1-1     By:  Solomons, Callegari, et al.                       H.B. No. 197
 1-2          (Senate Sponsor - Shapiro)
 1-3           (In the Senate - Received from the House April 2, 2001;
 1-4     April 3, 2001, read first time and referred to Committee on
 1-5     Intergovernmental Relations; April 25, 2001, reported favorably by
 1-6     the following vote:  Yeas 6, Nays 0; April 25, 2001, sent to
 1-7     printer.)
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the threshold contract amount at which certain
1-11     political subdivisions are required to engage in a competitive
1-12     purchasing procedure.
1-14           SECTION 1. Section 252.021(a), Local Government Code, is
1-15     amended to read as follows:
1-16           (a)  Before a municipality may enter into a contract that
1-17     requires an expenditure of more than $25,000 [$15,000] from one or
1-18     more municipal funds, the municipality must comply with the
1-19     procedure prescribed by this chapter for competitive sealed bidding
1-20     or competitive sealed proposals.
1-21           SECTION 2. Section 252.0215, Local Government Code, is
1-22     amended to read as follows:
1-23           Sec. 252.0215.  COMPETITIVE BIDDING IN RELATION TO
1-24     HISTORICALLY UNDERUTILIZED BUSINESS.  A municipality, in making an
1-25     expenditure of more than $3,000 but less than $25,000 [$15,000],
1-26     shall contact at least two historically underutilized businesses on
1-27     a rotating basis, based on information provided by the General
1-28     Services Commission pursuant to Chapter 2161, Government Code.  If
1-29     the list fails to identify a historically underutilized business in
1-30     the county in which the municipality is situated, the municipality
1-31     is exempt from this section.
1-32           SECTION 3.  Sections 252.312(b) and (c), Transportation Code,
1-33     are amended to read as follows:
1-34           (b)  If the county road engineer so recommends and the
1-35     commissioners court considers it to be in the best interest of the
1-36     county, a purchase in an amount of $25,000 [$15,000] or less may be
1-37     made through negotiation by the commissioners court or the court's
1-38     authorized representative on requisition to be approved by the
1-39     commissioners court or the county auditor without advertising for
1-40     competitive bids.
1-41           (c)  A purchase may not be divided or reduced to avoid the
1-42     competitive bidding requirement on a purchase that would otherwise
1-43     cost more than $25,000 [$15,000].
1-44           SECTION 4. Section 262.003(a), Local Government Code, is
1-45     amended to read as follows:
1-46           (a)  Any law that requires a county to follow a competitive
1-47     bidding procedure in making a purchase requiring the expenditure of
1-48     $25,000 [$15,000] or less does not apply to the purchase of an item
1-49     available for purchase from only one supplier.
1-50           SECTION 5. Section 271.024, Local Government Code, is amended
1-51     to read as follows:
1-52           Sec. 271.024.  Competitive Bidding Procedure Applicable to
1-53     Contract. If a governmental entity is required by statute to award
1-54     a contract for the construction, repair, or renovation of a
1-55     structure, road, highway, or other improvement or addition to real
1-56     property on the basis of competitive bids, and if the contract
1-57     requires the expenditure of more than $25,000 [$15,000] from the
1-58     funds of the entity, the bidding on the contract must be
1-59     accomplished in the manner provided by this subchapter.
1-60           SECTION 6. Section 363.156(b), Local Government Code, is
1-61     amended to read as follows:
1-62           (b)  To the extent competitive bidding procedures in Title 8
1-63     apply, the board may not enter purchasing contracts that involve
1-64     spending more than $25,000 [$15,000] unless the board complies
 2-1     with:
 2-2                 (1)  Subchapter C, Chapter 262, if the district was
 2-3     created by a county; or
 2-4                 (2)  Chapter 252, if the district was created by a
 2-5     municipality.
 2-6           SECTION 7. This Act takes effect September 1, 2001.
 2-7                                  * * * * *