SRC-VRA S.B. 1752 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1752
By: Estes
State Affairs
4/4/2003
As Filed


DIGEST AND PURPOSE 

A reverse auction is an online bidding procedure that can last as short as
an hour or as long as two weeks.  The auction takes place at a previously
scheduled time and Internet location. Multiple suppliers access the
website to bid on projects, with the ability to see what others have bid
and offer lower amounts.  As proposed, S.B. 1752 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

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

SECTION 2.  Amends Chapter 2155B, Government Code, by adding Section
2155.085, as follows: 

Sec.  2155.085.  REVERSE AUCTION PROCEDURE.  (a) Requires at least 30
percent of the dollar value of goods purchased by the Texas Building and
Procurement Commission (TBPC) be purchased using the reverse auction
procedure. 
 
(b)  Requires at least 10 percent of the dollar value of goods purchased
by TBPC, notwithstanding Subsection (a), during the state fiscal biennium
that begins September 1, 2003, to be purchased using the reverse auction
procedure.  Provides that this subsection expires September 1, 2005. 
 
(c)  Requires at least 20 percent of the dollar value of goods purchased
by TBPC notwithstanding Subsection (a), during the state fiscal biennium
that begins September 1, 2005, to be purchased using the reverse auction
procedure.  Provides that this subsection expires September 1, 2007. 
 
SECTION 3.  Effective date: September 1, 2003.