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, to the extent feasible,

1-12     including contracts to procure hardware or software.  The

1-13     commission shall procure all goods and services related to the

1-14     marketplace through a competitive selection process appropriate for

1-15     the good or service being 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 contain:

1-20                 (1)  information relevant to the state's standard

1-21     procurement specifications for goods and services;

1-22                 (2)  information about vendors, including information

1-23     from the centralized master bidders list and vendor performance

 2-1     information;

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

 2-3     testing results;

 2-4                 (4)  historical purchasing information, qualified

 2-5     purchase lists, and trends; and

 2-6                 (5)  information about the availability of surplus

 2-7     property.

 2-8           (c)  The commission may adopt rules relating to the design

 2-9     and use of the electronic procurement marketplace, including rules

2-10     that require state agencies to provide information for or receive

2-11     information from the marketplace.

2-12           (d)  The commission may make state procurement information

2-13     available to political subdivisions through the electronic

2-14     procurement marketplace on a fee-for-service basis.  The commission

2-15     shall set the fees in an amount that recovers the state's costs in

2-16     providing the access to a political subdivision.

2-17           (e)  Before developing a contract for the procurement of a

2-18     good or service, a state agency may use the electronic procurement

2-19     marketplace to determine the most appropriate method for acquiring

2-20     the good or service.

2-21           (f)  The marketplace may contain:

2-22                 (1)  information relevant to the state's standard

2-23     procurement specifications for goods and services;

2-24                 (2)  information about vendors, including information

2-25     from the centralized master bidders list and vendor performance

 3-1     information;

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

 3-3     testing results; and

 3-4                 (4)  historical purchasing information, qualified

 3-5     purchase lists, and trends.

 3-6           (g)  The commission may require information from a state

 3-7     agency for inclusion in the electronic procurement marketplace.

 3-8           Sec. 2177.002.  ELECTRONIC COMMERCE NETWORK.  (a)  The

 3-9     commission shall establish and manage an electronic commerce

3-10     network, to the extent feasible, under which the state's purchasing

3-11     transactions with vendors can be accomplished electronically by

3-12     means of facsimile transmissions and on-line transmission of

3-13     necessary information.  The commission shall comply with applicable

3-14     rules of the Department of Information Resources to the extent that

3-15     they are based on the standard data protocol developed by the

3-16     American National Standards Institute known as electronic data

3-17     interchange or on other efficient standards as determined by the

3-18     commission.

3-19           (b)  The commission may enter into contracts with one or more

3-20     public or private entities to establish or support various elements

3-21     of the network.  The commission shall procure all goods and

3-22     services related to the network through the competitive selection

3-23     process appropriate for the good or service being acquired.

3-24           (c)  The commission may provide for a gateway between the

3-25     electronic procurement marketplace and the electronic commerce

 4-1     network so that the elements of a procurement transaction that are

 4-2     within state government and the elements of a procurement

 4-3     transaction that involve communication with a vendor may all be

 4-4     accomplished electronically.

 4-5           (d)  Each state agency that is capable of participating in

 4-6     the electronic commerce network must participate in the network and

 4-7     participate in contracts entered into by the commission for the

 4-8     establishment or support of the network.  The commission shall

 4-9     charge an agency a fee for network services provided to the agency

4-10     by the commission or by a contractor so that the cost of providing

4-11     network services to an agency is paid by the agency.

4-12           (e)  The commission may allow political subdivisions and

4-13     other public entities that are members of the commission's

4-14     cooperative purchasing program to participate in the electronic

4-15     commerce network.  The commission shall require that a

4-16     participating political subdivision or other entity is charged a

4-17     fee for the network services in the same manner that participating

4-18     state agencies are charged fees under Subsection (d).

4-19           (f)  The commission may also charge private businesses a fee

4-20     for accessing the network.

4-21           (g)  The commission may:

4-22                 (1)  adopt rules to administer this section; and

4-23                 (2)  require participating state agencies, political

4-24     subdivisions, and other public entities to designate a network

4-25     coordinator.

 5-1           (h)  The requirements of this section and Section 2177.003

 5-2     are in addition to the requirements of other law relating to the

 5-3     solicitation of bids, proposals, or expressions of interest for a

 5-4     procurement by the commission or another state agency.  This

 5-5     section and Section 2177.003 do not affect any other law that

 5-6     requires the commission or another state agency to award a

 5-7     procurement contract through competitive bidding, competitive

 5-8     sealed proposals, or another method.

 5-9           Sec. 2177.003.  PARTICIPATION BY STATE AGENCIES IN ELECTRONIC

5-10     COMMERCE NETWORK.  (a)  Each state agency shall send to the

5-11     commission for posting on the electronic commerce network

5-12     information on each procurement contract the value of which will

5-13     exceed the amount of the agency's delegated purchasing authority

5-14     under Section 2155.132:

5-15                 (1)  without regard to the source of funds the agency

5-16     will use for the procurement; and

5-17                 (2)  including a procurement that is:

5-18                       (A)  a procurement by a state agency that is

5-19     otherwise exempt from the commission's purchasing authority;

5-20                       (B)  made under delegated purchasing authority

5-21     under Section 2155.131;

5-22                       (C)  related to a construction project; or

5-23                       (D)  a procurement of professional or consulting

5-24     services.

5-25           (b)  The commission and each state agency shall include in

 6-1     the information placed on the electronic commerce network, to the

 6-2     extent it is feasible, the following information for each

 6-3     procurement that the commission will make or that another state

 6-4     agency will make under Subsection (a):

 6-5                 (1)  a description of the goods or services to be

 6-6     procured;

 6-7                 (2)  the estimated quantity of the goods or services to

 6-8     be procured;

 6-9                 (3)  if applicable, the previous price paid by the

6-10     commission or another state agency for the same or similar goods or

6-11     services;

6-12                 (4)  the estimated date on which the goods or services

6-13     to be procured will be needed; and

6-14                 (5)  the name, business mailing address, and business

6-15     telephone number of the commission employee or other state agency

6-16     employee a person can contact to obtain all necessary information

6-17     relating to making a bid or proposal or other applicable expression

6-18     of interest for the procurement contract.

6-19           (c)  The commission shall also post on the electronic

6-20     commerce network other information relating to the business

6-21     activity of the state that the commission considers to be of

6-22     interest to the public.  Each state agency shall provide the

6-23     commission with information the commission requires for purposes of

6-24     this subsection in a format prescribed by the commission.

6-25           (d)  Each state agency that will award a contract that has

 7-1     been placed on the electronic commerce network under Subsection (a)

 7-2     shall place notification of the awarding of the contract on the

 7-3     electronic commerce network.

 7-4           SECTION 2.  Section 2155.264, Government Code, is amended to

 7-5     read as follows:

 7-6           Sec. 2155.264.  AGENCY SOLICITATION OF BIDS OR PROPOSALS FOR

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

 7-8     purchase or other acquisition that will cost more than $15,000

 7-9     shall solicit bids or proposals from each eligible vendor on the

7-10     master bidders list that serves the agency's geographic region.  A

7-11     state agency may also solicit bids or proposals through the use of

7-12     on-line electronic transmission or the electronic commerce network.

7-13           SECTION 3.  Section 2156.005, Government Code, is amended to

7-14     read as follows:

7-15           Sec. 2156.005.  BID SUBMISSION AND OPENING; PUBLIC

7-16     INSPECTION.  (a)  A bidder must submit a sealed bid to the

7-17     commission.  The bid must be identified on the envelope as a bid.

7-18           (b)  Subsection (a) does not apply to bids submitted through

7-19     the use of facsimile transmission, on-line electronic transmission,

7-20     or the electronic commerce network.  The commission may adopt rules

7-21     to ensure the identification, security, and confidentiality of bids

7-22     submitted through the use of facsimile transmission, on-line

7-23     electronic transmission, or the electronic commerce network.

7-24           (c)  The commission shall open bids at the time and place

7-25     stated in the invitation to bid.

 8-1           [(c)  The state auditor or a member of the state auditor's

 8-2     staff may be present at a bid opening.]

 8-3           (d)  The commission shall keep a tabulation of all bids

 8-4     received available for public inspection under rules adopted by the

 8-5     commission.

 8-6           SECTION 4.  Section 2156.063, Government Code, is amended to

 8-7     read as follows:

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

 8-9     solicit bids under this subchapter by:

8-10                 (1)  direct mail;

8-11                 (2)  [,]  telephone;

8-12                 (3)  [, or]  telegraph;

8-13                 (4)  facsimile transmission;

8-14                 (5)  on-line electronic transmission; or

8-15                 (6)  posting on the electronic commerce network.

8-16           SECTION 5.  Section 271.083, Local Government Code, is

8-17     amended by adding Subsection (c) to read as follows:

8-18           (c)  The provisions of Chapter 2177, Government Code, shall

8-19     apply to a local government that exercises the ability to

8-20     electronically send purchase orders and information under the

8-21     provisions of this section.

8-22           SECTION 6.  The General Services Commission shall gradually

8-23     phase in, in the most cost-effective manner and in accordance with

8-24     available appropriations, the changes in law made by this Act that

8-25     require the commission to establish electronic marketplaces,

 9-1     databases, or networks.

 9-2           SECTION 7.  This Act takes effect September 1, 1997.

 9-3           SECTION 8.  The importance of this legislation and the

 9-4     crowded condition of the calendars in both houses create an

 9-5     emergency and an imperative public necessity that the

 9-6     constitutional rule requiring bills to be read on three several

 9-7     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 820 passed the Senate on

         April 10, 1997, by a viva-voce vote; and that the Senate concurred

         in House amendment on May 17, 1997, by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 820 passed the House, with

         amendment, on May 13, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor