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.