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A BILL TO BE ENTITLED
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AN ACT
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relating to the purchasing methods available to a county when |
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paying with certain funds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 262.023, Local Government Code, is |
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amended by amending Subsection (b) and adding Subsection (b-1) to |
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read as follows: |
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(b) The requirements established by Subsection (a) apply to |
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contracts for which payment will be made from current funds or bond |
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funds or through anticipation notes authorized by Chapter 1431, |
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Government Code, or time warrants. Contracts for which payments |
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will be made through certificates of obligation are governed by The |
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Certificate of Obligation Act of 1971 (Subchapter C, Chapter 271). |
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[Contracts for which payment will be made through anticipation
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notes are subject to the competitive bidding provisions of The
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Certificate of Obligation Act of 1971 (Subchapter C, Chapter 271)
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in the same manner as certificates of obligation.] |
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(b-1) A county that complies with a method described by |
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Subchapter H, Chapter 271, as provided by Subsection (a)(3), to |
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enter into a contract for which payment will be made through |
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anticipation notes authorized by Chapter 1431, Government Code, may |
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not issue anticipation notes for the payment of that contract in an |
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amount that exceeds the lesser of: |
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(1) 20 percent of the county's budget for the fiscal |
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year in which the county enters into the contract; or |
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(2) $10 million. |
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SECTION 2. The changes in law made by this Act apply only to |
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a contract entered into on or after the effective date of this Act. |
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A contract entered into before the effective date of this Act is |
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governed by the law in effect when the contract was entered into, |
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and the former law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2007. |