By: Seliger  S.B. No. 657
         (In the Senate - Filed February 15, 2007; February 28, 2007,
  read first time and referred to Committee on Natural Resources;
  April 3, 2007, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 10, Nays 0; April 3, 2007,
  sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 657 By:  Brimer
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the threshold amount at which certain water districts
  are required to solicit competitive bids before awarding certain
  contracts and to the ability of such districts to enter those
  contracts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subsection (c), Section 49.271, Water Code, is
  amended to read as follows:
         (c)  The district may adopt minimum criteria for the
  qualifications of bidders on its construction contracts and for
  sureties issuing payment and performance bonds. For construction
  contracts over $50,000 [$25,000], the district shall require a
  person who bids to submit a certified or cashier's check on a
  responsible bank in the state equal to at least two percent of the
  total amount of the bid, or a bid bond of at least two percent of the
  total amount of the bid issued by a surety legally authorized to do
  business in this state, as a good faith deposit to ensure execution
  of the contract. If the successful bidder fails or refuses to enter
  into a proper contract with the district, or fails or refuses to
  furnish the payment and performance bonds required by law, the
  bidder forfeits the deposit. The payment, performance, and bid
  bonding requirements of this subsection do not apply to a contract
  for the purchase of equipment, materials, or machinery not
  otherwise incorporated into a construction project.
         SECTION 2.  Section 49.273, Water Code, is amended by
  amending Subsections (d), (e), and (f) and adding Subsection (m) to
  read as follows:
         (d)  For contracts over $50,000 [for $25,000 or more], the
  board shall advertise the letting of the contract, including the
  general conditions, time, and place of opening of sealed bids. The
  notice shall be published in one or more newspapers circulated in
  each county in which part of the district is located. If one
  newspaper meets both of these requirements, publication in such
  newspaper is sufficient. If there are more than four counties in
  the district, notice may be published in any newspaper with general
  circulation in the district. The notice shall be published once a
  week for two [three] consecutive weeks before the date that the bids
  are opened, and the first publication shall be not later than the
  21st day before the date of the opening of the sealed bids.
         (e)  For contracts over $25,000 [for $15,000 or more] but not
  more [less] than $50,000 [$25,000], the board shall solicit written
  competitive bids on uniform written specifications from at least
  three bidders.
         (f)  For contracts of not more [less] than $25,000 [$15,000],
  the board is not required to advertise or seek competitive bids.
         (m)  In accordance with this section, the board of a district
  created by special law may elect to contract for the construction
  and repair and renovation of district facilities and for the
  purchase of equipment, materials, machinery, and all things that
  constitute or will constitute the plant, works, facilities, or
  improvements of the district, not withstanding a conflicting
  provision in the district's special law. For such a district, an
  election under this subsection must be by resolution of the board
  and applies only to a contract entered into on or after the
  effective date of the resolution.
         SECTION 3.  The change in law made by this Act applies only
  to a contract entered into on or after the effective date of this
  Act. A contract entered into before the effective date of this Act
  is governed by the law in effect on the date the contract was
  entered into, and the former law is continued in effect for that
  purpose.
         SECTION 4.  This Act takes effect September 1, 2007.
 
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