HOUSE BILL REPORT

HB 1967

As Passed House:

March 13, 2003

Title: An act relating to electronic and web-based bidding.

Brief Description: Allowing the state purchasing and material control director to receive electronic and web-based bids.

Sponsors: By Representatives Haigh, Miloscia and Hunt; by request of Department of General Administration.

Brief History:

Committee Activity:

State Government: 3/4/03 [DP].

Floor Activity:

Passed House: 3/13/03, 96-0.

HOUSE COMMITTEE ON STATE GOVERNMENT

Majority Report: Do pass. Signed by 9 members: Representatives Haigh, Chair; Miloscia, Vice Chair; Armstrong, Ranking Minority Member; Shabro, Assistant Ranking Minority Member; Hunt, McDermott, Nixon, Tom and Wallace.

Staff: Anne Warwick (786-7291) and Katie Blinn (786-7114).

Background:

The Department of General Administration (GA) coordinates state agencies' purchases and sales of goods and services. All purchases and sales are based on competitive bids, and a formal sealed bid procedure is used as a standard procedure for all purchases and contracts. Formal sealed bidding is not used in certain instances, such as:

•    emergency purchases;

•    purchases not exceeding $35,000;

•    single source supply purchases;

•    insurance and bonds by the risk management division;

•    contracts and purchases for vocational rehabilitation clients; and

•    certain purchases for higher education.

Public bids are solicited by public notice, mailings, and electronic transmissions. All bids must be made in writing.

Summary of Bill:

State statute is amended to allow for electronic or web-based bid procedures for all purchases, contracts, and sales executed by the GA. Competitive bidding procedures will allow for the bid to be given in an electronic format or in writing and the bid prices will be disclosed during the electronic or web-based bidding process.

Appropriation: None.

Fiscal Note: Not Requested.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.

Testimony For: Beginning in the mid 1990s, the GA really began to modernize their procedures. Electronic and web-based bidding represents the next phase for formal bid procedures. Nationally many states are utilizing the Internet for bid transactions. Adding electronic and web-based bid procedures will not eliminate any formal bidding procedure but improve upon those procedures.

Testimony Against: None.

Testified: Representative Haigh, prime sponsor; and Bill Joplin, Department of General Administration.