79R6800 MXM-D


By:  Isett                                                        H.B. No. 664

Substitute the following for H.B. No. 664:                                    

By:  Smith of Harris                                          C.S.H.B. No. 664



A BILL TO BE ENTITLED

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.
	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.
	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.
	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.