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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. Subsection (a), Section 252.021, Local |
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Government Code, is 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. Subsection (a), Section 252.022, Local |
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Government Code, is amended to read as follows: |
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(a) This chapter does not apply to an expenditure for: |
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(1) a procurement made because of a public calamity |
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that requires the immediate appropriation of money to relieve the |
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necessity of the municipality's residents or to preserve the |
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property of the municipality; |
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(2) a procurement necessary to preserve or protect the |
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public health or safety of the municipality's residents; |
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(3) a procurement necessary because of unforeseen |
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damage to public machinery, equipment, or other property; |
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(4) a procurement for personal, professional, or |
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planning services; |
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(5) a procurement for work that is performed and paid |
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for by the day as the work progresses; |
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(6) a purchase of land or a right-of-way; |
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(7) a procurement of items that are available from |
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only one source, including: |
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(A) items that are available from only one source |
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because of patents, copyrights, secret processes, or natural |
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monopolies; |
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(B) films, manuscripts, or books; |
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(C) gas, water, and other utility services; |
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(D) captive replacement parts or components for |
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equipment; |
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(E) books, papers, and other library materials |
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for a public library that are available only from the persons |
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holding exclusive distribution rights to the materials; and |
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(F) management services provided by a nonprofit |
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organization to a municipal museum, park, zoo, or other facility to |
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which the organization has provided significant financial or other |
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benefits; |
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(8) a purchase of rare books, papers, and other |
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library materials for a public library; |
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(9) paving drainage, street widening, and other public |
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improvements, or related matters, if at least one-third of the cost |
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is to be paid by or through special assessments levied on property |
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that will benefit from the improvements; |
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(10) a public improvement project, already in |
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progress, authorized by the voters of the municipality, for which |
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there is a deficiency of funds for completing the project in |
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accordance with the plans and purposes authorized by the voters; |
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(11) a payment under a contract by which a developer |
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participates in the construction of a public improvement as |
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provided by Subchapter C, Chapter 212; |
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(12) personal property sold: |
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(A) at an auction by a state licensed auctioneer; |
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(B) at a going out of business sale held in |
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compliance with Subchapter F, Chapter 17, Business & Commerce Code; |
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(C) by a political subdivision of this state, a |
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state agency of this state, or an entity of the federal government; |
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or |
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(D) under an interlocal contract for cooperative |
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purchasing administered by a regional planning commission |
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established under Chapter 391; |
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(13) services performed by blind or severely disabled |
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persons; |
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(14) goods purchased by a municipality for subsequent |
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retail sale by the municipality; [or] |
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(15) electricity; or |
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(16) advertising, other than legal notices. |
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SECTION 4. The change in law made by this Act to Subsection |
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(a), Section 252.021, Local Government Code, applies only to a |
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contract entered into on or after the effective date of this Act, |
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and the change in law made by this Act to Section 252.0215, Local |
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Government Code, applies only to an expenditure made on or after the |
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effective date of this Act. A contract entered into or expenditure |
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made 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 5. This Act takes effect September 1, 2007. |