H.B. No. 901
    1-1                                AN ACT
    1-2  relating to  contracts made by local governments.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 262.031(b), Local Government Code, is
    1-5  amended to read as follows:
    1-6        (b)  If a change order involves an increase or decrease in
    1-7  cost of $15,000 or less, the commissioners court may grant general
    1-8  authority to an employee to approve the change orders.  However,
    1-9  the original contract price may not be increased by more than 25
   1-10  percent unless the change order is necessary to comply with a
   1-11  federal or state statute, rule, regulation, or judicial decision
   1-12  enacted, adopted, or rendered after the contract was made.  The
   1-13  original contract price may not be decreased by 18 percent or more
   1-14  without the consent of the contractor.
   1-15        SECTION 2.  Subchapter Z, Chapter 271, Local Government Code,
   1-16  is amended by adding Section 271.903 to read as follows:
   1-17        Sec. 271.903.  COMMITMENT OF CURRENT REVENUE.  (a)  If a
   1-18  contract for the acquisition, including lease, of real or personal
   1-19  property retains to the governing body of a local government the
   1-20  continuing right to terminate at the expiration of each budget
   1-21  period of the local government during the term of the contract, is
   1-22  conditioned on a best efforts attempt by the governing body to
   1-23  obtain and appropriate funds for payment of the contract, or
   1-24  contains both the continuing right to terminate and the best
    2-1  efforts conditions, the contract is a commitment of the local
    2-2  government's current revenues only.
    2-3        (b)  In this section, "local government" means a
    2-4  municipality, county, school district, special purpose district or
    2-5  authority, or other political subdivision of this state.
    2-6        SECTION 3.  Section 271.005(b), Local Government Code, is
    2-7  repealed.
    2-8        SECTION 4.  The importance of this legislation and the
    2-9  crowded condition of the calendars in both houses create an
   2-10  emergency and an imperative public necessity that the
   2-11  constitutional rule requiring bills to be read on three several
   2-12  days in each house be suspended, and this rule is hereby suspended,
   2-13  and that this Act take effect and be in force from and after its
   2-14  passage, and it is so enacted.