1-1                                   AN ACT
 1-2     relating to the consideration of the location of a bidder's
 1-3     principal place of business in the award of contracts by certain
 1-4     local governments.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Subchapter Z, Chapter 271, Local Government Code,
 1-7     is amended by adding Section 271.905 to read as follows:
 1-8           Sec. 271.905.  CONSIDERATION OF LOCATION OF BIDDER'S
 1-9     PRINCIPAL PLACE OF BUSINESS.  (a)  In this section, "local
1-10     government" means a municipality with a population of 100,000 or
1-11     less, a county with a population of 300,000 or less, or another
1-12     political subdivision authorized under this title to purchase real
1-13     property or personal property that is not affixed to real property.
1-14     The term does not include a school district.
1-15           (b)  In purchasing under this title any real property or
1-16     personal property that is not affixed to real property, if a local
1-17     government receives one or more bids from a bidder whose principal
1-18     place of business is in the local government and whose bid is
1-19     within three percent of the lowest bid price received by the local
1-20     government from a bidder who is not a resident of the local
1-21     government, the local government may enter into a contract with:
1-22                 (1)  the lowest bidder; or
1-23                 (2)  the bidder whose principal place of business is in
1-24     the local government if the governing body of the local government
 2-1     determines, in writing, that the local bidder offers the local
 2-2     government the best combination of contract price and additional
 2-3     economic development opportunities for the local government created
 2-4     by the contract award, including the employment of residents of the
 2-5     local government and increased tax revenues to the local
 2-6     government.
 2-7           (c)  This section does not prohibit a local government from
 2-8     rejecting all bids.
 2-9           SECTION 2.  This Act applies only to a contract that is
2-10     awarded on or after the effective date of this Act.
2-11           SECTION 3.  The importance of this legislation and the
2-12     crowded condition of the calendars in both houses create an
2-13     emergency and an imperative public necessity that the
2-14     constitutional rule requiring bills to be read on three several
2-15     days in each house be suspended, and this rule is hereby suspended,
2-16     and that this Act take effect and be in force from and after its
2-17     passage, and it is so enacted.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2787 was passed by the House on May
         8, 1999, by the following vote:  Yeas 143, Nays 0, 2 present, not
         voting; and that the House concurred in Senate amendments to H.B.
         No. 2787 on May 26, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2787 was passed by the Senate, with
         amendments, on May 24, 1999, by the following vote:  Yeas 30, Nays
         0.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor