SRC-LBB, JLB S.B. 850 78(R)BILL ANALYSIS


Senate Research CenterS.B. 850
By: Lindsay
Intergovernmental Relations
8/24/2003
Enrolled


DIGEST AND PURPOSE 

Texas cities, counties, and school districts are prohibited from taking
into consideration anything other than general qualifications and price in
awarding bid contracts.  However, some bidders who have been awarded
contracts owe the city, county, or school district back taxes.  S.B. 850
allows cities, counties, and school districts to consider whether a bidder
has paid their ad valorem taxes to the entity seeking the bid proposal and
to refuse to contract with a person or firm so indebted. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter C, Chapter 252, Local Government Code, by
adding Section 252.0436, as follows: 
 
Sec. 252.0436.  CONTRACT WITH PERSON INDEBTED TO MUNICIPALITY.  (a)
Authorizes a municipality by ordinance to establish regulations permitting
the municipality to refuse to enter into a contract or other transaction
with a person indebted to the municipality. 

(b)  Provides that it is not a violation of this chapter for a
municipality, under regulations adopted under Subsection (a), to refuse to
award a contract to or enter into a transaction with an apparent low
bidder or successful proposer that is indebted to the municipality. 
 
  (c)  Defines "person."

SECTION 2.  Amends Subchapter C, Chapter 262, Local Government Code, by
adding Section 262.0276, as follows: 
 
Sec. 262.0276.  CONTRACT WITH PERSON INDEBTED TO COUNTY.  (a) Authorizes
the commissioners court, by an order adopted and entered in the minutes of
the commissioners court and after notice is published in a newspaper of
general circulation in the county, to adopt rules permitting the county to
refuse to enter into a contract or other transaction with a person
indebted to the county. 

(b)  Provides that it is not a violation of this subchapter for a county,
under rules adopted under Subsection (a), to refuse to award a contract to
or enter into a transaction with an apparent low bidder or successful
proposer who is indebted to the county. 
 
  (c)  Defines "person."

SECTION 3.  Amends Subchapter B, Chapter 44, Education Code, by adding
Section 44.044, as follows: 
  
Sec. 44.044.  CONTRACT WITH PERSON INDEBTED TO SCHOOL DISTRICT.  (a)
Authorizes the board of trustees of a school district by resolution to
establish regulations permitting the school district to refuse to enter
into a contract or other transaction with a person indebted to the school
district. 

(b)  Provides that it is not a violation of this subchapter for a school
district, under regulations adopted under Subsection (a), to refuse to
award a contract to or enter into a transaction with an apparent low
bidder or successful proposer that is indebted to the school district. 
 
  (c)  Defines "person."

SECTION 4.  Effective date:  September 1, 2003.