By Solomons                                            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.