IMF C.S.S.B. 1380 75(R)BILL ANALYSIS STATE AFFAIRS C.S.S.B. 1380 By: Ellis (Hernandez) 5-9-97 Committee Report (Substituted) BACKGROUND Electronic methods could be used to increase the efficiency of the state's purchasing methods and abilities. Other states electronically publish proposed state purchases, and due to the large number of bids and proposals, such information would be useful to those wishing to contract with the State of Texas. PURPOSE As proposed, C.S.S.B. 1380 would require the Department of Commerce to publish proposed state purchase of over $25,000 in a business daily. The Department of Commerce would be required to make the daily available electronically. 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 quantity of goods to be procured -if applicable, the previous price paid for the goods or service to be procured; -the estimated date of needed delivery; and -the name and mailing address of the contact person at the agency. Section 2155.074(h) requires a state agency to continue to perform certain functions relating to the posting of a procurement. Section 2155.074(i) prohibits a state agency from awarding a contract for at least 21 days after placing notice of the procurement in the business daily; and for at least 15 days after posting the entire bid. This subsection and subsection (g) do not apply in emergency situations. Section 2155.074(j) provides that a contract or procurement award made by a state agency that violates certain requirements is 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, and it must send any proposed rules to listed government officials. 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. Deletes Sec. 215.074(g)(3) that required state agencies to post what the anticipated cost of procurement would be. Makes technical changes that require a state agency to post in the business daily either the entire bid or a notice. Changes the 15 calendar days notice posting period in Sec. 215.074(h)-(i) to 21 calendar days.