H.B. No. 664
AN ACT
relating to consideration of a bidder's principal place of business
in awarding certain municipal and school district contracts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter Z, Chapter 271, Local Government
Code, is amended by adding Section 271.9051 to read as follows:
Sec. 271.9051. CONSIDERATION OF LOCATION OF BIDDER'S
PRINCIPAL PLACE OF BUSINESS IN CERTAIN MUNICIPALITIES. (a) This
section applies only to a municipality with a population of less
than 250,000 that is authorized under this title to purchase real
property or personal property that is not affixed to real property.
(b) In purchasing under this title any real property,
personal property that is not affixed to real property, or
services, if a municipality receives one or more competitive sealed
bids from a bidder whose principal place of business is in the
municipality and whose bid is within five percent of the lowest bid
price received by the municipality from a bidder who is not a
resident of the municipality, the municipality may enter into a
contract with:
(1) the lowest bidder; or
(2) the bidder whose principal place of business is in
the municipality if the governing body of the municipality
determines, in writing, that the local bidder offers the
municipality the best combination of contract price and additional
economic development opportunities for the municipality created by
the contract award, including the employment of residents of the
municipality and increased tax revenues to the municipality.
(c) This section does not prohibit a municipality from
rejecting all bids.
(d) This section does not apply to the purchase of
telecommunications services or information services, as those
terms are defined by 47 U.S.C. Section 153.
SECTION 2. Section 44.031, Education Code, is amended by
adding Subsection (b-1) to read as follows:
(b-1) In awarding a contract by competitive sealed bid under
this section, a school district that has its central administrative
office located in a municipality with a population of less than
250,000 may consider a bidder's principal place of business in the
manner provided by Section 271.9051, Local Government Code. This
subsection does not apply to the purchase of telecommunications
services or information services, as those terms are defined by 47
U.S.C. Section 153.
SECTION 3. Section 44.033, Education Code, is amended by
amending Subsection (c) and adding Subsection (f) to read as
follows:
(c) Before the district makes a purchase from a category of
personal property, the district must obtain written or telephone
price quotations from at least three vendors from the list for that
category. If fewer than three vendors are on the list, the district
shall contact each vendor on the list. Whenever possible, telephone
quotes should be confirmed in writing by mail or facsimile. The
bidding records must be retained with the school's competitive
bidding records and are subject to audit. Except as provided by
Subsection (f), the [The] purchase shall be made from the lowest
responsible bidder.
(f) In awarding a contract by competitive sealed bid under
this section, a school district that has its central administrative
office located in a municipality with a population of less than
250,000 may consider a bidder's principal place of business in the
manner provided by Section 271.9051, Local Government Code. This
subsection does not apply to the purchase of telecommunications
services or information services, as those terms are defined by 47
U.S.C. Section 153.
SECTION 4. This Act applies only to a contract for which the
initial notice soliciting bids is given on or after the effective
date of this Act. A contract for which the initial notice
soliciting bids is given before that date is governed by the law in
effect when the initial notice is given, and the former law is
continued in effect for that purpose.
SECTION 5. This Act takes effect September 1, 2005.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 664 was passed by the House on May 3,
2005, by a non-record vote; that the House refused to concur in
Senate amendments to H.B. No. 664 on May 26, 2005, and requested the
appointment of a conference committee to consider the differences
between the two houses; and that the House adopted the conference
committee report on H.B. No. 664 on May 29, 2005, by a non-record
vote.
______________________________
Chief Clerk of the House
I certify that H.B. No. 664 was passed by the Senate, with
amendments, on May 24, 2005, by the following vote: Yeas 30, Nays
1; at the request of the House, the Senate appointed a conference
committee to consider the differences between the two houses; and
that the Senate adopted the conference committee report on H.B. No.
664 on May 29, 2005, by a viva-voce vote.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor