S.B. No. 850




AN ACT

relating to allowing local governments and school districts to 
prohibit contracts or other transactions with delinquent 
taxpayers.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter C, Chapter 252, Local Government 
Code, is amended by adding Section 252.0436 to read as follows:
	Sec. 252.0436.  CONTRACT WITH PERSON INDEBTED TO 
MUNICIPALITY.  (a)  A municipality by ordinance may establish 
regulations permitting the municipality to refuse to enter into a 
contract or other transaction with a person indebted to the 
municipality.
	(b)  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)  In this section, "person" includes an individual, sole 
proprietorship, corporation, nonprofit corporation, partnership, 
joint venture, limited liability company, and any other entity that 
proposes or otherwise seeks to enter into a contract or other 
transaction with the municipality requiring approval by the 
governing body of the municipality.
	SECTION 2.  Subchapter C, Chapter 262, Local Government 
Code, is amended by adding Section 262.0276 to read as follows:
	Sec. 262.0276.  CONTRACT WITH PERSON INDEBTED TO COUNTY.  
(a)  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, the commissioners court may 
adopt rules permitting the county to refuse to enter into a contract 
or other transaction with a person indebted to the county.
	(b)  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 that is indebted to the county.
	(c)  In this section, "person" includes an individual, sole 
proprietorship, corporation, nonprofit corporation, partnership, 
joint venture, limited liability company, and any other entity that 
proposes or otherwise seeks to enter into a contract or other 
transaction with the county requiring approval by the commissioners 
court.
	SECTION 3.  Subchapter B, Chapter 44, Education Code, is 
amended by adding Section 44.044 to read as follows:
	Sec. 44.044.  CONTRACT WITH PERSON INDEBTED TO SCHOOL 
DISTRICT.  (a)  The board of trustees of a school district by 
resolution may 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)  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)  In this section, "person" includes an individual, sole 
proprietorship, corporation, nonprofit corporation, partnership, 
joint venture, limited liability company, and any other entity that 
proposes or otherwise seeks to enter into a contract or other 
transaction with the school district requiring approval by the 
board.
	SECTION 4.  This Act takes effect September 1, 2003.                           

                                                                              




______________________________    ______________________________
President of the Senate             Speaker of the House
	I hereby certify that S.B. No. 850 passed the Senate on 
April 3, 2003, by the following vote:  Yeas 31, Nays 0; and that 
the Senate concurred in House amendment on May 9, 2003, by a 
viva-voce vote.




______________________________ 
   Secretary of the Senate             
	I hereby certify that S.B. No. 850 passed the House, with 
amendment, on May 6, 2003, by a non-record vote.




______________________________ 
   Chief Clerk of the House            



Approved:


______________________________ 
            Date



______________________________ 
          Governor