By Kuempel                                            H.B. No. 2122
         76R5680 MXM-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to competitive bid requirements for certain emergency
 1-3     services districts.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 776.074, Health and Safety Code, is
 1-6     amended to read as follows:
 1-7           Sec. 776.074.  COMPETITIVE BIDS [REQUIREMENT].  (a)  Except
 1-8     as provided by Subsection (i), the [The] board must submit to
 1-9     competitive bids an expenditure of more than $25,000 [$15,000] for
1-10     [the purchase or lease of]:
1-11                 (1)  one item or service; or
1-12                 (2)  more than one of the same or a similar type of
1-13     items or services in a fiscal year.
1-14           (b)  The board shall request bids on items to be purchased or
1-15     leased or services to be performed as provided by this subsection.
1-16     The board shall notify suppliers, vendors, or providers by
1-17     advertising for bids or by providing at least three suppliers,
1-18     vendors, or purchasers with written notice by mail of the intended
1-19     purchase.  If the board decides to advertise for bids, the
1-20     advertisement must be published in accordance with Section
1-21     262.025(a), Local Government Code.  If the board receives fewer
1-22     than three bids in response to the advertisement, the board shall
1-23     give written notice directly to at least three suppliers, vendors,
1-24     or providers of the intended purchase.  If three suppliers,
 2-1     vendors, or providers are not available or known to the board, the
 2-2     board shall give written notice by mail directly to each supplier,
 2-3     vendor, or provider known to the board [notify at least 10
 2-4     suppliers, vendors, or providers of the item or service required
 2-5     and inform them of bidding procedure.  If at least 10 suppliers,
 2-6     vendors, or providers are not available or known to the board, the
 2-7     board may give notice to fewer than 10 suppliers, vendors, or
 2-8     providers].
 2-9           (c)  The advertisement or notice for competitive bidding
2-10     must:
2-11                 (1)  describe the work [service] to be performed or the
2-12     item to be purchased or leased;
2-13                 (2)  state the location at which the bidding documents,
2-14     plans, specifications, or other data may be examined; and
2-15                 (3)  state the time and place for submitting bids and
2-16     the time and place that bids will be opened.
2-17           (d)  The board may not prepare restrictive bid
2-18     specifications.
2-19           (e)  Bids may be opened only by the board at a public meeting
2-20     or by a district officer or employee at a district office.
2-21           (f) [(e)]  The board may reject any bid [and all bids].  [The
2-22     board shall award a contract to the lowest responsible bidder.]
2-23     The board may not award a contract to a bidder who is not the
2-24     lowest bidder unless, before the bid is awarded, the lowest bidder
2-25     is given notice of the proposed award and an opportunity to appear
2-26     before the board or its designated representative and present
2-27     evidence concerning the bidder's responsibility.
 3-1           (g) [(f)]  A contract awarded in violation of this section is
 3-2     void.
 3-3           (h) [(g)]  This section applies to an expenditure of district
 3-4     tax revenues by any party [person] or entity[, including a
 3-5     volunteer fire department,] for the purchase of services, vehicles,
 3-6     equipment, or goods.
 3-7           (i) [(h)]  This section does not apply to:
 3-8                 (1)  [to] the purchase or lease of real property;
 3-9                 (2)  [to] an item or service that the board determines
3-10     can be obtained from only one source; [or]
3-11                 (3)  a contract for fire extinguishment and suppression
3-12     services, emergency rescue services, or ambulance services; or
3-13                 (4)  [to] an emergency expenditure.
3-14           (j)  Subsection (i) does not prohibit the board from
3-15     soliciting competitive bids for any item, service, or contract
3-16     listed in Subsection (i).
3-17           (k)  A contract for a public works project must be
3-18     administered in accordance with Subchapter B, Chapter 271, Local
3-19     Government Code, except as provided by this section.
3-20           SECTION 2.  (a)  The changes in law made by this Act apply
3-21     only to a request for competitive bids made by a board of emergency
3-22     commissioners on or after the effective date of this Act.
3-23           (b)  A request for competitive bids by a board made before
3-24     the effective date of this Act is covered by the law in effect when
3-25     the board submitted the request for competitive bids, and the
3-26     former law is continued in effect for that purpose.
3-27           SECTION 3.  This Act takes effect September 1, 1999.
 4-1           SECTION 4.  The importance of this legislation and the
 4-2     crowded condition of the calendars in both houses create an
 4-3     emergency and an imperative public necessity that the
 4-4     constitutional rule requiring bills to be read on three several
 4-5     days in each house be suspended, and this rule is hereby suspended.