C.S.S.B. 850 78(R)    BILL ANALYSIS


C.S.S.B. 850
By: Lindsay
County Affairs
Committee Report (Substituted)



BACKGROUND 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. As
proposed, SB 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
It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS
SECTION 1. Amends Chapter 252C, 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
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 an apparent low
bidder or successful proposer who is indebted to the municipality. (c)
Defines "person."  
SECTION 2. Amends Chapter 262C, 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 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 an apparent low bidder or successful
proposer who is indebted to the county. (c) Defines "person."  
SECTION 3. Amends Chapter 44B, 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 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 an apparent low bidder or successful proposer who is
indebted to the school district. (c) Defines "person."  

SECTION 4.  Effective Date.

EFFECTIVE DATE
September 1, 2003.

COMPARISON OF ORIGINAL TO SUBSTITUTE
The committee substitute includes two technical changes to the bill.  "OR
FIRM" is removed 
from each section title of the bill, on lines 7 and 23 of page 1 and line
16 on page 2.  "Person" is clearly defined in the bill, "or firm" is
redundant.  To ensure all contracts and transactions a local governmental
entity or school district may enter into are covered -- where competitive
biding statues apply -- the phrases "or other transaction" or "enter into
a transaction with" were added after the word "contract" in each paragraph
of the bill.