SRC-AMY S.B. 1412 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1412
78R4816 MTB-FBy: Deuell
Infrastructure Development and Security
4/4/2003
As Filed


DIGEST AND PURPOSE 

Currently, Texas law does not specifically permit transportation
authorities to use the Internet for the electronic transmission of bids
and proposals because the bids are required to be sealed.  The use of
electronic bidding by governmental entities is on the rise, and is
generally  recognized as a cost-effective and efficient way to streamline
the bid process and provide a paper-free option for vendors. State
agencies, municipalities, and cities are authorized to participate in
e-procurement. Additionally, transportation authorities are not authorized
to use reverse auction, a form of competitive bidding whereby the buyer
announces the product it wants to buy and prospective sellers bid against
each other for the lowest offering price.  As proposed, S.B. 1412
authorizes regional transportation authorities to use electronic
transmission of bids and proposals and the reverse auction procedure. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 452.106, Transportation Code, by amending
Subsection (a) and adding Subsection (c), as follows: 

(a) Includes among the procedures, guidelines, and rules which the
executive committee of a regional transportation authority are authorized
to adopt and enforce, the electronic transmission of bids and proposals
and the use of the reverse auction procedure, as defined by Section
2155.062 (Purchase Methods), Government Code. 

(c) Requires a procurement procedure, guideline or rule covering the
electronic transmission of bids and proposals to provide for the
identification, security, and confidentiality or an electronic bid or
proposal, and that an electronic bid or proposal is not required to be
sealed and it remains effectively unopened until the appropriate time. 

SECTION 2.  Amends Section 452.107(a), Transportation Code, to include the
reverse auction procedure as a solicitation of competitive sealed bids or
proposals. 

SECTION 3.  (a) and (b) Make application of this Act prospective. 

SECTION 4.  Effective date: September 1, 2003.