By Eiland                                             H.B. No. 2787
         76R8657 CAG-D                           
                                A BILL TO BE ENTITLED
 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, county, or other political
1-11     subdivision authorized to purchase property under this title.
1-12           (b)  If a local government receives one or more bids from a
1-13     bidder whose principal place of business is in the local government
1-14     and whose bid is within three percent of the lowest bid price
1-15     received by the local government from a bidder who is not a
1-16     resident of the local government, the local government may enter
1-17     into a contract with:
1-18                 (1)  the lowest bidder; or
1-19                 (2)  the bidder whose principal place of business is in
1-20     the local government if the governing body of the local government
1-21     determines, in writing, that the local bidder offers the local
1-22     government the best combination of contract price and additional
1-23     economic development opportunities for the local government created
1-24     by the contract award, including the employment of residents of the
 2-1     local government and increased tax revenues to the local
 2-2     government.
 2-3           (c)  This section does not prohibit a local government from
 2-4     rejecting all bids.
 2-5           SECTION 2.  This Act applies only to a contract that is
 2-6     awarded on or after the effective date of this Act.
 2-7           SECTION 3.  The importance of this legislation and the
 2-8     crowded condition of the calendars in both houses create an
 2-9     emergency and an imperative public necessity that the
2-10     constitutional rule requiring bills to be read on three several
2-11     days in each house be suspended, and this rule is hereby suspended,
2-12     and that this Act take effect and be in force from and after its
2-13     passage, and it is so enacted.