SRC-BWC S.B. 1518 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1518
77R6638 BDH-DBy: Lucio
State Affairs
4/5/2001
As Filed


DIGEST AND PURPOSE 

A reverse auction allows multiple sellers to bid to provide goods or
services electronically with the price falling from bid to bid.  The buyer
awards the contract to the lowest bidder at the end of the auction.
According to the attorney general, reverse auctions are not permissible
under current law and statutory authority is required.  As proposed, S.B.
1518 authorizes the General Services Commission to use reverse auctions as
one purchasing method and specifies that the use of reverse auctions
satisfies any law requiring competitive bidding in state purchases.  S.B.
1518 also specifies which commodities purchased for or by the Texas
Department of Transportation are required to be purchased by reverse
auctions.  S.B. 1518 establishes the percentages of those commodities,
ranging from 10 to 50 percent, that would be purchased using reverse
auctions for fiscal years 2002 through 2006. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 2155.062(a), Government Code, to authorize the
commission, in purchasing goods and services, to use the reverse auction
procedure.   

SECTION 2.  Amends Chapter 2155B, Government Code, by adding Section
2155.0635, as follows: 

Sec. 2155.0635.  REVERSE AUCTION.  Provides that the reverse auction
procedure satisfies any law requiring competitive bidding in state
purchases.  Provides that this section applies to competitive bidding
requirements in this subtitle and in any other state law.   

SECTION 3.  Requires certain goods purchased by the Texas Department of
Transportation or on behalf of the department by the General Services
Commission to be purchased using the reverse auction procedure and in
accordance with the schedule under this section.  Sets forth a schedule for
purchasing goods identified by the section.   

SECTION 4.  Effective date:  upon passage or September 1, 2001.