HBA-KDB H.B. 1217 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1217 By: Pitts State Affairs 3/7/2001 Introduced BACKGROUND AND PURPOSE Currently, the Texas Council on Competitive Government (CCG) identifies and studies opportunities to encourage competition between state agencies and private commercial vendors. Under Texas' current competitive process, CCG is authorized to identify competitive opportunities throughout state agencies, and to respond to suggestions for competition from private vendors. However, the agencies are not required to identify such opportunities, or to catalog their own activities that are available from or can be provided by private vendors. House Bill 1217 requires a state agency to identify functions that it performs that are also commercially available in the private sector, and to select a percentage of those functions to subject them to competition with the private sector. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 1217 amends the Government Code to require a state agency to endeavor to limit its size and use its funds as effectively and efficiently as possible in the performance of essential government functions. The bill requires a state agency to endeavor not to perform a function if a private entity can perform that function better and at a lower cost. As determined by State Council on Competitive Government (CCG) rule, the bill requires a state agency to identify each function that it performs that is also commercially available in the private sector and electronically report this information to the governor's office no later than June 1, 2002. The bill requires an agency to link each identified function with the state agency employees or positions that perform that function and to include the findings in its strategic plan for operations. H.B. 1217 requires a state agency to annually select a reasonable percentage of the identified functions and to subject specific selected functions to competition with the private sector by using an appropriate competitive procurement process allowed under state law under which private businesses may offer to perform a selected function. The bill authorizes the division or part of the agency that performs a function subjected to competition with the private sector to participate in the competitive procurement process as if the division or part were a private business. If the bid, proposal, or other applicable kind of offer submitted by the division or part provides the best value for the state, the bill authorizes the division or part to continue to perform the function but in accordance with the bid, proposal, or other applicable kind of offer submitted by the division or part. In addition, the bill requires the Texas Incentive and Productivity Commission to treat the successful bid, proposal, or other applicable kind of offer as a suggestion submitted by a state employee group and consider whether the employees of the division or part are eligible for a bonus or a recognition award. H.B. 1217 requires an agency to annually report the percentage and specific projects identified by the competition with the private sector, and to summarize the results of the competition to CCG and in the agency's strategic plan of operations. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.