1-1                                   AN ACT
 1-2     relating to competitive purchasing procedures applying to certain
 1-3     purchases and contracts of governmental entities.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Subchapter C, Chapter 262, Local Government Code,
 1-6     is amended by adding Section 262.0225 to read as follows:
 1-7           Sec. 262.0225.  ADDITIONAL COMPETITIVE PROCEDURES. (a)  In
 1-8     the procedure for competitive bidding under this subchapter, the
 1-9     commissioners court of the county shall provide all bidders with
1-10     the opportunity to bid on the same items on equal terms and have
1-11     bids judged according to the same standards as set forth in the
1-12     specifications.
1-13           (b)  A county shall receive bids or proposals under this
1-14     subchapter in a fair and confidential manner.
1-15           (c)  A county may receive bids or proposals under this
1-16     subchapter in hard-copy format or through electronic transmission.
1-17     A county shall accept any bids or proposals submitted in hard-copy
1-18     format.
1-19           SECTION 2. Section 262.023(a), Local Government Code, is
1-20     amended to read as follows:
1-21           (a)  Before a county may purchase one or more items under a
1-22     contract that will require an expenditure exceeding $25,000, the
1-23     commissioners court of the county must comply with the competitive
1-24     bidding or competitive proposal procedures prescribed by this
 2-1     subchapter.  [All bids or proposals must be sealed.]
 2-2           SECTION 3. Subchapter C, Chapter 262, Local Government Code,
 2-3     is amended by adding Section 262.0235 to read as follows:
 2-4           Sec. 262.0235.  PROCEDURES ADOPTED BY COUNTY PURCHASING
 2-5     AGENTS FOR ELECTRONIC BIDS OR PROPOSALS. The county purchasing
 2-6     agent, before receiving electronic bids or proposals, shall adopt
 2-7     rules in conformance with Section 262.011(o) to ensure the
 2-8     identification, security, and confidentiality of electronic bids or
 2-9     proposals.
2-10           SECTION 4. Subchapter A, Chapter 271, Local Government Code,
2-11     is amended by adding Section 271.0065 to read as follows:
2-12           Sec. 271.0065.  ADDITIONAL COMPETITIVE PROCEDURES. (a)  In
2-13     any procedure for competitive bidding under this subchapter, the
2-14     governing body shall provide all bidders with the opportunity to
2-15     bid on the same items on equal terms and have bids judged according
2-16     to the same standards as set forth in the specifications.
2-17           (b)  A governmental agency shall receive bids or proposals
2-18     under this subchapter in a fair and confidential manner.
2-19           (c)  A governmental agency may receive bids or proposals
2-20     under this subchapter in hard-copy format or through electronic
2-21     transmission.  A governmental agency shall accept any bids or
2-22     proposals submitted in hard-copy format.
2-23           SECTION 5. Subchapter B, Chapter 271, Local Government Code,
2-24     is amended by adding Section 271.0245 to read as follows:
2-25           Sec. 271.0245.  ADDITIONAL COMPETITIVE PROCEDURES. (a)  In
2-26     the procedure for competitive bidding under this subchapter, the
2-27     governing body of the governmental entity shall provide all bidders
 3-1     with the opportunity to bid on the same items on equal terms and
 3-2     have bids judged according to the same standards as set forth in
 3-3     the specifications.
 3-4           (b)  A governmental entity shall receive bids under this
 3-5     subchapter in a fair and confidential manner.
 3-6           (c)  A governmental entity may receive bids under this
 3-7     subchapter in hard-copy format or through electronic transmission.
 3-8     A governmental entity shall accept any bids submitted in hard-copy
 3-9     format.
3-10           SECTION 6.  Subchapter C, Chapter 252, Local Government Code,
3-11     is amended by adding Section 252.0415 to read as follows:
3-12           Sec. 252.0415.  PROCEDURES FOR ELECTRONIC BIDS OR PROPOSALS.
3-13     (a)  A municipality may receive bids or proposals under this
3-14     chapter through electronic transmission if the governing body of
3-15     the municipality adopts rules to ensure the identification,
3-16     security, and confidentiality of electronic bids or proposals and
3-17     to ensure that the electronic bids or proposals remain effectively
3-18     unopened until the proper time.
3-19           (b)  Notwithstanding any other provision of this chapter, an
3-20     electronic bid or proposal is not required to be sealed.  A
3-21     provision of this chapter that applies to a sealed bid or proposal
3-22     applies to a bid or proposal received through electronic
3-23     transmission in accordance with the rules adopted under Subsection
3-24     (a).
3-25           SECTION 7.  This Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 1981 was passed by the House on March
         29, 2001, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 1981 on May 25, 2001, by a non-record
         vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 1981 was passed by the Senate, with
         amendments, on May 17, 2001, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor