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


Senate Research CenterC.S.S.B. 1752
78R13331 MTB-FBy: Estes
State Affairs
4/29/2003
Committee Report (Substituted)


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.  C.S.S.B. 1752 requires the Texas Building and
Procurement Commission to use reverse auctions for ten percent of
purchases. 

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" for this subchapter, rather than section. 

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

Sec.  2155.085.  REVERSE AUCTION PROCEDURE.  (a) Requires at least 10
percent of the dollar value of open market purchases, other than purchases
of professional services, made by a state agency or the Texas Building and
Procurement Commission (TBPC) on behalf of a state agency each fiscal year
to be purchased using the reverse auction procedure. 
 
(b)  Requires a state agency, in September of each year, to submit to
certain state officials a written justification if the agency did not
comply with Subsection (a) during the preceding state fiscal year. 
 
SECTION 3.  Effective date: September 1, 2003.