1-1     By:  Lewis of Orange (Senate Sponsor - Galloway)      H.B. No. 2179

 1-2           (In the Senate - Received from the House April 27, 1997;

 1-3     April 29, 1997, read first time and referred to Committee on

 1-4     Intergovernmental Relations; May 8, 1997, reported favorably by the

 1-5     following vote:  Yeas 10, Nays 0; May 8, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to competitive bidding in connection with certain

 1-9     contracts made by counties.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Section 262.023(b), Local Government Code, is

1-12     amended to read as follows:

1-13           (b)  The competitive bidding and competitive proposal

1-14     requirements established by Subsection (a) apply only to contracts

1-15     for which payment will be made from current funds or bond funds or

1-16     through time warrants.  However, contracts for which payments will

1-17     be made through certificates of obligation are governed by The

1-18     Certificate of Obligation Act of 1971 (Subchapter C, Chapter 271).

1-19     Contracts for which payment will be made through anticipation notes

1-20     are subject to the competitive bidding provisions of The

1-21     Certificate of Obligation Act of 1971 (Subchapter C, Chapter 271)

1-22     in the same manner as certificates of obligation.

1-23           SECTION 2.  Section 262.024(a), Local Government Code, is

1-24     amended to read as follows:

1-25           (a)  A contract for the purchase of any of the following

1-26     items is exempt from the requirement established by Section 262.023

1-27     if the commissioners court by order grants the exemption:

1-28                 (1)  an item that must be purchased in a case of public

1-29     calamity if it is necessary to make the purchase promptly to

1-30     relieve the necessity of the citizens or to preserve the property

1-31     of the county;

1-32                 (2)  an item necessary to preserve or protect the

1-33     public health or safety of the residents of the county;

1-34                 (3)  an item necessary because of unforeseen damage to

1-35     public property;

1-36                 (4)  a personal or professional service;

1-37                 (5)  any individual work performed and paid for by the

1-38     day, as the work progresses, provided that no individual is

1-39     compensated under this subsection for more than 20 working days in

1-40     any three month period;

1-41                 (6)  any land or right-of-way;

1-42                 (7)  an item that can be obtained from only one source,

1-43     including:

1-44                       (A)  items for which competition is precluded

1-45     because of the existence of patents, copyrights, secret processes,

1-46     or monopolies;

1-47                       (B)  films, manuscripts, or books;

1-48                       (C)  electric power, gas, water, and other

1-49     utility services; and

1-50                       (D)  captive replacement parts or components for

1-51     equipment;

1-52                 (8)  an item of food;

1-53                 (9)  personal property sold:

1-54                       (A)  at an auction by a state licensed

1-55     auctioneer;

1-56                       (B)  at a going out of business sale held in

1-57     compliance with Subchapter F, Chapter 17, Business & Commerce Code;

1-58     or

1-59                       (C)  by a political subdivision of this state, a

1-60     state agency of this state, or an entity of the federal government;

1-61     or

1-62                 (10)  any work performed under a contract for community

1-63     and economic development made by a county under Section 381.004.

1-64           SECTION 3.  Section 6, Article 717w, Revised Statutes, is

 2-1     amended by adding Subsection (h) to read as follows:

 2-2           (h)  A county must comply with the competitive bidding

 2-3     requirements of Subchapter C, Chapter 271, Local Government Code,

 2-4     in connection with a contract to be paid from the proceeds of

 2-5     anticipation notes issued for a purpose described by Section 3(1)

 2-6     of this article.

 2-7           SECTION 4.  This Act takes effect September 1, 1997.

 2-8           SECTION 5.  Section 6(h), Article 717w, Revised Statutes, as

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

2-10     an 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.

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