DIR Announces New Organization at the Top

The Department of Information Resources (DIR), now under the leadership of Larry Olson, announced significant organizational changes today. Thomas Johnson, the public information officer at DIR, stated that the agency has "restructured and consolidated some functions" to arrive at the new configuration.

Linda Fernandez will serve as the Chief Financial Officer, overseeing budgeting, financial analysis, and financial reporting. Under the Chief Financial Officer and Chief Information Officer, Larry Olson's title, are four main divisions: Strategic Initiatives, IT Security, Telecommunications, and Service Delivery.

• Dustin Lanier will be the Director of Strategic Initiatives, which includes E-Government, statewide reporting, statewide standards, and technology innovation.
• Eddie Block is Acting Director of IT Security, which includes policy, security testing, and statewide security initiatives.
• Eddie Esquivel will serve as Director of Telecommunications, overseeing planning, new technology, operations, and TPOC support.
• Ed Serna will lead Service Delivery, which encompasses contract management, IRM/IT services, accounting, human resources, administrative support services, and the public information office.

For a new organizational chart, visit DIR's website: http://www.dir.state.tx.us/dir_overview/orgchart.pdf.

Dallas On Forefront of Comprehensive Homeland Security Network

The U.S. Department of Homeland Security, in partnership with local private sector and the Federal Bureau of Investigation, this week launched the first Homeland Security Information Network-Critical Infrastructure (HSIN-CI) Pilot Program in Dallas, Texas with locally operated pilot programs in Seattle, Indianapolis and Atlanta to follow. The pilot program will operate throughout the course of this year to determine the feasibility of using this model for other cities across the country.

The HSIN-CI pilot program, modeled after the FBI Dallas Emergency Response Network expands the reach of the Department's Homeland Security Information Network (HSIN) initiative--a counterterrorism communications tool that connects 50 states, five territories, Washington, D.C., and 50 major urban areas to strengthen the exchange of threat information--to critical infrastructure owners and operators in a variety of industries and locations, first responders and local officials. As part of the HSIN-CI pilot program, more than 25,000 members of the network will have access to unclassified sector specific information and alert notifications on a 24/7 basis.

Homeland Security Information Network-Critical Infrastructure is governed and administered by local experts from the private and public sector with the support of Regional Coordinators. The four pilot communities have also established Infrastructure Advisory Panels to assist in the administration and overall governance of the program locally; manage counter-terrorism and public safety information sharing; and to review and validate HSIN-CI applications.

Teachers, State Agency Oppose Stipend Law Implementation

A 2003 law has elicited an outcry from Texas teachers, who, along with the Teacher's Retirement System (TRS), are lobbying for its reversal. The new law, which mandates that educators must place a $500 yearly stipend into pretax accounts for medical expenses, originated in a 2001 law which simply granted teachers a stipend to spend how they pleased. The problem with the 2003 law, according to TRS, however, is that there is no funding for any type of compliance or monitoring system, which would be necessary for the implementation of the law. The agency is currently gathering documentation to illustrate this point before the law goes into effect on September 1.

While TRS maintains that it is only requesting clarification on funding, many familiar with the issue believe that the agency is under pressure from lawmakers responding to the complaints of teachers in their constituency who oppose the new restriction. In addition to limiting how teachers can spend their stipends, the law also mandates that teachers pay the Aetna insurance company's cost, which could equate to $42 annually. While this charge is relatively small, many teachers who already saw their annual stipends reduced from $1000 to $500 in 2003 find the prospect of this additional charge insulting. A legislative effort to repeal the law during the special session failed. TRS' board voted last week to suspend the law's implementation while the agency awaits documentation and clarification.

Dr. Blandina Cardenas Named UTPA President

After a 10 month search, The University of Texas System Board of Regents has named Dr. Blandina Cardenas, dean of the College of Education and Human Development (COEHD) at The University of Texas at San Antonio, as the new leader and first female Hispanic president of The University of Texas-Pan American (UTPA) Monday.

Cardenas, a professor of educational leadership, was unanimously selected from among six finalists to succeed UTPA President Dr. Miguel A. Nevárez, who announced in August 2003 he was stepping down after serving the institution for more than 32 years.

As president of UT Pan American, Cardenas said she plans to take the University to the next level and expand the number and variety of doctoral programs; serve and graduate more students; and create partnerships with financial supporters and other institutions to bring the necessary attention to the Valley and to strengthen its economy. Cardenas, who starts in September, said she looks forward to the new challenge and making the Valley her new home.

As dean, Cardenas has led UTSA's newly established COEHD to excellence, including raising the pass rates for teacher certification exams to 97 percent; introducing new standards-based programs; generating more than $8 million in external funding; and developing strong partnerships with San Antonio's inner-city schools.

In addition to faculty positions at UTSA and Texas State University at San Marcos, Cardenas has served in a number of organizations focused on multiculturalism, education, and families: director of the Hispanic Research Center at UTSA (1999-2000); director of Office of Minorities in Higher Education, American Council on Education (1989-1992); member, U.S. Commission on Civil Rights (1980-1992); and chief of the Children's Bureau and commissioner of the Administration for Children, Youth and Families in the Department of Health, Education and Welfare (1977-1999).

4th Biennial Pre-legislative Session Conference Updates

Below are conference updates from the sponsors of the 4th Biennial Pre-legislative Session Conference, which is jointly sponsored by SPI and the LBJ School of Public Affairs. The conference will be held on October 7th at the JJ Pickle Center in Austin.

Panel on Working with Legislative Staff: David Weber, Policy Analyst for Speaker of the House Tom Craddick, will join Lisa Kaufman, General Counsel for Senator Duncan and Committee Director for the Senate State Affairs Committee and Anita Zinnecker, Assistant Director of the Legislative Budget Board, in a panel on Working with Legislative Staff. Libby Martinez, former chief of staff for Senator Elliot Shapleigh, will moderate. Biographical information on Kaufman, Zinnecker, and Martinez can be found in last week's edition of the Insider. Click here to view.

David Weber has worked for the Texas House of Representatives since 1994. Since 2003, he has been a Policy Analyst in insurance, economic development, business and industry, and financial institutions for Speaker of the House Tom Craddick. Previously, he served as Legislative Director for State Representative Gene Seaman from 1997 to 2003. He began his career at the capitol as a legislative aide and committee counsel for State Representative Todd Hunter and the House Committee on Civil Practices. David holds a J.D. from St. Mary's University School of Law and a B.A., cum laude, in History from Southwest Texas State University.

Panel on State Agency Governing Boards: As previously announced in the Insider, the conference will include a panel on the role of state agency boards in the legislative process. Tom Beard, Cyndi Krier, Colleen McHugh (click here to read their bios), and Leonard Lawrence (click here for Dr. Lawrence's bio) will comprise the panel.

Texas has over 200 agencies, most of which are governed by boards or commissions. In nearly all cases the board members are appointed to staggered six year terms and require confirmation by the Senate, but beyond that there is little commonality. The four panelists represent four very different kinds of board composition:

• The Texas Building and Procurement Commission (Tom Beard) has a seven member board. Three commissioners are appointed by the governor, two by the lieutenant governor, and two by the governor from a list provided by the speaker. A proposal to change this structure did not pass the last legislative session. The chair is designated by the governor and serves at his pleasure. There is no vice chair.
• The Texas Department of Public Safety (Colleen McHugh) has a three person board, all appointed by the governor. The chair is designated by the governor and serves at his pleasure. There is no vice chair.
• The Texas Youth Commission (Dr. Leonard Lawrence) has a seven person board, all of whom are appointed by the governor. The chair is designated by the governor and serves at his pleasure. The board members elect their own vice chair.
• The University of Texas (Hon. Cyndi Krier) has a nine person board of regents, all of whom are appointed by the governor. They select their own chair and multiple vice chairs. A proposal to allow the governor to appoint virtually all chairs failed to pass the last legislative session.

Registration Information: In response to numerous inquiries, the conference sponsors have announced that they are keeping the fee at the same level as it was two years ago: $225 per person. Registration will begin in mid July and the registration site will be announced in a future edition of the Insider.

Austin's Population Expected to Surpass San Antonio's Durning Next 35 Years

Austin is expected to take over the title of third most populous Texas city from San Antonio sometime between 2020 and 2040, according to demographic projections by the Texas State Data Center at the University of Texas at San Antonio. The study indicates that Houston and Dallas will retain their respective No. 1 and No. 2 rankings. The projections suggest the population of the Austin area will jump from about 1.2 million now to between 2.7 million and 3.5 million by 2040 while the population of the San Antonio area will increase from 1.7 million to between 2.5 million and 2.7 million. Statewide population is expected to be more than 51 million by 2040. Texas' projected growth rate is higher than any other state's. The study also indicates that in 2040 half of Texas' population could be comprised of Hispanics, who currently make up a third of the state's population now.

Stricter Port Security Standards In Effect

The U.S. Department of Homeland Security (DHS) announced this week that new security measures are being implemented across the United States providing for safer ports in America, According to the federal agency, the implementation of these international standards, in advance of the July 1st deadline, will enable the U.S. to better harden the port's physical infrastructure, verify the security of individual vessels before they approach a U.S. port, and better restrict access to the port area.

Speaking from the Ports of Los Angeles/Long Beach, the nation's busiest container ports, DHS Secretary Tom Ridge underscored the importance of implementing these new security measures around the world, drawing attention to the fact that 80 percent of world trade travels by sea.

In addition to the international requirements of the International Ship and Port Facility Security Code, the United States has mandated vessels, maritime facilities and ports around the country to implement security measures by July 1, as part of the domestic Maritime Transportation Security Act that establishes a new, robust baseline of security for our nation's ports. Vessels and port facilities around the country are now on target to meet the July 1 deadline for these increased security measures, as well. An estimated 9,500 vessels, 3,200 facilities, and 40 off-shore oil or natural gas rigs are directly affected.

Download Secure Seas, Open Ports Fact Sheet (PDF, 9 pages - 427 KB): click here.

Strategic Partnerships, Inc. (SPI) is a Texas-based, nine year old research and knowledge based consulting firm offering business development and public affairs services. To learn more about the SPI team click here or contact Crystal Kuhs at 512-531-3900.

Austin City Officials Promise Samsung and Home Depot $11.5 Million in Incentives

Austin city officials approved $11.5 million worth of incentives for Samsung Austin Semiconductor and Home Depot Inc. this week. Samsung is slated to get $4.3 million from Austin Energy, the city's electric department. The money will be used to upgrade the city's electric system to meet the needs of the Austin plant Samsung is currently expanding at a cost of $500 million. The expansion project will make room for at least 240 more workers. Home Depot stands to get a 10-year property tax exemption worth $7.2 million if it goes ahead with plans to build a data center in Northeast Austin which would employ about 500 people. The City Council said their decision to approve the incentives was based largely on the belief that both projects will generate hundreds of high-paying jobs and help revitalize Austin's tech industry.

Much-anticipated Pharmacy School Faces Possibility of Two Year Delay

Despite a worsening shortage of pharmacists in the state, the highly-anticipated Irma Rangel Pharmacy School may face a two year delay due to a shortage of state funds. While the school's construction is proceeding on schedule, not much else is, making the original opening date of September 2005 less and less likely. Originally approved in by the State Legislature in 2001, the location of the pharmacy school at Texas A&M Kingsville was well received, marking the first state professional school to open south of San Antonio. Since that time a dean was hired to oversee the hiring of faculty, accreditation process, etc. Due to the budget crunch of 2003, the cash-strapped Legislature only granted the school $350,000, despite the school's request for an operating budget of $5.4 million for the 2004-2005 Biennium. Even though Gov. Perry, after the disappointing allotment from the Legislature, promised that he would get the funding from the Legislative Budget Board, the LBB has heretofore ignored their request for interim funding. Texas A&M Kingsville President Runaldo Juarez fears that the situation has reached a critical point, almost insuring that the school will not open on schedule in 2005. He projects that the funding shortfall has pushed the opening date of the College of Pharmacy back at least two years.

Billions to be Spent on ITS Systems

More than $6 billion will be spent on Intelligent Transportation Systems (ITS) during the next six years, according to the Center for Digital Government, a national think tank and knowledge resource on information technology policy and practices in state and local government. ITS can be used for diverse needs ranging from detecting emergencies on highways and controlling the flow of traffic to routing on-demand travel services and improving freight security. The Texas Department of Transportation (TxDOT) is currently soliciting proposals for computer programming and support services for the TransGuide Intelligent ITS in San Antonio.

Houston Property Tax Rate Lowered

The Houston City Council approved a half-cent city tax rate cut this week. The city's operating budget will decrease by about $5 million due to the cut, which will drop the tax per $100 assessed value to 65 cents. Houston homeowners will save an average of approximately $6 per year on their property tax bills.

Event Links

EXPERIENCE IT 2004 Conference7/29/04 - 7/30/04

Identity Crime Regional TrainingVarious Dates

NCSL Annual Meeting: The New Legislative Reality - 7/19/04 - 7/23/04

EXPERIENCE IT 2004 Conference7/29/04 - 7/30/04

TASSCC 2004 Conference: IT Olympics--Go For the Gold - 8/9/04 - 8/11/04

Texas Association of School Administrators/Texas Association of School Boards 44th Annual Convention - 09/17/04-09/20/04

NASCIO 2004 Annual Conference - 9/19/04 - 9/22/04

WIN BUSINESS WITH TEXAS GOVERNMENT

SPI has a dedicated Information Services (IS) Division that researches governmental entities and analyzes data for future and current business opportunities. Our team studies and reviews strategic plans, legislative appropriations requests, appropriations bills, and budgets to identify potential business projects. IS provides these key services and products:

• Future Opportunity Analysis - email notification of new opportunities as they are discovered and updates to opportunities as new information becomes available



• Bid Monitoring - timely email notification of current procurement opportunities for over 500 state agencies, institutions of higher education, cities, counties, school districts, airports, and ports.



• Customized Research - specific intelligence on entities, opportunities, markets, trends, products, competitors, etc.



• The Guide to the Texas State Government Marketplace - This comprehensive report identifies funding allocations and projected timelines for projects as well as historical spending data in 20 key state agencies. The Guide also offers explanations and insight to potential opportunities in significant legislation from the Regular Session of the 78th Legislature.

Please contact SPI's Crystal Kuhs at ckuhs@spartnerships.com for more details.

Past ABJ articles by Mary Scott Nabers

Opportunities taking off at airports around Texas - 4/19/2004

It pays to be schooled about education projects - 3/22/2004

Health care arena filled with outsourcing deals - 2/23/2004

River authorities pumping opportunity in Texas - 2/02/2004

Texas Government Insider Archives

Volume 2 Issue 24 - 6/10/04

Volume 2 Issue 23 - 6/10/04

Volume 2 Issue 22 - 6/4/04

Volume 2 Issue 21 - 5/27/04

Volume 2 Issue 20 - 5/21/04

Volume 1 and Volume 2 Archives 11/7/03 - 5/14/04

News from Strategic Partnerships, Inc.

Invitations have been extended to speakers for this important conference that will be held on October 7th at UT's JJ Pickle Center in Austin. The conference is sponsored jointly by SPI and UT's LBJ School of Public Affairs. As the agenda becomes firm and speakers confirmed, details will be available at SPI's website. Registration will open in mid July after all of the panels have been announced. At that time, a link to the registration page will appear here.

Resources

Report on Contract Administration for the Texas Integrated Eligibility Redesign System.

NASBO Fiscal Survey of the States

Fiscal Year 2003 Quality Assurance Team's Annual Report

New Texas Fact Book 2004

Joint Select Committee's Report on Public School Finance, March 17, 2004

Texas Public Policy Foundation's Policy Papers on Public School Finance

Center for Public Policy Priorities' Finding a School Finance Solution

Public Hearings/Meetings

House Appropriations Subcommittee on Health and Human Services-- 10:00am, June 28, E1.030

Senate International Relations and Trade Committee-- 10:00am, July 7, San Antonio City Council Chamber Municipal Plaza Building

Senate International Relations and Trade Committee-- 10:00am, July 12, E1.028; July 13, Fredericksburg; July 27, E1.028

New HUB Rules Discussed at HHSC Vendor Fair

Texas Health and Human Services Commission (HHSC) hosted a Health and Human Services Agencies HUB (Historically Under-Utilized Business) Vendor Fair on June 23, 2004. HHSC Commissioner Albert Hawkins welcomed participants to the fair and introduced Dawnna Dukes, State Representative from District 46, Travis County, who also welcomed participants to the fair. Dukes also provided background on her interest in HUB participation and the legislation that she has helped to sponsor to make the HUB program what it has become.

At the first breakout session, Paul Gibson, HUB Certification & Compliance Supervisor at the Texas Building and Procurement Commission (TBPC), presented the current laws and rules regarding being certified as a HUB. He stated that the factors that are considered are ethnicity, ownership, active participation, size, and control & proportionate interest.

Ethnicity includes Asian Pacific Americans, Black Americans, Hispanic Americans, Native Americans and American Women. In addition, the owner should be a US citizen and a resident of Texas. The "for profit" businesses that qualify as a HUB must be owned by at least 51% by one or more persons qualifying for the ethnicity criteria. The eligible HUB owners must be actively participating in the day-to-day operations of the business. The business must meet size factors and control factors. The principal place of business must be in the State of Texas. TBPC may approve certification for businesses certified by other certifying organizations in Texas.

At the next breakout session, Charlotte Banks, Program Manager for the HUB program at TBPC, detailed the HUB Subcontract Rule Update. The rules for HUB's are changing effective September 1, 2004. There are several changes in the rules. One change is that the HUB Subcontracting Plan (HSP) that is submitted with bid responses must be submitted at the same time as the response except in certain instances with construction contracts. Effective September 1, 2004, there will be standardized forms for the HSPs. These standardized forms will be prescribed by TBPC and will be used by all agencies. The forms will be available on the TBPC website.

Banks also described the new rules for Good Faith Effort requirements. A bidding vendor will not have to advertise in publications, but can notify a HUB organization for distribution of the opportunity directly to their members. TBPC plans to have a vehicle for this notification on their website to simplify the process. Another new rule is that having a HUB Subcontracting Plan for a professional services contract which meets or exceeds the established HUB participation goals will constitute good faith effort.

There also are new, tighter rules regarding establishing self-performance to keep a winning vendor from subcontracting after the bid is awarded. More documentation will be required to verify that the vendor will indeed perform the tasks without the assistance of subcontractors.

Banks indicated that there is a new rule allowing revisions necessary to clarify and enhance information submitted in the original HSP prior to bid award. This will allow agencies more flexibility in dealing with bid responses that could be dismissed because of a technicality in the HSP. When an awarded contract is amended and the scope of work is expanded, the state agency must analyze to see if the additional scope of work will create additional subcontracting opportunities not identified in the initial solicitation. If so, the agency will require the contractor/vendor to submit a HSP for the additional opportunities.

The third breakout session was a panel of prime contractors comprised of representatives from Accenture LLP, Northrop Grumman Corporation, Maximus and TAC-Americas. These representatives discussed their experiences looking for qualified subcontractors and the circumstances under which they use subcontractors. Attendees and panel members discussed teaming opportunities and the need for qualified subcontractors - HUB-certified or not. Relationships are important and potential subcontractors should begin early to build the relationships.

The last breakout session of the fair was an overview of the state procurements processes. Christopher Burton of TBPC presented an overview of TXMAS, Reverse Auction and the State of Texas bid process. While the Fair was touted as an HHSC event, there were booths from the State Board of Educator Certification, Office of Attorney General, Texas Department of Criminal Justice, Teacher Retirement System, Texas Department of Parks and Wildlife, Travis County, Capital Metro, Texas State University and University of Texas at Austin, among others.

Texas Association of Counties 2004 Annual Legislative Conference

Sponsored by the Texas Association of Counties, this conference aims to educate county officials about upcoming legislation and issues that effect their communities. In addition to a legislative component, this year's conference will include a more diverse educational program. August 11-13, at the Renaissance Hotel Austin. For more information visit http://www.county.org/education/events/PreLeg/index.asp.

82nd Annual County Judges & Commissioners Association of Texas State Educational Conference & Business Meeting

Hosted by the County Judges and Commissioners' Association of Texas, this event is expected to draw between 400 and 500 attendees from all across the state of Texas. September 20-24, at the Park Plaza Hotel Reliant Center, Houston. For more information, contact Polk County Commissioner Bobby Smith at 936-646-5929, or visit http://www.countyprogress.com/NewFiles/Month/Calendar.html.