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.