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.