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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of a municipality to enter into contracts |
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without competitive bidding; making conforming changes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 252.021(a), Local Government Code, is |
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amended to read as follows: |
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(a) Before a municipality may enter into a contract that |
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requires an expenditure of more than $50,000 [$25,000] from one or |
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more municipal funds, the municipality must: |
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(1) comply with the procedure prescribed by this |
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subchapter and Subchapter C for competitive sealed bidding or |
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competitive sealed proposals; |
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(2) use the reverse auction procedure, as defined by |
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Section 2155.062(d), Government Code, for purchasing; or |
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(3) comply with a method described by Subchapter H, |
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Chapter 271. |
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SECTION 2. Section 252.0215, Local Government Code, is |
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amended to read as follows: |
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Sec. 252.0215. COMPETITIVE BIDDING IN RELATION TO |
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HISTORICALLY UNDERUTILIZED BUSINESS. A municipality, in making an |
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expenditure of more than $3,000 but less than $50,000 [$25,000], |
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shall contact at least two historically underutilized businesses on |
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a rotating basis, based on information provided by the Texas |
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Building and Procurement [General Services] Commission pursuant to |
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Chapter 2161, Government Code. If the list fails to identify a |
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historically underutilized business in the county in which the |
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municipality is situated, the municipality is exempt from this |
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section. |
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SECTION 3. The change in law made by this Act to Section |
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252.021(a), Local Government Code, applies only to a contract |
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entered into on or after the effective date of this Act, and the |
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change in law made by this Act to Section 252.0215, Local Government |
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Code, applies only to an expenditure made on or after the effective |
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date of this Act. A contract entered into or expenditure made |
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before the effective date of this Act is governed by the law in |
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effect when the contract was entered into or the expenditure was |
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made, and the former law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2007. |