By:  West, Truan                                       S.B. No. 820

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the establishment and operation of an electronic

 1-2     procurement marketplace, including an electronic commerce network.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subtitle D, Title 10, Government Code, is amended

 1-5     by adding Chapter 2177 to read as follows:

 1-6                     CHAPTER 2177.  ELECTRONIC COMMERCE

 1-7           Sec. 2177.001.  ELECTRONIC PROCUREMENT MARKETPLACE.  (a)  The

 1-8     commission shall establish and manage an electronic procurement

 1-9     marketplace.  The commission may enter into contracts with private

1-10     or public entities to establish or maintain all or part of the

1-11     databases comprising the marketplace, including contracts to

1-12     procure hardware or software.  The commission shall procure all

1-13     goods and services related to the marketplace through a competitive

1-14     selection process appropriate for the good or service being

1-15     acquired.

1-16           (b)  The commission, in consultation with the Department of

1-17     Information Resources, shall define standards, including keyword

1-18     and product code standards, for the electronic procurement

1-19     marketplace.  The marketplace may include databases that contain

1-20     information about the availability of surplus property.

1-21           (c)  The commission may adopt rules relating to the design

1-22     and use of the electronic procurement marketplace, including rules

1-23     that require state agencies to provide information for or receive

 2-1     information from the marketplace.

 2-2           (d)  The commission may make state procurement information

 2-3     available to political subdivisions through the electronic

 2-4     procurement marketplace on a fee-for-service basis.  The commission

 2-5     shall set the fees in an amount that recovers the state's costs in

 2-6     providing the access to a political subdivision.

 2-7           (e)  Before developing a contract for the procurement of a

 2-8     good or service, a state agency shall use the electronic

 2-9     procurement marketplace to determine the most appropriate method

2-10     for acquiring the good or service.

2-11           (f)  The commission may adopt rules, prescribe forms, and

2-12     require information from state agencies to administer this section.

2-13           Sec. 2177.002.  ELECTRONIC PROCUREMENT DATABASE.  (a)  The

2-14     commission may maintain in an electronic procurement database

2-15     information related to state procurement that the commission

2-16     considers to be useful.  The database may contain:

2-17                 (1)  information relevant to the state's standard

2-18     procurement specifications for goods and services;

2-19                 (2)  information about vendors, including information

2-20     from the centralized master bidders list and vendor performance

2-21     information;

2-22                 (3)  information about products, including product

2-23     testing results; and

2-24                 (4)  historical purchasing information, qualified

2-25     purchase lists, and trends.

 3-1           (b)  The commission may require information from a state

 3-2     agency for inclusion in the electronic procurement database.

 3-3           Sec. 2177.003.  ELECTRONIC COMMERCE NETWORK.  (a)  The

 3-4     commission shall establish and manage an electronic commerce

 3-5     network, to the extent feasible, under which the state's purchasing

 3-6     transactions with vendors can be accomplished electronically by

 3-7     means of facsimile transmissions and on-line transmission of

 3-8     necessary information.  The commission shall comply with applicable

 3-9     rules of the Department of Information Resources to the extent that

3-10     they are based on the standard data protocol developed by the

3-11     American National Standards Institute known as electronic data

3-12     interchange or on other efficient standards as determined by the

3-13     commission.

3-14           (b)  The commission may enter into contracts with one or more

3-15     public or private entities to establish or support various elements

3-16     of the network.  The commission shall procure all goods and

3-17     services related to the network through the competitive selection

3-18     process appropriate for the good or service being acquired.

3-19           (c)  The commission may provide for a gateway between the

3-20     electronic procurement marketplace and the electronic commerce

3-21     network so that the elements of a procurement transaction that are

3-22     within state government and the elements of a procurement

3-23     transaction that involve communication with a vendor may all be

3-24     accomplished electronically.

3-25           (d)  Each state agency that is capable of participating in

 4-1     the electronic commerce network must participate in the network and

 4-2     participate in contracts entered into by the commission for the

 4-3     establishment or support of the network.  The commission shall

 4-4     charge an agency a fee for network services provided to the agency

 4-5     by the commission or by a contractor so that the cost of providing

 4-6     network services to an agency is paid by the agency.

 4-7           (e)  The commission may allow political subdivisions and

 4-8     other public entities that are members of the commission's

 4-9     cooperative purchasing program to participate in the electronic

4-10     commerce network.  The commission shall require that a

4-11     participating political subdivision or other entity is charged a

4-12     fee for the network services in the same manner that participating

4-13     state agencies are charged fees under Subsection (d).

4-14           (f)  The commission may also charge private businesses a fee

4-15     for accessing the network.

4-16           (g)  The commission may:

4-17                 (1)  adopt rules to administer this section; and

4-18                 (2)  require participating state agencies, political

4-19     subdivisions, and other public entities to designate a network

4-20     coordinator.

4-21           (h)  The requirements of this section and Section 2177.004

4-22     are in addition to the requirements of other law relating to the

4-23     solicitation of bids, proposals, or expressions of interest for a

4-24     procurement by the commission or another state agency.  This

4-25     section and Section 2177.004 do not affect any other law that

 5-1     requires the commission or another state agency to award a

 5-2     procurement contract through competitive bidding, competitive

 5-3     sealed proposals, or another method.

 5-4           Sec. 2177.004.  PARTICIPATION BY STATE AGENCIES IN ELECTRONIC

 5-5     COMMERCE NETWORK.  (a)  Each state agency shall send to the

 5-6     commission for posting on the electronic commerce network

 5-7     information on each procurement contract the value of which will

 5-8     exceed the amount of the agency's delegated purchasing authority

 5-9     under Section 2155.132:

5-10                 (1)  without regard to the source of funds the agency

5-11     will use for the procurement; and

5-12                 (2)  including a procurement that is:

5-13                       (A)  a procurement by a state agency that is

5-14     otherwise exempt from the commission's purchasing authority;

5-15                       (B)  made under delegated purchasing authority

5-16     under Section 2155.131;

5-17                       (C)  related to a construction project; or

5-18                       (D)  a procurement of professional or consulting

5-19     services.

5-20           (b)  The commission and each state agency shall include in

5-21     the information placed on the electronic commerce network, to the

5-22     extent it is feasible, the following information for each

5-23     procurement that the commission will make or that another state

5-24     agency will make under Subsection (a):

5-25                 (1)  a description of the goods or services to be

 6-1     procured;

 6-2                 (2)  the estimated quantity of the goods or services to

 6-3     be procured;

 6-4                 (3)  if applicable, the previous price paid by the

 6-5     commission or another state agency for the same or similar goods or

 6-6     services;

 6-7                 (4)  the estimated date on which the goods or services

 6-8     to be procured will be needed; and

 6-9                 (5)  the name, business mailing address, and business

6-10     telephone number of the commission employee or other state agency

6-11     employee a person can contact to obtain all necessary information

6-12     relating to making a bid or proposal or other applicable expression

6-13     of interest for the procurement contract.

6-14           (c)  The commission shall also post on the electronic

6-15     commerce network other information relating to the business

6-16     activity of the state that the commission considers to be of

6-17     interest to the public.  Each state agency shall provide the

6-18     commission with information the commission requires for purposes of

6-19     this subsection in a format prescribed by the commission.

6-20           (d)  Each state agency that will award a contract that has

6-21     been placed on the electronic commerce network under Subsection (a)

6-22     shall place notification of the awarding of the contract on the

6-23     electronic commerce network.

6-24           SECTION 2.  Section 2155.264, Government Code, is amended to

6-25     read as follows:

 7-1           Sec. 2155.264.  AGENCY SOLICITATION OF BIDS OR PROPOSALS FOR

 7-2     ACQUISITION OVER $15,000.  A state agency that proposes to make a

 7-3     purchase or other acquisition that will cost more than $15,000

 7-4     shall solicit bids or proposals from each eligible vendor on the

 7-5     master bidders list that serves the agency's geographic region.  A

 7-6     state agency may also solicit bids or proposals through the use of

 7-7     on-line electronic transmission or the electronic commerce network.

 7-8           SECTION 3.  Section 2156.005, Government Code, is amended to

 7-9     read as follows:

7-10           Sec. 2156.005.  BID SUBMISSION AND OPENING; PUBLIC

7-11     INSPECTION.  (a)  A bidder must submit a sealed bid to the

7-12     commission.  The bid must be identified on the envelope as a bid.

7-13           (b)  Subsection (a) does not apply to bids submitted through

7-14     the use of facsimile transmission, on-line electronic transmission,

7-15     or the electronic commerce network.  The commission may adopt rules

7-16     to ensure the identification, security, and confidentiality of bids

7-17     submitted through the use of facsimile transmission, on-line

7-18     electronic transmission, or the electronic commerce network.

7-19           (c)  The commission shall open bids at the time and place

7-20     stated in the invitation to bid.

7-21           [(c)  The state auditor or a member of the state auditor's

7-22     staff may be present at a bid opening.]

7-23           (d)  The commission shall keep a tabulation of all bids

7-24     received available for public inspection under rules adopted by the

7-25     commission.

 8-1           SECTION 4.  Section 2156.063, Government Code, is amended to

 8-2     read as follows:

 8-3           Sec. 2156.063.  SOLICITATION OF BIDS.  The commission shall

 8-4     solicit bids under this subchapter by:

 8-5                 (1)  direct mail;

 8-6                 (2)  [,]  telephone;

 8-7                 (3)  [, or]  telegraph;

 8-8                 (4)  facsimile transmission;

 8-9                 (5)  on-line electronic transmission; or

8-10                 (6)  posting on the electronic commerce network.

8-11           SECTION 5.  Section 271.083, Local Government Code, is

8-12     amended by adding Subsection (c) to read as follows:

8-13           (c)  The provisions of Chapter 2177, Government Code, shall

8-14     apply to a local government that exercises the ability to

8-15     electronically send purchase orders and information under the

8-16     provisions of this section.

8-17           SECTION 6.  The General Services Commission shall gradually

8-18     phase in, in the most cost-effective manner and in accordance with

8-19     available appropriations, the changes in law made by this Act that

8-20     require the commission to establish electronic marketplaces,

8-21     databases, or networks.

8-22           SECTION 7.  This Act takes effect September 1, 1997.

8-23           SECTION 8.  The importance of this legislation and the

8-24     crowded condition of the calendars in both houses create an

8-25     emergency and an imperative public necessity that the

 9-1     constitutional rule requiring bills to be read on three several

 9-2     days in each house be suspended, and this rule is hereby suspended.