H.B. No. 52
    1-1                                AN ACT
    1-2  relating to the authority of state and local governments to make
    1-3  purchases and contracts and to engage in certain projects.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 252.022(a), Local Government Code, is
    1-6  amended to read as follows:
    1-7        (a)  This chapter does not apply to an expenditure for:
    1-8              (1)  a procurement made because of a public calamity
    1-9  that requires the immediate appropriation of money to relieve the
   1-10  necessity of the municipality's residents or to preserve the
   1-11  property of the municipality;
   1-12              (2)  a procurement necessary to preserve or protect the
   1-13  public health or safety of the municipality's residents;
   1-14              (3)  a procurement necessary because of unforeseen
   1-15  damage to public machinery, equipment, or other property;
   1-16              (4)  a procurement for personal or professional
   1-17  services;
   1-18              (5)  a procurement for work that is performed and paid
   1-19  for by the day as the work progresses;
   1-20              (6)  a purchase of land or a right-of-way;
   1-21              (7)  a procurement of items that are available from
   1-22  only one source, including:
   1-23                    (A)  items that are available from only one
   1-24  source because of patents, copyrights, secret processes, or natural
    2-1  monopolies;
    2-2                    (B)  films, manuscripts, or books;
    2-3                    (C)  electricity, gas, water, and other utility
    2-4  services;
    2-5                    (D)  captive replacement parts or components for
    2-6  equipment;
    2-7                    (E)  books, papers, and other library materials
    2-8  for a public library that are available only from the persons
    2-9  holding exclusive distribution rights to the materials; and
   2-10                    (F)  management services provided by a nonprofit
   2-11  organization to a municipal museum, park, zoo, or other facility to
   2-12  which the organization has provided significant financial or other
   2-13  benefits;
   2-14              (8)  a purchase of rare books, papers, and other
   2-15  library materials for a public library;
   2-16              (9)  paving drainage, street widening, and other public
   2-17  improvements, or related matters, if at least one-third of the cost
   2-18  is to be paid by or through special assessments levied on property
   2-19  that will benefit from the improvements;
   2-20              (10)  a public improvement project, authorized by the
   2-21  voters of the municipality, for which there is a deficiency of
   2-22  funds for completing the project in accordance with the plans and
   2-23  purposes authorized by the voters;
   2-24              (11)  a payment under a contract by which a developer
   2-25  participates in the construction of a public improvement as
   2-26  provided by Subchapter C, Chapter 212;
   2-27              (12)  personal property sold:
    3-1                    (A)  at an auction by a state licensed
    3-2  auctioneer;
    3-3                    (B)  at a going out of business sale held in
    3-4  compliance with Subchapter F, Chapter 17, Business & Commerce Code;
    3-5  <or>
    3-6                    (C)  by a political subdivision of this state, a
    3-7  state agency of this state, or an entity of the federal government;
    3-8  or
    3-9                    (D)  under an interlocal contract for cooperative
   3-10  purchasing administered by a regional planning commission
   3-11  established under Chapter 391; or <and>
   3-12              (13)  services performed by blind or severely disabled
   3-13  persons.
   3-14        SECTION 2.  Section 252.048(c), Local Government Code, is
   3-15  amended to read as follows:
   3-16        (c)  If a change order involves a decrease or an increase of
   3-17  $25,000 <$15,000> or less, the governing body may grant general
   3-18  authority to an administrative official of the municipality to
   3-19  approve the change orders.
   3-20        SECTION 3.  Section 262.030, Local Government Code, is
   3-21  amended to read as follows:
   3-22        Sec. 262.030.  Alternative Competitive Proposal Procedure for
   3-23  Insurance, <OR> High Technology Items, AND SPECIAL SERVICES.  (a)
   3-24  The competitive proposal procedure provided by this section may be
   3-25  used for the purchase of insurance, <or> high technology items, and
   3-26  the following special services:
   3-27              (1)  landscape maintenance;
    4-1              (2)  travel management; or
    4-2              (3)  recycling.
    4-3        (b)  Quotations must be solicited through a request for
    4-4  proposals.  Public notice for the request for proposals must be
    4-5  made in the same manner as provided in the competitive bidding
    4-6  procedure.  The request for proposals must specify the relative
    4-7  importance of price and other evaluation factors.  The award of the
    4-8  contract shall be made to the responsible offeror whose proposal is
    4-9  determined to be the lowest evaluated offer resulting from
   4-10  negotiation, taking into consideration the relative importance of
   4-11  price and other evaluation factors set forth in the request for
   4-12  proposals.
   4-13        (c) <(b)>  If provided in the request for proposals,
   4-14  proposals shall be opened so as to avoid disclosure of contents to
   4-15  competing offerors and kept secret during the process of
   4-16  negotiation.  All proposals that have been submitted shall be
   4-17  available and open for public inspection after the contract is
   4-18  awarded, except for trade secrets and confidential information
   4-19  contained in the proposals and identified as such.
   4-20        (d) <(c)>  As provided in the request for proposals and under
   4-21  rules adopted by the commissioners court, discussions may be
   4-22  conducted with responsible offerors who submit proposals determined
   4-23  to be reasonably susceptible of being selected for award.  Offerors
   4-24  must be accorded fair and equal treatment with respect to any
   4-25  opportunity for discussion and revision of proposals, and revisions
   4-26  may be permitted after submission and before award for the purpose
   4-27  of obtaining best and final offers.
    5-1        SECTION 4.  Section 262.031(b), Local Government Code, is
    5-2  amended to read as follows:
    5-3        (b)  If a change order involves an increase or decrease in
    5-4  cost of $50,000 <$15,000> or less, the commissioners court may
    5-5  grant general authority to an employee to approve the change
    5-6  orders.  However, the original contract price may not be increased
    5-7  by more than 25 percent unless the change order is necessary to
    5-8  comply with a federal or state statute, rule, regulation, or
    5-9  judicial decision enacted, adopted, or rendered after the contract
   5-10  was made.  The original contract price may not be decreased by 18
   5-11  percent or more without the consent of the contractor.
   5-12        SECTION 5.  Section 263.152(a), Local Government Code, is
   5-13  amended to read as follows:
   5-14        (a)  The commissioners court of a county may:
   5-15              (1)  periodically sell the county's surplus or salvage
   5-16  property by competitive bid or auction, except that competitive
   5-17  bidding or an auction is not necessary if the purchaser is another
   5-18  county;
   5-19              (2)  offer the property as a trade-in for new property
   5-20  of the same general type if the commissioners court considers that
   5-21  action to be in the best interests of the county; or
   5-22              (3)  order any of the property to be destroyed or
   5-23  otherwise disposed of as worthless if the commissioners court
   5-24  undertakes to sell that property under Subdivision (1) and is
   5-25  unable to do so because no bids are made.
   5-26        SECTION 6.  Section 271.083(a), Local Government Code, is
   5-27  amended to read as follows:
    6-1        (a)  A local government may participate in the purchasing
    6-2  program of the commission by filing with the commission a
    6-3  resolution adopted by the governing body of the local government
    6-4  requesting that the local government be allowed to participate on a
    6-5  voluntary basis, and to the extent the commission deems feasible,
    6-6  and stating that the local government will:
    6-7              (1)  designate an official to act for the local
    6-8  government in all matters relating to the program, including the
    6-9  purchase of items from the vendor under any contract, and that the
   6-10  governing body will direct the decisions of the representative;
   6-11              (2)  be responsible for:
   6-12                    (A)  submitting requisitions to the commission
   6-13  under any contract; or
   6-14                    (B)  electronically sending purchase orders
   6-15  directly to vendors and electronically sending to the commission
   6-16  reports on actual purchases made under this paragraph that provide
   6-17  the information and are sent at the times required by the
   6-18  commission;
   6-19              (3)  be responsible <and> for making payment directly
   6-20  to the vendor; and
   6-21              (4) <(3)>  be responsible for the vendor's compliance
   6-22  with all conditions of delivery and quality of the purchased item.
   6-23        SECTION 7.  Chapter 271, Local Government Code, is amended by
   6-24  adding Subchapter F to read as follows:
   6-25             SUBCHAPTER F.  COOPERATIVE PURCHASING PROGRAM
   6-26        Sec. 271.101.  DEFINITIONS.  In this subchapter:
   6-27              (1)  "Local cooperative organization" means an
    7-1  organization of governments established to provide local
    7-2  governments access to contracts with vendors for the purchase of
    7-3  materials, supplies, services, or equipment.
    7-4              (2)  "Local government" means a county, municipality,
    7-5  special district, school district, junior college district,
    7-6  regional planning commission, or other political subdivision of the
    7-7  state.
    7-8        Sec. 271.102.  COOPERATIVE PURCHASING PROGRAM PARTICIPATION.
    7-9  (a)  A local government may participate in a cooperative purchasing
   7-10  program with another local government or a local cooperative
   7-11  organization.
   7-12        (b)  A local government that is participating in a
   7-13  cooperative purchasing program may sign an agreement with another
   7-14  participating local government or a local cooperative organization
   7-15  stating that the signing local government will:
   7-16              (1)  designate a person to act under the direction of,
   7-17  and on behalf of, that local government in all matters relating to
   7-18  the program;
   7-19              (2)  make payments to another participating local
   7-20  government or a local cooperative organization or directly to a
   7-21  vendor under a contract made under this subchapter, as provided in
   7-22  the agreement between the participating local governments or
   7-23  between a local government and a local cooperative organization;
   7-24  and
   7-25              (3)  be responsible for a vendor's compliance with
   7-26  provisions relating to the quality of items and terms of delivery,
   7-27  to the extent provided in the agreement between the participating
    8-1  local governments or between a local government and a local
    8-2  cooperative organization.
    8-3        (c)  A local government that purchases goods or services
    8-4  under this subchapter satisfies any state law requiring the local
    8-5  government to seek competitive bids for the purchase of the goods
    8-6  or services.
    8-7        SECTION 8.  Subchapter Z, Chapter 271, Local Government Code,
    8-8  is amended by adding Section 271.904 to read as follows:
    8-9        Sec. 271.904.  INDEMNIFICATION.  (a)  Except as provided by
   8-10  Subsection (b), a covenant or promise in, in connection with, or
   8-11  collateral to a contract for engineering or architectural services
   8-12  to which a governmental agency is a party is void and unenforceable
   8-13  if the covenant or promise provides that a registered engineer or
   8-14  registered architect whose work product is the subject of the
   8-15  contract must indemnify or hold harmless the governmental agency
   8-16  against liability for damage that:
   8-17              (1)  is caused by or results from the negligence of the
   8-18  governmental agency or its agent or employee; and
   8-19              (2)  arises from:
   8-20                    (A)  personal injury or death;
   8-21                    (B)  property injury; or
   8-22                    (C)  any other expense that arises from personal
   8-23  injury, death, or property injury.
   8-24        (b)  A covenant under which a registered engineer or
   8-25  registered architect agrees to indemnify or hold harmless a
   8-26  governmental agency or its agent or employees against liability
   8-27  arising from the personal injury or death of the architect or
    9-1  engineer or the employees of the architect or engineer is
    9-2  enforceable.
    9-3        (c)  In this section, "governmental agency" has the meaning
    9-4  assigned by Section 271.003.
    9-5        SECTION 9.  Section 19, The Texas Engineering Practice Act
    9-6  (Article 3271a, Vernon's Texas Civil Statutes), is amended to read
    9-7  as follows:
    9-8        Sec. 19.  PUBLIC WORK.  (a)  It is unlawful for this State or
    9-9  for any of its political subdivisions, including any county, city,
   9-10  or town, to engage in the construction of any public work involving
   9-11  professional engineering, where public health, public welfare or
   9-12  public safety is involved, unless the engineering plans and
   9-13  specifications and estimates have been prepared by, and the
   9-14  engineering construction is to be executed under the direct
   9-15  supervision of a registered professional engineer.  <However
   9-16  nothing in this Act shall be held to apply to any public work
   9-17  wherein the contemplated expenditure for the completed project does
   9-18  not exceed Eight Thousand ($8,000.00) Dollars.>
   9-19        (b)  This Act shall not apply to:
   9-20              (1)  a public work that involves structural,
   9-21  electrical, or mechanical engineering and for which the
   9-22  contemplated expenditure for the completed project does not exceed
   9-23  $8,000;
   9-24              (2)  a public work that does not involve structural,
   9-25  electrical, or mechanical engineering and for which the
   9-26  contemplated expenditure for the completed project does not exceed
   9-27  $20,000; and
   10-1              (3)  <any>  road maintenance or betterment work
   10-2  undertaken by the commissioners court of a county <the County
   10-3  Commissioners' Court>.
   10-4        SECTION 10.  Chapter 122, Human Resources Code, is amended by
   10-5  adding Section 122.020 to read as follows:
   10-6        Sec. 122.020.  APPLICATION OF OTHER LAW.  Chapters 252, 262,
   10-7  and 271, Local Government Code, do not supersede this chapter.
   10-8        SECTION 11.  Section 1.03(a), State Purchasing and General
   10-9  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  10-10  amended to read as follows:
  10-11        (a)  The commission shall certify businesses that are
  10-12  historically underutilized businesses.  As part of its
  10-13  certification procedures, the commission may approve another
  10-14  certification <a municipal> program that certifies historically
  10-15  underutilized businesses under substantially the same definition
  10-16  prescribed by Section 1.02(3) of this Act, and municipalities may
  10-17  adopt the certification program of the commission, the federal
  10-18  Small Business Administration, a political subdivision, or another
  10-19  governmental entity <certify businesses certified by the
  10-20  municipality as historically underutilized businesses under this
  10-21  Act>.
  10-22        SECTION 12.  The importance of this legislation and the
  10-23  crowded condition of the calendars in both houses create an
  10-24  emergency and an imperative public necessity that the
  10-25  constitutional rule requiring bills to be read on three several
  10-26  days in each house be suspended, and this rule is hereby suspended,
  10-27  and that this Act take effect and be in force from and after its
   11-1  passage, and it is so enacted.