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A BILL TO BE ENTITLED
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AN ACT
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relating to competitive bids for water utilities contracts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 13, Water Code, is amended by adding |
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Subchapter O to read as follows: |
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SUBCHAPTER O. CONTRACTS |
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Sec. 13.551. CONTRACTS; BIDS. (a) Any contract made by a |
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utility for work must conform to the provisions of this subchapter. |
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(b) The contract must contain, incorporate by reference, or |
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have attached to it the specifications, plans, and details for work |
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included in the contract. All work must be done in accordance with |
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these specifications, plans, and details and any authorized change |
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orders under the supervision of the utility or its designee. |
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(c) The utility may adopt minimum criteria for the |
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qualifications of bidders on its contracts and for sureties issuing |
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payment and performance bonds. For contracts over $50,000, the |
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utility shall require a person who bids to submit a certified or |
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cashier's check on a responsible bank in the state equal to at least |
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two percent of the total amount of the bid, or a bid bond of at least |
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two percent of the total amount of the bid issued by a surety |
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legally authorized to do business in this state, as a good faith |
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deposit to ensure execution of the contract. Notwithstanding any |
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criteria adopted under this subsection, for a contract for more |
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than $250,000, the utility shall accept a bid bond in the amount |
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required by the utility as a bid deposit if the bid bond meets the |
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other requirements of this subsection. If the successful bidder |
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fails or refuses to enter into a proper contract with the utility, |
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or fails or refuses to furnish the payment and performance bonds |
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required by law, the bidder forfeits the deposit. The payment, |
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performance, and bid bonding requirements of this subsection do not |
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apply to a contract for the purchase of equipment, materials, or |
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machinery not otherwise incorporated into a construction project. |
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(d) This section does not apply to a utility that, under |
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Subchapter K, is under receivership or temporary management. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2011. |