1-1     By:  Farabee (Senate Sponsor - Lindsay)               H.B. No. 1981
 1-2           (In the Senate - Received from the House April 2, 2001;
 1-3     April 3, 2001, read first time and referred to Committee on
 1-4     Intergovernmental Relations; April 26, 2001, reported adversely,
 1-5     with favorable Committee Substitute by the following vote:  Yeas 5,
 1-6     Nays 0; April 26, 2001, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 1981                 By:  Lindsay
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to competitive purchasing procedures applying to certain
1-11     purchases and contracts of governmental entities.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1. Subchapter C, Chapter 262, Local Government Code,
1-14     is amended by adding Section 262.0225 to read as follows:
1-15           Sec. 262.0225.  ADDITIONAL COMPETITIVE PROCEDURES. (a)  In
1-16     the procedure for competitive bidding under this subchapter, the
1-17     commissioners court of the county shall provide all bidders with
1-18     the opportunity to bid on the same items on equal terms and have
1-19     bids judged according to the same standards as set forth in the
1-20     specifications.
1-21           (b)  A county shall receive bids or proposals under this
1-22     subchapter in a fair and confidential manner.
1-23           (c)  A county may receive bids or proposals under this
1-24     subchapter in hard-copy format or through electronic transmission.
1-25     A county shall accept any bids or proposals submitted in hard-copy
1-26     format.
1-27           SECTION 2. Section 262.023(a), Local Government Code, is
1-28     amended to read as follows:
1-29           (a)  Before a county may purchase one or more items under a
1-30     contract that will require an expenditure exceeding $25,000, the
1-31     commissioners court of the county must comply with the competitive
1-32     bidding or competitive proposal procedures prescribed by this
1-33     subchapter.  [All bids or proposals must be sealed.]
1-34           SECTION 3. Subchapter C, Chapter 262, Local Government Code,
1-35     is amended by adding Section 262.0235 to read as follows:
1-36           Sec. 262.0235.  PROCEDURES ADOPTED BY COUNTY PURCHASING
1-37     AGENTS FOR ELECTRONIC BIDS OR PROPOSALS. The county purchasing
1-38     agent, before receiving electronic bids or proposals, shall adopt
1-39     rules in conformance with Section 262.011(o) to ensure the
1-40     identification, security, and confidentiality of electronic bids or
1-41     proposals.
1-42           SECTION 4. Subchapter A, Chapter 271, Local Government Code,
1-43     is amended by adding Section 271.0065 to read as follows:
1-44           Sec. 271.0065.  ADDITIONAL COMPETITIVE PROCEDURES. (a)  In
1-45     any procedure for competitive bidding under this subchapter, the
1-46     governing body shall provide all bidders with the opportunity to
1-47     bid on the same items on equal terms and have bids judged according
1-48     to the same standards as set forth in the specifications.
1-49           (b)  A governmental agency shall receive bids or proposals
1-50     under this subchapter in a fair and confidential manner.
1-51           (c)  A governmental agency may receive bids or proposals
1-52     under this subchapter in hard-copy format or through electronic
1-53     transmission.  A governmental agency shall accept any bids or
1-54     proposals submitted in hard-copy format.
1-55           SECTION 5. Subchapter B, Chapter 271, Local Government Code,
1-56     is amended by adding Section 271.0245 to read as follows:
1-57           Sec. 271.0245.  ADDITIONAL COMPETITIVE PROCEDURES. (a)  In
1-58     the procedure for competitive bidding under this subchapter, the
1-59     governing body of the governmental entity shall provide all bidders
1-60     with the opportunity to bid on the same items on equal terms and
1-61     have bids judged according to the same standards as set forth in
1-62     the specifications.
1-63           (b)  A governmental entity shall receive bids under this
1-64     subchapter in a fair and confidential manner.
 2-1           (c)  A governmental entity may receive bids under this
 2-2     subchapter in hard-copy format or through electronic transmission.
 2-3     A governmental entity shall accept any bids submitted in hard-copy
 2-4     format.
 2-5           SECTION 6.  This Act takes effect September 1, 2001.
 2-6                                  * * * * *