1-1 By: Lindsay S.B. No. 354
1-2 (In the Senate - Filed January 23, 2001; January 25, 2001,
1-3 read first time and referred to Committee on Intergovernmental
1-4 Relations; March 8, 2001, reported adversely, with favorable
1-5 Committee Substitute by the following vote: Yeas 6, Nays 0;
1-6 March 8, 2001, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 354 By: Lindsay
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the powers of a local government corporation.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Section 431.101, Transportation Code, is amended
1-13 by amending Subsections (e) and (f) and adding Subsections (g),
1-14 (h), and (i) to read as follows:
1-15 (e) Except as provided by Subsections (h) and (i), a local
1-16 government corporation is subject to all state law related to the
1-17 design and construction of projects, including the procurement of
1-18 design and construction services, that applies to the local
1-19 government that created the corporation. In the event that a local
1-20 government corporation is created jointly by multiple local
1-21 governments, and if the local governments have different threshold
1-22 contract amounts at which competitive bidding is required, then the
1-23 corporation shall follow the lower amount [Section 394.904(a),
1-24 Local Government Code, applies to property and improvements owned
1-25 by a local government corporation. Section 394.904(b) of that code
1-26 applies to each contract awarded by the local government
1-27 corporation].
1-28 (f) A local government corporation is not subject to a
1-29 competitive bidding requirement or other restriction imposed on the
1-30 procedure related to the lease, sale, or other disposition of real
1-31 property.
1-32 (g) A member of the board of directors of a local government
1-33 corporation:
1-34 (1) is not a public official by virtue of that
1-35 position; and
1-36 (2) unless otherwise ineligible, may be appointed to
1-37 serve concurrently on the board of directors of a reinvestment zone
1-38 created under Chapter 311, Tax Code.
1-39 (h) A corporation created after September 1, 1999, by a
1-40 municipality for the purpose of the development of a convention
1-41 center hotel project is exempt from competitive bidding
1-42 requirements and other restrictions on the award of contracts for
1-43 the limited purpose of completing a project initiated prior to
1-44 December 31, 2000.
1-45 (i) A corporation created by a municipality after September
1-46 1, 1999, for the purpose of developing water treatment and
1-47 distribution facilities is exempt from competitive bidding
1-48 requirements and other restrictions on the award of contracts for
1-49 the limited purpose of completing projects as described in a
1-50 project definition document issued prior to December 31, 2000. Any
1-51 expansion of the treatment facility beyond the project described in
1-52 the project definition document is exempt from competitive bidding
1-53 requirements and other restrictions on the award of contracts for
1-54 the purpose of contracting for the operation of the facility but is
1-55 subject to all state law related to design and construction
1-56 procurement that applies to the local government that created the
1-57 corporation, as provided in Subsection (e).
1-58 SECTION 2. Subchapter D, Chapter 431, Transportation Code,
1-59 is amended by adding Sections 431.110 and 431.111 to read as
1-60 follows:
1-61 Sec. 431.110. CONFLICT OF INTEREST IN CONTRACTS. The
1-62 provisions of Chapter 171, Local Government Code, shall apply to
1-63 the award of contracts by a local government corporation.
1-64 Sec. 431.111. ANNUAL REPORT TO COMPTROLLER. (a) Not later
2-1 than February 1 of each year, the board of a local government
2-2 corporation shall submit to the comptroller a report in the form
2-3 required by the comptroller. The form for the report may not
2-4 exceed one page in length.
2-5 (b) The report must include:
2-6 (1) a statement of the corporation's purpose;
2-7 (2) a statement of the corporation's total revenues
2-8 and expenditures during the preceding fiscal year; and
2-9 (3) a summary of the corporation's activities during
2-10 the preceding fiscal year, including any bonds issued and capital
2-11 projects undertaken by the corporation.
2-12 (c) A copy of the annual report required by this section
2-13 shall also be submitted to the local government that created the
2-14 corporation.
2-15 SECTION 3. With the exception of Subsections (h) and (i),
2-16 Section 431.101, Transportation Code, as added by this Act, the
2-17 change in law made by this Act to Subsection (e), Section 431.101,
2-18 Transportation Code, applies only to a contract entered into by a
2-19 local government corporation on or after the effective date of this
2-20 Act. A contract entered into before the effective date of this Act
2-21 is governed by that section as it existed immediately before the
2-22 effective date of this Act, and the former law is continued in
2-23 effect for that purpose.
2-24 SECTION 4. This Act takes effect immediately if it receives
2-25 a vote of two-thirds of all the members elected to each house, as
2-26 provided by Section 39, Article III, Texas Constitution. If this
2-27 Act does not receive the vote necessary for immediate effect, this
2-28 Act takes effect September 1, 2001.
2-29 * * * * *