By Solomons, Callegari, et al.                         H.B. No. 197
         77R815 PAM-D                           
                                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. Section 363.156(b), Local Government Code, is
 2-1     amended to read as follows:
 2-2           (b)  To the extent competitive bidding procedures in Title 8
 2-3     apply, the board may not enter purchasing contracts that involve
 2-4     spending more than $25,000 [$15,000] unless the board complies
 2-5     with:
 2-6                 (1)  Subchapter C, Chapter 262, if the district was
 2-7     created by a county; or
 2-8                 (2)  Chapter 252, if the district was created by a
 2-9     municipality.
2-10           SECTION 4. This Act takes effect September 1, 2001.
2-11                          COMMITTEE AMENDMENT NO. 1
2-12           House Bill 197 is amended to read as follows:
2-13           (1)  Add the following appropriately numbered section to read
2-14     as follows:
2-15           SECTION ____. Section 271.024, Local Government Code, is
2-16     amended to read as follows:
2-17           Sec. 271.024.  Competitive Bidding Procedure Applicable to
2-18     Contract. If a governmental entity is required by statute to award
2-19     a contract for the construction, repair, or renovation of a
2-20     structure, road, highway, or other improvement or addition to real
2-21     property on the basis of competitive bids, and if the contract
2-22     requires the expenditure of more than $25,000 [15,000] from the
2-23     funds of the entity, the bidding on the contract must be
2-24     accomplished in the manner provided by this subchapter.
2-25           (2)  Add the following appropriately numbered section to read
2-26     as follows:
2-27           SECTION ____. SECTION 262.003(a), Local Government Code, is
 3-1     amended to read as follows:
 3-2           Section 262.003.  Small, Sole-Source Purchase Exempt From
 3-3     Competitive Bidding. (a)  Any law that requires a county to follow
 3-4     a competitive bidding procedure in making a purchase requiring the
 3-5     expenditure of $25,000 [$15,000] or less does not apply to the
 3-6     purchase of an item available for purchase from only one supplier.
 3-7           (3)  Renumber subsequent sections appropriately.
 3-8                                                                 Farabee