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. 1-50 * * * * *