By West                                          S.B. No. 820

      75R7706 MLS-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the establishment and operation of an electronic

 1-3     procurement marketplace, including an electronic commerce network.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subtitle D, Title 10, Government Code, is amended

 1-6     by adding Chapter 2177 to read as follows:

 1-7                     CHAPTER 2177.  ELECTRONIC COMMERCE

 1-8           Sec. 2177.001.  ELECTRONIC PROCUREMENT MARKETPLACE.  (a)  The

 1-9     commission shall establish and manage an electronic procurement

1-10     marketplace.  The commission may enter into contracts with private

1-11     or public entities to establish or maintain all or part of the

1-12     databases comprising the marketplace, including contracts to

1-13     procure hardware or software.  The commission shall procure all

1-14     goods and services related to the marketplace through a competitive

1-15     selection process appropriate for the good or service being

1-16     acquired.

1-17           (b)  The commission 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

1-24     information from the marketplace.

 2-1           (d)  The commission may make state procurement information

 2-2     available to political subdivisions through the electronic

 2-3     procurement marketplace on a fee-for-service basis.  The commission

 2-4     shall set the fees in an amount that recovers the state's costs in

 2-5     providing the access to a political subdivision.

 2-6           (e)  Before developing a contract for the procurement of a

 2-7     good or service, a state agency shall use the electronic

 2-8     procurement marketplace to determine the most appropriate method

 2-9     for acquiring the good or service.

2-10           (f)  The commission may adopt rules, prescribe forms, and

2-11     require information from state agencies to administer this section.

2-12           Sec. 2177.002.  ELECTRONIC PROCUREMENT DATABASE.  (a)  The

2-13     commission may maintain in an electronic procurement database

2-14     information related to state procurement that the commission

2-15     considers to be useful.  The database may contain:

2-16                 (1)  information relevant to the state's standard

2-17     procurement specifications for goods and services;

2-18                 (2)  information about vendors, including information

2-19     from the centralized master bidders list and vendor performance

2-20     information;

2-21                 (3)  information about products, including product

2-22     testing results; and

2-23                 (4)  historical purchasing information, qualified

2-24     purchase lists, and trends.

2-25           (b)  The commission may require information from a state

2-26     agency for inclusion in the electronic procurement database.

2-27           Sec. 2177.003.  ELECTRONIC COMMERCE NETWORK.  (a)  The

 3-1     commission shall establish and manage an electronic commerce

 3-2     network, to the extent feasible, under which the state's purchasing

 3-3     transactions with vendors can be accomplished electronically by

 3-4     means of facsimile transmissions and on-line transmission of

 3-5     necessary information.  The commission shall base the network on

 3-6     the standard data protocol developed by the American National

 3-7     Standards Institute known as electronic data interchange or on

 3-8     other efficient standards as determined by the commission.

 3-9           (b)  The commission may enter into contracts with one or more

3-10     public or private entities to establish or support various elements

3-11     of the network.  The commission shall procure all goods and

3-12     services related to the network through the competitive selection

3-13     process appropriate for the good or service being acquired.

3-14           (c)  The commission may provide for a gateway between the

3-15     electronic procurement marketplace and the electronic commerce

3-16     network so that the elements of a procurement transaction that are

3-17     within state government and the elements of a procurement

3-18     transaction that involve communication with a vendor may all be

3-19     accomplished electronically.

3-20           (d)  Each state agency that is capable of participating in

3-21     the electronic commerce network must participate in the network and

3-22     participate in contracts entered into by the commission for the

3-23     establishment or support of the network.  The commission shall

3-24     charge an agency a fee for network services provided to the agency

3-25     by the commission or by a contractor, so that the cost of providing

3-26     network services to an agency is paid by the agency.

3-27           (e)  The commission may allow political subdivisions and

 4-1     other public entities that are members of the commission's

 4-2     cooperative purchasing program to participate in the electronic

 4-3     commerce network.  The commission shall require that a

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

 4-5     fee for the network services in the same manner that participating

 4-6     state agencies are charged fees under Subsection (d).

 4-7           (f)  The commission may also charge private businesses a fee

 4-8     for accessing the network.

 4-9           (g)  The commission may:

4-10                 (1)  adopt rules to administer this section; and

4-11                 (2)  require participating state agencies, political

4-12     subdivisions, and other public entities to designate a network

4-13     coordinator.

4-14           (h)  The requirements of this section and Section 2177.004

4-15     are in addition to the requirements of other law relating to the

4-16     solicitation of bids, proposals, or expressions of interest for a

4-17     procurement by the commission or another state agency.  This

4-18     section and Section 2177.004 do not affect any other law that

4-19     requires the commission or another state agency  to award a

4-20     procurement contract through competitive bidding, competitive

4-21     sealed proposals, or another method.

4-22           Sec. 2177.004.  PARTICIPATION BY STATE AGENCIES IN ELECTRONIC

4-23     COMMERCE NETWORK.  (a)  Each state agency shall send to the

4-24     commission for posting on the electronic commerce network

4-25     information on each procurement contract the value of which will

4-26     exceed the amount of the agency's delegated purchasing authority

4-27     under Section 2155.132:

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

 5-2     will use for the  procurement; and

 5-3                 (2)  including a procurement that is:

 5-4                       (A)  a procurement by a state agency that is

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

 5-6                       (B)  made under delegated purchasing authority

 5-7     under Section 2155.131;

 5-8                       (C)  related to a construction project; or

 5-9                       (D)  a procurement of professional or consulting

5-10     services.

5-11           (b)  The commission and each state agency shall include in

5-12     the information placed on the electronic commerce network, to the

5-13     extent it is feasible, the following information for each

5-14     procurement that the commission will make or that another state

5-15     agency will make under Subsection (a):

5-16                 (1)  a description of the goods or services to be

5-17     procured;

5-18                 (2)  the estimated quantity of the goods or services to

5-19     be procured;

5-20                 (3)  if applicable, the previous price paid by the

5-21     commission or another state agency for the same or similar goods or

5-22     services;

5-23                 (4)  the estimated date on which the goods or services

5-24     to be procured will be needed; and

5-25                 (5)  the name, business mailing address, and business

5-26     telephone number of the commission employee or other state agency

5-27     employee a person can contact to obtain all necessary information

 6-1     relating to making a bid or proposal or other applicable expression

 6-2     of interest for the procurement contract.

 6-3           (c)  The commission shall also post on the electronic

 6-4     commerce network other information relating to the business

 6-5     activity of the state that the commission considers to be of

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

 6-7     commission with information the commission requires for purposes of

 6-8     this subsection in a format prescribed by the commission.

 6-9           (d)  Each state agency that will award a contract that has

6-10     been placed on the electronic commerce network under Subsection (a)

6-11     shall place notification of the awarding of the contract on the

6-12     electronic commerce network.

6-13           SECTION 2.  Section 2155.264, Government Code, is amended to

6-14     read as follows:

6-15           Sec. 2155.264. AGENCY SOLICITATION OF BIDS OR PROPOSALS FOR

6-16     ACQUISITION OVER $15,000.  A state agency that proposes to make a

6-17     purchase or other acquisition that will cost more than $15,000

6-18     shall solicit bids or proposals from each eligible vendor on the

6-19     master bidders list that serves the agency's geographic region.  A

6-20     state agency may also solicit bids or proposals through the use of

6-21     on-line  electronic transmission or the electronic commerce

6-22     network.

6-23           SECTION 3.  Section 2156.005, Government Code, is amended to

6-24     read as follows:

6-25           Sec. 2156.005.  BID SUBMISSION AND OPENING;  PUBLIC

6-26     INSPECTION.  (a)  A bidder must submit a sealed bid to the

6-27     commission.  The bid must be identified on the envelope as a bid.

 7-1           (b)  Subsection (a) does not apply to bids submitted through

 7-2     the use of facsimile transmission, on-line electronic transmission,

 7-3     or the electronic commerce network.  The commission may adopt rules

 7-4     to ensure the identification, security, and confidentiality of bids

 7-5     submitted through the use of facsimile transmission, on-line

 7-6     electronic transmission, or the electronic commerce network.

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

 7-8     stated in the invitation to bid.

 7-9           [(c)  The state auditor or a member of the state auditor's

7-10     staff may be present at a bid opening.]

7-11           (d)  The commission shall keep a tabulation of all bids

7-12     received available for public inspection under rules adopted by the

7-13     commission.

7-14           SECTION 4.  Section 2156.063, Government Code, is amended to

7-15     read as follows:

7-16           Sec. 2156.063.  SOLICITATION OF BIDS.  The commission shall

7-17     solicit bids under this subchapter by:

7-18                 (1)  direct mail;

7-19                 (2)  [,]  telephone;

7-20                 (3)  [, or]  telegraph;

7-21                 (4)  facsimile transmission;

7-22                 (5)  on-line electronic transmission; or

7-23                 (6)  posting on the electronic commerce network.

7-24           SECTION 5.  The General Services Commission shall gradually

7-25     phase in, in the most cost-effective manner and in accordance with

7-26     available appropriations, the changes in law made by this Act that

7-27     require the commission to establish electronic marketplaces,

 8-1     databases, or networks.

 8-2           SECTION 6.  This Act takes effect September 1, 1997.

 8-3           SECTION 7.  The importance of this legislation and the

 8-4     crowded condition of the calendars in both houses create an

 8-5     emergency and an imperative public necessity that the

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

 8-7     days in each house be suspended, and this rule is hereby suspended.