HBA-DMD S.B. 1127 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1127 By: Armbrister State Affairs 5/6/1999 Engrossed BACKGROUND AND PURPOSE Currently, the General Services Commission (GSC) must purchase goods and services according to state law. S.B. 1127 authorizes GSC, a state agency, or other entity to purchase from a contract entered into under the authority of GSC in order to pay certain charges and fees provided that GSC, a state agency, or other entity determines the charge is justifiable. This bill requires GSC and state agencies to give preference to recycled, remanufactured, or environmentally sensitive products as defined by GSC rule. It authorizes GSC to enter into one or more compacts, interagency agreements, or cooperative purchasing agreements with one or more state governments, agencies of other states, or other governmental entities for the purchase of goods or services, provided that GSC determines that entering into the agreement would be in the best interest of the state. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the General Services Commission in SECTIONS 6, 7, and 9 (Sections 2155.445, 2155.448, and Section 2156.181, Government Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 2155.078(a) and (m), Government Code, as follows: Sec. 2155.078. New Title: TRAINING AND CERTIFICATION OF STATE AGENCY PURCHASING PERSONNEL AND VENDORS. Authorizes the General Services Commission (GSC) to establish and offer appropriate training to vendors on a cost recovery basis. Deletes passing an oral examination as a commission prerequisite for receiving a levelthree purchaser certification. Makes a conforming change. SECTION 2. Amends Section 2155.262(d), Government Code, to delete a requirement for GSC to send a copy of each uniform registration form to the comptroller. SECTION 3. Amends Section 2155.263(a), Government Code, to delete the specification that a list of vendors that applies for registration under rules adopted under this subchapter is required to be registered annually. SECTION 4. Amends Section 2155.266(a), Government Code, to authorize GSC to charge a registrant a biennial, rather than an annual, renewal fee. SECTION 5. Section 2155.384, Government Code, to authorize GSC, a state agency, or an entity authorized under Chapter 271 (Purchasing and Contracting Authority of Municipalities, Counties, and Certain Other Local Governments), Local Government Code, or Section 2155.202 (Mental Health and Mental Retardation Community Centers; Assistance Organizations), Government Code, to purchase from a contract entered into under the authority of GSC to pay certain charges and fees if GSC, a state agency, or other entity determines the charge is justifiable. Makes conforming changes. SECTION 6. Amends Section 2155.445, Government Code, as follows: Sec. 2155.455. New Title: PREFERENCE FOR RECYCLED, REMANUFACTURED, OR ENVIRONMENTALLY SENSITIVE PRODUCTS. (a) Requires GSC and state agencies to give preference to recycled, remanufactured, or environmentally sensitive products, as those terms are defined by rule of GSC, rather than give preference to a product made of recycled materials, in purchases made if the product meets certain standards. Makes conforming changes. (b) Makes conforming changes. (c) Makes conforming changes. SECTION 7. Amends Section 2155.448, Government Code, as follows: Sec. 2155.448. New Title: EXPENDITURES FOR RECYCLED, REMANUFACTURED, OR ENVIRONMENTALLY SENSITIVE COMMODITIES OR SERVICES. Authorizes GSC, in each state fiscal year, in coordination with the Recycling Market Development Board to identify, by rule, certain environmentally sensitive commodities or services, and to designate purchasing goals for the procurement of those commodities and services by state agencies for that fiscal year. Deletes a requirement that a state agency spend not less than eight percent of its budget on certain environmentally sensitive products. (b) Requires a state agency that intends to purchase a commodity or services that does not meet certain standards to include with the procurement file a written justification signed by its executive head stating the reasons why the commodity or services will not meet the requirements of the agency. Deletes a requirement that a state agency must report total expenditures in certain areas to the Legislative Budget Board. (c) Requires a state agency to report the expenditures made during the preceding fiscal year for each of the commodities or services identified under Subsection (a), in its annual financial report and in an annual report to the GSC at a date and in a manner and form prescribed by GSC. Requires the report to contain certain criteria regarding amounts spent on certain environmentally sensitive commodities and services. SECTION 8. Amends Section 2156.121, Government Code, to require GSC to determine whether to delegate sole oversight of the acquisition to a state agency or to retain oversight of the procurement. SECTION 9. Amends Chapter 2156, Government Code, by adding Subchapter D, as follows: SUBCHAPTER D. INTERSTATE COMPACTS PROCEDURE Sec. 2156.181. INTERSTATE COMPACTS AND COOPERATIVE AGREEMENTS FOR PROCUREMENTS. Authorizes GSC to enter into one or more compacts, interagency agreements, or cooperative purchasing agreements with one or more state governments, agencies of other states, or other governmental entities for the purchase of goods or services, provided that GSC determines that entering into the agreement would be in the best interest of the state. Authorizes GSC to adopt rules to implement this section. SECTION 10. Amends Section 2157.001(1), Government Code, to modify the definition of "automated information system." SECTION 11. Amends Sections 2157.005(a) and (b), Government Code, to specify that the technology access clause be included in all contracts entered into by the state or state agencies involving the acquisition of an automated information system. Set forth language for the access clause. Prohibits state funds from being expending in the purchase of an automated information system unless the contract contains the technology access clause. Deletes text requiring certain information regarding the technology to be included in the clause. Defines "equivalent access." SECTION 12. Amends Section 2157.0611, Government Code, to require a catalogue purchase or lease that exceeds $2,000 or a greater amount prescribed by GSC rule to be based on certain evaluations. Requires GSC or other agency, if at least three catalogue proposals are not evaluated by GSC or other state agency before a purchase or lease that exceeds the threshold amount is made, to document the reasons for that fact before making the purchase or lease under Section 2157.063, Government Code. SECTION 13. Amends Section 2157.063(a), Government Code, to authorize a state agency to negotiate price, if a purchase or lease is in the best value available and is in the state's best interest. SECTION 14. Amends Section 2157.066(b) and (c), Government Code, and adds Subsection (f), as follows: (b) Deletes text requiring GSC to make certain revisions regarding price changes or availability of goods or services in a catalogue. (c) Requires GSC to require each qualified information system vendor to maintain its current approved catalogue on the web, rather than maintain a home page on the web. (f) Authorizes GSC to audit a qualified information systems vendor's approved catalogue for compliance with Subsection (c). SECTION 15. Amends Section 2158.241, Government Code, to authorize, rather than require, GSC to enter into compacts and cooperative agreements with other states and governmental entities for the procurement of products that are made of recycled materials, when GSC determines it is in the best interest of the state. SECTION 16. Amends Section 2254.040(a), Government Code, to authorize, rather than require, GSC to procure consulting services for a requesting state agency. SECTION 17. Repealer: Section 2155.268(d), Government Code (Use of State Agency Bidders List). SECTION 18.Makes application of Section 2157.005(b), Government Code, as amended by this Act prospective. SECTION 19.Emergency clause. Effective date: upon passage.