IMF H.B. 319 75(R)BILL ANALYSIS STATE AFFAIRS H.B. 319 By: Hernandez 5-2-97 Committee Report (Substituted) BACKGROUND Electronic methods could be used to increase the efficiency of the state's purchasing methods and abilities. PURPOSE As proposed, C.S.H.B. 319 would require the Department of Commerce to publish every proposed state purchase of over $25,000 in a business daily. The proposed purchase would be published every day for 15 days. The Department of Commerce would be required to make the daily available electronically at cost. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is granted to Texas Department of Commerce in SECTION 1 (Sec. 2155.074(l) Government Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter B, Chapter 2155 of the Government Code by adding Section 2155.074 as follows: Section 2155.074(a) provides that this section applies to all state agency purchases. Section 2155.074(b) defines "department." Section 2155.074(c) requires the Texas Department of Commerce to electronically post a business daily that includes the following information: -any proposed purchase by a state agency over $25,000; -any other information concerning the business activity of the state the department determines is important to the public. Section 2155.074(d) requires the department to make the business daily available on the internet on the Texas Marketplace and requires each state agency to participate in the posting. Section 2155.074(e) allows state agencies to provide public access to the business daily at cost. Nongovernmental entities may use the information in the business daily to sell services that link possible vendors to state agencies requesting bids. Section 2155.074(f) prohibits the Department of Commerce or any state agency from charging a fee related to the preparing and gathering of the information placed in the business daily. Section 2155.074(g) the information in the business daily must include the following: -a description of the goods to be procured; -the last date on which bids will be accepted; -the estimated cost of the procurement; -the previous price paid for the good or service to be procured; -the estimated date of needed delivery; and -the name and mailing address of the person at the agency responsible for making the decision to purchase the good or service. Section 2155.074(h) requires the Department to continue to post the procurement and entire bid or proposal for 15 days after the notice is first posted. Section 2155.074(i) prohibits a state agency from awarding a contract for at least 15 days after placing notice of the procurement in the business daily. This subsection does not apply in emergency situations. Section 2155.074(j) makes any contract or procurement made in less than 15 days void. Section 2155.074(k) requires a state agency that intends to make a purchase of over $25,000 to send the Department of Commerce notice of the purchase, all required information, and notice of when the agency completes the purchase. Section 2155.074(l) allows the Department of Commerce to adopt rules to administer this section. Section 2155.074(m) provides that this section is in addition to other laws and does not supersede other law. SECTION 2. Makes this Act prospective. SECTION 3. Effective date; June 1, 1998. The Department of Commerce may start adopting rules beginning in September 1, 1997. SECTION 4. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE Amends relating clause. SECTION 1. Amends Section 2155.074(a), Government Code, to delete text which includes a procurement under this section that will exceed $25,000. (b) Adds Subsection (b) to define "department." Renumbers subsequent subsections accordingly. Transfers all responsibilities and duties given to the General Services Commission in the proposed version to the Texas Department of Commerce and state agencies in the substitute. Revises the subsections to reflect the change and adds new Subsections (e), (f), (h), (i), and (j) and redesignate proposed Subsections (i)-(k) as new Subsections (k)-(m) while making certain language changes throughout the substitute. Deletes proposed Subsections (b), (c), and (e) entirely. (c) Deletes proposed Subsection (c) to remove all references to a printed business daily. (d) Establishes the business daily in an electronic format and makes this format available over the Internet through certain information services only. (e) Sets forth provisions for certain business, governmental, and nongovernmental entities that do not have the technical means to access the business daily. (f) Prohibits the department or other state agency from collecting certain fees. (g) Sets forth a description of the information a state agency is required to post in the business daily. (h) Requires a state agency to continue to perform certain function relating to the business daily until a certain date. (i) Prohibits a state agency from awarding certain procurement contracts under certain conditions. (j) Provides that certain procurement contracts are void if they violate certain requirements. (k) Requires a state agency that awards a procurement contract that exceeds $25,000 to send the department certain information. (l) Authorizes the department to adopt certain rules, to prescribe certain forms, and to require certain information to administer this section. (m) Makes conforming changes. Adds SECTION 2 to make application of this Act prospective. Adds SECTION 3 to set forth the effective date and authorizes the department to adopt rules, procedures, and forms by a certain date. Adds SECTION 4; emergency clause.