By:  Hamric                                           H.B. No. 2092
       73R3705 DWS-F
                                 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 $10,000, 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; or
    6-3                    (C)  by an agency or political subdivision of the
    6-4  state or an entity of the federal government; or
    6-5              (14)  work performed under a contract for community and
    6-6  economic development under Section 381.004.
    6-7        (b)  This chapter does not apply to:
    6-8              (1)  bonds or warrants issued under Title 118, Revised
    6-9  Statutes, relating to seawalls; or
   6-10              (2)  a renewal or extension of a contract if the
   6-11  governing body of the local government by order grants the
   6-12  exemption and if:
   6-13                    (A)  the following conditions exist:
   6-14                          (i)  the contract has gone through the
   6-15  competitive bidding procedure within the preceding year;
   6-16                          (ii)  the renewal or extension does not
   6-17  exceed one year; and
   6-18                          (iii)  the renewal or extension is the
   6-19  first renewal or extension of the contract; or
   6-20                    (B)  an annual renewal or annual extension was
   6-21  stated in the bid or proposal documents, requiring that the
   6-22  provisions of the renewal or extension be submitted in detail,
   6-23  except that a renewal or extension is not allowed under this
   6-24  paragraph after the fifth anniversary of the date the contract is
   6-25  awarded.
   6-26        (c)  If an item exempted under Subsection (a)(7) is to be
   6-27  purchased, the governing body of the local government, after
    7-1  accepting a signed statement from the official who makes purchases
    7-2  for the local government about the existence of only one source,
    7-3  must enter in its minutes a statement to that effect.
    7-4           (Sections 274.013-274.030 reserved for expansion
    7-5                       SUBCHAPTER C.  PROCEDURES
    7-6        Sec. 274.031.  NOTICE.  (a)  A notice of a proposed purchase
    7-7  must be published at least once a week in a newspaper of general
    7-8  circulation within the boundaries of the local government, with the
    7-9  first day of publication occurring before the 14th day before the
   7-10  date of the bid opening.  If a newspaper of general circulation is
   7-11  not published within the boundaries of the local government, the
   7-12  notice must be posted for 14 days before the date of the bid
   7-13  opening:
   7-14              (1)  at the city hall, if the local government is a
   7-15  municipality;
   7-16              (2)  at the county courthouse if the local government
   7-17  is a county; or
   7-18              (3)  in its administrative offices if the local
   7-19  government is a special district or other political subdivision of
   7-20  the state.
   7-21        (b)  If the competitive sealed proposals requirement applies
   7-22  to the contract, notice of the request for proposals must be given
   7-23  in the same manner as that prescribed by Subsection (a) for the
   7-24  notice for competitive sealed bids.
   7-25        (c)  The notice required by Subsections (a) and (b) must
   7-26  include:
   7-27              (1)  the specifications describing the item to be
    8-1  purchased or a statement of the place where the specifications may
    8-2  be obtained; and
    8-3              (2)  the time and place for receiving and opening bids
    8-4  and the name and position of the official or employee to whom the
    8-5  bids are to be sent.
    8-6        (d)  If the contract is for the purchase of machinery for the
    8-7  construction or maintenance of roads or streets, the notice for
    8-8  bids and the order for purchase must include a specification of the
    8-9  machinery desired.
   8-10        (e)  If the governing body intends to issue time warrants for
   8-11  the payment of any part of the contract, the notice must include a
   8-12  statement of:
   8-13              (1)  the governing body's intention;
   8-14              (2)  the maximum amount of the proposed time warrant
   8-15  indebtedness;
   8-16              (3)  the rate of interest the time warrants will bear;
   8-17  and
   8-18              (4)  the maximum maturity date of the time warrants.
   8-19        (f)  In a county with a population of 2.2 million or more,
   8-20  the county and any district or authority created under Article XVI,
   8-21  Section 59, of the Texas Constitution of which the governing body
   8-22  is the commissioners court may require that a minimum of 25 percent
   8-23  of the work be performed by the bidder and, notwithstanding any
   8-24  other law to the contrary, may establish financial criteria for the
   8-25  surety companies that provide payment and performance bonds.
   8-26        Sec. 274.032.  REQUESTS FOR PROPOSALS.  (a)  Requests for
   8-27  competitive sealed proposals  must solicit quotations and must
    9-1  specify the relative importance of price and other evaluation
    9-2  factors.
    9-3        (b)  Discussions in accordance with the terms of a request
    9-4  for proposals and with regulations adopted by the governing body
    9-5  may be conducted with offerors who submit proposals and who are
    9-6  determined to be reasonably qualified for the award of the
    9-7  contract.  Offerors shall be treated fairly and equally with
    9-8  respect to any opportunity for discussion and revision of
    9-9  proposals.  To obtain the best final offers, revisions may be
   9-10  permitted after submissions and before the award of the contract.
   9-11        Sec. 274.033.  PROCEDURE FOR PURCHASE OF FOOD.  (a)  A local
   9-12  government purchasing food items shall solicit at least three bids
   9-13  by telephone or written quotations at intervals the governing body
   9-14  specifies.
   9-15        (b)  The local government shall award the food purchase
   9-16  contract to the responsible bidder who submits the lowest and best
   9-17  bid or shall reject all bids and repeat the bidding process
   9-18  provided by this section.
   9-19        (c)  The local government shall:
   9-20              (1)  maintain a record of all bids solicited and
   9-21  vendors contacted; and
   9-22              (2)  keep the record for at least one year or until
   9-23  audited by the local government's auditor.
   9-24        Sec. 274.034.  OPENING OF BIDS.  (a)  The official who makes
   9-25  purchases for the local government shall open the bids on the date
   9-26  specified in the notice.  The date specified in the notice may be
   9-27  extended by the governing body if an error is discovered in the
   10-1  original specifications or the nature of the item to be purchased
   10-2  requires an extension.
   10-3        (b)  Opened bids shall be kept on file and available for
   10-4  inspection on request of any person.
   10-5        Sec. 274.035.  AWARD OF CONTRACT.  (a)  The officer in charge
   10-6  of opening the bids shall present them to the governing body at a
   10-7  meeting of the governing body.  The governing body shall:
   10-8              (1)  award the contract to the responsible bidder who
   10-9  submits the lowest and best bid; or
  10-10              (2)  reject all bids and publish a new notice.
  10-11        (b)  If the competitive sealed proposals requirement applies
  10-12  to the contract, the award of the contract shall be made to the
  10-13  responsible offeror whose proposal is determined to be the most
  10-14  advantageous evaluated offer resulting from negotiation, taking
  10-15  into consideration the relative importance of price and the other
  10-16  evaluation factors included in the request for proposals.
  10-17        (c)  If two responsible bidders submit the lowest and best
  10-18  bid, the governing body shall decide between the two by drawing
  10-19  lots.
  10-20        (d)  A contract may not be awarded to a bidder who is not the
  10-21  lowest dollar bidder meeting specifications unless, before the
  10-22  award, each lower bidder is given notice of the proposed award and
  10-23  is given an opportunity to appear before the governing body and
  10-24  present evidence concerning the lower bidder's responsibility.
  10-25        Sec. 274.036.  SAFETY RECORD OF BIDDER.  In determining who
  10-26  is a responsible bidder, the governing body may take into account
  10-27  the safety record of the bidder, of the firm, corporation,
   11-1  partnership, or institution represented by the bidder, or of anyone
   11-2  acting for such a firm, corporation, partnership, or institution
   11-3  if:
   11-4              (1)  the governing body has adopted a written
   11-5  definition and criteria for accurately determining the safety
   11-6  record of a bidder;
   11-7              (2)  the governing body has given notice to prospective
   11-8  bidders in the bid specifications that the safety record of a
   11-9  bidder may be considered in determining the responsibility of the
  11-10  bidder; and
  11-11              (3)  the determinations are not arbitrary and
  11-12  capricious.
  11-13        Sec. 274.037.  MODIFICATION AFTER AWARD.  (a)  After award of
  11-14  contract but before the contract is made, the official who makes
  11-15  purchases for the local government may negotiate a modification of
  11-16  the contract if the modification is in the best interests of the
  11-17  local government and does not substantially change the scope of the
  11-18  contract or cause the contract amount to exceed the next lowest
  11-19  bid.
  11-20        (b)  For the modified contract to be effective, the governing
  11-21  body must approve the contract.
  11-22        Sec. 274.038.  CONTRACTOR'S BONDS.  (a)  If the contract is
  11-23  for the construction of public works, the bidder to whom the
  11-24  contract is awarded must execute a good and sufficient performance
  11-25  bond and payment bond.  Each bond must be:
  11-26              (1)  in the full amount of the contract price;
  11-27              (2)  conditioned that the contractor will faithfully
   12-1  perform the contract; 
   12-2              (3)  executed, as provided by Article 5160, Revised
   12-3  Statutes, by a surety company authorized to do business in the
   12-4  state; and
   12-5              (4)  in a form acceptable to the local government and
   12-6  meeting the financial criteria established by the local government
   12-7  for surety companies providing performance and payment bonds.
   12-8        (b)  If the contract requires an expenditure of less than
   12-9  $100,000, the bond is not required if the contract provides that
  12-10  payment is not due to the contractor until the work is completed
  12-11  and is accepted by the local government.
  12-12        (c)  The governing body of a home-rule municipality by
  12-13  ordinance may adopt the provisions of this section and
  12-14  Article 5160, Revised Statutes, relating to contractors' surety
  12-15  bonds, regardless of a conflicting provision in the municipality's
  12-16  charter.
  12-17        (d)  If a purchase exceeds $50,000 and is not for public
  12-18  works, the governing body may require a bid bond, a performance
  12-19  bond, or both.  A cashier's check may be substituted for either
  12-20  bond.
  12-21        Sec. 274.039.  REFERENDUM ON ISSUANCE OF TIME WARRANTS.  (a)
  12-22  If, by the time set for letting a contract under this chapter, a
  12-23  written petition with the required signatures is filed with the
  12-24  local government's secretary or clerk requesting the governing body
  12-25  to order a referendum on the question of whether time warrants
  12-26  should be issued for an expenditure under the contract, the
  12-27  governing body may not authorize the expenditure or finally award
   13-1  the contract unless the question is approved by a majority of the
   13-2  votes received in the referendum.  The petition must be signed by
   13-3  at least 10 percent of the qualified voters of the local government
   13-4  whose names appear as property taxpayers on the local government's
   13-5  most recently approved tax rolls.
   13-6        (b)  If a petition is not filed, the governing body may
   13-7  finally award the contract and issue the time warrants.  In the
   13-8  absence of a petition, the governing body may order the referendum.
   13-9        (c)  The provisions of Chapters 1 and 2, Title 22, Revised
  13-10  Statutes, relating to elections for the issuance of bonds and to
  13-11  the issuance, approval, registration, and sale of bonds govern the
  13-12  referendum and the time warrants to the extent those provisions are
  13-13  consistent with this chapter and the Bond and Warrant Law of 1931
  13-14  (Article 2368a, Vernon's Texas Civil Statutes).  However, the time
  13-15  warrants mature and are payable as provided by the Bond and Warrant
  13-16  Law of 1931 (Article 2368a, Vernon's Texas Civil Statutes) for
  13-17  funding bonds.
  13-18        (d)  This section does not supersede any additional rights
  13-19  provided by the charter of a special-law municipality and relating
  13-20  to a referendum.
  13-21        (e)  This section does not apply to expenditures that are
  13-22  payable:
  13-23              (1)  from current funds;
  13-24              (2)  from bond funds; or
  13-25              (3)  by time warrants unless the amount of the time
  13-26  warrants issued by the local government for all purposes during the
  13-27  current calendar year exceeds:
   14-1                    (A)  $7,500 if the local government's population
   14-2  is 5,000 or less;
   14-3                    (B)  $10,000 if the local government's population
   14-4  is 5,001 to 24,999;
   14-5                    (C)  $25,000 if the local government's population
   14-6  is 25,001 to 49,999; or
   14-7                    (D)  $100,000 if the local government's
   14-8  population is more than 50,000.
   14-9        Sec. 274.040.  SET ASIDE OF CURRENT FUNDS.  If an expenditure
  14-10  under the contract is payable by warrants on current funds, the
  14-11  governing body by order shall set aside an amount of current funds
  14-12  that will discharge the principal and interest of the warrants.
  14-13  Those funds may not be used for any other purpose, and the warrants
  14-14  must be discharged from those funds and may not be refunded.
  14-15        Sec. 274.041.  APPRAISAL IN CERTAIN CONTRACTS.  (a)  This
  14-16  section applies only to a lease-purchase or installment purchase of
  14-17  real property financed by the issuance of certificates of
  14-18  participation.
  14-19        (b)  The governing body may not make an agreement under which
  14-20  the local government is a lessee in a lease-purchase or is a
  14-21  purchaser in an installment purchase unless the governing body
  14-22  first obtains an appraisal by a qualified appraiser who is not an
  14-23  employee of the local government.  The purchase price may not
  14-24  exceed the fair market value of the real property, as shown by the
  14-25  appraisal.
  14-26        Sec. 274.042.  PAYMENT METHOD FOR CERTAIN CONTRACTS.  A
  14-27  purchase may be proposed on a lump-sum or unit-price basis.  If the
   15-1  contract is let on a unit-price basis, the information furnished to
   15-2  bidders must specify the approximate quantity needed, based on the
   15-3  best available information, but payment to the contractor must be
   15-4  based on the actual quantity constructed or supplied.
   15-5        Sec. 274.043.  CHANGE ORDERS.  (a)  If changes in plans or
   15-6  specifications are necessary after the contract is made or if it is
   15-7  necessary to decrease or increase the quantity of work to be
   15-8  performed or of materials, equipment, or supplies to be furnished,
   15-9  the governing body may approve change orders making the changes.
  15-10        (b)  The total contract price may not be increased because of
  15-11  the changes unless additional money for increased costs is
  15-12  appropriated for that purpose from available funds or is provided
  15-13  for by the authorization of the issuance of time warrants.
  15-14        (c)  If a change order involves a decrease or an increase of
  15-15  $15,000 or less, the governing body may grant general authority to
  15-16  an administrative official to approve the change orders.
  15-17        (d)  The original contract price may not be increased under
  15-18  this section by more than 25 percent, unless a greater increase is
  15-19  necessary to comply with a local, state, or federal law adopted
  15-20  after the date the contract was executed.   The original contract
  15-21  price may not be decreased under this section by more than 25
  15-22  percent without the consent of the contractor.
  15-23        Sec. 274.044.  SELECTION OF INSURANCE BROKER.  This chapter
  15-24  does not prevent a local government from selecting a licensed
  15-25  insurance broker as the sole broker of record to obtain proposals
  15-26  and coverages for excess or surplus insurance that provides
  15-27  necessary coverage and adequate limits of coverage in structuring
   16-1  layered excess coverages in all areas of risk requiring special
   16-2  consideration, including public official liability, police
   16-3  professional liability, and airport liability.  The broker may be
   16-4  retained only on a fee basis and may not receive any other
   16-5  remuneration from any other source.
   16-6        Sec. 274.045.  CONFIDENTIALITY OF INFORMATION IN BIDS OR
   16-7  PROPOSALS.  If provided in a request for proposals, proposals shall
   16-8  be opened in a manner that avoids disclosure of the contents to
   16-9  competing offerors and keeps the proposals secret during
  16-10  negotiations.  All proposals are open for public inspection after
  16-11  the contract is awarded, but trade secrets and confidential
  16-12  information designated in the proposals as trade secrets or
  16-13  confidential information are not open for public inspection.
  16-14           (Sections 274.046-274.070 reserved for expansion
  16-15                      SUBCHAPTER D.  ENFORCEMENT
  16-16        Sec. 274.071.  INJUNCTION.  If the contract is made without
  16-17  compliance with this chapter, it is void and the performance of the
  16-18  contract, including the payment of any money under the contract,
  16-19  may be enjoined by any property tax paying resident of the local
  16-20  government.
  16-21        Sec. 274.072.  CRIMINAL PENALTIES.  (a)  A local government
  16-22  officer or employee commits an offense if the officer or employee
  16-23  intentionally or knowingly makes or authorizes separate,
  16-24  sequential, or component purchases to avoid the competitive bidding
  16-25  requirements of Section 274.011.  An offense under this subsection
  16-26  is a Class B misdemeanor.
  16-27        (b)  A local government officer or employee commits an
   17-1  offense if the officer or employee intentionally or knowingly
   17-2  violates Section 274.011, other than by conduct described by
   17-3  Subsection (a).  An offense under this subsection is a Class B
   17-4  misdemeanor.
   17-5        (c)  A local government officer or employee commits an
   17-6  offense if the officer or employee intentionally or knowingly
   17-7  violates this chapter, other than by conduct described by
   17-8  Subsection (a) or (b).  An offense under this subsection is a Class
   17-9  C misdemeanor.
  17-10        Sec. 274.073.  REMOVAL; INELIGIBILITY.  (a)  The final
  17-11  conviction of a local government officer or employee for an offense
  17-12  under Section 274.072(a) or (b) results in the immediate removal
  17-13  from office or employment of that person.
  17-14        (b)  For four years after the date of the final conviction,
  17-15  the removed officer or employee is ineligible:
  17-16              (1)  to be a candidate for or to be appointed or
  17-17  elected to a public office in this state;
  17-18              (2)  to be employed by the local government with which
  17-19  the person served when the offense occurred; and
  17-20              (3)  to receive any compensation through a contract
  17-21  with that local government.
  17-22        (c)  This section does not prohibit the payment of retirement
  17-23  or workers' compensation benefits to the removed officer or
  17-24  employee.
  17-25        SECTION 2.  Subchapter A, Chapter 262, Local Government Code,
  17-26  is amended by adding Sections 262.006 and 262.007 to read as
  17-27  follows:
   18-1        Sec. 262.006.  COMPETITIVE BIDDING PROCEDURES ADOPTED BY
   18-2  COUNTY PURCHASING AGENTS.  A county purchasing agent shall adopt
   18-3  procedures that provide for competitive bidding, to the extent
   18-4  practicable under the circumstances, for the county purchase of an
   18-5  item under a contract that is not subject to competitive bidding
   18-6  under Section 274.011.
   18-7        Sec. 262.007.  ALTERNATIVE MULTISTEP COMPETITIVE PROPOSAL
   18-8  PROCEDURE.  (a)  A county with a population of 125,000 or more may
   18-9  use the multistep competitive proposal procedure provided by this
  18-10  section if:
  18-11              (1)  the county official who makes purchases for the
  18-12  county determines that it is impractical to prepare detailed
  18-13  specifications for an item to support the award of a purchase
  18-14  contract, and the official notifies the commissioners court of this
  18-15  determination; and
  18-16              (2)  the commissioners court, following notification
  18-17  under Subdivision (1), determines that it is impractical to prepare
  18-18  detailed specifications for an item to support the award of the
  18-19  purchase contract.
  18-20        (b)  The county shall solicit proposals by giving notice in
  18-21  the manner provided for competitive bids by Section 274.031.  The
  18-22  solicitation may request unpriced proposals.
  18-23        (c)  The county official shall open the proposals on the date
  18-24  specified in the notice.  Not later than the 15th day after that
  18-25  date, the county official shall solicit by mail priced bids from
  18-26  the persons who submitted proposals and who qualified under the
  18-27  criteria stated in the first solicitation.
   19-1        (d)  Negotiations may be conducted with responsible offerors
   19-2  who submit reasonable priced bids, as provided by the request for
   19-3  proposals and rules of the commissioners court.  Each offeror shall
   19-4  be given fair and equal opportunity for negotiation and revision of
   19-5  a proposal.
   19-6        (e)  Not later than the 60th day after the date proposals are
   19-7  opened under Subsection (c), the county official shall present the
   19-8  priced bids to the commissioners court.  The commissioners court
   19-9  shall award the contract to the responsible offeror whose bid the
  19-10  commissioners court determines is the most advantageous evaluated
  19-11  offer resulting from negotiation.  Each proposal and bid submitted
  19-12  is available and open for public inspection after the contract is
  19-13  awarded, except trade secrets and confidential information
  19-14  designated in the proposal as trade secrets or confidential
  19-15  information.
  19-16        SECTION 3.  The following provisions of the Local Government
  19-17  Code are repealed:
  19-18              (1)  Chapter 252;
  19-19              (2)  Section 262.005; and
  19-20              (3)  Subchapter C, Chapter 262.
  19-21        SECTION 4.  This Act applies only to a purchase for which the
  19-22  first solicitation of bids or proposals is made on or after
  19-23  September 1, 1993.
  19-24        SECTION 5.  This Act takes effect September 1, 1993.
  19-25        SECTION 6.  The importance of this legislation and the
  19-26  crowded condition of the calendars in both houses create an
  19-27  emergency   and   an   imperative   public   necessity   that   the
   20-1  constitutional rule requiring bills to be read on three several
   20-2  days in each house be suspended, and this rule is hereby suspended.