By Pitts                                              H.B. No. 1647
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to purchasing and contracting authority of municipalities.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 252.001, Local Government Code, is
    1-5  amended to read as follows:
    1-6        Sec. 252.001.  Definitions.  In this chapter:
    1-7              (1)  "Bond funds" includes money in the treasury
    1-8  received from the sale of bonds and includes the proceeds of bonds
    1-9  that have been voted but have not been issued and delivered.
   1-10              (2)  "Component purchases" means purchases of the
   1-11  component parts of an item that in normal purchasing practices
   1-12  would be purchased in one purchase.
   1-13              (3)  "Current funds" includes money in the treasury,
   1-14  taxes in the process of being collected in the current tax year,
   1-15  and all other revenue that may be anticipated with reasonable
   1-16  certainty in the current tax year.
   1-17              (4)  "High technology procurement" means the
   1-18  procurement of equipment, goods, or services of a highly technical
   1-19  nature, including:
   1-20                    (A)  data processing equipment and software and
   1-21  firmware used in conjunction with data processing equipment;
   1-22                    (B)  telecommunications equipment and radio and
   1-23  microwave systems;
   1-24                    (C)  electronic distributed control systems,
    2-1  including building energy management systems; and
    2-2                    (D)  technical services related to those items.
    2-3              (5)  "Planning services" means services primarily
    2-4  intended to guide governmental policy to ensure the orderly and
    2-5  coordinated development of the state or of municipal, county,
    2-6  metropolitan, or regional land areas.
    2-7              (6) <(5)>  "Separate purchases" means purchases, made
    2-8  separately, of items that in normal purchasing practices would be
    2-9  purchased in one purchase.
   2-10              (7) <(6)>  "Sequential purchases" means purchases, made
   2-11  over a period, of items that in normal purchasing practices would
   2-12  be purchased in one purchase.
   2-13              (8) <(7)>  "Time warrant" includes any warrant issued
   2-14  by a municipality that is not payable from current funds.
   2-15        SECTION 2.  Subchapter A, Chapter 252, Local Government Code,
   2-16  is amended by adding Section 252.004 to read as follows:
   2-17        Sec. 252.004.  ENCOURAGEMENT OF HISTORICALLY UNDERUTILIZED
   2-18  BUSINESS PARTICIPATION IN CERTAIN CIRCUMSTANCES.  (a)  A
   2-19  municipality that authorizes an expenditure relating to personal,
   2-20  professional, or planning services described by Section 252.022 is
   2-21  encouraged to establish a program designed to reasonably increase
   2-22  participation by minority businesses and women-owned businesses in
   2-23  contracts related to those expenditures.
   2-24        (b)  In this section, "minority business" and "women-owned
   2-25  business" have the meanings assigned by Section 381.004.
   2-26        SECTION 3.  Section 252.022(a), Local Government Code, is
   2-27  amended to read as follows:
    3-1        (a)  This chapter does not apply to an expenditure for:
    3-2              (1)  a procurement made because of a public calamity
    3-3  that requires the immediate appropriation of money to relieve the
    3-4  necessity of the municipality's residents or to preserve the
    3-5  property of the municipality;
    3-6              (2)  a procurement necessary to preserve or protect the
    3-7  public health or safety of the municipality's residents;
    3-8              (3)  a procurement necessary because of unforeseen
    3-9  damage to public machinery, equipment, or other property;
   3-10              (4)  a procurement for personal, <or> professional, or
   3-11  planning services;
   3-12              (5)  a procurement for work that is performed and paid
   3-13  for by the day as the work progresses;
   3-14              (6)  a purchase of land or a right-of-way;
   3-15              (7)  a procurement of items that are available from
   3-16  only one source, including:
   3-17                    (A)  items that are available from only one
   3-18  source because of patents, copyrights, secret processes, or natural
   3-19  monopolies;
   3-20                    (B)  films, manuscripts, or books;
   3-21                    (C)  electricity, gas, water, and other utility
   3-22  services;
   3-23                    (D)  captive replacement parts or components for
   3-24  equipment;
   3-25                    (E)  books, papers, and other library materials
   3-26  for a public library that are available only from the persons
   3-27  holding exclusive distribution rights to the materials; and
    4-1                    (F)  management services provided by a nonprofit
    4-2  organization to a municipal museum, park, zoo, or other facility to
    4-3  which the organization has provided significant financial or other
    4-4  benefits;
    4-5              (8)  a purchase of rare books, papers, and other
    4-6  library materials for a public library;
    4-7              (9)  paving drainage, street widening, and other public
    4-8  improvements, or related matters, if at least one-third of the cost
    4-9  is to be paid by or through special assessments levied on property
   4-10  that will benefit from the improvements;
   4-11              (10)  a public improvement project, authorized by the
   4-12  voters of the municipality, for which there is a deficiency of
   4-13  funds for completing the project in accordance with the plans and
   4-14  purposes authorized by the voters;
   4-15              (11)  a payment under a contract by which a developer
   4-16  participates in the construction of a public improvement as
   4-17  provided by Subchapter C, Chapter 212;
   4-18              (12)  personal property sold:
   4-19                    (A)  at an auction by a state licensed
   4-20  auctioneer;
   4-21                    (B)  at a going out of business sale held in
   4-22  compliance with Subchapter F, Chapter 17, Business & Commerce Code;
   4-23  or
   4-24                    (C)  by a political subdivision of this state, a
   4-25  state agency of this state, or an entity of the federal government;
   4-26  and
   4-27              (13)  services performed by blind or severely disabled
    5-1  persons.
    5-2        SECTION 4.  The importance of this legislation and the
    5-3  crowded condition of the calendars in both houses create an
    5-4  emergency and an imperative public necessity that the
    5-5  constitutional rule requiring bills to be read on three several
    5-6  days in each house be suspended, and this rule is hereby suspended,
    5-7  and that this Act take effect and be in force from and after its
    5-8  passage, and it is so enacted.