77R12847 SMJ-D                           
         By Solomons                                           H.B. No. 2318
         Substitute the following for H.B. No. 2318:
         By Ramsay                                         C.S.H.B. No. 2318
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the use of electronically transmitted information in
 1-3     certain county and municipal procedures for the purchase, sale, or
 1-4     lease of items.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Subchapter A, Chapter 252, Local Government Code,
 1-7     is amended by adding Section 252.004 to read as follows:
 1-8           Sec. 252.004.  CERTAIN ELECTRONIC TRANSMISSIONS PERMITTED.
 1-9     (a)  Under the competitive sealed bidding and competitive sealed
1-10     proposal procedures prescribed by this chapter, a municipality may
1-11     receive bids or proposals through the Internet or by other
1-12     electronic means if the municipality implements security measures
1-13     regarding the electronic transmission of information that ensure
1-14     that bids and proposals are not viewed by unauthorized persons or
1-15     tampered with and that the bids and proposals remain effectively
1-16     unopened until the proper time.
1-17           (b)  For the purposes of this chapter, a bid or proposal is
1-18     considered sealed if it is received by a municipality through the
1-19     Internet or by other electronic means in accordance with security
1-20     measures the municipality implements under Subsection (a).
1-21           SECTION 2.  Section 252.041, Local Government Code, is
1-22     amended by adding Subsection (e) to read as follows:
1-23           (e)  In lieu of publishing notice under Subsection (a) or
1-24     (b), a municipality with a population of 25,000 or more may post on
 2-1     its Internet website a notice that the municipality is soliciting
 2-2     proposals or bids for the contract.  The municipality must post the
 2-3     notice for at least two consecutive weeks on its website, with the
 2-4     first day of the website posting occurring before the 14th day
 2-5     before the date of the proposal or bid opening.  The website notice
 2-6     must comply with Subsections (c) and (d).  Before posting notice on
 2-7     its website, the municipality must publish in a newspaper published
 2-8     in the municipality notice that the municipality is soliciting
 2-9     proposals or bids for the contract on its website.  The newspaper
2-10     notice must include the address of the municipality's website.
2-11           SECTION 3.  Subchapter C, Chapter 262, Local Government Code,
2-12     is amended by adding Section 262.0235 to read as follows:
2-13           Sec. 262.0235.  CERTAIN ELECTRONIC TRANSMISSIONS PERMITTED.
2-14     (a)  Under the competitive bidding and competitive proposal
2-15     procedures prescribed by this chapter, a county may receive bids or
2-16     proposals through the Internet or by other electronic means if the
2-17     county implements security measures regarding the electronic
2-18     transmission of information that ensure that bids and proposals are
2-19     not viewed by unauthorized persons or tampered with and that the
2-20     bids and proposals remain effectively unopened until the proper
2-21     time.
2-22           (b)  For the purposes of this chapter, a bid or proposal is
2-23     considered sealed if it is received by a county through the
2-24     Internet or by other electronic means in accordance with security
2-25     measures the county implements under Subsection (a).
2-26           SECTION 4.  Section 262.025, Local Government Code, is
2-27     amended by adding Subsection (e) to read as follows:
 3-1           (e)  In lieu of publishing notice under Subsection (a), a
 3-2     county with a population of 400,000 or more may post a notice of a
 3-3     proposed purchase on the county's Internet website.  The county
 3-4     must post the notice for at least two consecutive weeks on its
 3-5     website, with the first day of the website posting occurring before
 3-6     the 14th day before the date of the bid opening.  The website
 3-7     notice must comply with Subsections (b) and (c).  Before posting
 3-8     notice on its website, the county must publish in a newspaper of
 3-9     general circulation in the county notice that the county is
3-10     soliciting bids for the proposed purchase on its website.  The
3-11     newspaper notice must include the address of the county's website.
3-12           SECTION 5.  Section 263.007, Local Government Code, is
3-13     amended to read as follows:
3-14           Sec. 263.007.  SALE OR LEASE OF REAL PROPERTY THROUGH
3-15     SEALED-BID PROCEDURE. (a)  The commissioners court of a county may
3-16     adopt a procedure by which the county may sell or lease through a
3-17     sealed-bid or sealed-proposal procedure any real property,
3-18     including space in a building, owned by the county.
3-19           (b)  A procedure adopted by the commissioners court under
3-20     Subsection (a) may provide for the county to receive bids or
3-21     proposals through the Internet or by other electronic means if the
3-22     county implements security measures regarding the electronic
3-23     transmission of information that ensure that bids and proposals are
3-24     not viewed by unauthorized persons or tampered with and that the
3-25     bids and proposals remain effectively unopened until the proper
3-26     time.  For the purposes of this section, a bid or proposal is
3-27     considered sealed if it is received by a county through the
 4-1     Internet or by other electronic means in accordance with security
 4-2     measures the county implements under this subsection.
 4-3           (c)  As an alternative to the notice provisions described by
 4-4     Subsection (d), the commissioners court in a county with a
 4-5     population of 400,000 or more may provide for the county to post
 4-6     notice on the county's Internet website of its intent to sell or
 4-7     lease real property under this section.  Before posting notice on
 4-8     its website, the county must publish in a newspaper of general
 4-9     circulation in the county notice that the county is soliciting bids
4-10     or proposals for the sale or lease of real property on its website.
4-11     The newspaper notice must include the address of the county's
4-12     website.  The website notice soliciting bids or proposals must:
4-13                 (1)  be posted on the county's website for at least two
4-14     consecutive weeks, with the first day of the posting occurring
4-15     before the 14th day before the date the award of the sale or lease
4-16     is made; and
4-17                 (2)  include the information described by Subsections
4-18     (d)(3) and (4).
4-19           (d)  Except as provided by Subsection (c), the [(b) The]
4-20     procedure must include a requirement that the county publish,
4-21     before a sale or lease is made, a notice of its intent to sell or
4-22     lease, as appropriate, the real property.  The notice must:
4-23                 (1)  be published in a newspaper of general circulation
4-24     in the county the commissioners court represents and, if the real
4-25     property is located in another county, in a newspaper of general
4-26     circulation in that other county;
4-27                 (2)  be published on two dates, with the date of the
 5-1     second publication occurring before the 14th day before the date
 5-2     the award of the sale or lease is made;
 5-3                 (3)  include a description of the real property,
 5-4     including its location; and
 5-5                 (4)  include a description of the procedure by which
 5-6     sealed bids or sealed proposals for the sale or lease may be
 5-7     submitted.
 5-8           (e) [(c)]  Before selling property under this section, the
 5-9     commissioners court shall:
5-10                 (1)  obtain an appraisal of the property's fair market
5-11     value; and
5-12                 (2)  determine a minimum bid amount, based on the
5-13     appraisal.
5-14           (f) [(d)]  Under the procedure, the commissioners court may
5-15     reject any and all bids submitted.
5-16           (g)(1) [(e)(1)]  The commissioners court of a county may
5-17     lease real property owned or controlled by the county that was
5-18     formerly owned or controlled by the Texas Department of Mental
5-19     Health and Mental Retardation to a federal, state, or local
5-20     government entity for any purpose or to a nonprofit organization
5-21     that is exempt from federal taxation under Section 501(c)(3),
5-22     Internal Revenue Code of 1986 (26 U.S.C. Section 501(c)(3)), to
5-23     conduct health and human service activities or such other
5-24     activities which the commissioners court finds to be in the public
5-25     interest, without using the sealed-bid or sealed-proposal process
5-26     described in Subsection (a) and without using any other competitive
5-27     bidding process which would otherwise be required by law.
 6-1                 (2)  The commissioners court of a county with a
 6-2     population of one million or more that contains two or more
 6-3     municipalities with a population of 250,000 or more may lease real
 6-4     property owned or controlled by the county to a for-profit entity
 6-5     to conduct health and human service activities which the
 6-6     commissioners court finds to be in the public interest, without
 6-7     using the sealed-bid or sealed-proposal process described in
 6-8     Subsection (a) and without using any other competitive bidding
 6-9     process which would otherwise be required by law.
6-10                 (3)  If the commissioners court of a county chooses to
6-11     lease under this subsection, the commissioners court shall declare
6-12     its intent to do so through written notice posted in the same place
6-13     and manner as the commissioners court posts its regular meeting
6-14     agenda not later than 30 days prior to the beginning of the lease
6-15     period.  In setting the terms and conditions of the lease,
6-16     including but not limited to the amount of the lease payment, the
6-17     commissioners court may consider local business custom regarding
6-18     leases and the reasonable market value of the leasehold, but the
6-19     commissioners court is not bound thereby and may also consider the
6-20     extent to which the provision of services or the other activities
6-21     to be performed by the lessee will benefit the public.  This
6-22     subsection does not limit the ability of a commissioners court to
6-23     enter into interlocal agreements, contracts, or any other
6-24     arrangement permitted by law.
6-25           (h) [(f)]  The procedure authorized by this section is an
6-26     alternative procedure to the procedure authorized by Section
6-27     272.001.
 7-1           SECTION 6.  Subchapter D, Chapter 263, Local Government Code,
 7-2     is amended by adding Section 263.1535 to read as follows:
 7-3           Sec. 263.1535.  NOTICE IN POPULOUS COUNTY. In lieu of
 7-4     publishing notice under Section 263.153, the commissioners court in
 7-5     a county with a population of 400,000 or more may post notice of a
 7-6     sale of surplus or salvage property on the county's Internet
 7-7     website.  The notice must be:
 7-8                 (1)  first posted on the website on or after the 30th
 7-9     day but before the 10th day before the date of the sale; and
7-10                 (2)  posted on the website for at least two consecutive
7-11     weeks.
7-12           SECTION 7.  Section 271.049(a), Local Government Code, is
7-13     amended to read as follows:
7-14           (a)  Regardless of the sources of payment of certificates,
7-15     certificates may not be issued unless the issuer publishes notice
7-16     of its intention to issue the certificates.  The notice must be
7-17     published once a week for two consecutive weeks in a newspaper, as
7-18     defined by Subchapter C, Chapter 2051, Government Code, that is of
7-19     general circulation in the area of the issuer, or posted for at
7-20     least two consecutive weeks on the issuer's Internet website, with
7-21     the date of the first publication or website posting to be before
7-22     the 14th day before the date tentatively set for the passage of the
7-23     order or ordinance authorizing the issuance of the certificates.
7-24           SECTION 8.  Section 271.055(b), Local Government Code, is
7-25     amended to read as follows:
7-26           (b)  If an issuer gives notice under this subsection, the
7-27     notice must:
 8-1                 (1)  be published once a week for two consecutive weeks
 8-2     in a newspaper, as defined by Subchapter C, Chapter 2051,
 8-3     Government Code, that is of general circulation in the area of the
 8-4     issuer, or posted for at least two consecutive weeks on the
 8-5     issuer's Internet website, with the date of the first publication
 8-6     or website posting to be before the 14th day before the date set
 8-7     for the public opening of the bids and the reading of the bids
 8-8     aloud; and
 8-9                 (2)  state that plans and specifications for the work
8-10     to be done or specifications for the machinery, supplies,
8-11     equipment, or materials to be purchased are on file with a
8-12     designated official of the issuer and may be examined without
8-13     charge.
8-14           SECTION 9.  Subchapter Z, Chapter 271, Local Government Code,
8-15     is amended by adding Section 271.906 to read as follows:
8-16           Sec. 271.906.  CERTAIN ELECTRONIC TRANSMISSIONS PERMITTED.
8-17     Under the competitive procedures prescribed by this chapter, a
8-18     municipality or a county may receive bids or proposals through the
8-19     Internet or by other electronic means if the municipality or county
8-20     implements security measures regarding the electronic transmission
8-21     of information that ensure that bids and proposals are not viewed
8-22     by unauthorized persons or tampered with and that the bids and
8-23     proposals remain effectively unopened until the proper time.
8-24           SECTION 10.  This Act takes effect September 1, 2001.