By: Isett (Senate Sponsor - Duncan) H.B. No. 664
(In the Senate - Received from the House May 4, 2005;
May 5, 2005, read first time and referred to Committee on
Intergovernmental Relations; May 21, 2005, reported adversely,
with favorable Committee Substitute by the following vote: Yeas 5,
Nays 0; May 21, 2005, sent to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 664 By: Wentworth
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, other than construction 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)Subsection (b)(2) does not apply to the purchase of
telecommunications services as defined in 47 U.S.C 153(46) or
information services as defined in 47 U.S.C 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 for the
items and services listed in that section. This subsection does not
apply to the purchase of telecommunications services as defined in
47 U.S.C 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 defined in 47 U.S.C 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.
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