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


Senate Research Center   S.B. 850
By: Lindsay
Intergovernmental Relations
3/17/2003
As Filed


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.  As
proposed, 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 Chapter 252C, Local Government Code, by adding Section
252.0436, as follows: 
 
Sec. 252.0436.  CONTRACT WITH PERSON OR FIRM 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 OR FIRM 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 OR FIRM 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:  September 1, 2003.