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 * * * * *