By Duncan                                              S.B. No. 507
         76R6147 DRH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to purchases by municipalities through a competitive
 1-3     procedure.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 252.021, Local Government Code, is
 1-6     amended to read as follows:
 1-7           Sec. 252.021.  COMPETITIVE BIDDING AND COMPETITIVE PROPOSAL
 1-8     REQUIREMENTS.  (a)  Before a municipality may enter into a contract
 1-9     that requires an expenditure of more than $5,000 [$15,000] from one
1-10     or more municipal funds, the municipality must comply with the
1-11     procedure prescribed by this chapter for competitive sealed bidding
1-12     or competitive sealed proposals.
1-13           (b)  [Before a municipality with a population of less than
1-14     100,000 may enter into a contract for insurance that requires an
1-15     expenditure of more than $5,000 from one or more municipal funds,
1-16     the municipality must comply with the procedure prescribed by this
1-17     chapter for competitive sealed bidding.]
1-18           [(c)]  A municipality may use the competitive sealed proposal
1-19     procedure only for high technology procurements or[, in a
1-20     municipality with a population in excess of 100,000,] the purchase
1-21     of insurance.
1-22           (c) [(d)]  This chapter does not apply to the expenditure of
1-23     municipal funds that are derived from an appropriation, loan, or
1-24     grant received  by a municipality from the federal or state
 2-1     government for conducting a community development program
 2-2     established under Chapter 373 if under the program items are
 2-3     purchased under the request-for-proposal process described by
 2-4     Section 252.042.  A municipality using a request-for-proposal
 2-5     process under this subsection shall also comply with the
 2-6     requirements of Section 252.0215.
 2-7           SECTION 2.  This Act takes effect September 1, 1999, and
 2-8     applies only to a contract made on or after that date.
 2-9           SECTION 3.  The importance of this legislation and the
2-10     crowded condition of the calendars in both houses create an
2-11     emergency and an imperative public necessity that the
2-12     constitutional rule requiring bills to be read on three several
2-13     days in each house be suspended, and this rule is hereby suspended.