By:  Madden                                                       H.B. No. 2528

Substitute the following for H.B. No. 2528:                                   

By:  Madden                                                   C.S.H.B. No. 2528



A BILL TO BE ENTITLED

AN ACT

relating to the authority of school districts to purchase 
electricity through a political subdivision corporation.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subsection (a), Section 44.031, Education Code, 
is amended to read as follows:
	(a)  Except as provided by this subchapter, all school 
district contracts, except contracts for the purchase of produce or 
vehicle fuel, valued at $25,000 or more in the aggregate for each 
12-month period shall be made by the method, of the following 
methods, that provides the best value for the district:
		(1)  competitive bidding;                                                     
		(2)  competitive sealed proposals;                                            
		(3)  a request for proposals, for services other than 
construction services;
		(4)  a catalogue purchase as provided by Subchapter B, 
Chapter 2157, Government Code;
		(5)  an interlocal contract;                                                  
		(6)  a design/build contract;                                                 
		(7)  a contract to construct, rehabilitate, alter, or 
repair facilities that involves using a construction manager;
		(8)  a job order contract for the minor construction, 
repair, rehabilitation, or alteration of a facility; [or]
		(9)  the reverse auction procedure as defined by 
Section 2155.062(d), Government Code; or
		(10)  the formation of a political subdivision 
corporation under Section 304.001, Local Government Code.
	SECTION 2.  Subsection (a), Section 304.001, Local 
Government Code, is amended to read as follows:
	(a)  In this chapter, "political subdivision" means a 
county, municipality, school district, hospital district, or any 
other political subdivision receiving electric service from an 
entity that has implemented customer choice, as defined in Section 
31.002, Utilities Code.
	SECTION 3.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.