1-1     By:  Clark (Senate Sponsor - Shapiro)                 H.B. No. 1161

 1-2           (In the Senate - Received from the House May 6, 1997;

 1-3     May 7, 1997, read first time and referred to Committee on

 1-4     Intergovernmental Relations; May 16, 1997, reported favorably, as

 1-5     amended, by the following vote:  Yeas 11, Nays 0; May 16, 1997,

 1-6     sent to printer.)

 1-7     COMMITTEE AMENDMENT NO. 1                              By:  Shapiro

 1-8           Amend HB 1161 by adding a new appropriately numbered section

 1-9     to read as follows, and renumbering existing sections accordingly:

1-10           SECTION _____.  Section 252.043(a), Local Government Code, is

1-11     amended to read as follows:

1-12           (a)  If the competitive sealed bidding requirement applies to

1-13     the contract, the contract must be awarded to the lowest

1-14     responsible bidder.  The governing body may reject any and all

1-15     bids.  A bid that has been opened may not be changed for the

1-16     purpose of correcting an error in the bid price.  This chapter does

1-17     not change the common law right of a bidder to withdraw a bid due

1-18     to a material mistake in the bid.

1-19                            A BILL TO BE ENTITLED

1-20                                   AN ACT

1-21     relating to uniform competitive bidding requirements for

1-22     municipalities.

1-23           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-24           SECTION 1.  Section 271.021(2), Local Government Code, is

1-25     amended to read as follows:

1-26                 (2)  "Governmental entity" means:

1-27                       (A)  a county;

1-28                       (B)  [a municipality;]

1-29                       [(C)]  a common or independent school district;

1-30                       (C) [(D)]  a hospital district or authority;

1-31                       (D) [(E)]  a housing authority;  or

1-32                       (E) [(F)]  an agency or instrumentality of the

1-33     governmental entities described by Paragraphs (A) through (D)

1-34     [(E)].

1-35           SECTION 2.  Section 271.023, Local Government Code, is

1-36     repealed.

1-37           SECTION 3.  Section 252.022(a), Local Government Code, is

1-38     amended to read as follows:

1-39           (a)  This chapter does not apply to an expenditure for:

1-40                 (1)  a procurement made because of a public calamity

1-41     that requires the immediate appropriation of money to relieve the

1-42     necessity of the municipality's residents or to preserve the

1-43     property of the municipality;

1-44                 (2)  a procurement necessary to preserve or protect the

1-45     public health or safety of the municipality's residents;

1-46                 (3)  a procurement necessary because of unforeseen

1-47     damage to public machinery, equipment, or other property;

1-48                 (4)  a procurement for personal, professional, or

1-49     planning services;

1-50                 (5)  a procurement for work that is performed and paid

1-51     for by the day as the work progresses;

1-52                 (6)  a purchase of land or a right-of-way;

1-53                 (7)  a procurement of items that are available from

1-54     only one source, including:

1-55                       (A)  items that are available from only one

1-56     source because of patents, copyrights, secret processes, or natural

1-57     monopolies;

1-58                       (B)  films, manuscripts, or books;

1-59                       (C)  electricity, gas, water, and other utility

1-60     services;

1-61                       (D)  captive replacement parts or components for

1-62     equipment;

1-63                       (E)  books, papers, and other library materials

1-64     for a public library that are available only from the persons

 2-1     holding exclusive distribution rights to the materials; and

 2-2                       (F)  management services provided by a nonprofit

 2-3     organization to a municipal museum, park, zoo, or other facility to

 2-4     which the organization has provided significant financial or other

 2-5     benefits;

 2-6                 (8)  a purchase of rare books, papers, and other

 2-7     library materials for a public library;

 2-8                 (9)  paving drainage, street widening, and other public

 2-9     improvements, or related matters, if at least one-third of the cost

2-10     is to be paid by or through special assessments levied on property

2-11     that will benefit from the improvements;

2-12                 (10)  a public improvement project, already in

2-13     progress, authorized by the voters of the municipality, for which

2-14     there is a deficiency of funds for completing the project in

2-15     accordance with the plans and purposes authorized by the voters;

2-16                 (11)  a payment under a contract by which a developer

2-17     participates in the construction of a public improvement as

2-18     provided by Subchapter C, Chapter 212;

2-19                 (12)  personal property sold:

2-20                       (A)  at an auction by a state licensed

2-21     auctioneer;

2-22                       (B)  at a going out of business sale held in

2-23     compliance with Subchapter F, Chapter 17, Business & Commerce Code;

2-24                       (C)  by a political subdivision of this state, a

2-25     state agency of this state, or an entity of the federal government;

2-26     or

2-27                       (D)  under an interlocal contract for cooperative

2-28     purchasing administered by a regional planning commission

2-29     established under Chapter 391; or

2-30                 (13)  services performed by blind or severely disabled

2-31     persons.

2-32           SECTION 4.  This Act takes effect September 1, 1997, and

2-33     applies only to a contract for which a municipality first solicits

2-34     bids or proposals on or after that date.

2-35           SECTION 5.  The importance of this legislation and the

2-36     crowded condition of the calendars in both houses create an

2-37     emergency and an imperative public necessity that the

2-38     constitutional rule requiring bills to be read on three several

2-39     days in each house be suspended, and this rule is hereby suspended.

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