By Armbrister                                         S.B. No. 1321
       74R2866 JRD-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the purchase of goods and services by the state and to
    1-3  purchasing services provided by the state to local governments.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 1.02(5), State Purchasing and General
    1-6  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
    1-7  amended to read as follows:
    1-8              (5)  "Best value" for purposes of Section 3.081 of this
    1-9  Act means lowest overall cost of information systems based on the
   1-10  following factors, including, but not limited to:
   1-11                    (A)  purchase price;
   1-12                    (B)  compatibility to facilitate exchange of
   1-13  existing data;
   1-14                    (C)  capacity for expansion and upgrading to more
   1-15  advanced levels of technology;
   1-16                    (D)  quantitative reliability factors;
   1-17                    (E)  the level of training required to bring
   1-18  end-users to a stated level of proficiency;
   1-19                    (F)  the technical support requirements for
   1-20  maintenance of data across a network platform and management of the
   1-21  network's hardware and software; and
   1-22                    (G)  compliance with applicable statewide
   1-23  standards adopted by the Department of Information Resources or a
   1-24  subsequent entity as validated by criteria established by the
    2-1  department or a subsequent entity in administrative rule.
    2-2        SECTION 2.  Article 3, State Purchasing and General Services
    2-3  Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
    2-4  adding Section 3.011 to read as follows:
    2-5        Sec. 3.011.  PROVIDING CERTAIN PURCHASING SERVICES ON
    2-6  FEE-FOR-SERVICE BASIS.  (a)  The commission may provide open market
    2-7  purchasing services on a fee-for-service basis for state agency
    2-8  purchases that are delegated to an agency under Section 3.06 or
    2-9  3.08 of this Act. The commission shall set the fees in an amount
   2-10  that recovers the commission's costs in providing the services.
   2-11        (b)  The commission shall publish a schedule of its fees for
   2-12  services that are subject to this section. The schedule must
   2-13  include the commission's fees for:
   2-14              (1)  reviewing bid and contract documents for clarity,
   2-15  completeness, and compliance with laws and rules;
   2-16              (2)  developing and transmitting invitations to bid;
   2-17              (3)  receiving and tabulating bids;
   2-18              (4)  determining which bidder offers the best value to
   2-19  the state and awarding the contract to that bidder; and
   2-20              (5)  creating and transmitting purchase orders.
   2-21        SECTION 3.  Section 3.022, State Purchasing and General
   2-22  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   2-23  amended to read as follows:
   2-24        Sec. 3.022.  COMPETITIVE SEALED PROPOSALS.  (a)  The
   2-25  commission may acquire supplies, materials, services, or equipment
   2-26  <telecommunications devices, systems, or services or any automated
   2-27  information systems, the computers on which they are automated, or
    3-1  a service related to the automation of information systems or the
    3-2  computers on which they are automated, including computer
    3-3  software,> by following a procedure using competitive sealed
    3-4  proposals <if the commission determines by rule that competitive
    3-5  sealed bidding or informal competitive bidding is not practical or
    3-6  is disadvantageous to the state.  Items to be purchased from higher
    3-7  education research funds may be acquired by following a procedure
    3-8  using competitive sealed proposals>.  The commission, or a state
    3-9  agency or <an> institution of higher education if the agency or
   3-10  institution is making the acquisition <if research purchasing
   3-11  authority has been delegated to that institution> under Section
   3-12  3.06 or 3.08 of this article, must first determine that competitive
   3-13  sealed bidding or informal competitive bidding is not practical or
   3-14  is disadvantageous to the state.  If the competitive sealed
   3-15  proposal procedure is to be handled by the state agency or
   3-16  institution of higher education, the agency or institution shall
   3-17  follow the procedures outlined by this section for the commission.
   3-18        (b)  The commission shall consult with appropriate personnel
   3-19  of a requisitioning agency to develop specifications for a request
   3-20  for competitive sealed proposals under this section.
   3-21        (c)  The commission shall solicit proposals by a request for
   3-22  proposals.  The commission shall give public notice of a request
   3-23  for proposals in the manner provided for requests for bids under
   3-24  Section 3.12 of this article.
   3-25        (d) <(c)>  The commission shall open each proposal in a
   3-26  manner that does not disclose the contents of the proposal during
   3-27  the process of negotiating with competing offerors.  The commission
    4-1  shall file each proposal in a register of proposals, which shall be
    4-2  open for public inspection after a contract is awarded unless the
    4-3  register contains information that is excepted from disclosure <as
    4-4  an open record> under Subchapter C, Chapter 552, Government Code
    4-5  <Section 3, Chapter 424, Acts of the 63rd Legislature, Regular
    4-6  Session, 1973 (Article 6252-17a, Vernon's Texas Civil Statutes)>.
    4-7        (e) <(d)>  As provided in a request for proposals and under
    4-8  the rules adopted by the commission, the commission may discuss
    4-9  acceptable or potentially acceptable proposals with offerors in
   4-10  order to assess an offeror's ability to meet the solicitation
   4-11  requirements.  After the submission of a proposal but before making
   4-12  an award, the commission may permit the offeror to revise the
   4-13  proposal in order to obtain the best final offer.  The commission
   4-14  may not disclose any information derived from proposals submitted
   4-15  from competing offerors in conducting discussions under this
   4-16  subsection.  The commission shall provide each offeror with an
   4-17  equal opportunity for discussion and revision of proposals.
   4-18        (f) <(e)>  The commission shall invite a requisitioning
   4-19  agency to participate in discussions conducted under Subsection (e)
   4-20  <(d)> of this section.
   4-21        (g) <(f)>  The commission shall make a written award of a
   4-22  purchase or lease to the offeror whose proposal offers <is> the
   4-23  best value <most advantageous> to the state, considering price,
   4-24  past vendor performance, vendor reputation, and the evaluation
   4-25  factors in the request for proposals, except that if the commission
   4-26  finds that none of the offers is acceptable, it shall refuse all
   4-27  offers.  In determining which proposal offers the best value <is
    5-1  most advantageous> to the state, the commission shall, when
    5-2  applicable and subject to Sections 3.103 and 3.104 of this Act,
    5-3  consider factors such as installation costs, the overall life of
    5-4  the supplies, materials, <system> or equipment, the cost of
    5-5  acquisition, operation, and maintenance <of hardware included
    5-6  with,> associated with<, or required for> the supplies, materials,
    5-7  <system> or equipment during the state's ownership or lease, the
    5-8  cost of acquisition, operation, and maintenance of software
    5-9  included with, associated with, or required for a proposed
   5-10  automated information or telecommunications <the> system or item of
   5-11  equipment during the state's ownership or lease, the estimated cost
   5-12  of other supplies needed because of the acquisition, the estimated
   5-13  costs of employee training needed because of the acquisition, the
   5-14  estimated cost of additional long-term staff needed because of the
   5-15  acquisition, and any <the> estimated increase in employee
   5-16  productivity because of the acquisition.  The contract file must
   5-17  state in writing the basis on which the award is made.
   5-18        (h) <(g)>  The commission shall adopt rules necessary or
   5-19  convenient to perform its responsibilities under this section and
   5-20  shall request assistance from other state agencies as needed.
   5-21        <(h)  A medical or dental unit as that term is defined in
   5-22  Section 61.003, Education Code, may purchase the following types of
   5-23  medical equipment by the use of competitive sealed proposals if it
   5-24  follows commission rules and procedures provided by this section
   5-25  regarding the use of competitive sealed proposals and submits to
   5-26  the commission a written finding that competitive sealed bidding or
   5-27  informal competitive bidding is not practical or is disadvantageous
    6-1  to the state for the proposed acquisition:>
    6-2              <(1)  prototypical medical equipment not yet available
    6-3  on the market;>
    6-4              <(2)  medical equipment so new to the market that its
    6-5  benefits are not fully known; or>
    6-6              <(3)  major medical equipment that is so technically
    6-7  complex that development of specifications for competitive bidding
    6-8  is not feasible.>
    6-9        SECTION 4.  Section 3.061(b), State Purchasing and General
   6-10  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   6-11  amended to read as follows:
   6-12        (b)  The commission shall promulgate rules allowing purchases
   6-13  through group purchasing programs unless the commission determines
   6-14  within a reasonable period of time after receiving notification of
   6-15  a particular purchase that a better value <lower price> is
   6-16  available through the commission.
   6-17        SECTION 5.  Article 3, State Purchasing and General Services
   6-18  Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
   6-19  adding Sections 3.062-3.064 to read as follows:
   6-20        Sec. 3.062.  TRAINING AND CERTIFICATION OF STATE AGENCY
   6-21  PURCHASING PERSONNEL.  (a)  The commission shall establish and
   6-22  administer a system of training, continuing education, and
   6-23  certification for state agency purchasing personnel. The commission
   6-24  may adopt rules to administer this section, including rules
   6-25  relating to monitoring certified purchaser's compliance with the
   6-26  continuing education requirements of this section.
   6-27        (b)  All state agency purchasing personnel must receive the
    7-1  training and continuing education to the extent required by rule of
    7-2  the  commission.  A state agency employee who is required by rule
    7-3  of the commission to receive the training or continuing education
    7-4  may not participate in purchases by the employing agency unless the
    7-5  employee has received the required  training.
    7-6        (c)  The commission shall set and collect a fee from state
    7-7  agencies that employ purchasing personnel who are trained,
    7-8  educated, or certified under this section. The commission shall set
    7-9  the fee in an amount that recovers the commission's costs under
   7-10  this section.
   7-11        (d)  The commission may provide training, continuing
   7-12  education, and certification under this section to purchasing
   7-13  personnel employed by a political subdivision or other public
   7-14  entity of the state. Political subdivision purchasing personnel may
   7-15  receive, but are not required  to receive, the training, continuing
   7-16  education, or certification provided under this section. The
   7-17  commission shall collect the fees described by Subsection (c) for
   7-18  training, education, or certification under this subsection.
   7-19        (e)  The commission may provide training and continuing
   7-20  education under this section using its own personnel and through
   7-21  contracts with private or public entities.
   7-22        (f)  The commission shall provide at least three levels of
   7-23  training under this section.
   7-24        (g)  The basic training level must include an introduction to
   7-25  contract purchasing methods and processes and informal bidding
   7-26  processes, practical instruction in the use of automated
   7-27  information tools used in the purchasing process, instruction in
    8-1  receipting and payment processes and requirements, an introduction
    8-2  to historically underutilized business programs and issues,
    8-3  instruction in documenting a purchasing file, an introduction to
    8-4  relevant ethical issues including an introduction to relevant
    8-5  provisions of Chapter 572, Government Code, and Chapters 36 and 39,
    8-6  Penal Code, and instruction in any other processes and issues that
    8-7  the commission considers appropriate for introductory purchasing
    8-8  training.
    8-9        (h)  The second training level must include advanced
   8-10  instruction in formal and informal bidding methods, an introduction
   8-11  to negotiation methods and to when negotiation is allowed,
   8-12  instruction in writing specifications, instruction in the criteria
   8-13  for determining which product or service offers the best value for
   8-14  the state, more advanced instruction in documenting a purchasing
   8-15  file, instruction in the use of electronic bulletin boards in
   8-16  public purchasing, an introduction to evaluating vendors, more
   8-17  advanced instruction in historically underutilized business
   8-18  programs and issues, a review and more advanced instruction in
   8-19  relevant ethical issues, and instruction in any other processes and
   8-20  issues that the commission considers appropriate for the second
   8-21  level of purchasing training.
   8-22        (i)  The third training level must include instruction in
   8-23  complex negotiations, instruction in purchasing through the use of
   8-24  requests for proposals, and instruction in any other processes and
   8-25  issues that the commission considers appropriate for advanced
   8-26  purchasing training.
   8-27        (j)  The commission may prescribe the circumstances under
    9-1  which a state agency may delegate authority to approve purchases.
    9-2        (k)  The commission shall provide at least two levels of
    9-3  certification under this section.
    9-4        (l)  The commission shall require 24 hours of continuing
    9-5  education each year to maintain a certification level. The
    9-6  commission may allow attendance at training classes offered under
    9-7  this section to count toward the continuing education requirement.
    9-8        (m)  The commission's prerequisites for receiving a level one
    9-9  purchaser certification must include completion of the second
   9-10  training level, passage of a written examination, and a minimum
   9-11  number of years of purchasing experience prescribed by the
   9-12  commission. Level one certified purchasers must be able to:
   9-13              (1)  manage formal and informal bidding procedures;
   9-14              (2)  prepare complex specifications that include the
   9-15  criteria the agency will use to determine the best value for the
   9-16  state;
   9-17              (3)  negotiate, when negotiation is allowed, price,
   9-18  delivery terms, and service or maintenance requirements for all
   9-19  types of products, including automated information systems
   9-20  purchased through the catalogue purchasing procedure; and
   9-21              (4)  establish contracts.
   9-22        (n)  The commission's prerequisites for receiving a level two
   9-23  purchaser certification must include completion of the third
   9-24  training level, passage of a written and an oral examination, and a
   9-25  minimum of three years of purchasing experience.
   9-26        Sec. 3.063.  PURCHASING PARTNERSHIPS BETWEEN AGENCIES.  (a)
   9-27  The commission shall manage a program that provides for
   10-1  establishing purchasing partnerships between state agencies under
   10-2  which one agency will make certain purchases for another agency.
   10-3  An agency is not required to enter into a purchasing partnership
   10-4  under this section.
   10-5        (b)  The commission shall identify agencies that are willing
   10-6  to enter into purchasing partnerships with another agency and
   10-7  attempt to appropriately match agencies for a purchasing
   10-8  partnership based on factors such as whether an agency employs a
   10-9  certified purchaser, the number and expertise of an agency's
  10-10  certified purchasers, the strategic mission of an agency, the
  10-11  existence or nature of an agency's automated purchasing tools, and
  10-12  the types of goods and services typically purchased by an agency.
  10-13        Sec. 3.064.  BUYING UNDER CONTRACT ESTABLISHED BY AGENCY
  10-14  OTHER THAN COMMISSION.  (a)  The commission shall adopt rules
  10-15  specifying the circumstances under which it is advantageous for the
  10-16  state to allow an agency to purchase goods or services under a
  10-17  contract made by another agency other than the commission.
  10-18        (b)  A state agency that is a party to a contract with a
  10-19  vendor who is able to supply goods or services to other agencies
  10-20  under the contract shall, if commission rules allow other agencies
  10-21  to make purchases under the contract:
  10-22              (1)  inform the commission of the terms of the contract
  10-23  and the capabilities of the vendor; and
  10-24              (2)  post notice of the existence and terms of the
  10-25  contract on the procurement marketplace.
  10-26        SECTION 6.  Section 3.08, State Purchasing and General
  10-27  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   11-1  amended to read as follows:
   11-2        Sec. 3.08.  PURCHASES LESS THAN A SPECIFIED MONETARY AMOUNT.
   11-3  (a)  State agencies are delegated the authority to purchase
   11-4  supplies, materials, and equipment if the purchase does not exceed
   11-5  $25,000 <$5,000, although an agency may continue to use the
   11-6  commission's services for those purchases>.  The commission by rule
   11-7  shall prescribe procedures for these purchases.
   11-8        (b)  The commission<, and> by rule may delegate to state
   11-9  agencies the authority to purchase supplies, materials, or
  11-10  equipment if the purchase exceeds $25,000 <$5,000>. In delegating
  11-11  purchasing authority under this subsection or Section 3.06(b) of
  11-12  this Act, the commission shall consider factors relevant to a state
  11-13  agency's ability to perform purchasing functions, including:
  11-14              (1)  the capabilities of the agency's purchasing staff
  11-15  and the existence of automated purchasing tools at the agency;
  11-16              (2)  the certification levels held by the agency's
  11-17  purchasing personnel;
  11-18              (3)  the existence of recent satisfactory audits of the
  11-19  agency's purchasing practices;
  11-20              (4)  the agency's compliance with the state's
  11-21  purchasing programs for historically underutilized businesses and
  11-22  the agency's good faith efforts to meet the state's purchasing
  11-23  goals for historically underutilized businesses; and
  11-24              (5)  whether the agency has adopted and published
  11-25  satisfactory protest procedures as part of its purchasing
  11-26  practices.
  11-27        (c)  The commission shall monitor the purchasing practices of
   12-1  state agencies that are making delegated purchases under Subsection
   12-2  (b) of this section or Section 3.06(b) of this Act to ensure that
   12-3  the certification levels of the agency's purchasing personnel and
   12-4  the quality of the agency's purchasing practices continue to
   12-5  warrant the extent to which the commission has delegated purchasing
   12-6  authority to the agency. The commission may revoke for cause all or
   12-7  part of the purchasing authority that the commission delegated to a
   12-8  state agency. The commission shall adopt rules to administer this
   12-9  subsection.
  12-10        (d) <(b)>  The commission by rule may delegate to the
  12-11  comptroller the commission's authority under Section 3.15 to audit
  12-12  purchases and purchase data when the purchases do not exceed $500
  12-13  or a greater amount prescribed by the commission.
  12-14        (e) <(c)>  Competitive bidding, whether formal or informal,
  12-15  is not required for a purchase by a state agency if the purchase
  12-16  does not exceed $2,500 <$1,000>, or a greater amount prescribed by
  12-17  rule of the commission.
  12-18        (f) <(d)>  Supplies or materials purchased under this section
  12-19  may not include:
  12-20              (1)  items for which contracts have been awarded under
  12-21  the contract purchase procedure, unless the quantity purchased is
  12-22  less than the minimum quantity specified in the contract;
  12-23              (2)  any item required by statute to be purchased from
  12-24  a particular source; or
  12-25              (3)  scheduled items that have been designated for
  12-26  purchase by the commission.
  12-27        (g) <(e)>  Large purchases may not be divided into small lot
   13-1  purchases in order to meet the specified dollar limits.  The
   13-2  commission may not require that unrelated purchases be combined
   13-3  into one purchase order in order to exceed the specified dollar
   13-4  limits.
   13-5        (h) <(f)>  Agencies making purchases under this section for
   13-6  which competitive bidding is required must attempt to obtain at
   13-7  least three competitive bids from sources which normally offer for
   13-8  sale the merchandise being purchased and must comply with Section
   13-9  3.101 of this article.
  13-10        SECTION 7.  Section 3.101, State Purchasing and General
  13-11  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  13-12  amended by adding Subsections (k) and (l) to read as follows:
  13-13        (k)  The commission shall require information about an
  13-14  applicant's past history as a vendor with the state in the
  13-15  commission's uniform registration form, including information about
  13-16  the persons who own or control the applicant and information about
  13-17  any vendor history the applicant or the persons who own or control
  13-18  the applicant may have from doing business with the state under
  13-19  other names.
  13-20        (l)  The commission shall include in the commission's uniform
  13-21  registration form a statement about the applicability of relevant
  13-22  criminal law, including Section 37.10, Penal Code, to entering
  13-23  information on the form and to presenting documentation in
  13-24  connection with the form.  The commission shall refer any suspected
  13-25  violations of relevant criminal law, including Section 37.10, Penal
  13-26  Code, related to entering information on the form or presenting
  13-27  documentation in connection with the form to the appropriate legal
   14-1  authorities for investigation or prosecution.
   14-2        SECTION 8.  Article 3, State Purchasing and General Services
   14-3  Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
   14-4  adding Sections 3.103 and 3.104 to read as follows:
   14-5        Sec. 3.103.  BEST VALUE STANDARD FOR PURCHASE OF GOODS OR
   14-6  SERVICES.  (a)  Each state agency, including the commission, shall
   14-7  purchase goods and services that provide the best value for the
   14-8  state.
   14-9        (b)  In determining the best value for the state, the
  14-10  commission or other state agency making a purchase is not
  14-11  restricted to considering the purchase price alone, but subject to
  14-12  Section 3.104 of this Act may also consider any other factor
  14-13  relevant to evaluating the value to the state of a good or service,
  14-14  including:
  14-15              (1)  installation costs;
  14-16              (2)  life-cycle costs;
  14-17              (3)  the quality, availability, adaptability, and
  14-18  reliability of the good or service;
  14-19              (4)  the delivery terms;
  14-20              (5)  indicators of probable vendor performance under
  14-21  the contract such as past vendor performance, the vendor's
  14-22  financial resources, skill, and ability to perform, the vendor's
  14-23  experience, responsibility, and reputation, the vendor's previous
  14-24  and existing compliance with laws that relate to providing the good
  14-25  or service, and the vendor's ability to provide reliable
  14-26  maintenance and support;
  14-27              (6)  the number and scope of conditions attached to a
   15-1  vendor's bid or proposal;
   15-2              (7)  the cost of any employee training associated with
   15-3  a purchase;
   15-4              (8)  the effect of a purchase on agency productivity;
   15-5  and
   15-6              (9)  factors relevant to determining the best value for
   15-7  the state in the context of a particular purchase.
   15-8        Sec. 3.104.  REQUIREMENT TO SPECIFY VALUE FACTORS IN REQUEST
   15-9  FOR BIDS OR PROPOSALS.  (a)  For a purchase made through
  15-10  competitive bidding, the commission or other state agency making
  15-11  the purchase must specify in the request for bids the factors other
  15-12  than price,  past vendor performance, or vendor reputation that the
  15-13  commission or agency will consider in determining which bid offers
  15-14  the best value for the state.
  15-15        (b)  For a purchase made through competitive sealed
  15-16  proposals, the commission or other state agency making the
  15-17  purchase:
  15-18              (1)  must specify in the request for proposals the
  15-19  known  factors other than price, past vendor performance, or vendor
  15-20  reputation that the commission or agency will consider in
  15-21  determining which proposal offers the best value for the state; and
  15-22              (2)  may concurrently inform each vendor that made a
  15-23  proposal on the contract of any additional factors the commission
  15-24  or agency will consider in determining which proposal offers the
  15-25  best value for the state if the commission or other agency
  15-26  determines after opening the proposals that additional factors not
  15-27  covered under Subdivision (1) of this subsection are relevant in
   16-1  determining which proposal offers the best value for the state.
   16-2        SECTION 9.  Sections 3.11(b), (d), (e), (f), (g), and (h),
   16-3  State Purchasing and General Services Act (Article 601b, Vernon's
   16-4  Texas Civil Statutes), are amended to read as follows:
   16-5        (b)  Bidders List.  The commission shall maintain a bidders
   16-6  list and shall add or delete names from the list by the application
   16-7  and utilization of applicable standards set forth in Subsection (e)
   16-8  of this section.  Bid invitations shall be sent only to those who
   16-9  have expressed a desire to bid on the particular types of items
  16-10  which are the subject of the bid invitation.  Use of the bidders
  16-11  list shall not be confined to contract purchases but it may be used
  16-12  by the commission in making any purchase.  The commission shall
  16-13  inform applicants for the list about the applicability of relevant
  16-14  criminal law, including Section 37.10, Penal Code, to entering
  16-15  information on an application for inclusion on the list and to
  16-16  presenting documentation in connection with the application. The
  16-17  commission shall refer any suspected violations of relevant
  16-18  criminal law, including Section 37.10, Penal Code, related to
  16-19  entering information on an application for inclusion on the list or
  16-20  presenting documentation in connection with the application to the
  16-21  appropriate legal authorities for investigation or prosecution.
  16-22        (d)  Bid Opening Procedure.  Bids shall be submitted to the
  16-23  commission, sealed, and identified as bids on the envelope, except
  16-24  that when the commission considers that the electronic information
  16-25  capabilities of the state and of the vendor community are
  16-26  sufficient, the commission may also allow facsimile or on-line
  16-27  transmission of bids.  Bids shall be opened at the time and place
   17-1  stated in the public notices and the invitation to bid.  The state
   17-2  auditor or a member of his staff may be present at any bid opening.
   17-3  A tabulation of all bids received shall be available for public
   17-4  inspection under regulations to be established by the commission.
   17-5        (e)  Award of Contract.  The commission shall award contracts
   17-6  to the bidder offering the best value for the state while
   17-7  <submitting the lowest and best bid> conforming to the
   17-8  specifications required.  Complying with the specified time limit
   17-9  for submission of written data, samples, or models on or before bid
  17-10  opening time is essential to the materiality of a bid, provided,
  17-11  however, that the commission shall have the authority to waive this
  17-12  provision if the failure to comply is beyond control of the bidder.
  17-13  In determining which <who is the lowest and best> bidder offers the
  17-14  best value for the state, the commission may take into account the
  17-15  safety record of the bidder, or the firm, corporation, partnership,
  17-16  or institution represented by the bidder, or anyone acting for such
  17-17  firm, corporation, partnership, or institution, provided, however,
  17-18  that the commission has adopted a written definition and criteria
  17-19  for accurately determining the safety record of a bidder and has
  17-20  given notice to prospective bidders, in the bid specifications,
  17-21  that the safety record of a bidder may be considered in determining
  17-22  the <lowest and best> bidder offering the best value for the state
  17-23  and, provided further, that such determinations are not arbitrary
  17-24  and capricious.  The <In determining who is the lowest and best
  17-25  bidder, in addition to price, the> commission shall determine which
  17-26  bidder offers the best value for the state in accordance with
  17-27  Sections 3.103 and 3.104 of this Act <consider:>
   18-1              <(1)  the quality, availability, and adaptability of
   18-2  the supplies, materials, equipment, or contractual services, to the
   18-3  particular use required;>
   18-4              <(2)  the number and scope of conditions attached to
   18-5  the bid;>
   18-6              <(3)  the ability, capacity, and skill of the bidder to
   18-7  perform the contract or provide the service required;>
   18-8              <(4)  whether the bidder can perform the contract or
   18-9  provide the service promptly, or within the time required, without
  18-10  delay or interference;>
  18-11              <(5)  the character, responsibility, integrity,
  18-12  reputation, and experience of the bidder;>
  18-13              <(6)  the quality of performance of previous contracts
  18-14  or services;>
  18-15              <(7)  the previous and existing compliance by the
  18-16  bidder with laws relating to the contract or service;>
  18-17              <(8)  any previous or existing noncompliance by the
  18-18  bidder with specification requirements relating to time of
  18-19  submission of specified data such as samples, models, drawings,
  18-20  certificates, or other information;>
  18-21              <(9)  the sufficiency of the financial resources and
  18-22  ability of the bidder to perform the contract or provide the
  18-23  service; and>
  18-24              <(10)  the ability of the bidder to provide future
  18-25  maintenance, repair parts, and service for the use of the subject
  18-26  of the contract>.
  18-27        (f)  Rejection of Bids.  If a bid is submitted in which there
   19-1  is a material failure to comply with the specification
   19-2  requirements, such bid shall be rejected and the contract awarded
   19-3  to the bidder offering the best value for the state and <submitting
   19-4  the lowest and best bid> conforming to the specifications,
   19-5  provided, however, the commission shall in any event have the
   19-6  authority to reject all bids or parts of bids when the interest of
   19-7  the state will be served thereby.
   19-8        (g)  Bid Record.  When an award is made, a statement of the
   19-9  basis for placing the order with the successful bidder and the
  19-10  factors considered in determining which bidder offered the best
  19-11  value for the state <the lowest and best bid> shall be prepared by
  19-12  the purchasing division and filed with other papers relating to the
  19-13  transaction.
  19-14        (h)  Tie Bids.  In case of tie bids, the value to the state
  19-15  <quality and service> being equal, the contract shall be awarded
  19-16  under rules and regulations to be adopted by the commission.
  19-17        SECTION 10.  Sections 3.12(b), (c), (e), and (f), State
  19-18  Purchasing and General Services Act (Article 601b, Vernon's Texas
  19-19  Civil Statutes), are amended to read as follows:
  19-20        (b)  Minimum Number of Bids.  All open market purchases
  19-21  shall, whenever possible, be based on at least three competitive
  19-22  bids, and shall be awarded to the <lowest and best> bidder offering
  19-23  the best value for the state in accordance with the standards set
  19-24  forth under this article.
  19-25        (c)  Notice Inviting Bids.  The commission shall solicit bids
  19-26  by:
  19-27              (1)  direct mail request to prospective vendors; <or>
   20-1              (2)  telephone or telegraph;
   20-2              (3)  facsimile transmission;
   20-3              (4)  on-line electronic transmission; or
   20-4              (5)  posting on an electronic bulletin board.
   20-5        (e)  Agency Review.  If a state agency requests that it be
   20-6  allowed to review the bids on a purchase request, the commission
   20-7  shall forward copies of the bids received or make the same
   20-8  available to the requesting agency along with the commission's
   20-9  recommended award.  If, after review of the bids and evaluation of
  20-10  the quality of products offered in the bids, the state agency
  20-11  determines that the bid selected by the commission does <is> not in
  20-12  its opinion offer the best value for the state <the lowest and best
  20-13  bid>, it may file with the commission a written recommendation,
  20-14  complete with justification, that the award be made to the bidder
  20-15  determined to offer the best value for the state <be the lowest and
  20-16  best bid>.  The commission shall give consideration to, but is not
  20-17  bound by, the agency recommendation in making the award.
  20-18        (f)  Statement of Award.  A statement of the basis for
  20-19  placing the order with the successful bidder and the factors
  20-20  considered in determining the <lowest and best> bid offering the
  20-21  best value for the state shall be prepared by the purchasing
  20-22  division and filed with other papers relating to the transaction.
  20-23        SECTION 11.  Section 3.16, State Purchasing and General
  20-24  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  20-25  amended by amending Subsection (a) and adding Subsections (c) and
  20-26  (d) to read as follows:
  20-27        (a)  After the comptroller and the commission have approved
   21-1  financial data and purchase data, when such advance approval is
   21-2  required by the rules of the commission, the comptroller shall draw
   21-3  a warrant upon the state treasury for the amount due on the invoice
   21-4  or for so much thereof as has been allowed. The comptroller may
   21-5  issue the warrant directly to the vendor.  The comptroller, when
   21-6  appropriate, may combine into a single warrant payments that the
   21-7  state owes to a vendor under more than one invoice, including
   21-8  payments to the vendor made on behalf of more than one state
   21-9  agency.
  21-10        (c)  The comptroller may allow a state agency to schedule
  21-11  payments that the comptroller will make to a vendor. The
  21-12  comptroller shall prescribe the circumstances under which advance
  21-13  scheduling of payments is appropriate.
  21-14        (d)  The comptroller may require vendors to provide payment
  21-15  addresses, vendor identification numbers, and other account
  21-16  information directly to the comptroller.
  21-17        SECTION 12.  Section 3.17(a), State Purchasing and General
  21-18  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  21-19  amended to read as follows:
  21-20        (a)  The commission shall have the authority to establish and
  21-21  maintain a specifications and standards program to coordinate the
  21-22  establishment and maintenance of uniform standards and
  21-23  specifications for materials, supplies, and equipment purchased by
  21-24  the commission.  The commission shall enlist the cooperation of
  21-25  other state agencies, the advisory committee on procurement, and
  21-26  the vendor advisory committee in the establishment, maintenance,
  21-27  and revision of uniform standards and specifications and shall
   22-1  encourage and foster the use of standard specifications in order
   22-2  that the most efficient purchase of materials, supplies, and
   22-3  equipment may be continuously accomplished.
   22-4        SECTION 13.  Section 3.20, State Purchasing and General
   22-5  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   22-6  amended to read as follows:
   22-7        Sec. 3.20.  PREFERENCE FOR PRODUCTS OF RETARDED OR
   22-8  HANDICAPPED PERSONS.  The products of workshops, organizations, or
   22-9  corporations whose primary purpose is training and employing
  22-10  mentally retarded or physically handicapped persons shall be given
  22-11  preference if they meet state specifications as to quantity,
  22-12  quality, delivery, and price. The commission shall test the
  22-13  products in accordance with Section 3.17 of this Act to the extent
  22-14  necessary to ensure quality.  The commission shall consider product
  22-15  quality and delivery performance in agreeing to the price for
  22-16  products purchased under this section.
  22-17        SECTION 14.  Section 3.22, State Purchasing and General
  22-18  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  22-19  amended to read as follows:
  22-20        Sec. 3.22.  EXEMPTION OF GOODS OR SERVICES OF BLIND PERSONS.
  22-21  The provisions of this article with respect to competitive bids are
  22-22  not applicable to state purchases of blind-made goods or services
  22-23  offered for sale to state agencies as a result of efforts made by
  22-24  the Texas Committee on Purchases of Blind-Made Goods and Services
  22-25  acting in accordance with legislation applicable to the committee
  22-26  if the goods or services meet state specifications as to delivery,
  22-27  quantity, and quality and the cost is not in excess of the fair
   23-1  market price of like items. The commission shall test the goods or
   23-2  services in accordance with Section 3.17 of this Act to the extent
   23-3  necessary to ensure quality. The commission shall consider product
   23-4  or service quality and delivery performance in agreeing to the
   23-5  price for goods or services purchased under this section.
   23-6        SECTION 15.  Section 3.23, State Purchasing and General
   23-7  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   23-8  amended to read as follows:
   23-9        Sec. 3.23.  CONTRACTS WITH DEPARTMENT OF CRIMINAL JUSTICE.
  23-10  The commission is authorized to make contracts with the Texas
  23-11  Department of Criminal Justice for the purchase of supplies,
  23-12  equipment, services, and materials for use by other state agencies.
  23-13  The commission shall test the supplies, equipment, services, and
  23-14  materials in accordance with Section 3.17 of this Act to the extent
  23-15  necessary to ensure quality. The commission shall consider product
  23-16  or service quality and delivery performance in agreeing to the
  23-17  price for supplies, equipment, services, and materials purchased
  23-18  under this section.
  23-19        SECTION 16.  Article 3, State Purchasing and General Services
  23-20  Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
  23-21  adding Sections 3.34 and 3.35 to read as follows:
  23-22        Sec. 3.34.  ADVISORY COMMITTEE ON PROCUREMENT.  (a)  The
  23-23  commission shall establish an advisory committee on procurement.
  23-24  The purpose of the committee is to represent before the commission
  23-25  the state agency purchasing community and the political
  23-26  subdivisions that use the commission's purchasing services.
  23-27        (b)  The committee is composed of officers or employees of
   24-1  state agencies, including institutions of higher education, and
   24-2  political subdivisions who are invited by the commission to serve
   24-3  on the committee. The commission shall invite officers and
   24-4  employees who are experienced in public purchasing, in public
   24-5  finance, or who possess other appropriate expertise to serve on the
   24-6  committee. Service on the committee is an additional duty of the
   24-7  member's public office or employment. Article 6252-33, Revised
   24-8  Statutes, does not apply to the size or composition of the
   24-9  committee. The commission shall set staggered terms for the members
  24-10  of the committee.
  24-11        (c)  The committee may establish its own rules of operation.
  24-12        (d)  The committee shall recommend improvements in commission
  24-13  or state agency purchasing practices to the commission. The
  24-14  committee shall review and comment on findings and recommendations
  24-15  related to purchasing that are made by state agency internal
  24-16  auditors or by the state auditor.
  24-17        Sec. 3.35.  VENDOR ADVISORY COMMITTEE.  (a)  The commission
  24-18  shall establish a vendor advisory committee. The purpose of the
  24-19  committee is to represent before the commission the vendor
  24-20  community, to provide information to vendors, and to obtain vendor
  24-21  input on state procurement practices.
  24-22        (b)  The committee is composed of vendors who have done
  24-23  business with the state who are invited by the commission to serve
  24-24  on the committee. The commission shall invite a cross-section of
  24-25  the vendor community to serve on the committee, inviting both large
  24-26  and small businesses, both historically underutilized businesses
  24-27  and businesses that are not historically underutilized businesses,
   25-1  and vendors who provide a variety of different goods and services
   25-2  to the state.  Article 6252-33, Revised Statutes, does not apply to
   25-3  the size or composition of the committee. The commission shall set
   25-4  staggered terms for the members of the committee.
   25-5        (c)  The committee may establish its own rules of operation,
   25-6  but shall post notice of and hold its meetings in accordance with
   25-7  the open meetings law, Chapter 551, Government Code.
   25-8        SECTION 17.  Article 11, State Purchasing and General
   25-9  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  25-10  amended by adding Sections 11.08-11.11 to read as follows:
  25-11        Sec. 11.08.  ELECTRONIC BULLETIN BOARD POSTING OF NOTICE FOR
  25-12  PROCUREMENTS EXCEEDING $25,000.  (a)  This section applies to each
  25-13  state agency making a procurement that will exceed $25,000 in
  25-14  value:
  25-15              (1)  without regard to the source of funds the agency
  25-16  will use for the procurement; and
  25-17              (2)  including a procurement that:
  25-18                    (A)  is a procurement by a state agency but is
  25-19  otherwise exempt from the commission's purchasing authority or the
  25-20  application of this Act;
  25-21                    (B)  is made under delegated purchasing
  25-22  authority;
  25-23                    (C)  is related to a construction project; or
  25-24                    (D)  is a procurement of  professional or
  25-25  consulting services.
  25-26        (b)  The commission shall send to the comptroller for posting
  25-27  on the comptroller's Windows on State Government electronic
   26-1  bulletin board information as prescribed by this section about
   26-2  commission or other state agency procurements that will exceed
   26-3  $25,000 in value.  The commission may also send to the comptroller
   26-4  for posting on the electronic bulletin board other information
   26-5  relating to the business activity of the state that the commission
   26-6  considers to be of interest to the public. The commission shall
   26-7  send the information in a format agreed to by the comptroller.
   26-8        (c)  The commission shall include in the information sent to
   26-9  the comptroller, to the extent it is feasible and cost-effective,
  26-10  the following information for each procurement that the commission
  26-11  or another state agency will make that is estimated to exceed
  26-12  $25,000 in value:
  26-13              (1)  a description of the goods or services to be
  26-14  procured;
  26-15              (2)  the estimated quantity of goods or services to be
  26-16  procured;
  26-17              (3)  the bid or proposal opening date; and
  26-18              (4)  the name, business mailing address, and business
  26-19  telephone number of the commission employee or other state agency
  26-20  employee a person can contact to obtain all necessary information
  26-21  related to making a bid or proposal or other applicable expression
  26-22  of interest for the procurement contract.
  26-23        (d)  Each state agency that will award a procurement contract
  26-24  estimated to exceed $25,000 in value shall send to the commission:
  26-25              (1)  the information the commission requires for
  26-26  posting on the comptroller's electronic bulletin board under this
  26-27  section; and
   27-1              (2)  a notice when the procurement contract has been
   27-2  awarded.
   27-3        (e)  The commission may adopt rules, prescribe forms, and
   27-4  require information to administer this section.
   27-5        (f)  The requirements of this section are in addition to the
   27-6  requirements of other law relating to the solicitation of bids,
   27-7  proposals, or expressions of interest for a procurement by the
   27-8  commission or another state agency.  This section does not affect
   27-9  whether the commission or other state agency is required to award a
  27-10  procurement contract through competitive bidding, competitive
  27-11  sealed proposals, or another method.
  27-12        Sec. 11.09.  ELECTRONIC PROCUREMENT DATABASE.  (a) The
  27-13  commission shall establish and manage an electronic procurement
  27-14  database. The commission may enter into contracts with private or
  27-15  public entities to establish or maintain all or part of the
  27-16  database.
  27-17        (b)  The commission may maintain in the database information
  27-18  related to state procurement that the commission considers to be
  27-19  useful.  The database must contain:
  27-20              (1)  information about vendors, including information
  27-21  from the centralized master bidders list and vendor performance
  27-22  information;
  27-23              (2)  information about products, including product
  27-24  testing results; and
  27-25              (3)  information that relates to commission and other
  27-26  state agency purchasing contracts and that can be entered into the
  27-27  database electronically without the need for duplicate data entry.
   28-1        (c)  The commission may require information from a state
   28-2  agency for inclusion in the database.
   28-3        (d)  The commission shall make the database available to
   28-4  state agencies and political subdivisions through the procurement
   28-5  marketplace.
   28-6        Sec. 11.10.  ELECTRONIC PROCUREMENT MARKETPLACE.  (a) The
   28-7  commission shall establish and manage an electronic procurement
   28-8  marketplace through which the commission and state agencies may:
   28-9              (1)  communicate information relevant to the state's
  28-10  procurement of goods and services; and
  28-11              (2)  conduct elements of purchasing transactions within
  28-12  state government electronically to the extent that it is feasible
  28-13  and cost-effective to do so.
  28-14        (b)  The commission shall design the procurement marketplace
  28-15  as an interactive gateway between all state databases that relate
  28-16  to procurement, including databases that contain information about
  28-17  the availability of surplus property. The commission shall define
  28-18  standards, including keyword and product code standards, for the
  28-19  procurement marketplace.
  28-20        (c)  The commission may adopt rules relating to the design
  28-21  and use of the procurement marketplace, including rules that
  28-22  require state agencies to provide information for or receive
  28-23  information from the procurement marketplace. A state agency must
  28-24  first check the procurement marketplace to determine the most
  28-25  appropriate method for acquiring a good or service before the
  28-26  agency develops a contract for or makes an open market purchase of
  28-27  the good or service.
   29-1        (d)  The commission shall make state procurement information
   29-2  available to political subdivisions through the procurement
   29-3  marketplace on a fee-for-service basis. The commission shall set
   29-4  the fees in an amount that recovers the state's costs in providing
   29-5  the access to a political subdivision.
   29-6        Sec. 11.11.  ELECTRONIC COMMERCE NETWORK USING ELECTRONIC
   29-7  DATA INTERCHANGE.  (a)  The commission shall establish and manage
   29-8  an  electronic commerce network under which the state's purchasing
   29-9  transactions with vendors can be accomplished electronically by
  29-10  means of facsimile transmissions and on-line transmission of
  29-11  necessary information. The commission shall base the network on the
  29-12  standard data protocol developed by the American National Standards
  29-13  Institute known as electronic data interchange.
  29-14        (b)  The commission may enter into contracts with one or more
  29-15  public or private entities to establish or support various elements
  29-16  of the network. The commission may provide for a gateway between
  29-17  the procurement marketplace and the electronic commerce network so
  29-18  that the elements of a procurement transaction that are within
  29-19  state government and the elements of a procurement transaction that
  29-20  involve communication with a vendor may all be accomplished
  29-21  electronically.
  29-22        (c)  Each state agency that is capable of participating in
  29-23  the electronic commerce network must participate in the network and
  29-24  participate in contracts entered into by the commission for the
  29-25  establishment or support of the network. The commission shall
  29-26  charge an agency a fee for network services provided to the agency
  29-27  by the commission and require an agency to pay a fee to a
   30-1  contractor for network services provided to the agency by the
   30-2  contractor, so that the cost of providing network services to an
   30-3  agency is paid by the agency.
   30-4        (d)  The commission may allow political subdivisions and
   30-5  other public entities to participate in the electronic commerce
   30-6  network. The commission shall provide that a participating
   30-7  political subdivision is charged fees for network services provided
   30-8  to the political subdivision in the same manner that participating
   30-9  state agencies are charged fees under Subsection (c) of this
  30-10  section.
  30-11        (e)  The commission may:
  30-12              (1)  adopt rules to administer this section; and
  30-13              (2)  require participating state agencies, political
  30-14  subdivisions, and other public entities to designate a network
  30-15  coordinator.
  30-16        SECTION 18.  Article 15, State Purchasing and General
  30-17  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  30-18  amended by adding Section 15.11 to read as follows:
  30-19        Sec. 15.11.  CONSOLIDATING OR CONTRACTING FOR MATERIALS
  30-20  MANAGEMENT FUNCTIONS.  (a)  The council shall study the materials
  30-21  management functions of state agencies. When the council determines
  30-22  a course of action that will more effectively or efficiently
  30-23  accomplish an agency's materials management functions, the council
  30-24  may:
  30-25              (1)  order two or more state agencies to consolidate
  30-26  between them warehousing, inventory control, or other materials
  30-27  management functions; or
   31-1              (2)  order a state agency to obtain under a contract
   31-2  with another state agency or a private commercial source the
   31-3  agency's warehousing, inventory control, or other materials
   31-4  management functions.
   31-5        (b)  State agencies shall consolidate or contract for
   31-6  materials management functions in the manner directed by the
   31-7  council.
   31-8        SECTION 19.  Section 321.013, Government Code, is amended by
   31-9  adding Subsection (k) to read as follows:
  31-10        (k)  The State Auditor shall periodically conduct a
  31-11  compliance audit and other appropriate audits of the purchasing
  31-12  practices of each state agency, including each institution of
  31-13  higher education.  The audits must include an audit of the state
  31-14  agency's compliance with applicable provisions of the state's
  31-15  program to assist historically underutilized businesses to
  31-16  participate in state contracting opportunities. In planning an
  31-17  audit under this subsection, the State Auditor shall consider
  31-18  issues raised by the General Services Commission or the comptroller
  31-19  relating to the state agency's purchasing practices together with
  31-20  the agency's response to the commission or the comptroller.
  31-21        SECTION 20.  Chapter 2102, Government Code, is amended by
  31-22  adding Section 2102.013 to read as follows:
  31-23        Sec. 2102.013.  AUDITING OF AGENCY PURCHASING PRACTICES.  (a)
  31-24  The internal auditor shall frequently audit the purchasing
  31-25  practices of the state agency. The audits must include an audit of
  31-26  the state agency's compliance with applicable provisions of the
  31-27  state's program to assist historically underutilized businesses to
   32-1  participate in state contracting opportunities.
   32-2        (b)  The internal auditor shall investigate any exceptions or
   32-3  issues raised by the General Services Commission or the comptroller
   32-4  relating to the state agency's purchasing practices and, if
   32-5  possible, report the findings of the investigation to the
   32-6  administrator before the administrator responds to the commission
   32-7  or the comptroller.
   32-8        (c)  The administrator shall report the results of the audits
   32-9  and investigations performed by the internal auditor under this
  32-10  section, together with the administrator's response to any
  32-11  exceptions or issues raised by the General Services Commission or
  32-12  the comptroller relating to the state agency's purchasing
  32-13  practices, to the state auditor, the comptroller, and the General
  32-14  Services Commission.
  32-15        SECTION 21.  (a) Section 2251.026, Government Code, is
  32-16  amended to read as follows:
  32-17        Sec. 2251.026.  PAYMENT OF INTEREST BY STATE AGENCY.  (a)  If
  32-18  the warrant for a payment the originating state agency owes is not
  32-19  mailed or electronically transmitted before the payment is overdue,
  32-20  the agency is liable for an interest payment that accrues under
  32-21  this chapter.
  32-22        (b)  The comptroller shall compute interest imposed on the
  32-23  state agency under this chapter.
  32-24        (c)  The comptroller shall pay the interest at the time
  32-25  payment is made on the principal.
  32-26        (d)  The comptroller shall submit the interest payment with
  32-27  the net amount due for goods and services.
   33-1        (e)  The comptroller and the state agency may not require a
   33-2  vendor to petition, bill, or wait an additional day to receive the
   33-3  interest due.
   33-4        (f)  The comptroller may require necessary and timely
   33-5  information and adopt rules to administer this section.
   33-6        (b)  This section takes effect September 1, 1997. The change
   33-7  in law made by this section applies only to interest on a payment
   33-8  by a state agency that becomes overdue under Chapter 2251,
   33-9  Government Code, on or after that date. Interest on a payment by a
  33-10  state agency that becomes overdue under Chapter 2251, Government
  33-11  Code, before that date is governed by Section 2251.026, Government
  33-12  Code, as it exists on the date the payment becomes overdue, and the
  33-13  prior law is continued in effect for this purpose.
  33-14        SECTION 22.  (a)  The state auditor and the advisory
  33-15  committee on procurement established by this Act shall study how
  33-16  the classification levels of state agency purchasing personnel
  33-17  should be revised to reflect the increased levels of responsibility
  33-18  and accountability given to state agency purchasing personnel under
  33-19  the changes in law made by this Act. The state auditor and the
  33-20  committee should consider how best to provide purchasing personnel
  33-21  with a pay scale and a career path, including goals, incentives,
  33-22  and initiatives, commensurate with the purchaser's knowledge,
  33-23  authority, and responsibility.
  33-24        (b)  The state auditor and the committee shall present their
  33-25  written recommendations and the results of their study to the
  33-26  legislature not later than November 1, 1996.
  33-27        SECTION 23.  The commission may conduct pilot studies of
   34-1  regional contracts and no-stock contracts.
   34-2        SECTION 24.  The Legislative Budget Board and the division of
   34-3  the governor's office that works with budget and planning issues
   34-4  shall study and consider:
   34-5              (1)  ways to obtain information about planned state
   34-6  procurements as part of the reporting and information gathering
   34-7  functions of the state's appropriations process; and
   34-8              (2)  ways to use that information to increase the
   34-9  state's buying power.
  34-10        SECTION 25.  The General Services Commission shall gradually
  34-11  phase in, in the most cost-effective manner and in accordance with
  34-12  available appropriations, the changes in law made by this Act that
  34-13  require the establishment of electronic or automated marketplaces,
  34-14  networks, or databases.
  34-15        SECTION 26.  Sections 3.0221 and 3.09(d), State Purchasing
  34-16  and General Services Act (Article 601b, Vernon's Texas Civil
  34-17  Statutes), are repealed.
  34-18        SECTION 27.  (a) Section 2251.041, Government Code, is
  34-19  repealed.
  34-20        (b)  This section takes effect September 1, 1997. The change
  34-21  in law made by this section applies only to interest on a payment
  34-22  by a state agency that becomes overdue under Chapter 2251,
  34-23  Government Code, on or after that date. Interest on a payment by a
  34-24  state agency that becomes overdue under Chapter 2251, Government
  34-25  Code, before that date is governed by Section 2251.041, Government
  34-26  Code, as it exists on the date the payment becomes overdue, and the
  34-27  prior law is continued in effect for this purpose.
   35-1        SECTION 28.  Except as otherwise provided by this Act, this
   35-2  Act takes effect September 1, 1995.
   35-3        SECTION 29.  The importance of this legislation and the
   35-4  crowded condition of the calendars in both houses create an
   35-5  emergency and an imperative public necessity that the
   35-6  constitutional rule requiring bills to be read on three several
   35-7  days in each house be suspended, and this rule is hereby suspended.