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