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