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.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
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.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 197 was passed by the House on March
29, 2001, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 197 was passed by the Senate on May
3, 2001, by the following vote: Yeas 30, Nays 0, 1 present, not
voting.
_______________________________
Secretary of the Senate
APPROVED: __________________________
Date
__________________________
Governor