1-1     By:  Farabee (Senate Sponsor - Madla)                 H.B. No. 2863
 1-2           (In the Senate - Received from the House May 7, 2001;
 1-3     May 7, 2001, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 11, 2001, reported favorably by
 1-5     the following vote:  Yeas 5, Nays 0; May 11, 2001, sent to
 1-6     printer.)
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to the threshold contract amount at which a county and
1-10     certain municipalities are required to engage in a competitive
1-11     purchasing procedure for certain purchases.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1. Section 271.054, Local Government Code, is amended
1-14     to read as follows:
1-15           Sec. 271.054.  COMPETITIVE BIDDING REQUIREMENT.  Before the
1-16     governing body of an issuer may enter into a contract requiring an
1-17     expenditure by or imposing an obligation or liability on the
1-18     issuer, or on a subdivision of the issuer if the issuer is a
1-19     county, of more than $25,000 [$15,000], the governing body must
1-20     submit the proposed contract to competitive bidding.
1-21           SECTION 2. Sections 252.312(b) and (c), Transportation Code,
1-22     are amended to read as follows:
1-23           (b)  If the county road engineer so recommends and the
1-24     commissioners court considers it to be in the best interest of the
1-25     county, a purchase in an amount of $25,000 [$15,000] or less may be
1-26     made through negotiation by the commissioners court or the court's
1-27     authorized representative on requisition to be approved by the
1-28     commissioners court or the county auditor without advertising for
1-29     competitive bids.
1-30           (c)  A purchase may not be divided or reduced to avoid the
1-31     competitive bidding requirement on a purchase that would otherwise
1-32     cost more than $25,000 [$15,000].
1-33           SECTION 3.  This Act takes effect immediately if it receives
1-34     a vote of two-thirds of all the members elected to each house, as
1-35     provided by Section 39, Article III, Texas Constitution.  If this
1-36     Act does not receive the vote necessary for immediate effect, this
1-37     Act takes effect September 1, 2001.
1-38                                  * * * * *