By Goodman H.B. No. 421
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the competitive bidding requirements of governmental
1-3 entities.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 252.021, Local Government Code, is
1-6 amended to read as follows:
1-7 Sec. 252.021. COMPETITIVE BIDDING AND COMPETITIVE PROPOSAL
1-8 REQUIREMENTS. (a) Before a municipality <with 50,000 or more
1-9 inhabitants> may enter into a contract that requires an expenditure
1-10 of more than $25,000 <$10,000> from one or more municipal funds,
1-11 the municipality must comply with the procedure prescribed by this
1-12 chapter for competitive sealed bidding or competitive sealed
1-13 proposals provided, however, all bids for insurance requiring a
1-14 payment of more than $5,000 shall be by competitive bids or
1-15 proposals.
1-16 (b) <Before a municipality with fewer than 50,000
1-17 inhabitants may enter into a contract that requires an expenditure
1-18 of more than $5,000, the municipality must comply with the
1-19 procedure prescribed by this chapter for competitive sealed bidding
1-20 or competitive sealed proposals.>
1-21 <(c)> A municipality may use the competitive sealed proposal
1-22 procedure only for high technology procurements.
1-23 SECTION 2. Section 271.024, Local Government Code, is
2-1 amended to read as follows:
2-2 Sec. 271.024. COMPETITIVE BIDDING PROCEDURE APPLICABLE TO
2-3 CONTRACT. If a governmental entity is required by statute to award
2-4 a contract for the construction, repair, or renovation of a
2-5 structure, road, highway, or other improvement or addition to real
2-6 property on the basis of competitive bids, and if the contract
2-7 requires the expenditure of more than $25,000 <$10,000> from the
2-8 funds of the entity, the bidding on the contract must be
2-9 accomplished in the manner provided by this subchapter.
2-10 SECTION 3. Section 252.041(a), Local Government Code, is
2-11 amended to read as follows:
2-12 (a) If the competitive sealed bidding requirement applies to
2-13 the contract, notice of the time and place at which the bids will
2-14 be publicly opened and read aloud <contract will be let> must be
2-15 published at least once a week for two consecutive weeks in a
2-16 newspaper published in the municipality. The date of the first
2-17 publication must be before the 14th day before the date set to
2-18 publicly open the bids and read them aloud <let the contract>. If
2-19 no newspaper is published in the municipality, the notice must be
2-20 posted at the city hall for 14 days before the date set to publicly
2-21 open the bids and read them aloud <let the contract>.
2-22 SECTION 4. Section 252.002, Local Government Code, is
2-23 amended to read as follows:
2-24 Sec. 252.002. MUNICIPAL CHARTER CONTROLS IN CASE OF
2-25 CONFLICT. Any provision in the charter of a home-rule municipality
3-1 that relates to the notice of contracts, advertisement of the
3-2 notice, requirements for the taking of sealed bids based on
3-3 specifications for public improvements or purchases, <or> the
3-4 manner of publicly opening bids or reading them aloud, or the
3-5 manner of letting contracts and that is in conflict with this
3-6 chapter controls over this chapter unless the municipality elects
3-7 to have this chapter supersede the charter.
3-8 SECTION 5. Sections 271.055(a) and (b), Local Government
3-9 Code, are amended to read as follows:
3-10 (a) An issuer must give notice of the time, date, and place
3-11 at which the issuer will publicly open the bids on a contract <let
3-12 a contract> for which competitive bidding is required by this
3-13 subchapter and read the bids aloud. The notice must be given in
3-14 accordance with Subsection (b) or in accordance with:
3-15 (1) Chapter 252, if the issuer is a municipality;
3-16 (2) the municipal charter of the issuer, if the issuer
3-17 is a home-rule municipality; or
3-18 (3) the County Purchasing Act (Subchapter C, Chapter
3-19 262), if the issuer is a county.
3-20 (b) If an issuer gives notice under this subsection, the
3-21 notice must:
3-22 (1) be published once a week for two consecutive weeks
3-23 in a newspaper, as defined by Chapter 84, Acts of the 43rd
3-24 Legislature, 1st Called Session, 1933 (Article 28a, Vernon's Texas
3-25 Civil Statutes), that is of general circulation in the area of the
4-1 issuer, with the date of the first publication to be before the
4-2 14th day before the date set for the public opening of the bids and
4-3 the reading of the bids aloud <receipt of bids>; and
4-4 (2) state that plans and specifications for the work
4-5 to be done or specifications for the machinery, supplies,
4-6 equipment, or materials to be purchased are on file with a
4-7 designated official of the issuer and may be examined without
4-8 charge.
4-9 SECTION 6. Section 252.022(a), Local Government Code, is
4-10 amended to read as follows:
4-11 (a) This chapter does not apply to an expenditure for:
4-12 (1) a procurement made because of a public calamity
4-13 that requires the immediate appropriation of money to relieve the
4-14 necessity of the municipality's residents or to preserve the
4-15 property of the municipality;
4-16 (2) a procurement necessary to preserve or protect the
4-17 public health or safety of the municipality's residents;
4-18 (3) a procurement necessary because of unforeseen
4-19 damage to public machinery, equipment, or other property;
4-20 (4) a procurement for personal or professional
4-21 services;
4-22 (5) a procurement for work that is performed and paid
4-23 for by the day as the work progresses;
4-24 (6) a purchase of land or a right-of-way;
4-25 (7) a procurement of items that are available from
5-1 only one source, including:
5-2 (A) items that are available from only one
5-3 source because of patents, copyrights, secret processes, or natural
5-4 monopolies;
5-5 (B) films, manuscripts, or books;
5-6 (C) electricity, gas, water, and other utility
5-7 services;
5-8 (D) captive replacement parts or components for
5-9 equipment; and
5-10 (E) books, papers, and other library materials
5-11 for a public library that are available only from the persons
5-12 holding exclusive distribution rights to the materials;
5-13 (8) a purchase of rare books, papers, and other
5-14 library materials for a public library;
5-15 (9) paving drainage, street widening, and other public
5-16 improvements, or related matters, if at least one-third of the cost
5-17 is to be paid by or through special assessments levied on property
5-18 that will benefit from the improvements;
5-19 (10) a public improvement project, authorized by the
5-20 voters of the municipality, for which there is a deficiency of
5-21 funds for completing the project in accordance with the plans and
5-22 purposes authorized by the voters;
5-23 (11) a payment under a contract by which a developer
5-24 participates in the construction of a public improvement as
5-25 provided by Subchapter C, Chapter 212; <and>
6-1 (12) personal property sold:
6-2 (A) at an auction by a state licensed
6-3 auctioneer;
6-4 (B) at a going out of business sale held in
6-5 compliance with Subchapter F, Chapter 17, Business & Commerce Code;
6-6 or
6-7 (C) by a political subdivision of this state, a
6-8 state agency of this state, or an entity of the federal government;
6-9 and
6-10 (13) services performed by blind or severely disabled
6-11 persons.
6-12 SECTION 7. The importance of this legislation and the
6-13 crowded condition of the calendars in both houses create an
6-14 emergency and an imperative public necessity that the
6-15 constitutional rule requiring bills to be read on three several
6-16 days in each house be suspended, and this rule is hereby suspended.