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. 2-17 * * * * *