HBA-MSH H.B. 2318 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2318
By: Solomons
County Affairs
3/26/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, it is unclear whether counties and municipalities may
accept competitive bids electronically because such bids are 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.  Furthermore, the requirement for
the publication of notices of bids and proposals is costly and untimely
compared to posting the notice on the Internet.  House Bill 2318 authorizes
municipalities and counties to receive bids and post notices via the
Internet.  

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 2318 amends the Local Government Code to authorize a
municipality, county, or commissioners court to provide for the county to
receive bids or requests for proposals through the Internet or by other
electronic means if the municipality, county, or agency implements security
measures regarding the electronic transmission of information that ensure
bids and proposals are not viewed by unauthorized persons or tampered with,
and that they remain effectively unopened until the proper time.  The bill
specifies that a bid or proposal is considered sealed if it is received by
a municipality through the Internet or by other electronic means in
accordance with security measures that the municipality or county
implements (Secs. 252.004, 262.0235, 263.007, and 271.906).  The bill sets
forth provisions regarding the posting of notice by a county or
municipality of the time and place at which bids will be publicly opened
and read aloud on the Internet for at least two consecutive weeks (Secs.
252.041, 262.025, and 263.007). 

The bill sets forth provisions regarding the posting of an intention to
issue obligation certificates for at least two consecutive weeks on the
Internet (Secs. 271.049 and 271.055).  The bill sets forth provisions
regarding a county commissioners court posting notice of a sale for at
least two consecutive weeks on the county's website (Sec. 263.153). 

EFFECTIVE DATE

September 1, 2001.