H.B. No. 3242




AN ACT

relating to the use of the reverse auction procedure by the Texas 
Building and Procurement Commission.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 2155.062, Government Code, is amended by 
amending Subsections (a) and (d) and adding Subsection (e) to read 
as follows:
	(a)  Except as provided by Subsection (e), in [In] purchasing 
goods and services the commission may use, but is not limited to, 
the:
		(1)  contract purchase procedure;                                             
		(2)  multiple award contract procedure, including 
under any schedules developed under Subchapter I;
		(3)  open market purchase procedure;  or                                      
		(4)  reverse auction procedure.                                               
	(d)  In this subchapter [section], "reverse auction 
procedure" means:
		(1)  a real-time bidding process usually lasting less 
than one hour and taking place at a previously scheduled time and 
Internet location, in which multiple suppliers, anonymous to each 
other, submit bids to provide the designated goods or services;  or
		(2)  a bidding process usually lasting less than two 
weeks and taking place during a previously scheduled period and at a 
previously scheduled Internet location, in which multiple 
suppliers, anonymous to each other, submit bids to provide the 
designated goods or services.
	(e)  The commission and other state agencies may not use the 
reverse auction procedure in purchasing services related to the 
construction, remodeling, repair, or maintenance of a building or 
other public work.
	SECTION 2.  Subchapter B, Chapter 2155, Government Code, is 
amended by adding Section 2155.085 to read as follows:
	Sec. 2155.085.  REVERSE AUCTION PROCEDURE.  (a)  At least 10 
percent of the dollar value of open market purchases, other than 
purchases of professional services as defined by Section 2254.002, 
that are made by a state agency or by the commission on behalf of a 
state agency each state fiscal year, and for which the reverse 
auction procedure may be used, shall be purchased using the reverse 
auction procedure.
	(b)  In September of each year, a state agency shall submit 
to the governor, the lieutenant governor, and the speaker of the 
house of representatives a written justification if the agency did 
not comply with Subsection (a) during the preceding state fiscal 
year.
	SECTION 3.  This Act takes effect September 1, 2003.                           




______________________________              ______________________________
 
   President of the Senate                               Speaker of the House      

	I certify that H.B. No. 3242 was passed by the House on May 2, 
2003, by a non-record vote; and that the House concurred in Senate 
amendments to H.B. No. 3242 on May 26, 2003, by a non-record vote.

                                                  ______________________________
                                                     Chief Clerk of the House   

	
I certify that H.B. No. 3242 was passed by the Senate, with 
amendments, on May 24, 2003, by a viva-voce vote.

                                                  ______________________________
                                                      Secretary of the Senate   



APPROVED: __________________                                                
 
                Date                                                         




 
         __________________                                              
 
              Governor