81R1090 DRH-D

By: Flynn H.B. No. 78

A BILL TO BE ENTITLED

AN ACT

relating to the amount of a county expenditure for which competitive bidding is required.

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

SECTION 1. Section 262.003(a), Local Government Code, is amended to read as follows:

(a) Any law that requires a county to follow a competitive bidding procedure in making a purchase requiring the expenditure of $50,000 [$25,000] or less does not apply to the purchase of an item available for purchase from only one supplier.

SECTION 2. Section 262.023(a), Local Government Code, is amended to read as follows:

(a) Before a county may purchase one or more items under a contract that will require an expenditure exceeding $50,000 [$25,000], the commissioners court of the county must:

(1) comply with the competitive bidding or competitive proposal procedures prescribed by this subchapter;

(2) use the reverse auction procedure, as defined by Section 2155.062(d), Government Code, for purchasing; or

(3) comply with a method described by Subchapter H, Chapter 271.

SECTION 3. Section 271.024, Local Government Code, is amended to read as follows:

Sec. 271.024. COMPETITIVE BIDDING PROCEDURE APPLICABLE TO CONTRACT. The bidding of [If a governmental entity is required by statute to award] a contract awarded by a governmental entity for the construction, repair, or renovation of a structure, road, highway, or other improvement or addition to real property [on the basis of competitive bids, and if the contract requires the expenditure of more than $25,000 from the funds of the entity, the bidding on the contract] must be accomplished in the manner provided by this subchapter if:

(1) a statute requires the governmental entity to award the contract on the basis of competitive bids; and

(2) the contract requires the expenditure of more than:

(A) $25,000 from the funds of a governmental entity other than a county; or

(B) $50,000 from the funds of a county.

SECTION 4. Section 363.156(b), Local Government Code, is amended to read as follows:

(b) To the extent competitive bidding procedures in Title 8 apply, the board may not enter purchasing contracts that involve spending more than $50,000 [$25,000] unless the board complies with:

(1) Subchapter C, Chapter 262, if the district was created by a county; or

(2) Chapter 252, if the district was created by a municipality.

SECTION 5. The change in law made by this Act applies only to a contract awarded on or after the effective date of this Act.

SECTION 6. This Act takes effect September 1, 2009.