By Turner of Harris                                   H.B. No. 1757
         76R4859 SMJ-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to procurement by local governments and state agencies of
 1-3     certain automated systems through certain nonprofit organizations.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 271.102, Local Government Code, is
 1-6     amended by adding Subsection (d) to read as follows:
 1-7           (d)  A local government that procures an automated
 1-8     information or telecommunications system, including associated
 1-9     hardware, software, or programming, maintenance, repair, and
1-10     installation services, satisfies any state law requiring the local
1-11     government to seek competitive bids if:
1-12                 (1)  the local government procures the system under a
1-13     contract established by a nonprofit organization with a
1-14     certificate of authority to do business in this state; and
1-15                 (2)  the nonprofit organization:
1-16                       (A)  is chartered to serve governmental entities;
1-17                       (B)  is governed by elected and appointed local
1-18     government officials;
1-19                       (C)  functions as a local cooperative
1-20     organization that makes purchases for local governments and serves
1-21     as an educational resource for local governments on the procurement
1-22     and development of technology; and
1-23                       (D)  selects a qualified information systems
1-24     vendor as prescribed by Section 2157.062, Government Code, or uses
 2-1     a competitive bidding process that complies with Sections 2155.132
 2-2     and 2155.264, Government Code.
 2-3           SECTION 2.  Subchapter A, Chapter 2157, Government Code, is
 2-4     amended by adding Section 2157.006 to read as follows:
 2-5           Sec. 2157.006.  PURCHASES THROUGH NONPROFIT ORGANIZATIONS. A
 2-6     state agency may procure  an automated information or
 2-7     telecommunications system, including associated hardware, software,
 2-8     or programming, maintenance, repair, and installation services,
 2-9     under a contract established by a nonprofit organization if the
2-10     organization:
2-11                 (1)  has a certificate of authority to do business in
2-12     this state;
2-13                 (2)  is chartered to serve governmental entities;
2-14                 (3)  is governed by elected and appointed local
2-15     government officials;
2-16                 (4)  functions as a local cooperative organization that
2-17     makes purchases for local governments and serves as an  educational
2-18     resource for local governments on the procurement and development
2-19     of technology; and
2-20                 (5)  selects a qualified information systems vendor as
2-21     prescribed by Section 2157.062 or uses a competitive bidding
2-22     process that complies with Sections 2155.132 and 2155.264.
2-23           SECTION 3.  (a)  This Act takes effect September 1, 1999.
2-24           (b)  This Act applies only to a contract for the procurement
2-25     of an automated information or telecommunications system entered
2-26     into on or after the effective date of this Act.  A contract for
2-27     the procurement of an automated information or telecommunications
 3-1     system entered into before the effective date of this Act is
 3-2     governed by the law in effect immediately before the effective date
 3-3     of this Act, and that law is continued in effect for that purpose.
 3-4           SECTION 4.  The importance of this legislation and the
 3-5     crowded condition of the calendars in both houses create an
 3-6     emergency and an imperative public necessity that the
 3-7     constitutional rule requiring bills to be read on three several
 3-8     days in each house be suspended, and this rule is hereby suspended.