By: Ellis, West, Barrientos S.B. No. 1380 A BILL TO BE ENTITLED AN ACT 1-1 relating to the creation of an electronic state business daily to 1-2 give notice before a state agency makes a procurement with a value 1-3 that exceeds $25,000. 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. STATE BUSINESS DAILY; NOTICE REGARDING 1-8 PROCUREMENTS EXCEEDING $25,000. (a) This section applies to each 1-9 state agency making a procurement that will exceed $25,000 in 1-10 value, without regard to the source of funds the agency will use 1-11 for the procurement, including a procurement that: 1-12 (1) is otherwise exempt from the commission's 1-13 purchasing authority or the application of this subtitle; 1-14 (2) is made under delegated purchasing authority; 1-15 (3) is related to a construction project; or 1-16 (4) is a procurement of professional or consulting 1-17 services. 1-18 (b) In this section, "department" means the Texas Department 1-19 of Commerce. 1-20 (c) The department each business day shall produce and post 1-21 a business daily in an electronic format. The department shall 1-22 post in the business daily information as prescribed by this 1-23 section about each state agency procurement that will exceed 2-1 $25,000 in value. The department shall also post in the business 2-2 daily other information relating to the business activity of the 2-3 state that the department considers to be of interest to the 2-4 public. 2-5 (d) The department shall make the business daily available 2-6 on the Internet through its information service known as the Texas 2-7 Marketplace or through a suitable successor information service 2-8 that will make the information available on the Internet. The 2-9 department and each state agency shall cooperate in making the 2-10 electronic business daily available. 2-11 (e) To accommodate businesses that do not have the technical 2-12 means to access the business daily, governmental and 2-13 nongovernmental entities such as public libraries, chambers of 2-14 commerce, trade associations, small business development centers, 2-15 economic development departments of local governments, and state 2-16 agencies may provide public access to the business daily. A 2-17 governmental entity may recover the direct cost of providing the 2-18 public access only by charging a fee for downloading procurement 2-19 notices and bid or proposal solicitation packages posted in the 2-20 business daily. A nongovernmental entity may use information 2-21 posted in the business daily in providing a service that is more 2-22 than only the downloading of information from the business daily, 2-23 including a service by which appropriate bidders or offerors are 2-24 matched with information that is relevant to those bidders or 2-25 offerors, and may charge a lawful fee that the entity considers 3-1 appropriate for the service. 3-2 (f) The department and other state agencies may not charge a 3-3 fee designed to recover the cost of preparing and gathering the 3-4 information that is published in the business daily. These costs 3-5 are considered part of a procuring agency's responsibility to 3-6 publicly inform potential bidders or offerors of its procurement 3-7 opportunities. 3-8 (g) The department shall post in the business daily either 3-9 the entire bid or proposal solicitation package or a notice that 3-10 includes at a minimum the following information for each 3-11 procurement that a state agency will make that is estimated to 3-12 exceed $25,000 in value: 3-13 (1) a brief description of the goods or services to be 3-14 procured and any applicable state product or service codes for the 3-15 goods and services; 3-16 (2) the last date on which bids, proposals, or other 3-17 applicable expressions of interest will be accepted; 3-18 (3) the estimated cost of the procurement; 3-19 (4) the estimated quantity of goods or services to be 3-20 procured; 3-21 (5) if applicable, the previous price paid by the 3-22 state agency for the same or similar goods or services; 3-23 (6) the estimated date on which the goods or services 3-24 to be procured will be needed; and 3-25 (7) the name, business mailing address, and business 4-1 telephone number of the state agency employee a person may contact 4-2 to obtain all necessary information related to making a bid or 4-3 proposal or other applicable expression of interest for the 4-4 procurement contract. 4-5 (h) The department shall continue to either: 4-6 (1) post notice of the procurement in accordance with 4-7 Subsection (g) until the latest of 15 calendar days after the date 4-8 the notice is first posted; the date the state agency will no 4-9 longer accept bids, proposals, or other applicable expressions of 4-10 interest for the procurement; or the date the state agency decides 4-11 not to make the procurement; or 4-12 (2) post the entire bid or proposal solicitation 4-13 package in accordance with Subsection (g) until the latest of 15 4-14 calendar days after the date the bid or proposal solicitation 4-15 package is first posted; the date the state agency will no longer 4-16 accept bids, proposals, or other applicable expressions of interest 4-17 for the procurement; or the date the state agency decides not to 4-18 make the procurement. 4-19 (i) A state agency may not award the procurement contract 4-20 and shall continue to accept bids or proposals or other applicable 4-21 expressions of interest for the procurement contract for at least 4-22 15 calendar days after the date the department first posted notice 4-23 of the procurement in accordance with Subsection (g) or 15 calendar 4-24 days after the date the department first posted the entire bid or 4-25 proposal solicitation package in accordance with Subsection (g), as 5-1 applicable. The minimum time for posting required by this 5-2 subsection and Subsection (h) does not apply in an emergency 5-3 requiring the state agency to make the procurement more quickly to 5-4 prevent a hazard to life, health, safety, welfare, or property or 5-5 to avoid undue additional cost to the state. 5-6 (j) A contract or procurement award made by a state agency 5-7 that violates the applicable minimum time for posting required by 5-8 Subsections (h) and (i) is void. 5-9 (k) Each state agency that will award a procurement contract 5-10 estimated to exceed $25,000 in value shall send to the department: 5-11 (1) the information the department requires for 5-12 posting in the state business daily under this section; and 5-13 (2) a notice when the procurement contract has been 5-14 awarded or when the state agency has decided to not make the 5-15 procurement. 5-16 (l) The department may adopt rules, prescribe forms, and 5-17 require information to administer this section. The department 5-18 shall send any proposed rules to the governor, Legislative Budget 5-19 Board, comptroller, state auditor, and commission for review and 5-20 comment. 5-21 (m) The requirements of this section are in addition to the 5-22 requirements of other law relating to the solicitation of bids, 5-23 proposals, or expressions of interest for a procurement by a state 5-24 agency. This section does not affect whether a state agency is 5-25 required to award a procurement contract through competitive 6-1 bidding, competitive sealed proposals, or another method. 6-2 SECTION 2. The minimum posting time requirement of 6-3 Subsections (h) and (i), Section 2155.074, Government Code, as 6-4 added by this Act, and the provisions of Subsection (j), Section 6-5 2155.074, Government Code, as added by this Act, apply only to a 6-6 procurement contract awarded on or after July 1, 1998. 6-7 SECTION 3. This Act takes effect June 1, 1998, except that 6-8 the Texas Department of Commerce may adopt rules, procedures, and 6-9 forms and make agreements necessary to administer this Act 6-10 beginning September 1, 1997. 6-11 SECTION 4. The importance of this legislation and the 6-12 crowded condition of the calendars in both houses create an 6-13 emergency and an imperative public necessity that the 6-14 constitutional rule requiring bills to be read on three several 6-15 days in each house be suspended, and this rule is hereby suspended.