By Lindsay S.B. No. 354
Substitute the following for S.B. No. 354:
By Alexander C.S.S.B. No. 354
A BILL TO BE ENTITLED
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)-(k) to read
1-6 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, except as provided by Subsection (j).
1-23 (h) A corporation created by a municipality after September
1-24 1, 1999, for the purpose of developing water treatment and
2-1 distribution facilities is exempt from competitive bidding
2-2 requirements and other restrictions on the award of contracts for
2-3 the limited purpose of completing projects as described in a
2-4 project definition document issued before December 31, 2000. Any
2-5 expansion of treatment facilities beyond the project described in
2-6 the project definition document is exempt from the competitive
2-7 bidding requirements except as provided by Subsection (j). Any
2-8 expansion of distribution facilities by the corporation is subject
2-9 to all state law that applies to the local government that created
2-10 the corporation, as provided in Subsection (e).
2-11 (i) A local government corporation created for the primary
2-12 purpose of assisting a municipality in implementing a project plan
2-13 of a tax increment reinvestment zone created by the municipality
2-14 pursuant to Chapter 311, Tax Code, is exempt from competitive
2-15 bidding requirements and other restrictions on the award of
2-16 contracts, except as provided by Subsection (j). Section
2-17 394.904(a), Local Government Code, applies to property and
2-18 improvements owned by the corporation and Section 394.904(b), Local
2-19 Government Code, applies to each contract awarded by the
2-21 (j) A local government corporation shall comply with Chapter
2-22 2254, Government Code.
2-23 (k) Any competitive bidding requirement or restriction
2-24 imposed on the procedure regarding the lease, sale, or other
2-25 disposition of property does not apply to a transaction related to
2-26 the transfer of water rights by a local government corporation.
2-27 SECTION 2. Subchapter D, Chapter 431, Transportation Code, is
3-1 amended by adding Sections 431.110 and 431.111 to read as follows:
3-2 Sec. 431.110. CONFLICT OF INTEREST IN CONTRACT. Chapter 171,
3-3 Local Government Code, applies to the award of a contract by a
3-4 local government corporation.
3-5 Sec. 431.111. ANNUAL REPORT TO COMPTROLLER. (a) Not later
3-6 than February 1 of each year, the board of a local government
3-7 corporation shall submit to the comptroller a report in the form
3-8 required by the comptroller. The form for the report may not
3-9 exceed one page in length.
3-10 (b) The report must include:
3-11 (1) a statement of the corporation's purpose;
3-12 (2) a statement of the corporation's total revenues
3-13 and expenditures during the preceding fiscal year; and
3-14 (3) a summary of the corporation's activities during
3-15 the preceding fiscal year, including any bonds issued and capital
3-16 projects undertaken.
3-17 (c) The board shall submit a copy of the report to the local
3-18 government that created the corporation.
3-19 SECTION 3. Except as provided by Sections 431.101(g), (h),
3-20 and (i), Transportation Code, as added by this Act, the change in
3-21 law made by this Act to Section 431.101(e), Transportation Code,
3-22 applies to all contracts entered into by a local government
3-23 corporation on or after the effective date of this Act. A contract
3-24 entered into before the effective date of this Act is governed by
3-25 that section as it existed immediately before the effective date of
3-26 this Act, and the former law is continued in effect for that
4-1 SECTION 4. This Act takes effect immediately if it receives
4-2 a vote of two-thirds of all the members elected to each house, as
4-3 provided by Section 39, Article III, Texas Constitution. If this
4-4 Act does not receive the vote necessary for immediate effect, this
4-5 Act takes effect September 1, 2001.