By:  McCall                                           H.B. No. 1185
       73R3128 MLR-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to purchasing by local governments; creating an offense.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 262.023(a), Local Government Code, is
    1-5  amended to read as follows:
    1-6        (a)  Before <Except as provided by Subsection (d), before> a
    1-7  county may purchase one or more items under a contract that will
    1-8  require an expenditure exceeding $25,000 <$10,000>, the
    1-9  commissioners court of the county must comply with the competitive
   1-10  bidding or competitive proposal procedures prescribed by this
   1-11  subchapter.  All bids or proposals must be sealed.
   1-12        SECTION 2.  Section 262.027, Local Government Code, is
   1-13  amended by adding Subsection (e) to read as follows:
   1-14        (e)  The commissioners court may give preference to a bid
   1-15  submitted by a bidder whose principal place of business is located
   1-16  within the county if the bid does not exceed the bid of any
   1-17  responsible nonresident bidder by more than five percent.
   1-18        SECTION 3.  Chapter 262, Local Government Code, is amended by
   1-19  adding Section 262.0271 to read as follows:
   1-20        Sec. 262.0271.  INFLUENCE PROHIBITION.  (a)  A person who
   1-21  submits a bid, proposal, or resume of professional qualifications
   1-22  to a county in relation to the award of a contract for a
   1-23  construction project or for any other purchase of an item with
   1-24  county funds, may not lobby or influence in any other manner and
    2-1  may not attempt to lobby or influence in any other manner an
    2-2  officer or employee of the county in that officer's or employee's
    2-3  decision to award the contract.
    2-4        (b)  To be eligible to receive the award of the contract, the
    2-5  person submitting the bid, proposal, or resume of professional
    2-6  qualifications must certify that the person has not influenced or
    2-7  attempted to influence the award of the contract and that no
    2-8  attempt will be made by the person or on the person's behalf.  The
    2-9  certification must be submitted with the bid, proposal, or resume
   2-10  of professional qualifications.
   2-11        (c)  A purchase or contract made by a county officer or
   2-12  employee is voidable if that officer or employee was influenced in
   2-13  violation of this section.
   2-14        SECTION 4.  Section 262.030, Local Government Code, is
   2-15  amended to read as follows:
   2-16        Sec. 262.030.  ALTERNATIVE COMPETITIVE PROPOSAL PROCEDURE FOR
   2-17  INSURANCE, <OR> HIGH TECHNOLOGY ITEMS, AND SPECIAL SERVICES.  (a)
   2-18  The competitive proposal procedure provided by this section may be
   2-19  used for the purchase of insurance, <or> high technology items, and
   2-20  any of the following special services:
   2-21              (1)  janitorial services;
   2-22              (2)  landscape maintenance;
   2-23              (3)  travel management;
   2-24              (4)  recycling; and
   2-25              (5)  vending, concession, or commissary services.
   2-26        (b)  Quotations must be solicited through a request for
   2-27  proposals.  Public notice for the request for proposals must be
    3-1  made in the same manner as provided in the competitive bidding
    3-2  procedure.  The request for proposals must specify the relative
    3-3  importance of price and other evaluation factors.  The award of the
    3-4  contract shall be made to the responsible offeror whose proposal is
    3-5  determined to be the lowest evaluated offer resulting from
    3-6  negotiation, taking into consideration the relative importance of
    3-7  price and other evaluation factors set forth in the request for
    3-8  proposals.
    3-9        (c) <(b)>  If provided in the request for proposals,
   3-10  proposals shall be opened so as to avoid disclosure of contents to
   3-11  competing offerors and kept secret during the process of
   3-12  negotiation.  All proposals that have been submitted shall be
   3-13  available and open for public inspection after the contract is
   3-14  awarded, except for trade secrets and confidential information
   3-15  contained in the proposals and identified as such.
   3-16        (d) <(c)>  As provided in the request for proposals and under
   3-17  rules adopted by the commissioners court, discussions may be
   3-18  conducted with responsible offerors who submit proposals determined
   3-19  to be reasonably susceptible of being selected for award.  Offerors
   3-20  must be accorded fair and equal treatment with respect to any
   3-21  opportunity for discussion and revision of proposals, and revisions
   3-22  may be permitted after submission and before award for the purpose
   3-23  of obtaining best and final offers.
   3-24        SECTION 5.  Section 262.031(b), Local Government Code, is
   3-25  amended to read as follows:
   3-26        (b)  If a change order involves an increase or decrease in
   3-27  cost of $50,000 <$15,000> or less, the commissioners court may
    4-1  grant general authority to an employee to approve the change
    4-2  orders.  However, the original contract price may not be increased
    4-3  by more than 25 percent.  The original contract price may not be
    4-4  decreased by 18 percent or more without the consent of the
    4-5  contractor.
    4-6        SECTION 6.  Section 262.032(b), Local Government Code, is
    4-7  amended to read as follows:
    4-8        (b)  Within 20 <10> days after the date of the signing of a
    4-9  contract or issuance of a purchase order following the acceptance
   4-10  of a bid or proposal, the bidder or proposal offeror shall furnish
   4-11  a performance bond to the county for the full amount of the
   4-12  contract  on a public works project or other purchase, as required
   4-13  by the county, that has an estimated contract value of more than
   4-14  $100,000 <if that contract exceeds $50,000>.
   4-15        SECTION 7.  Section 262.034, Local Government Code, is
   4-16  amended by adding Subsection (d) to read as follows:
   4-17        (d)  A person who knowingly or intentionally violates Section
   4-18  262.0271(a) commits an offense.  An offense under this subsection
   4-19  is a Class B misdemeanor.
   4-20        SECTION 8.  Section 271.024, Local Government Code, is
   4-21  amended to read as follows:
   4-22        Sec. 271.024.  Competitive Bidding Procedure Applicable to
   4-23  Contract.  If a governmental entity is required by statute to award
   4-24  a contract for the construction, repair, or renovation of a
   4-25  structure, road, highway, or other improvement or addition to real
   4-26  property on the basis of competitive bids, and if the contract
   4-27  requires the expenditure of more than $25,000 <$10,000> from the
    5-1  funds of the entity, the bidding on the contract must be
    5-2  accomplished in the manner provided by this subchapter.
    5-3        SECTION 9.  Chapter 271, Local Government Code, is amended by
    5-4  adding Subchapter E to read as follows:
    5-5             SUBCHAPTER E.  COOPERATIVE PURCHASING PROGRAM
    5-6        Sec. 271.091.  DEFINITIONS.  In this subchapter:
    5-7              (1)  "Local cooperative organization" means an
    5-8  organization established to provide local governments access to
    5-9  contracts with vendors for the purchase of materials, supplies,
   5-10  services, or equipment.
   5-11              (2)  "Local government" means a county, municipality,
   5-12  special district, school district, junior college district, or
   5-13  other legally constituted political subdivision of the state.
   5-14        Sec. 271.092.  COOPERATIVE PURCHASING PROGRAM PARTICIPATION.
   5-15  (a)  A local government may participate in a cooperative purchasing
   5-16  program with another local government or a local cooperative
   5-17  organization.
   5-18        (b)  A participating local government must sign an agreement
   5-19  with the other local government or cooperative organization, as
   5-20  applicable, stating that the signing local government will:
   5-21              (1)  designate a person to act under the direction of,
   5-22  and on behalf of, that governmental body in all matters relating to
   5-23  the program;
   5-24              (2)  purchase under the contracts made under this
   5-25  subchapter, except in emergencies;
   5-26              (3)  make payments directly to a vendor under a
   5-27  contract made under this subchapter; and
    6-1              (4)  be responsible for a vendor's compliance with
    6-2  provisions relating to the quality of items and terms of delivery.
    6-3        (c)  A local government that purchases under this program
    6-4  complies with the competitive bidding requirements of this title or
    6-5  other state law if the applicable competitive bidding requirements
    6-6  are followed by the entity awarding the contract.
    6-7        SECTION 10.  Section 262.023(d), Local Government Code, is
    6-8  repealed.
    6-9        SECTION 11.  This Act takes effect September 1, 1993.
   6-10        SECTION 12.  The importance of this legislation and the
   6-11  crowded condition of the calendars in both houses create an
   6-12  emergency   and   an   imperative   public   necessity   that   the
   6-13  constitutional rule requiring bills to be read on three several
   6-14  days in each house be suspended, and this rule is hereby suspended.