1-1     By:  Eiland, Gray (Senate Sponsor - Jackson)          H.B. No. 2787
 1-2           (In the Senate - Received from the House May 10, 1999;
 1-3     May 10, 1999, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 14, 1999, reported adversely, with
 1-5     favorable Committee Substitute by the following vote:  Yeas 4, Nays
 1-6     0; May 14, 1999, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 2787                   By:  Nixon
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the consideration of the location of a bidder's
1-11     principal place of business in the award of contracts by certain
1-12     local governments.
1-13           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14           SECTION 1.  Subchapter Z, Chapter 271, Local Government Code,
1-15     is amended by adding Section 271.905 to read as follows:
1-16           Sec. 271.905.  CONSIDERATION OF LOCATION OF BIDDER'S
1-17     PRINCIPAL PLACE OF BUSINESS.  (a)  In this section, "local
1-18     government" means a municipality with a population of 100,000 or
1-19     less, a county with a population of 300,000 or less, or another
1-20     political subdivision authorized under this title to purchase real
1-21     property or personal property that is not affixed to real property.
1-22     The term does not include a school district.
1-23           (b)  In purchasing under this title any real property or
1-24     personal property that is not affixed to real property, if a local
1-25     government receives one or more bids from a bidder whose principal
1-26     place of business is in the local government and whose bid is
1-27     within three percent of the lowest bid price received by the local
1-28     government from a bidder who is not a resident of the local
1-29     government, the local government may enter into a contract with:
1-30                 (1)  the lowest bidder; or
1-31                 (2)  the bidder whose principal place of business is in
1-32     the local government if the governing body of the local government
1-33     determines, in writing, that the local bidder offers the local
1-34     government the best combination of contract price and additional
1-35     economic development opportunities for the local government created
1-36     by the contract award, including the employment of residents of the
1-37     local government and increased tax revenues to the local
1-38     government.
1-39           (c)  This section does not prohibit a local government from
1-40     rejecting all bids.
1-41           SECTION 2.  This Act applies only to a contract that is
1-42     awarded on or after the effective date of this Act.
1-43           SECTION 3.  The importance of this legislation and the
1-44     crowded condition of the calendars in both houses create an
1-45     emergency and an imperative public necessity that the
1-46     constitutional rule requiring bills to be read on three several
1-47     days in each house be suspended, and this rule is hereby suspended,
1-48     and that this Act take effect and be in force from and after its
1-49     passage, and it is so enacted.
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