Enrolled Bill Summary

            House Bill 2295 amends the Local Government Code to allow a municipality with a population of 1.8 million or more to enter into a contract with a developer for certain public improvements without having to comply with competitive sealed bidding procedures if the municipality’s participation in the contract does not exceed 70 percent of the total contract price. The bill clarifies that the municipality is liable only for the agreed payment of its share of the contract. The bill requires the municipality, when determining the best value for the contract, to consider the impact on its ability to comply with laws, rules, and programs relating to minority-owned and women-owned businesses, as well as those relating to historically underutilized businesses (HUBs) and to nonprofit organizations that employ persons with disabilities.

                Reason Given for Veto: "A late amendment to House Bill No. 2295 is problematic and lacks the criteria needed to guide municipalities in establishing and administering a program similar to the state’s Historically Underutilized Business (HUB) Program. Without criteria needed to certify and verify minority-owned and women-owned businesses, this bill would inject ambiguity into the bid selection process and could undermine the success of the state HUB program.