79R2686 MXM-D
By: Isett 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. Section 271.905(b), Local Government Code, is
amended to read as follows:
(b) In purchasing under this title any real property, [or]
personal property that is not affixed to real property, or
services, if a local government receives one or more bids from a
bidder whose principal place of business is in the local government
and whose bid is within five [three] percent of the lowest bid price
received by the local government from a bidder who is not a resident
of the local government, the local government may enter into a
contract with:
(1) the lowest bidder; or
(2) the bidder whose principal place of business is in
the local government if the governing body of the local government
determines, in writing, that the local bidder offers the local
government the best combination of contract price and additional
economic development opportunities for the local government
created by the contract award, including the employment of
residents of the local government and increased tax revenues to the
local government.
SECTION 2. Section 44.031, Education Code, is amended by
adding Subsection (b-1) to read as follows:
(b-1) In awarding a contract using a method described under
Subsection (a)(1) or (a)(2), a school district may consider a
bidder's or offeror's principal place of business in the manner
provided by Section 271.905, 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 under this section, a school
district may consider a bidder's principal place of business in the
manner provided by Section 271.905, Local Government Code.
SECTION 4. This Act applies only to a contract for which the
initial notice soliciting bids or proposals is given on or after the
effective date of this Act. A contract for which the initial notice
soliciting bids or proposals 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.