1-1                                   AN ACT

 1-2     relating to competitive bidding in connection with certain

 1-3     contracts made by counties.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 262.023(b), Local Government Code, is

 1-6     amended to read as follows:

 1-7           (b)  The competitive bidding and competitive proposal

 1-8     requirements established by Subsection (a) apply only to contracts

 1-9     for which payment will be made from current funds or bond funds or

1-10     through time warrants.  However, contracts for which payments will

1-11     be made through certificates of obligation are governed by The

1-12     Certificate of Obligation Act of 1971 (Subchapter C, Chapter 271).

1-13     Contracts for which payment will be made through anticipation notes

1-14     are subject to the competitive bidding provisions of The

1-15     Certificate of Obligation Act of 1971 (Subchapter C, Chapter 271)

1-16     in the same manner as certificates of obligation.

1-17           SECTION 2.  Section 262.024(a), Local Government Code, is

1-18     amended to read as follows:

1-19           (a)  A contract for the purchase of any of the following

1-20     items is exempt from the requirement established by Section 262.023

1-21     if the commissioners court by order grants the exemption:

1-22                 (1)  an item that must be purchased in a case of public

1-23     calamity if it is necessary to make the purchase promptly to

1-24     relieve the necessity of the citizens or to preserve the property

 2-1     of the county;

 2-2                 (2)  an item necessary to preserve or protect the

 2-3     public health or safety of the residents of the county;

 2-4                 (3)  an item necessary because of unforeseen damage to

 2-5     public property;

 2-6                 (4)  a personal or professional service;

 2-7                 (5)  any individual work performed and paid for by the

 2-8     day, as the work progresses, provided that no individual is

 2-9     compensated under this subsection for more than 20 working days in

2-10     any three month period;

2-11                 (6)  any land or right-of-way;

2-12                 (7)  an item that can be obtained from only one source,

2-13     including:

2-14                       (A)  items for which competition is precluded

2-15     because of the existence of patents, copyrights, secret processes,

2-16     or monopolies;

2-17                       (B)  films, manuscripts, or books;

2-18                       (C)  electric power, gas, water, and other

2-19     utility services; and

2-20                       (D)  captive replacement parts or components for

2-21     equipment;

2-22                 (8)  an item of food;

2-23                 (9)  personal property sold:

2-24                       (A)  at an auction by a state licensed

2-25     auctioneer;

2-26                       (B)  at a going out of business sale held in

2-27     compliance with Subchapter F, Chapter 17, Business & Commerce Code;

 3-1     or

 3-2                       (C)  by a political subdivision of this state, a

 3-3     state agency of this state, or an entity of the federal government;

 3-4     or

 3-5                 (10)  any work performed under a contract for community

 3-6     and economic development made by a county under Section 381.004.

 3-7           SECTION 3.  Section 6, Article 717w, Revised Statutes, is

 3-8     amended by adding Subsection (h) to read as follows:

 3-9           (h)  A county must comply with the competitive bidding

3-10     requirements of Subchapter C, Chapter 271, Local Government Code,

3-11     in connection with a contract to be paid from the proceeds of

3-12     anticipation notes issued for a purpose described by Section 3(1)

3-13     of this article.

3-14           SECTION 4.  This Act takes effect September 1, 1997.

3-15           SECTION 5.  Section 6(h), Article 717w, Revised Statutes, as

3-16     added by this Act, applies only to anticipation notes authorized by

3-17     an order adopted by the commissioners court of a county on or after

3-18     September 1, 1997.

3-19           SECTION 6.  The importance of this legislation and the

3-20     crowded condition of the calendars in both houses create an

3-21     emergency and an imperative public necessity that the

3-22     constitutional rule requiring bills to be read on three several

3-23     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 2179 was passed by the House on April

         25, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 2179 was passed by the Senate on May

         16, 1997, by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor