By:  Turner (Senate Sponsor - Estes)                              H.B. No. 908
	(In the Senate - Received from the House May 16, 2005; 
May 17, 2005, read first time and referred to Committee on 
Government Organization; May 20, 2005, reported favorably, as 
amended, by the following vote:  Yeas 6, Nays 0; May 20, 2005, sent 
to printer.)


COMMITTEE AMENDMENT NO. 1                                                By:  Harris


Amend HB 908 as follows:                                                    
	In Section 1, Subsection (a), strike "Except as provided by 
Subsection (e), in".
	In Section 1, Subsection (a), replace "[In]" with "In".    
	In Section 1, strike Subsection (e).                                           


A BILL TO BE ENTITLED

AN ACT


relating to the use of the reverse auction procedure by the Texas 
Building and Procurement Commission and other state agencies.
	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 obtaining goods or services, including 
professional or consulting services subject to Chapter 2254, 
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)  The 
commission shall:
		(1)  except as provided by Section 2155.062(e), 
purchase goods or services using the reverse auction procedure 
whenever:
			(A)  the procedure provides the best value to the 
state; or         
			(B)  all purchasing methods provide equal value to 
the state;       
		(2)  offer historically underutilized businesses 
assistance and training relating to the reverse auction procedure; 
and
		(3)  advise historically underutilized businesses on 
contracts available using the reverse auction procedure.
	(b)  The commission shall set a goal of purchasing at least 
20 percent of the dollar value of goods or services purchased by the 
commission using the reverse auction procedure.
	(c)  On or before December 1, 2006, the commission shall 
report to the governor, the lieutenant governor, the speaker of the 
house of representatives, the chair of the Senate Finance 
Committee, and the chair of the House Appropriations Committee on 
the effectiveness of using the reverse auction procedure to 
purchase goods and services, including any cost savings realized by 
the state from using the procedure.  This subsection expires 
September 1, 2007.
	SECTION 3.  This Act takes effect September 1, 2005.                           



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