1-1     By:  Hodge (Senate Sponsor - Cain)                    H.B. No. 3543
 1-2           (In the Senate - Received from the House May 3, 1999;
 1-3     May 3, 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. 3543                   By:  Ellis
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to competitive bidding by mass transit authorities.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1.  Section 451.110(c), Transportation Code, is
1-13     amended to read as follows:
1-14           (c)  Subsection (a)  does not apply to a contract for:
1-15                 (1)  $25,000 or less [by an authority created before
1-16     1980 in which the principal municipality has a population of less
1-17     than 1.2 million;]
1-18                 [(2)  $15,000 or less by an authority not described by
1-19     Subdivision (1)];
1-20                 (2) [(3)]  the purchase of real property;
1-21                 (3) [(4)]  personal or professional services; or
1-22                 (4) [(5)]  the acquisition of an existing transit
1-23     system.
1-24           SECTION 2.  Section 451.111(a), Transportation Code, is
1-25     amended to read as follows:
1-26           (a)  Unless the posting requirement in Subsection (b) is
1-27     satisfied, a board may not let a contract that is:
1-28                 (1)  for more than[:]
1-29                       [(A)]  $25,000 [by an authority created before
1-30     1980 in which the principal municipality has a population of less
1-31     than 1.2 million; or]
1-32                       [(B)  $15,000 by an authority not described by
1-33     Paragraph (A)]; and
1-34                 (2)  for:
1-35                       (A)  the purchase of real property; or
1-36                       (B)  consulting or professional services.
1-37           SECTION 3.  Section 452.107(c), Transportation Code, is
1-38     amended to read as follows:
1-39           (c)  The executive committee may authorize the negotiation of
1-40     a contract without competitive sealed bids or proposals if:
1-41                 (1)  the aggregate amount involved in the contract is
1-42     $25,000 [$15,000] or less;
1-43                 (2)  the contract is for construction for which not
1-44     more than one bid or proposal is received;
1-45                 (3)  the contract is for services or property for which
1-46     there is only one source or for which it is otherwise impracticable
1-47     to obtain competition;
1-48                 (4)  the contract is to respond to an emergency for
1-49     which the public exigency does not permit the delay incident to the
1-50     competitive process;
1-51                 (5)  the contract is for personal or professional
1-52     services or services for which competitive bidding is precluded by
1-53     law; or
1-54                 (6)  the contract, without regard to form and which may
1-55     include bonds, notes, loan agreements, or other obligations, is for
1-56     the purpose of borrowing money or is a part of a transaction
1-57     relating to the borrowing of money, including:
1-58                       (A)  a credit support agreement, such as a line
1-59     or letter of credit or other debt guaranty;
1-60                       (B)  a bond, note, debt sale or purchase,
1-61     trustee, paying agent, remarketing agent, indexing agent, or
1-62     similar agreement;
1-63                       (C)  an agreement with a securities dealer,
1-64     broker, or underwriter; and
 2-1                       (D)  any other contract or agreement considered
 2-2     by the executive committee to be appropriate or necessary in
 2-3     support of the authority's financing activities.
 2-4           SECTION 4.  The importance of this legislation and the
 2-5     crowded condition of the calendars in both houses create an
 2-6     emergency and an imperative public necessity that the
 2-7     constitutional rule requiring bills to be read on three several
 2-8     days in each house be suspended, and this rule is hereby suspended,
 2-9     and that this Act take effect and be in force from and after its
2-10     passage, and it is so enacted.
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