By Turner of Harris H.B. No. 3042 75R7938 PAM-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to exempting governmental entities from competitive 1-3 bidding requirements when governmental entities participate in 1-4 cooperative purchasing. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Section 271.102, Local Government Code, is 1-7 amended by adding Subsection (d) to read as follows: 1-8 (d) To increase the efficiency and effectiveness of local 1-9 governments by taking advantage of volume purchasing, a local 1-10 government is exempt from state law requiring local governments to 1-11 seek competitive bids for the purchase of goods or services if the 1-12 local government procures goods and services under a contract 1-13 established by a nonprofit organization that functions as a local 1-14 cooperative organization that makes purchases for local governments 1-15 and serves as an educational resource for local governments on 1-16 procurement and development of technology. 1-17 SECTION 2. Chapter 2252, Government Code, is amended by 1-18 adding Subchapter D to read as follows: 1-19 SUBCHAPTER D. COOPERATIVE PURCHASING PROGRAM 1-20 Sec. 2252.081. DEFINITIONS. In this subchapter: 1-21 (1) "Cooperative organization" means an organization 1-22 of governmental entities established to provide governmental 1-23 entities access to contracts with vendors for the purchase of 1-24 materials, supplies, services, or equipment. 2-1 (2) "Governmental entity" means a state agency or a 2-2 political subdivision of the state. 2-3 Sec. 2252.082. COOPERATIVE PURCHASING PROGRAM PARTICIPATION. 2-4 (a) A governmental entity may participate in a cooperative 2-5 purchasing program with another governmental entity or a 2-6 cooperative organization. 2-7 (b) A governmental entity that is participating in a 2-8 cooperative purchasing program may sign an agreement with another 2-9 participating governmental entity or a cooperative organization 2-10 stating that the signing governmental entity will: 2-11 (1) designate a person to act under the direction of, 2-12 and on behalf of, that governmental entity in all matters relating 2-13 to the program; 2-14 (2) make payments to another participating 2-15 governmental entity or a cooperative organization or directly to a 2-16 vendor under a contract made under this section, as provided in the 2-17 agreement between the participating governmental entities or 2-18 between a governmental entity and a cooperative organization; and 2-19 (3) be responsible for a vendor's compliance with 2-20 provisions relating to the quality of items and terms of delivery, 2-21 to the extent provided in the agreement between the participating 2-22 governmental entities or between a governmental entity and a 2-23 cooperative organization. 2-24 Sec. 2252.083. EXEMPTION FROM COMPETITIVE BIDDING 2-25 REQUIREMENTS. To increase the efficiency and effectiveness 2-26 of_governmental entities by taking advantage of volume purchasing, 2-27 a governmental entity is exempt from state law requiring 3-1 governmental entities to seek competitive bids for the purchase of 3-2 goods or services if the governmental entity procures goods and 3-3 services under a contract established by a nonprofit organization 3-4 that functions as a cooperative organization that makes purchases 3-5 for governmental entities and serves as an educational resource for 3-6 governmental entities on procurement and development of technology. 3-7 SECTION 3. The importance of this legislation and the 3-8 crowded condition of the calendars in both houses create an 3-9 emergency and an imperative public necessity that the 3-10 constitutional rule requiring bills to be read on three several 3-11 days in each house be suspended, and this rule is hereby suspended. 3-12 COMMITTEE AMENDMENT NO. 1 3-13 Amend H.B. 3042 as follows: 3-14 On page 1, strike lines 8 through 16, and replace with the 3-15 following, and renumber the subsequent sections accordingly: 3-16 (d) A local government satisfies any state law requiring the 3-17 local government to seek competitive bids, when the local 3-18 government is only procuring automation (computers) or 3-19 telecommunication systems, including hardware, software, 3-20 programming, maintenance, repair, and installation associated with 3-21 these systems, if the local government procures such automation or 3-22 telecommunication systems under a contract established by a 3-23 nonprofit organization with a certificate of authority to do 3-24 business in the State of Texas that functions as a local 3-25 cooperative organization that makes purchases for local governments 3-26 and serves as an educational resource for local governments on 3-27 procurement and development of technology, provided that the 4-1 non-profit organization selects Qualified Information Systems 4-2 Vendors through a process that conforms with procedures outlined 4-3 within Chapter 2157 of the Government Code, or selects a 4-4 competitive bidding process that conforms with bidding procedures 4-5 outlined within Section 2155.264 and 2155.132(c)(1). The 4-6 non-profit organization must be chartered to serve government and 4-7 its' policies and must be governed and controlled by elected and 4-8 appointed local government officials. 4-9 On page 1, line 19 through page 3, line 6, strike SECTION 2 4-10 in its entirety and insert a new SECTION 2, to read as follows: 4-11 SECTION 2. Add new Section 2157.068, Acquisition Through 4-12 Texas Non-Profit Organizations, of Government Code. 4-13 (d) A state agency may procure automation (computers) or 4-14 telecommunication systems, including hardware, software, 4-15 programming, maintenance, repair, and installation associated with 4-16 these systems under a contract established by a nonprofit 4-17 organization with a certificate of authority to do business in the 4-18 State of Texas that functions as a local cooperative organization 4-19 that makes purchases for local governments and serves as an 4-20 educational resource for local governments on procurement and 4-21 development of technology, provided that the non-profit 4-22 organization selects Qualified Information Systems Vendors through 4-23 a process that conforms with procedures outlined within Chapter 4-24 2157 of the Government Code or selects a competitive bidding 4-25 process that conforms with bidding procedures outlined within 4-26 Section 2155.264 and 2155.132(c)(1). The non-profit organization 4-27 must be chartered to serve government and its' policies and must be 5-1 governed and controlled by elected and appointed local government 5-2 officials. 5-3 Turner of Harris