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