75R13302 JRD-D                           

         By Hernandez                                           H.B. No. 319

         Substitute the following for H.B. No. 319:

         By Turner of Harris                                C.S.H.B. No. 319

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the creation of an electronic state business daily to

 1-3     give notice before a state agency makes a procurement with a value

 1-4     that exceeds $25,000.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Subchapter B, Chapter 2155, Government Code, is

 1-7     amended by adding Section 2155.074 to read as follows:

 1-8           Sec. 2155.074.  STATE BUSINESS DAILY; NOTICE REGARDING

 1-9     PROCUREMENTS EXCEEDING $25,000.  (a)  This section applies to each

1-10     state agency making a procurement that will exceed $25,000 in

1-11     value, without regard to the source of funds the agency will use

1-12     for the procurement, including a procurement that:

1-13                 (1)  is otherwise exempt from the commission's

1-14     purchasing authority or the application of this subtitle;

1-15                 (2)  is made under delegated purchasing authority;

1-16                 (3)  is related to a construction project; or

1-17                 (4)  is a procurement of  professional or consulting

1-18     services.

1-19           (b)  In this section, "department" means the Texas Department

1-20     of Commerce.

1-21           (c)  The department each business day shall produce and post

1-22     a business daily in an electronic format.  The department shall

1-23     post in the business daily information as prescribed by this

1-24     section about each state agency procurement that will exceed

 2-1     $25,000 in value.  The department shall also post in the business

 2-2     daily other information relating to the business activity of the

 2-3     state that the department considers to be of interest to the

 2-4     public.

 2-5           (d)  The department shall make the business daily available

 2-6     on the Internet through its information service known as the Texas

 2-7     Marketplace or through a suitable successor information service

 2-8     that will make the information available on the Internet.  The

 2-9     department and each state agency shall cooperate in making the

2-10     electronic business daily available.

2-11           (e)  To accommodate businesses that do not have the technical

2-12     means to access the business daily, governmental and

2-13     nongovernmental entities such as public libraries, chambers of

2-14     commerce, trade associations, small business development centers,

2-15     economic development departments of local governments, and state

2-16     agencies may provide public access to the business daily.  A

2-17     governmental entity may recover the direct cost of providing the

2-18     public access only by charging a fee for downloading procurement

2-19     notices and bid or proposal solicitation packages posted in the

2-20     business daily.  A nongovernmental entity may use information

2-21     posted in the business daily in providing a service that is more

2-22     than only the downloading of information from the business daily,

2-23     including a service by which appropriate bidders or offerors are

2-24     matched with information that is relevant to those bidders or

2-25     offerors, and may charge a lawful fee that the entity considers

2-26     appropriate for the service.

2-27           (f)  The department and other state agencies may not charge a

 3-1     fee designed to   recover the cost of preparing and gathering the

 3-2     information that is published in the business daily.  These costs

 3-3     are considered part of a procuring agency's responsibility to

 3-4     publicly inform potential bidders or offerors of its procurement

 3-5     opportunities.

 3-6           (g)  A state agency shall post in the business daily either

 3-7     the entire bid or proposal solicitation package or a notice that

 3-8     includes at a minimum the following information for each

 3-9     procurement that the state agency will make that is estimated to

3-10     exceed $25,000 in value:

3-11                 (1)  a brief description of the goods or services to be

3-12     procured and any applicable state product or service codes for the

3-13     goods and services;

3-14                 (2)  the last date on which bids, proposals, or other

3-15     applicable expressions of interest will be accepted;

3-16                 (3)  the estimated quantity of goods or services to be

3-17     procured;

3-18                 (4)  if applicable, the previous price paid by the

3-19     state agency for the same or similar goods or services;

3-20                 (5)  the estimated date on which the goods or services

3-21     to be procured will be needed; and

3-22                 (6)  the name, business mailing address, and business

3-23     telephone number of the state agency employee a person may contact

3-24     to obtain all necessary information related to making a bid or

3-25     proposal or other applicable expression of interest for the

3-26     procurement contract.

3-27           (h)  The state agency shall continue to either:

 4-1                 (1)  post notice of the procurement in accordance with

 4-2     Subsection (g) until the latest of 21 calendar days after the date

 4-3     the notice is first posted; the date the state agency will no

 4-4     longer accept bids, proposals, or other applicable expressions of

 4-5     interest for the procurement; or the date the state agency decides

 4-6     not to make the procurement; or

 4-7                 (2)  post the entire bid or proposal solicitation

 4-8     package in accordance with Subsection (g) until the latest of 15

 4-9     calendar days after the date the bid or proposal solicitation

4-10     package is first posted; the date the state agency will no longer

4-11     accept bids, proposals, or other applicable expressions of interest

4-12     for the procurement; or the date the state agency decides not to

4-13     make the procurement.

4-14           (i)  A state agency may not award the procurement contract

4-15     and shall continue to accept bids or proposals or other applicable

4-16     expressions of interest for the procurement contract for at least

4-17     21 calendar days after the date the state agency first posted

4-18     notice of the procurement in accordance with Subsection (g) or 15

4-19     calendar days after the date the state agency first posted the

4-20     entire bid or proposal solicitation package in accordance with

4-21     Subsection (g), as applicable. The minimum time for posting

4-22     required by this subsection and Subsection (h) does not apply in an

4-23     emergency requiring the state agency to make the procurement more

4-24     quickly to prevent a hazard to life, health, safety, welfare, or

4-25     property or to avoid undue additional cost to the state.

4-26           (j)  A contract or procurement award made by a state agency

4-27     that violates the applicable minimum time for posting required by

 5-1     Subsections (h) and (i) is void.

 5-2           (k)  Each state agency that will award a procurement contract

 5-3     estimated to exceed $25,000 in value shall send to the department:

 5-4                 (1)  the information the department requires for

 5-5     posting in the state business daily under this section; and

 5-6                 (2)  a notice when the procurement contract has been

 5-7     awarded or when the state agency has decided to not make the

 5-8     procurement.

 5-9           (l)  The department may adopt rules, prescribe forms, and

5-10     require information to administer this section.  The department

5-11     shall send any proposed rules to the governor, Legislative Budget

5-12     Board, comptroller, state auditor, and commission for review and

5-13     comment.  The department's rules shall require that each state

5-14     agency, to the extent feasible, shall directly and electronically

5-15     post its own notices or solicitation packages under Subsections (g)

5-16     and (h).

5-17           (m)  The requirements of this section are in addition to the

5-18     requirements of other law relating to the solicitation of bids,

5-19     proposals, or expressions of interest for a procurement by a state

5-20     agency.  This section does not affect whether a state agency is

5-21     required to award a procurement contract through competitive

5-22     bidding, competitive sealed proposals, or another method.

5-23           SECTION 2.  The minimum posting time requirement of Sections

5-24     2155.074(h) and (i), Government Code, as added by this Act, and the

5-25     provisions of Section 2155.074(j), Government Code, as added by

5-26     this Act, apply only to a procurement contract awarded on or after

5-27     July 1, 1998.

 6-1           SECTION 3.  This Act takes effect June 1, 1998, except that

 6-2     the Texas Department of Commerce may adopt rules, procedures, and

 6-3     forms and make agreements necessary to administer this Act

 6-4     beginning September 1, 1997.

 6-5           SECTION 4.  The importance of this legislation and the

 6-6     crowded condition of the calendars in both houses create an

 6-7     emergency and an imperative public necessity that the

 6-8     constitutional rule requiring bills to be read on three several

 6-9     days in each house be suspended, and this rule is hereby suspended.