S.B. No. 226
AN ACT
1-1 relating to the competitive bidding requirements of governmental
1-2 entities and certain duties of the Office of Small Business
1-3 Assistance.
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, other than a contract for
1-10 insurance, that requires an expenditure of more than $15,000
1-11 <$10,000> from one or more municipal funds, the municipality must
1-12 comply with the procedure prescribed by this chapter for
1-13 competitive sealed bidding or competitive sealed proposals.
1-14 (b) Before a municipality <with fewer than 50,000
1-15 inhabitants> may enter into a contract for insurance that requires
1-16 an expenditure of more than $5,000 from one or more municipal
1-17 funds, the municipality must comply with the procedure prescribed
1-18 by this chapter for competitive sealed bidding or competitive
1-19 sealed proposals.
1-20 (c) A municipality may use the competitive sealed proposal
1-21 procedure only for high technology procurements.
1-22 SECTION 2. Section 271.024, Local Government Code, is
1-23 amended to read as follows:
1-24 Sec. 271.024. COMPETITIVE BIDDING PROCEDURE APPLICABLE TO
2-1 CONTRACT. If a governmental entity is required by statute to award
2-2 a contract for the construction, repair, or renovation of a
2-3 structure, road, highway, or other improvement or addition to real
2-4 property on the basis of competitive bids, and if the contract
2-5 requires the expenditure of more than $15,000 <$10,000> from the
2-6 funds of the entity, the bidding on the contract must be
2-7 accomplished in the manner provided by this subchapter.
2-8 SECTION 3. Subchapter B, Chapter 252, Local Government Code,
2-9 is amended by adding Section 252.0215 to read as follows:
2-10 Sec. 252.0215. COMPETITIVE BIDDING IN RELATION TO
2-11 HISTORICALLY UNDERUTILIZED BUSINESS. A municipality, in making an
2-12 expenditure of more than $3,000 but less than $15,000, shall
2-13 contact at least two disadvantaged businesses on a rotating basis,
2-14 based on information provided by the Office of Small Business
2-15 Assistance of the Texas Department of Commerce pursuant to Section
2-16 1.03, State Purchasing and General Services Act (Article 601b,
2-17 Vernon's Texas Civil Statutes). If the list fails to identify a
2-18 disadvantaged business in the county in which the city is situated,
2-19 the city is exempt from this section.
2-20 SECTION 4. Subsection (a), Section 252.041, Local Government
2-21 Code, is amended to read as follows:
2-22 (a) If the competitive sealed bidding requirement applies to
2-23 the contract, notice of the time and place at which the bids will
2-24 be publicly opened and read aloud <contract will be let> must be
2-25 published at least once a week for two consecutive weeks in a
2-26 newspaper published in the municipality. The date of the first
2-27 publication must be before the 14th day before the date set to
3-1 publicly open the bids and read them aloud <let the contract>. If
3-2 no newspaper is published in the municipality, the notice must be
3-3 posted at the city hall for 14 days before the date set to publicly
3-4 open the bids and read them aloud <let the contract>.
3-5 SECTION 5. Section 252.002, Local Government Code, is
3-6 amended to read as follows:
3-7 Sec. 252.002. MUNICIPAL CHARTER CONTROLS IN CASE OF
3-8 CONFLICT. Any provision in the charter of a home-rule municipality
3-9 that relates to the notice of contracts, advertisement of the
3-10 notice, requirements for the taking of sealed bids based on
3-11 specifications for public improvements or purchases, <or> the
3-12 manner of publicly opening bids or reading them aloud, or the
3-13 manner of letting contracts and that is in conflict with this
3-14 chapter controls over this chapter unless the municipality elects
3-15 to have this chapter supersede the charter.
3-16 SECTION 6. Subsections (a) and (b), Section 271.055, Local
3-17 Government Code, are amended to read as follows:
3-18 (a) An issuer must give notice of the time, date, and place
3-19 at which the issuer will publicly open the bids on a contract <let
3-20 a contract> for which competitive bidding is required by this
3-21 subchapter and read the bids aloud. The notice must be given in
3-22 accordance with Subsection (b) or in accordance with:
3-23 (1) Chapter 252, if the issuer is a municipality;
3-24 (2) the municipal charter of the issuer, if the issuer
3-25 is a home-rule municipality; or
3-26 (3) the County Purchasing Act (Subchapter C, Chapter
3-27 262), if the issuer is a county.
4-1 (b) If an issuer gives notice under this subsection, the
4-2 notice must:
4-3 (1) be published once a week for two consecutive weeks
4-4 in a newspaper, as defined by Chapter 84, Acts of the 43rd
4-5 Legislature, 1st Called Session, 1933 (Article 28a, Vernon's Texas
4-6 Civil Statutes), that is of general circulation in the area of the
4-7 issuer, with the date of the first publication to be before the
4-8 14th day before the date set for the public opening of the bids and
4-9 the reading of the bids aloud <receipt of bids>; and
4-10 (2) state that plans and specifications for the work
4-11 to be done or specifications for the machinery, supplies,
4-12 equipment, or materials to be purchased are on file with a
4-13 designated official of the issuer and may be examined without
4-14 charge.
4-15 SECTION 7. Subsection (a), Section 252.022, Local Government
4-16 Code, is amended to read as follows:
4-17 (a) This chapter does not apply to an expenditure for:
4-18 (1) a procurement made because of a public calamity
4-19 that requires the immediate appropriation of money to relieve the
4-20 necessity of the municipality's residents or to preserve the
4-21 property of the municipality;
4-22 (2) a procurement necessary to preserve or protect the
4-23 public health or safety of the municipality's residents;
4-24 (3) a procurement necessary because of unforeseen
4-25 damage to public machinery, equipment, or other property;
4-26 (4) a procurement for personal or professional
4-27 services;
5-1 (5) a procurement for work that is performed and paid
5-2 for by the day as the work progresses;
5-3 (6) a purchase of land or a right-of-way;
5-4 (7) a procurement of items that are available from
5-5 only one source, including:
5-6 (A) items that are available from only one
5-7 source because of patents, copyrights, secret processes, or natural
5-8 monopolies;
5-9 (B) films, manuscripts, or books;
5-10 (C) electricity, gas, water, and other utility
5-11 services;
5-12 (D) captive replacement parts or components for
5-13 equipment;
5-14 (E) books, papers, and other library materials
5-15 for a public library that are available only from the persons
5-16 holding exclusive distribution rights to the materials; and
5-17 (F) management services provided by a nonprofit
5-18 organization to a municipal museum, park, zoo, or other facility to
5-19 which the organization has provided significant financial or other
5-20 benefits;
5-21 (8) a purchase of rare books, papers, and other
5-22 library materials for a public library;
5-23 (9) paving drainage, street widening, and other public
5-24 improvements, or related matters, if at least one-third of the cost
5-25 is to be paid by or through special assessments levied on property
5-26 that will benefit from the improvements;
5-27 (10) a public improvement project, authorized by the
6-1 voters of the municipality, for which there is a deficiency of
6-2 funds for completing the project in accordance with the plans and
6-3 purposes authorized by the voters;
6-4 (11) a payment under a contract by which a developer
6-5 participates in the construction of a public improvement as
6-6 provided by Subchapter C, Chapter 212; <and>
6-7 (12) personal property sold:
6-8 (A) at an auction by a state licensed
6-9 auctioneer;
6-10 (B) at a going out of business sale held in
6-11 compliance with Subchapter F, Chapter 17, Business & Commerce Code;
6-12 or
6-13 (C) by a political subdivision of this state, a
6-14 state agency of this state, or an entity of the federal government;
6-15 and
6-16 (13) services performed by blind or severely disabled
6-17 persons.
6-18 SECTION 8. Section 1.03, State Purchasing and General
6-19 Services Act (Article 601b, Vernon's Texas Civil Statutes), is
6-20 amended by adding Subsection (e) to read as follows:
6-21 (e) The office shall provide a copy of the directory to
6-22 every incorporated city twice annually, in January and July.
6-23 SECTION 9. The change in law made by this Act to Sections
6-24 252.021 and 271.024, Local Government Code, relating to the
6-25 contractual amount that requires a municipality to solicit
6-26 competitive bids or proposals, applies only to a contract for which
6-27 the notice soliciting bids or proposals is first published or
7-1 posted on or after September 1, 1993. A contract for which the
7-2 notice is first published or posted before September 1, 1993, is
7-3 subject to the law as it existed at the time the notice was first
7-4 published or posted, and the former law is continued in effect for
7-5 that purpose.
7-6 SECTION 10. This Act takes effect September 1, 1993.
7-7 SECTION 11. The importance of this legislation and the
7-8 crowded condition of the calendars in both houses create an
7-9 emergency and an imperative public necessity that the
7-10 constitutional rule requiring bills to be read on three several
7-11 days in each house be suspended, and this rule is hereby suspended.