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.