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.