1-1 AN ACT
1-2 relating to the powers of a local government corporation.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 431.101, Transportation Code, is amended
1-5 by amending Subsection (e) and adding Subsections (g) through (j)
1-6 to read as follows:
1-7 (e) Except as provided by Subsections (g), (h), and (i), a
1-8 local government corporation is subject to all state law related to
1-9 the design and construction of projects, including the procurement
1-10 of design and construction services, that applies to the local
1-11 government that created the corporation. If a local government
1-12 corporation is created jointly by more than one local government
1-13 and the local governments have different threshold contract amounts
1-14 at which competitive bidding is required, the lowest amount applies
1-15 to the corporation [
Section 394.904(a), Local Government Code,
1-16 applies to property and improvements owned by a local government
1-17 corporation. Section 394.904(b) of that code applies to each
1-18 contract awarded by the local government corporation].
1-19 (g) A corporation created by a municipality for the purpose
1-20 of developing a convention center hotel project is exempt from
1-21 competitive bidding requirements and other restrictions on the
1-22 award of contracts.
1-23 (h) A corporation created by a municipality after September
1-24 1, 1999, for the purpose of developing water treatment and
1-25 distribution facilities is exempt from competitive bidding
2-1 requirements and other restrictions on the award of contracts for
2-2 the limited purpose of completing projects as described in a
2-3 project definition document issued before December 31, 2000. Any
2-4 expansion of treatment facilities beyond the project described in
2-5 the project definition document is exempt from the competitive
2-6 bidding requirements but shall comply with Chapter 2254, Government
2-7 Code. Any expansion of distribution facilities by the corporation
2-8 is subject to all state law that applies to the local government
2-9 that created the corporation, as provided in Subsection (e).
2-10 (i) A local government corporation created for the purpose
2-11 of developing an area within a tax increment reinvestment zone
2-12 created by a municipality pursuant to Chapter 311, Tax Code, is
2-13 exempt from competitive bidding requirements but shall comply with
2-14 Chapter 2254, Government Code. A corporation created for the
2-15 purpose described by this subsection is also exempt from any
2-16 competitive bidding requirement or restriction imposed on the
2-17 procedure regarding the lease, sale, or other disposition of real
2-19 (j) Any competitive bidding requirement imposed on the
2-20 procedure regarding the lease, sale, or other disposition of
2-21 property does not apply to a transaction related to the transfer of
2-22 water rights by a local government corporation.
2-23 SECTION 2. Subchapter D, Chapter 431, Transportation Code,
2-24 is amended by adding Sections 431.110 and 431.111 to read as
2-26 Sec. 431.110. CONFLICT OF INTEREST IN CONTRACT. Chapter
3-1 171, Local Government Code, applies to the award of a contract by a
3-2 local government corporation.
3-3 Sec. 431.111. ANNUAL REPORT TO COMPTROLLER. (a) Not later
3-4 than February 1 of each year, the board of a local government
3-5 corporation shall submit to the comptroller a report in the form
3-6 required by the comptroller. The form for the report may not
3-7 exceed one page in length.
3-8 (b) The report must include:
3-9 (1) a statement of the corporation's purpose;
3-10 (2) a statement of the corporation's total revenues
3-11 and expenditures during the preceding fiscal year; and
3-12 (3) a summary of the corporation's activities during
3-13 the preceding fiscal year, including any bonds issued and capital
3-14 projects undertaken.
3-15 (c) The board shall submit a copy of the report to the local
3-16 government that created the corporation.
3-17 SECTION 3. Except as provided by Subsections (g), (h), and
3-18 (i), Section 431.101, Transportation Code, as added by this Act,
3-19 the change in law made by this Act to Subsection (e), Section
3-20 431.101, Transportation Code, applies to all contracts entered into
3-21 by a local government corporation on or after the effective date of
3-22 this Act unless a local government corporation first published
3-23 notice of the contract on or before May 15, 2001. A contract,
3-24 public notice of which was first published by a local government
3-25 corporation on or before May 15, 2001, is governed by that section
3-26 as it existed immediately before the effective date of this Act,
4-1 and the former law is continued in effect for that purpose.
4-2 SECTION 4. This Act takes effect immediately if it receives
4-3 a vote of two-thirds of all the members elected to each house, as
4-4 provided by Section 39, Article III, Texas Constitution. If this
4-5 Act does not receive the vote necessary for immediate effect, this
4-6 Act takes effect September 1, 2001.
President of the Senate Speaker of the House
I hereby certify that S.B. No. 354 passed the Senate on
March 14, 2001, by the following vote: Yeas 29, Nays 0, one
present not voting; and that the Senate concurred in House
amendments on May 24, 2001, by the following vote: Yeas 30,
Nays 0, one present not voting.
Secretary of the Senate
I hereby certify that S.B. No. 354 passed the House, with
amendments, on May 17, 2001, by a non-record vote.
Chief Clerk of the House