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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of a governmental entity to limit bidding |
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on certain public contracts to bidders that are small businesses. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 271.021, Local Government Code, is |
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amended by adding Subdivision (5) to read as follows: |
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(5) "Small business" means a small business concern as |
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defined by the United States Small Business Administration under 15 |
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U.S.C. Section 632. |
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SECTION 2. Section 271.025(a), Local Government Code, is |
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amended to read as follows: |
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(a) The governmental entity must advertise for bids. The |
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advertisement for bids must include a notice that: |
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(1) describes the work; |
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(2) states the location at which the bidding |
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documents, plans, specifications, or other data may be examined by |
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all bidders; [and] |
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(3) states the time and place for submitting bids and |
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the time and place that bids will be opened; and |
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(4) if Section 271.0255 applies to the contract, |
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states that only a small business may bid on the contract. |
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SECTION 3. Subchapter B, Chapter 271, Local Government |
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Code, is amended by adding Section 271.0255 to read as follows: |
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Sec. 271.0255. SMALL BUSINESS PROGRAM. (a) |
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Notwithstanding any other provision of this chapter, the governing |
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body of a governmental entity may establish a program to limit |
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bidding on certain contracts to bidders that are small businesses. |
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(b) The governing body of a governmental entity that |
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establishes a program under this section may accept bids on a |
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contract only from bidders that are small businesses if: |
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(1) the governing body determines the contract is |
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appropriate for performance by a small business; and |
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(2) the contract requires an expenditure of not more |
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than $1 million. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2021. |