By:  Pitts                                                        H.B. No. 3242



A BILL TO BE ENTITLED

AN ACT

relating to the use of the reverse auction procedure by state 
agencies.     
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 2155.062(d), Government Code, is amended 
to read as follows:
	(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.
	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 30 
percent of the dollar value of goods purchased by the commission 
shall be purchased using the reverse auction procedure.
	(b)  Notwithstanding Subsection (a), during the state fiscal 
biennium that begins September 1, 2003, at least 10 percent of the 
dollar value of goods purchased by the commission shall be 
purchased using the reverse auction procedure.  This subsection 
expires September 1, 2005.
	(c)  Notwithstanding Subsection (a), during the state fiscal 
biennium that begins September 1, 2005, at least 20 percent of the 
dollar value of goods purchased by the commission shall be 
purchased using the reverse auction procedure.  This subsection 
expires September 1, 2007.
	SECTION 3.  This Act takes effect September 1, 2003.