptroller
462	468		[commission] shall adopt rules specifying the circumstances under
463	469		which it is advantageous for the state to allow a state agency to
464	470		purchase goods or services under a contract made by another state
465	471		agency other than the comptroller [commission], including as
466	472		provided under Subchapter I.
467	473		(b) If comptroller [commission] rules allow other agencies
468	474		to make purchases under a contract entered into by an agency using
469	475		delegated purchasing authority, the agency purchasing under
470	476		delegated authority may offer the goods or services available under
471	477		the contract to other agencies only if the agency first:
472	478		(1) establishes that the goods or services being
473	479		offered under its contract are not available under a contract
474	480		administered by the comptroller [commission]; and
475	481		(2) informs the comptroller [commission] of the terms
476	482		of the contract and the capabilities of the vendor.
477	483		SECTION 18. Sections 2155.080(a), (b), and (d), Government
478	484		Code, are amended to read as follows:
479	485		(a) The comptroller [commission] may establish an advisory
480	486		committee on procurement. The purpose of the committee is to
481	487		represent before the comptroller [commission] the state agency
482	488		purchasing community and the political subdivisions that use the
483	489		comptroller's [commission's] purchasing services.
484	490		(b) The committee is composed of officers or employees from
485	491		the comptroller [commission], from state agencies, including
486	492		institutions of higher education, and from political subdivisions
487	493		who are invited by the comptroller [commission] to serve on the
488	494		committee. The comptroller [commission] shall invite officers and
489	495		employees who are experienced in public purchasing, in public
490	496		finance, or who possess other appropriate expertise to serve on the
491	497		committee. Service on the committee is an additional duty of the
492	498		member's public office or employment. Chapter 2110 [Article
493	499		6252-33, Revised Statutes,] does not apply to the size or
494	500		composition of the committee. The comptroller [commission] shall
495	501		set staggered terms for the members of the committee.
496	502		(d) The committee shall recommend improvements in
497	503		comptroller [commission] or state agency purchasing practices to
498	504		the comptroller [commission]. The committee shall review and
499	505		comment on findings and recommendations related to purchasing that
500	506		are made by state agency internal auditors or by the state auditor.
501	507		SECTION 19. Sections 2155.081(a) and (b), Government Code,
502	508		are amended to read as follows:
503	509		(a) The comptroller [commission] may establish a vendor
504	510		advisory committee. The purpose of the committee is to represent
505	511		before the comptroller [commission] the vendor community, to
506	512		provide information to vendors, and to obtain vendor input on state
507	513		procurement practices.
508	514		(b) The committee is composed of employees from the
509	515		comptroller [commission] and vendors who have done business with
510	516		the state who are invited by the comptroller [commission] to serve
511	517		on the committee. The comptroller [commission] shall invite a
512	518		cross-section of the vendor community to serve on the committee,
513	519		inviting both large and small businesses and vendors who provide a
514	520		variety of different goods and services to the state. Chapter 2110
515	521		[Article 6252-33, Revised Statutes,] does not apply to the size or
516	522		composition of the committee. The comptroller [commission] shall
517	523		set staggered terms for the members of the committee.
518	524		SECTION 20. Sections 2155.083(a), (c), (d), (f), and (k),
519	525		Government Code, are amended to read as follows:
520	526		(a) Except as provided by Subsection (n), this section
521	527		applies to each state agency making a procurement that will exceed
522	528		$25,000 in value, without regard to the source of funds the agency
523	529		will use for the procurement, including a procurement that:
524	530		(1) is otherwise exempt from the comptroller's
525	531		[commission's] purchasing authority or the application of this
526	532		subtitle;
527	533		(2) is made under delegated purchasing authority;
528	534		(3) is related to a construction project; or
529	535		(4) is a procurement of professional or consulting
530	536		services.
531	537		(c) The comptroller [commission] each business day shall
532	538		produce and post a business daily in an electronic format. The
533	539		comptroller [commission] shall post in the business daily
534	540		information as prescribed by this section about each state agency
535	541		procurement that will exceed $25,000 in value. The comptroller
536	542		[commission] shall also post in the business daily other
537	543		information relating to the business activity of the state that the
538	544		comptroller [commission] considers to be of interest to the public.
539	545		(d) The comptroller [commission] shall make the business
540	546		daily available on the Internet. Each state agency shall cooperate
541	547		with the comptroller [commission] in making the electronic business
542	548		daily available.
543	549		(f) The comptroller [commission] and other state agencies
544	550		may not charge a fee designed to recover the cost of preparing and
545	551		gathering the information that is published in the business daily.
546	552		These costs are considered part of a procuring agency's
547	553		responsibility to publicly inform potential bidders or offerors of
548	554		its procurement opportunities.
549	555		(k) Each state agency that will award a procurement contract
550	556		estimated to exceed $25,000 in value shall send to the comptroller
551	557		[commission]:
552	558		(1) the information the comptroller [commission]
553	559		requires for posting in the state business daily under this
554	560		section; and
555	561		(2) a notice when the procurement contract has been
556	562		awarded or when the state agency has decided to not make the
557	563		procurement.
558	564		SECTION 21. Sections 2155.084(a) and (c), Government Code,
559	565		are amended to read as follows:
560	566		(a) The comptroller [commission] or the governing body of an
561	567		institution of higher education may negotiate purchases of goods of
562	568		any kind needed by a state agency or the institution of higher
563	569		education with the appropriate agency of the federal government.
564	570		The governing body of an institution of higher education may act
565	571		under this section either directly or through the comptroller
566	572		[commission] or another state agency.
567	573		(c) In negotiating purchases of goods from the federal
568	574		government under this section or under Subchapter G, Chapter 2175,
569	575		the comptroller [commission] or the governing body of the
570	576		institution of higher education may waive the requirement of a
571	577		bidder's bond and performance bond that otherwise would be
572	578		required.
573	579		SECTION 22. Section 2155.085, Government Code, is amended
574	580		to read as follows:
575	581		Sec. 2155.085. REVERSE AUCTION PROCEDURE. (a) The
576	582		comptroller [commission] shall:
577	583		(1) purchase goods or services using the reverse
578	584		auction procedure whenever:
579	585		(A) the procedure provides the best value to the
580	586		state; or
581	587		(B) all purchasing methods provide equal value to
582	588		the state;
583	589		(2) offer historically underutilized businesses
584	590		assistance and training relating to the reverse auction procedure;
585	591		and
586	592		(3) advise historically underutilized businesses on
587	593		contracts available using the reverse auction procedure.
588	594		(b) The comptroller [commission] shall set a goal of
589	595		purchasing at least 20 percent of the dollar value of goods or
590	596		services purchased by the comptroller [commission] using the
591	597		reverse auction procedure.
592	598		SECTION 23. The heading to Subchapter C, Chapter 2155,
593	599		Government Code, is amended to read as follows:
594	600		SUBCHAPTER C. DELEGATIONS OF AND EXCLUSIONS FROM COMPTROLLER'S
595	601		[COMMISSION'S] PURCHASING AUTHORITY AND CERTAIN EXEMPTIONS FROM
596	602		COMPETITIVE BIDDING
597	603		SECTION 24. Section 2155.131, Government Code, is amended
598	604		to read as follows:
599	605		Sec. 2155.131. DELEGATION OF AUTHORITY TO STATE AGENCIES.
600	606		The comptroller [commission] may delegate purchasing functions to a
601	607		state agency.
602	608		SECTION 25. Sections 2155.132(a), (b), (c), (d), (f), and
603	609		(g), Government Code, are amended to read as follows:
604	610		(a) A state agency is delegated the authority to purchase
605	611		goods and services if the purchase does not exceed $15,000. If the
606	612		comptroller [commission] determines that a state agency has not
607	613		followed the comptroller's [commission's] rules or the laws related
608	614		to the delegated purchases, the comptroller [commission] shall
609	615		report its determination to the members of the state agency's
610	616		governing body and to the governor, lieutenant governor, speaker of
611	617		the house of representatives, and Legislative Budget Board.
612	618		(b) The comptroller [commission] by rule may delegate to a
613	619		state agency the authority to purchase goods and services if the
614	620		purchase exceeds $15,000. In delegating purchasing authority under
615	621		this subsection or Section 2155.131, the comptroller [commission]
616	622		shall consider factors relevant to a state agency's ability to
617	623		perform purchasing functions, including:
618	624		(1) the capabilities of the agency's purchasing staff
619	625		and the existence of automated purchasing tools at the agency;
620	626		(2) the certification levels held by the agency's
621	627		purchasing personnel;
622	628		(3) the results of the comptroller's [commission's]
623	629		procurement review audits of an agency's purchasing practices; and
624	630		(4) whether the agency has adopted and published
625	631		protest procedures consistent with those of the comptroller
626	632		[commission] as part of its purchasing rules.
627	633		(c) The comptroller [commission] shall monitor the
628	634		purchasing practices of state agencies that are making delegated
629	635		purchases under Subsection (b) or Section 2155.131 to ensure that
630	636		the certification levels of the agency's purchasing personnel and
631	637		the quality of the agency's purchasing practices continue to
632	638		warrant the amount of delegated authority provided by the
633	639		comptroller [commission] to the agency. The comptroller
634	640		[commission] may revoke for cause all or part of the purchasing
635	641		authority that the comptroller [commission] delegated to a state
636	642		agency. The comptroller [commission] shall adopt rules to
637	643		administer this subsection.
638	644		(d) The comptroller [commission] by rule:
639	645		(1) shall prescribe procedures for a delegated
640	646		purchase; and
641	647		(2) shall prescribe procedures by which agencies may
642	648		use the comptroller's [commission's] services for delegated
643	649		purchases, in accordance with Section 2155.082.
644	650		(f) Goods purchased under this section may not include:
645	651		(1) an item for which a contract has been awarded under
646	652		the contract purchase procedure, unless the quantity purchased is
647	653		less than the minimum quantity specified in the contract;
648	654		(2) an item required by statute to be purchased from a
649	655		particular source; or
650	656		(3) a scheduled item that has been designated for
651	657		purchase by the comptroller [commission].
652	658		(g) A large purchase may not be divided into small lot
653	659		purchases to meet the dollar limits prescribed by this section. The
654	660		comptroller [commission] may not require that unrelated purchases
655	661		be combined into one purchase order to exceed the dollar limits
656	662		prescribed by this section.
657	663		SECTION 26. Section 2155.136(b), Government Code, is
658	664		amended to read as follows:
659	665		(b) To make a purchase under this section, the medical or
660	666		dental unit must:
661	667		(1) follow the competitive sealed proposals
662	668		procedures under Subchapter C, Chapter 2157, and comptroller
663	669		[commission] rules on the use of competitive sealed proposals; and
664	670		(2) submit to the comptroller [commission] a written
665	671		finding that competitive sealed bidding or informal competitive
666	672		bidding is not practical or is disadvantageous to the state for the
667	673		proposed acquisition.
668	674		SECTION 27. Section 2155.137(a), Government Code, is
669	675		amended to read as follows:
670	676		(a) The comptroller [commission] shall provide for
671	677		emergency purchases by a state agency and may set a monetary limit
672	678		on the amount of an emergency purchase.
673	679		SECTION 28. Section 2155.138(c), Government Code, is
674	680		amended to read as follows:
675	681		(c) The comptroller [commission] shall make awards under
676	682		this section based on proposed goods and services meeting formal
677	683		state specifications developed by the comptroller [commission] or
678	684		meeting commercial specifications approved by the comptroller
679	685		[commission].
680	686		SECTION 29. Sections 2155.140 and 2155.141, Government
681	687		Code, are amended to read as follows:
682	688		Sec. 2155.140. PURCHASE FROM GIFT OR GRANT NOT WITHIN
683	689		COMPTROLLER'S [COMMISSION'S] PURCHASING AUTHORITY. The
684	690		comptroller's [commission's] authority does not apply to a purchase
685	691		of goods or services from a gift or grant, including an industrial
686	692		or federal grant or contract in support of research.
687	693		Sec. 2155.141. PURCHASES FOR AUXILIARY ENTERPRISE NOT
688	694		WITHIN COMPTROLLER'S [COMMISSION'S] PURCHASING AUTHORITY. The
689	695		comptroller's [commission's] authority does not extend to a
690	696		purchase of goods and services for an auxiliary enterprise.
691	697		SECTION 30. Section 2155.1441(d), Government Code, is
692	698		amended to read as follows:
693	699		(d) A state agency shall provide appropriate information to
694	700		the comptroller [commission] concerning acquisitions made by the
695	701		agency under this section, but the comptroller's [commission's]
696	702		authority under this chapter and Chapters 2156, 2157, and 2158 does
697	703		not extend to the acquisition of goods and services made under this
698	704		section.
699	705		SECTION 31. Section 2155.145, Government Code, is amended
700	706		to read as follows:
701	707		Sec. 2155.145. CERTAIN PURCHASES BY TEXAS [NATURAL RESOURCE
702	708		CONSERVATION] COMMISSION ON ENVIRONMENTAL QUALITY. The Texas
703	709		[Natural Resource Conservation] Commission on Environmental
704	710		Quality is delegated all purchasing functions relating to the
705	711		administration of Subchapters F and I, Chapter 361, Health and
706	712		Safety Code, subject to the rules adopted by the comptroller
707	713		[commission] under Section 2155.132(c).
708	714		SECTION 32. Section 2155.146(c), Government Code, is
709	715		amended to read as follows:
710	716		(c) The comptroller [commission] shall procure goods or
711	717		services for the Employees Retirement System of Texas at the
712	718		request of the retirement system, and the retirement system may use
713	719		the services of the comptroller [commission] in procuring goods or
714	720		services.
715	721		SECTION 33. Section 2155.147(c), Government Code, is
716	722		amended to read as follows:
717	723		(c) The comptroller [commission] shall procure goods and
718	724		services for the General Land Office at the request of the land
719	725		office, and the land office may use the services of the comptroller
720	726		[commission] in procuring goods and services.
721	727		SECTION 34. Section 2155.148(c), Government Code, is
722	728		amended to read as follows:
723	729		(c) The comptroller [commission] shall procure goods or
724	730		services for the Texas Emergency Services Retirement System at the
725	731		request of the retirement system, and the retirement system may use
726	732		the services of the comptroller [commission] in procuring goods or
727	733		services.
728	734		SECTION 35. Section 2155.149(c), Government Code, is
729	735		amended to read as follows:
730	736		(c) At the request of the Veterans' Land Board, the
731	737		comptroller [commission] shall procure goods and services
732	738		described by Subsection (a) for the Veterans' Land Board. The
733	739		Veterans' Land Board may use the services of the comptroller
734	740		[commission] in procuring goods and services described by
735	741		Subsection (a).
736	742		SECTION 36. Section 2155.150(c), Government Code, is
737	743		amended to read as follows:
738	744		(c) The comptroller [commission] shall procure goods and
739	745		services, under Subsection (a), for the Railroad Commission of
740	746		Texas at the request of the railroad commission, and the railroad
741	747		commission may use the services of the comptroller [commission] in
742	748		procuring goods and services.
743	749		SECTION 37. The heading to Subchapter D, Chapter 2155,
744	750		Government Code, is amended to read as follows:
745	751		SUBCHAPTER D. EXTENSION OF COMPTROLLER [COMMISSION] PURCHASING
746	752		SERVICES TO OTHER ENTITIES
747	753		SECTION 38. Sections 2155.203 and 2155.204, Government
748	754		Code, are amended to read as follows:
749	755		Sec. 2155.203. PURCHASES BY LEGISLATURE AND LEGISLATIVE
750	756		AGENCIES. A house of the legislature, or an agency, council, or
751	757		committee of the legislature, including the Legislative Budget
752	758		Board, the Texas Legislative Council, the state auditor's office,
753	759		and the Legislative Reference Library, may use the comptroller's
754	760		[commission's] purchasing services for purchasing goods and
755	761		services, including items covered by Section 21, Article XVI, Texas
756	762		Constitution.
757	763		Sec. 2155.204. LOCAL GOVERNMENT PURCHASING PROGRAM. The
758	764		comptroller's [commission's] provision of purchasing services for
759	765		local governments is governed by Subchapter D, Chapter 271, Local
760	766		Government Code.
761	767		SECTION 39. Sections 2155.261, 2155.262, 2155.263,
762	768		2155.265, 2155.267, 2155.269, and 2155.270, Government Code, are
763	769		amended to read as follows:
764	770		Sec. 2155.261. APPLICABILITY. This subchapter:
765	771		(1) applies to a purchase or other acquisition under
766	772		this chapter or Chapters 2156, 2157, and 2158 for which competitive
767	773		bidding or competitive sealed proposals are required;
768	774		(2) applies to a state agency that makes a purchase or
769	775		other acquisition under this chapter or Chapters 2156, 2157, and
770	776		2158, including the comptroller [commission] and an agency that
771	777		makes an acquisition under Section 2155.131 [or 2155.133]; and
772	778		(3) does not apply to a purchase or other acquisition
773	779		made by the comptroller [commission] under Subchapter A, Chapter
774	780		2156.
775	781		Sec. 2155.262. UNIFORM REGISTRATION FORM. (a) The
776	782		comptroller [commission] shall develop a uniform registration form
777	783		for applying to do business with the comptroller [commission] or
778	784		with another state agency.
779	785		(b) The comptroller [commission] and each state agency
780	786		shall make the form available to an applicant.
781	787		(c) The form must include an application for:
782	788		(1) certification as a historically underutilized
783	789		business;
784	790		(2) a payee identification number for use by the
785	791		comptroller; and
786	792		(3) placement on the comptroller's [commission's]
787	793		master bidders list.
788	794		(d) A state agency shall submit to the comptroller
789	795		[commission] each uniform registration form that it receives.
790	796		Sec. 2155.263. [COMMISSION TO MAINTAIN] CENTRALIZED MASTER
791	797		BIDDERS LIST. (a) The comptroller [commission] shall maintain a
792	798		centralized master bidders list and register on the list the name
793	799		and address of each vendor that applies for registration under
794	800		rules adopted under this subchapter. The comptroller [commission]
795	801		may include other relevant vendor information on the list.
796	802		(b) The comptroller [commission] shall maintain the
797	803		centralized master bidders list in a manner that facilitates a
798	804		state agency's solicitation of vendors that serve the agency's
799	805		geographic area.
800	806		(c) The centralized master bidders list shall be used for
801	807		all available procurement processes authorized by this subtitle and
802	808		shall also be used to the fullest extent possible by state agencies
803	809		that make purchases exempt from the comptroller's [commission's]
804	810		purchasing authority.
805	811		Sec. 2155.265. ACCESS TO MASTER BIDDERS LIST. (a) The
806	812		comptroller [commission] shall make the master bidders list
807	813		available to each state agency that makes a purchase or other
808	814		acquisition to which this subchapter applies.
809	815		(b) The comptroller [commission] shall make the list
810	816		available either electronically or in another form, depending on
811	817		each state agency's needs.
812	818		Sec. 2155.267. [COMMISSION] RULES AND PROCEDURES REGARDING
813	819		MASTER BIDDERS LIST. (a) The comptroller [commission] shall adopt
814	820		procedures for:
815	821		(1) making and maintaining the master bidders list;
816	822		and
817	823		(2) removing an inactive vendor from the list.
818	824		(b) The comptroller [commission] shall establish by rule a
819	825		vendor classification process under which only a vendor able to
820	826		make a bid or proposal on a particular purchase or other acquisition
821	827		may be solicited under this subchapter.
822	828		Sec. 2155.269. WAIVER. The comptroller [commission] by
823	829		rule may establish a process under which the requirement for
824	830		soliciting bids or proposals from eligible vendors on a bidders
825	831		list may be waived for an appropriate state agency or an appropriate
826	832		purchase or other acquisition under circumstances in which the
827	833		requirement is not warranted.
828	834		Sec. 2155.270. AGENCY ASSISTANCE WITH BIDDERS LIST ISSUES.
829	835		The comptroller [commission] may assist a state agency with issues
830	836		relating to a bidders list.
831	837		SECTION 40. Section 2155.321(2), Government Code, is
832	838		amended to read as follows:
833	839		(2) "Purchase information" means information that the
834	840		comptroller [commission] determines is necessary to audit a
835	841		purchase under this subchapter.
836	842		SECTION 41. Section 2155.322(c), Government Code, is
837	843		amended to read as follows:
838	844		(c) The comptroller [commission] by rule may require that
839	845		purchase information be sent directly to the comptroller
840	846		[commission] in circumstances under which the comptroller
841	847		[commission] considers it necessary.
842	848		SECTION 42. The heading to Section 2155.323, Government
843	849		Code, is amended to read as follows:
844	850		Sec. 2155.323. [COMPTROLLER] AUDIT OF FINANCIAL
845	851		INFORMATION[; TRANSMISSION OF PURCHASE INFORMATION TO COMMISSION].
846	852		SECTION 43. Section 2155.384, Government Code, is amended
847	853		to read as follows:
848	854		Sec. 2155.384. AUTHORITY TO PAY CHARGES. The comptroller
849	855		[commission], a state agency, or an entity authorized under Chapter
850	856		271, Local Government Code, or Section 2155.202 to purchase from a
851	857		contract entered into under the authority of the comptroller
852	858		[commission] may pay a restocking charge, cancellation fee, or
853	859		other similar charge if the comptroller [commission], state agency,
854	860		or other entity determines that the charge is justifiable.
855	861		SECTION 44. Section 2155.385(a), Government Code, is
856	862		amended to read as follows:
857	863		(a) If authorized by rule adopted by the comptroller under
858	864		Section 403.023, the comptroller [commission] may contract with one
859	865		or more credit card issuers for state agencies to use credit cards
860	866		to pay for purchases. The comptroller [commission] may not enter
861	867		into a contract that conflicts with the [comptroller's] rules
862	868		described by this subsection.
863	869		SECTION 45. Section 2155.441(c), Government Code, is
864	870		amended to read as follows:
865	871		(c) The comptroller [commission] is not required to
866	872		purchase products under this section that do not meet formal state
867	873		specifications developed by the comptroller [commission] or meet
868	874		commercial specifications approved by the comptroller
869	875		[commission].
870	876		SECTION 46. Section 2155.442, Government Code, is amended
871	877		to read as follows:
872	878		Sec. 2155.442. PREFERENCE FOR ENERGY EFFICIENT PRODUCTS.
873	879		The comptroller [commission] shall give preference to energy
874	880		efficient products in purchases made under this subtitle if:
875	881		(1) the products meet state specifications regarding
876	882		quantity and quality; and
877	883		(2) the cost of the product is equal to or less than
878	884		the cost of other similar products that are not energy efficient.
879	885		SECTION 47. Section 2155.443, Government Code, is amended
880	886		to read as follows:
881	887		Sec. 2155.443. PREFERENCE FOR RUBBERIZED ASPHALT PAVING.
882	888		The comptroller [commission] may give preference to rubberized
883	889		asphalt paving made from scrap tires by a facility in this state in
884	890		purchases of rubberized asphalt paving material if the cost as
885	891		determined by a life-cycle cost benefit analysis does not exceed by
886	892		more than 15 percent the bid cost of alternative paving materials.
887	893		SECTION 48. Sections 2155.444(a), (d), and (e), Government
888	894		Code, are amended to read as follows:
889	895		(a) The comptroller [commission] and all state agencies
890	896		making purchases of goods, including agricultural products, shall
891	897		give preference to those produced or grown in this state or offered
892	898		by Texas bidders as follows:
893	899		(1) goods produced or offered by a Texas bidder that is
894	900		owned by a service-disabled veteran who is a Texas resident shall be
895	901		given a first preference and goods produced in this state or offered
896	902		by other Texas bidders shall be given second preference, if the cost
897	903		to the state and quality are equal; and
898	904		(2) agricultural products grown in this state shall be
899	905		given first preference and agricultural products offered by Texas
900	906		bidders shall be given second preference, if the cost to the state
901	907		and quality are equal.
902	908		(d) The comptroller [commission] and all state agencies
903	909		making purchase of vegetation for landscaping purposes, including
904	910		plants, shall give preference to Texas vegetation native to the
905	911		region if the cost to the state is not greater and the quality is not
906	912		inferior.
907	913		(e) The comptroller [commission] and all state agencies
908	914		procuring services shall give first preference to services offered
909	915		by a Texas bidder that is owned by a service-disabled veteran who is
910	916		a Texas resident and shall give second preference to services
911	917		offered by other Texas bidders if:
912	918		(1) the services meet state requirements regarding the
913	919		service to be performed and expected quality; and
914	920		(2) the cost of the service does not exceed the cost of
915	921		other similar services of similar expected quality that are offered
916	922		by a bidder that is not entitled to a preference under this
917	923		subsection.
918	924		SECTION 49. Sections 2155.445(a), (b), and (c), Government
919	925		Code, are amended to read as follows:
920	926		(a) The comptroller [commission] and state agencies shall
921	927		give preference to recycled, remanufactured, or environmentally
922	928		sensitive products, as those terms are defined by rule of the
923	929		comptroller [commission], in purchases made under this subtitle if:
924	930		(1) the product meets state specifications regarding
925	931		quantity and quality; and
926	932		(2) the average price of the product is not more than
927	933		10 percent greater than the price of comparable nonrecycled
928	934		products.
929	935		(b) The comptroller [commission] regularly shall review and
930	936		revise its procurement procedures and specifications for the
931	937		purchase of goods to:
932	938		(1) eliminate procedures and specifications that
933	939		explicitly discriminate against recycled, remanufactured, or
934	940		environmentally sensitive products, as those terms are defined by
935	941		rule of the comptroller [commission]; and
936	942		(2) encourage the use of recycled, remanufactured, or
937	943		environmentally sensitive products.
938	944		(c) In developing new procedures and specifications, the
939	945		comptroller [commission] shall encourage the use of recycled
940	946		products and products that may be recycled or reused or that are
941	947		remanufactured or environmentally sensitive.
942	948		SECTION 50. Sections 2155.446(a) and (b), Government Code,
943	949		are amended to read as follows:
944	950		(a) Subject to Subsection (c), the comptroller [commission]
945	951		shall contract for paper containing the highest proportion of
946	952		recycled fibers for all purposes for which paper with recycled
947	953		fibers may be used and to the extent that the paper is available
948	954		through normal commercial sources to supply the state's needs.
949	955		(b) Subject to Subsection (c), a state agency that purchases
950	956		through the comptroller [commission] shall place orders for papers
951	957		containing recycled fibers to the highest extent of its needs and to
952	958		the extent that the paper is available through the comptroller's
953	959		[commission's] purchasing procedures.
954	960		SECTION 51. Section 2155.447, Government Code, is amended
955	961		to read as follows:
956	962		Sec. 2155.447. PURCHASE OF RECYCLED OIL. The comptroller
957	963		[commission], all state agencies, and all state agency employees
958	964		who purchase motor oil and other automotive lubricants for
959	965		state-owned vehicles shall give preference to motor oils and
960	966		lubricants that contain at least 25 percent recycled oil if the cost
961	967		to the state and the quality are comparable to those of new oil and
962	968		lubricants.
963	969		SECTION 52. Sections 2155.448(a) and (b), Government Code,
964	970		are amended to read as follows:
965	971		(a) Each state fiscal year, the comptroller [commission] by
966	972		rule may identify recycled, remanufactured, or environmentally
967	973		sensitive commodities or services, as those terms are defined by
968	974		rule of the comptroller [commission], and designate purchasing
969	975		goals for the procurement of those commodities and services by
970	976		state agencies for that fiscal year.
971	977		(b) A state agency that intends to purchase a commodity or
972	978		service that accomplishes the same purpose as a commodity or
973	979		service identified under Subsection (a) that does not meet the
974	980		definition of a recycled product or that is not remanufactured or
975	981		environmentally sensitive, as those terms are defined by rule of
976	982		the comptroller [commission], shall include with the procurement
977	983		file a written justification signed by the executive head of the
978	984		agency stating the reasons for the determination that the commodity
979	985		or service identified by the comptroller [commission] will not meet
980	986		the requirements of the agency.
981	987		SECTION 53. Section 2155.449(b), Government Code, is
982	988		amended to read as follows:
983	989		(b) The comptroller [commission] and all state agencies
984	990		procuring goods or services shall give preference to goods or
985	991		services produced in an economically depressed or blighted area if:
986	992		(1) the goods or services meet state specifications
987	993		regarding quantity and quality; and
988	994		(2) the cost of the good or service does not exceed the
989	995		cost of other similar products or services that are not produced in
990	996		an economically depressed or blighted area.
991	997		SECTION 54. Section 2155.450, Government Code, is amended
992	998		to read as follows:
993	999		Sec. 2155.450. PREFERENCE FOR PRODUCTS OF FACILITIES ON
994	1000		FORMERLY CONTAMINATED PROPERTY. The comptroller [commission] and
995	1001		state agencies shall give preference to goods produced at a
996	1002		facility located on property for which the owner has received a
997	1003		certificate of completion under Section 361.609, Health and Safety
998	1004		Code, if the goods meet state specifications regarding quantity,
999	1005		quality, delivery, life cycle costs, and price.
1000	1006		SECTION 55. Section 2155.451(b), Government Code, is
1001	1007		amended to read as follows:
1002	1008		(b) The comptroller [commission] and state agencies
1003	1009		procuring goods or services may:
1004	1010		(1) give preference to goods or services of a vendor
1005	1011		that demonstrates that the vendor meets or exceeds any state or
1006	1012		federal environmental standards, including voluntary standards,
1007	1013		relating to air quality; or
1008	1014		(2) require that a vendor demonstrate that the vendor
1009	1015		meets or exceeds any state or federal environmental standards,
1010	1016		including voluntary standards, relating to air quality.
1011	1017		SECTION 56. Section 2155.452, Government Code, is amended
1012	1018		to read as follows:
1013	1019		Sec. 2155.452. PREFERENCE FOR CONTRACTORS PROVIDING FOODS
1014	1020		OF HIGHER NUTRITIONAL VALUE. (a) The comptroller [commission] and
1015	1021		state agencies making purchases of food for consumption in a public
1016	1022		cafeteria may give preference to contractors who provide foods of
1017	1023		higher nutritional value and who do not provide foods containing
1018	1024		trans fatty acids for consumption in the cafeteria.
1019	1025		(b) In complying with this section, the comptroller
1020	1026		[commission] and state agencies shall review the Department of
1021	1027		Agriculture's nutrition standards.
1022	1028		SECTION 57. Sections 2155.502(a), (b), and (c), Government
1023	1029		Code, are amended to read as follows:
1024	1030		(a) The comptroller [commission] shall develop a schedule
1025	1031		of multiple award contracts that have been previously awarded using
1026	1032		a competitive process by:
1027	1033		(1) the federal government, including the federal
1028	1034		General Services Administration; or
1029	1035		(2) any other governmental entity in any state.
1030	1036		(b) In developing a schedule under Subsection (a) or (e),
1031	1037		the comptroller [commission] or department, as appropriate, shall
1032	1038		modify any contractual terms, with the agreement of the parties to
1033	1039		the contract, as necessary to comply with any federal or state
1034	1040		requirements, including rules adopted under this subchapter.
1035	1041		(c) The comptroller [commission] may not list a multiple
1036	1042		award contract on a schedule developed under Subsection (a) if the
1037	1043		goods or services provided by that contract:
1038	1044		(1) are available from only one vendor;
1039	1045		(2) are telecommunications services, facilities, or
1040	1046		equipment;
1041	1047		(3) are commodity items as defined by Section
1042	1048		2157.068(a); or
1043	1049		(4) are engineering services as described by Section
1044	1050		1001.003, Occupations Code, or architectural services as described
1045	1051		by Section 1051.001, Occupations Code.
1046	1052		SECTION 58. Sections 2155.505(b) and (c), Government Code,
1047	1053		are amended to read as follows:
1048	1054		(b) The comptroller [commission] shall strongly encourage
1049	1055		each vendor with a contract listed on a schedule developed under
1050	1056		this subchapter and who is not a historically underutilized
1051	1057		business or small business to use historically underutilized or
1052	1058		small businesses to sell or provide a service under the contract.
1053	1059		If a vendor does not make a good faith effort to use historically
1054	1060		underutilized and small businesses under the contract, the
1055	1061		comptroller [commission] may exclude the vendor from being listed
1056	1062		on a schedule developed under this subchapter.
1057	1063		(c) A historically underutilized business or small business
1058	1064		may sell or provide a service under another vendor's contract
1059	1065		listed on a schedule developed under this subchapter if:
1060	1066		(1) the contract is on a schedule developed under
1061	1067		Section 2155.502;
1062	1068		(2) the vendor for the contract authorizes in writing
1063	1069		the historically underutilized business or small business to sell
1064	1070		or provide a service under that contract; and
1065	1071		(3) the historically underutilized business or small
1066	1072		business provides that written authorization to the comptroller
1067	1073		[commission].
1068	1074		SECTION 59. Sections 2155.506, 2155.508, and 2155.510,
1069	1075		Government Code, are amended to read as follows:
1070	1076		Sec. 2155.506. REPORTING REQUIREMENTS. (a) A vendor
1071	1077		listed on a contract for a schedule developed under this subchapter
1072	1078		shall report its sales to the comptroller [commission] in the
1073	1079		manner prescribed by the comptroller [commission].
1074	1080		(b) The comptroller [commission] shall compile the
1075	1081		information reported under Subsection (a) and include the
1076	1082		information in its report under Section 2101.011.
1077	1083		Sec. 2155.508. INTERNET AVAILABILITY. (a) The comptroller
1078	1084		[commission] shall develop a database of the multiple award
1079	1085		contracts developed under this subchapter and make that information
1080	1086		available on an Internet site. The database must have search
1081	1087		capabilities that allow a person to easily access the contracts.
1082	1088		(b) The comptroller [commission] shall allow vendors to
1083	1089		apply through the Internet site to be listed on a schedule developed
1084	1090		under this subchapter. The applicant shall provide an electronic
1085	1091		mail address to the comptroller [commission] as part of the
1086	1092		application process.
1087	1093		Sec. 2155.510. REBATES. (a) The comptroller [commission]
1088	1094		may collect a rebate from a vendor under a contract listed on a
1089	1095		schedule developed under this subchapter.
1090	1096		(b) If a purchase resulting in a rebate under this section
1091	1097		is made in whole or in part with federal funds, the comptroller
1092	1098		[commission] shall ensure that, to the extent the purchase was made
1093	1099		with federal funds, the appropriate portion of the rebate is
1094	1100		reported to the purchasing agency for reporting and reconciliation
1095	1101		purposes with the appropriate federal funding agency.
1096	1102		SECTION 60. Sections 2156.001, 2156.0011, and 2156.004,
1097	1103		Government Code, are amended to read as follows:
1098	1104		Sec. 2156.001. CONTRACT PURCHASE PROCEDURE AUTHORIZED. The
1099	1105		comptroller [commission] may use the contract purchase procedure to
1100	1106		purchase goods and services.
1101	1107		Sec. 2156.0011. COMPTROLLER POWERS AND [TRANSFER OF]
1102	1108		DUTIES[; REFERENCE]. [(a)] The comptroller has under this chapter
1103	1109		the powers and duties described by Section 2151.004(d) [of the
1104	1110		commission under this chapter are transferred to the comptroller].
1105	1111		[(b) In this chapter, a reference to the commission means
1106	1112		the comptroller.]
1107	1113		Sec. 2156.004. BID DEPOSIT. (a) The comptroller
1108	1114		[commission], as considered necessary, may require a bid deposit in
1109	1115		an amount determined by the comptroller [commission]. The amount
1110	1116		of the deposit, if any, must be stated in the public notice and the
1111	1117		invitation to bid.
1112	1118		(b) On the award of a bid or the rejection of all bids, the
1113	1119		comptroller [commission] shall refund the bid deposit of an
1114	1120		unsuccessful bidder.
1115	1121		(c) The comptroller [commission] may accept from a bidder a
1116	1122		bid deposit in the form of a blanket bond.
1117	1123		SECTION 61. Section 2156.006(b), Government Code, is
1118	1124		amended to read as follows:
1119	1125		(b) The comptroller [commission] may waive this requirement
1120	1126		if the failure to comply is beyond the bidder's control.
1121	1127		SECTION 62. Sections 2156.007(a), (b), and (d), Government
1122	1128		Code, are amended to read as follows:
1123	1129		(a) The comptroller [commission] or other state agency
1124	1130		making a purchase shall award a contract to the bidder offering the
1125	1131		best value for the state while conforming to the specifications
1126	1132		required.
1127	1133		(b) In determining the bidder offering the best value, the
1128	1134		comptroller [commission] or other state agency may consider the
1129	1135		safety record of the bidder, the entity represented by the bidder,
1130	1136		and any person acting for the represented entity only if:
1131	1137		(1) the comptroller [commission] or other state agency
1132	1138		has adopted a written definition and criteria for accurately
1133	1139		determining the safety record of a bidder; and
1134	1140		(2) the comptroller [commission] or state agency
1135	1141		provided notice in the bid specifications to prospective bidders
1136	1142		that a bidder's safety record may be considered in determining the
1137	1143		bidder offering the best value for the state.
1138	1144		(d) In determining the bidder offering the best value, in
1139	1145		addition to price the comptroller [commission] or other state
1140	1146		agency shall consider:
1141	1147		(1) the quality and availability of the goods or
1142	1148		contractual services and their adaptability to the use required;
1143	1149		(2) the scope of conditions attached to the bid;
1144	1150		(3) the bidder's ability, capacity, and skill to
1145	1151		perform the contract or provide the service required;
1146	1152		(4) the bidder's ability to perform the contract or
1147	1153		provide the service promptly, or in the time required, without
1148	1154		delay or interference;
1149	1155		(5) the bidder's character, responsibility,
1150	1156		integrity, and experience or demonstrated capability;
1151	1157		(6) the quality of performance of previous contracts
1152	1158		or services;
1153	1159		(7) the bidder's previous and existing compliance with
1154	1160		laws relating to the contract or service;
1155	1161		(8) the bidder's previous or existing noncompliance
1156	1162		with specification requirements relating to the time of submission
1157	1163		of specified information, including samples, models, drawings, or
1158	1164		certificates;
1159	1165		(9) the sufficiency of the bidder's financial
1160	1166		resources and ability to perform the contract or provide the
1161	1167		service; and
1162	1168		(10) the bidder's ability to provide future
1163	1169		maintenance, repair parts, and service for the use of the
1164	1170		contract's subject.
1165	1171		SECTION 63. Sections 2156.008, 2156.009, and 2156.010,
1166	1172		Government Code, are amended to read as follows:
1167	1173		Sec. 2156.008. REJECTION OF BIDS. (a) The comptroller
1168	1174		[commission] or other state agency making the purchase shall reject
1169	1175		a bid in which there is a material failure to comply with
1170	1176		specification requirements.
1171	1177		(b) The comptroller [commission] or other state agency may
1172	1178		reject all bids or parts of bids if the rejection serves the state's
1173	1179		interest.
1174	1180		Sec. 2156.009. REASONS FOR AWARD. On award of a contract,
1175	1181		the division of the comptroller [commission] responsible for
1176	1182		purchasing or the state agency making the purchase shall prepare
1177	1183		and file with other records relating to the transaction a statement
1178	1184		of the reasons for making the award to the successful bidder and the
1179	1185		factors considered in determining which bidder offered the best
1180	1186		value for the state.
1181	1187		Sec. 2156.010. TIE BIDS. In the case of tie bids, the value
1182	1188		and cost to the state being equal, a contract shall be awarded under
1183	1189		comptroller [commission] rules.
1184	1190		SECTION 64. Sections 2156.011(a), (b), and (d), Government
1185	1191		Code, are amended to read as follows:
1186	1192		(a) The comptroller [commission] may require a performance
1187	1193		bond before executing a contract.
1188	1194		(b) The comptroller [commission] may require the bond in an
1189	1195		amount that the comptroller [commission] finds reasonable and
1190	1196		necessary to protect the state's interests.
1191	1197		(d) Any bond required shall be filed with the comptroller
1192	1198		[commission].
1193	1199		SECTION 65. Section 2156.061, Government Code, is amended
1194	1200		to read as follows:
1195	1201		Sec. 2156.061. USE OF OPEN MARKET PURCHASE PROCEDURE
1196	1202		[AUTHORIZED; USE OF PROCEDURE]. On a comptroller [commission]
1197	1203		determination that a purchase of goods or services may be made most
1198	1204		effectively in the open market, the comptroller [commission] may
1199	1205		use the open market purchase procedure and the purchase may be made
1200	1206		without newspaper advertising.
1201	1207		SECTION 66. Sections 2156.064(a) and (b), Government Code,
1202	1208		are amended to read as follows:
1203	1209		(a) The comptroller [commission] shall keep a record of all
1204	1210		open market orders and bids submitted on the orders.
1205	1211		(b) A tabulation of the bids shall be open for public
1206	1212		inspection, under rules established by the comptroller
1207	1213		[commission].
1208	1214		SECTION 67. Sections 2156.065, 2156.066, 2156.121,
1209	1215		2156.122, 2156.123, 2156.124, 2156.125, and 2156.126, Government
1210	1216		Code, are amended to read as follows:
1211	1217		Sec. 2156.065. AGENCY REVIEW OF BIDS. (a) On the request
1212	1218		of a state agency to review the bids on a purchase administered by
1213	1219		the comptroller [commission], the comptroller [commission] shall
1214	1220		send or make available to the requesting agency copies of each bid
1215	1221		received and the comptroller's [commission's] recommended award.
1216	1222		(b) If, after review of the bids and evaluation of the
1217	1223		quality of goods or services offered in the bids, the state agency
1218	1224		determines that the bid selected by the comptroller [commission]
1219	1225		does not offer the best value for the state, the agency may file
1220	1226		with the comptroller [commission] a written recommendation that the
1221	1227		award be made to the bidder who, according to the agency's
1222	1228		determination, offers the best value for the state. The agency
1223	1229		recommendation must include a justification of the agency's
1224	1230		determination.
1225	1231		(c) The comptroller [commission] shall consider, but is not
1226	1232		bound by, the agency recommendation in making the award.
1227	1233		Sec. 2156.066. STATEMENT OF REASONS FOR AWARD. The
1228	1234		division of the comptroller [commission] responsible for
1229	1235		purchasing or the state agency making a purchase shall prepare and
1230	1236		file with other records relating to a transaction under this
1231	1237		subchapter a statement of the reasons for placing an order with a
1232	1238		successful bidder for the transaction and the factors considered in
1233	1239		determining the bid offering the best value for the state.
1234	1240		Sec. 2156.121. USE OF COMPETITIVE SEALED PROPOSALS. (a)
1235	1241		The comptroller [commission] or other state agency may follow a
1236	1242		procedure using competitive sealed proposals to acquire goods or
1237	1243		services if the comptroller [commission] determines that
1238	1244		competitive sealed bidding and informal competitive bidding for the
1239	1245		purchase or type of purchase are not practical or are
1240	1246		disadvantageous to the state.
1241	1247		(b) A state agency shall send its proposal specifications
1242	1248		and criteria to the comptroller [commission] for approval or
1243	1249		request the comptroller [commission] to develop the proposal
1244	1250		specifications and criteria.
1245	1251		(c) The comptroller [commission] shall determine whether to
1246	1252		delegate sole oversight of the acquisition to a state agency or to
1247	1253		retain oversight of the procurement.
1248	1254		Sec. 2156.122. SOLICITATION OF PROPOSALS. The comptroller
1249	1255		[commission] or other state agency shall:
1250	1256		(1) solicit proposals under this subchapter by a
1251	1257		request for proposals; and
1252	1258		(2) give public notice of a request for proposals in
1253	1259		the manner provided for requests for bids under Subchapter B.
1254	1260		Sec. 2156.123. OPENING AND FILING OF PROPOSALS; PUBLIC
1255	1261		INSPECTION. (a) The comptroller [commission] or other state
1256	1262		agency shall avoid disclosing the contents of each proposal on
1257	1263		opening the proposal and during negotiations with competing
1258	1264		offerors.
1259	1265		(b) The comptroller [commission] or other state agency
1260	1266		shall file each proposal in a register of proposals, which, after a
1261	1267		contract is awarded, is open for public inspection unless the
1262	1268		register contains information that is excepted from required
1263	1269		disclosure under Subchapter C, Chapter 552.
1264	1270		Sec. 2156.124. DISCUSSION AND REVISION OF PROPOSALS. (a)
1265	1271		As provided in a request for proposals and under rules adopted by
1266	1272		the comptroller [commission], the comptroller [commission] or
1267	1273		other state agency may discuss acceptable or potentially acceptable
1268	1274		proposals with offerors to assess an offeror's ability to meet the
1269	1275		solicitation requirements. When the comptroller [commission] is
1270	1276		managing the request for proposals process, it shall invite a
1271	1277		requisitioning agency to participate in discussions conducted
1272	1278		under this section.
1273	1279		(b) After receiving a proposal but before making an award,
1274	1280		the comptroller [commission] or other state agency may permit the
1275	1281		offeror to revise the proposal to obtain the best final offer.
1276	1282		(c) The comptroller [commission] or other state agency may
1277	1283		not disclose information derived from proposals submitted from
1278	1284		competing offerors in conducting discussions under this section.
1279	1285		(d) The comptroller [commission] or other state agency
1280	1286		shall provide each offeror an equal opportunity to discuss and
1281	1287		revise proposals.
1282	1288		Sec. 2156.125. CONTRACT AWARD. (a) The comptroller
1283	1289		[commission] or other state agency shall make a written award of a
1284	1290		contract to the offeror whose proposal offers the best value for the
1285	1291		state, considering price, past vendor performance, vendor
1286	1292		experience or demonstrated capability, and the evaluation factors
1287	1293		in the request for proposals.
1288	1294		(b) The comptroller [commission] or other state agency
1289	1295		shall refuse all offers if none of the offers submitted is
1290	1296		acceptable.
1291	1297		(c) The comptroller [commission] or other state agency
1292	1298		shall determine which proposal offers the best value for the state
1293	1299		in accordance with Sections 2155.074 and 2155.075.
1294	1300		(d) The comptroller [commission] or other state agency
1295	1301		shall state in writing in the contract file the reasons for making
1296	1302		an award.
1297	1303		Sec. 2156.126. ADOPTION OF RULES; STATE AGENCY ASSISTANCE.
1298	1304		The comptroller [commission] may adopt rules and request assistance
1299	1305		from other state agencies to perform its responsibilities under
1300	1306		this subchapter.
1301	1307		SECTION 68. Sections 2156.181(a) and (b), Government Code,
1302	1308		are amended to read as follows:
1303	1309		(a) The comptroller [commission] may enter into one or more
1304	1310		compacts, interagency agreements, or cooperative purchasing
1305	1311		agreements directly with one or more state governments, agencies of
1306	1312		other states, or other governmental entities or may participate in,
1307	1313		sponsor, or administer a cooperative purchasing agreement through
1308	1314		an entity that facilitates those agreements for the purchase of
1309	1315		goods or services if the comptroller [commission] determines that
1310	1316		the agreement would be in the best interest of the state.
1311	1317		(b) The comptroller [commission] may adopt rules to
1312	1318		implement this section.
1313	1319		SECTION 69. Section 2157.001(1), Government Code, is
1314	1320		amended to read as follows:
1315	1321		(1) "Automated information system" includes:
1316	1322		(A) the computers and computer devices on which
1317	1323		an information system is automated, including computers and
1318	1324		computer devices that the comptroller [commission] identifies in
1319	1325		guidelines developed by the comptroller [commission] in
1320	1326		consultation with the department and in accordance with Chapter
1321	1327		2054 and rules adopted under that chapter;
1322	1328		(B) a service related to the automation of an
1323	1329		information system, including computer software or computers;
1324	1330		(C) a telecommunications apparatus or device
1325	1331		that serves as a component of a voice, data, or video communications
1326	1332		network for transmitting, switching, routing, multiplexing,
1327	1333		modulating, amplifying, or receiving signals on the network, and
1328	1334		services related to telecommunications that are not covered under
1329	1335		Paragraph (D); and
1330	1336		(D) for the department, as telecommunications
1331	1337		provider for the state, the term includes any service provided by a
1332	1338		telecommunications provider, as that term is defined by Section
1333	1339		51.002, Utilities Code.
1334	1340		SECTION 70. Sections 2157.0011 and 2157.003, Government
1335	1341		Code, are amended to read as follows:
1336	1342		Sec. 2157.0011. COMPTROLLER POWERS AND [TRANSFER OF]
1337	1343		DUTIES[; REFERENCE]. [(a)] The comptroller has under this chapter
1338	1344		the powers and duties described by Section 2151.004(d) [of the
1339	1345		commission under this chapter are transferred to the comptroller].
1340	1346		[(b) In this chapter, a reference to the commission means
1341	1347		the comptroller.]
1342	1348		Sec. 2157.003. DETERMINING BEST VALUE FOR PURCHASES OF
1343	1349		AUTOMATED INFORMATION SYSTEMS. "Best value" for purposes of this
1344	1350		chapter means the lowest overall cost of an automated information
1345	1351		system. In determining the lowest overall cost for a purchase or
1346	1352		lease of an automated information system under this chapter, the
1347	1353		comptroller [commission] or a state agency shall consider factors
1348	1354		including:
1349	1355		(1) the purchase price;
1350	1356		(2) the compatibility to facilitate the exchange of
1351	1357		existing data;
1352	1358		(3) the capacity for expanding and upgrading to more
1353	1359		advanced levels of technology;
1354	1360		(4) quantitative reliability factors;
1355	1361		(5) the level of training required to bring persons
1356	1362		using the system to a stated level of proficiency;
1357	1363		(6) the technical support requirements for the
1358	1364		maintenance of data across a network platform and the management of
1359	1365		the network's hardware and software;
1360	1366		(7) the compliance with applicable department
1361	1367		statewide standards validated by criteria adopted by the department
1362	1368		by rule; and
1363	1369		(8) applicable factors listed in Sections 2155.074 and
1364	1370		2155.075.
1365	1371		SECTION 71. Sections 2157.006(a) and (c), Government Code,
1366	1372		are amended to read as follows:
1367	1373		(a) The comptroller [commission] or other state agency
1368	1374		shall purchase an automated information system using:
1369	1375		(1) the purchasing method described by Section
1370	1376		2157.068 for commodity items; or
1371	1377		(2) a purchasing method designated by the comptroller
1372	1378		[commission] to obtain the best value for the state, including a
1373	1379		request for offers method.
1374	1380		(c) The comptroller [commission] shall adopt rules for
1375	1381		designating purchasing methods under Subsection (a)(2).
1376	1382		SECTION 72. Section 2157.068(i), Government Code, is
1377	1383		amended to read as follows:
1378	1384		(i) Unless the agency has express statutory authority to
1379	1385		employ a best value purchasing method other than a purchasing
1380	1386		method designated by the comptroller [commission] under Section
1381	1387		2157.006(a)(2), a state agency shall use a purchasing method
1382	1388		provided by Section 2157.006(a) when purchasing a commodity item
1383	1389		if:
1384	1390		(1) the agency has obtained an exemption from the
1385	1391		department or approval from the Legislative Budget Board under
1386	1392		Subsection (f); or
1387	1393		(2) the agency is otherwise exempt from this section.
1388	1394		SECTION 73. Sections 2157.121, 2157.122, 2157.123,
1389	1395		2157.124, 2157.125, and 2157.126, Government Code, are amended to
1390	1396		read as follows:
1391	1397		Sec. 2157.121. ACQUISITION THROUGH COMPETITIVE SEALED
1392	1398		PROPOSALS. (a) The comptroller [commission] or other state agency
1393	1399		may acquire a telecommunications device, system, or service or an
1394	1400		automated information system by using competitive sealed proposals
1395	1401		if the comptroller [commission] determines that competitive sealed
1396	1402		bidding and informal competitive bidding are not practical or are
1397	1403		disadvantageous to the state.
1398	1404		(b) A state agency, other than the department, shall send
1399	1405		its proposal specifications and criteria to the comptroller
1400	1406		[commission] for approval or request the comptroller [commission]
1401	1407		to develop the proposal specifications and criteria.
1402	1408		(c) The department may acquire a telecommunications device,
1403	1409		system, or service or an automated information system by using
1404	1410		competitive sealed proposals without regard to whether the
1405	1411		comptroller [commission] makes the determination required under
1406	1412		Subsection (a) for other state agencies.
1407	1413		Sec. 2157.122. SOLICITATION OF PROPOSALS; PUBLIC NOTICE.
1408	1414		The comptroller [commission] or other state agency shall:
1409	1415		(1) solicit proposals under this subchapter by a
1410	1416		request for proposals; and
1411	1417		(2) give public notice of the request in the manner
1412	1418		provided for requests for bids under Subchapter B, Chapter 2156.
1413	1419		Sec. 2157.123. OPENING AND FILING PROPOSALS; PUBLIC
1414	1420		INSPECTION. (a) The comptroller [commission] or other state
1415	1421		agency shall avoid disclosing the contents of each proposal on
1416	1422		opening the proposal and during negotiations with competing
1417	1423		offerors.
1418	1424		(b) The comptroller [commission] or other state agency
1419	1425		shall file each proposal in a register of proposals, which, after a
1420	1426		contract is awarded, is open for public inspection unless the
1421	1427		register contains information that is excepted from required
1422	1428		disclosure under Subchapter C, Chapter 552.
1423	1429		Sec. 2157.124. DISCUSSION AND REVISION OF PROPOSAL. (a) As
1424	1430		provided by a request for proposals and under comptroller
1425	1431		[commission] rules, the comptroller [commission] or other state
1426	1432		agency may discuss an acceptable or potentially acceptable proposal
1427	1433		with an offeror to assess the offeror's ability to meet the
1428	1434		solicitation requirements. When the comptroller [commission] is
1429	1435		managing the request for proposals process, it shall invite a
1430	1436		requisitioning agency to participate in discussions conducted
1431	1437		under this section.
1432	1438		(b) After receiving a proposal but before making an award,
1433	1439		the comptroller [commission] or other state agency may permit an
1434	1440		offeror to revise a proposal to obtain the best final offer.
1435	1441		(c) The comptroller [commission] or other state agency may
1436	1442		not disclose information derived from a proposal submitted by a
1437	1443		competing offeror in conducting discussions under this section.
1438	1444		(d) The comptroller [commission] or other state agency
1439	1445		shall provide each offeror an equal opportunity to discuss and
1440	1446		revise proposals.
1441	1447		Sec. 2157.125. CONTRACT AWARD; FACTORS CONSIDERED. (a)
1442	1448		The comptroller [commission] or other state agency shall make a
1443	1449		written award of a purchase or lease to the offeror whose proposal
1444	1450		under this subchapter offers the best value for the state,
1445	1451		considering price, past vendor performance, vendor experience or
1446	1452		demonstrated capability, and the evaluation factors in the request
1447	1453		for proposals.
1448	1454		(b) The comptroller [commission] or other state agency
1449	1455		shall refuse all offers if no offer submitted is acceptable.
1450	1456		(c) In determining which proposal under this subchapter
1451	1457		offers the best value for the state, the comptroller [commission]
1452	1458		or other state agency shall, when applicable and subject to
1453	1459		Sections 2155.074 and 2155.075, consider factors including:
1454	1460		(1) the installation cost;
1455	1461		(2) the overall life of the system or equipment;
1456	1462		(3) the cost of acquisition, operation, and
1457	1463		maintenance of hardware included with, associated with, or required
1458	1464		for the system or equipment during the state's ownership or lease;
1459	1465		(4) the cost of acquisition, operation, and
1460	1466		maintenance of software included with, associated with, or required
1461	1467		for the system or equipment during the state's ownership or lease;
1462	1468		(5) the estimated cost of other supplies needed
1463	1469		because of the acquisition;
1464	1470		(6) the estimated cost of employee training needed
1465	1471		because of the acquisition;
1466	1472		(7) the estimated cost of necessary additional
1467	1473		permanent employees because of the acquisition; and
1468	1474		(8) the estimated increase in employee productivity
1469	1475		because of the acquisition.
1470	1476		(d) The comptroller [commission] or other state agency
1471	1477		shall state in writing in the contract file the reasons for making
1472	1478		an award.
1473	1479		Sec. 2157.126. RULES. The comptroller [commission] shall
1474	1480		adopt rules necessary or convenient to perform its responsibilities
1475	1481		regarding requests for proposals under this subchapter and shall
1476	1482		request assistance from other state agencies as needed.
1477	1483		SECTION 74. Sections 2157.181, 2157.182, and 2157.184,
1478	1484		Government Code, are amended to read as follows:
1479	1485		Sec. 2157.181. PREAPPROVED CONTRACT TERMS AND CONDITIONS.
1480	1486		(a) The comptroller [commission], with the concurrence of the
1481	1487		department, may negotiate with vendors preapproved terms and
1482	1488		conditions to be included in contracts relating to the purchase or
1483	1489		lease of a telecommunication device, system, or service or an
1484	1490		automated information system awarded to a vendor by a state agency.
1485	1491		(b) The comptroller [commission] and the department must
1486	1492		agree to the wording of preapproved terms and conditions negotiated
1487	1493		with a vendor.
1488	1494		Sec. 2157.182. VALIDITY OF PREAPPROVED TERMS AND
1489	1495		CONDITIONS; RENEGOTIATION. (a) Preapproved terms and conditions
1490	1496		to which a vendor, the comptroller [commission], and the department
1491	1497		agree are valid for two years after the date of the agreement and
1492	1498		must provide that the terms and conditions are to be renegotiated
1493	1499		before the end of the two years.
1494	1500		(b) The comptroller [commission] and the department jointly
1495	1501		shall establish procedures to ensure that terms and conditions are
1496	1502		renegotiated before they expire in a contract between the vendor
1497	1503		and a state agency.
1498	1504		Sec. 2157.184. NOTIFICATION OF STATE AGENCIES AND VENDORS.
1499	1505		The comptroller [commission] and the department jointly shall
1500	1506		establish procedures to notify state agencies and potential vendors
1501	1507		of the provisions of this subchapter regarding preapproved terms
1502	1508		and conditions.
1503	1509		SECTION 75. Section 2158.0011, Government Code, is amended
1504	1510		to read as follows:
1505	1511		Sec. 2158.0011. COMPTROLLER POWERS AND [TRANSFER OF]
1506	1512		DUTIES[; REFERENCE]. [(a)] The comptroller has under this chapter
1507	1513		the powers and duties described by Section 2151.004(d) [of the
1508	1514		commission under this chapter are transferred to the comptroller].
1509	1515		[(b) In this chapter, a reference to the commission means
1510	1516		the comptroller.]
1511	1517		SECTION 76. Section 2158.004(d), Government Code, is
1512	1518		amended to read as follows:
1513	1519		(d) The comptroller [commission] may waive the requirements
1514	1520		of this section for a state agency on receipt of certification
1515	1521		supported by evidence acceptable to the comptroller [commission]
1516	1522		that:
1517	1523		(1) the agency's vehicles will be operating primarily
1518	1524		in an area in which neither the agency nor a supplier has or can
1519	1525		reasonably be expected to establish adequate refueling for
1520	1526		compressed natural gas, liquefied natural gas, liquefied petroleum
1521	1527		gas, methanol or methanol/gasoline blends of 85 percent or greater,
1522	1528		ethanol or ethanol/gasoline blends of 85 percent or greater,
1523	1529		biodiesel or biodiesel/diesel blends of 20 percent or greater, or
1524	1530		electricity, including electricity to power a plug-in hybrid motor
1525	1531		vehicle; or
1526	1532		(2) the agency is unable to obtain equipment or
1527	1533		refueling facilities necessary to operate vehicles using
1528	1534		compressed natural gas, liquefied natural gas, liquefied petroleum
1529	1535		gas, methanol or methanol/gasoline blends of 85 percent or greater,
1530	1536		ethanol or ethanol/gasoline blends of 85 percent or greater,
1531	1537		biodiesel or biodiesel/diesel blends of 20 percent or greater, or
1532	1538		electricity, including electricity to power a plug-in hybrid motor
1533	1539		vehicle, at a projected cost that is reasonably expected to be no
1534	1540		greater than the net costs of continued use of conventional
1535	1541		gasoline or diesel fuels, measured over the expected useful life of
1536	1542		the equipment or facilities supplied.
1537	1543		SECTION 77. Sections 2158.006 and 2158.007, Government
1538	1544		Code, are amended to read as follows:
1539	1545		Sec. 2158.006. DETERMINATION OF ALTERNATIVE FUELS PROGRAM
1540	1546		PARAMETERS. In developing the use of compressed natural gas,
1541	1547		liquefied natural gas, liquefied petroleum gas, methanol or
1542	1548		methanol/gasoline blends of 85 percent or greater, ethanol or
1543	1549		ethanol/gasoline blends of 85 percent or greater, biodiesel or
1544	1550		biodiesel/diesel blends of 20 percent or greater, or electricity,
1545	1551		including electricity to power a plug-in hybrid motor vehicle, the
1546	1552		comptroller [commission] should work with state agency fleet
1547	1553		operators, vehicle manufacturers and converters, fuel
1548	1554		distributors, and others to determine the vehicles to be covered,
1549	1555		taking into consideration:
1550	1556		(1) range;
1551	1557		(2) specialty uses;
1552	1558		(3) fuel availability;
1553	1559		(4) vehicle manufacturing and conversion capability;
1554	1560		(5) safety;
1555	1561		(6) resale values; and
1556	1562		(7) other relevant factors.
1557	1563		Sec. 2158.007. COMPLIANCE WITH APPLICABLE SAFETY
1558	1564		STANDARDS. In purchasing, leasing, maintaining, or converting
1559	1565		vehicles for use with compressed natural gas, liquefied natural
1560	1566		gas, liquefied petroleum gas, methanol or methanol/gasoline blends
1561	1567		of 85 percent or greater, ethanol or ethanol/gasoline blends of 85
1562	1568		percent or greater, biodiesel or biodiesel/diesel blends of 20
1563	1569		percent or greater, or electricity, including electricity to power
1564	1570		a plug-in hybrid motor vehicle, the comptroller [commission] shall
1565	1571		comply with all applicable safety standards adopted by the United
1566	1572		States Department of Transportation and the Railroad Commission of
1567	1573		Texas.
1568	1574		SECTION 78. Section 2158.122(a), Government Code, is
1569	1575		amended to read as follows:
1570	1576		(a) On consent of the comptroller [commission] and the
1571	1577		governor, a person may print extra copies of matter printed under a
1572	1578		state contract and sell the copies at a price fixed by the
1573	1579		comptroller [commission] if in the opinion of the comptroller
1574	1580		[commission] and the governor the printed matter should be
1575	1581		distributed in this manner for the benefit of the public.
1576	1582		SECTION 79. Sections 2158.181 and 2158.241, Government
1577	1583		Code, are amended to read as follows:
1578	1584		Sec. 2158.181. SAFETY STANDARDS FOR ELECTRICAL ITEMS. The
1579	1585		comptroller [commission] or another state agency may not purchase
1580	1586		an electrical item unless the item meets applicable safety
1581	1587		standards of the federal Occupational Safety and Health
1582	1588		Administration.
1583	1589		Sec. 2158.241. INTERSTATE COMPACTS AND COOPERATIVE
1584	1590		AGREEMENTS FOR PROCURING RECYCLED PRODUCTS. The comptroller
1585	1591		[commission] may enter into compacts and cooperative agreements
1586	1592		with other states and government entities for procuring products
1587	1593		made of recycled materials when the comptroller [commission]
1588	1594		determines it is in the best interest of the state.
1589	1595		SECTION 80. Section 2158.301, Government Code, as added by
1590	1596		Chapter 262 (S.B. 12), Acts of the 80th Legislature, Regular
1591	1597		Session, 2007, is amended to read as follows:
1592	1598		Sec. 2158.301. ENERGY CONSERVATION. If available and cost
1593	1599		effective, the comptroller [commission] or another state agency
1594	1600		shall purchase equipment and appliances for state use that meet or
1595	1601		exceed the federal Energy Star standards designated by the United
1596	1602		States Environmental Protection Agency and the United States
1597	1603		Department of Energy.
1598	1604		SECTION 81. Sections 2161.0011, 2161.0015, 2161.002, and
1599	1605		2161.003, Government Code, are amended to read as follows:
1600	1606		Sec. 2161.0011. COMPTROLLER POWERS AND [TRANSFER OF]
1601	1607		DUTIES[; REFERENCE]. [(a)] The comptroller has under this chapter
1602	1608		the powers and duties described by Section 2151.004(d) [of the
1603	1609		commission under this chapter are transferred to the comptroller].
1604	1610		[(b) In this chapter, a reference to the commission means
1605	1611		the comptroller.]
1606	1612		Sec. 2161.0015. DETERMINING SIZE STANDARDS FOR
1607	1613		HISTORICALLY UNDERUTILIZED BUSINESSES. The comptroller
1608	1614		[commission] may establish size standards that a business may not
1609	1615		exceed if it is to be considered a historically underutilized
1610	1616		business under this chapter. In determining the size standards,
1611	1617		the comptroller [commission] shall determine the size at which a
1612	1618		business should be considered sufficiently large that the business
1613	1619		probably does not significantly suffer from the effects of past
1614	1620		discriminatory practices.
1615	1621		Sec. 2161.002. [COMMISSION] ADMINISTRATION; RULES
1616	1622		[COMPTROLLER ASSISTANCE]. (a) To administer Subchapters B and C,
1617	1623		the comptroller [commission] may:
1618	1624		(1) require information from a state agency; and
1619	1625		(2) adopt rules.
1620	1626		(c) In adopting rules to administer this chapter, the
1621	1627		comptroller [commission] shall adopt rules that are based on the
1622	1628		results of the "State of Texas Disparity Study, A Report to the
1623	1629		Texas Legislature as Mandated by H.B. 2626, 73rd Legislature,
1624	1630		December 1994" (prepared by National Economic Research Associates,
1625	1631		Inc.). The comptroller [commission] shall revise the rules in
1626	1632		response to the findings of any updates of the study that are
1627	1633		prepared on behalf of the state.
1628	1634		(d) The comptroller shall adopt rules to provide goals for
1629	1635		increasing the contract awards for the purchase of goods or
1630	1636		services by the comptroller [commission] and other state agencies
1631	1637		to businesses that qualify as historically underutilized
1632	1638		businesses because the businesses are owned or owned, operated, and
1633	1639		controlled, as applicable, wholly or partly by one or more veterans
1634	1640		as defined by 38 U.S.C. Section 101(2) who have a service-connected
1635	1641		disability as defined by 38 U.S.C. Section 101(16). The goals
1636	1642		established under this subsection are in addition to the goals
1637	1643		established under Subsection (c) and the goals established under
1638	1644		Subsection (c) may not be reduced as a result of the establishment
1639	1645		of goals under this subsection.
1640	1646		Sec. 2161.003. AGENCY RULES. A state agency, including an
1641	1647		institution of higher education, shall adopt the comptroller's
1642	1648		[commission's] rules under Section 2161.002 as the agency's or
1643	1649		institution's own rules. Those rules apply to the agency's
1644	1650		construction projects and purchases of goods and services paid for
1645	1651		with appropriated money without regard to whether a project or
1646	1652		purchase is otherwise subject to this subtitle.
1647	1653		SECTION 82. Section 2161.004(a), Government Code, is
1648	1654		amended to read as follows:
1649	1655		(a) This chapter and rules adopted by the comptroller
1650	1656		[commission] under this chapter apply to state agency construction
1651	1657		projects and purchases of goods and services that are paid for with
1652	1658		appropriated money and made under the authority of this subtitle or
1653	1659		other law.
1654	1660		SECTION 83. Section 2161.005, Government Code, is amended
1655	1661		to read as follows:
1656	1662		Sec. 2161.005. TRANSFER OF FUNDS FOR PURCHASING. If the
1657	1663		state auditor reports to the comptroller [commission] under Section
1658	1664		2161.123(d) that a state agency is not complying with Section
1659	1665		2161.123, the comptroller [commission] shall report that fact to
1660	1666		the Legislative Budget Board. If the Legislative Budget Board
1661	1667		determines that, one year after the date of the state auditor's
1662	1668		report to the comptroller [commission], the agency is still not
1663	1669		complying with Section 2161.123, the budget board may, under
1664	1670		Section 69, Article XVI, Texas Constitution, direct the emergency
1665	1671		transfer of the agency's appropriated funds for making purchases
1666	1672		under purchasing authority delegated under Section 2155.131 [or
1667	1673		2155.133] to the appropriate state agency. The amount transferred
1668	1674		from the agency's funds to the appropriate agency shall be an amount
1669	1675		determined by the Legislative Budget Board.
1670	1676		SECTION 84. The heading to Subchapter B, Chapter 2161,
1671	1677		Government Code, is amended to read as follows:
1672	1678		SUBCHAPTER B. GENERAL POWERS AND DUTIES [OF COMMISSION]
1673	1679		SECTION 85. The heading to Section 2161.061, Government
1674	1680		Code, is amended to read as follows:
1675	1681		Sec. 2161.061. [COMMISSION] CERTIFICATION OF HISTORICALLY
1676	1682		UNDERUTILIZED BUSINESSES.
1677	1683		SECTION 86. Sections 2161.061(a), (b), (c), and (d),
1678	1684		Government Code, are amended to read as follows:
1679	1685		(a) The comptroller [commission] shall certify historically
1680	1686		underutilized businesses.
1681	1687		(b) As one of its certification procedures, the comptroller
1682	1688		[commission] may:
1683	1689		(1) approve the certification program of one or more
1684	1690		local governments or nonprofit organizations in this state that
1685	1691		certify historically underutilized businesses, minority business
1686	1692		enterprises, women's business enterprises, or disadvantaged
1687	1693		business enterprises under substantially the same definition, to
1688	1694		the extent applicable, used by Section 2161.001, if the local
1689	1695		government or nonprofit organization meets or exceeds the standards
1690	1696		established by the comptroller [commission]; and
1691	1697		(2) certify a business that is certified by a local
1692	1698		government or by a nonprofit organization as a historically
1693	1699		underutilized business under this chapter.
1694	1700		(c) To maximize the number of certified historically
1695	1701		underutilized businesses, the comptroller [commission] shall enter
1696	1702		into agreements with local governments in this state that conduct
1697	1703		certification programs described by Subsection (b) and with
1698	1704		nonprofit organizations. The comptroller [commission] may
1699	1705		terminate an agreement if a local government or nonprofit
1700	1706		organization fails to meet the standards established by the
1701	1707		comptroller [commission] for certifying historically underutilized
1702	1708		businesses. The agreements must take effect immediately and:
1703	1709		(1) allow for automatic certification of businesses
1704	1710		certified by the local government or nonprofit organization;
1705	1711		(2) provide for the efficient updating of the
1706	1712		comptroller [commission] database containing information about
1707	1713		historically underutilized businesses and potential historically
1708	1714		underutilized businesses; and
1709	1715		(3) provide for a method by which the comptroller
1710	1716		[commission] may efficiently communicate with businesses certified
1711	1717		by the local government or nonprofit organization and provide those
1712	1718		businesses with information about the state historically
1713	1719		underutilized business program.
1714	1720		(d) A local government or a nonprofit organization that
1715	1721		certifies historically underutilized businesses, minority business
1716	1722		enterprises, women's business enterprises, or disadvantaged
1717	1723		business enterprises as described in Subsections (b) and (c) shall
1718	1724		complete the certification of an applicant or provide an applicant
1719	1725		with written justification of its certification denial within the
1720	1726		period established by the comptroller [commission] in its rules for
1721	1727		certification activities.
1722	1728		SECTION 87. Sections 2161.062, 2161.063, and 2161.064,
1723	1729		Government Code, are amended to read as follows:
1724	1730		Sec. 2161.062. ASSISTANCE TO HISTORICALLY UNDERUTILIZED
1725	1731		BUSINESSES. (a) The comptroller [commission] shall seek the
1726	1732		advice of the governor, legislature, and state agencies in
1727	1733		identifying and developing opportunities for historically
1728	1734		underutilized businesses.
1729	1735		(b) The comptroller [commission] shall offer historically
1730	1736		underutilized businesses assistance and training regarding state
1731	1737		procurement procedures.
1732	1738		(c) The comptroller [commission] shall advise historically
1733	1739		underutilized businesses of available state contracts and shall
1734	1740		advise historically underutilized businesses to apply for
1735	1741		registration on the comptroller's [commission's] master bidders
1736	1742		list.
1737	1743		(d) The comptroller [commission] shall send historically
1738	1744		underutilized businesses an orientation package on certification
1739	1745		or recertification. The package shall include:
1740	1746		(1) a certificate issued in the historically
1741	1747		underutilized business's name;
1742	1748		(2) a description of the significance and value of
1743	1749		certification;
1744	1750		(3) a list of state purchasing personnel;
1745	1751		(4) information regarding electronic commerce
1746	1752		opportunities;
1747	1753		(5) information regarding the Texas Marketplace
1748	1754		website; and
1749	1755		(6) additional information about the state
1750	1756		procurement process.
1751	1757		(e) A state agency with a biennial budget that exceeds $10
1752	1758		million shall designate a staff member to serve as the historically
1753	1759		underutilized businesses coordinator for the agency during the
1754	1760		fiscal year. The procurement director may serve as the
1755	1761		coordinator. In agencies that employ a historically underutilized
1756	1762		businesses coordinator, the position of coordinator, within the
1757	1763		agency's structure, must be at least equal to the position of
1758	1764		procurement director. In addition to any other responsibilities,
1759	1765		the coordinator shall:
1760	1766		(1) coordinate training programs for the recruitment
1761	1767		and retention of historically underutilized businesses;
1762	1768		(2) report required information to the comptroller
1763	1769		[commission]; and
1764	1770		(3) match historically underutilized businesses with
1765	1771		key staff within the agency.
1766	1772		Sec. 2161.063. ASSISTING STATE AGENCIES. (a) The
1767	1773		comptroller [commission] shall encourage state agencies to use
1768	1774		historically underutilized businesses by:
1769	1775		(1) working with state agencies to establish a
1770	1776		statewide policy for increasing the use of historically
1771	1777		underutilized businesses;
1772	1778		(2) assisting state agencies in seeking historically
1773	1779		underutilized businesses capable of supplying required goods or
1774	1780		services;
1775	1781		(3) assisting state agencies in identifying and
1776	1782		advising historically underutilized businesses on the types of
1777	1783		goods and services the agencies need; and
1778	1784		(4) assisting state agencies in increasing the amount
1779	1785		of business placed with historically underutilized businesses.
1780	1786		(b) The comptroller [commission] shall assist the Texas
1781	1787		Department of Economic Development in performing the department's
1782	1788		duties under Section 481.0068.
1783	1789		Sec. 2161.064. DIRECTORY. (a) The comptroller
1784	1790		[commission] shall compile, in the most cost-efficient form, a
1785	1791		directory of businesses certified as historically underutilized
1786	1792		businesses under Section 2161.061.
1787	1793		(b) The comptroller [commission] at least semiannually
1788	1794		shall update the directory and provide access to the directory
1789	1795		electronically or in another form to each state agency.
1790	1796		(c) Depending on the needs of a state agency, the
1791	1797		comptroller [commission] shall provide access to the directory
1792	1798		electronically or in another form.
1793	1799		(d) The comptroller [commission] shall provide a copy of the
1794	1800		directory to every municipality in January and July of each year.
1795	1801		On request, the comptroller [commission] shall make the directory
1796	1802		available to other local governments and the public.
1797	1803		(e) A state agency, including the comptroller [commission],
1798	1804		shall use the directory in determining awards of state purchasing
1799	1805		and public works contracts.
1800	1806		SECTION 88. Section 2161.065(a), Government Code, is
1801	1807		amended to read as follows:
1802	1808		(a) The comptroller [commission] shall design a
1803	1809		mentor-protege program to foster long-term relationships between
1804	1810		prime contractors and historically underutilized businesses and to
1805	1811		increase the ability of historically underutilized businesses to
1806	1812		contract with the state or to receive subcontracts under a state
1807	1813		contract. Each state agency with a biennial appropriation that
1808	1814		exceeds $10 million shall implement the program designed by the
1809	1815		comptroller [commission].
1810	1816		SECTION 89. Sections 2161.066(a), (d), and (e), Government
1811	1817		Code, are amended to read as follows:
1812	1818		(a) The comptroller [commission] shall design a program of
1813	1819		forums in which historically underutilized businesses are invited
1814	1820		by state agencies to deliver technical and business presentations
1815	1821		that demonstrate their capability to do business with the agency:
1816	1822		(1) to senior managers and procurement personnel at
1817	1823		state agencies that acquire goods and services of a type supplied by
1818	1824		the historically underutilized businesses; and
1819	1825		(2) to contractors with the state who may be
1820	1826		subcontracting for goods and services of a type supplied by the
1821	1827		historically underutilized businesses.
1822	1828		(d) Each state agency that has a historically underutilized
1823	1829		businesses coordinator shall:
1824	1830		(1) design its own program and model the program to the
1825	1831		extent appropriate on the program developed by the comptroller
1826	1832		[commission] under this section; and
1827	1833		(2) sponsor presentations by historically
1828	1834		underutilized businesses at the agency.
1829	1835		(e) The comptroller [commission] and each state agency that
1830	1836		has a historically underutilized businesses coordinator shall
1831	1837		aggressively identify and notify individual historically
1832	1838		underutilized businesses regarding opportunities to make a
1833	1839		presentation regarding the types of goods and services supplied by
1834	1840		the historically underutilized business and shall advertise in
1835	1841		appropriate trade publications that target historically
1836	1842		underutilized businesses regarding opportunities to make a
1837	1843		presentation.
1838	1844		SECTION 90. Section 2161.121, Government Code, as amended
1839	1845		by Chapters 48 (H.B. 2472) and 1312 (S.B. 59), Acts of the 83rd
1840	1846		Legislature, Regular Session, 2013, is reenacted and amended to
1841	1847		read as follows:
1842	1848		Sec. 2161.121. [COMMISSION] REPORT OF CONTRACTS AWARDED TO
1843	1849		HISTORICALLY UNDERUTILIZED BUSINESSES. (a) The comptroller
1844	1850		[commission] shall prepare a consolidated report that:
1845	1851		(1) includes the number and dollar amount of contracts
1846	1852		awarded and paid to historically underutilized businesses
1847	1853		certified by the comptroller [commission];
1848	1854		(2) analyzes the relative level of opportunity for
1849	1855		historically underutilized businesses for various categories of
1850	1856		acquired goods and services; and
1851	1857		(3) tracks, by vendor identification number and, to
1852	1858		the extent allowed by federal law, by social security number, the
1853	1859		graduation rates for historically underutilized businesses that
1854	1860		grew to exceed the size standards determined by the comptroller
1855	1861		[commission].
1856	1862		(b) Each state agency shall send to the comptroller
1857	1863		[commission] information required by Section 2161.122 and other
1858	1864		information required by the comptroller [commission] for the
1859	1865		preparation of the comptroller's [commission's] report not later
1860	1866		than March 15 and September 15 of each year.
1861	1867		(c) The comptroller [commission] shall base its report on
1862	1868		the compilation and analysis of reports received under Subsection
1863	1869		(b) and other information maintained or received by [from] the
1864	1870		comptroller.
1865	1871		(d) The comptroller [commission] shall send to the
1866	1872		presiding officer of each house of the legislature:
1867	1873		(1) on May 15 of each year, a report on the previous
1868	1874		six-month period; and
1869	1875		(2) on November 15 of each year, a report on the
1870	1876		preceding fiscal year.
1871	1877		SECTION 91. Sections 2161.122(c), (d), and (e), Government
1872	1878		Code, are amended to read as follows:
1873	1879		(c) Each state agency shall report to the comptroller
1874	1880		[commission] in accordance with Section 2161.125 the following
1875	1881		information with regard to the expenditure of both treasury and
1876	1882		nontreasury funds:
1877	1883		(1) the total dollar amount of purchases and payments
1878	1884		made under contracts awarded to historically underutilized
1879	1885		businesses;
1880	1886		(2) the number of businesses participating in any
1881	1887		issuance of state bonds by the agency;
1882	1888		(3) the number of contracts awarded to businesses with
1883	1889		regard to the agency's acquisition, construction, or equipping of a
1884	1890		facility or implementation of a program; and
1885	1891		(4) the number of bids, proposals, or other applicable
1886	1892		expressions of interest made by historically underutilized
1887	1893		businesses with regard to the agency's acquisition, construction,
1888	1894		or equipping of a facility or implementation of a program.
1889	1895		(d) A state agency participating in a group purchasing
1890	1896		program shall send to the comptroller [commission] in the agency's
1891	1897		report under Section 2161.121 a separate list of purchases from
1892	1898		historically underutilized businesses that are made through the
1893	1899		group purchasing program, including the dollar amount of each
1894	1900		purchase allocated to the reporting agency.
1895	1901		(e) A state agency's report is a record of the agency's
1896	1902		purchases for which the agency selected the vendor. If the vendor
1897	1903		was selected by the comptroller [commission] as part of its state
1898	1904		contract program, the comptroller [commission] shall include the
1899	1905		purchase in the comptroller's [commission's] report of its own
1900	1906		purchases unless the comptroller [commission] made a sole source
1901	1907		purchase for the agency under Section 2155.067. The state agency
1902	1908		for which the purchase was made shall report the selection of the
1903	1909		vendor on its report as if the agency selected the vendor when the
1904	1910		agency drew specifications for goods or services that are
1905	1911		proprietary to one vendor.
1906	1912		SECTION 92. Sections 2161.123(a), (c), (d), and (f),
1907	1913		Government Code, are amended to read as follows:
1908	1914		(a) Each state agency, including the comptroller
1909	1915		[commission], that is required to have a strategic plan under
1910	1916		Chapter 2056 shall include in its strategic plan a written plan for
1911	1917		increasing the agency's use of historically underutilized
1912	1918		businesses in purchasing and public works contracting. The
1913	1919		governing board of each university system or institution of higher
1914	1920		education not included in a university system, other than a public
1915	1921		junior college, shall prepare a written plan for increasing the use
1916	1922		of historically underutilized businesses in purchasing and public
1917	1923		works contracting by the system or institution.
1918	1924		(c) On request, the comptroller [commission] shall provide
1919	1925		technical assistance to a state agency that is preparing its plan.
1920	1926		(d) The comptroller [commission] and the state auditor
1921	1927		shall cooperate to develop procedures providing for random periodic
1922	1928		monitoring of state agency compliance with this section. The state
1923	1929		auditor shall report to the comptroller [commission] a state agency
1924	1930		that is not complying with this section. In determining whether a
1925	1931		state agency is making a good faith effort to comply, the state
1926	1932		auditor shall consider whether the agency:
1927	1933		(1) has adopted rules under Section 2161.003;
1928	1934		(2) has used the comptroller's [commission's]
1929	1935		directory under Section 2161.064 and other resources to identify
1930	1936		historically underutilized businesses that are able and available
1931	1937		to contract with the agency;
1932	1938		(3) made good faith, timely efforts to contact
1933	1939		identified historically underutilized businesses regarding
1934	1940		contracting opportunities;
1935	1941		(4) conducted its procurement program in accordance
1936	1942		with the good faith effort methodology set out in comptroller
1937	1943		[commission] rules; and
1938	1944		(5) established goals for contracting with
1939	1945		historically underutilized businesses in each procurement category
1940	1946		based on:
1941	1947		(A) scheduled fiscal year expenditures; and
1942	1948		(B) the availability of historically
1943	1949		underutilized businesses in each category as determined by rules
1944	1950		adopted under Section 2161.002.
1945	1951		(f) If the state auditor reports to the comptroller
1946	1952		[commission] that a state agency is not complying with this
1947	1953		section, the comptroller [commission] shall assist the agency in
1948	1954		complying.
1949	1955		SECTION 93. Sections 2161.124(a) and (b), Government Code,
1950	1956		are amended to read as follows:
1951	1957		(a) Each state agency, including the comptroller
1952	1958		[commission], shall prepare a report for each fiscal year
1953	1959		documenting progress under its plan for increasing use of
1954	1960		historically underutilized businesses.
1955	1961		(b) The comptroller [commission] shall develop a standard
1956	1962		form for the report.
1957	1963		SECTION 94. Section 2161.126, Government Code, is amended
1958	1964		to read as follows:
1959	1965		Sec. 2161.126. EDUCATION AND OUTREACH [BY COMMISSION].
1960	1966		Before October 15 of each year, the comptroller [commission] shall
1961	1967		report to the governor, the lieutenant governor, and the speaker of
1962	1968		the house of representatives on the education and training efforts
1963	1969		that the comptroller [commission] has made toward historically
1964	1970		underutilized businesses. The report must include the following as
1965	1971		related to historically underutilized businesses:
1966	1972		(1) the comptroller's [commission's] vision, mission,
1967	1973		and philosophy;
1968	1974		(2) marketing materials and other educational
1969	1975		materials distributed by the comptroller [commission];
1970	1976		(3) the comptroller's [commission's] policy regarding
1971	1977		education, outreach, and dissemination of information;
1972	1978		(4) goals that the comptroller [commission] has
1973	1979		attained during the fiscal year;
1974	1980		(5) the comptroller's [commission's] goals,
1975	1981		objectives, and expected outcome measures for each outreach and
1976	1982		education event; and
1977	1983		(6) the comptroller's [commission's] planned future
1978	1984		initiatives on education and outreach.
1979	1985		SECTION 95. Section 2161.127(a), Government Code, is
1980	1986		amended to read as follows:
1981	1987		(a) Each state agency must include as part of its
1982	1988		legislative appropriations request a detailed report for
1983	1989		consideration by the budget committees of the legislature that
1984	1990		shows the extent to which the agency complied with this chapter and
1985	1991		rules of the comptroller [commission] adopted under this chapter
1986	1992		during the two calendar years preceding the calendar year in which
1987	1993		the request is submitted. To the extent the state agency did not
1988	1994		comply, the report must demonstrate the reasons for that fact. The
1989	1995		extent to which a state agency complies with this chapter and rules
1990	1996		of the comptroller [commission] adopted under this chapter is
1991	1997		considered a key performance measure for purposes of the
1992	1998		appropriations process.
1993	1999		SECTION 96. Section 2161.181, Government Code, is amended
1994	2000		to read as follows:
1995	2001		Sec. 2161.181. GOALS FOR PURCHASES OF GOODS AND SERVICES. A
1996	2002		state agency, including the comptroller [commission], shall make a
1997	2003		good faith effort to increase the contract awards for the purchase
1998	2004		of goods or services that the agency expects to make during a fiscal
1999	2005		year to historically underutilized businesses based on rules
2000	2006		adopted by the comptroller [commission] to implement the disparity
2001	2007		study described by Section 2161.002(c).
2002	2008		SECTION 97. Section 2161.182(a), Government Code, is
2003	2009		amended to read as follows:
2004	2010		(a) A state agency that contracts for a construction
2005	2011		project, including a project under Section 2166.003, shall make a
2006	2012		good faith effort to increase the construction contract awards that
2007	2013		the agency expects to make during a fiscal year to historically
2008	2014		underutilized businesses based on rules adopted by the comptroller
2009	2015		[commission] to implement the disparity study described by Section
2010	2016		2161.002(c).
2011	2017		SECTION 98. Section 2161.183(a), Government Code, is
2012	2018		amended to read as follows:
2013	2019		(a) Not later than the 60th day of its fiscal year, a state
2014	2020		agency, including the comptroller [commission]:
2015	2021		(1) shall estimate the total value of contract awards
2016	2022		the agency expects to make for that fiscal year that are subject to
2017	2023		Section 2161.181; and
2018	2024		(2) shall estimate the total value of contract awards
2019	2025		the agency expects to make for that fiscal year under Chapter 2166.
2020	2026		SECTION 99. Section 2161.253(e), Government Code, is
2021	2027		amended to read as follows:
2022	2028		(e) The comptroller [commission] shall adopt rules to
2023	2029		administer this subchapter.
2024	2030		SECTION 100. Sections 2163.001, 2163.0011, 2163.002,
2025	2031		2163.003, and 2163.004, Government Code, are amended to read as
2026	2032		follows:
2027	2033		Sec. 2163.001. REVIEW PROCESS. (a) The comptroller
2028	2034		[commission] shall develop a systematic review process to identify
2029	2035		commercially available services being performed by the comptroller
2030	2036		[commission] and study the services to determine if they may be
2031	2037		better provided by other state agency providers of the services or
2032	2038		private commercial sources.
2033	2039		(b) In reviewing its services, the comptroller [commission]
2034	2040		shall:
2035	2041		(1) determine whether competitive vendors exist in the
2036	2042		private sector;
2037	2043		(2) compare the cost of contracting for the services
2038	2044		from other state agency providers of the services or private
2039	2045		commercial sources to the comptroller's [commission's] cost of
2040	2046		performing the services; and
2041	2047		(3) document cost savings from contracting for the
2042	2048		services from other state agency providers of the services or
2043	2049		private commercial sources.
2044	2050		(c) Each commercially available service performed by the
2045	2051		comptroller [commission] shall be reviewed at least once every six
2046	2052		years.
2047	2053		Sec. 2163.0011. COMPTROLLER POWERS AND [TRANSFER OF]
2048	2054		DUTIES[; REFERENCE]. [(a)] The comptroller has under this chapter
2049	2055		the powers and duties described by Section 2151.004(d) [of the
2050	2056		commission under this chapter are transferred to the comptroller].
2051	2057		[(b) In this chapter, a reference to the commission means
2052	2058		the comptroller.]
2053	2059		Sec. 2163.002. COST COMPARISON AND CONTRACT
2054	2060		CONSIDERATIONS. (a) The comptroller [commission] shall consider
2055	2061		all of its direct and indirect costs in determining the cost of
2056	2062		providing a service.
2057	2063		(b) In comparing the cost of providing a service, the
2058	2064		comptroller [commission] must include the:
2059	2065		(1) cost of supervising the work of a private
2060	2066		contractor; and
2061	2067		(2) cost to the state of the comptroller's
2062	2068		[commission's] performance of the service, including:
2063	2069		(A) the costs of the office of the attorney
2064	2070		general and other support agencies; and
2065	2071		(B) other indirect costs related to the
2066	2072		comptroller's [commission's] performance of the service.
2067	2073		Sec. 2163.003. CONTRACTING WITH ANOTHER STATE AGENCY OR
2068	2074		PRIVATE SOURCE. (a) If the comptroller [commission] determines
2069	2075		that a service can be performed with a comparable or better level of
2070	2076		quality at a savings to the state of at least 10 percent by using
2071	2077		other state agency providers of the service or a private commercial
2072	2078		source, the comptroller [commission] may contract with other state
2073	2079		agency providers of the services or private commercial sources for
2074	2080		the service.
2075	2081		(b) The comptroller [commission] maintains responsibility
2076	2082		for providing a contracted service and shall set measurable
2077	2083		performance standards for a contractor.
2078	2084		Sec. 2163.004. PROHIBITION. The comptroller [commission]
2079	2085		may not begin providing a service the General Services Commission
2080	2086		did not provide as of September 1, 2001, unless, after conducting an
2081	2087		in-depth analysis on cost in accordance with Section 2163.002 and
2082	2088		on availability of a service, the comptroller [commission]
2083	2089		determines that it can perform the service at a higher level of
2084	2090		quality or at a lower cost than other state agency providers of the
2085	2091		service or private commercial sources.
2086	2092		SECTION 101. Sections 2171.001 and 2171.0011, Government
2087	2093		Code, are amended to read as follows:
2088	2094		Sec. 2171.001. TRAVEL DIVISION. The travel division of the
2089	2095		comptroller [commission] is composed of the central travel office
2090	2096		and the office of vehicle fleet management.
2091	2097		Sec. 2171.0011. COMPTROLLER POWERS AND [TRANSFER OF]
2092	2098		DUTIES[; REFERENCE]. [(a)] The comptroller has under this chapter
2093	2099		the powers and duties described by Section 2151.004(d) [of the
2094	2100		commission under this chapter are transferred to the comptroller].
2095	2101		[(b) In this chapter, a reference to the commission means
2096	2102		the comptroller.]
2097	2103		SECTION 102. Section 2171.051(c), Government Code, is
2098	2104		amended to read as follows:
2099	2105		(c) After approval by the comptroller [executive director],
2100	2106		the central travel office shall designate state agencies that may
2101	2107		use the services of the office. The comptroller [executive
2102	2108		director] shall approve the use of those services by the designated
2103	2109		state agencies after the director of the travel division certifies
2104	2110		to the comptroller [executive director] that the central travel
2105	2111		office is capable of providing those services.
2106	2112		SECTION 103. Sections 2171.052(c) and (d), Government Code,
2107	2113		are amended to read as follows:
2108	2114		(c) The comptroller [commission] may make contracts with
2109	2115		travel agents that meet certain reasonable requirements prescribed
2110	2116		by the central travel office, with preference given to resident
2111	2117		entities of this state.
2112	2118		(d) To the greatest extent possible, the comptroller
2113	2119		[commission] shall use electronic means to solicit and receive bids
2114	2120		under this section.
2115	2121		SECTION 104. Sections 2171.055(a), (b), (c), (d), (e), (f),
2116	2122		(g), (h), and (j), Government Code, are amended to read as follows:
2117	2123		(a) State agencies in the executive branch of state
2118	2124		government shall participate under comptroller [commission] rules
2119	2125		in the comptroller's [commission's] contracts for travel services,
2120	2126		provided that all travel agents approved by the comptroller
2121	2127		[commission] are permitted to contract with the state and provide
2122	2128		travel services to all state agencies.
2123	2129		(b) An institution of higher education as defined by Section
2124	2130		61.003, Education Code, is not required to participate in the
2125	2131		comptroller's [commission's] contracts for travel agency services
2126	2132		or other travel services purchased from funds other than general
2127	2133		revenue funds or educational and general funds as defined by
2128	2134		Section 51.009, Education Code. The Employees Retirement System of
2129	2135		Texas is not required to participate in the comptroller's
2130	2136		[commission's] contracts for travel agency services or other travel
2131	2137		services purchased from funds other than general revenue funds.
2132	2138		(c) The comptroller [commission] may provide by rule for
2133	2139		exemptions from required participation.
2134	2140		(d) Agencies of the state that are not required to
2135	2141		participate in comptroller [commission] contracts for travel
2136	2142		services may participate as provided by Section 2171.051.
2137	2143		(e) A county officer or employee who is engaged in official
2138	2144		county business may participate in the comptroller's [commission's]
2139	2145		contract for travel services for the purpose of obtaining reduced
2140	2146		airline fares and reduced travel agent fees. A county sheriff or
2141	2147		deputy sheriff or juvenile probation officer who is transporting a
2142	2148		state prisoner under a felony warrant may participate in the
2143	2149		comptroller's [commission's] contract for travel services for
2144	2150		purposes of obtaining reduced airline fares and reduced travel
2145	2151		agent fees for the law enforcement or probation officer and the
2146	2152		prisoner. The comptroller [commission] may charge a participating
2147	2153		county a fee not to exceed the costs incurred by the comptroller
2148	2154		[commission] in providing services under this subsection. The
2149	2155		comptroller [commission] shall periodically review fees and shall
2150	2156		adjust them as needed to ensure recovery of costs incurred in
2151	2157		providing services to counties under this subsection. The
2152	2158		comptroller [commission] shall deposit the fees collected under
2153	2159		this subsection to the credit of the county airline fares account.
2154	2160		The county airline fares account is an account in the general
2155	2161		revenue fund that may be appropriated only for the purposes of this
2156	2162		chapter. The comptroller [commission] shall adopt rules and make
2157	2163		or amend contracts as necessary to administer this subsection.
2158	2164		(f) An officer or employee of a public junior college, as
2159	2165		defined by Section 61.003, Education Code, of an open-enrollment
2160	2166		charter school established under Subchapter D, Chapter 12,
2161	2167		Education Code, or of a school district who is engaged in official
2162	2168		business may participate in the comptroller's [commission's]
2163	2169		contract for travel services. The comptroller [commission] may
2164	2170		charge a participating public junior college, open-enrollment
2165	2171		charter school, or school district a fee not to exceed the costs
2166	2172		incurred by the comptroller [commission] in providing services
2167	2173		under this subsection. The comptroller [commission] shall
2168	2174		periodically review fees and shall adjust them as needed to ensure
2169	2175		recovery of costs incurred in providing services to public junior
2170	2176		colleges, open-enrollment charter schools, and school districts
2171	2177		under this subsection. The comptroller [commission] shall deposit
2172	2178		the fees collected under this subsection to the credit of the public
2173	2179		education travel account. The public education travel account is
2174	2180		an account in the general revenue fund that may be appropriated only
2175	2181		for the purposes of this chapter. The comptroller [commission]
2176	2182		shall adopt rules and make or amend contracts as necessary to
2177	2183		administer this subsection.
2178	2184		(g) A municipal officer or employee who is engaged in
2179	2185		official municipal business may participate in the comptroller's
2180	2186		[commission's] contract for travel services for the purpose of
2181	2187		obtaining reduced airline fares and reduced travel agent fees. The
2182	2188		comptroller [commission] may charge a participating municipality a
2183	2189		fee not to exceed the costs incurred by the comptroller
2184	2190		[commission] in providing services under this subsection. The
2185	2191		comptroller [commission] shall periodically review fees and shall
2186	2192		adjust them as needed to ensure recovery of costs incurred in
2187	2193		providing services to municipalities under this subsection. The
2188	2194		comptroller [commission] shall deposit the fees collected under
2189	2195		this subsection to the credit of the municipality airline fares
2190	2196		account. The municipality airline fares account is an account in
2191	2197		the general revenue fund that may be appropriated only for the
2192	2198		purposes of this chapter. The comptroller [commission] shall adopt
2193	2199		rules and make or amend contracts as necessary to administer this
2194	2200		subsection.
2195	2201		(h) A board member or employee of a communication district
2196	2202		or an emergency communication district established under Chapter
2197	2203		772, Health and Safety Code, who is engaged in official district
2198	2204		business may participate in the comptroller's [commission's]
2199	2205		contract for travel services for the purpose of obtaining reduced
2200	2206		airline fares and reduced travel agent fees. The comptroller
2201	2207		[commission] may charge a participating district a fee not to
2202	2208		exceed the costs incurred by the comptroller [commission] in
2203	2209		providing services under this subsection. The comptroller
2204	2210		[commission] shall periodically review fees and shall adjust them
2205	2211		as needed to ensure recovery of costs incurred in providing
2206	2212		services to districts under this subsection. The comptroller
2207	2213		[commission] shall deposit the fees collected under this subsection
2208	2214		to the credit of the emergency communication district airline fares
2209	2215		account. The emergency communication district airline fares
2210	2216		account is an account in the general revenue fund that may be
2211	2217		appropriated only for the purposes of this chapter. The
2212	2218		comptroller [commission] shall adopt rules and make or amend
2213	2219		contracts as necessary to administer this subsection.
2214	2220		(j) An officer or employee of a hospital district created
2215	2221		under general or special law who is engaged in official hospital
2216	2222		district business may participate in the comptroller's
2217	2223		[commission's] contract for travel services for the purpose of
2218	2224		obtaining reduced airline fares and reduced travel agent fees. The
2219	2225		comptroller [commission] may charge a participating hospital
2220	2226		district a fee not to exceed the costs incurred by the comptroller
2221	2227		[commission] in providing services under this subsection. The
2222	2228		comptroller [commission] shall periodically review fees and shall
2223	2229		adjust them as needed to ensure recovery of costs incurred in
2224	2230		providing services to hospital districts under this subsection.
2225	2231		The comptroller [commission] shall deposit the fees collected under
2226	2232		this subsection to the credit of the hospital district airline
2227	2233		fares account. The hospital district airline fares account is an
2228	2234		account in the general revenue fund that may be appropriated only
2229	2235		for the purposes of this chapter. The comptroller [commission]
2230	2236		shall adopt rules and make or amend contracts as necessary to
2231	2237		administer this subsection.
2232	2238		SECTION 105. Sections 2171.056(a), (b), and (c), Government
2233	2239		Code, are amended to read as follows:
2234	2240		(a) This section applies only to a state agency in the
2235	2241		executive branch of state government that is required to
2236	2242		participate in the comptroller's [commission's] contracts for
2237	2243		travel services.
2238	2244		(b) Except as provided by comptroller [commission] rule, a
2239	2245		state agency may not:
2240	2246		(1) purchase commercial airline or rental car
2241	2247		transportation if the amount of the purchase exceeds the amount of
2242	2248		the central travel office's contracted fares or rates; or
2243	2249		(2) reimburse a person for the purchase of commercial
2244	2250		airline or rental car transportation for the amount that exceeds
2245	2251		the amount of the central travel office's contracted fares or
2246	2252		rates.
2247	2253		(c) The comptroller [commission] shall educate state
2248	2254		agencies about this section.
2249	2255		SECTION 106. Section 2171.104(d), Government Code, is
2250	2256		amended to read as follows:
2251	2257		(d) The Texas Facilities Commission [commission] shall
2252	2258		require a state agency to transfer surplus or salvage vehicles
2253	2259		identified by the management plan to the Texas Facilities
2254	2260		Commission [commission] and shall sell or dispose of the vehicles
2255	2261		in accordance with the provisions of Chapter 2175 that provide for
2256	2262		disposition of surplus or salvage property by the Texas Facilities
2257	2263		Commission [commission].
2258	2264		SECTION 107. The heading to Chapter 2172, Government Code,
2259	2265		is amended to read as follows:
2260	2266		CHAPTER 2172. MISCELLANEOUS GENERAL SERVICES PROVIDED BY
2261	2267		COMPTROLLER [COMMISSION]
2262	2268		SECTION 108. Sections 2172.001, 2172.0011, and 2172.002,
2263	2269		Government Code, are amended to read as follows:
2264	2270		Sec. 2172.001. CENTRAL SUPPLY STORE. The comptroller
2265	2271		[commission] may operate a central supply store at which only state
2266	2272		agencies, the legislature, and legislative agencies may obtain
2267	2273		small supply items. If the comptroller [commission] operates a
2268	2274		central supply store, the comptroller [commission] shall devise an
2269	2275		appropriate method of billing a using entity for the supplies.
2270	2276		Sec. 2172.0011. COMPTROLLER POWERS AND [TRANSFER OF]
2271	2277		DUTIES[; REFERENCE]. [(a)] The comptroller has under this chapter
2272	2278		the powers and duties described by Section 2151.004(d) [of the
2273	2279		commission under this chapter are transferred to the comptroller].
2274	2280		[(b) In this chapter, a reference to the commission means
2275	2281		the comptroller.]
2276	2282		Sec. 2172.002. BUSINESS MACHINE REPAIR. (a) The
2277	2283		comptroller [commission] may maintain a facility for repairing
2278	2284		office machines and may offer repair services to the following
2279	2285		entities located in Austin:
2280	2286		(1) state agencies;
2281	2287		(2) the legislature; and
2282	2288		(3) legislative agencies.
2283	2289		(b) Using entities shall pay the comptroller [commission]
2284	2290		for repair services by vouchers prepared and sent to the using
2285	2291		entity by the comptroller [commission].
2286	2292		(c) The comptroller [commission] may not repair or maintain
2287	2293		a privately owned machine.
2288	2294		SECTION 109. Sections 2172.003(a), (b), and (c), Government
2289	2295		Code, are amended to read as follows:
2290	2296		(a) The comptroller [commission] may:
2291	2297		(1) assist a state agency with the agency's printing
2292	2298		activities; and
2293	2299		(2) assess and evaluate those activities.
2294	2300		(b) The comptroller [commission] may recommend changes
2295	2301		intended to increase the productivity and cost-effectiveness of
2296	2302		printing operations of state agencies. Recommendations may be
2297	2303		reported periodically as provided by comptroller [to the
2298	2304		appropriate associate deputy director under commission] rules.
2299	2305		(c) The comptroller [commission] may:
2300	2306		(1) adopt standard accounting procedures that permit
2301	2307		evaluating and comparing the costs of printing operations conducted
2302	2308		by state agencies;
2303	2309		(2) coordinate activities among state print shops;
2304	2310		(3) review state agency requisitions for new printing
2305	2311		shop equipment;
2306	2312		(4) assist state agencies in expediting the production
2307	2313		of printing and graphic arts;
2308	2314		(5) maintain a roster of state print shops and their
2309	2315		equipment, facilities, and special capabilities;
2310	2316		(6) serve as a clearinghouse for private vendors of
2311	2317		printing services to ensure that printing services and supplies are
2312	2318		purchased in the most efficient and economical manner;
2313	2319		(7) coordinate the consolidation of print shops
2314	2320		operated by state agencies when the agencies involved determine
2315	2321		that consolidation is appropriate; and
2316	2322		(8) develop procedures for the recovery of the
2317	2323		comptroller's [commission's] reasonable costs under Chapter 317
2318	2324		from amounts appropriated to the state agencies for which
2319	2325		identified savings are achieved.
2320	2326		SECTION 110. Sections 2172.004 and 2172.005, Government
2321	2327		Code, are amended to read as follows:
2322	2328		Sec. 2172.004. ARCHIVES. The comptroller [commission] may
2323	2329		store and display the archives of Texas.
2324	2330		Sec. 2172.005. DONATIONS. The comptroller [commission] may
2325	2331		solicit and accept private donations for the Congress Avenue
2326	2332		beautification program, a capital improvements project in Austin.
2327	2333		The program includes improvements in the Capitol Complex [capitol
2328	2334		complex] generally north of the Capitol along either side of
2329	2335		Congress Avenue.
2330	2336		SECTION 111. Sections 2172.006(a), (b), and (d), Government
2331	2337		Code, are amended to read as follows:
2332	2338		(a) Notwithstanding any other provision of law, the
2333	2339		comptroller [commission] may negotiate and contract with a
2334	2340		privately owned business entity for the design and manufacture of:
2335	2341		(1) an official state lapel pin for purchase by
2336	2342		members and former members of the house of representatives;
2337	2343		(2) an official state lapel pin for purchase by
2338	2344		members and former members of the senate;
2339	2345		(3) an official state ring for purchase by members and
2340	2346		former members of the house of representatives; and
2341	2347		(4) an official state ring for purchase by members and
2342	2348		former members of the senate.
2343	2349		(b) The comptroller [commission] must submit any design of
2344	2350		an official state lapel pin or ring to the State Preservation Board
2345	2351		for its approval.
2346	2352		(d) The comptroller [commission] by rule shall establish
2347	2353		the purchase price for a lapel pin or ring. After payment of
2348	2354		amounts required under the contract and recovery of its costs of
2349	2355		administering this section, the comptroller [commission] shall
2350	2356		deposit any remaining funds received from the sale of items under
2351	2357		this section to the credit of the Texas preservation trust fund.
2352	2358		SECTION 112. Sections 2176.0011, 2176.003, and 2176.004,
2353	2359		Government Code, are amended to read as follows:
2354	2360		Sec. 2176.0011. COMPTROLLER POWERS AND [TRANSFER OF]
2355	2361		DUTIES[; REFERENCE]. [(a)] The comptroller has under this chapter
2356	2362		the powers and duties described by Section 2151.004(d) [of the
2357	2363		commission under this chapter are transferred to the comptroller].
2358	2364		[(b) In this chapter, a reference to the commission means
2359	2365		the comptroller.]
2360	2366		Sec. 2176.003. [COMMISSION] EVALUATION OF STATE AGENCY MAIL
2361	2367		OPERATIONS. The comptroller [commission] shall:
2362	2368		(1) evaluate the mail operations of state agencies
2363	2369		located in Travis County and make recommendations to identify and
2364	2370		eliminate practices resulting in excessive mail costs; and
2365	2371		(2) establish minimum objectives and responsibilities
2366	2372		for managing mail for the agencies.
2367	2373		Sec. 2176.004. [COMMISSION] PROCEDURES FOR IMPROVEMENT OF
2368	2374		MAIL OPERATIONS. The comptroller [commission] shall:
2369	2375		(1) in conjunction with the United States Postal
2370	2376		Service, establish procedures to improve the measurement of state
2371	2377		agency mail costs, using postage meters or stamps as appropriate;
2372	2378		(2) establish procedures to determine the advantages
2373	2379		to state agencies of presorting mail;
2374	2380		(3) establish procedures to determine the lowest cost
2375	2381		class of mail necessary to effectively accomplish individual state
2376	2382		agency functions;
2377	2383		(4) evaluate the cost-effectiveness of using
2378	2384		alternatives to the United States Postal Service for delivering
2379	2385		state agency mail;
2380	2386		(5) train state agency personnel regarding
2381	2387		cost-effective mailing practices;
2382	2388		(6) set standards for receipt, delivery, collection,
2383	2389		and dispatch of mail; and
2384	2390		(7) publish and disseminate standards, guides, and
2385	2391		instructions for managing mail and establish and implement
2386	2392		procedures for monitoring compliance with the standards, guides,
2387	2393		and instructions.
2388	2394		SECTION 113. Section 2176.051(a), Government Code, is
2389	2395		amended to read as follows:
2390	2396		(a) The comptroller [commission] shall operate a messenger
2391	2397		service for delivering unstamped written communications and
2392	2398		packages between the following entities located in Travis County:
2393	2399		(1) state agencies;
2394	2400		(2) the legislature; and
2395	2401		(3) legislative agencies.
2396	2402		SECTION 114. Sections 2176.102, 2176.103, 2176.104,
2397	2403		2176.105, 2176.106, and 2176.107, Government Code, are amended to
2398	2404		read as follows:
2399	2405		Sec. 2176.102. [COMMISSION] EVALUATION. The comptroller
2400	2406		[commission] shall evaluate the outgoing first-class mail
2401	2407		practices of state agencies located in Travis County, including the
2402	2408		lists, systems, and formats used to create mail.
2403	2409		Sec. 2176.103. DISCOUNTED POSTAL RATES. The comptroller
2404	2410		[commission] shall achieve the maximum available discount on postal
2405	2411		rates whenever acceptable levels of timeliness, security, and
2406	2412		quality of service can be maintained using the discounted rate.
2407	2413		Sec. 2176.104. REQUIREMENT TO CONSULT WITH COMPTROLLER
2408	2414		[COMMISSION]. A state agency to which this subchapter applies
2409	2415		shall consult the comptroller [commission] before the agency may:
2410	2416		(1) purchase, upgrade, or sell mail processing
2411	2417		equipment;
2412	2418		(2) contract with a private entity for mail
2413	2419		processing; or
2414	2420		(3) take actions that significantly affect the
2415	2421		agency's first-class mail practices.
2416	2422		Sec. 2176.105. GUIDELINES FOR MEASURING AND ANALYZING
2417	2423		FIRST-CLASS MAIL PRACTICES. (a) The comptroller [commission]
2418	2424		shall adopt and distribute to each state agency to which this
2419	2425		subchapter applies guidelines by which outgoing first-class mail
2420	2426		practices may be measured and analyzed. The guidelines must require
2421	2427		using the services of the United States Postal Service to the extent
2422	2428		possible.
2423	2429		(b) The comptroller [commission] shall review and update
2424	2430		the guidelines at least once every two years, beginning two years
2425	2431		after the date on which the guidelines are adopted.
2426	2432		Sec. 2176.106. TRAINING. (a) Not later than the 90th day
2427	2433		after the date on which the initial guidelines under Section
2428	2434		2176.105 are distributed, and at least annually beginning one year
2429	2435		after the date of distribution, the comptroller [commission] shall
2430	2436		provide training to state agency personnel who handle first-class
2431	2437		mail.
2432	2438		(b) The comptroller [commission] may use to the extent
2433	2439		possible free training provided by the United States Postal
2434	2440		Service.
2435	2441		Sec. 2176.107. PREREQUISITE TO UPGRADING OR REPLACING MAIL
2436	2442		EQUIPMENT; COMPARISON AND ANALYSIS. (a) If the comptroller
2437	2443		[commission] determines that upgrading existing mail production or
2438	2444		processing equipment or purchasing new mail production or
2439	2445		processing equipment is required to improve outgoing first-class
2440	2446		mail practices of the comptroller [commission] or another state
2441	2447		agency located in Travis County, the comptroller [commission] shall
2442	2448		prepare a cost-benefit analysis demonstrating that the upgrade or
2443	2449		purchase is more cost-effective than contracting with a private
2444	2450		entity to provide the equipment or mail service.
2445	2451		(b) The comptroller [commission] shall approve the most
2446	2452		cost-effective method.
2447	2453		SECTION 115. The heading to Section 2176.109, Government
2448	2454		Code, is amended to read as follows:
2449	2455		Sec. 2176.109. FEES FOR COMPTROLLER [COMMISSION] SERVICES.
2450	2456		SECTION 116. Sections 2176.109(a) and (c), Government Code,
2451	2457		are amended to read as follows:
2452	2458		(a) The comptroller [commission] by interagency contract
2453	2459		shall charge and collect fees from each state agency to which this
2454	2460		subchapter applies for the comptroller's [commission's] services
2455	2461		under this subchapter.
2456	2462		(c) The comptroller [commission] shall transfer to the
2457	2463		general revenue fund the amount of a fee charged a state agency
2458	2464		under this section that is greater than the amount of the
2459	2465		comptroller's [commission's] actual expenses for performing the
2460	2466		services for the agency.
2461	2467		SECTION 117. Sections 2176.152 and 2176.203, Government
2462	2468		Code, are amended to read as follows:
2463	2469		Sec. 2176.152. PROCESSING UNITED STATES MAIL IN CAPITOL
2464	2470		COMPLEX. United States mail may be delivered to and from the post
2465	2471		office located in the Capitol Complex [capitol complex] on
2466	2472		agreement between the comptroller [commission] and the affected
2467	2473		agency.
2468	2474		Sec. 2176.203. NOTIFICATION OF SERVICE OPTIONS. The
2469	2475		comptroller [commission] shall, as part of the guidelines developed
2470	2476		under Section 2176.105, provide information to state agencies about
2471	2477		special mail services offered by the United States Postal Service.
2472	2478		The comptroller [commission] shall assist a state agency in
2473	2479		determining which service to use, considering the state agency's
2474	2480		needs for accountability, timeliness, security, and quality of
2475	2481		service.
2476	2482		SECTION 118. Section 2254.007(b), Government Code, is
2477	2483		amended to read as follows:
2478	2484		(b) This section does not apply to the enforcement of a
2479	2485		contract entered into by a state agency as that term is defined by
2480	2486		Section 2151.002. In this subsection, "state agency" includes the
2481	2487		Texas Facilities [Building and Procurement] Commission and the
2482	2488		comptroller.
2483	2489		SECTION 119. Section 2262.0011, Government Code, is amended
2484	2490		to read as follows:
2485	2491		Sec. 2262.0011. COMPTROLLER POWERS AND [TRANSFER OF]
2486	2492		DUTIES[; REFERENCE]. [(a)] The comptroller has under this chapter
2487	2493		the powers and duties described by Section 2151.004(d) [of the
2488	2494		commission under this chapter are transferred to the comptroller].
2489	2495		[(b) In this chapter, a reference to the commission means
2490	2496		the comptroller.]
2491	2497		SECTION 120. Sections 2262.051(a) and (b), Government Code,
2492	2498		are amended to read as follows:
2493	2499		(a) In consultation with the attorney general, the
2494	2500		Department of Information Resources, [the comptroller,] and the
2495	2501		state auditor, the comptroller [commission] shall develop or
2496	2502		periodically update a contract management guide for use by state
2497	2503		agencies. Participation by the state auditor under this subsection
2498	2504		is subject to approval by the legislative audit committee for
2499	2505		inclusion in the audit plan under Section 321.013(c).
2500	2506		(b) The comptroller [commission] may adopt rules necessary
2501	2507		to develop or update the guide.
2502	2508		SECTION 121. Section 2262.054, Government Code, is amended
2503	2509		to read as follows:
2504	2510		Sec. 2262.054. PUBLIC COMMENT. The comptroller
2505	2511		[commission] by rule may establish procedures by which each state
2506	2512		agency is required to invite public comment by publishing the
2507	2513		proposed technical specifications for major contracts on the
2508	2514		Internet through the information service known as the Texas
2509	2515		Marketplace or through a suitable successor information service.
2510	2516		The guide must define "technical specifications."
2511	2517		SECTION 122. Section 361.965(e), Health and Safety Code, is
2512	2518		amended to read as follows:
2513	2519		(e) The comptroller [Texas Building and Procurement
2514	2520		Commission] and the Department of Information Resources shall adopt
2515	2521		rules to implement this section.
2516	2522		SECTION 123. Section 195.008(b), Local Government Code, is
2517	2523		amended to read as follows:
2518	2524		(b) The committee consists of:
2519	2525		(1) the following persons appointed by the director
2520	2526		and librarian:
2521	2527		(A) one person who is employed by or is an officer
2522	2528		of a title insurance agent or title insurance company;
2523	2529		(B) an officer or employee of a federal
2524	2530		government-sponsored entity;
2525	2531		(C) a person who as a usual business practice
2526	2532		obtains copies of recorded instruments from a county clerk to
2527	2533		maintain an abstract or title plant; and
2528	2534		(D) a public representative;
2529	2535		(2) two persons who are county judges or county
2530	2536		commissioners appointed by the County Judges and Commissioners
2531	2537		Association of Texas;
2532	2538		(3) four county clerks appointed by the County and
2533	2539		District Clerks' Association of Texas;
2534	2540		(4) three persons who are employed by or officers of
2535	2541		different title insurance agents or companies appointed by the
2536	2542		Texas Land Title Association;
2537	2543		(5) the presiding officer of the Title Insurance
2538	2544		Subcommittee of the Real Estate, Probate, and Trust Law section of
2539	2545		the State Bar of Texas or the functional equivalent of that
2540	2546		subcommittee;
2541	2547		(6) the attorney general or a person designated by the
2542	2548		attorney general;
2543	2549		(7) the comptroller or a person designated by the
2544	2550		comptroller;
2545	2551		(8) the executive director of the Texas Facilities
2546	2552		[General Services] Commission or a person designated by the
2547	2553		executive director;
2548	2554		(9) the executive director of the Department of
2549	2555		Information Resources or a person designated by the executive
2550	2556		director; and
2551	2557		(10) the director and librarian or a person designated
2552	2558		by the director and librarian, who also serves as presiding officer
2553	2559		of the committee.
2554	2560		SECTION 124. Sections 263.152(a) and (a-1), Local
2555	2561		Government Code, are amended to read as follows:
2556	2562		(a) The commissioners court of a county may:
2557	2563		(1) periodically sell the county's surplus or salvage
2558	2564		property by competitive bid or auction, except that competitive
2559	2565		bidding or an auction is not necessary if the purchaser is another
2560	2566		county or a political subdivision within the county that is selling
2561	2567		the surplus or salvage property;
2562	2568		(2) offer the property as a trade-in for new property
2563	2569		of the same general type if the commissioners court considers that
2564	2570		action to be in the best interests of the county;
2565	2571		(3) order any of the property to be destroyed or
2566	2572		otherwise disposed of as worthless if the commissioners court
2567	2573		undertakes to sell that property under Subdivision (1) and is
2568	2574		unable to do so because no bids are made;
2569	2575		(4) dispose of the property by donating it to a civic
2570	2576		or charitable organization located in the county if the
2571	2577		commissioners court determines that:
2572	2578		(A) undertaking to sell the property under
2573	2579		Subdivision (1) would likely result in no bids or a bid price that
2574	2580		is less than the county's expenses required for the bid process;
2575	2581		(B) the donation serves a public purpose; and
2576	2582		(C) the organization will provide the county with
2577	2583		adequate consideration, such as relieving the county of
2578	2584		transportation or disposal expenses related to the property;
2579	2585		(5) transfer gambling equipment in the possession of
2580	2586		the county following its forfeiture to the state to the Texas
2581	2587		Facilities [Building and Procurement] Commission for sale under
2582	2588		Section 2175.904, Government Code; or
2583	2589		(6) order any vehicle retired under a program designed
2584	2590		to encourage the use of low-emission vehicles to be crushed and
2585	2591		recycled, if practicable, without a competitive bid or auction.
2586	2592		(a-1) The commissioners court shall remit money received
2587	2593		from the Texas Facilities [Building and Procurement] Commission
2588	2594		from the sale of gambling equipment under Section 2175.904(c),
2589	2595		Government Code, less administrative expenses incurred by the
2590	2596		county in connection with the transfer and sale of the equipment, to
2591	2597		the local law enforcement agency that originally seized the
2592	2598		equipment.
2593	2599		SECTION 125. Sections 31.157(b) and (c), Natural Resources
2594	2600		Code, are amended to read as follows:
2595	2601		(b) The draft report shall be submitted to the Texas
2596	2602		Facilities [Building and Procurement] Commission, which shall
2597	2603		further evaluate the potential use of the real property by another
2598	2604		state agency. The land office shall submit a draft report to each
2599	2605		agency that owns or holds in trust property that is the subject of
2600	2606		the draft report. The Texas Facilities [Building and Procurement]
2601	2607		Commission may make additional recommendations regarding the use of
2602	2608		the real property. The state agency that owns or controls real
2603	2609		property named in the report may comment on any findings or
2604	2610		recommendations made by the commissioner. The Texas Facilities
2605	2611		[Building and Procurement] Commission and any state agency that
2606	2612		owns or controls real property named in the report shall complete a
2607	2613		review of the draft report within 60 days of the receipt of the
2608	2614		report and forward all recommendations and comments to the
2609	2615		commissioner.
2610	2616		(c) The commissioner shall prepare and issue a final
2611	2617		evaluation report that incorporates any recommendations of the
2612	2618		Texas Facilities [Building and Procurement] Commission regarding
2613	2619		the potential use of the real property by another state agency and
2614	2620		any comments from any state agency that owns or controls property
2615	2621		named in the report.
2616	2622		SECTION 126. The following provisions of the Government
2617	2623		Code are repealed:
2618	2624		(1) Section 2170.0011;
2619	2625		(2) Section 2170.0012; and
2620	2626		(3) Section 2262.001(1-a).
2621	2627		SECTION 127. This Act takes effect September 1, 2019.
2622		-	______________________________ ______________________________
2623		-	President of the Senate Speaker of the House
2624		-	I certify that H.B. No. 1524 was passed by the House on May 3,
2625		-	2019, by the following vote: Yeas 140, Nays 0, 2 present, not
2626		-	voting.
2627		-	______________________________
2628		-	Chief Clerk of the House
2629		-	I certify that H.B. No. 1524 was passed by the Senate on May
2630		-	22, 2019, by the following vote: Yeas 31, Nays 0.
2631		-	______________________________
2632		-	Secretary of the Senate
2633		-	APPROVED: _____________________
2634		-	Date
2635		-	_____________________
2636		-	Governor
	2628	+	* * * * *