By Lewis of Orange                              H.B. No. 2179

      75R8265 ESH-D                           

                                A BILL TO BE ENTITLED

 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, Local Government Code, is

1-18     amended by adding Subsection (e) to read as follows:

1-19           (e)  The exemption granted under Subsection (a)(5) applies

1-20     only to a county with a population of less than 100,000.

1-21           SECTION 3.  Section 6, Article 717w, Revised Statutes, is

1-22     amended by adding Subsection (h) to read as follows:

1-23           (h)  A county must comply with the competitive bidding

1-24     requirements of Subchapter C, Chapter 271, Local Government Code,

 2-1     in connection with a contract to be paid from the proceeds of

 2-2     anticipation notes issued for a purpose described by Section 3(1)

 2-3     of this article.

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

 2-5           SECTION 5.  (a)  Section 262.024(e), Local Government Code,

 2-6     as added by this Act, applies only to a contract entered into by a

 2-7     county on or after September 1, 1997.

 2-8           (b)  Section 6(h), Article 717w, Revised Statutes, as added

 2-9     by this Act, applies only to anticipation notes authorized by an

2-10     order adopted by the commissioners court of a county on or after

2-11     September 1, 1997.

2-12           SECTION 6.  The importance of this legislation and the

2-13     crowded condition of the calendars in both houses create an

2-14     emergency and an imperative public necessity that the

2-15     constitutional rule requiring bills to be read on three several

2-16     days in each house be suspended, and this rule is hereby suspended.