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.