By McClendon                                           H.B. No. 852
         77R4082 BDH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to government purchasing using the reverse auction
 1-3     procedure.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 2155.062(a), Government Code, is amended
 1-6     to read as follows:
 1-7           (a)  In purchasing goods and services the commission may use,
 1-8     but is not limited to, the:
 1-9                 (1)  contract purchase procedure;
1-10                 (2)  multiple award contract procedure; [or]
1-11                 (3)  open market purchase procedure; or
1-12                 (4)  reverse auction procedure.
1-13           SECTION 2. Sections 271.083(a) and (b), Local Government
1-14     Code, are amended to read as follows:
1-15           (a)  A local government may participate in the purchasing
1-16     program of the commission, including participation in purchases
1-17     that use the reverse auction procedure, by filing with the
1-18     commission a resolution adopted by the governing body of the local
1-19     government requesting that the local government be allowed to
1-20     participate on a voluntary basis, and to the extent the commission
1-21     deems feasible, and stating that the local government will:
1-22                 (1)  designate an official to act for the local
1-23     government in all matters relating to the program, including the
1-24     purchase of items from the vendor under any contract, and that the
 2-1     governing body will direct the decisions of the representative;
 2-2                 (2)  be responsible for:
 2-3                       (A)  submitting requisitions to the commission
 2-4     under any contract; or
 2-5                       (B)  electronically sending purchase orders
 2-6     directly to vendors, or complying with commission procedures
 2-7     governing a reverse auction purchase, and electronically sending to
 2-8     the commission reports on actual purchases made under this
 2-9     paragraph that provide the information and are sent at the times
2-10     required by the commission;
2-11                 (3)  be responsible for making payment directly to the
2-12     vendor; and
2-13                 (4)  be responsible for the vendor's compliance with
2-14     all conditions of delivery and quality of the purchased item.
2-15           (b)  A local government that purchases an item under a state
2-16     contract or under a reverse auction procedure sponsored by the
2-17     commission satisfies any state law requiring the local government
2-18     to seek competitive bids for the purchase of the item.
2-19           SECTION 3. Subchapter Z, Chapter 271, Local Government Code,
2-20     is amended by adding Section 271.906 to read as follows:
2-21           Sec. 271.906.  REVERSE AUCTION METHOD OF PURCHASING. (a)  A
2-22     local government, as defined by Section 271.081, may use the
2-23     reverse auction procedure in purchasing goods and services in place
2-24     of any other method of purchasing that would otherwise apply to the
2-25     purchase.
2-26           (b)  A local government that uses the reverse auction
2-27     procedure must include in the procedure a notice provision and
 3-1     other provisions necessary to produce a method of purchasing that
 3-2     is advantageous to the local government and fair to vendors.
 3-3           SECTION 4.  This Act takes effect immediately if it receives
 3-4     a vote of two-thirds of all the members elected to each house, as
 3-5     provided by Section 39, Article III, Texas Constitution.  If this
 3-6     Act does not receive the vote necessary for immediate effect, this
 3-7     Act takes effect September 1, 2001.