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.