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	relating to correcting outdated references to the Texas Building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