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A BILL TO BE ENTITLED
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AN ACT
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relating to the threshold amount at which certain water districts |
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are required to solicit competitive bids before awarding certain |
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contracts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 49.271(c), Water Code, is amended to |
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read as follows: |
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(c) The district may adopt minimum criteria for the |
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qualifications of bidders on its construction contracts and for |
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sureties issuing payment and performance bonds. For construction |
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contracts over $50,000 [$25,000], the district shall require a |
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person who bids to submit a certified or cashier's check on a |
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responsible bank in the state equal to at least two percent of the |
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total amount of the bid, or a bid bond of at least two percent of the |
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total amount of the bid issued by a surety legally authorized to do |
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business in this state, as a good faith deposit to ensure execution |
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of the contract. If the successful bidder fails or refuses to enter |
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into a proper contract with the district, or fails or refuses to |
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furnish the payment and performance bonds required by law, the |
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bidder forfeits the deposit. The payment, performance, and bid |
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bonding requirements of this subsection do not apply to a contract |
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for the purchase of equipment, materials, or machinery not |
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otherwise incorporated into a construction project. |
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SECTION 2. Section 49.273, Water Code, is amended by |
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amending Subsections (d), (e), and (f) and adding Subsection (m) to |
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read as follows: |
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(d) For contracts over $50,000 [for $25,000 or more], the |
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board shall advertise the letting of the contract, including the |
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general conditions, time, and place of opening of sealed bids. The |
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notice shall be published in one or more newspapers circulated in |
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each county in which part of the district is located. If one |
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newspaper meets both of these requirements, publication in such |
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newspaper is sufficient. If there are more than four counties in |
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the district, notice may be published in any newspaper with general |
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circulation in the district. The notice shall be published once a |
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week for three consecutive weeks before the date that the bids are |
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opened, and the first publication shall be not later than the 21st |
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day before the date of the opening of the sealed bids. |
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(e) For contracts over $25,000 [for $15,000 or more] but not |
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more [less] than $50,000 [$25,000], the board shall solicit written |
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competitive bids on uniform written specifications from at least |
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three bidders. |
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(f) For contracts of not more [less] than $25,000 [$15,000], |
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the board is not required to advertise or seek competitive bids. |
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(m) In accordance with this section, the board of a district |
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created by special law may elect to contract for the construction |
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and repair and renovation of district facilities and for the |
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purchase of equipment, materials, machinery, and all things that |
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constitute or will constitute the plant, works, facilities, or |
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improvements of the district, not withstanding a conflicting |
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provision in the district's special law. For such a district, an |
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election under this subsection must be by resolution of the board |
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and applies only to a contract entered into on or after the |
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effective date of the resolution. |
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SECTION 3. The change in law made by this Act applies only |
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to a contract entered into on or after the effective date of this |
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Act. A contract entered into before the effective date of this Act |
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is governed by the law in effect on the date the contract was |
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entered into, and the former law is continued in effect for that |
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purpose. |
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SECTION 4. This Act takes effect September 1, 2007. |