73R9507 DWS-F
By Hamric H.B. No. 2092
Substitute the following for H.B. No. 2092:
By Eckels C.S.H.B. No. 2092
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to purchasing procedures of certain local governments;
1-3 providing criminal penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subtitle C, Title 8, Local Government Code, is
1-6 amended by adding Chapter 274 to read as follows:
1-7 CHAPTER 274. COMPETITIVE BIDDING IN PURCHASING
1-8 BY LOCAL GOVERNMENTS
1-9 SUBCHAPTER A. GENERAL PROVISIONS
1-10 Sec. 274.001. DEFINITIONS. In this chapter:
1-11 (1) "Bond funds" means money in the treasury received
1-12 from the sale of bonds and includes the proceeds of bonds that have
1-13 been voted but have not been issued and delivered.
1-14 (2) "Component purchases" means purchases of the
1-15 component parts of an item that in normal purchasing practices
1-16 would be purchased in one purchase.
1-17 (3) "Current funds" means money in the treasury, taxes
1-18 in the process of being collected in the current tax year, and all
1-19 other revenue, including grants and donations, that may be
1-20 anticipated with reasonable certainty in the current tax year.
1-21 (4) "High technology item" means equipment, goods, or
1-22 services of a highly technical nature, including:
1-23 (A) data processing equipment and software and
1-24 firmware used in conjunction with data processing equipment;
2-1 (B) telecommunications equipment and radio and
2-2 microwave systems;
2-3 (C) electronic distributed control systems,
2-4 including building energy management systems; and
2-5 (D) technical services related to those items.
2-6 (5) "Item" means a service, equipment, a good, or
2-7 other tangible or intangible personal property, including insurance
2-8 or a high technology item.
2-9 (6) "Purchase" means any kind of acquisition,
2-10 including a lease, of an item.
2-11 (7) "Local government" means a municipality, county,
2-12 special district, or other political subdivision of the state.
2-13 (8) "Separate purchases" means purchases, made
2-14 separately, of items that in normal purchasing practices would be
2-15 purchased in one purchase.
2-16 (9) "Sequential purchases" means purchases, made over
2-17 a period, of items that in normal purchasing practices would be
2-18 purchased in one purchase.
2-19 (10) "Time warrant" includes any warrant issued by a
2-20 local government that is not payable from current funds.
2-21 Sec. 274.002. APPLICATION. (a) This chapter applies only
2-22 to a local government contract for which competitive bidding or
2-23 competitive proposals are not required by another statute.
2-24 (b) The purchasing requirements of Section 361.426, Health
2-25 and Safety Code, apply to local government purchases made under
2-26 this chapter.
2-27 (c) 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 manner
3-4 of letting contracts and that is in conflict with this chapter
3-5 controls over this chapter.
3-6 (Sections 274.003-274.010 reserved for expansion
3-7 SUBCHAPTER B. COMPETITIVE BIDDING
3-8 Sec. 274.011. COMPETITIVE BIDDING AND COMPETITIVE PROPOSAL
3-9 REQUIREMENTS. (a) Before making a contract that requires an
3-10 expenditure of more than $15,000, a local government must comply
3-11 with the competitive sealed bidding or competitive sealed proposal
3-12 requirements of this chapter.
3-13 (b) A local government may use the competitive sealed
3-14 proposal procedure only for the purchase of:
3-15 (1) a high technology item; or
3-16 (2) another item if the officer who makes purchases
3-17 for the local government determines that it is impractical to
3-18 prepare detailed specifications and notifies the local government's
3-19 governing body of this determination.
3-20 (c) The competitive bidding and competitive proposal
3-21 requirements established by Subsection (a) apply only to contracts
3-22 for which payment will be made from current funds or bond funds or
3-23 through time warrants. However, contracts for which payments will
3-24 be made through certificates of obligation are governed by
3-25 Subchapter C, Chapter 271.
3-26 (d) In a county with a population of less than 20,000 that
3-27 does not have a county purchasing agent, contracts for $15,000 or
4-1 less may be entered into without the competitive bidding process
4-2 otherwise required by law if the commissioners court publicly finds
4-3 it to be in the public interest.
4-4 Sec. 274.012. GENERAL EXEMPTIONS. (a) A contract that
4-5 requires an expenditure for any of the following items is exempt
4-6 from the requirement established by Section 274.011 if the
4-7 governing body of the local government by order grants the
4-8 exemption:
4-9 (1) a purchase that, because of a public calamity,
4-10 must be made immediately to relieve the necessity of the local
4-11 government's residents or to preserve the local government's
4-12 property;
4-13 (2) a purchase necessary to preserve or protect the
4-14 public health or safety;
4-15 (3) a purchase necessary because of unforeseen damage
4-16 to public property;
4-17 (4) personal or professional services;
4-18 (5) work performed and paid for by the day as the work
4-19 progresses;
4-20 (6) the purchase of land or a right-of-way;
4-21 (7) an item available from only one source, including:
4-22 (A) an item available from only one source
4-23 because of a patent, copyright, secret process, or natural
4-24 monopoly;
4-25 (B) a film, manuscript, or book;
4-26 (C) electricity, gas, water, or other utility
4-27 service;
5-1 (D) a captive replacement part or component for
5-2 equipment;
5-3 (E) books, papers, or other library material for
5-4 a public library available only from a person holding exclusive
5-5 distribution rights to the material; and
5-6 (F) management services provided by a nonprofit
5-7 organization to a museum, park, zoo, or other local government
5-8 facility to which the organization has provided significant
5-9 financial or other benefits;
5-10 (8) rare books, rare papers, or other rare library
5-11 material for a public library;
5-12 (9) an item of food;
5-13 (10) paving drainage, street widening, other public
5-14 improvements, or matters related to the improvements, if at least
5-15 one-third of the cost is to be paid by or through special
5-16 assessments levied on property that will benefit from the
5-17 improvements;
5-18 (11) a public improvement project, authorized by the
5-19 voters of the local government, for which there is not enough money
5-20 to complete the project according to the plans and purposes the
5-21 voters authorized;
5-22 (12) a payment under a contract by which a developer
5-23 participates in construction of a public improvement as provided by
5-24 Subchapter C, Chapter 212;
5-25 (13) personal property sold:
5-26 (A) at an auction by a state licensed
5-27 auctioneer;
6-1 (B) at a going out of business sale complying
6-2 with Subchapter F, Chapter 17, Business & Commerce Code;
6-3 (C) by an agency or political subdivision of the
6-4 state or an entity of the federal government; or
6-5 (D) under an interlocal agreement for
6-6 cooperative purchasing administered by a regional planning
6-7 commission established under Chapter 391; or
6-8 (14) work performed under a contract for community and
6-9 economic development under Section 381.004.
6-10 (b) This chapter does not apply to:
6-11 (1) bonds or warrants issued under Title 118, Revised
6-12 Statutes, relating to seawalls; or
6-13 (2) a renewal or extension of a contract if the
6-14 governing body of the local government by order grants the
6-15 exemption and if:
6-16 (A) the following conditions exist:
6-17 (i) the contract has gone through the
6-18 competitive bidding procedure within the preceding year;
6-19 (ii) the renewal or extension does not
6-20 exceed one year; and
6-21 (iii) the renewal or extension is the
6-22 first renewal or extension of the contract; or
6-23 (B) an annual renewal or annual extension was
6-24 stated in the bid or proposal documents, requiring that the
6-25 provisions of the renewal or extension be submitted in detail,
6-26 except that a renewal or extension is not allowed under this
6-27 paragraph after the fifth anniversary of the date the contract is
7-1 awarded.
7-2 (c) If an item exempted under Subsection (a)(7) is to be
7-3 purchased, the governing body of the local government, after
7-4 accepting a signed statement from the official who makes purchases
7-5 for the local government about the existence of only one source,
7-6 must enter in its minutes a statement to that effect.
7-7 (Sections 274.013-274.030 reserved for expansion
7-8 SUBCHAPTER C. PROCEDURES
7-9 Sec. 274.031. NOTICE. (a) A notice of a proposed purchase
7-10 must be published at least once a week in a newspaper of general
7-11 circulation within the boundaries of the local government, with the
7-12 first day of publication occurring before the 14th day before the
7-13 date of the bid opening. If a newspaper of general circulation is
7-14 not published within the boundaries of the local government, the
7-15 notice must be posted for 14 days before the date of the bid
7-16 opening:
7-17 (1) at the city hall, if the local government is a
7-18 municipality;
7-19 (2) at the county courthouse if the local government
7-20 is a county; or
7-21 (3) in its administrative offices if the local
7-22 government is a special district or other political subdivision of
7-23 the state.
7-24 (b) If the competitive sealed proposals requirement applies
7-25 to the contract, notice of the request for proposals must be given
7-26 in the same manner as that prescribed by Subsection (a) for the
7-27 notice for competitive sealed bids.
8-1 (c) The notice required by Subsections (a) and (b) must
8-2 include:
8-3 (1) the specifications describing the item to be
8-4 purchased or a statement of the place where the specifications may
8-5 be obtained; and
8-6 (2) the time and place for receiving and opening bids
8-7 and the name and position of the official or employee to whom the
8-8 bids are to be sent.
8-9 (d) If the contract is for the purchase of machinery for the
8-10 construction or maintenance of roads or streets, the notice for
8-11 bids and the order for purchase must include a specification of the
8-12 machinery desired or a statement of the place where the
8-13 specifications may be obtained.
8-14 (e) If the governing body intends to issue time warrants for
8-15 the payment of any part of the contract, the notice must include a
8-16 statement of:
8-17 (1) the governing body's intention;
8-18 (2) the maximum amount of the proposed time warrant
8-19 indebtedness;
8-20 (3) the rate of interest the time warrants will bear;
8-21 and
8-22 (4) the maximum maturity date of the time warrants.
8-23 (f) In a county with a population of 2.2 million or more,
8-24 the county and any district or authority created under Article XVI,
8-25 Section 59, of the Texas Constitution of which the governing body
8-26 is the commissioners court may require that a minimum of 25 percent
8-27 of the work be performed by the bidder.
9-1 (g) Notwithstanding any other law to the contrary, a
9-2 governing body of a local government may establish financial
9-3 criteria for the surety companies that provide payment and
9-4 performance bonds.
9-5 Sec. 274.032. REQUESTS FOR PROPOSALS. (a) Requests for
9-6 competitive sealed proposals must solicit quotations and must
9-7 specify the relative importance of price and other evaluation
9-8 factors.
9-9 (b) Discussions in accordance with the terms of a request
9-10 for proposals and with regulations adopted by the governing body
9-11 may be conducted with offerors who submit proposals and who are
9-12 determined to be reasonably qualified for the award of the
9-13 contract. Offerors shall be treated fairly and equally with
9-14 respect to any opportunity for discussion and revision of
9-15 proposals. To obtain the best final offers, revisions may be
9-16 permitted after submissions and before the award of the contract.
9-17 Sec. 274.033. PROCEDURE FOR PURCHASE OF FOOD. (a) A local
9-18 government purchasing food items shall solicit at least three bids
9-19 by telephone or written quotations at intervals the governing body
9-20 specifies.
9-21 (b) The local government shall award the food purchase
9-22 contract to the responsible bidder who submits the lowest and best
9-23 bid or shall reject all bids and repeat the bidding process
9-24 provided by this section.
9-25 (c) The local government shall:
9-26 (1) maintain a record of all bids solicited and
9-27 vendors contacted; and
10-1 (2) keep the record for at least one year or until
10-2 audited by the local government's auditor.
10-3 Sec. 274.034. OPENING OF BIDS. (a) The official who makes
10-4 purchases for the local government shall open the bids on the date
10-5 specified in the notice. The date specified in the notice may be
10-6 extended by the governing body if an error is discovered in the
10-7 original specifications or the nature of the item to be purchased
10-8 requires an extension.
10-9 (b) Opened bids shall be kept on file and available for
10-10 inspection on request of any person.
10-11 Sec. 274.035. AWARD OF CONTRACT. (a) The officer in charge
10-12 of opening the bids shall present them to the governing body at a
10-13 meeting of the governing body. The governing body shall:
10-14 (1) award the contract to the responsible bidder who
10-15 submits the lowest and best bid; or
10-16 (2) reject all bids and publish a new notice.
10-17 (b) If the competitive sealed proposals requirement applies
10-18 to the contract, the award of the contract shall be made to the
10-19 responsible offeror whose proposal is determined to be the most
10-20 advantageous evaluated offer resulting from negotiation, taking
10-21 into consideration the relative importance of price and the other
10-22 evaluation factors included in the request for proposals.
10-23 (c) If two responsible bidders submit the lowest and best
10-24 bid, the governing body shall decide between the two by drawing
10-25 lots.
10-26 (d) A contract may not be awarded to a bidder who is not the
10-27 lowest dollar bidder meeting specifications unless, before the
11-1 award, each lower bidder is given notice of the proposed award and
11-2 is given an opportunity to appear before the governing body and
11-3 present evidence concerning the lower bidder's responsibility.
11-4 (e) The governing body may give preference to a bid, other
11-5 than a bid involving public works or the repair or improvement of
11-6 real property, submitted by a bidder whose principal place of
11-7 business is located within the local government if the bid does not
11-8 exceed the bid of any responsible nonresident bidder by more than
11-9 five percent.
11-10 Sec. 274.036. SAFETY RECORD OF BIDDER. In determining who
11-11 is a responsible bidder, the governing body may take into account
11-12 the safety record of the bidder, of the firm, corporation,
11-13 partnership, or institution represented by the bidder, or of anyone
11-14 acting for such a firm, corporation, partnership, or institution
11-15 if:
11-16 (1) the governing body has adopted a written
11-17 definition and criteria for accurately determining the safety
11-18 record of a bidder;
11-19 (2) the governing body has given notice to prospective
11-20 bidders in the bid specifications that the safety record of a
11-21 bidder may be considered in determining the responsibility of the
11-22 bidder; and
11-23 (3) the determinations are not arbitrary and
11-24 capricious.
11-25 Sec. 274.037. MODIFICATION AFTER AWARD. (a) After award of
11-26 contract but before the contract is made, the official who makes
11-27 purchases for the local government may negotiate a modification of
12-1 the contract if the modification is in the best interests of the
12-2 local government and does not substantially change the scope of the
12-3 contract or cause the contract amount to exceed the next lowest
12-4 bid.
12-5 (b) For the modified contract to be effective, the governing
12-6 body must approve the contract.
12-7 Sec. 274.038. CONTRACTOR'S BONDS. (a) Within 30 days after
12-8 the date of the signing of a contract or issuance of a purchase
12-9 order following the acceptance of a bid or proposal and before
12-10 commencement of the actual work, the bidder or proposal offeror
12-11 shall furnish a performance and payment bond to the local
12-12 government, if required by the local government, for the full
12-13 amount of the contract if that contract exceeds $50,000. This
12-14 subsection does not apply to a performance bond required to be
12-15 furnished by Article 5160, Revised Statutes. Each bond must be:
12-16 (1) in the full amount of the contract price;
12-17 (2) conditioned that the contractor will faithfully
12-18 perform the contract;
12-19 (3) executed, as provided by Article 5160, Revised
12-20 Statutes, by a surety company authorized to do business in the
12-21 state; and
12-22 (4) in a form acceptable to the local government and
12-23 meeting the financial criteria established by the local government
12-24 for surety companies providing performance and payment bonds.
12-25 (b) The governing body of a home-rule municipality by
12-26 ordinance may adopt the provisions of this section and
12-27 Article 5160, Revised Statutes, relating to contractors' surety
13-1 bonds, regardless of a conflicting provision in the municipality's
13-2 charter.
13-3 (c) If a purchase exceeds $50,000, the governing body may
13-4 require a bid bond. A cashier's check may be substituted for the
13-5 bond.
13-6 Sec. 274.039. REFERENDUM ON ISSUANCE OF TIME WARRANTS. (a)
13-7 If, by the time set for letting a contract under this chapter, a
13-8 written petition with the required signatures is filed with the
13-9 local government's secretary or clerk requesting the governing body
13-10 to order a referendum on the question of whether time warrants
13-11 should be issued for an expenditure under the contract, the
13-12 governing body may not authorize the expenditure or finally award
13-13 the contract unless the question is approved by a majority of the
13-14 votes received in the referendum. The petition must be signed by
13-15 at least 10 percent of the qualified voters of the local government
13-16 whose names appear as property taxpayers on the local government's
13-17 most recently approved tax rolls.
13-18 (b) If a petition is not filed, the governing body may
13-19 finally award the contract and issue the time warrants. In the
13-20 absence of a petition, the governing body may order the referendum.
13-21 (c) The provisions of Chapters 1 and 2, Title 22, Revised
13-22 Statutes, relating to elections for the issuance of bonds and to
13-23 the issuance, approval, registration, and sale of bonds govern the
13-24 referendum and the time warrants to the extent those provisions are
13-25 consistent with this chapter and the Bond and Warrant Law of 1931
13-26 (Article 2368a, Vernon's Texas Civil Statutes). However, the time
13-27 warrants mature and are payable as provided by the Bond and Warrant
14-1 Law of 1931 (Article 2368a, Vernon's Texas Civil Statutes) for
14-2 funding bonds.
14-3 (d) This section does not supersede any additional rights
14-4 provided by the charter of a special-law municipality and relating
14-5 to a referendum.
14-6 (e) This section does not apply to expenditures that are
14-7 payable:
14-8 (1) from current funds;
14-9 (2) from bond funds; or
14-10 (3) by time warrants unless the amount of the time
14-11 warrants issued by the local government for all purposes during the
14-12 current calendar year exceeds:
14-13 (A) $7,500 if the local government's population
14-14 is 5,000 or less;
14-15 (B) $10,000 if the local government's population
14-16 is 5,001 to 24,999;
14-17 (C) $25,000 if the local government's population
14-18 is 25,001 to 49,999; or
14-19 (D) $100,000 if the local government's
14-20 population is more than 50,000.
14-21 Sec. 274.040. SET ASIDE OF CURRENT FUNDS. If an expenditure
14-22 under the contract is payable by warrants on current funds, the
14-23 governing body by order shall set aside an amount of current funds
14-24 that will discharge the principal and interest of the warrants.
14-25 Those funds may not be used for any other purpose, and the warrants
14-26 must be discharged from those funds and may not be refunded.
14-27 Sec. 274.041. APPRAISAL IN CERTAIN CONTRACTS. (a) This
15-1 section applies only to a lease-purchase or installment purchase of
15-2 real property financed by the issuance of certificates of
15-3 participation.
15-4 (b) The governing body may not make an agreement under which
15-5 the local government is a lessee in a lease-purchase or is a
15-6 purchaser in an installment purchase unless the governing body
15-7 first obtains an appraisal by a qualified appraiser who is not an
15-8 employee of the local government. The purchase price may not
15-9 exceed the fair market value of the real property, as shown by the
15-10 appraisal.
15-11 Sec. 274.042. PAYMENT METHOD FOR CERTAIN CONTRACTS. A
15-12 purchase may be proposed on a lump-sum or unit-price basis. If the
15-13 contract is let on a unit-price basis, the information furnished to
15-14 bidders must specify the approximate quantity needed, based on the
15-15 best available information, but payment to the contractor must be
15-16 based on the actual quantity constructed or supplied.
15-17 Sec. 274.043. CHANGE ORDERS. (a) If changes in plans or
15-18 specifications are necessary after the contract is made or if it is
15-19 necessary to decrease or increase the quantity of work to be
15-20 performed or of materials, equipment, or supplies to be furnished,
15-21 the governing body may approve change orders making the changes.
15-22 (b) The total contract price may not be increased because of
15-23 the changes unless additional money for increased costs is
15-24 appropriated for that purpose from available funds or is provided
15-25 for by the authorization of the issuance of time warrants.
15-26 (c) If a change order involves a decrease or an increase of
15-27 $15,000 or less, the governing body may grant general authority to
16-1 an administrative official to approve the change orders.
16-2 (d) The original contract price may not be increased or
16-3 decreased under this section by more than 25 percent, unless a
16-4 greater increase or decrease is necessary to comply with a state or
16-5 federal law adopted or judicial decision rendered after the date
16-6 the contract was executed. The original contract price may not be
16-7 decreased under this section by more than 25 percent without the
16-8 consent of the contractor.
16-9 Sec. 274.044. SELECTION OF INSURANCE BROKER. This chapter
16-10 does not prevent a local government from selecting a licensed
16-11 insurance broker as the sole broker of record to obtain proposals
16-12 and coverages for excess or surplus insurance that provides
16-13 necessary coverage and adequate limits of coverage in structuring
16-14 layered excess coverages in all areas of risk requiring special
16-15 consideration, including public official liability, police
16-16 professional liability, and airport liability. The broker may be
16-17 retained only on a fee basis and may not receive any other
16-18 remuneration from any other source.
16-19 Sec. 274.045. CONFIDENTIALITY OF INFORMATION IN BIDS OR
16-20 PROPOSALS. If provided in a request for proposals, proposals shall
16-21 be opened in a manner that avoids disclosure of the contents to
16-22 competing offerors and keeps the proposals secret during
16-23 negotiations. All proposals are open for public inspection after
16-24 the contract is awarded, but trade secrets and confidential
16-25 information designated in the proposals as trade secrets or
16-26 confidential information are not open for public inspection.
16-27 (Sections 274.046-274.070 reserved for expansion
17-1 SUBCHAPTER D. ENFORCEMENT
17-2 Sec. 274.071. INJUNCTION. If the contract is made without
17-3 compliance with this chapter, it is void and the performance of the
17-4 contract, including the payment of any money under the contract,
17-5 may be enjoined by any property tax paying resident of the local
17-6 government.
17-7 Sec. 274.072. CRIMINAL PENALTIES. (a) A local government
17-8 officer or employee commits an offense if the officer or employee
17-9 intentionally or knowingly makes or authorizes separate,
17-10 sequential, or component purchases to avoid the competitive bidding
17-11 requirements of Section 274.011. An offense under this subsection
17-12 is a Class B misdemeanor.
17-13 (b) A local government officer or employee commits an
17-14 offense if the officer or employee intentionally or knowingly
17-15 violates Section 274.011, other than by conduct described by
17-16 Subsection (a). An offense under this subsection is a Class B
17-17 misdemeanor.
17-18 (c) A local government officer or employee commits an
17-19 offense if the officer or employee intentionally or knowingly
17-20 violates this chapter, other than by conduct described by
17-21 Subsection (a) or (b). An offense under this subsection is a Class
17-22 C misdemeanor.
17-23 Sec. 274.073. REMOVAL; INELIGIBILITY. (a) The final
17-24 conviction of a local government officer or employee for an offense
17-25 under Section 274.072(a) or (b) results in the immediate removal
17-26 from office or employment of that person.
17-27 (b) For four years after the date of the final conviction,
18-1 the removed officer or employee is ineligible:
18-2 (1) to be a candidate for or to be appointed or
18-3 elected to a public office in this state;
18-4 (2) to be employed by the local government with which
18-5 the person served when the offense occurred; and
18-6 (3) to receive any compensation through a contract
18-7 with that local government.
18-8 (c) This section does not prohibit the payment of retirement
18-9 or workers' compensation benefits to the removed officer or
18-10 employee.
18-11 SECTION 2. Subchapter A, Chapter 262, Local Government Code,
18-12 is amended by adding Sections 262.006 and 262.007 to read as
18-13 follows:
18-14 Sec. 262.006. COMPETITIVE BIDDING PROCEDURES ADOPTED BY
18-15 COUNTY PURCHASING AGENTS. A county purchasing agent shall adopt
18-16 procedures that provide for competitive bidding, to the extent
18-17 practicable under the circumstances, for the county purchase of an
18-18 item under a contract that is not subject to competitive bidding
18-19 under Section 274.011.
18-20 Sec. 262.007. ALTERNATIVE MULTISTEP COMPETITIVE PROPOSAL
18-21 PROCEDURE. (a) A county may use the multistep competitive
18-22 proposal procedure provided by this section if:
18-23 (1) the county official who makes purchases for the
18-24 county determines that it is impractical to prepare detailed
18-25 specifications for an item to support the award of a purchase
18-26 contract, and the official notifies the commissioners court of this
18-27 determination; and
19-1 (2) the commissioners court, following notification
19-2 under Subdivision (1), determines that it is impractical to prepare
19-3 detailed specifications for an item to support the award of the
19-4 purchase contract.
19-5 (b) The county shall solicit proposals by giving notice in
19-6 the manner provided for competitive bids by Section 274.031. The
19-7 solicitation may request unpriced proposals.
19-8 (c) The county official shall open the proposals on the date
19-9 specified in the notice. Not later than the 15th day after that
19-10 date, the county official shall solicit by mail priced bids from
19-11 the persons who submitted proposals and who qualified under the
19-12 criteria stated in the first solicitation.
19-13 (d) Negotiations may be conducted with responsible offerors
19-14 who submit reasonable priced bids, as provided by the request for
19-15 proposals and rules of the commissioners court. Each offeror shall
19-16 be given fair and equal opportunity for negotiation and revision of
19-17 a proposal.
19-18 (e) Not later than the 60th day after the date proposals are
19-19 opened under Subsection (c), the county official shall present the
19-20 priced bids to the commissioners court. The commissioners court
19-21 shall award the contract to the responsible offeror whose bid the
19-22 commissioners court determines is the most advantageous evaluated
19-23 offer resulting from negotiation. Each proposal and bid submitted
19-24 is available and open for public inspection after the contract is
19-25 awarded, except trade secrets and confidential information
19-26 designated in the proposal as trade secrets or confidential
19-27 information.
20-1 SECTION 3. Section 271.024, Local Government Code, is
20-2 amended to read as follows:
20-3 Sec. 271.024. Competitive Bidding Procedure Applicable to
20-4 Contract. If a governmental entity is required by statute to award
20-5 a contract for the construction, repair, or renovation of a
20-6 structure, road, highway, or other improvement or addition to real
20-7 property on the basis of competitive bids, and if the contract
20-8 requires the expenditure of more than $15,000 <$10,000> from the
20-9 funds of the entity, the bidding on the contract must be
20-10 accomplished in the manner provided by this subchapter.
20-11 SECTION 4. Chapter 271, Local Government Code, is amended by
20-12 adding Subchapter E to read as follows:
20-13 SUBCHAPTER E. COOPERATIVE PURCHASING PROGRAM
20-14 Sec. 271.091. DEFINITIONS. In this subchapter:
20-15 (1) "Local cooperative organization" means an
20-16 organization established to provide local governments access to
20-17 contracts with vendors for the purchase of materials, supplies,
20-18 services, or equipment.
20-19 (2) "Local government" means a county, municipality,
20-20 special district, school district, junior college district, or
20-21 other legally constituted political subdivision of the state.
20-22 Sec. 271.092. COOPERATIVE PURCHASING PROGRAM PARTICIPATION.
20-23 (a) A local government may participate in a cooperative purchasing
20-24 program with another local government or a local cooperative
20-25 organization.
20-26 (b) A participating local government may sign an agreement
20-27 with the other local government or cooperative organization, as
21-1 applicable, stating that the signing local government will:
21-2 (1) designate a person to act under the direction of,
21-3 and on behalf of, that governmental body in all matters relating to
21-4 the program;
21-5 (2) make payments directly to a vendor under a
21-6 contract made under this subchapter; and
21-7 (3) be responsible for a vendor's compliance with
21-8 provisions relating to the quality of items and terms of delivery.
21-9 (c) A local government that purchases under this program
21-10 complies with the competitive bidding requirements of this title or
21-11 other state law if the applicable competitive bidding requirements
21-12 are followed by the entity awarding the contract.
21-13 SECTION 5. Subchapter Z, Chapter 271, Local Government Code,
21-14 is amended by adding Section 271.903 to read as follows:
21-15 Sec. 271.903. COMMITMENT OF CURRENT REVENUE. (a) If a
21-16 contract for the acquisition, including lease, of real or personal
21-17 property retains to the governing body of a local government the
21-18 continuing right to terminate at the expiration of each budget
21-19 period of the local government during the term of the contract, is
21-20 conditioned on a best efforts attempt by the governing body to
21-21 obtain and appropriate funds for payment of the contract, or
21-22 contains both the continuing right to terminate and the best
21-23 efforts conditions, the contract is a commitment of the local
21-24 government's current revenues only.
21-25 (b) In this section, "local government" means a
21-26 municipality, county, school district, special purpose district or
21-27 authority, or other political subdivision of this state.
22-1 SECTION 6. The following provisions of the Local Government
22-2 Code are repealed:
22-3 (1) Chapter 252;
22-4 (2) Section 262.005;
22-5 (3) Subchapter C, Chapter 262; and
22-6 (4) Section 271.005(b).
22-7 SECTION 7. This Act applies only to a purchase for which the
22-8 first solicitation of bids or proposals is made on or after
22-9 September 1, 1993.
22-10 SECTION 8. This Act takes effect September 1, 1993.
22-11 SECTION 9. The importance of this legislation and the
22-12 crowded condition of the calendars in both houses create an
22-13 emergency and an imperative public necessity that the
22-14 constitutional rule requiring bills to be read on three several
22-15 days in each house be suspended, and this rule is hereby suspended.