H.B. 3242 78(R)    BILL ANALYSIS


H.B. 3242
By: Pitts
Government Reform
Committee Report (Unamended)



BACKGROUND AND PURPOSE 
Legislation passed during the 77th Legislative Session authorized the
Texas Building and Procurement Commission (formerly General Services
Commission) to use online "reverse auctions" to purchase goods and
services.  In a reverse auction, suppliers, rather than buyers, bid
on-line for contracts.  Prices for goods and services begin high, and are
driven down as suppliers compete for a winning bid.  H.B. 3242 requires
the Texas Building and Procurement Commission to use reverse auctions for
ten percent of purchases in the 2003-2005 biennium, twenty percent of
purchases during the 2005-2007 biennium, and thirty percent of purchases
thereafter. 


RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 
   

ANALYSIS
SECTION 1.  Amends Section 2155.062(d), Government Code, to define
"reverse auction procedure" in this subchapter, rather than section. 

SECTION 2.   Amends Subchapter B, Chapter 2155, Government Code, by adding
Section 2155.085.   

Section 2155.085(a).  Adds new language requiring the Texas Building and
Procurement Commission to use a reverse auction procedure to purchase at
least 30 percent of the dollar value of goods and services purchased by
the commission each year. 
  
Section 2155.085(b).  Adds new language requiring the commission,
notwithstanding subsection (a), to use a reverse auction procedure to
purchase ten percent of the dollar value goods and services during the
biennium beginning September 1, 2003.  This subsection expires September
1, 2005. 

Section 2155.085(c).  Adds new language requiring the commission,
notwithstanding subsection (a), to use a reverse auction procedure to
purchase twenty percent of the dollar value of goods and services during
the biennium beginning September 1, 2005.  This subsection expires
September 1, 2007. 

SECTION 3.  Effective Date.


EFFECTIVE DATE
The Act takes effect September 1, 2003.