By Lucio                                              S.B. No. 1518
         77R6638 BDH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to state purchasing using the reverse auction procedure.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1. Section 2155.062(a), Government Code, is amended
 1-5     to read as follows:
 1-6           (a)  In purchasing goods and services the commission may use,
 1-7     but is not limited to, the:
 1-8                 (1)  contract purchase procedure;
 1-9                 (2)  multiple award contract procedure;  [or]
1-10                 (3)  open market purchase procedure; or
1-11                 (4)  reverse auction procedure.
1-12           SECTION 2.  Subchapter B, Chapter 2155, Government Code, is
1-13     amended by adding Section 2155.0635 to read as follows:
1-14           Sec. 2155.0635.  REVERSE AUCTION. (a)  Use of the reverse
1-15     auction procedure satisfies any law requiring competitive bidding
1-16     in state purchases.
1-17           (b)  This section applies to competitive bidding requirements
1-18     in this subtitle and in any other state law.
1-19           SECTION 3. (a)  The following goods purchased by the Texas
1-20     Department of Transportation or on behalf of the department by the
1-21     General Services Commission must be purchased using the reverse
1-22     auction procedure and in accordance with the schedule under
1-23     Subsection (b) of this section:
1-24                 (1)  cement, aggregate, and base;
 2-1                 (2)  gasoline and diesel fuel;
 2-2                 (3)  traffic paint and beads;
 2-3                 (4)  office machines and furniture; and
 2-4                 (5)  drainage materials, including culverts.
 2-5           (b)  The goods identified by Subsection (a) of this section
 2-6     must be purchased in accordance with the following schedule:
 2-7                 (1)  for the fiscal year beginning September 1, 2001,
 2-8     at least 10 percent of the goods, as determined by the total dollar
 2-9     value of the goods, must be purchased using the reverse auction
2-10     procedure;
2-11                 (2)  for the fiscal year beginning September 1, 2002,
2-12     at least 20 percent of the goods, as determined by the total dollar
2-13     value of the goods, must be purchased using the reverse auction
2-14     procedure;
2-15                 (3)  for the fiscal year beginning September 1, 2003,
2-16     at least 30 percent of the goods, as determined by the total dollar
2-17     value of the goods, must be purchased using the reverse auction
2-18     procedure;
2-19                 (4)  for the fiscal year beginning September 1, 2004,
2-20     at least 40 percent of the goods, as determined by the total dollar
2-21     value of the goods, must be purchased using the reverse auction
2-22     procedure; and
2-23                 (5)  for the fiscal year beginning September 1, 2005,
2-24     and for each subsequent fiscal year, at least 50 percent of the
2-25     goods, as determined by the total dollar value of the goods, must
2-26     be purchased using the reverse auction procedure.
2-27           SECTION 4.  This Act takes effect immediately if it receives
 3-1     a vote of two-thirds of all the members elected to each house, as
 3-2     provided by Section 39, Article III, Texas Constitution.  If this
 3-3     Act does not receive the vote necessary for immediate effect, this
 3-4     Act takes effect September 1, 2001.