By:  Harris of Tarrant                                 S.B. No. 320
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the competitive bidding requirements of certain
    1-2  governmental entities.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1. Section 252.002, Local Government Code, is amended
    1-5  to read as follows:
    1-6        Sec. 252.002.  Municipal Charter Controls in Case of
    1-7  Conflict.  Any provision in the charter of a home-rule municipality
    1-8  that relates to the notice of contracts, advertisement of the
    1-9  notice, requirements for the taking of sealed bids based on
   1-10  specifications for public improvements or purchases, <or> the
   1-11  manner of publicly opening bids or reading them aloud, or the
   1-12  manner of letting contracts and that is in conflict with this
   1-13  chapter controls over this chapter unless the municipality elects
   1-14  to have this chapter supersede the charter.
   1-15        SECTION 2. Subsections (a) and (b), Section 252.021, Local
   1-16  Government Code, are amended to read as follows:
   1-17        (a)  Before a municipality <with 50,000 or more inhabitants>
   1-18  may enter into a contract, other than a contract for insurance,
   1-19  that requires an expenditure of more than $25,000 <$10,000> from
   1-20  one or more municipal funds, the municipality must comply with the
   1-21  procedure prescribed by this chapter for competitive sealed bidding
   1-22  or competitive sealed proposals.
   1-23        (b)  Before a municipality may enter into a contract for
    2-1  insurance that requires an expenditure of more than $5,000 from one
    2-2  or more municipal funds, the municipality must comply with the
    2-3  procedure prescribed by this chapter for competitive bids or
    2-4  proposals <Before a municipality with fewer than 50,000 inhabitants
    2-5  may enter into a contract that requires an expenditure of more than
    2-6  $5,000, the municipality must comply with the procedure prescribed
    2-7  by this chapter for competitive sealed bidding or competitive
    2-8  sealed proposals>.
    2-9        SECTION 3. Subsection (a), Section 252.022, Local Government
   2-10  Code, is amended to read as follows:
   2-11        (a)  This chapter does not apply to an expenditure for:
   2-12              (1)  a procurement made because of a public calamity
   2-13  that requires the immediate appropriation of money to relieve the
   2-14  necessity of the municipality's residents or to preserve the
   2-15  property of the municipality;
   2-16              (2)  a procurement necessary to preserve or protect the
   2-17  public health or safety of the municipality's residents;
   2-18              (3)  a procurement necessary because of unforeseen
   2-19  damage to public machinery, equipment, or other property;
   2-20              (4)  a procurement for personal or professional
   2-21  services;
   2-22              (5)  a procurement for work that is performed and paid
   2-23  for by the day as the work progresses;
   2-24              (6)  a purchase of land or a right-of-way;
   2-25              (7)  a procurement of items that are available from
    3-1  only one source, including:
    3-2                    (A)  items that are available from only one
    3-3  source because of patents, copyrights, secret processes, or natural
    3-4  monopolies;
    3-5                    (B)  films, manuscripts, or books;
    3-6                    (C)  electricity, gas, water, and other utility
    3-7  services;
    3-8                    (D)  captive replacement parts or components for
    3-9  equipment;
   3-10                    (E)  books, papers, and other library materials
   3-11  for a public library that are available only from the persons
   3-12  holding exclusive distribution rights to the materials; and
   3-13                    (F)  management services provided by a nonprofit
   3-14  organization to a municipal museum, park, zoo, or other facility to
   3-15  which the organization has provided significant financial or other
   3-16  benefits;
   3-17              (8)  a purchase of rare books, papers, and other
   3-18  library materials for a public library;
   3-19              (9)  paving drainage, street widening, and other public
   3-20  improvements, or related matters, if at least one-third of the cost
   3-21  is to be paid by or through special assessments levied on property
   3-22  that will benefit from the improvements;
   3-23              (10)  a public improvement project, authorized by the
   3-24  voters of the municipality, for which there is a deficiency of
   3-25  funds for completing the project in accordance with the plans and
    4-1  purposes authorized by the voters;
    4-2              (11)  a payment under a contract by which a developer
    4-3  participates in the construction of a public improvement as
    4-4  provided by Subchapter C, Chapter 212; <and>
    4-5              (12)  personal property sold:
    4-6                    (A)  at an auction by a state licensed
    4-7  auctioneer;
    4-8                    (B)  at a going out of business sale held in
    4-9  compliance with Subchapter F, Chapter 17, Business & Commerce Code;
   4-10  or
   4-11                    (C)  by a political subdivision of this state, a
   4-12  state agency of this state, or an entity of the federal government;
   4-13  and
   4-14              (13)  services performed by persons who are blind or
   4-15  severely disabled.
   4-16        SECTION 4. Subsection (a), Section 252.041, Local Government
   4-17  Code, is amended to read as follows:
   4-18        (a)  If the competitive sealed bidding requirement applies to
   4-19  the contract, notice of the time and place at which the bids will
   4-20  be publicly opened and read aloud <contract will be let> must be
   4-21  published at least once a week for two consecutive weeks in a
   4-22  newspaper published in the municipality.  The date of the first
   4-23  publication must be before the 14th day before the date set to
   4-24  publicly open the bids and read them aloud <let the contract>.  If
   4-25  no newspaper is published in the municipality, the notice must be
    5-1  posted at the city hall for 14 days before the date set to publicly
    5-2  open the bids and read them aloud <let the contract>.
    5-3        SECTION 5. Section 271.024, Local Government Code, is amended
    5-4  to read as follows:
    5-5        Sec. 271.024.  Competitive Bidding Procedure Applicable to
    5-6  Contract.  If a governmental entity is required by statute to award
    5-7  a contract for the construction, repair, or renovation of a
    5-8  structure, road, highway, or other improvement or addition to real
    5-9  property on the basis of competitive bids, and if the contract
   5-10  requires the expenditure of more than $25,000 <$10,000> from the
   5-11  funds of the entity, the bidding on the contract must be
   5-12  accomplished in the manner provided by this subchapter.
   5-13        SECTION 6. Subsections (a) and (b), Section 271.055, Local
   5-14  Government Code, are amended to read as follows:
   5-15        (a)  An issuer must give notice of the time, date, and place
   5-16  at which the issuer will publicly open and read aloud the bids on
   5-17  <let> a contract for which competitive bidding is required by this
   5-18  subchapter.  The notice must be given in accordance with Subsection
   5-19  (b) or in accordance with:
   5-20              (1)  Chapter 252, if the issuer is a municipality;
   5-21              (2)  the municipal charter of the issuer, if the issuer
   5-22  is a home-rule municipality; or
   5-23              (3)  the County Purchasing Act (Subchapter C, Chapter
   5-24  262), if the issuer is a county.
   5-25        (b)  If an issuer gives notice under this subsection, the
    6-1  notice must:
    6-2              (1)  be published once a week for two consecutive weeks
    6-3  in a newspaper, as defined by Chapter 84, Acts of the 43rd
    6-4  Legislature, 1st Called Session, 1933 (Article 28a, Vernon's Texas
    6-5  Civil Statutes), that is of general circulation in the area of the
    6-6  issuer, with the date of the first publication to be before the
    6-7  14th day before the date set for the public opening and reading
    6-8  aloud of the bids <receipt of bids>; and
    6-9              (2)  state that plans and specifications for the work
   6-10  to be done or specifications for the machinery, supplies,
   6-11  equipment, or materials to be purchased are on file with a
   6-12  designated official of the issuer and may be examined without
   6-13  charge.
   6-14        SECTION 7. The importance of this legislation and the crowded
   6-15  condition of the calendars in both houses create an emergency and
   6-16  an imperative public necessity that the constitutional rule
   6-17  requiring bills to be read on three several days in each house be
   6-18  suspended, and this rule is hereby suspended.