H.B. No. 1524
 
 
 
 
AN ACT
  relating to correcting outdated references to the Texas Building
  and Procurement Commission.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 411.064, Government Code, is amended to
  read as follows:
         Sec. 411.064.  ASSISTANCE OF TEXAS DEPARTMENT OF
  TRANSPORTATION OR TEXAS FACILITIES [GENERAL SERVICES] COMMISSION.
  (a) On request of the department, the Texas Department of
  Transportation and the Texas Facilities [General Services]
  Commission shall:
               (1)  assist the department in the marking and
  designation of parking lots, parking garages, and parking spaces;
               (2)  maintain the painting of lines and curb markings;
  and
               (3)  furnish and erect direction and information signs.
         (b)  The department may recover the cost of providing the
  services described in Subsection (a) from the agency or agencies
  for which the service was provided. To the extent that either the
  Texas Facilities [General Services] Commission or the Texas
  Department of Transportation provides or assists in providing the
  services described in Subsection (a), that agency shall be
  reimbursed by the department from its funds or the funds received
  from another agency under this subsection.
         SECTION 2.  Section 411.0645(a), Government Code, is amended
  to read as follows:
         (a)  The department, the City of Austin, the Capital
  Metropolitan Transportation Authority, the Texas Facilities
  [General Services] Commission, the State Preservation Board, and
  The University of Texas at Austin shall each designate a
  representative to a committee established for the purpose of
  coordinating transportation in and adjacent to the Capitol Complex.
  The representative of the department shall convene the initial
  meeting of the committee, and the committee shall elect officers
  and meet as decided by the committee.
         SECTION 3.  Sections 469.106(b) and (d), Government Code,
  are amended to read as follows:
         (b)  The department and the Texas Facilities [Building and
  Procurement] Commission shall ensure compliance with the standards
  and specifications described by Subsection (a) for a building or
  facility described by Subsection (a) and leased for an annual
  amount of more than $12,000 or built by or for the state.
         (d)  If an inspection under Subsection (c) determines that a
  building or facility does not comply with all applicable standards
  and specifications, the leasing agency or the Texas Facilities
  [Building and Procurement] Commission, as applicable, shall cancel
  the lease unless the lessor brings the building or facility into
  compliance not later than:
               (1)  the 60th day after the date the person performing
  the inspection delivers the results of the inspection to the lessor
  or the lessor's agent; or
               (2)  a later date established by the commission if
  circumstances justify a later date.
         SECTION 4.  Section 1232.003(4), Government Code, is amended
  to read as follows:
               (4)  "Commission" means the Texas Facilities [Building
  and Procurement] Commission.
         SECTION 5.  Section 2101.0115(c), Government Code, is
  amended to read as follows:
         (c)  A state agency's annual report must include:
               (1)  the name and job title of each bonded agency
  employee, the amount of the bond, and the name of the surety company
  that issued the bond;
               (2)  an analysis of space occupied by the agency,
  including:
                     (A)  the total amount of space rented by the
  agency, expressed in square feet;
                     (B)  the total amount of space occupied by the
  agency in state-owned buildings, expressed in square feet;
                     (C)  the name and address of each building in
  which the agency occupies space and the amount of square feet in
  each building devoted to each particular use;
                     (D)  the cost per square foot of all rented space;
                     (E)  the annual and monthly cost of all rented
  space;
                     (F)  the name of each lessor of space rented by the
  agency;
                     (G)  a description of the agency's progress toward
  achieving the objective provided by Section 2165.104, if the agency
  is subject to that section; and
                     (H)  any other information helpful to describe the
  agency's use of space;
               (3)  an itemization of all fees paid by the agency for
  professional or consulting services provided under Subchapter A or
  B, Chapter 2254, including the name of each person receiving those
  fees and the reason for the provision of the services;
               (4)  an itemization of all fees paid by the agency for
  legal services, other than legal services provided by an agency
  employee or the attorney general, including the name of each person
  receiving those fees and the reason for the provision of the
  services;
               (5)  a copy of the form prepared by the agency under
  Section 2205.041, relating to the agency's use and cost of
  operating aircraft that are state-owned or under rental or
  long-term lease;
               (6)  an itemization of any purchases made under Section
  2155.067, including each product purchased, the amount of the
  purchase, and the name of the vendor;
               (7)  for each fiscal year ending in an even-numbered
  calendar year:
                     (A)  a copy of the master file report verification
  form certified by the General Land Office, if applicable to the
  agency, to confirm that the agency is in compliance with Subchapter
  E, Chapter 31, Natural Resources Code; or
                     (B)  if the agency's inventory record is
  inaccurate or incomplete, a statement that the agency will submit
  the appropriate forms to the General Land Office not later than the
  15th day after the date the agency submits its annual report;
               (8)  a copy of the report prepared by the agency under
  Section 2161.124, relating to the agency's use of historically
  underutilized businesses;
               (9)  a report of each transfer of appropriated money
  between appropriation items that shows the sum of all transfers
  affecting each item;
               (10)  an itemization of each passenger vehicle the
  agency purchased, including the make, model, purchase price,
  assigned type of use, and fuel efficiency as expressed by the
  manufacturer's fuel efficiency rating;
               (11)  a schedule, applicable to state agencies
  determined by the Legislative Budget Board, detailing total
  expenditures by or on behalf of the agency for:
                     (A)  employee benefits, including social
  security, health insurance, retirement contributions, benefit
  replacement pay, and workers' and unemployment compensation
  payments;
                     (B)  bond debt service; and
                     (C)  payments for general governmental services
  as defined by the comptroller, including services of the
  comptroller, the attorney general, the Texas Facilities [General
  Services] Commission, the Department of Information Resources, and
  the state auditor;
               (12)  for an institution of higher education, the total
  amount of lump-sum vacation and compensatory leave payments made to
  employees who separated from state service during the fiscal year;
               (13)  the name and job title of each state officer or
  employee authorized to use a state-owned or state-leased vehicle
  and the reasons for the authorization, in accordance with Section
  2113.013; and
               (14)  a report of expenditures made for each commodity
  or service identified under Section 2155.448, including:
                     (A)  the total amount spent on those commodities
  and services;
                     (B)  the total amount spent for commodities and
  services purchased that accomplish the same purpose; and
                     (C)  the total amount spent for all other
  recycled, remanufactured, or environmentally sensitive commodities
  or services, itemized by type of commodity or service.
         SECTION 6.  Section 2152.0011(b), Government Code, is
  amended to read as follows:
         (b)  In this chapter, "commission" [or "Texas Building and
  Procurement Commission"] means the Texas Facilities Commission.
         SECTION 7.  Sections 2155.0011 and 2155.002, Government
  Code, are amended to read as follows:
         Sec. 2155.0011.  COMPTROLLER POWERS AND [TRANSFER OF]
  DUTIES[; REFERENCE]. [(a)] The comptroller has under this chapter
  the powers and duties described by Section 2151.004(d) [of the
  commission under this chapter are transferred to the comptroller].
         [(b)     In this chapter, a reference to the commission means
  the comptroller.]
         Sec. 2155.002.  [COMMISSION] FOCUS ON LARGE EXPENDITURES.
  To the extent possible, the comptroller [commission] shall focus
  its efforts under this chapter and Chapters 2156, 2157, and 2158 on
  purchases and contracts that involve relatively large amounts of
  money.
         SECTION 8.  Section 2155.061, Government Code, is amended to
  read as follows:
         Sec. 2155.061.  COMPTROLLER [COMMISSION] PURCHASING SYSTEM.
  (a) The comptroller [commission] shall acquire by purchase, lease,
  rental, or another manner all goods and services for a state agency,
  including a purchase that does not require a competitive bid or a
  spot purchase.
         (b)  The comptroller [commission] shall operate an effective
  and economical system for purchasing goods and services.
         SECTION 9.  Section 2155.062(a), Government Code, is amended
  to read as follows:
         (a)  In purchasing goods and services the comptroller
  [commission] may use, but is not limited to, the:
               (1)  contract purchase procedure;
               (2)  multiple award contract procedure, including
  under any schedules developed under Subchapter I;
               (3)  open market purchase procedure; or
               (4)  reverse auction procedure.
         SECTION 10.  Section 2155.064, Government Code, is amended
  to read as follows:
         Sec. 2155.064.  SCHEDULE AND BULK PURCHASING. The
  comptroller [commission] may combine orders in a system of schedule
  purchasing and shall attempt to benefit from bulk purchasing.
         SECTION 11.  Sections 2155.065(a) and (c), Government Code,
  are amended to read as follows:
         (a)  The comptroller [commission] is authorized to make
  contracts with the Texas Department of Criminal Justice for the
  purchase of goods and services for use by another state agency.
         (c)  The comptroller [commission] shall make awards under
  this section based on proposed goods and services meeting formal
  state specifications developed by the comptroller [commission] or
  meeting commercial specifications approved by the comptroller
  [commission].
         SECTION 12.  Section 2155.066, Government Code, is amended
  to read as follows:
         Sec. 2155.066.  REVIEW OF SPECIFICATIONS. The comptroller
  [commission] shall review the specifications and purchase
  conditions of goods or services considered for purchase.
         SECTION 13.  Sections 2155.067(a), (c), (d), and (f),
  Government Code, are amended to read as follows:
         (a)  If, after review under Section 2155.066, the
  comptroller [commission] finds that specifications and conditions
  of a purchase request describe a product that is proprietary to one
  vendor and do not permit an equivalent product to be supplied, the
  comptroller [commission] shall require the requesting state agency
  to justify in writing the specifications or conditions.
         (c)  The written justification must:
               (1)  explain the need for the specifications;
               (2)  state the reason competing products are not
  satisfactory; and
               (3)  provide other information requested by the
  comptroller [commission].
         (d)  If the comptroller [commission] requires a resubmission
  with written justification, the comptroller [commission] shall
  notify the requesting state agency of the requirement not later
  than the 10th day after the date of receiving the purchase request.
         (f)  The comptroller [commission] shall issue an invitation
  to bid to vendors not later than the 20th day after the date of
  receiving the required written justification.
         SECTION 14.  Sections 2155.068, 2155.069, 2155.070,
  2155.072, 2155.073, 2155.074, and 2155.075, Government Code, are
  amended to read as follows:
         Sec. 2155.068.  UNIFORM STANDARDS AND SPECIFICATIONS. (a)
  The comptroller [commission] may coordinate uniform standards and
  specifications for goods purchased by the comptroller
  [commission]. The comptroller [commission] by rule may adopt
  appropriate standards developed by a nationally recognized
  standards-making association as part of its specifications and
  standards program.
         (b)  The comptroller [commission] shall enlist the
  cooperation of other state agencies in the establishment,
  maintenance, and revision of uniform standards and specifications.
         (c)  The comptroller [commission] shall review contracts
  administered by the comptroller [commission] to ensure that all
  goods and services meet contract specifications.
         (d)  As part of the standards and specifications program, the
  comptroller [commission] shall:
               (1)  review contracts for opportunities to recycle
  waste produced at state buildings;
               (2)  develop and update a list of equipment and
  appliances that meet the energy efficiency standards provided by
  Section 2158.301; and
               (3)  assist state agencies in selecting products under
  Section 2158.301, as appropriate.
         Sec. 2155.069.  TESTING AND INSPECTION. (a) The
  comptroller [commission] may test and inspect goods and services
  purchased under a contract administered by the comptroller
  [commission] to ensure compliance with specifications.
         (b)  The comptroller [commission] may contract for testing
  under this section.
         (c)  The comptroller [commission] may, on request, test and
  inspect goods and services purchased by other state governmental
  entities on a cost recovery basis.
         (d)  The comptroller [commission] may also test and inspect
  goods and services before they are purchased. Other state agencies
  may test and inspect goods and services before purchase under
  standard industry testing methods, or they may contract for
  testing. The comptroller [commission] may inform agencies about
  available private testing facilities.
         Sec. 2155.070.  FAILURE TO MEET SPECIFICATIONS. (a) A state
  agency that determines that goods or services received under a
  contract administered by the comptroller [commission] do not meet
  specifications shall promptly notify the comptroller [commission]
  in writing of the reasons for the determination. The comptroller
  [commission] shall immediately make its own determination of
  whether the goods and services meet specifications.
         (b)  The comptroller [commission] or a state agency,
  including an institution of higher education, has the authority to
  determine that goods and services exempted from the comptroller's
  [commission's] purchasing authority meet or fail to meet
  specifications.
         (c)  On determining that contract specifications or
  conditions have not been met, the comptroller [commission] shall
  act against the defaulting contractor, with the assistance of the
  attorney general as necessary.
         (d)  If the comptroller [commission] receives repeated
  complaints against a vendor, the comptroller [commission] shall
  remove the vendor's name and the vendor's goods and services from
  the comptroller's [commission's] bidders list for not longer than
  one year. If complaints resume after the vendor is reinstated on
  the bidders list, the comptroller [commission] may bar the vendor
  from participating in state contracts for a period under Section
  2155.077.
         Sec. 2155.072.  STATEWIDE OR REGIONAL SERVICES CONTRACTS;
  [COMMISSION] STUDIES. (a) The comptroller [commission] annually
  shall select for study at least one service that is purchased by one
  or more state agencies. The comptroller [commission] shall study a
  selected service to determine whether the state would benefit if
  the service were provided to appropriate state agencies under a
  regional or statewide contract. The comptroller [commission] shall
  give priority to studying services for which the comptroller
  [commission] has delegated the purchasing function to many state
  agencies.
         (b)  The comptroller [commission] is not required to enter
  into a statewide or regional contract for the provision of a service
  to state agencies if more than five bidders are willing to provide
  the service to the state under a statewide or regional contract.
         Sec. 2155.073.  PARTICIPATION BY SMALL BUSINESSES IN STATE
  PURCHASING. The comptroller [commission] shall foster
  participation of small businesses in the purchasing activities of
  the state by:
               (1)  assisting state agencies in developing procedures
  to ensure the inclusion of small businesses on state agency master
  bid lists;
               (2)  informing small businesses of state purchasing
  opportunities;
               (3)  assisting small businesses in complying with the
  procedures for bidding on state contracts;
               (4)  working with state and federal agencies and with
  private organizations in disseminating information on state
  purchasing procedures and the opportunities for small businesses to
  participate in state contracts;
               (5)  assisting state agencies with the development of a
  comprehensive list of small businesses capable of providing goods
  or services to the state;
               (6)  making recommendations to state agencies to
  simplify contract specifications and terms to increase the
  opportunities for small business participation;
               (7)  working with state agencies to establish a
  statewide policy for increasing the use of small businesses;
               (8)  assisting state agencies in seeking small
  businesses capable of supplying goods and services that the
  agencies require;
               (9)  assisting state agencies in identifying and
  advising small businesses on the types of goods and services needed
  by the agencies; and
               (10)  assisting state agencies in increasing the volume
  of business placed with small businesses.
         Sec. 2155.074.  BEST VALUE STANDARD FOR PURCHASE OF GOODS OR
  SERVICES. (a) For a purchase of goods and services under this
  chapter, each state agency, including the comptroller
  [commission], shall purchase goods and services that provide the
  best value for the state.
         (b)  In determining the best value for the state, the
  purchase price and whether the goods or services meet
  specifications are the most important considerations. However, the
  comptroller [commission] or other state agency may, subject to
  Subsection (c) and Section 2155.075, consider other relevant
  factors, including:
               (1)  installation costs;
               (2)  life cycle costs;
               (3)  the quality and reliability of the goods and
  services;
               (4)  the delivery terms;
               (5)  indicators of probable vendor performance under
  the contract such as past vendor performance, the vendor's
  financial resources and ability to perform, the vendor's experience
  or demonstrated capability and responsibility, and the vendor's
  ability to provide reliable maintenance agreements and support;
               (6)  the cost of any employee training associated with
  a purchase;
               (7)  the effect of a purchase on agency productivity;
               (8)  the vendor's anticipated economic impact to the
  state or a subdivision of the state, including potential tax
  revenue and employment; and
               (9)  other factors relevant to determining the best
  value for the state in the context of a particular purchase.
         (c)  A state agency shall consult with and receive approval
  from the comptroller [commission] before considering factors other
  than price and meeting specifications when the agency procures
  through competitive bidding goods or services with a value that
  exceeds $100,000.
         Sec. 2155.075.  REQUIREMENT TO SPECIFY VALUE FACTORS IN
  REQUEST FOR BIDS OR PROPOSALS. (a) For a purchase made through
  competitive bidding, the comptroller [commission] or other state
  agency making the purchase must specify in the request for bids the
  factors other than price that the comptroller [commission] or
  agency will consider in determining which bid offers the best value
  for the state.
         (b)  For a purchase made through competitive sealed
  proposals, the comptroller [commission] or other state agency
  making the purchase:
               (1)  must specify in the request for proposals the
  known factors other than price that the comptroller [commission] or
  agency will consider in determining which proposal offers the best
  value for the state; and
               (2)  may concurrently inform each vendor that made a
  proposal on the contract of any additional factors the comptroller
  [commission] or agency will consider in determining which proposal
  offers the best value for the state if the comptroller [commission]
  or other agency determines after opening the proposals that
  additional factors not covered under Subdivision (1) are relevant
  in determining which proposal offers the best value for the state.
         SECTION 15.  Section 2155.076(a), Government Code, is
  amended to read as follows:
         (a)  The comptroller [commission] and each state agency by
  rule shall develop and adopt protest procedures for resolving
  vendor protests relating to purchasing issues. An agency's rules
  must be consistent with the comptroller's [commission's] rules.
  The rules must include standards for maintaining documentation
  about the purchasing process to be used in the event of a protest.
         SECTION 16.  Sections 2155.077(a), (a-1), (b), (c), and (d),
  Government Code, are amended to read as follows:
         (a)  The comptroller [commission] may bar a vendor from
  participating in state contracts that are subject to this subtitle,
  including contracts for which purchasing authority is delegated to
  a state agency, for:
               (1)  substandard performance under a contract with the
  state or a state agency;
               (2)  material misrepresentations in a bid or proposal
  to the state or a state agency or during the course of performing a
  contract with the state or a state agency;
               (3)  fraud;
               (4)  breaching a contract with the state or a state
  agency; or
               (5)  repeated unfavorable performance reviews under
  Section 2155.089 or repeated unfavorable classifications received
  by the vendor under Section 2262.055 after considering the
  following factors:
                     (A)  the severity of the substandard performance
  by the vendor;
                     (B)  the impact to the state of the substandard
  performance;
                     (C)  any recommendations by a contracting state
  agency that provides an unfavorable performance review;
                     (D)  whether debarment of the vendor is in the
  best interest of the state; and
                     (E)  any other factor that the comptroller
  considers relevant, as specified by comptroller rule.
         (a-1)  The comptroller [commission] shall bar a vendor from
  participating in state contracts that are subject to this subtitle,
  including contracts for which purchasing authority is delegated to
  a state agency, if the vendor has been:
               (1)  convicted of violating a federal law in connection
  with a contract awarded by the federal government for relief,
  recovery, or reconstruction efforts as a result of Hurricane Rita,
  as defined by Section 39.459, Utilities Code, Hurricane Katrina, or
  any other disaster occurring after September 24, 2005; or
               (2)  assessed a penalty in a federal civil or
  administrative enforcement action in connection with a contract
  awarded by the federal government for relief, recovery, or
  reconstruction efforts as a result of Hurricane Rita, as defined by
  Section 39.459, Utilities Code, Hurricane Katrina, or any other
  disaster occurring after September 24, 2005.
         (b)  Except as provided by Subsection (d), the comptroller
  [commission] shall bar a vendor from participating in state
  contracts under Subsection (a) or (a-2) for a period that is
  commensurate with the seriousness of the vendor's action and the
  damage to the state's interests.
         (c)  The comptroller [commission] by rule shall:
               (1)  state generally the reasons for which a vendor may
  be barred from participating in state contracts and the periods for
  which the vendor may be barred; and
               (2)  prescribe the procedures under which the
  comptroller [commission] will determine whether and for how long a
  vendor will be barred.
         (d)  The comptroller [commission] shall bar a vendor from
  participating in state contracts under Subsection (a-1) for a
  period of five years from the date the vendor was convicted or the
  penalty was assessed.
         SECTION 17.  Section 2155.079, Government Code, is amended
  to read as follows:
         Sec. 2155.079.  BUYING UNDER CONTRACT ESTABLISHED BY AGENCY
  OTHER THAN COMPTROLLER [COMMISSION]. (a) The comptroller
  [commission] shall adopt rules specifying the circumstances under
  which it is advantageous for the state to allow a state agency to
  purchase goods or services under a contract made by another state
  agency other than the comptroller [commission], including as
  provided under Subchapter I.
         (b)  If comptroller [commission] rules allow other agencies
  to make purchases under a contract entered into by an agency using
  delegated purchasing authority, the agency purchasing under
  delegated authority may offer the goods or services available under
  the contract to other agencies only if the agency first:
               (1)  establishes that the goods or services being
  offered under its contract are not available under a contract
  administered by the comptroller [commission]; and
               (2)  informs the comptroller [commission] of the terms
  of the contract and the capabilities of the vendor.
         SECTION 18.  Sections 2155.080(a), (b), and (d), Government
  Code, are amended to read as follows:
         (a)  The comptroller [commission] may establish an advisory
  committee on procurement. The purpose of the committee is to
  represent before the comptroller [commission] the state agency
  purchasing community and the political subdivisions that use the
  comptroller's [commission's] purchasing services.
         (b)  The committee is composed of officers or employees from
  the comptroller [commission], from state agencies, including
  institutions of higher education, and from political subdivisions
  who are invited by the comptroller [commission] to serve on the
  committee. The comptroller [commission] shall invite officers and
  employees who are experienced in public purchasing, in public
  finance, or who possess other appropriate expertise to serve on the
  committee. Service on the committee is an additional duty of the
  member's public office or employment. Chapter 2110 [Article
  6252-33, Revised Statutes,] does not apply to the size or
  composition of the committee. The comptroller [commission] shall
  set staggered terms for the members of the committee.
         (d)  The committee shall recommend improvements in
  comptroller [commission] or state agency purchasing practices to
  the comptroller [commission]. The committee shall review and
  comment on findings and recommendations related to purchasing that
  are made by state agency internal auditors or by the state auditor.
         SECTION 19.  Sections 2155.081(a) and (b), Government Code,
  are amended to read as follows:
         (a)  The comptroller [commission] may establish a vendor
  advisory committee. The purpose of the committee is to represent
  before the comptroller [commission] the vendor community, to
  provide information to vendors, and to obtain vendor input on state
  procurement practices.
         (b)  The committee is composed of employees from the
  comptroller [commission] and vendors who have done business with
  the state who are invited by the comptroller [commission] to serve
  on the committee. The comptroller [commission] shall invite a
  cross-section of the vendor community to serve on the committee,
  inviting both large and small businesses and vendors who provide a
  variety of different goods and services to the state. Chapter 2110
  [Article 6252-33, Revised Statutes,] does not apply to the size or
  composition of the committee. The comptroller [commission] shall
  set staggered terms for the members of the committee.
         SECTION 20.  Sections 2155.083(a), (c), (d), (f), and (k),
  Government Code, are amended to read as follows:
         (a)  Except as provided by Subsection (n), this section
  applies to each state agency making a procurement that will exceed
  $25,000 in value, without regard to the source of funds the agency
  will use for the procurement, including a procurement that:
               (1)  is otherwise exempt from the comptroller's
  [commission's] purchasing authority or the application of this
  subtitle;
               (2)  is made under delegated purchasing authority;
               (3)  is related to a construction project; or
               (4)  is a procurement of professional or consulting
  services.
         (c)  The comptroller [commission] each business day shall
  produce and post a business daily in an electronic format. The
  comptroller [commission] shall post in the business daily
  information as prescribed by this section about each state agency
  procurement that will exceed $25,000 in value. The comptroller
  [commission] shall also post in the business daily other
  information relating to the business activity of the state that the
  comptroller [commission] considers to be of interest to the public.
         (d)  The comptroller [commission] shall make the business
  daily available on the Internet. Each state agency shall cooperate
  with the comptroller [commission] in making the electronic business
  daily available.
         (f)  The comptroller [commission] and other state agencies
  may not charge a fee designed to recover the cost of preparing and
  gathering the information that is published in the business daily.
  These costs are considered part of a procuring agency's
  responsibility to publicly inform potential bidders or offerors of
  its procurement opportunities.
         (k)  Each state agency that will award a procurement contract
  estimated to exceed $25,000 in value shall send to the comptroller
  [commission]:
               (1)  the information the comptroller [commission]
  requires for posting in the state business daily under this
  section; and
               (2)  a notice when the procurement contract has been
  awarded or when the state agency has decided to not make the
  procurement.
         SECTION 21.  Sections 2155.084(a) and (c), Government Code,
  are amended to read as follows:
         (a)  The comptroller [commission] or the governing body of an
  institution of higher education may negotiate purchases of goods of
  any kind needed by a state agency or the institution of higher
  education with the appropriate agency of the federal government.
  The governing body of an institution of higher education may act
  under this section either directly or through the comptroller
  [commission] or another state agency.
         (c)  In negotiating purchases of goods from the federal
  government under this section or under Subchapter G, Chapter 2175,
  the comptroller [commission] or the governing body of the
  institution of higher education may waive the requirement of a
  bidder's bond and performance bond that otherwise would be
  required.
         SECTION 22.  Section 2155.085, Government Code, is amended
  to read as follows:
         Sec. 2155.085.  REVERSE AUCTION PROCEDURE. (a) The
  comptroller [commission] shall:
               (1)  purchase goods or services using the reverse
  auction procedure whenever:
                     (A)  the procedure provides the best value to the
  state; or
                     (B)  all purchasing methods provide equal value to
  the state;
               (2)  offer historically underutilized businesses
  assistance and training relating to the reverse auction procedure;
  and
               (3)  advise historically underutilized businesses on
  contracts available using the reverse auction procedure.
         (b)  The comptroller [commission] shall set a goal of
  purchasing at least 20 percent of the dollar value of goods or
  services purchased by the comptroller [commission] using the
  reverse auction procedure.
         SECTION 23.  The heading to Subchapter C, Chapter 2155,
  Government Code, is amended to read as follows:
  SUBCHAPTER C. DELEGATIONS OF AND EXCLUSIONS FROM COMPTROLLER'S
  [COMMISSION'S] PURCHASING AUTHORITY AND CERTAIN EXEMPTIONS FROM
  COMPETITIVE BIDDING
         SECTION 24.  Section 2155.131, Government Code, is amended
  to read as follows:
         Sec. 2155.131.  DELEGATION OF AUTHORITY TO STATE AGENCIES.
  The comptroller [commission] may delegate purchasing functions to a
  state agency.
         SECTION 25.  Sections 2155.132(a), (b), (c), (d), (f), and
  (g), Government Code, are amended to read as follows:
         (a)  A state agency is delegated the authority to purchase
  goods and services if the purchase does not exceed $15,000. If the
  comptroller [commission] determines that a state agency has not
  followed the comptroller's [commission's] rules or the laws related
  to the delegated purchases, the comptroller [commission] shall
  report its determination to the members of the state agency's
  governing body and to the governor, lieutenant governor, speaker of
  the house of representatives, and Legislative Budget Board.
         (b)  The comptroller [commission] by rule may delegate to a
  state agency the authority to purchase goods and services if the
  purchase exceeds $15,000. In delegating purchasing authority under
  this subsection or Section 2155.131, the comptroller [commission]
  shall consider factors relevant to a state agency's ability to
  perform purchasing functions, including:
               (1)  the capabilities of the agency's purchasing staff
  and the existence of automated purchasing tools at the agency;
               (2)  the certification levels held by the agency's
  purchasing personnel;
               (3)  the results of the comptroller's [commission's]
  procurement review audits of an agency's purchasing practices; and
               (4)  whether the agency has adopted and published
  protest procedures consistent with those of the comptroller
  [commission] as part of its purchasing rules.
         (c)  The comptroller [commission] shall monitor the
  purchasing practices of state agencies that are making delegated
  purchases under Subsection (b) or Section 2155.131 to ensure that
  the certification levels of the agency's purchasing personnel and
  the quality of the agency's purchasing practices continue to
  warrant the amount of delegated authority provided by the
  comptroller [commission] to the agency. The comptroller
  [commission] may revoke for cause all or part of the purchasing
  authority that the comptroller [commission] delegated to a state
  agency. The comptroller [commission] shall adopt rules to
  administer this subsection.
         (d)  The comptroller [commission] by rule:
               (1)  shall prescribe procedures for a delegated
  purchase; and
               (2)  shall prescribe procedures by which agencies may
  use the comptroller's [commission's] services for delegated
  purchases, in accordance with Section 2155.082.
         (f)  Goods purchased under this section may not include:
               (1)  an item for which a contract has been awarded under
  the contract purchase procedure, unless the quantity purchased is
  less than the minimum quantity specified in the contract;
               (2)  an item required by statute to be purchased from a
  particular source; or
               (3)  a scheduled item that has been designated for
  purchase by the comptroller [commission].
         (g)  A large purchase may not be divided into small lot
  purchases to meet the dollar limits prescribed by this section. The
  comptroller [commission] may not require that unrelated purchases
  be combined into one purchase order to exceed the dollar limits
  prescribed by this section.
         SECTION 26.  Section 2155.136(b), Government Code, is
  amended to read as follows:
         (b)  To make a purchase under this section, the medical or
  dental unit must:
               (1)  follow the competitive sealed proposals
  procedures under Subchapter C, Chapter 2157, and comptroller
  [commission] rules on the use of competitive sealed proposals; and
               (2)  submit to the comptroller [commission] a written
  finding that competitive sealed bidding or informal competitive
  bidding is not practical or is disadvantageous to the state for the
  proposed acquisition.
         SECTION 27.  Section 2155.137(a), Government Code, is
  amended to read as follows:
         (a)  The comptroller [commission] shall provide for
  emergency purchases by a state agency and may set a monetary limit
  on the amount of an emergency purchase.
         SECTION 28.  Section 2155.138(c), Government Code, is
  amended to read as follows:
         (c)  The comptroller [commission] shall make awards under
  this section based on proposed goods and services meeting formal
  state specifications developed by the comptroller [commission] or
  meeting commercial specifications approved by the comptroller
  [commission].
         SECTION 29.  Sections 2155.140 and 2155.141, Government
  Code, are amended to read as follows:
         Sec. 2155.140.  PURCHASE FROM GIFT OR GRANT NOT WITHIN
  COMPTROLLER'S [COMMISSION'S] PURCHASING AUTHORITY. The
  comptroller's [commission's] authority does not apply to a purchase
  of goods or services from a gift or grant, including an industrial
  or federal grant or contract in support of research.
         Sec. 2155.141.  PURCHASES FOR AUXILIARY ENTERPRISE NOT
  WITHIN COMPTROLLER'S [COMMISSION'S] PURCHASING AUTHORITY. The
  comptroller's [commission's] authority does not extend to a
  purchase of goods and services for an auxiliary enterprise.
         SECTION 30.  Section 2155.1441(d), Government Code, is
  amended to read as follows:
         (d)  A state agency shall provide appropriate information to
  the comptroller [commission] concerning acquisitions made by the
  agency under this section, but the comptroller's [commission's]
  authority under this chapter and Chapters 2156, 2157, and 2158 does
  not extend to the acquisition of goods and services made under this
  section.
         SECTION 31.  Section 2155.145, Government Code, is amended
  to read as follows:
         Sec. 2155.145.  CERTAIN PURCHASES BY TEXAS [NATURAL RESOURCE
  CONSERVATION] COMMISSION ON ENVIRONMENTAL QUALITY. The Texas
  [Natural Resource Conservation] Commission on Environmental
  Quality is delegated all purchasing functions relating to the
  administration of Subchapters F and I, Chapter 361, Health and
  Safety Code, subject to the rules adopted by the comptroller
  [commission] under Section 2155.132(c).
         SECTION 32.  Section 2155.146(c), Government Code, is
  amended to read as follows:
         (c)  The comptroller [commission] shall procure goods or
  services for the Employees Retirement System of Texas at the
  request of the retirement system, and the retirement system may use
  the services of the comptroller [commission] in procuring goods or
  services.
         SECTION 33.  Section 2155.147(c), Government Code, is
  amended to read as follows:
         (c)  The comptroller [commission] shall procure goods and
  services for the General Land Office at the request of the land
  office, and the land office may use the services of the comptroller
  [commission] in procuring goods and services.
         SECTION 34.  Section 2155.148(c), Government Code, is
  amended to read as follows:
         (c)  The comptroller [commission] shall procure goods or
  services for the Texas Emergency Services Retirement System at the
  request of the retirement system, and the retirement system may use
  the services of the comptroller [commission] in procuring goods or
  services.
         SECTION 35.  Section 2155.149(c), Government Code, is
  amended to read as follows:
         (c)  At the request of the Veterans' Land Board, the
  comptroller [commission] shall procure goods and services
  described by Subsection (a) for the Veterans' Land Board.  The
  Veterans' Land Board may use the services of the comptroller
  [commission] in procuring goods and services described by
  Subsection (a).
         SECTION 36.  Section 2155.150(c), Government Code, is
  amended to read as follows:
         (c)  The comptroller [commission] shall procure goods and
  services, under Subsection (a), for the Railroad Commission of
  Texas at the request of the railroad commission, and the railroad
  commission may use the services of the comptroller [commission] in
  procuring goods and services.
         SECTION 37.  The heading to Subchapter D, Chapter 2155,
  Government Code, is amended to read as follows:
  SUBCHAPTER D. EXTENSION OF COMPTROLLER [COMMISSION] PURCHASING
  SERVICES TO OTHER ENTITIES
         SECTION 38.  Sections 2155.203 and 2155.204, Government
  Code, are amended to read as follows:
         Sec. 2155.203.  PURCHASES BY LEGISLATURE AND LEGISLATIVE
  AGENCIES. A house of the legislature, or an agency, council, or
  committee of the legislature, including the Legislative Budget
  Board, the Texas Legislative Council, the state auditor's office,
  and the Legislative Reference Library, may use the comptroller's
  [commission's] purchasing services for purchasing goods and
  services, including items covered by Section 21, Article XVI, Texas
  Constitution.
         Sec. 2155.204.  LOCAL GOVERNMENT PURCHASING PROGRAM. The
  comptroller's [commission's] provision of purchasing services for
  local governments is governed by Subchapter D, Chapter 271, Local
  Government Code.
         SECTION 39.  Sections 2155.261, 2155.262, 2155.263,
  2155.265, 2155.267, 2155.269, and 2155.270, Government Code, are
  amended to read as follows:
         Sec. 2155.261.  APPLICABILITY. This subchapter:
               (1)  applies to a purchase or other acquisition under
  this chapter or Chapters 2156, 2157, and 2158 for which competitive
  bidding or competitive sealed proposals are required;
               (2)  applies to a state agency that makes a purchase or
  other acquisition under this chapter or Chapters 2156, 2157, and
  2158, including the comptroller [commission] and an agency that
  makes an acquisition under Section 2155.131 [or 2155.133]; and
               (3)  does not apply to a purchase or other acquisition
  made by the comptroller [commission] under Subchapter A, Chapter
  2156.
         Sec. 2155.262.  UNIFORM REGISTRATION FORM. (a) The
  comptroller [commission] shall develop a uniform registration form
  for applying to do business with the comptroller [commission] or
  with another state agency.
         (b)  The comptroller [commission] and each state agency
  shall make the form available to an applicant.
         (c)  The form must include an application for:
               (1)  certification as a historically underutilized
  business;
               (2)  a payee identification number for use by the
  comptroller; and
               (3)  placement on the comptroller's [commission's]
  master bidders list.
         (d)  A state agency shall submit to the comptroller
  [commission] each uniform registration form that it receives.
         Sec. 2155.263.  [COMMISSION TO MAINTAIN] CENTRALIZED MASTER
  BIDDERS LIST. (a) The comptroller [commission] shall maintain a
  centralized master bidders list and register on the list the name
  and address of each vendor that applies for registration under
  rules adopted under this subchapter. The comptroller [commission]
  may include other relevant vendor information on the list.
         (b)  The comptroller [commission] shall maintain the
  centralized master bidders list in a manner that facilitates a
  state agency's solicitation of vendors that serve the agency's
  geographic area.
         (c)  The centralized master bidders list shall be used for
  all available procurement processes authorized by this subtitle and
  shall also be used to the fullest extent possible by state agencies
  that make purchases exempt from the comptroller's [commission's]
  purchasing authority.
         Sec. 2155.265.  ACCESS TO MASTER BIDDERS LIST. (a) The
  comptroller [commission] shall make the master bidders list
  available to each state agency that makes a purchase or other
  acquisition to which this subchapter applies.
         (b)  The comptroller [commission] shall make the list
  available either electronically or in another form, depending on
  each state agency's needs.
         Sec. 2155.267.  [COMMISSION] RULES AND PROCEDURES REGARDING
  MASTER BIDDERS LIST. (a) The comptroller [commission] shall adopt
  procedures for:
               (1)  making and maintaining the master bidders list;
  and
               (2)  removing an inactive vendor from the list.
         (b)  The comptroller [commission] shall establish by rule a
  vendor classification process under which only a vendor able to
  make a bid or proposal on a particular purchase or other acquisition
  may be solicited under this subchapter.
         Sec. 2155.269.  WAIVER. The comptroller [commission] by
  rule may establish a process under which the requirement for
  soliciting bids or proposals from eligible vendors on a bidders
  list may be waived for an appropriate state agency or an appropriate
  purchase or other acquisition under circumstances in which the
  requirement is not warranted.
         Sec. 2155.270.  AGENCY ASSISTANCE WITH BIDDERS LIST ISSUES.
  The comptroller [commission] may assist a state agency with issues
  relating to a bidders list.
         SECTION 40.  Section 2155.321(2), Government Code, is
  amended to read as follows:
               (2)  "Purchase information" means information that the
  comptroller [commission] determines is necessary to audit a
  purchase under this subchapter.
         SECTION 41.  Section 2155.322(c), Government Code, is
  amended to read as follows:
         (c)  The comptroller [commission] by rule may require that
  purchase information be sent directly to the comptroller
  [commission] in circumstances under which the comptroller
  [commission] considers it necessary.
         SECTION 42.  The heading to Section 2155.323, Government
  Code, is amended to read as follows:
         Sec. 2155.323.  [COMPTROLLER] AUDIT OF FINANCIAL
  INFORMATION[; TRANSMISSION OF PURCHASE INFORMATION TO COMMISSION].
         SECTION 43.  Section 2155.384, Government Code, is amended
  to read as follows:
         Sec. 2155.384.  AUTHORITY TO PAY CHARGES. The comptroller
  [commission], a state agency, or an entity authorized under Chapter
  271, Local Government Code, or Section 2155.202 to purchase from a
  contract entered into under the authority of the comptroller
  [commission] may pay a restocking charge, cancellation fee, or
  other similar charge if the comptroller [commission], state agency,
  or other entity determines that the charge is justifiable.
         SECTION 44.  Section 2155.385(a), Government Code, is
  amended to read as follows:
         (a)  If authorized by rule adopted by the comptroller under
  Section 403.023, the comptroller [commission] may contract with one
  or more credit card issuers for state agencies to use credit cards
  to pay for purchases. The comptroller [commission] may not enter
  into a contract that conflicts with the [comptroller's] rules
  described by this subsection.
         SECTION 45.  Section 2155.441(c), Government Code, is
  amended to read as follows:
         (c)  The comptroller [commission] is not required to
  purchase products under this section that do not meet formal state
  specifications developed by the comptroller [commission] or meet
  commercial specifications approved by the comptroller
  [commission].
         SECTION 46.  Section 2155.442, Government Code, is amended
  to read as follows:
         Sec. 2155.442.  PREFERENCE FOR ENERGY EFFICIENT PRODUCTS.
  The comptroller [commission] shall give preference to energy
  efficient products in purchases made under this subtitle if:
               (1)  the products meet state specifications regarding
  quantity and quality; and
               (2)  the cost of the product is equal to or less than
  the cost of other similar products that are not energy efficient.
         SECTION 47.  Section 2155.443, Government Code, is amended
  to read as follows:
         Sec. 2155.443.  PREFERENCE FOR RUBBERIZED ASPHALT PAVING.
  The comptroller [commission] may give preference to rubberized
  asphalt paving made from scrap tires by a facility in this state in
  purchases of rubberized asphalt paving material if the cost as
  determined by a life-cycle cost benefit analysis does not exceed by
  more than 15 percent the bid cost of alternative paving materials.
         SECTION 48.  Sections 2155.444(a), (d), and (e), Government
  Code, are amended to read as follows:
         (a)  The comptroller [commission] and all state agencies
  making purchases of goods, including agricultural products, shall
  give preference to those produced or grown in this state or offered
  by Texas bidders as follows:
               (1)  goods produced or offered by a Texas bidder that is
  owned by a service-disabled veteran who is a Texas resident shall be
  given a first preference and goods produced in this state or offered
  by other Texas bidders shall be given second preference, if the cost
  to the state and quality are equal; and
               (2)  agricultural products grown in this state shall be
  given first preference and agricultural products offered by Texas
  bidders shall be given second preference, if the cost to the state
  and quality are equal.
         (d)  The comptroller [commission] and all state agencies
  making purchase of vegetation for landscaping purposes, including
  plants, shall give preference to Texas vegetation native to the
  region if the cost to the state is not greater and the quality is not
  inferior.
         (e)  The comptroller [commission] and all state agencies
  procuring services shall give first preference to services offered
  by a Texas bidder that is owned by a service-disabled veteran who is
  a Texas resident and shall give second preference to services
  offered by other Texas bidders if:
               (1)  the services meet state requirements regarding the
  service to be performed and expected quality; and
               (2)  the cost of the service does not exceed the cost of
  other similar services of similar expected quality that are offered
  by a bidder that is not entitled to a preference under this
  subsection.
         SECTION 49.  Sections 2155.445(a), (b), and (c), Government
  Code, are amended to read as follows:
         (a)  The comptroller [commission] and state agencies shall
  give preference to recycled, remanufactured, or environmentally
  sensitive products, as those terms are defined by rule of the
  comptroller [commission], in purchases made under this subtitle if:
               (1)  the product meets state specifications regarding
  quantity and quality; and
               (2)  the average price of the product is not more than
  10 percent greater than the price of comparable nonrecycled
  products.
         (b)  The comptroller [commission] regularly shall review and
  revise its procurement procedures and specifications for the
  purchase of goods to:
               (1)  eliminate procedures and specifications that
  explicitly discriminate against recycled, remanufactured, or
  environmentally sensitive products, as those terms are defined by
  rule of the comptroller [commission]; and
               (2)  encourage the use of recycled, remanufactured, or
  environmentally sensitive products.
         (c)  In developing new procedures and specifications, the
  comptroller [commission] shall encourage the use of recycled
  products and products that may be recycled or reused or that are
  remanufactured or environmentally sensitive.
         SECTION 50.  Sections 2155.446(a) and (b), Government Code,
  are amended to read as follows:
         (a)  Subject to Subsection (c), the comptroller [commission]
  shall contract for paper containing the highest proportion of
  recycled fibers for all purposes for which paper with recycled
  fibers may be used and to the extent that the paper is available
  through normal commercial sources to supply the state's needs.
         (b)  Subject to Subsection (c), a state agency that purchases
  through the comptroller [commission] shall place orders for papers
  containing recycled fibers to the highest extent of its needs and to
  the extent that the paper is available through the comptroller's
  [commission's] purchasing procedures.
         SECTION 51.  Section 2155.447, Government Code, is amended
  to read as follows:
         Sec. 2155.447.  PURCHASE OF RECYCLED OIL. The comptroller
  [commission], all state agencies, and all state agency employees
  who purchase motor oil and other automotive lubricants for
  state-owned vehicles shall give preference to motor oils and
  lubricants that contain at least 25 percent recycled oil if the cost
  to the state and the quality are comparable to those of new oil and
  lubricants.
         SECTION 52.  Sections 2155.448(a) and (b), Government Code,
  are amended to read as follows:
         (a)  Each state fiscal year, the comptroller [commission] by
  rule may identify recycled, remanufactured, or environmentally
  sensitive commodities or services, as those terms are defined by
  rule of the comptroller [commission], and designate purchasing
  goals for the procurement of those commodities and services by
  state agencies for that fiscal year.
         (b)  A state agency that intends to purchase a commodity or
  service that accomplishes the same purpose as a commodity or
  service identified under Subsection (a) that does not meet the
  definition of a recycled product or that is not remanufactured or
  environmentally sensitive, as those terms are defined by rule of
  the comptroller [commission], shall include with the procurement
  file a written justification signed by the executive head of the
  agency stating the reasons for the determination that the commodity
  or service identified by the comptroller [commission] will not meet
  the requirements of the agency.
         SECTION 53.  Section 2155.449(b), Government Code, is
  amended to read as follows:
         (b)  The comptroller [commission] and all state agencies
  procuring goods or services shall give preference to goods or
  services produced in an economically depressed or blighted area if:
               (1)  the goods or services meet state specifications
  regarding quantity and quality; and
               (2)  the cost of the good or service does not exceed the
  cost of other similar products or services that are not produced in
  an economically depressed or blighted area.
         SECTION 54.  Section 2155.450, Government Code, is amended
  to read as follows:
         Sec. 2155.450.  PREFERENCE FOR PRODUCTS OF FACILITIES ON
  FORMERLY CONTAMINATED PROPERTY. The comptroller [commission] and
  state agencies shall give preference to goods produced at a
  facility located on property for which the owner has received a
  certificate of completion under Section 361.609, Health and Safety
  Code, if the goods meet state specifications regarding quantity,
  quality, delivery, life cycle costs, and price.
         SECTION 55.  Section 2155.451(b), Government Code, is
  amended to read as follows:
         (b)  The comptroller [commission] and state agencies
  procuring goods or services may:
               (1)  give preference to goods or services of a vendor
  that demonstrates that the vendor meets or exceeds any state or
  federal environmental standards, including voluntary standards,
  relating to air quality; or
               (2)  require that a vendor demonstrate that the vendor
  meets or exceeds any state or federal environmental standards,
  including voluntary standards, relating to air quality.
         SECTION 56.  Section 2155.452, Government Code, is amended
  to read as follows:
         Sec. 2155.452.  PREFERENCE FOR CONTRACTORS PROVIDING FOODS
  OF HIGHER NUTRITIONAL VALUE. (a) The comptroller [commission] and
  state agencies making purchases of food for consumption in a public
  cafeteria may give preference to contractors who provide foods of
  higher nutritional value and who do not provide foods containing
  trans fatty acids for consumption in the cafeteria.
         (b)  In complying with this section, the comptroller
  [commission] and state agencies shall review the Department of
  Agriculture's nutrition standards.
         SECTION 57.  Sections 2155.502(a), (b), and (c), Government
  Code, are amended to read as follows:
         (a)  The comptroller [commission] shall develop a schedule
  of multiple award contracts that have been previously awarded using
  a competitive process by:
               (1)  the federal government, including the federal
  General Services Administration; or
               (2)  any other governmental entity in any state.
         (b)  In developing a schedule under Subsection (a) or (e),
  the comptroller [commission] or department, as appropriate, shall
  modify any contractual terms, with the agreement of the parties to
  the contract, as necessary to comply with any federal or state
  requirements, including rules adopted under this subchapter.
         (c)  The comptroller [commission] may not list a multiple
  award contract on a schedule developed under Subsection (a) if the
  goods or services provided by that contract:
               (1)  are available from only one vendor;
               (2)  are telecommunications services, facilities, or
  equipment;
               (3)  are commodity items as defined by Section
  2157.068(a); or
               (4)  are engineering services as described by Section
  1001.003, Occupations Code, or architectural services as described
  by Section 1051.001, Occupations Code.
         SECTION 58.  Sections 2155.505(b) and (c), Government Code,
  are amended to read as follows:
         (b)  The comptroller [commission] shall strongly encourage
  each vendor with a contract listed on a schedule developed under
  this subchapter and who is not a historically underutilized
  business or small business to use historically underutilized or
  small businesses to sell or provide a service under the contract.
  If a vendor does not make a good faith effort to use historically
  underutilized and small businesses under the contract, the
  comptroller [commission] may exclude the vendor from being listed
  on a schedule developed under this subchapter.
         (c)  A historically underutilized business or small business
  may sell or provide a service under another vendor's contract
  listed on a schedule developed under this subchapter if:
               (1)  the contract is on a schedule developed under
  Section 2155.502;
               (2)  the vendor for the contract authorizes in writing
  the historically underutilized business or small business to sell
  or provide a service under that contract; and
               (3)  the historically underutilized business or small
  business provides that written authorization to the comptroller
  [commission].
         SECTION 59.  Sections 2155.506, 2155.508, and 2155.510,
  Government Code, are amended to read as follows:
         Sec. 2155.506.  REPORTING REQUIREMENTS. (a) A vendor
  listed on a contract for a schedule developed under this subchapter
  shall report its sales to the comptroller [commission] in the
  manner prescribed by the comptroller [commission].
         (b)  The comptroller [commission] shall compile the
  information reported under Subsection (a) and include the
  information in its report under Section 2101.011.
         Sec. 2155.508.  INTERNET AVAILABILITY. (a) The comptroller
  [commission] shall develop a database of the multiple award
  contracts developed under this subchapter and make that information
  available on an Internet site. The database must have search
  capabilities that allow a person to easily access the contracts.
         (b)  The comptroller [commission] shall allow vendors to
  apply through the Internet site to be listed on a schedule developed
  under this subchapter. The applicant shall provide an electronic
  mail address to the comptroller [commission] as part of the
  application process.
         Sec. 2155.510.  REBATES. (a) The comptroller [commission]
  may collect a rebate from a vendor under a contract listed on a
  schedule developed under this subchapter.
         (b)  If a purchase resulting in a rebate under this section
  is made in whole or in part with federal funds, the comptroller
  [commission] shall ensure that, to the extent the purchase was made
  with federal funds, the appropriate portion of the rebate is
  reported to the purchasing agency for reporting and reconciliation
  purposes with the appropriate federal funding agency.
         SECTION 60.  Sections 2156.001, 2156.0011, and 2156.004,
  Government Code, are amended to read as follows:
         Sec. 2156.001.  CONTRACT PURCHASE PROCEDURE AUTHORIZED. The
  comptroller [commission] may use the contract purchase procedure to
  purchase goods and services.
         Sec. 2156.0011.  COMPTROLLER POWERS AND [TRANSFER OF]
  DUTIES[; REFERENCE]. [(a)] The comptroller has under this chapter
  the powers and duties described by Section 2151.004(d) [of the
  commission under this chapter are transferred to the comptroller].
         [(b)     In this chapter, a reference to the commission means
  the comptroller.]
         Sec. 2156.004.  BID DEPOSIT. (a) The comptroller
  [commission], as considered necessary, may require a bid deposit in
  an amount determined by the comptroller [commission]. The amount
  of the deposit, if any, must be stated in the public notice and the
  invitation to bid.
         (b)  On the award of a bid or the rejection of all bids, the
  comptroller [commission] shall refund the bid deposit of an
  unsuccessful bidder.
         (c)  The comptroller [commission] may accept from a bidder a
  bid deposit in the form of a blanket bond.
         SECTION 61.  Section 2156.006(b), Government Code, is
  amended to read as follows:
         (b)  The comptroller [commission] may waive this requirement
  if the failure to comply is beyond the bidder's control.
         SECTION 62.  Sections 2156.007(a), (b), and (d), Government
  Code, are amended to read as follows:
         (a)  The comptroller [commission] or other state agency
  making a purchase shall award a contract to the bidder offering the
  best value for the state while conforming to the specifications
  required.
         (b)  In determining the bidder offering the best value, the
  comptroller [commission] or other state agency may consider the
  safety record of the bidder, the entity represented by the bidder,
  and any person acting for the represented entity only if:
               (1)  the comptroller [commission] or other state agency
  has adopted a written definition and criteria for accurately
  determining the safety record of a bidder; and
               (2)  the comptroller [commission] or state agency
  provided notice in the bid specifications to prospective bidders
  that a bidder's safety record may be considered in determining the
  bidder offering the best value for the state.
         (d)  In determining the bidder offering the best value, in
  addition to price the comptroller [commission] or other state
  agency shall consider:
               (1)  the quality and availability of the goods or
  contractual services and their adaptability to the use required;
               (2)  the scope of conditions attached to the bid;
               (3)  the bidder's ability, capacity, and skill to
  perform the contract or provide the service required;
               (4)  the bidder's ability to perform the contract or
  provide the service promptly, or in the time required, without
  delay or interference;
               (5)  the bidder's character, responsibility,
  integrity, and experience or demonstrated capability;
               (6)  the quality of performance of previous contracts
  or services;
               (7)  the bidder's previous and existing compliance with
  laws relating to the contract or service;
               (8)  the bidder's previous or existing noncompliance
  with specification requirements relating to the time of submission
  of specified information, including samples, models, drawings, or
  certificates;
               (9)  the sufficiency of the bidder's financial
  resources and ability to perform the contract or provide the
  service; and
               (10)  the bidder's ability to provide future
  maintenance, repair parts, and service for the use of the
  contract's subject.
         SECTION 63.  Sections 2156.008, 2156.009, and 2156.010,
  Government Code, are amended to read as follows:
         Sec. 2156.008.  REJECTION OF BIDS. (a) The comptroller
  [commission] or other state agency making the purchase shall reject
  a bid in which there is a material failure to comply with
  specification requirements.
         (b)  The comptroller [commission] or other state agency may
  reject all bids or parts of bids if the rejection serves the state's
  interest.
         Sec. 2156.009.  REASONS FOR AWARD. On award of a contract,
  the division of the comptroller [commission] responsible for
  purchasing or the state agency making the purchase shall prepare
  and file with other records relating to the transaction a statement
  of the reasons for making the award to the successful bidder and the
  factors considered in determining which bidder offered the best
  value for the state.
         Sec. 2156.010.  TIE BIDS. In the case of tie bids, the value
  and cost to the state being equal, a contract shall be awarded under
  comptroller [commission] rules.
         SECTION 64.  Sections 2156.011(a), (b), and (d), Government
  Code, are amended to read as follows:
         (a)  The comptroller [commission] may require a performance
  bond before executing a contract.
         (b)  The comptroller [commission] may require the bond in an
  amount that the comptroller [commission] finds reasonable and
  necessary to protect the state's interests.
         (d)  Any bond required shall be filed with the comptroller
  [commission].
         SECTION 65.  Section 2156.061, Government Code, is amended
  to read as follows:
         Sec. 2156.061.  USE OF OPEN MARKET PURCHASE PROCEDURE
  [AUTHORIZED; USE OF PROCEDURE]. On a comptroller [commission]
  determination that a purchase of goods or services may be made most
  effectively in the open market, the comptroller [commission] may
  use the open market purchase procedure and the purchase may be made
  without newspaper advertising.
         SECTION 66.  Sections 2156.064(a) and (b), Government Code,
  are amended to read as follows:
         (a)  The comptroller [commission] shall keep a record of all
  open market orders and bids submitted on the orders.
         (b)  A tabulation of the bids shall be open for public
  inspection, under rules established by the comptroller
  [commission].
         SECTION 67.  Sections 2156.065, 2156.066, 2156.121,
  2156.122, 2156.123, 2156.124, 2156.125, and 2156.126, Government
  Code, are amended to read as follows:
         Sec. 2156.065.  AGENCY REVIEW OF BIDS. (a) On the request
  of a state agency to review the bids on a purchase administered by
  the comptroller [commission], the comptroller [commission] shall
  send or make available to the requesting agency copies of each bid
  received and the comptroller's [commission's] recommended award.
         (b)  If, after review of the bids and evaluation of the
  quality of goods or services offered in the bids, the state agency
  determines that the bid selected by the comptroller [commission]
  does not offer the best value for the state, the agency may file
  with the comptroller [commission] a written recommendation that the
  award be made to the bidder who, according to the agency's
  determination, offers the best value for the state. The agency
  recommendation must include a justification of the agency's
  determination.
         (c)  The comptroller [commission] shall consider, but is not
  bound by, the agency recommendation in making the award.
         Sec. 2156.066.  STATEMENT OF REASONS FOR AWARD. The
  division of the comptroller [commission] responsible for
  purchasing or the state agency making a purchase shall prepare and
  file with other records relating to a transaction under this
  subchapter a statement of the reasons for placing an order with a
  successful bidder for the transaction and the factors considered in
  determining the bid offering the best value for the state.
         Sec. 2156.121.  USE OF COMPETITIVE SEALED PROPOSALS. (a)
  The comptroller [commission] or other state agency may follow a
  procedure using competitive sealed proposals to acquire goods or
  services if the comptroller [commission] determines that
  competitive sealed bidding and informal competitive bidding for the
  purchase or type of purchase are not practical or are
  disadvantageous to the state.
         (b)  A state agency shall send its proposal specifications
  and criteria to the comptroller [commission] for approval or
  request the comptroller [commission] to develop the proposal
  specifications and criteria.
         (c)  The comptroller [commission] shall determine whether to
  delegate sole oversight of the acquisition to a state agency or to
  retain oversight of the procurement.
         Sec. 2156.122.  SOLICITATION OF PROPOSALS. The comptroller
  [commission] or other state agency shall:
               (1)  solicit proposals under this subchapter by a
  request for proposals; and
               (2)  give public notice of a request for proposals in
  the manner provided for requests for bids under Subchapter B.
         Sec. 2156.123.  OPENING AND FILING OF PROPOSALS; PUBLIC
  INSPECTION. (a) The comptroller [commission] or other state
  agency shall avoid disclosing the contents of each proposal on
  opening the proposal and during negotiations with competing
  offerors.
         (b)  The comptroller [commission] or other state agency
  shall file each proposal in a register of proposals, which, after a
  contract is awarded, is open for public inspection unless the
  register contains information that is excepted from required
  disclosure under Subchapter C, Chapter 552.
         Sec. 2156.124.  DISCUSSION AND REVISION OF PROPOSALS. (a)
  As provided in a request for proposals and under rules adopted by
  the comptroller [commission], the comptroller [commission] or
  other state agency may discuss acceptable or potentially acceptable
  proposals with offerors to assess an offeror's ability to meet the
  solicitation requirements. When the comptroller [commission] is
  managing the request for proposals process, it shall invite a
  requisitioning agency to participate in discussions conducted
  under this section.
         (b)  After receiving a proposal but before making an award,
  the comptroller [commission] or other state agency may permit the
  offeror to revise the proposal to obtain the best final offer.
         (c)  The comptroller [commission] or other state agency may
  not disclose information derived from proposals submitted from
  competing offerors in conducting discussions under this section.
         (d)  The comptroller [commission] or other state agency
  shall provide each offeror an equal opportunity to discuss and
  revise proposals.
         Sec. 2156.125.  CONTRACT AWARD. (a) The comptroller
  [commission] or other state agency shall make a written award of a
  contract to the offeror whose proposal offers the best value for the
  state, considering price, past vendor performance, vendor
  experience or demonstrated capability, and the evaluation factors
  in the request for proposals.
         (b)  The comptroller [commission] or other state agency
  shall refuse all offers if none of the offers submitted is
  acceptable.
         (c)  The comptroller [commission] or other state agency
  shall determine which proposal offers the best value for the state
  in accordance with Sections 2155.074 and 2155.075.
         (d)  The comptroller [commission] or other state agency
  shall state in writing in the contract file the reasons for making
  an award.
         Sec. 2156.126.  ADOPTION OF RULES; STATE AGENCY ASSISTANCE.
  The comptroller [commission] may adopt rules and request assistance
  from other state agencies to perform its responsibilities under
  this subchapter.
         SECTION 68.  Sections 2156.181(a) and (b), Government Code,
  are amended to read as follows:
         (a)  The comptroller [commission] may enter into one or more
  compacts, interagency agreements, or cooperative purchasing
  agreements directly with one or more state governments, agencies of
  other states, or other governmental entities or may participate in,
  sponsor, or administer a cooperative purchasing agreement through
  an entity that facilitates those agreements for the purchase of
  goods or services if the comptroller [commission] determines that
  the agreement would be in the best interest of the state.
         (b)  The comptroller [commission] may adopt rules to
  implement this section.
         SECTION 69.  Section 2157.001(1), Government Code, is
  amended to read as follows:
               (1)  "Automated information system" includes:
                     (A)  the computers and computer devices on which
  an information system is automated, including computers and
  computer devices that the comptroller [commission] identifies in
  guidelines developed by the comptroller [commission] in
  consultation with the department and in accordance with Chapter
  2054 and rules adopted under that chapter;
                     (B)  a service related to the automation of an
  information system, including computer software or computers;
                     (C)  a telecommunications apparatus or device
  that serves as a component of a voice, data, or video communications
  network for transmitting, switching, routing, multiplexing,
  modulating, amplifying, or receiving signals on the network, and
  services related to telecommunications that are not covered under
  Paragraph (D); and
                     (D)  for the department, as telecommunications
  provider for the state, the term includes any service provided by a
  telecommunications provider, as that term is defined by Section
  51.002, Utilities Code.
         SECTION 70.  Sections 2157.0011 and 2157.003, Government
  Code, are amended to read as follows:
         Sec. 2157.0011.  COMPTROLLER POWERS AND [TRANSFER OF]
  DUTIES[; REFERENCE]. [(a)] The comptroller has under this chapter
  the powers and duties described by Section 2151.004(d) [of the
  commission under this chapter are transferred to the comptroller].
         [(b)     In this chapter, a reference to the commission means
  the comptroller.]
         Sec. 2157.003.  DETERMINING BEST VALUE FOR PURCHASES OF
  AUTOMATED INFORMATION SYSTEMS. "Best value" for purposes of this
  chapter means the lowest overall cost of an automated information
  system.  In determining the lowest overall cost for a purchase or
  lease of an automated information system under this chapter, the
  comptroller [commission] or a state agency shall consider factors
  including:
               (1)  the purchase price;
               (2)  the compatibility to facilitate the exchange of
  existing data;
               (3)  the capacity for expanding and upgrading to more
  advanced levels of technology;
               (4)  quantitative reliability factors;
               (5)  the level of training required to bring persons
  using the system to a stated level of proficiency;
               (6)  the technical support requirements for the
  maintenance of data across a network platform and the management of
  the network's hardware and software;
               (7)  the compliance with applicable department
  statewide standards validated by criteria adopted by the department
  by rule; and
               (8)  applicable factors listed in Sections 2155.074 and
  2155.075.
         SECTION 71.  Sections 2157.006(a) and (c), Government Code,
  are amended to read as follows:
         (a)  The comptroller [commission] or other state agency
  shall purchase an automated information system using:
               (1)  the purchasing method described by Section
  2157.068 for commodity items; or
               (2)  a purchasing method designated by the comptroller
  [commission] to obtain the best value for the state, including a
  request for offers method.
         (c)  The comptroller [commission] shall adopt rules for
  designating purchasing methods under Subsection (a)(2).
         SECTION 72.  Section 2157.068(i), Government Code, is
  amended to read as follows:
         (i)  Unless the agency has express statutory authority to
  employ a best value purchasing method other than a purchasing
  method designated by the comptroller [commission] under Section
  2157.006(a)(2), a state agency shall use a purchasing method
  provided by Section 2157.006(a) when purchasing a commodity item
  if:
               (1)  the agency has obtained an exemption from the
  department or approval from the Legislative Budget Board under
  Subsection (f); or
               (2)  the agency is otherwise exempt from this section.
         SECTION 73.  Sections 2157.121, 2157.122, 2157.123,
  2157.124, 2157.125, and 2157.126, Government Code, are amended to
  read as follows:
         Sec. 2157.121.  ACQUISITION THROUGH COMPETITIVE SEALED
  PROPOSALS. (a) The comptroller [commission] or other state agency
  may acquire a telecommunications device, system, or service or an
  automated information system by using competitive sealed proposals
  if the comptroller [commission] determines that competitive sealed
  bidding and informal competitive bidding are not practical or are
  disadvantageous to the state.
         (b)  A state agency, other than the department, shall send
  its proposal specifications and criteria to the comptroller
  [commission] for approval or request the comptroller [commission]
  to develop the proposal specifications and criteria.
         (c)  The department may acquire a telecommunications device,
  system, or service or an automated information system by using
  competitive sealed proposals without regard to whether the
  comptroller [commission] makes the determination required under
  Subsection (a) for other state agencies.
         Sec. 2157.122.  SOLICITATION OF PROPOSALS; PUBLIC NOTICE.
  The comptroller [commission] or other state agency shall:
               (1)  solicit proposals under this subchapter by a
  request for proposals; and
               (2)  give public notice of the request in the manner
  provided for requests for bids under Subchapter B, Chapter 2156.
         Sec. 2157.123.  OPENING AND FILING PROPOSALS; PUBLIC
  INSPECTION. (a) The comptroller [commission] or other state
  agency shall avoid disclosing the contents of each proposal on
  opening the proposal and during negotiations with competing
  offerors.
         (b)  The comptroller [commission] or other state agency
  shall file each proposal in a register of proposals, which, after a
  contract is awarded, is open for public inspection unless the
  register contains information that is excepted from required
  disclosure under Subchapter C, Chapter 552.
         Sec. 2157.124.  DISCUSSION AND REVISION OF PROPOSAL. (a) As
  provided by a request for proposals and under comptroller
  [commission] rules, the comptroller [commission] or other state
  agency may discuss an acceptable or potentially acceptable proposal
  with an offeror to assess the offeror's ability to meet the
  solicitation requirements. When the comptroller [commission] is
  managing the request for proposals process, it shall invite a
  requisitioning agency to participate in discussions conducted
  under this section.
         (b)  After receiving a proposal but before making an award,
  the comptroller [commission] or other state agency may permit an
  offeror to revise a proposal to obtain the best final offer.
         (c)  The comptroller [commission] or other state agency may
  not disclose information derived from a proposal submitted by a
  competing offeror in conducting discussions under this section.
         (d)  The comptroller [commission] or other state agency
  shall provide each offeror an equal opportunity to discuss and
  revise proposals.
         Sec. 2157.125.  CONTRACT AWARD; FACTORS CONSIDERED. (a)
  The comptroller [commission] or other state agency shall make a
  written award of a purchase or lease to the offeror whose proposal
  under this subchapter offers the best value for the state,
  considering price, past vendor performance, vendor experience or
  demonstrated capability, and the evaluation factors in the request
  for proposals.
         (b)  The comptroller [commission] or other state agency
  shall refuse all offers if no offer submitted is acceptable.
         (c)  In determining which proposal under this subchapter
  offers the best value for the state, the comptroller [commission]
  or other state agency shall, when applicable and subject to
  Sections 2155.074 and 2155.075, consider factors including:
               (1)  the installation cost;
               (2)  the overall life of the system or equipment;
               (3)  the cost of acquisition, operation, and
  maintenance of hardware included with, associated with, or required
  for the system or equipment during the state's ownership or lease;
               (4)  the cost of acquisition, operation, and
  maintenance of software included with, associated with, or required
  for the system or equipment during the state's ownership or lease;
               (5)  the estimated cost of other supplies needed
  because of the acquisition;
               (6)  the estimated cost of employee training needed
  because of the acquisition;
               (7)  the estimated cost of necessary additional
  permanent employees because of the acquisition; and
               (8)  the estimated increase in employee productivity
  because of the acquisition.
         (d)  The comptroller [commission] or other state agency
  shall state in writing in the contract file the reasons for making
  an award.
         Sec. 2157.126.  RULES. The comptroller [commission] shall
  adopt rules necessary or convenient to perform its responsibilities
  regarding requests for proposals under this subchapter and shall
  request assistance from other state agencies as needed.
         SECTION 74.  Sections 2157.181, 2157.182, and 2157.184,
  Government Code, are amended to read as follows:
         Sec. 2157.181.  PREAPPROVED CONTRACT TERMS AND CONDITIONS.
  (a) The comptroller [commission], with the concurrence of the
  department, may negotiate with vendors preapproved terms and
  conditions to be included in contracts relating to the purchase or
  lease of a telecommunication device, system, or service or an
  automated information system awarded to a vendor by a state agency.
         (b)  The comptroller [commission] and the department must
  agree to the wording of preapproved terms and conditions negotiated
  with a vendor.
         Sec. 2157.182.  VALIDITY OF PREAPPROVED TERMS AND
  CONDITIONS; RENEGOTIATION. (a) Preapproved terms and conditions
  to which a vendor, the comptroller [commission], and the department
  agree are valid for two years after the date of the agreement and
  must provide that the terms and conditions are to be renegotiated
  before the end of the two years.
         (b)  The comptroller [commission] and the department jointly
  shall establish procedures to ensure that terms and conditions are
  renegotiated before they expire in a contract between the vendor
  and a state agency.
         Sec. 2157.184.  NOTIFICATION OF STATE AGENCIES AND VENDORS.
  The comptroller [commission] and the department jointly shall
  establish procedures to notify state agencies and potential vendors
  of the provisions of this subchapter regarding preapproved terms
  and conditions.
         SECTION 75.  Section 2158.0011, Government Code, is amended
  to read as follows:
         Sec. 2158.0011.  COMPTROLLER POWERS AND [TRANSFER OF]
  DUTIES[; REFERENCE]. [(a)] The comptroller has under this chapter
  the powers and duties described by Section 2151.004(d) [of the
  commission under this chapter are transferred to the comptroller].
         [(b)     In this chapter, a reference to the commission means
  the comptroller.]
         SECTION 76.  Section 2158.004(d), Government Code, is
  amended to read as follows:
         (d)  The comptroller [commission] may waive the requirements
  of this section for a state agency on receipt of certification
  supported by evidence acceptable to the comptroller [commission]
  that:
               (1)  the agency's vehicles will be operating primarily
  in an area in which neither the agency nor a supplier has or can
  reasonably be expected to establish adequate refueling for
  compressed natural gas, liquefied natural gas, liquefied petroleum
  gas, methanol or methanol/gasoline blends of 85 percent or greater,
  ethanol or ethanol/gasoline blends of 85 percent or greater,
  biodiesel or biodiesel/diesel blends of 20 percent or greater, or
  electricity, including electricity to power a plug-in hybrid motor
  vehicle; or
               (2)  the agency is unable to obtain equipment or
  refueling facilities necessary to operate vehicles using
  compressed natural gas, liquefied natural gas, liquefied petroleum
  gas, methanol or methanol/gasoline blends of 85 percent or greater,
  ethanol or ethanol/gasoline blends of 85 percent or greater,
  biodiesel or biodiesel/diesel blends of 20 percent or greater, or
  electricity, including electricity to power a plug-in hybrid motor
  vehicle, at a projected cost that is reasonably expected to be no
  greater than the net costs of continued use of conventional
  gasoline or diesel fuels, measured over the expected useful life of
  the equipment or facilities supplied.
         SECTION 77.  Sections 2158.006 and 2158.007, Government
  Code, are amended to read as follows:
         Sec. 2158.006.  DETERMINATION OF ALTERNATIVE FUELS PROGRAM
  PARAMETERS. In developing the use of compressed natural gas,
  liquefied natural gas, liquefied petroleum gas, methanol or
  methanol/gasoline blends of 85 percent or greater, ethanol or
  ethanol/gasoline blends of 85 percent or greater, biodiesel or
  biodiesel/diesel blends of 20 percent or greater, or electricity,
  including electricity to power a plug-in hybrid motor vehicle, the
  comptroller [commission] should work with state agency fleet
  operators, vehicle manufacturers and converters, fuel
  distributors, and others to determine the vehicles to be covered,
  taking into consideration:
               (1)  range;
               (2)  specialty uses;
               (3)  fuel availability;
               (4)  vehicle manufacturing and conversion capability;
               (5)  safety;
               (6)  resale values; and
               (7)  other relevant factors.
         Sec. 2158.007.  COMPLIANCE WITH APPLICABLE SAFETY
  STANDARDS. In purchasing, leasing, maintaining, or converting
  vehicles for use with compressed natural gas, liquefied natural
  gas, liquefied petroleum gas, methanol or methanol/gasoline blends
  of 85 percent or greater, ethanol or ethanol/gasoline blends of 85
  percent or greater, biodiesel or biodiesel/diesel blends of 20
  percent or greater, or electricity, including electricity to power
  a plug-in hybrid motor vehicle, the comptroller [commission] shall
  comply with all applicable safety standards adopted by the United
  States Department of Transportation and the Railroad Commission of
  Texas.
         SECTION 78.  Section 2158.122(a), Government Code, is
  amended to read as follows:
         (a)  On consent of the comptroller [commission] and the
  governor, a person may print extra copies of matter printed under a
  state contract and sell the copies at a price fixed by the
  comptroller [commission] if in the opinion of the comptroller
  [commission] and the governor the printed matter should be
  distributed in this manner for the benefit of the public.
         SECTION 79.  Sections 2158.181 and 2158.241, Government
  Code, are amended to read as follows:
         Sec. 2158.181.  SAFETY STANDARDS FOR ELECTRICAL ITEMS. The
  comptroller [commission] or another state agency may not purchase
  an electrical item unless the item meets applicable safety
  standards of the federal Occupational Safety and Health
  Administration.
         Sec. 2158.241.  INTERSTATE COMPACTS AND COOPERATIVE
  AGREEMENTS FOR PROCURING RECYCLED PRODUCTS. The comptroller
  [commission] may enter into compacts and cooperative agreements
  with other states and government entities for procuring products
  made of recycled materials when the comptroller [commission]
  determines it is in the best interest of the state.
         SECTION 80.  Section 2158.301, Government Code, as added by
  Chapter 262 (S.B. 12), Acts of the 80th Legislature, Regular
  Session, 2007, is amended to read as follows:
         Sec. 2158.301.  ENERGY CONSERVATION. If available and cost
  effective, the comptroller [commission] or another state agency
  shall purchase equipment and appliances for state use that meet or
  exceed the federal Energy Star standards designated by the United
  States Environmental Protection Agency and the United States
  Department of Energy.
         SECTION 81.  Sections 2161.0011, 2161.0015, 2161.002, and
  2161.003, Government Code, are amended to read as follows:
         Sec. 2161.0011.  COMPTROLLER POWERS AND [TRANSFER OF]
  DUTIES[; REFERENCE]. [(a)] The comptroller has under this chapter
  the powers and duties described by Section 2151.004(d) [of the
  commission under this chapter are transferred to the comptroller].
         [(b)     In this chapter, a reference to the commission means
  the comptroller.]
         Sec. 2161.0015.  DETERMINING SIZE STANDARDS FOR
  HISTORICALLY UNDERUTILIZED BUSINESSES. The comptroller
  [commission] may establish size standards that a business may not
  exceed if it is to be considered a historically underutilized
  business under this chapter. In determining the size standards,
  the comptroller [commission] shall determine the size at which a
  business should be considered sufficiently large that the business
  probably does not significantly suffer from the effects of past
  discriminatory practices.
         Sec. 2161.002.  [COMMISSION] ADMINISTRATION; RULES
  [COMPTROLLER ASSISTANCE]. (a) To administer Subchapters B and C,
  the comptroller [commission] may:
               (1)  require information from a state agency; and
               (2)  adopt rules.
         (c)  In adopting rules to administer this chapter, the
  comptroller [commission] shall adopt rules that are based on the
  results of the "State of Texas Disparity Study, A Report to the
  Texas Legislature as Mandated by H.B. 2626, 73rd Legislature,
  December 1994" (prepared by National Economic Research Associates,
  Inc.). The comptroller [commission] shall revise the rules in
  response to the findings of any updates of the study that are
  prepared on behalf of the state.
         (d)  The comptroller shall adopt rules to provide goals for
  increasing the contract awards for the purchase of goods or
  services by the comptroller [commission] and other state agencies
  to businesses that qualify as historically underutilized
  businesses because the businesses are owned or owned, operated, and
  controlled, as applicable, wholly or partly by one or more veterans
  as defined by 38 U.S.C. Section 101(2) who have a service-connected
  disability as defined by 38 U.S.C. Section 101(16). The goals
  established under this subsection are in addition to the goals
  established under Subsection (c) and the goals established under
  Subsection (c) may not be reduced as a result of the establishment
  of goals under this subsection.
         Sec. 2161.003.  AGENCY RULES. A state agency, including an
  institution of higher education, shall adopt the comptroller's
  [commission's] rules under Section 2161.002 as the agency's or
  institution's own rules. Those rules apply to the agency's
  construction projects and purchases of goods and services paid for
  with appropriated money without regard to whether a project or
  purchase is otherwise subject to this subtitle.
         SECTION 82.  Section 2161.004(a), Government Code, is
  amended to read as follows:
         (a)  This chapter and rules adopted by the comptroller
  [commission] under this chapter apply to state agency construction
  projects and purchases of goods and services that are paid for with
  appropriated money and made under the authority of this subtitle or
  other law.
         SECTION 83.  Section 2161.005, Government Code, is amended
  to read as follows:
         Sec. 2161.005.  TRANSFER OF FUNDS FOR PURCHASING. If the
  state auditor reports to the comptroller [commission] under Section
  2161.123(d) that a state agency is not complying with Section
  2161.123, the comptroller [commission] shall report that fact to
  the Legislative Budget Board. If the Legislative Budget Board
  determines that, one year after the date of the state auditor's
  report to the comptroller [commission], the agency is still not
  complying with Section 2161.123, the budget board may, under
  Section 69, Article XVI, Texas Constitution, direct the emergency
  transfer of the agency's appropriated funds for making purchases
  under purchasing authority delegated under Section 2155.131 [or
  2155.133] to the appropriate state agency. The amount transferred
  from the agency's funds to the appropriate agency shall be an amount
  determined by the Legislative Budget Board.
         SECTION 84.  The heading to Subchapter B, Chapter 2161,
  Government Code, is amended to read as follows:
  SUBCHAPTER B. GENERAL POWERS AND DUTIES [OF COMMISSION]
         SECTION 85.  The heading to Section 2161.061, Government
  Code, is amended to read as follows:
         Sec. 2161.061.  [COMMISSION] CERTIFICATION OF HISTORICALLY
  UNDERUTILIZED BUSINESSES.
         SECTION 86.  Sections 2161.061(a), (b), (c), and (d),
  Government Code, are amended to read as follows:
         (a)  The comptroller [commission] shall certify historically
  underutilized businesses.
         (b)  As one of its certification procedures, the comptroller
  [commission] may:
               (1)  approve the certification program of one or more
  local governments or nonprofit organizations in this state that
  certify historically underutilized businesses, minority business
  enterprises, women's business enterprises, or disadvantaged
  business enterprises under substantially the same definition, to
  the extent applicable, used by Section 2161.001, if the local
  government or nonprofit organization meets or exceeds the standards
  established by the comptroller [commission]; and
               (2)  certify a business that is certified by a local
  government or by a nonprofit organization as a historically
  underutilized business under this chapter.
         (c)  To maximize the number of certified historically
  underutilized businesses, the comptroller [commission] shall enter
  into agreements with local governments in this state that conduct
  certification programs described by Subsection (b) and with
  nonprofit organizations. The comptroller [commission] may
  terminate an agreement if a local government or nonprofit
  organization fails to meet the standards established by the
  comptroller [commission] for certifying historically underutilized
  businesses. The agreements must take effect immediately and:
               (1)  allow for automatic certification of businesses
  certified by the local government or nonprofit organization;
               (2)  provide for the efficient updating of the
  comptroller [commission] database containing information about
  historically underutilized businesses and potential historically
  underutilized businesses; and
               (3)  provide for a method by which the comptroller
  [commission] may efficiently communicate with businesses certified
  by the local government or nonprofit organization and provide those
  businesses with information about the state historically
  underutilized business program.
         (d)  A local government or a nonprofit organization that
  certifies historically underutilized businesses, minority business
  enterprises, women's business enterprises, or disadvantaged
  business enterprises as described in Subsections (b) and (c) shall
  complete the certification of an applicant or provide an applicant
  with written justification of its certification denial within the
  period established by the comptroller [commission] in its rules for
  certification activities.
         SECTION 87.  Sections 2161.062, 2161.063, and 2161.064,
  Government Code, are amended to read as follows:
         Sec. 2161.062.  ASSISTANCE TO HISTORICALLY UNDERUTILIZED
  BUSINESSES. (a) The comptroller [commission] shall seek the
  advice of the governor, legislature, and state agencies in
  identifying and developing opportunities for historically
  underutilized businesses.
         (b)  The comptroller [commission] shall offer historically
  underutilized businesses assistance and training regarding state
  procurement procedures.
         (c)  The comptroller [commission] shall advise historically
  underutilized businesses of available state contracts and shall
  advise historically underutilized businesses to apply for
  registration on the comptroller's [commission's] master bidders
  list.
         (d)  The comptroller [commission] shall send historically
  underutilized businesses an orientation package on certification
  or recertification. The package shall include:
               (1)  a certificate issued in the historically
  underutilized business's name;
               (2)  a description of the significance and value of
  certification;
               (3)  a list of state purchasing personnel;
               (4)  information regarding electronic commerce
  opportunities;
               (5)  information regarding the Texas Marketplace
  website; and
               (6)  additional information about the state
  procurement process.
         (e)  A state agency with a biennial budget that exceeds $10
  million shall designate a staff member to serve as the historically
  underutilized businesses coordinator for the agency during the
  fiscal year. The procurement director may serve as the
  coordinator. In agencies that employ a historically underutilized
  businesses coordinator, the position of coordinator, within the
  agency's structure, must be at least equal to the position of
  procurement director. In addition to any other responsibilities,
  the coordinator shall:
               (1)  coordinate training programs for the recruitment
  and retention of historically underutilized businesses;
               (2)  report required information to the comptroller
  [commission]; and
               (3)  match historically underutilized businesses with
  key staff within the agency.
         Sec. 2161.063.  ASSISTING STATE AGENCIES. (a) The
  comptroller [commission] shall encourage state agencies to use
  historically underutilized businesses by:
               (1)  working with state agencies to establish a
  statewide policy for increasing the use of historically
  underutilized businesses;
               (2)  assisting state agencies in seeking historically
  underutilized businesses capable of supplying required goods or
  services;
               (3)  assisting state agencies in identifying and
  advising historically underutilized businesses on the types of
  goods and services the agencies need; and
               (4)  assisting state agencies in increasing the amount
  of business placed with historically underutilized businesses.
         (b)  The comptroller [commission] shall assist the Texas
  Department of Economic Development in performing the department's
  duties under Section 481.0068.
         Sec. 2161.064.  DIRECTORY. (a) The comptroller
  [commission] shall compile, in the most cost-efficient form, a
  directory of businesses certified as historically underutilized
  businesses under Section 2161.061.
         (b)  The comptroller [commission] at least semiannually
  shall update the directory and provide access to the directory
  electronically or in another form to each state agency.
         (c)  Depending on the needs of a state agency, the
  comptroller [commission] shall provide access to the directory
  electronically or in another form.
         (d)  The comptroller [commission] shall provide a copy of the
  directory to every municipality in January and July of each year.
  On request, the comptroller [commission] shall make the directory
  available to other local governments and the public.
         (e)  A state agency, including the comptroller [commission],
  shall use the directory in determining awards of state purchasing
  and public works contracts.
         SECTION 88.  Section 2161.065(a), Government Code, is
  amended to read as follows:
         (a)  The comptroller [commission] shall design a
  mentor-protege program to foster long-term relationships between
  prime contractors and historically underutilized businesses and to
  increase the ability of historically underutilized businesses to
  contract with the state or to receive subcontracts under a state
  contract. Each state agency with a biennial appropriation that
  exceeds $10 million shall implement the program designed by the
  comptroller [commission].
         SECTION 89.  Sections 2161.066(a), (d), and (e), Government
  Code, are amended to read as follows:
         (a)  The comptroller [commission] shall design a program of
  forums in which historically underutilized businesses are invited
  by state agencies to deliver technical and business presentations
  that demonstrate their capability to do business with the agency:
               (1)  to senior managers and procurement personnel at
  state agencies that acquire goods and services of a type supplied by
  the historically underutilized businesses; and
               (2)  to contractors with the state who may be
  subcontracting for goods and services of a type supplied by the
  historically underutilized businesses.
         (d)  Each state agency that has a historically underutilized
  businesses coordinator shall:
               (1)  design its own program and model the program to the
  extent appropriate on the program developed by the comptroller
  [commission] under this section; and
               (2)  sponsor presentations by historically
  underutilized businesses at the agency.
         (e)  The comptroller [commission] and each state agency that
  has a historically underutilized businesses coordinator shall
  aggressively identify and notify individual historically
  underutilized businesses regarding opportunities to make a
  presentation regarding the types of goods and services supplied by
  the historically underutilized business and shall advertise in
  appropriate trade publications that target historically
  underutilized businesses regarding opportunities to make a
  presentation.
         SECTION 90.  Section 2161.121, Government Code, as amended
  by Chapters 48 (H.B. 2472) and 1312 (S.B. 59), Acts of the 83rd
  Legislature, Regular Session, 2013, is reenacted and amended to
  read as follows:
         Sec. 2161.121.  [COMMISSION] REPORT OF CONTRACTS AWARDED TO
  HISTORICALLY UNDERUTILIZED BUSINESSES. (a) The comptroller
  [commission] shall prepare a consolidated report that:
               (1)  includes the number and dollar amount of contracts
  awarded and paid to historically underutilized businesses
  certified by the comptroller [commission];
               (2)  analyzes the relative level of opportunity for
  historically underutilized businesses for various categories of
  acquired goods and services; and
               (3)  tracks, by vendor identification number and, to
  the extent allowed by federal law, by social security number, the
  graduation rates for historically underutilized businesses that
  grew to exceed the size standards determined by the comptroller
  [commission].
         (b)  Each state agency shall send to the comptroller
  [commission] information required by Section 2161.122 and other
  information required by the comptroller [commission] for the
  preparation of the comptroller's [commission's] report not later
  than March 15 and September 15 of each year.
         (c)  The comptroller [commission] shall base its report on
  the compilation and analysis of reports received under Subsection
  (b) and other information maintained or received by [from] the
  comptroller.
         (d)  The comptroller [commission] shall send to the
  presiding officer of each house of the legislature:
               (1)  on May 15 of each year, a report on the previous
  six-month period; and
               (2)  on November 15 of each year, a report on the
  preceding fiscal year.
         SECTION 91.  Sections 2161.122(c), (d), and (e), Government
  Code, are amended to read as follows:
         (c)  Each state agency shall report to the comptroller
  [commission] in accordance with Section 2161.125 the following
  information with regard to the expenditure of both treasury and
  nontreasury funds:
               (1)  the total dollar amount of purchases and payments
  made under contracts awarded to historically underutilized
  businesses;
               (2)  the number of businesses participating in any
  issuance of state bonds by the agency;
               (3)  the number of contracts awarded to businesses with
  regard to the agency's acquisition, construction, or equipping of a
  facility or implementation of a program; and
               (4)  the number of bids, proposals, or other applicable
  expressions of interest made by historically underutilized
  businesses with regard to the agency's acquisition, construction,
  or equipping of a facility or implementation of a program.
         (d)  A state agency participating in a group purchasing
  program shall send to the comptroller [commission] in the agency's
  report under Section 2161.121 a separate list of purchases from
  historically underutilized businesses that are made through the
  group purchasing program, including the dollar amount of each
  purchase allocated to the reporting agency.
         (e)  A state agency's report is a record of the agency's
  purchases for which the agency selected the vendor. If the vendor
  was selected by the comptroller [commission] as part of its state
  contract program, the comptroller [commission] shall include the
  purchase in the comptroller's [commission's] report of its own
  purchases unless the comptroller [commission] made a sole source
  purchase for the agency under Section 2155.067. The state agency
  for which the purchase was made shall report the selection of the
  vendor on its report as if the agency selected the vendor when the
  agency drew specifications for goods or services that are
  proprietary to one vendor.
         SECTION 92.  Sections 2161.123(a), (c), (d), and (f),
  Government Code, are amended to read as follows:
         (a)  Each state agency, including the comptroller
  [commission], that is required to have a strategic plan under
  Chapter 2056 shall include in its strategic plan a written plan for
  increasing the agency's use of historically underutilized
  businesses in purchasing and public works contracting. The
  governing board of each university system or institution of higher
  education not included in a university system, other than a public
  junior college, shall prepare a written plan for increasing the use
  of historically underutilized businesses in purchasing and public
  works contracting by the system or institution.
         (c)  On request, the comptroller [commission] shall provide
  technical assistance to a state agency that is preparing its plan.
         (d)  The comptroller [commission] and the state auditor
  shall cooperate to develop procedures providing for random periodic
  monitoring of state agency compliance with this section.  The state
  auditor shall report to the comptroller [commission] a state agency
  that is not complying with this section.  In determining whether a
  state agency is making a good faith effort to comply, the state
  auditor shall consider whether the agency:
               (1)  has adopted rules under Section 2161.003;
               (2)  has used the comptroller's [commission's]
  directory under Section 2161.064 and other resources to identify
  historically underutilized businesses that are able and available
  to contract with the agency;
               (3)  made good faith, timely efforts to contact
  identified historically underutilized businesses regarding
  contracting opportunities;
               (4)  conducted its procurement program in accordance
  with the good faith effort methodology set out in comptroller
  [commission] rules; and
               (5)  established goals for contracting with
  historically underutilized businesses in each procurement category
  based on:
                     (A)  scheduled fiscal year expenditures; and
                     (B)  the availability of historically
  underutilized businesses in each category as determined by rules
  adopted under Section 2161.002.
         (f)  If the state auditor reports to the comptroller
  [commission] that a state agency is not complying with this
  section, the comptroller [commission] shall assist the agency in
  complying.
         SECTION 93.  Sections 2161.124(a) and (b), Government Code,
  are amended to read as follows:
         (a)  Each state agency, including the comptroller
  [commission], shall prepare a report for each fiscal year
  documenting progress under its plan for increasing use of
  historically underutilized businesses.
         (b)  The comptroller [commission] shall develop a standard
  form for the report.
         SECTION 94.  Section 2161.126, Government Code, is amended
  to read as follows:
         Sec. 2161.126.  EDUCATION AND OUTREACH [BY COMMISSION].  
  Before October 15 of each year, the comptroller [commission] shall
  report to the governor, the lieutenant governor, and the speaker of
  the house of representatives on the education and training efforts
  that the comptroller [commission] has made toward historically
  underutilized businesses.  The report must include the following as
  related to historically underutilized businesses:
               (1)  the comptroller's [commission's] vision, mission,
  and philosophy;
               (2)  marketing materials and other educational
  materials distributed by the comptroller [commission];
               (3)  the comptroller's [commission's] policy regarding
  education, outreach, and dissemination of information;
               (4)  goals that the comptroller [commission] has
  attained during the fiscal year;
               (5)  the comptroller's [commission's] goals,
  objectives, and expected outcome measures for each outreach and
  education event; and
               (6)  the comptroller's [commission's] planned future
  initiatives on education and outreach.
         SECTION 95.  Section 2161.127(a), Government Code, is
  amended to read as follows:
         (a)  Each state agency must include as part of its
  legislative appropriations request a detailed report for
  consideration by the budget committees of the legislature that
  shows the extent to which the agency complied with this chapter and
  rules of the comptroller [commission] adopted under this chapter
  during the two calendar years preceding the calendar year in which
  the request is submitted.  To the extent the state agency did not
  comply, the report must demonstrate the reasons for that fact.  The
  extent to which a state agency complies with this chapter and rules
  of the comptroller [commission] adopted under this chapter is
  considered a key performance measure for purposes of the
  appropriations process.
         SECTION 96.  Section 2161.181, Government Code, is amended
  to read as follows:
         Sec. 2161.181.  GOALS FOR PURCHASES OF GOODS AND SERVICES. A
  state agency, including the comptroller [commission], shall make a
  good faith effort to increase the contract awards for the purchase
  of goods or services that the agency expects to make during a fiscal
  year to historically underutilized businesses based on rules
  adopted by the comptroller [commission] to implement the disparity
  study described by Section 2161.002(c).
         SECTION 97.  Section 2161.182(a), Government Code, is
  amended to read as follows:
         (a)  A state agency that contracts for a construction
  project, including a project under Section 2166.003, shall make a
  good faith effort to increase the construction contract awards that
  the agency expects to make during a fiscal year to historically
  underutilized businesses based on rules adopted by the comptroller
  [commission] to implement the disparity study described by Section
  2161.002(c).
         SECTION 98.  Section 2161.183(a), Government Code, is
  amended to read as follows:
         (a)  Not later than the 60th day of its fiscal year, a state
  agency, including the comptroller [commission]:
               (1)  shall estimate the total value of contract awards
  the agency expects to make for that fiscal year that are subject to
  Section 2161.181; and
               (2)  shall estimate the total value of contract awards
  the agency expects to make for that fiscal year under Chapter 2166.
         SECTION 99.  Section 2161.253(e), Government Code, is
  amended to read as follows:
         (e)  The comptroller [commission] shall adopt rules to
  administer this subchapter.
         SECTION 100.  Sections 2163.001, 2163.0011, 2163.002,
  2163.003, and 2163.004, Government Code, are amended to read as
  follows:
         Sec. 2163.001.  REVIEW PROCESS. (a) The comptroller
  [commission] shall develop a systematic review process to identify
  commercially available services being performed by the comptroller
  [commission] and study the services to determine if they may be
  better provided by other state agency providers of the services or
  private commercial sources.
         (b)  In reviewing its services, the comptroller [commission]
  shall:
               (1)  determine whether competitive vendors exist in the
  private sector;
               (2)  compare the cost of contracting for the services
  from other state agency providers of the services or private
  commercial sources to the comptroller's [commission's] cost of
  performing the services; and
               (3)  document cost savings from contracting for the
  services from other state agency providers of the services or
  private commercial sources.
         (c)  Each commercially available service performed by the
  comptroller [commission] shall be reviewed at least once every six
  years.
         Sec. 2163.0011.  COMPTROLLER POWERS AND [TRANSFER OF]
  DUTIES[; REFERENCE]. [(a)] The comptroller has under this chapter
  the powers and duties described by Section 2151.004(d) [of the
  commission under this chapter are transferred to the comptroller].
         [(b)     In this chapter, a reference to the commission means
  the comptroller.]
         Sec. 2163.002.  COST COMPARISON AND CONTRACT
  CONSIDERATIONS. (a) The comptroller [commission] shall consider
  all of its direct and indirect costs in determining the cost of
  providing a service.
         (b)  In comparing the cost of providing a service, the
  comptroller [commission] must include the:
               (1)  cost of supervising the work of a private
  contractor; and
               (2)  cost to the state of the comptroller's
  [commission's] performance of the service, including:
                     (A)  the costs of the office of the attorney
  general and other support agencies; and
                     (B)  other indirect costs related to the
  comptroller's [commission's] performance of the service.
         Sec. 2163.003.  CONTRACTING WITH ANOTHER STATE AGENCY OR
  PRIVATE SOURCE. (a) If the comptroller [commission] determines
  that a service can be performed with a comparable or better level of
  quality at a savings to the state of at least 10 percent by using
  other state agency providers of the service or a private commercial
  source, the comptroller [commission] may contract with other state
  agency providers of the services or private commercial sources for
  the service.
         (b)  The comptroller [commission] maintains responsibility
  for providing a contracted service and shall set measurable
  performance standards for a contractor.
         Sec. 2163.004.  PROHIBITION. The comptroller [commission]
  may not begin providing a service the General Services Commission
  did not provide as of September 1, 2001, unless, after conducting an
  in-depth analysis on cost in accordance with Section 2163.002 and
  on availability of a service, the comptroller [commission]
  determines that it can perform the service at a higher level of
  quality or at a lower cost than other state agency providers of the
  service or private commercial sources.
         SECTION 101.  Sections 2171.001 and 2171.0011, Government
  Code, are amended to read as follows:
         Sec. 2171.001.  TRAVEL DIVISION. The travel division of the
  comptroller [commission] is composed of the central travel office
  and the office of vehicle fleet management.
         Sec. 2171.0011.  COMPTROLLER POWERS AND [TRANSFER OF]
  DUTIES[; REFERENCE]. [(a)] The comptroller has under this chapter
  the powers and duties described by Section 2151.004(d) [of the
  commission under this chapter are transferred to the comptroller].
         [(b)     In this chapter, a reference to the commission means
  the comptroller.]
         SECTION 102.  Section 2171.051(c), Government Code, is
  amended to read as follows:
         (c)  After approval by the comptroller [executive director],
  the central travel office shall designate state agencies that may
  use the services of the office. The comptroller [executive
  director] shall approve the use of those services by the designated
  state agencies after the director of the travel division certifies
  to the comptroller [executive director] that the central travel
  office is capable of providing those services.
         SECTION 103.  Sections 2171.052(c) and (d), Government Code,
  are amended to read as follows:
         (c)  The comptroller [commission] may make contracts with
  travel agents that meet certain reasonable requirements prescribed
  by the central travel office, with preference given to resident
  entities of this state.
         (d)  To the greatest extent possible, the comptroller
  [commission] shall use electronic means to solicit and receive bids
  under this section.
         SECTION 104.  Sections 2171.055(a), (b), (c), (d), (e), (f),
  (g), (h), and (j), Government Code, are amended to read as follows:
         (a)  State agencies in the executive branch of state
  government shall participate under comptroller [commission] rules
  in the comptroller's [commission's] contracts for travel services,
  provided that all travel agents approved by the comptroller
  [commission] are permitted to contract with the state and provide
  travel services to all state agencies.
         (b)  An institution of higher education as defined by Section
  61.003, Education Code, is not required to participate in the
  comptroller's [commission's] contracts for travel agency services
  or other travel services purchased from funds other than general
  revenue funds or educational and general funds as defined by
  Section 51.009, Education Code. The Employees Retirement System of
  Texas is not required to participate in the comptroller's
  [commission's] contracts for travel agency services or other travel
  services purchased from funds other than general revenue funds.
         (c)  The comptroller [commission] may provide by rule for
  exemptions from required participation.
         (d)  Agencies of the state that are not required to
  participate in comptroller [commission] contracts for travel
  services may participate as provided by Section 2171.051.
         (e)  A county officer or employee who is engaged in official
  county business may participate in the comptroller's [commission's]
  contract for travel services for the purpose of obtaining reduced
  airline fares and reduced travel agent fees. A county sheriff or
  deputy sheriff or juvenile probation officer who is transporting a
  state prisoner under a felony warrant may participate in the
  comptroller's [commission's] contract for travel services for
  purposes of obtaining reduced airline fares and reduced travel
  agent fees for the law enforcement or probation officer and the
  prisoner. The comptroller [commission] may charge a participating
  county a fee not to exceed the costs incurred by the comptroller
  [commission] in providing services under this subsection. The
  comptroller [commission] shall periodically review fees and shall
  adjust them as needed to ensure recovery of costs incurred in
  providing services to counties under this subsection. The
  comptroller [commission] shall deposit the fees collected under
  this subsection to the credit of the county airline fares account.
  The county airline fares account is an account in the general
  revenue fund that may be appropriated only for the purposes of this
  chapter. The comptroller [commission] shall adopt rules and make
  or amend contracts as necessary to administer this subsection.
         (f)  An officer or employee of a public junior college, as
  defined by Section 61.003, Education Code, of an open-enrollment
  charter school established under Subchapter D, Chapter 12,
  Education Code, or of a school district who is engaged in official
  business may participate in the comptroller's [commission's]
  contract for travel services.  The comptroller [commission] may
  charge a participating public junior college, open-enrollment
  charter school, or school district a fee not to exceed the costs
  incurred by the comptroller [commission] in providing services
  under this subsection.  The comptroller [commission] shall
  periodically review fees and shall adjust them as needed to ensure
  recovery of costs incurred in providing services to public junior
  colleges, open-enrollment charter schools, and school districts
  under this subsection.  The comptroller [commission] shall deposit
  the fees collected under this subsection to the credit of the public
  education travel account.  The public education travel account is
  an account in the general revenue fund that may be appropriated only
  for the purposes of this chapter.  The comptroller [commission]
  shall adopt rules and make or amend contracts as necessary to
  administer this subsection.
         (g)  A municipal officer or employee who is engaged in
  official municipal business may participate in the comptroller's
  [commission's] contract for travel services for the purpose of
  obtaining reduced airline fares and reduced travel agent fees. The
  comptroller [commission] may charge a participating municipality a
  fee not to exceed the costs incurred by the comptroller
  [commission] in providing services under this subsection. The
  comptroller [commission] shall periodically review fees and shall
  adjust them as needed to ensure recovery of costs incurred in
  providing services to municipalities under this subsection. The
  comptroller [commission] shall deposit the fees collected under
  this subsection to the credit of the municipality airline fares
  account. The municipality airline fares account is an account in
  the general revenue fund that may be appropriated only for the
  purposes of this chapter. The comptroller [commission] shall adopt
  rules and make or amend contracts as necessary to administer this
  subsection.
         (h)  A board member or employee of a communication district
  or an emergency communication district established under Chapter
  772, Health and Safety Code, who is engaged in official district
  business may participate in the comptroller's [commission's]
  contract for travel services for the purpose of obtaining reduced
  airline fares and reduced travel agent fees.  The comptroller
  [commission] may charge a participating district a fee not to
  exceed the costs incurred by the comptroller [commission] in
  providing services under this subsection.  The comptroller
  [commission] shall periodically review fees and shall adjust them
  as needed to ensure recovery of costs incurred in providing
  services to districts under this subsection.  The comptroller
  [commission] shall deposit the fees collected under this subsection
  to the credit of the emergency communication district airline fares
  account.  The emergency communication district airline fares
  account is an account in the general revenue fund that may be
  appropriated only for the purposes of this chapter.  The
  comptroller [commission] shall adopt rules and make or amend
  contracts as necessary to administer this subsection.
         (j)  An officer or employee of a hospital district created
  under general or special law who is engaged in official hospital
  district business may participate in the comptroller's
  [commission's] contract for travel services for the purpose of
  obtaining reduced airline fares and reduced travel agent fees.  The
  comptroller [commission] may charge a participating hospital
  district a fee not to exceed the costs incurred by the comptroller
  [commission] in providing services under this subsection.  The
  comptroller [commission] shall periodically review fees and shall
  adjust them as needed to ensure recovery of costs incurred in
  providing services to hospital districts under this subsection.  
  The comptroller [commission] shall deposit the fees collected under
  this subsection to the credit of the hospital district airline
  fares account.  The hospital district airline fares account is an
  account in the general revenue fund that may be appropriated only
  for the purposes of this chapter.  The comptroller [commission]
  shall adopt rules and make or amend contracts as necessary to
  administer this subsection.
         SECTION 105.  Sections 2171.056(a), (b), and (c), Government
  Code, are amended to read as follows:
         (a)  This section applies only to a state agency in the
  executive branch of state government that is required to
  participate in the comptroller's [commission's] contracts for
  travel services.
         (b)  Except as provided by comptroller [commission] rule, a
  state agency may not:
               (1)  purchase commercial airline or rental car
  transportation if the amount of the purchase exceeds the amount of
  the central travel office's contracted fares or rates; or
               (2)  reimburse a person for the purchase of commercial
  airline or rental car transportation for the amount that exceeds
  the amount of the central travel office's contracted fares or
  rates.
         (c)  The comptroller [commission] shall educate state
  agencies about this section.
         SECTION 106.  Section 2171.104(d), Government Code, is
  amended to read as follows:
         (d)  The Texas Facilities Commission [commission] shall
  require a state agency to transfer surplus or salvage vehicles
  identified by the management plan to the Texas Facilities
  Commission [commission] and shall sell or dispose of the vehicles
  in accordance with the provisions of Chapter 2175 that provide for
  disposition of surplus or salvage property by the Texas Facilities
  Commission [commission].
         SECTION 107.  The heading to Chapter 2172, Government Code,
  is amended to read as follows:
  CHAPTER 2172. MISCELLANEOUS GENERAL SERVICES PROVIDED BY
  COMPTROLLER [COMMISSION]
         SECTION 108.  Sections 2172.001, 2172.0011, and 2172.002,
  Government Code, are amended to read as follows:
         Sec. 2172.001.  CENTRAL SUPPLY STORE. The comptroller
  [commission] may operate a central supply store at which only state
  agencies, the legislature, and legislative agencies may obtain
  small supply items. If the comptroller [commission] operates a
  central supply store, the comptroller [commission] shall devise an
  appropriate method of billing a using entity for the supplies.
         Sec. 2172.0011.  COMPTROLLER POWERS AND [TRANSFER OF]
  DUTIES[; REFERENCE]. [(a)] The comptroller has under this chapter
  the powers and duties described by Section 2151.004(d) [of the
  commission under this chapter are transferred to the comptroller].
         [(b)     In this chapter, a reference to the commission means
  the comptroller.]
         Sec. 2172.002.  BUSINESS MACHINE REPAIR. (a) The
  comptroller [commission] may maintain a facility for repairing
  office machines and may offer repair services to the following
  entities located in Austin:
               (1)  state agencies;
               (2)  the legislature; and
               (3)  legislative agencies.
         (b)  Using entities shall pay the comptroller [commission]
  for repair services by vouchers prepared and sent to the using
  entity by the comptroller [commission].
         (c)  The comptroller [commission] may not repair or maintain
  a privately owned machine.
         SECTION 109.  Sections 2172.003(a), (b), and (c), Government
  Code, are amended to read as follows:
         (a)  The comptroller [commission] may:
               (1)  assist a state agency with the agency's printing
  activities; and
               (2)  assess and evaluate those activities.
         (b)  The comptroller [commission] may recommend changes
  intended to increase the productivity and cost-effectiveness of
  printing operations of state agencies. Recommendations may be
  reported periodically as provided by comptroller [to the
  appropriate associate deputy director under commission] rules.
         (c)  The comptroller [commission] may:
               (1)  adopt standard accounting procedures that permit
  evaluating and comparing the costs of printing operations conducted
  by state agencies;
               (2)  coordinate activities among state print shops;
               (3)  review state agency requisitions for new printing
  shop equipment;
               (4)  assist state agencies in expediting the production
  of printing and graphic arts;
               (5)  maintain a roster of state print shops and their
  equipment, facilities, and special capabilities;
               (6)  serve as a clearinghouse for private vendors of
  printing services to ensure that printing services and supplies are
  purchased in the most efficient and economical manner;
               (7)  coordinate the consolidation of print shops
  operated by state agencies when the agencies involved determine
  that consolidation is appropriate; and
               (8)  develop procedures for the recovery of the
  comptroller's [commission's] reasonable costs under Chapter 317
  from amounts appropriated to the state agencies for which
  identified savings are achieved.
         SECTION 110.  Sections 2172.004 and 2172.005, Government
  Code, are amended to read as follows:
         Sec. 2172.004.  ARCHIVES. The comptroller [commission] may
  store and display the archives of Texas.
         Sec. 2172.005.  DONATIONS. The comptroller [commission] may
  solicit and accept private donations for the Congress Avenue
  beautification program, a capital improvements project in Austin.
  The program includes improvements in the Capitol Complex [capitol
  complex] generally north of the Capitol along either side of
  Congress Avenue.
         SECTION 111.  Sections 2172.006(a), (b), and (d), Government
  Code, are amended to read as follows:
         (a)  Notwithstanding any other provision of law, the
  comptroller [commission] may negotiate and contract with a
  privately owned business entity for the design and manufacture of:
               (1)  an official state lapel pin for purchase by
  members and former members of the house of representatives;
               (2)  an official state lapel pin for purchase by
  members and former members of the senate;
               (3)  an official state ring for purchase by members and
  former members of the house of representatives; and
               (4)  an official state ring for purchase by members and
  former members of the senate.
         (b)  The comptroller [commission] must submit any design of
  an official state lapel pin or ring to the State Preservation Board
  for its approval.
         (d)  The comptroller [commission] by rule shall establish
  the purchase price for a lapel pin or ring. After payment of
  amounts required under the contract and recovery of its costs of
  administering this section, the comptroller [commission] shall
  deposit any remaining funds received from the sale of items under
  this section to the credit of the Texas preservation trust fund.
         SECTION 112.  Sections 2176.0011, 2176.003, and 2176.004,
  Government Code, are amended to read as follows:
         Sec. 2176.0011.  COMPTROLLER POWERS AND [TRANSFER OF]
  DUTIES[; REFERENCE]. [(a)] The comptroller has under this chapter
  the powers and duties described by Section 2151.004(d) [of the
  commission under this chapter are transferred to the comptroller].
         [(b)     In this chapter, a reference to the commission means
  the comptroller.]
         Sec. 2176.003.  [COMMISSION] EVALUATION OF STATE AGENCY MAIL
  OPERATIONS.  The comptroller [commission] shall:
               (1)  evaluate the mail operations of state agencies
  located in Travis County and make recommendations to identify and
  eliminate practices resulting in excessive mail costs; and
               (2)  establish minimum objectives and responsibilities
  for managing mail for the agencies.
         Sec. 2176.004.  [COMMISSION] PROCEDURES FOR IMPROVEMENT OF
  MAIL OPERATIONS.  The comptroller [commission] shall:
               (1)  in conjunction with the United States Postal
  Service, establish procedures to improve the measurement of state
  agency mail costs, using postage meters or stamps as appropriate;
               (2)  establish procedures to determine the advantages
  to state agencies of presorting mail;
               (3)  establish procedures to determine the lowest cost
  class of mail necessary to effectively accomplish individual state
  agency functions;
               (4)  evaluate the cost-effectiveness of using
  alternatives to the United States Postal Service for delivering
  state agency mail;
               (5)  train state agency personnel regarding
  cost-effective mailing practices;
               (6)  set standards for receipt, delivery, collection,
  and dispatch of mail; and
               (7)  publish and disseminate standards, guides, and
  instructions for managing mail and establish and implement
  procedures for monitoring compliance with the standards, guides,
  and instructions.
         SECTION 113.  Section 2176.051(a), Government Code, is
  amended to read as follows:
         (a)  The comptroller [commission] shall operate a messenger
  service for delivering unstamped written communications and
  packages between the following entities located in Travis County:
               (1)  state agencies;
               (2)  the legislature; and
               (3)  legislative agencies.
         SECTION 114.  Sections 2176.102, 2176.103, 2176.104,
  2176.105, 2176.106, and 2176.107, Government Code, are amended to
  read as follows:
         Sec. 2176.102.  [COMMISSION] EVALUATION.  The comptroller
  [commission] shall evaluate the outgoing first-class mail
  practices of state agencies located in Travis County, including the
  lists, systems, and formats used to create mail.
         Sec. 2176.103.  DISCOUNTED POSTAL RATES. The comptroller
  [commission] shall achieve the maximum available discount on postal
  rates whenever acceptable levels of timeliness, security, and
  quality of service can be maintained using the discounted rate.
         Sec. 2176.104.  REQUIREMENT TO CONSULT WITH COMPTROLLER
  [COMMISSION].  A state agency to which this subchapter applies
  shall consult the comptroller [commission] before the agency may:
               (1)  purchase, upgrade, or sell mail processing
  equipment;
               (2)  contract with a private entity for mail
  processing; or
               (3)  take actions that significantly affect the
  agency's first-class mail practices.
         Sec. 2176.105.  GUIDELINES FOR MEASURING AND ANALYZING
  FIRST-CLASS MAIL PRACTICES.  (a)  The comptroller [commission]
  shall adopt and distribute to each state agency to which this
  subchapter applies guidelines by which outgoing first-class mail
  practices may be measured and analyzed. The guidelines must require
  using the services of the United States Postal Service to the extent
  possible.
         (b)  The comptroller [commission] shall review and update
  the guidelines at least once every two years, beginning two years
  after the date on which the guidelines are adopted.
         Sec. 2176.106.  TRAINING. (a)  Not later than the 90th day
  after the date on which the initial guidelines under Section
  2176.105 are distributed, and at least annually beginning one year
  after the date of distribution, the comptroller [commission] shall
  provide training to state agency personnel who handle first-class
  mail.
         (b)  The comptroller [commission] may use to the extent
  possible free training provided by the United States Postal
  Service.
         Sec. 2176.107.  PREREQUISITE TO UPGRADING OR REPLACING MAIL
  EQUIPMENT; COMPARISON AND ANALYSIS.  (a)  If the comptroller
  [commission] determines that upgrading existing mail production or
  processing equipment or purchasing new mail production or
  processing equipment is required to improve outgoing first-class
  mail practices of the comptroller [commission] or another state
  agency located in Travis County, the comptroller [commission] shall
  prepare a cost-benefit analysis demonstrating that the upgrade or
  purchase is more cost-effective than contracting with a private
  entity to provide the equipment or mail service.
         (b)  The comptroller [commission] shall approve the most
  cost-effective method.
         SECTION 115.  The heading to Section 2176.109, Government
  Code, is amended to read as follows:
         Sec. 2176.109.  FEES FOR COMPTROLLER [COMMISSION] SERVICES.
         SECTION 116.  Sections 2176.109(a) and (c), Government Code,
  are amended to read as follows:
         (a)  The comptroller [commission] by interagency contract
  shall charge and collect fees from each state agency to which this
  subchapter applies for the comptroller's [commission's] services
  under this subchapter.
         (c)  The comptroller [commission] shall transfer to the
  general revenue fund the amount of a fee charged a state agency
  under this section that is greater than the amount of the
  comptroller's [commission's] actual expenses for performing the
  services for the agency.
         SECTION 117.  Sections 2176.152 and 2176.203, Government
  Code, are amended to read as follows:
         Sec. 2176.152.  PROCESSING UNITED STATES MAIL IN CAPITOL
  COMPLEX. United States mail may be delivered to and from the post
  office located in the Capitol Complex [capitol complex] on
  agreement between the comptroller [commission] and the affected
  agency.
         Sec. 2176.203.  NOTIFICATION OF SERVICE OPTIONS. The
  comptroller [commission] shall, as part of the guidelines developed
  under Section 2176.105, provide information to state agencies about
  special mail services offered by the United States Postal Service.  
  The comptroller [commission] shall assist a state agency in
  determining which service to use, considering the state agency's
  needs for accountability, timeliness, security, and quality of
  service.
         SECTION 118.  Section 2254.007(b), Government Code, is
  amended to read as follows:
         (b)  This section does not apply to the enforcement of a
  contract entered into by a state agency as that term is defined by
  Section 2151.002.  In this subsection, "state agency" includes the
  Texas Facilities [Building and Procurement] Commission and the
  comptroller.
         SECTION 119.  Section 2262.0011, Government Code, is amended
  to read as follows:
         Sec. 2262.0011.  COMPTROLLER POWERS AND [TRANSFER OF]
  DUTIES[; REFERENCE]. [(a)] The comptroller has under this chapter
  the powers and duties described by Section 2151.004(d) [of the
  commission under this chapter are transferred to the comptroller].
         [(b)     In this chapter, a reference to the commission means
  the comptroller.]
         SECTION 120.  Sections 2262.051(a) and (b), Government Code,
  are amended to read as follows:
         (a)  In consultation with the attorney general, the
  Department of Information Resources, [the comptroller,] and the
  state auditor, the comptroller [commission] shall develop or
  periodically update a contract management guide for use by state
  agencies.  Participation by the state auditor under this subsection
  is subject to approval by the legislative audit committee for
  inclusion in the audit plan under Section 321.013(c).
         (b)  The comptroller [commission] may adopt rules necessary
  to develop or update the guide.
         SECTION 121.  Section 2262.054, Government Code, is amended
  to read as follows:
         Sec. 2262.054.  PUBLIC COMMENT. The comptroller
  [commission] by rule may establish procedures by which each state
  agency is required to invite public comment by publishing the
  proposed technical specifications for major contracts on the
  Internet through the information service known as the Texas
  Marketplace or through a suitable successor information service.
  The guide must define "technical specifications."
         SECTION 122.  Section 361.965(e), Health and Safety Code, is
  amended to read as follows:
         (e)  The comptroller [Texas Building and Procurement
  Commission] and the Department of Information Resources shall adopt
  rules to implement this section.
         SECTION 123.  Section 195.008(b), Local Government Code, is
  amended to read as follows:
         (b)  The committee consists of:
               (1)  the following persons appointed by the director
  and librarian:
                     (A)  one person who is employed by or is an officer
  of a title insurance agent or title insurance company;
                     (B)  an officer or employee of a federal
  government-sponsored entity;
                     (C)  a person who as a usual business practice
  obtains copies of recorded instruments from a county clerk to
  maintain an abstract or title plant; and
                     (D)  a public representative;
               (2)  two persons who are county judges or county
  commissioners appointed by the County Judges and Commissioners
  Association of Texas;
               (3)  four county clerks appointed by the County and
  District Clerks' Association of Texas;
               (4)  three persons who are employed by or officers of
  different title insurance agents or companies appointed by the
  Texas Land Title Association;
               (5)  the presiding officer of the Title Insurance
  Subcommittee of the Real Estate, Probate, and Trust Law section of
  the State Bar of Texas or the functional equivalent of that
  subcommittee;
               (6)  the attorney general or a person designated by the
  attorney general;
               (7)  the comptroller or a person designated by the
  comptroller;
               (8)  the executive director of the Texas Facilities
  [General Services] Commission or a person designated by the
  executive director;
               (9)  the executive director of the Department of
  Information Resources or a person designated by the executive
  director; and
               (10)  the director and librarian or a person designated
  by the director and librarian, who also serves as presiding officer
  of the committee.
         SECTION 124.  Sections 263.152(a) and (a-1), Local
  Government Code, are amended to read as follows:
         (a)  The commissioners court of a county may:
               (1)  periodically sell the county's surplus or salvage
  property by competitive bid or auction, except that competitive
  bidding or an auction is not necessary if the purchaser is another
  county or a political subdivision within the county that is selling
  the surplus or salvage property;
               (2)  offer the property as a trade-in for new property
  of the same general type if the commissioners court considers that
  action to be in the best interests of the county;
               (3)  order any of the property to be destroyed or
  otherwise disposed of as worthless if the commissioners court
  undertakes to sell that property under Subdivision (1) and is
  unable to do so because no bids are made;
               (4)  dispose of the property by donating it to a civic
  or charitable organization located in the county if the
  commissioners court determines that:
                     (A)  undertaking to sell the property under
  Subdivision (1) would likely result in no bids or a bid price that
  is less than the county's expenses required for the bid process;
                     (B)  the donation serves a public purpose; and
                     (C)  the organization will provide the county with
  adequate consideration, such as relieving the county of
  transportation or disposal expenses related to the property;
               (5)  transfer gambling equipment in the possession of
  the county following its forfeiture to the state to the Texas
  Facilities [Building and Procurement] Commission for sale under
  Section 2175.904, Government Code; or
               (6)  order any vehicle retired under a program designed
  to encourage the use of low-emission vehicles to be crushed and
  recycled, if practicable, without a competitive bid or auction.
         (a-1)  The commissioners court shall remit money received
  from the Texas Facilities [Building and Procurement] Commission
  from the sale of gambling equipment under Section 2175.904(c),
  Government Code, less administrative expenses incurred by the
  county in connection with the transfer and sale of the equipment, to
  the local law enforcement agency that originally seized the
  equipment.
         SECTION 125.  Sections 31.157(b) and (c), Natural Resources
  Code, are amended to read as follows:
         (b)  The draft report shall be submitted to the Texas
  Facilities [Building and Procurement] Commission, which shall
  further evaluate the potential use of the real property by another
  state agency. The land office shall submit a draft report to each
  agency that owns or holds in trust property that is the subject of
  the draft report. The Texas Facilities [Building and Procurement]
  Commission may make additional recommendations regarding the use of
  the real property. The state agency that owns or controls real
  property named in the report may comment on any findings or
  recommendations made by the commissioner. The Texas Facilities
  [Building and Procurement] Commission and any state agency that
  owns or controls real property named in the report shall complete a
  review of the draft report within 60 days of the receipt of the
  report and forward all recommendations and comments to the
  commissioner.
         (c)  The commissioner shall prepare and issue a final
  evaluation report that incorporates any recommendations of the
  Texas Facilities [Building and Procurement] Commission regarding
  the potential use of the real property by another state agency and
  any comments from any state agency that owns or controls property
  named in the report.
         SECTION 126.  The following provisions of the Government
  Code are repealed:
               (1)  Section 2170.0011;
               (2)  Section 2170.0012; and
               (3)  Section 2262.001(1-a).
         SECTION 127.  This Act takes effect September 1, 2019.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1524 was passed by the House on May 3,
  2019, by the following vote:  Yeas 140, Nays 0, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 1524 was passed by the Senate on May
  22, 2019, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor