HBA-CBW, SEP H.B. 823 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 823
By: Heflin
State Affairs
2/26/2001
Introduced



BACKGROUND AND PURPOSE 

Reverse auctions are a method of purchasing by which the suppliers, rather
than the buyers, bid for contracts to provide goods and services.
Increasingly, units of government are using this method to save money and
increase competition in the bidding process.  However, in December 2000,
the attorney general issued an opinion stating that the General Services
Commission (GSC) may not purchase goods and services through reverse
auctions without specific statutory authority to do so.  House Bill 823
authorizes GSC to use reverse auctions as a method of purchasing goods and
services.   

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 823 amends the Government Code to authorize the General Services
Commission to use the reverse auction procedure in purchasing goods and
services. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.