By McReynolds                                         H.B. No. 2229
         77R6199 MI-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain contracts between governmental entities and
 1-3     nonresident bidders.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Subchapter A, Chapter 2252, Government Code, is
 1-6     amended by adding Section 2252.0021 to read as follows:
 1-7           Sec. 2252.0021.  AWARD OF CONTRACT FOR CREOSOTE PRODUCTS TO
 1-8     NONRESIDENT BIDDER. A governmental entity may not award a
 1-9     governmental contract for creosote products to a nonresident bidder
1-10     unless the nonresident underbids the lowest bid submitted by a
1-11     responsible resident bidder by an amount that is not less than the
1-12     amount by which a resident bidder would be required to underbid the
1-13     nonresident bidder to obtain a comparable contract in the state in
1-14     which final assembly, processing, or manufacturing of the creosote
1-15     product to be provided by the nonresident occurs.
1-16           SECTION 2. The change in law made by this Act applies only to
1-17     a contract for which a governmental entity first begins to solicit
1-18     bids on or after September 1, 2001.
1-19           SECTION 3. This Act takes effect September 1, 2001.  A
1-20     contract for which a governmental entity first begins to solicit
1-21     bids before September 1, 2001, is governed by the law in effect on
1-22     the date the governmental entity first began to solicit bids, and
1-23     the former law is continued in effect for that purpose.