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.
 9-3                          COMMITTEE AMENDMENT NO. 1
 9-4           Amend SB No. 820 as follows:
 9-5           (1)  On page 1, line 11, insert after "marketplace", "to the
 9-6     extent feasible".
 9-7           (2)  On page 2, line 8, strike "shall" substitute "may".
 9-8           On page 1, lines 19-20, strike "The marketplace may include
 9-9     databases that contain information about the availability of
9-10     surplus property." substitute "The marketplace may contain:
9-11           (3)  (1)  information relevant to the state's standard
9-12     procurement specifications for goods and services.
9-13                 (2)  information about vendors, including information
9-14     from the centralized master bidders list and vendor performance
9-15     information:
9-16                 (3)  information about products, including product
9-17     testing results;
9-18                 (4)  historical purchasing information, qualified
9-19     purchase lists, and trends; and
9-20                 (5)  information about the availability of surplus
9-21     property."
9-22           (4)  On page 2, line 11-16, strike "The commission may adopt
9-23     rules, prescribe forms, and require information from state agencies
9-24     to administer this section, Sec. 2177.002 ELECTRONIC PROCUREMENT
9-25     DATABASE.  (a)  The commission may maintain in an electronic
 10-1    procurement database information related to state procurement that
 10-2    the commission considers to be useful."
 10-3          (5)  On page 2, line 16, strike "database" substitute
 10-4    "marketplace".
 10-5          (6)  On page 3, line 1, strike "(b)" substitute "(g)".
 10-6          (7)  On page 3, line 2, strike "database" substitute
 10-7    "marketplace".
 10-8          (8)  On page 3, line 3, strike "2177.003" substitute
 10-9    "2177.002".
10-10                                                       Turner of Harris