By: Hinojosa S.B. No. 1531

(In the Senate - Filed March 8, 2007; March 20, 2007, read first time and referred to Committee on Natural Resources; April 24, 2007, reported favorably by the following vote: Yeas 9, Nays 0; April 24, 2007, sent to printer.)

A BILL TO BE ENTITLED

AN ACT

relating to disposing of salvage or surplus personal property and purchasing by navigation districts.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subsection (b), Section 60.120, Water Code, is amended to read as follows:

(b) Any contract, lease, or agreement entered into under Subsection (a) of this section shall be approved by resolution of the commission and shall be executed by the chairman, the executive director of the district, or an authorized representative of the executive director [and attested by the secretary of the commission].

SECTION 2. Section 60.153, Water Code, is amended to read as follows:

Sec. 60.153. EXECUTION OF CONTRACTS. A contract entered into by a district under this subchapter shall be approved by resolution of the commission, executed by the presiding officer of the commission, the executive director of the district, or an authorized representative of the executive director, and duly attested by the corporate seal of the district.

SECTION 3. Subsections (a) and (b), Section 60.403, Water Code, are amended to read as follows:

(a) A port commission, an authorized designated officer of the port commission, the executive director of the district or the port authority, or an authorized representative of the executive director [or authorized designated employee of a port authority or district] may make routine purchases or contracts in an amount not to exceed $25,000.

(b) Before a purchase is made, a purchase order or other form of precommitment approval must be signed by the executive director of the district or the port authority or an authorized representative of the executive director [the authorized designated officer]. For routine contracts or purchases, the precommitment approval may be in the form of a list of approved routine purchases or contracts signed by the executive director. The signed list shall remain on file in the offices of the district or port authority.

SECTION 4. Subsection (b), Section 60.410, Water Code, is amended to read as follows:

(b) If a change order involves an increase or decrease in cost [of $15,000 or] less than or equal to the amount authorized in Section 60.403(a) for routine purchases or contracts, a port commission may grant general authority to an employee to approve the change order. However, the original contract price may not be increased by more than 25 percent or decreased by 18 percent or more without the consent of the contractor.

SECTION 5. Subsection (a), Section 60.4125, Water Code, is amended to read as follows:

(a) Notwithstanding the other provisions of this subchapter or any other law, a district or port authority may make a purchase or enter into a contract valued at [$25,000 or] more than the amount authorized in Section 60.403(a) for routine purchases or contracts by any method available to a school district, including all procedures and limitations, under Subchapter B, Chapter 44, Education Code, that, in the opinion of the port commission, provides the best value to the district or port authority.

SECTION 6. Section 60.454, Water Code, is amended to read as follows:

Sec. 60.454. PURCHASING CONTRACT METHODS. Notwithstanding any other provision of this chapter or other law, a district contract valued at [$25,000 or] more than the amount authorized in Section 60.403(a) for routine purchases or contracts in the aggregate for each 12-month period may be made by the method below that, in the opinion of the district's commission, provides the best value for the district:

(1) a design-build contract to construct, rehabilitate, alter, or repair facilities;

(2) a contract to construct, rehabilitate, alter, or repair facilities that involves using a construction manager-agent or construction manager-at-risk;

(3) competitive sealed proposals for construction, repair, rehabilitation, or alteration of a facility, and nonconstruction items;

(4) a job order contract for the construction, repair, rehabilitation, or alteration of a facility;

(5) a request for proposals, if the contract is for items [services] other than construction services;

(6) competitive sealed bids;

(7) a catalog purchase as provided by Subchapter B, Chapter 2157, Government Code;

(8) an interlocal contract as provided by Chapter 791, Government Code;

(9) the reverse auction procedure as defined by Section 2155.062(d), Government Code;

(10) a contract with the United States, including any agency thereof; or

(11) a contract with this state, including an agency of this state.

SECTION 7. Subsection (d), Section 60.463, Water Code, is amended to read as follows:

(d) The district shall prepare a request for competitive sealed proposals that includes construction documents, selection criteria, [estimated budget,] project scope, schedule, and other information that contractors may require to respond to the request. The district shall state in the request for proposals the selection criteria that will be used in selecting the successful offeror.

SECTION 8. Section 62.113, Water Code, is amended to read as follows:

Sec. 62.113. FORM OF CONTRACTS. All contracts made by the commission shall be in writing and signed by the contractors and at least two of the commissioners, the executive director of the district, or an authorized representative of the executive director. [A copy of the contract shall be filed with the county clerk.]

SECTION 9. Subchapter D, Chapter 62, Water Code, is amended by adding Section 62.122 to read as follows:

Sec. 62.122. DISPOSITION OF SALVAGE OR SURPLUS PERSONAL PROPERTY. The commission may periodically dispose of surplus or salvage personal property in the same manner as the commissioners court of a county under Subchapter D, Chapter 263, Local Government Code.

SECTION 10. Section 63.172, Water Code, is amended to read as follows:

Sec. 63.172. FORMAL REQUIREMENTS OF CONTRACT. [(a)] A contract entered into by the district shall be in writing and signed by the contractors and the commissioners, [or] any two of the commissioners, the executive director of the district, or an authorized representative of the executive director.

[(b) A copy of the contract shall be filed with the county clerk for reference.]

SECTION 11. (a) Except as provided by Subsection (b) of this section, the changes in law made by this Act related to contracts and purchases made by a navigation district or port authority apply only to a contract entered into or purchase made on or after the effective date of this Act. A contract entered into or purchase made before the effective date of this Act is governed by the law in effect on the date the contract was entered into or the purchase was made, and that law is continued in effect for that purpose.

(b) Sections 60.410 and 60.454, Water Code, as amended by this Act, apply to a contract entered into before, on, or after the effective date of this Act. A contract entered into by a navigation district or port authority under one of those sections before the effective date of this Act is validated in all respects as if the contract were entered into as authorized by law.

SECTION 12. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2007.

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