By Marchant                                           H.B. No. 1992
         77R3603 PAM-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to permitting a municipality to consider financing
 1-3     alternatives submitted in competitive bids.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Subchapter C, Chapter 252, Local Government Code,
 1-6     is amended by adding Section 252.0415 to read as follows:
 1-7           Sec. 252.0415.  CONSIDERATION OF FINANCING TERMS SUBMITTED IN
 1-8     BIDS.  (a)  A municipality must specify in the notice required
 1-9     under Section 252.041 that the municipality will consider financing
1-10     alternatives submitted by a bidder if the municipality intends to
1-11     consider bids that offer different bid prices that are contingent
1-12     on whether a financing alternative offered by the bidder is
1-13     accepted by the municipality.
1-14           (b)  If the municipality provides the notice prescribed by
1-15     Subsection (a), a bidder may submit a bid:
1-16                 (1)  that is not contingent on a financing alternative;
1-17     or
1-18                 (2)  that offers different bid prices that are
1-19     contingent on whether a financing alternative offered by the bidder
1-20     is accepted by the municipality.
1-21           (c)  If a municipality does not comply with the notice
1-22     requirements of Subsection (a), it shall reject all bids that offer
1-23     different bid prices that are contingent on whether a financing
1-24     alternative offered by the bidder is accepted by the municipality.
 2-1           (d)  A municipality that complies with Subsection (a)  may
 2-2     award the contract to the lowest responsible bidder as provided by
 2-3     Section 252.043 based on:
 2-4                 (1)  a bid price that is not contingent on a financing
 2-5     alternative; or
 2-6                 (2)  any bid price offered that is contingent on a
 2-7     financing alternative offered by the bidder if the municipality
 2-8     determines that the financing alternative provides the best value
 2-9     for the municipality.
2-10           SECTION 2.  This Act takes effect immediately if it receives
2-11     a vote of two-thirds of all the members elected to each house, as
2-12     provided by Section 39, Article III, Texas Constitution.  If this
2-13     Act does not receive the vote necessary for immediate effect, this
2-14     Act takes effect September 1, 2001.