By Junell                                             H.B. No. 2528
         77R8537 MCK-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to development and management of an electronic procurement
 1-3     system for state and local government.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Chapter 2177, Government Code, is amended to read
 1-6     as follows:
 1-7           Sec. 2177.001.  DEFINITIONS.  In this chapter:
 1-8                 (1)  "Electronic procurement" means the purchase of
 1-9     goods and services through an electronic network on the Internet.
1-10     The term includes:
1-11                       (A)  the process of negotiating contracts with
1-12     vendors on behalf of government purchasers in accordance with state
1-13     laws;
1-14                       (B)  the creation and maintenance on the network
1-15     of an itemized electronic catalogue of goods and services that are
1-16     available for purchase;
1-17                       (C)  the process of purchasing goods and services
1-18     on the network;
1-19                       (D)  the accounting and data processing
1-20     procedures required before, during, and after an electronic
1-21     purchase is made; and
1-22                       (E)  the verification of an electronic purchase
1-23     at time of delivery and the inventorying and subsequent
1-24     distribution of purchased items.
 2-1                 (2)  "Department" means the Department of Information
 2-2     Resources.
 2-3                 (3)  "Local government" has the meaning assigned by
 2-4     Section 271.081, Local Government Code.
 2-5                 (4)  "State agency" means:
 2-6                       (A)  a department, commission, board, office, or
 2-7     other agency in the executive branch of state government created by
 2-8     the state constitution or a state statute; or
 2-9                       (B)  the supreme court, the court of criminal
2-10     appeals, a court of appeals, or the Texas Judicial Council.
2-11           Sec. 2177.002.  INSTITUTION OF HIGHER EDUCATION.  An
2-12     institution of higher education, as defined by Chapter 61,
2-13     Education Code, may, at the option of the institution or the
2-14     governing board of the institution, participate in the electronic
2-15     procurement system established under this chapter.
2-16           Sec. 2177.003.  ELECTRONIC PROCUREMENT MARKETPLACE.  (a)  The
2-17     department [commission] shall establish and manage the electronic
2-18     infrastructure of an electronic procurement marketplace.  The
2-19     commission shall manage and administer the content of the
2-20     electronic procurement marketplace in accordance with this
2-21     subtitle.  The electronic procurement marketplace must comply with
2-22     the requirements of Section 403.015 and the Internet site created
2-23     under Section 2054.062 or any subsequent statute.  The department
2-24     or commission, as appropriate, may enter into contracts with
2-25     private or public entities to establish or maintain all or part of
2-26     the databases comprising the marketplace, to the extent feasible,
2-27     including contracts to procure hardware or software.  The
 3-1     department or commission, as appropriate, shall procure all goods
 3-2     and services related to the marketplace through a competitive
 3-3     selection process appropriate for the good or service being
 3-4     acquired.
 3-5           (b)  The commission, in consultation with the department
 3-6     [Department of Information Resources], shall define standards,
 3-7     including keyword and product code standards, for the electronic
 3-8     procurement marketplace.  The marketplace may contain:
 3-9                 (1)  information relevant to the state's standard
3-10     procurement specifications for goods and services;
3-11                 (2)  information about vendors, including information
3-12     from the centralized master bidders list and vendor performance
3-13     information;
3-14                 (3)  information about products, including product
3-15     testing results;
3-16                 (4)  historical purchasing information, qualified
3-17     purchase lists, and trends; and
3-18                 (5)  information about the availability of surplus
3-19     property.
3-20           (c)  The department [commission] may adopt rules relating to
3-21     the design and use of the electronic procurement marketplace that
3-22     concern the technical requirements of the marketplace.  The
3-23     commission may adopt rules relating to the use of the marketplace
3-24     for its intended purpose, including rules that require state
3-25     agencies to provide information for or receive information from the
3-26     marketplace.  The department and the commission shall consult in
3-27     adopting rules under this section.
 4-1           (d)  The commission may make state procurement information
 4-2     available to political subdivisions through the electronic
 4-3     procurement marketplace on a fee-for-service basis.  The commission
 4-4     shall set the fees in an amount that recovers the state's costs in
 4-5     providing the access to a political subdivision.
 4-6           (e)  Before developing a contract for the procurement of a
 4-7     good or service, a state agency may use the electronic procurement
 4-8     marketplace to determine the most appropriate method for acquiring
 4-9     the good or service.
4-10           (f)  The marketplace may contain:
4-11                 (1)  information relevant to the state's standard
4-12     procurement specifications for goods and services;
4-13                 (2)  information about vendors, including information
4-14     from the centralized master bidders list and vendor performance
4-15     information;
4-16                 (3)  information about products, including product
4-17     testing results; and
4-18                 (4)  historical purchasing information, qualified
4-19     purchase lists, and trends.
4-20           (g)  The department or commission may require information
4-21     from a state agency for inclusion in the electronic procurement
4-22     marketplace.
4-23           Sec. 2177.004 [2177.002].  ELECTRONIC COMMERCE NETWORK.  (a)
4-24     The department shall establish and the commission shall [establish
4-25     and] manage an electronic commerce network, to the extent feasible,
4-26     under which the state's purchasing transactions with vendors can be
4-27     accomplished electronically by means of facsimile transmissions and
 5-1     on-line transmission of necessary information.  The commission
 5-2     shall comply with applicable rules of the department [Department of
 5-3     Information Resources to the extent that they are based on the
 5-4     standard data protocol developed by the American National Standards
 5-5     Institute known as electronic data interchange or on other
 5-6     efficient standards as determined by the commission].
 5-7           (b)  The department or commission, as appropriate, may enter
 5-8     into contracts with one or more public or private entities to
 5-9     establish or support various elements of the network.  The
5-10     department or commission, as appropriate, shall procure all goods
5-11     and services related to the network through the competitive
5-12     selection process appropriate for the good or service being
5-13     acquired.
5-14           (c)  The commission may provide for a gateway between the
5-15     electronic procurement marketplace and the electronic commerce
5-16     network so that the elements of a procurement transaction that are
5-17     within state government and the elements of a procurement
5-18     transaction that involve communication with a vendor may all be
5-19     accomplished electronically.
5-20           (d)  Each state agency that is capable of participating in
5-21     the electronic commerce network must participate in the network and
5-22     participate in contracts entered into by the commission for the
5-23     establishment or support of the network.  The commission shall
5-24     charge an agency a fee for network services provided to the agency
5-25     by the commission or by a contractor so that the cost of providing
5-26     network services to an agency is paid by the agency.
5-27           (e)  The commission may allow political subdivisions and
 6-1     other public entities that are members of the commission's
 6-2     cooperative purchasing program to participate in the electronic
 6-3     commerce network.  The commission shall require that a
 6-4     participating political subdivision or other entity is charged a
 6-5     fee for the network services in the same manner that participating
 6-6     state agencies are charged fees under Subsection (d).
 6-7           (f)  The commission may also charge private businesses a fee
 6-8     for accessing the network.
 6-9           (g)  The department may adopt rules to administer this
6-10     section that concern the technical requirements of the network.
6-11     The commission may:
6-12                 (1)  adopt rules to administer this section relating to
6-13     the use of the network for its intended purpose; and
6-14                 (2)  require participating state agencies, political
6-15     subdivisions, and other public entities to designate a network
6-16     coordinator.
6-17           (h)  The department and the commission shall consult in
6-18     adopting rules under this section.
6-19           (i)  The requirements of this section and Section 2177.005
6-20     [2177.003] are in addition to the requirements of other law
6-21     relating to the solicitation of bids, proposals, or expressions of
6-22     interest for a procurement by the commission or another state
6-23     agency.  This section and Section 2177.005 [2177.003] do not affect
6-24     any other law that requires the commission or another state agency
6-25     to award a procurement contract through competitive bidding,
6-26     competitive sealed proposals, or another method.
6-27           Sec. 2177.005 [2177.003].  PARTICIPATION BY STATE AGENCIES IN
 7-1     ELECTRONIC COMMERCE NETWORK.  (a)  Each state agency shall and a
 7-2     local government or participating institution of higher education
 7-3     may send to the commission for posting on the electronic commerce
 7-4     network information on each procurement contract the value of which
 7-5     will exceed the amount of the agency's delegated purchasing
 7-6     authority under Section 2155.132:
 7-7                 (1)  without regard to the source of funds the agency
 7-8     will use for the procurement; and
 7-9                 (2)  including a procurement that is:
7-10                       (A)  a procurement by a state agency that is
7-11     otherwise exempt from the commission's purchasing authority;
7-12                       (B)  made under delegated purchasing authority
7-13     under Section 2155.131;
7-14                       (C)  related to a construction project; or
7-15                       (D)  a procurement of professional or consulting
7-16     services.
7-17           (b)  The commission and each state agency, local government,
7-18     and participating institution of higher education shall include in
7-19     the information placed on the electronic commerce network, to the
7-20     extent it is feasible, the following information for each
7-21     procurement [that the commission will make or that another state
7-22     agency will make] under Subsection (a):
7-23                 (1)  a description of the goods or services to be
7-24     procured;
7-25                 (2)  the estimated quantity of the goods or services to
7-26     be procured;
7-27                 (3)  if applicable, the previous price paid by the
 8-1     commission or another state agency for the same or similar goods or
 8-2     services;
 8-3                 (4)  the estimated date on which the goods or services
 8-4     to be procured will be needed; [and]
 8-5                 (5)  the name, business mailing address, and business
 8-6     telephone number of the commission, [employee or other] state
 8-7     agency, local government, or institution of higher education
 8-8     employee a person can contact to obtain additional information; and
 8-9                 (6)  all necessary information relating to making a bid
8-10     or proposal or other applicable expression of interest for the
8-11     procurement contract, including the terms and conditions of the
8-12     contract and opportunities available to a local government or a
8-13     participating institution of higher education for price discounts
8-14     on volume purchases under the terms of the contract.
8-15           (c)  The commission shall also post on the electronic
8-16     commerce network other information relating to the business
8-17     activity of the state that the commission considers to be of
8-18     interest to the public.  Each state agency shall provide the
8-19     commission with information the commission requires for purposes of
8-20     this subsection in a format prescribed by the commission.
8-21           (d)  Each state agency that will award a contract that has
8-22     been placed on the electronic commerce network under Subsection (a)
8-23     shall place notification of the awarding of the contract on the
8-24     electronic commerce network.
8-25           SECTION 2.  Section 2155.079, Government Code, is amended to
8-26     read as follows:
8-27           Sec. 2155.079.  BUYING UNDER CONTRACT ESTABLISHED BY AGENCY
 9-1     OTHER THAN COMMISSION.  (a)  The commission shall adopt rules
 9-2     specifying the circumstances under which it is advantageous for the
 9-3     state to allow a state agency to purchase goods or services under a
 9-4     contract made by another state agency other than the commission, a
 9-5     local government, a school district, or a participating institution
 9-6     of higher education.
 9-7           (b)  If commission rules allow other agencies to make
 9-8     purchases under a contract entered into by an agency using
 9-9     delegated purchasing authority, the agency purchasing under
9-10     delegated authority may offer the goods or services available under
9-11     the contract to other agencies, local governments, school
9-12     districts, or participating institutions of higher education [only
9-13     if the agency first:]
9-14                 [(1)  establishes that the goods or services being
9-15     offered under its contract are not available under a contract
9-16     administered by the commission; and]
9-17                 [(2)  informs the commission of the terms of the
9-18     contract and the capabilities of the vendor].
9-19           SECTION 3.  Subchapter D, Chapter 271, Local Government Code,
9-20     is amended by adding Section 271.084 to read as follows:
9-21           Sec. 271.084.  BUYING UNDER CONTRACT OF STATE AGENCY OR OTHER
9-22     LOCAL GOVERNMENT.  The General Services Commission shall adopt
9-23     rules specifying the circumstances under which it is advantageous
9-24     for the state to allow a local government to purchase goods or
9-25     services under a contract made by another local government or a
9-26     state agency other than the commission.
9-27           SECTION 4. (a)  This Act takes effect September 1, 2001.
 10-1          (b)  The General Services Commission shall adopt the rules
 10-2    required by Section 2155.079, Government Code, as amended by this
 10-3    Act, and Section 271.084, Local Government Code, as added by this
 10-4    Act, not later than January 1, 2002.