By McCall, Park, et al.                                 H.B. No. 52
       74R40 RWS-F
                                 A BILL TO BE ENTITLED
    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 agreement for
   3-10  cooperative purchasing administered by a regional planning
   3-11  commission established under Chapter 391; or <and>
   3-12              (13)  services performed by blind or severely disabled
   3-13  persons.
   3-14        SECTION 2.  Section 262.030, Local Government Code, is
   3-15  amended to read as follows:
   3-16        Sec. 262.030.  Alternative Competitive Proposal Procedure for
   3-17  Insurance, <or> High Technology Items, AND SPECIAL SERVICES.  (a)
   3-18  The competitive proposal procedure provided by this section may be
   3-19  used for the purchase of insurance, <or> high technology items, and
   3-20  the following special services:
   3-21              (1)  janitorial services;
   3-22              (2)  landscape maintenance;
   3-23              (3)  travel management;
   3-24              (4)  recycling; or
   3-25              (5)  vending, concession, or commissary services.
   3-26        (b)  Quotations must be solicited through a request for
   3-27  proposals.  Public notice for the request for proposals must be
    4-1  made in the same manner as provided in the competitive bidding
    4-2  procedure.  The request for proposals must specify the relative
    4-3  importance of price and other evaluation factors.  The award of the
    4-4  contract shall be made to the responsible offeror whose proposal is
    4-5  determined to be the lowest evaluated offer resulting from
    4-6  negotiation, taking into consideration the relative importance of
    4-7  price and other evaluation factors set forth in the request for
    4-8  proposals.
    4-9        (c) <(b)>  If provided in the request for proposals,
   4-10  proposals shall be opened so as to avoid disclosure of contents to
   4-11  competing offerors and kept secret during the process of
   4-12  negotiation.  All proposals that have been submitted shall be
   4-13  available and open for public inspection after the contract is
   4-14  awarded, except for trade secrets and confidential information
   4-15  contained in the proposals and identified as such.
   4-16        (d) <(c)>  As provided in the request for proposals and under
   4-17  rules adopted by the commissioners court, discussions may be
   4-18  conducted with responsible offerors who submit proposals determined
   4-19  to be reasonably susceptible of being selected for award.  Offerors
   4-20  must be accorded fair and equal treatment with respect to any
   4-21  opportunity for discussion and revision of proposals, and revisions
   4-22  may be permitted after submission and before award for the purpose
   4-23  of obtaining best and final offers.
   4-24        SECTION 3.  Section 262.031(b), Local Government Code, is
   4-25  amended to read as follows:
   4-26        (b)  If a change order involves an increase or decrease in
   4-27  cost of $50,000 <$15,000> or less, the commissioners court may
    5-1  grant general authority to an employee to approve the change
    5-2  orders.  However, the original contract price may not be increased
    5-3  by more than 25 percent unless the change order is necessary to
    5-4  comply with a federal or state statute, rule, regulation, or
    5-5  judicial decision enacted, adopted, or rendered after the contract
    5-6  was made.  The original contract price may not be decreased by 18
    5-7  percent or more without the consent of the contractor.
    5-8        SECTION 4.  Section 263.152(a), Local Government Code, is
    5-9  amended to read as follows:
   5-10        (a)  The commissioners court of a county may:
   5-11              (1)  periodically sell the county's surplus or salvage
   5-12  property by competitive bid or auction, except that competitive
   5-13  bidding or an auction is not necessary if the purchaser is another
   5-14  county;
   5-15              (2)  offer the property as a trade-in for new property
   5-16  of the same general type if the commissioners court considers that
   5-17  action to be in the best interests of the county; or
   5-18              (3)  order any of the property to be destroyed or
   5-19  otherwise disposed of as worthless if the commissioners court
   5-20  undertakes to sell that property under Subdivision (1) and is
   5-21  unable to do so because no bids are made.
   5-22        SECTION 5.  Chapter 271, Local Government Code, is amended by
   5-23  adding Subchapter F to read as follows:
   5-24             SUBCHAPTER F.  COOPERATIVE PURCHASING PROGRAM
   5-25        Sec. 271.101.  DEFINITIONS.  In this subchapter:
   5-26              (1)  "Local cooperative organization" means an
   5-27  organization established to provide local governments access to
    6-1  contracts with vendors for the purchase of materials, supplies,
    6-2  services, or equipment.
    6-3              (2)  "Local government" means a county, municipality,
    6-4  special district, school district, junior college district, or
    6-5  other political subdivision of the state.
    6-6        Sec. 271.102.  COOPERATIVE PURCHASING PROGRAM PARTICIPATION.
    6-7  (a)  A local government may participate in a cooperative purchasing
    6-8  program with another local government or a local cooperative
    6-9  organization.
   6-10        (b)  A local government that is participating in a
   6-11  cooperative purchasing program may sign an agreement with another
   6-12  participating local government or a local cooperative organization
   6-13  stating that the signing local government will:
   6-14              (1)  designate a person to act under the direction of,
   6-15  and on behalf of, that local government in all matters relating to
   6-16  the program;
   6-17              (2)  make payments to another participating local
   6-18  government or a local cooperative organization or directly to a
   6-19  vendor under a contract made under this subchapter, as provided in
   6-20  the agreement between the participating local governments or
   6-21  between a local government and a local cooperative organization;
   6-22  and
   6-23              (3)  be responsible for a vendor's compliance with
   6-24  provisions relating to the quality of items and terms of delivery,
   6-25  to the extent provided in the agreement between the participating
   6-26  local governments or between a local government and a local
   6-27  cooperative organization.
    7-1        (c)  A local government that purchases under this program
    7-2  complies with the competitive bidding requirements of this title or
    7-3  other state law if the entity that awards the contract complies
    7-4  with applicable competitive bidding requirements.
    7-5        SECTION 6.  Subchapter Z, Chapter 271, Local Government Code,
    7-6  is amended by adding Section 271.904 to read as follows:
    7-7        Sec. 271.904.  INDEMNIFICATION.  (a)  A contract for design
    7-8  or engineering services to which a governmental agency is a party
    7-9  may not include a provision requiring a design professional
   7-10  registered under The Texas Engineering Practice Act (Article 3271a,
   7-11  Vernon's Texas Civil Statutes) to indemnify the governmental agency
   7-12  for damages arising from the sole negligence of the governmental
   7-13  agency.
   7-14        (b)  A provision in violation of this section is void.
   7-15        (c)  In this section, "governmental agency" has the meaning
   7-16  assigned by Section 271.003.
   7-17        SECTION 7.  Section 19, The Texas Engineering Practice Act
   7-18  (Article 3271a, Vernon's Texas Civil Statutes), is amended to read
   7-19  as follows:
   7-20        Sec. 19.  PUBLIC WORK.  (a)  It is unlawful for this State or
   7-21  for any of its political subdivisions, including any county, city,
   7-22  or town, to engage in the construction of any public work involving
   7-23  professional engineering, where public health, public welfare or
   7-24  public safety is involved, unless the engineering plans and
   7-25  specifications and estimates have been prepared by, and the
   7-26  engineering construction is to be executed under the direct
   7-27  supervision of a registered professional engineer.  <However
    8-1  nothing in this Act shall be held to apply to any public work
    8-2  wherein the contemplated expenditure for the completed project does
    8-3  not exceed Eight Thousand ($8,000.00) Dollars.>
    8-4        (b)  This Act shall not apply to:
    8-5              (1)  a public work that involves structural,
    8-6  electrical, or mechanical engineering and for which the
    8-7  contemplated expenditure for the completed project does not exceed
    8-8  $8,000;
    8-9              (2)  a public work that does not involve structural,
   8-10  electrical, or mechanical engineering and for which the
   8-11  contemplated expenditure for the completed project does not exceed
   8-12  $20,000; and
   8-13              (3) <and>  road maintenance or betterment work
   8-14  undertaken by the commissioners court of a county <the County
   8-15  Commissioners' Court>.
   8-16        SECTION 8.  This Act takes effect September 1, 1995.
   8-17        SECTION 9.  The importance of this legislation and the
   8-18  crowded condition of the calendars in both houses create an
   8-19  emergency and an imperative public necessity that the
   8-20  constitutional rule requiring bills to be read on three several
   8-21  days in each house be suspended, and this rule is hereby suspended.