1-1                                   AN ACT
 1-2     relating to the threshold contract amount at which a county and
 1-3     certain municipalities are required to engage in a competitive
 1-4     purchasing procedure for certain purchases.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Section 271.054, Local Government Code, is amended
 1-7     to read as follows:
 1-8           Sec. 271.054.  COMPETITIVE BIDDING REQUIREMENT.  Before the
 1-9     governing body of an issuer may enter into a contract requiring an
1-10     expenditure by or imposing an obligation or liability on the
1-11     issuer, or on a subdivision of the issuer if the issuer is a
1-12     county, of more than $25,000 [$15,000], the governing body must
1-13     submit the proposed contract to competitive bidding.
1-14           SECTION 2. Sections 252.312(b) and (c), Transportation Code,
1-15     are amended to read as follows:
1-16           (b)  If the county road engineer so recommends and the
1-17     commissioners court considers it to be in the best interest of the
1-18     county, a purchase in an amount of $25,000 [$15,000] or less may be
1-19     made through negotiation by the commissioners court or the court's
1-20     authorized representative on requisition to be approved by the
1-21     commissioners court or the county auditor without advertising for
1-22     competitive bids.
1-23           (c)  A purchase may not be divided or reduced to avoid the
1-24     competitive bidding requirement on a purchase that would otherwise
 2-1     cost more than $25,000 [$15,000].
 2-2           SECTION 3.  This Act takes effect immediately if it receives
 2-3     a vote of two-thirds of all the members elected to each house, as
 2-4     provided by Section 39, Article III, Texas Constitution.  If this
 2-5     Act does not receive the vote necessary for immediate effect, this
 2-6     Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2863 was passed by the House on May
         5, 2001, by the following vote:  Yeas 140, Nays 0, 2 present, not
         voting.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2863 was passed by the Senate on May
         22, 2001, by the following vote:  Yeas 30, Nays 0, 1 present, not
         voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor