By Lewis of Tarrant                                   H.B. No. 1892
         77R4946 PAM-F                           
                                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 and the criteria required to evaluate bidders
 1-5     in the competitive purchasing process.
 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-7           SECTION 1. Section 252.021(a), Local Government Code, is
 1-8     amended to read as follows:
 1-9           (a)  Before a municipality may enter into a contract that
1-10     requires an expenditure of more than $25,000 [$15,000] from one or
1-11     more municipal funds, the municipality must comply with the
1-12     procedure prescribed by this chapter for competitive sealed bidding
1-13     or competitive sealed proposals.
1-14           SECTION 2. Section 252.0215, Local Government Code, is
1-15     amended to read as follows:
1-16           Sec. 252.0215.  COMPETITIVE BIDDING IN RELATION TO
1-17     HISTORICALLY UNDERUTILIZED BUSINESS.  A municipality, in making an
1-18     expenditure of more than $3,000 but less than $25,000 [$15,000],
1-19     shall contact at least two historically underutilized businesses on
1-20     a rotating basis, based on information provided by the General
1-21     Services Commission pursuant to Chapter 2161, Government Code.  If
1-22     the list fails to identify a historically underutilized business in
1-23     the county in which the municipality is situated, the municipality
1-24     is exempt from this section.
 2-1           SECTION 3. Subchapter C, Chapter 43, Local Government Code,
 2-2     is amended by amending Section 252.043 and by redesignating Section
 2-3     252.043(b) as Section 252.0431 to read as follows:
 2-4           Sec. 252.043.  AWARD OF CONTRACT: COMPETITIVE SEALED BIDDING.
 2-5     (a)  If the competitive sealed bidding requirement applies to the
 2-6     contract, the contract must be awarded to the [lowest responsible]
 2-7     bidder who provides goods or services at the best value for the
 2-8     municipality.  In determining the best value for the municipality,
 2-9     the municipality may consider:
2-10                 (1)  the purchase price;
2-11                 (2)  the reputation of the bidder and of the bidder's
2-12     goods or services;
2-13                 (3)  the quality of the bidder's goods or services;
2-14                 (4)  the extent to which the goods or services meet the
2-15     municipality's needs;
2-16                 (5)  the bidder's past relationship with the
2-17     municipality;
2-18                 (6)  the impact on the ability of the municipality to
2-19     comply with laws and rules relating to historically underutilized
2-20     businesses;
2-21                 (7)  the total long-term cost to the municipality to
2-22     acquire the bidder's goods or services; and
2-23                 (8)  any other relevant factor that a private business
2-24     entity would consider in selecting a bidder.
2-25           (b)  The governing body may reject any and all bids.
2-26           (c)  A bid that has been opened may not be changed for the
2-27     purpose of correcting an error in the bid price.  This chapter does
 3-1     not change the common law right of a bidder to withdraw a bid due
 3-2     to a material mistake in the bid.
 3-3           Sec. 252.0431.  AWARD OF CONTRACT: COMPETITIVE SEALED
 3-4     PROPOSALS. [(b)]  If the competitive sealed proposals requirement
 3-5     applies to the contract, the contract must be awarded to the
 3-6     responsible offeror whose proposal is determined to be the most
 3-7     advantageous to the municipality considering the relative
 3-8     importance of price and the other evaluation factors included in
 3-9     the request for proposals.
3-10           SECTION 4. Section 252.0435, Local Government Code, is
3-11     amended to read as follows:
3-12           Sec. 252.0435.  SAFETY RECORD OF BIDDER CONSIDERED. In
3-13     determining which bidder provides goods or services at the best
3-14     value for the municipality [who is a responsible bidder], the
3-15     governing body may take into account the safety record of the
3-16     bidder, of the firm, corporation, partnership, or institution
3-17     represented by the bidder, or of anyone acting for such a firm,
3-18     corporation, partnership, or institution if:
3-19                 (1)  the governing body has adopted a written
3-20     definition and criteria for accurately determining the safety
3-21     record of a bidder;
3-22                 (2)  the governing body has given notice to prospective
3-23     bidders in the bid specifications that the safety record of a
3-24     bidder may be considered in determining the best value for the
3-25     municipality [the responsibility of the bidder]; and
3-26                 (3)  the determinations are not arbitrary and
3-27     capricious.
 4-1           SECTION 5. Section 363.156(b), Local Government Code, is
 4-2     amended to read as follows:
 4-3           (b)  To the extent competitive bidding procedures in Title 8
 4-4     apply, the board may not enter purchasing contracts that involve
 4-5     spending more than $25,000 [$15,000] unless the board complies
 4-6     with:
 4-7                 (1)  Subchapter C, Chapter 262, if the district was
 4-8     created by a county; or
 4-9                 (2)  Chapter 252, if the district was created by a
4-10     municipality.
4-11           SECTION 6. This Act takes effect September 1, 2001.