1-1     By:  Kuempel (Senate Sponsor - Wentworth)             H.B. No. 2122
 1-2           (In the Senate - Received from the House April 9, 1999;
 1-3     April 12, 1999, read first time and referred to Committee on
 1-4     Intergovernmental Relations; April 29, 1999, reported favorably by
 1-5     the following vote:  Yeas 4, Nays 0; April 29, 1999, sent to
 1-6     printer.)
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to competitive bid requirements for certain emergency
1-10     services districts.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1.  Section 776.074, Health and Safety Code, is
1-13     amended to read as follows:
1-14           Sec. 776.074.  COMPETITIVE BIDS [REQUIREMENT].  (a)  Except
1-15     as provided by Subsection (i), the [The] board must submit to
1-16     competitive bids an expenditure of more than $25,000 [$15,000] for
1-17     [the purchase or lease of]:
1-18                 (1)  one item or service; or
1-19                 (2)  more than one of the same or a similar type of
1-20     items or services in a fiscal year.
1-21           (b)  The board shall request bids on items to be purchased or
1-22     leased or services to be performed as provided by this subsection.
1-23     The board shall notify suppliers, vendors, or providers by
1-24     advertising for bids or by providing at least three suppliers,
1-25     vendors, or purchasers with written notice by mail of the intended
1-26     purchase.  If the board decides to advertise for bids, the
1-27     advertisement must be published in accordance with Section
1-28     262.025(a), Local Government Code.  If the board receives fewer
1-29     than three bids in response to the advertisement, the board shall
1-30     give written notice directly to at least three suppliers, vendors,
1-31     or providers of the intended purchase.  If three suppliers,
1-32     vendors, or providers are not available or known to the board, the
1-33     board shall give written notice by mail directly to each supplier,
1-34     vendor, or provider known to the board [notify at least 10
1-35     suppliers, vendors, or providers of the item or service required
1-36     and inform them of bidding procedure.  If at least 10 suppliers,
1-37     vendors, or providers are not available or known to the board, the
1-38     board may give notice to fewer than 10 suppliers, vendors, or
1-39     providers].
1-40           (c)  The advertisement or notice for competitive bidding
1-41     must:
1-42                 (1)  describe the work [service] to be performed or the
1-43     item to be purchased or leased;
1-44                 (2)  state the location at which the bidding documents,
1-45     plans, specifications, or other data may be examined; and
1-46                 (3)  state the time and place for submitting bids and
1-47     the time and place that bids will be opened.
1-48           (d)  The board may not prepare restrictive bid
1-49     specifications.
1-50           (e)  Bids may be opened only by the board at a public meeting
1-51     or by a district officer or employee at a district office.
1-52           (f) [(e)]  The board may reject any bid [and all bids].  [The
1-53     board shall award a contract to the lowest responsible bidder.]
1-54     The board may not award a contract to a bidder who is not the
1-55     lowest bidder unless, before the bid is awarded, the lowest bidder
1-56     is given notice of the proposed award and an opportunity to appear
1-57     before the board or its designated representative and present
1-58     evidence concerning the bidder's responsibility.
1-59           (g) [(f)]  A contract awarded in violation of this section is
1-60     void.
1-61           (h) [(g)]  This section applies to an expenditure of district
1-62     tax revenues by any party [person] or entity[, including a
1-63     volunteer fire department,] for the purchase of services, vehicles,
1-64     equipment, or goods.
 2-1           (i) [(h)]  This section does not apply to:
 2-2                 (1)  [to] the purchase or lease of real property;
 2-3                 (2)  [to] an item or service that the board determines
 2-4     can be obtained from only one source; [or]
 2-5                 (3)  a contract for fire extinguishment and suppression
 2-6     services, emergency rescue services, or ambulance services; or
 2-7                 (4)  [to] an emergency expenditure.
 2-8           (j)  Subsection (i) does not prohibit the board from
 2-9     soliciting competitive bids for any item, service, or contract
2-10     listed in Subsection (i).
2-11           (k)  A contract for a public works project must be
2-12     administered in accordance with Subchapter B, Chapter 271, Local
2-13     Government Code, except as provided by this section.
2-14           SECTION 2.  (a)  The changes in law made by this Act apply
2-15     only to a request for competitive bids made by a board of emergency
2-16     commissioners on or after the effective date of this Act.
2-17           (b)  A request for competitive bids by a board made before
2-18     the effective date of this Act is covered by the law in effect when
2-19     the board submitted the request for competitive bids, and the
2-20     former law is continued in effect for that purpose.
2-21           SECTION 3.  This Act takes effect September 1, 1999.
2-22           SECTION 4.  The importance of this legislation and the
2-23     crowded condition of the calendars in both houses create an
2-24     emergency and an imperative public necessity that the
2-25     constitutional rule requiring bills to be read on three several
2-26     days in each house be suspended, and this rule is hereby suspended.
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