HBA-TBM H.B. 1981 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 1981 By: Farabee County Affairs 7/25/2001 Enrolled BACKGROUND AND PURPOSE Prior to the 77th Legislature, state law was unclear whether counties could accept competitive bids electronically because such bids were required to be sealed. Modern identification and security measures for electronic communications make it possible to ensure the confidentiality of the bids. Electronic bidding should help streamline the processing of bids and vendors may benefit from the convenience. House Bill 1981 authorizes electronic bidding and provides for the adoption of rules regarding electronic bidding. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 1981 amends the Local Government Code to provide that in the procedure for competitive bidding, the commissioners court of the county or the governing body shall provide all bidders with the opportunity to bid on the same items on equal terms and have bids judged according to the same standards as set forth in the specifications. The bill requires a county or a governmental agency or entity to receive bids or proposals in a fair and confidential manner and authorizes a county to receive bids or proposals in hard-copy format or through electronic transmission. The bill requires a county or governmental agency or entity to accept any bids or proposals submitted in hard-copy format. The bill removes a provision requiring all bids or proposals to be sealed. The bill requires the county purchasing agent, before receiving electronic bids or proposals, to adopt rules to ensure the identification, security, and confidentiality of electronic bids or proposals. The bill authorizes a municipality to receive bids or proposals through electronic transmission if the governing body of the municipality adopts rules to ensure the identification, security, and confidentiality of electronic bids or proposals and to ensure that the electronic bids or proposals remain effectively unopened until the proper time. An electronic bid or proposal is not required to be sealed. A provision that applies to a sealed bid or proposal applies to a bid or proposal received through electronic transmission in accordance with rules adopted by the governing body of a municipality. EFFECTIVE DATE September 1, 2001.