By Truan                                        S.B. No. 1039

      75R3891 JRD-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to electronic commerce for the state's purchasing

 1-3     activities.

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

 1-5           SECTION 1.  Subchapter B, Chapter 2155, Government Code, is

 1-6     amended by adding Section 2155.074 to read as follows:

 1-7           Sec. 2155.074.  ELECTRONIC COMMERCE.  (a)  The commission

 1-8     shall develop an electronic commerce capability that allows the

 1-9     state's purchasing transactions with vendors to be accomplished

1-10     electronically by means of facsimile transmission and on-line

1-11     transmission of necessary information.  The commission shall use

1-12     the standard data protocol developed by the American National

1-13     Standards Institute known as electronic data interchange. The

1-14     commission may enter into contracts with one or more public or

1-15     private entities to develop the capability.

1-16           (b)  The commission, with the assistance of the comptroller,

1-17     the Department of Information Resources, and other state agencies

1-18     with relevant expertise, shall adopt a strategic plan that

1-19     describes the most efficient method for developing and implementing

1-20     the state's electronic commerce capabilities, taking into account

1-21     the costs and benefits to the state and the needs and capabilities

1-22     of state agencies. The commission, with the assistance of the other

1-23     agencies, shall update the plan at least biennially.

1-24           (c)  The commission shall charge vendors and state agencies

 2-1     that participate in the commission's electronic commerce system a

 2-2     fee designed to recover on a pro rata basis the commission's full

 2-3     costs in developing and maintaining the system.

 2-4           (d)  The commission shall gradually implement its electronic

 2-5     commerce system. The commission shall first make the electronic

 2-6     commerce  system available to state agencies that will save the

 2-7     state the most money through using the system. Before the

 2-8     commission makes its system available to an agency, the agency and

 2-9     the commission shall cooperate to determine how best to implement

2-10     the system for the agency.

2-11           (e)  As an incentive to participate in the electronic

2-12     commerce system, the commission may reduce a state agency's

2-13     payments to the commission for use of the consolidated

2-14     telecommunications system under Chapter 2170 in an amount not to

2-15     exceed the amount the agency pays the commission to participate in

2-16     the electronic commerce system if the commission:

2-17                 (1)  first analyzes in detail the costs and benefits to

2-18     the state of doing so for a particular agency; and

2-19                 (2)  determines that sufficient savings from operating

2-20     efficiencies in the consolidated telecommunications system and

2-21     sufficient projected savings from the  agency's participation in

2-22     the electronic commerce system exist so that the reduction in

2-23     payments under Chapter 2170 is advantageous to the state.

2-24           (f)  The commission may allow political subdivisions and

2-25     other public entities to participate in the electronic commerce

2-26     system.  The commission shall charge a participating political

2-27     subdivision or public entity a fee for participation in the same

 3-1     manner that participating state agencies are charged a fee under

 3-2     Subsection (c).  When applicable, the commission may reduce any

 3-3     fees paid by a participating political subdivision or other public

 3-4     entity for use of the state's consolidated telecommunications

 3-5     system in accordance with Subsection (e).  The commission shall

 3-6     regularly question political subdivisions that use the electronic

 3-7     commerce system to determine ways the political subdivisions can

 3-8     benefit further from participating in the system.

 3-9           (g)  The commission may adopt rules to administer this

3-10     section.

3-11           SECTION 2.  Section 2156.005(a), Government Code, is amended

3-12     to read as follows:

3-13           (a)  A bidder must submit a sealed bid to the commission. The

3-14     bid must be identified on the envelope as a bid.  The commission

3-15     may waive these requirements for a bid and allow facsimile or

3-16     on-line transmission of the bid when the commission considers that

3-17     the electronic commerce capabilities of the state and of the vendor

3-18     are sufficient to allow it.

3-19           SECTION 3.  Section 2156.063, Government Code, is amended to

3-20     read as follows:

3-21           Sec. 2156.063.  SOLICITATION OF BIDS.  The commission shall

3-22     solicit bids under this subchapter by:

3-23                 (1)  direct mail;[,]

3-24                 (2)  telephone[,] or telegraph;

3-25                 (3)  facsimile transmission;

3-26                 (4)  on-line electronic transmission; or

3-27                 (5)  posting on an electronic bulletin board.

 4-1           SECTION 4.  The General Services Commission shall submit to

 4-2     the legislature and gradually begin implementation of the strategic

 4-3     plan for the development and implementation of electronic commerce

 4-4     capabilities required by Section 2155.074, Government Code, as

 4-5     added by this Act, not later than September 1, 1998.

 4-6           SECTION 5.  This Act takes effect September 1, 1997.

 4-7           SECTION 6.  The importance of this legislation and the

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

 4-9     emergency and an imperative public necessity that the

4-10     constitutional rule requiring bills to be read on three several

4-11     days in each house be suspended, and this rule is hereby suspended.