1-1 By: West, Lucio S.B. No. 226
1-2 (In the Senate - Filed February 1, 1993; February 2, 1993,
1-3 read first time and referred to Committee on Intergovernmental
1-4 Relations; April 1, 1993, reported adversely, with favorable
1-5 Committee Substitute by the following vote: Yeas 8, Nays 1;
1-6 April 1, 1993, sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Armbrister x
1-10 Leedom x
1-11 Carriker x
1-12 Henderson x
1-13 Madla x
1-14 Moncrief x
1-15 Patterson x
1-16 Rosson x
1-17 Shapiro x
1-18 Wentworth x
1-19 Whitmire x
1-20 COMMITTEE SUBSTITUTE FOR S.B. No. 226 By: Madla
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to the competitive bidding requirements of governmental
1-24 entities and certain duties of the Office of Small Business
1-25 Assistance.
1-26 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-27 SECTION 1. Section 252.021, Local Government Code, is
1-28 amended to read as follows:
1-29 Sec. 252.021. COMPETITIVE BIDDING AND COMPETITIVE PROPOSAL
1-30 REQUIREMENTS. (a) Before a municipality <with 50,000 or more
1-31 inhabitants> may enter into a contract, other than a contract for
1-32 insurance, that requires an expenditure of more than $25,000
1-33 <$10,000> from one or more municipal funds, the municipality must
1-34 comply with the procedure prescribed by this chapter for
1-35 competitive sealed bidding or competitive sealed proposals.
1-36 (b) Before a municipality <with fewer than 50,000
1-37 inhabitants> may enter into a contract for insurance that requires
1-38 an expenditure of more than $5,000 from one or more municipal
1-39 funds, the municipality must comply with the procedure prescribed
1-40 by this chapter for competitive sealed bidding or competitive
1-41 sealed proposals.
1-42 (c) A municipality may use the competitive sealed proposal
1-43 procedure only for high technology procurements.
1-44 SECTION 2. Section 271.024, Local Government Code, is
1-45 amended to read as follows:
1-46 Sec. 271.024. COMPETITIVE BIDDING PROCEDURE APPLICABLE TO
1-47 CONTRACT. If a governmental entity is required by statute to award
1-48 a contract for the construction, repair, or renovation of a
1-49 structure, road, highway, or other improvement or addition to real
1-50 property on the basis of competitive bids, and if the contract
1-51 requires the expenditure of more than $25,000 <$10,000> from the
1-52 funds of the entity, the bidding on the contract must be
1-53 accomplished in the manner provided by this subchapter.
1-54 SECTION 3. Subchapter B, Chapter 252, Local Government Code,
1-55 is amended by adding Section 252.0215 to read as follows:
1-56 Sec. 252.0215. COMPETITIVE BIDDING IN RELATION TO
1-57 HISTORICALLY UNDERUTILIZED BUSINESS. A municipality, in making an
1-58 expenditure of more than $3,000 but less than $25,000, shall
1-59 contact at least two disadvantaged businesses on a rotating basis,
1-60 based on information provided by the Office of Small Business
1-61 Assistance of the Texas Department of Commerce pursuant to Section
1-62 1.03, State Purchasing and General Services Act (Article 601b,
1-63 Vernon's Texas Civil Statutes). If the list fails to identify a
1-64 disadvantaged business in the county in which the city is situated,
1-65 the city is exempt from this section.
1-66 SECTION 4. Subsection (a), Section 252.041, Local Government
1-67 Code, is amended to read as follows:
1-68 (a) If the competitive sealed bidding requirement applies to
2-1 the contract, notice of the time and place at which the bids will
2-2 be publicly opened and read aloud <contract will be let> must be
2-3 published at least once a week for two consecutive weeks in a
2-4 newspaper published in the municipality. The date of the first
2-5 publication must be before the 14th day before the date set to
2-6 publicly open the bids and read them aloud <let the contract>. If
2-7 no newspaper is published in the municipality, the notice must be
2-8 posted at the city hall for 14 days before the date set to publicly
2-9 open the bids and read them aloud <let the contract>.
2-10 SECTION 5. Section 252.002, Local Government Code, is
2-11 amended to read as follows:
2-12 Sec. 252.002. MUNICIPAL CHARTER CONTROLS IN CASE OF
2-13 CONFLICT. Any provision in the charter of a home-rule municipality
2-14 that relates to the notice of contracts, advertisement of the
2-15 notice, requirements for the taking of sealed bids based on
2-16 specifications for public improvements or purchases, <or> the
2-17 manner of publicly opening bids or reading them aloud, or the
2-18 manner of letting contracts and that is in conflict with this
2-19 chapter controls over this chapter unless the municipality elects
2-20 to have this chapter supersede the charter.
2-21 SECTION 6. Subsections (a) and (b), Section 271.055, Local
2-22 Government Code, are amended to read as follows:
2-23 (a) An issuer must give notice of the time, date, and place
2-24 at which the issuer will publicly open the bids on a contract <let
2-25 a contract> for which competitive bidding is required by this
2-26 subchapter and read the bids aloud. The notice must be given in
2-27 accordance with Subsection (b) or in accordance with:
2-28 (1) Chapter 252, if the issuer is a municipality;
2-29 (2) the municipal charter of the issuer, if the issuer
2-30 is a home-rule municipality; or
2-31 (3) the County Purchasing Act (Subchapter C, Chapter
2-32 262), if the issuer is a county.
2-33 (b) If an issuer gives notice under this subsection, the
2-34 notice must:
2-35 (1) be published once a week for two consecutive weeks
2-36 in a newspaper, as defined by Chapter 84, Acts of the 43rd
2-37 Legislature, 1st Called Session, 1933 (Article 28a, Vernon's Texas
2-38 Civil Statutes), that is of general circulation in the area of the
2-39 issuer, with the date of the first publication to be before the
2-40 14th day before the date set for the public opening of the bids and
2-41 the reading of the bids aloud <receipt of bids>; and
2-42 (2) state that plans and specifications for the work
2-43 to be done or specifications for the machinery, supplies,
2-44 equipment, or materials to be purchased are on file with a
2-45 designated official of the issuer and may be examined without
2-46 charge.
2-47 SECTION 7. Subsection (a), Section 252.022, Local Government
2-48 Code, is amended to read as follows:
2-49 (a) This chapter does not apply to an expenditure for:
2-50 (1) a procurement made because of a public calamity
2-51 that requires the immediate appropriation of money to relieve the
2-52 necessity of the municipality's residents or to preserve the
2-53 property of the municipality;
2-54 (2) a procurement necessary to preserve or protect the
2-55 public health or safety of the municipality's residents;
2-56 (3) a procurement necessary because of unforeseen
2-57 damage to public machinery, equipment, or other property;
2-58 (4) a procurement for personal or professional
2-59 services;
2-60 (5) a procurement for work that is performed and paid
2-61 for by the day as the work progresses;
2-62 (6) a purchase of land or a right-of-way;
2-63 (7) a procurement of items that are available from
2-64 only one source, including:
2-65 (A) items that are available from only one
2-66 source because of patents, copyrights, secret processes, or natural
2-67 monopolies;
2-68 (B) films, manuscripts, or books;
2-69 (C) electricity, gas, water, and other utility
2-70 services;
3-1 (D) captive replacement parts or components for
3-2 equipment;
3-3 (E) books, papers, and other library materials
3-4 for a public library that are available only from the persons
3-5 holding exclusive distribution rights to the materials; and
3-6 (F) management services provided by a nonprofit
3-7 organization to a municipal museum, park, zoo, or other facility to
3-8 which the organization has provided significant financial or other
3-9 benefits;
3-10 (8) a purchase of rare books, papers, and other
3-11 library materials for a public library;
3-12 (9) paving drainage, street widening, and other public
3-13 improvements, or related matters, if at least one-third of the cost
3-14 is to be paid by or through special assessments levied on property
3-15 that will benefit from the improvements;
3-16 (10) a public improvement project, authorized by the
3-17 voters of the municipality, for which there is a deficiency of
3-18 funds for completing the project in accordance with the plans and
3-19 purposes authorized by the voters;
3-20 (11) a payment under a contract by which a developer
3-21 participates in the construction of a public improvement as
3-22 provided by Subchapter C, Chapter 212; <and>
3-23 (12) personal property sold:
3-24 (A) at an auction by a state licensed
3-25 auctioneer;
3-26 (B) at a going out of business sale held in
3-27 compliance with Subchapter F, Chapter 17, Business & Commerce Code;
3-28 or
3-29 (C) by a political subdivision of this state, a
3-30 state agency of this state, or an entity of the federal government;
3-31 and
3-32 (13) services performed by blind or severely disabled
3-33 persons.
3-34 SECTION 8. Section 1.03, State Purchasing and General
3-35 Services Act (Article 601b, Vernon's Texas Civil Statutes), is
3-36 amended by adding Subsection (e) to read as follows:
3-37 (e) The office shall provide a copy of the directory to
3-38 every incorporated city twice annually, in January and July.
3-39 SECTION 9. The change in law made by this Act to Sections
3-40 252.021 and 271.024, Local Government Code, relating to the
3-41 contractual amount that requires a municipality to solicit
3-42 competitive bids or proposals, applies only to a contract for which
3-43 the notice soliciting bids or proposals is first published or
3-44 posted on or after September 1, 1993. A contract for which the
3-45 notice is first published or posted before September 1, 1993, is
3-46 subject to the law as it existed at the time the notice was first
3-47 published or posted, and the former law is continued in effect for
3-48 that purpose.
3-49 SECTION 10. This Act takes effect September 1, 1993.
3-50 SECTION 11. The importance of this legislation and the
3-51 crowded condition of the calendars in both houses create an
3-52 emergency and an imperative public necessity that the
3-53 constitutional rule requiring bills to be read on three several
3-54 days in each house be suspended, and this rule is hereby suspended.
3-55 * * * * *
3-56 Austin,
3-57 Texas
3-58 April 1, 1993
3-59 Hon. Bob Bullock
3-60 President of the Senate
3-61 Sir:
3-62 We, your Committee on Intergovernmental Relations to which was
3-63 referred S.B. No. 226, have had the same under consideration, and I
3-64 am instructed to report it back to the Senate with the
3-65 recommendation that it do not pass, but that the Committee
3-66 Substitute adopted in lieu thereof do pass and be printed.
3-67 Armbrister,
3-68 Chairman
3-69 * * * * *
3-70 WITNESSES
4-1 FOR AGAINST ON
4-2 ___________________________________________________________________
4-3 Name: Pat Parrish x
4-4 Representing: City of Dallas
4-5 City: Dallas
4-6 -------------------------------------------------------------------
4-7 Name: Bob McFarland x
4-8 Representing: Arlington, Euless, Grapevine,
4-9 Ir
4-10 City: Austin
4-11 -------------------------------------------------------------------
4-12 Name: Patti Clap x
4-13 Representing: Greater Dallas Chamber
4-14 City: Dallas
4-15 -------------------------------------------------------------------
4-16 Name: Larry Casto x
4-17 Representing: City of Dallas
4-18 City: Dallas
4-19 -------------------------------------------------------------------