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.