By Solomons, Callegari, et al.                         H.B. No. 197
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the threshold contract amount at which certain
 1-3     political subdivisions are required to engage in a competitive
 1-4     purchasing procedure.
 1-6           SECTION 1. Section 252.021(a), Local Government Code, is
 1-7     amended to read as follows:
 1-8           (a)  Before a municipality may enter into a contract that
 1-9     requires an expenditure of more than $25,000 [$15,000] from one or
1-10     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           SECTION 2. Section 252.0215, Local Government Code, is
1-14     amended to read as follows:
1-15           Sec. 252.0215.  COMPETITIVE BIDDING IN RELATION TO
1-16     HISTORICALLY UNDERUTILIZED BUSINESS.  A municipality, in making an
1-17     expenditure of more than $3,000 but less than $25,000 [$15,000],
1-18     shall contact at least two historically underutilized businesses on
1-19     a rotating basis, based on information provided by the General
1-20     Services Commission pursuant to Chapter 2161, Government Code.  If
1-21     the list fails to identify a historically underutilized business in
1-22     the county in which the municipality is situated, the municipality
1-23     is exempt from this section.
1-24           SECTION 3.  Sections 252.312(b) and (c), Transportation Code,
 2-1     are amended to read as follows:
 2-2           (b)  If the county road engineer so recommends and the
 2-3     commissioners court considers it to be in the best interest of the
 2-4     county, a purchase in an amount of $25,000 [$15,000] or less may be
 2-5     made through negotiation by the commissioners court or the court's
 2-6     authorized representative on requisition to be approved by the
 2-7     commissioners court or the county auditor without advertising for
 2-8     competitive bids.
 2-9           (c)  A purchase may not be divided or reduced to avoid the
2-10     competitive bidding requirement on a purchase that would otherwise
2-11     cost more than $25,000 [$15,000].
2-12           SECTION 4. Section 262.003(a), Local Government Code, is
2-13     amended to read as follows:
2-14           (a)  Any law that requires a county to follow a competitive
2-15     bidding procedure in making a purchase requiring the expenditure of
2-16     $25,000 [$15,000] or less does not apply to the purchase of an item
2-17     available for purchase from only one supplier.
2-18           SECTION 5. Section 271.024, Local Government Code, is amended
2-19     to read as follows:
2-20           Sec. 271.024.  Competitive Bidding Procedure Applicable to
2-21     Contract. If a governmental entity is required by statute to award
2-22     a contract for the construction, repair, or renovation of a
2-23     structure, road, highway, or other improvement or addition to real
2-24     property on the basis of competitive bids, and if the contract
2-25     requires the expenditure of more than $25,000 [$15,000] from the
2-26     funds of the entity, the bidding on the contract must be
2-27     accomplished in the manner provided by this subchapter.
 3-1           SECTION 6. Section 363.156(b), Local Government Code, is
 3-2     amended to read as follows:
 3-3           (b)  To the extent competitive bidding procedures in Title 8
 3-4     apply, the board may not enter purchasing contracts that involve
 3-5     spending more than $25,000 [$15,000] unless the board complies
 3-6     with:
 3-7                 (1)  Subchapter C, Chapter 262, if the district was
 3-8     created by a county; or
 3-9                 (2)  Chapter 252, if the district was created by a
3-10     municipality.
3-11           SECTION 7. This Act takes effect September 1, 2001.