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.