1-1     By:  West, Truan                                       S.B. No. 820

 1-2           (In the Senate - Filed February 26, 1997; March 4, 1997, read

 1-3     first time and referred to Committee on International Relations,

 1-4     Trade, and Technology; April 1, 1997, reported favorably, as

 1-5     amended, by the following vote:  Yeas 9, Nays 0; April 1, 1997,

 1-6     sent to printer.)

 1-7     COMMITTEE AMENDMENT NO. 1                                By:  Truan

 1-8     Amend S.B. No. 820 as follows:

 1-9           (1)  On page 1, line 35, between the words "commission" and

1-10     "shall" insert ", in consultation with the Department of

1-11     Information Resources,".

1-12           (2)  On page 2, line 11, between the words "shall" and "base"

1-13     insert "comply with applicable rules of the Department of

1-14     Information Resources".

1-15           (3)  On page 2, line 11, substitute "to the extent that they

1-16     are based on" for "base".

1-17           (4)  On page 2, line 11, delete "the network on".

1-18                            A BILL TO BE ENTITLED

1-19                                   AN ACT

1-20     relating to the establishment and operation of an electronic

1-21     procurement marketplace, including an electronic commerce network.

1-22           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-23           SECTION 1.  Subtitle D, Title 10, Government Code, is amended

1-24     by adding Chapter 2177 to read as follows:

1-25                     CHAPTER 2177.  ELECTRONIC COMMERCE

1-26           Sec. 2177.001.  ELECTRONIC PROCUREMENT MARKETPLACE.  (a)  The

1-27     commission shall establish and manage an electronic procurement

1-28     marketplace.  The commission may enter into contracts with private

1-29     or public entities to establish or maintain all or part of the

1-30     databases comprising the marketplace, including contracts to

1-31     procure hardware or software.  The commission shall procure all

1-32     goods and services related to the marketplace through a competitive

1-33     selection process appropriate for the good or service being

1-34     acquired.

1-35           (b)  The commission shall define standards, including keyword

1-36     and product code standards, for the electronic procurement

1-37     marketplace.  The marketplace may include databases that contain

1-38     information about the availability of surplus property.

1-39           (c)  The commission may adopt rules relating to the design

1-40     and use of the electronic procurement marketplace, including rules

1-41     that require state agencies to provide information for or receive

1-42     information from the marketplace.

1-43           (d)  The commission may make state procurement information

1-44     available to political subdivisions through the electronic

1-45     procurement marketplace on a fee-for-service basis.  The commission

1-46     shall set the fees in an amount that recovers the state's costs in

1-47     providing the access to a political subdivision.

1-48           (e)  Before developing a contract for the procurement of a

1-49     good or service, a state agency shall use the electronic

1-50     procurement marketplace to determine the most appropriate method

1-51     for acquiring the good or service.

1-52           (f)  The commission may adopt rules, prescribe forms, and

1-53     require information from state agencies to administer this section.

1-54           Sec. 2177.002.  ELECTRONIC PROCUREMENT DATABASE.  (a)  The

1-55     commission may maintain in an electronic procurement database

1-56     information related to state procurement that the commission

1-57     considers to be useful.  The database may contain:

1-58                 (1)  information relevant to the state's standard

1-59     procurement specifications for goods and services;

1-60                 (2)  information about vendors, including information

1-61     from the centralized master bidders list and vendor performance

1-62     information;

1-63                 (3)  information about products, including product

1-64     testing results; and

 2-1                 (4)  historical purchasing information, qualified

 2-2     purchase lists, and trends.

 2-3           (b)  The commission may require information from a state

 2-4     agency for inclusion in the electronic procurement database.

 2-5           Sec. 2177.003.  ELECTRONIC COMMERCE NETWORK.  (a)  The

 2-6     commission shall establish and manage an electronic commerce

 2-7     network, to the extent feasible, under which the state's purchasing

 2-8     transactions with vendors can be accomplished electronically by

 2-9     means of facsimile transmissions and on-line transmission of

2-10     necessary information.  The commission shall base the network on

2-11     the standard data protocol developed by the American National

2-12     Standards Institute known as electronic data interchange or on

2-13     other efficient standards as determined by the commission.

2-14           (b)  The commission may enter into contracts with one or more

2-15     public or private entities to establish or support various elements

2-16     of the network.  The commission shall procure all goods and

2-17     services related to the network through the competitive selection

2-18     process appropriate for the good or service being acquired.

2-19           (c)  The commission may provide for a gateway between the

2-20     electronic procurement marketplace and the electronic commerce

2-21     network so that the elements of a procurement transaction that are

2-22     within state government and the elements of a procurement

2-23     transaction that involve communication with a vendor may all be

2-24     accomplished electronically.

2-25           (d)  Each state agency that is capable of participating in

2-26     the electronic commerce network must participate in the network and

2-27     participate in contracts entered into by the commission for the

2-28     establishment or support of the network.  The commission shall

2-29     charge an agency a fee for network services provided to the agency

2-30     by the commission or by a contractor so that the cost of providing

2-31     network services to an agency is paid by the agency.

2-32           (e)  The commission may allow political subdivisions and

2-33     other public entities that are members of the commission's

2-34     cooperative purchasing program to participate in the electronic

2-35     commerce network.  The commission shall require that a

2-36     participating political subdivision or other entity is charged a

2-37     fee for the network services in the same manner that participating

2-38     state agencies are charged fees under Subsection (d).

2-39           (f)  The commission may also charge private businesses a fee

2-40     for accessing the network.

2-41           (g)  The commission may:

2-42                 (1)  adopt rules to administer this section; and

2-43                 (2)  require participating state agencies, political

2-44     subdivisions, and other public entities to designate a network

2-45     coordinator.

2-46           (h)  The requirements of this section and Section 2177.004

2-47     are in addition to the requirements of other law relating to the

2-48     solicitation of bids, proposals, or expressions of interest for a

2-49     procurement by the commission or another state agency.  This

2-50     section and Section 2177.004 do not affect any other law that

2-51     requires the commission or another state agency to award a

2-52     procurement contract through competitive bidding, competitive

2-53     sealed proposals, or another method.

2-54           Sec. 2177.004.  PARTICIPATION BY STATE AGENCIES IN ELECTRONIC

2-55     COMMERCE NETWORK.  (a)  Each state agency shall send to the

2-56     commission for posting on the electronic commerce network

2-57     information on each procurement contract the value of which will

2-58     exceed the amount of the agency's delegated purchasing authority

2-59     under Section 2155.132:

2-60                 (1)  without regard to the source of funds the agency

2-61     will use for the procurement; and

2-62                 (2)  including a procurement that is:

2-63                       (A)  a procurement by a state agency that is

2-64     otherwise exempt from the commission's purchasing authority;

2-65                       (B)  made under delegated purchasing authority

2-66     under Section 2155.131;

2-67                       (C)  related to a construction project; or

2-68                       (D)  a procurement of professional or consulting

2-69     services.

 3-1           (b)  The commission and each state agency shall include in

 3-2     the information placed on the electronic commerce network, to the

 3-3     extent it is feasible, the following information for each

 3-4     procurement that the commission will make or that another state

 3-5     agency will make under Subsection (a):

 3-6                 (1)  a description of the goods or services to be

 3-7     procured;

 3-8                 (2)  the estimated quantity of the goods or services to

 3-9     be procured;

3-10                 (3)  if applicable, the previous price paid by the

3-11     commission or another state agency for the same or similar goods or

3-12     services;

3-13                 (4)  the estimated date on which the goods or services

3-14     to be procured will be needed; and

3-15                 (5)  the name, business mailing address, and business

3-16     telephone number of the commission employee or other state agency

3-17     employee a person can contact to obtain all necessary information

3-18     relating to making a bid or proposal or other applicable expression

3-19     of interest for the procurement contract.

3-20           (c)  The commission shall also post on the electronic

3-21     commerce network other information relating to the business

3-22     activity of the state that the commission considers to be of

3-23     interest to the public.  Each state agency shall provide the

3-24     commission with information the commission requires for purposes of

3-25     this subsection in a format prescribed by the commission.

3-26           (d)  Each state agency that will award a contract that has

3-27     been placed on the electronic commerce network under Subsection (a)

3-28     shall place notification of the awarding of the contract on the

3-29     electronic commerce network.

3-30           SECTION 2.  Section 2155.264, Government Code, is amended to

3-31     read as follows:

3-32           Sec. 2155.264.  AGENCY SOLICITATION OF BIDS OR PROPOSALS FOR

3-33     ACQUISITION OVER $15,000.  A state agency that proposes to make a

3-34     purchase or other acquisition that will cost more than $15,000

3-35     shall solicit bids or proposals from each eligible vendor on the

3-36     master bidders list that serves the agency's geographic region.  A

3-37     state agency may also solicit bids or proposals through the use of

3-38     on-line electronic transmission or the electronic commerce network.

3-39           SECTION 3.  Section 2156.005, Government Code, is amended to

3-40     read as follows:

3-41           Sec. 2156.005.  BID SUBMISSION AND OPENING; PUBLIC

3-42     INSPECTION.  (a)  A bidder must submit a sealed bid to the

3-43     commission.  The bid must be identified on the envelope as a bid.

3-44           (b)  Subsection (a) does not apply to bids submitted through

3-45     the use of facsimile transmission, on-line electronic transmission,

3-46     or the electronic commerce network.  The commission may adopt rules

3-47     to ensure the identification, security, and confidentiality of bids

3-48     submitted through the use of facsimile transmission, on-line

3-49     electronic transmission, or the electronic commerce network.

3-50           (c)  The commission shall open bids at the time and place

3-51     stated in the invitation to bid.

3-52           [(c)  The state auditor or a member of the state auditor's

3-53     staff may be present at a bid opening.]

3-54           (d)  The commission shall keep a tabulation of all bids

3-55     received available for public inspection under rules adopted by the

3-56     commission.

3-57           SECTION 4.  Section 2156.063, Government Code, is amended to

3-58     read as follows:

3-59           Sec. 2156.063.  SOLICITATION OF BIDS.  The commission shall

3-60     solicit bids under this subchapter by:

3-61                 (1)  direct mail;

3-62                 (2)  [,]  telephone;

3-63                 (3)  [, or]  telegraph;

3-64                 (4)  facsimile transmission;

3-65                 (5)  on-line electronic transmission; or

3-66                 (6)  posting on the electronic commerce network.

3-67           SECTION 5.  The General Services Commission shall gradually

3-68     phase in, in the most cost-effective manner and in accordance with

3-69     available appropriations, the changes in law made by this Act that

 4-1     require the commission to establish electronic marketplaces,

 4-2     databases, or networks.

 4-3           SECTION 6.  This Act takes effect September 1, 1997.

 4-4           SECTION 7.  The importance of this legislation and the

 4-5     crowded condition of the calendars in both houses create an

 4-6     emergency and an imperative public necessity that the

 4-7     constitutional rule requiring bills to be read on three several

 4-8     days in each house be suspended, and this rule is hereby suspended.

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