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.
 4-9                                  * * * * *