SRC-SEW H.B. 1981 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 1981
By: Farabee (Lindsay)
Intergovernmental Relations
4/19/2001
Engrossed


DIGEST AND PURPOSE 

Under current law, it is unclear whether counties may accept competitive
bids electronically because such bids are required to be sealed. Modern
identification and security measures for electronic communications make it
possible to ensure the confidentiality of the bids. Electronic bidding
should help streamline the processing of bids and vendors may benefit from
the convenience.   As proposed, H.B. 1981 authorizes electronic bidding and
requires the county purchasing agent to adopt rules regarding electronic
bidding.  

RULEMAKING AUTHORITY

Rulemaking authority is granted to the county purchasing agent in SECTION 2
(Section 262.022(a), Local Government Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 262.022, Local Government Code, by adding
Subdivision (10) to define "competitive bidding." 

SECTION 2.  Amends Section 262.023(a), Local Government Code, to require
the county purchasing agent, prior to receiving electronic bids, to adopt
rules in conformance with Section 262.011(o) to ensure the identification,
security, and confidentiality of such bids.  Deletes language requiring all
bids or proposals to be sealed. 

SECTION 3.  Amends Section 271.003, Local Government Code, by adding
Subdivision (12) to define "competitive bidding." 

SECTION 4.  Effective date: September 1, 2001.