Texas 2011 - 82nd Regular

Texas Senate Bill SB640

Voted on by Senate
 
Out of House Committee
 
Voted on by House
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to consideration of a bidder's principal place of business in awarding certain municipal contracts.

Impact

The bill is expected to have a notable impact on local economies by potentially increasing job opportunities for residents and enhancing local tax revenues through contractors' business activities. By prioritizing local bidders, municipalities may create a more conducive environment for business growth within their communities. However, the measure is limited to contracts not exceeding $500,000, thereby targeting smaller local contracts rather than larger projects that may involve more extensive bidding processes.

Summary

Senate Bill 640 pertains to the consideration of a bidder's principal place of business when awarding certain municipal contracts. The bill amends the Local Government Code to allow municipalities to favor local bidders over non-resident bidders under specific circumstances. If a local bidder submits a bid that is within five percent of the lowest bid from a non-resident contractor, the municipality can choose to award the contract to the local bidder, provided the local bidder offers additional economic development opportunities. This change aims to stimulate local economies by keeping contracts within the municipality.

Sentiment

The general sentiment surrounding SB640 appears to be supportive among proponents who argue that it fosters local economic development and promotes community interests. However, there are concerns regarding the potential for decreased competition among bidders, which could lead to higher prices or reduced quality of work. Critics may contend that such measures could inadvertently disadvantage non-local bidders who bring expertise or competitive pricing.

Contention

One notable point of contention involves the balance between supporting local businesses and maintaining a fair competitive bidding process. While proponents argue that the bill helps local economies, opponents warn that it might restrict access for experienced non-resident contractors who can offer better services at competitive rates. This debate highlights the challenges in policy-making aimed at promoting local interests without compromising the principles of competition and value.

Companion Bills

TX HB1283

Identical Relating to consideration of a bidder's principal place of business in awarding certain municipal contracts.

Previously Filed As

TX HB3245

Relating to consideration of the location of a bidder's principal place of business in certain municipality contracts.

TX HB5200

Relating to consideration of location of an offeror's principal place of business in awarding certain municipal contracts.

TX HB4936

Relating to the awarding of state agency contracts to new businesses.

TX HB2182

Relating to the consideration of ownership interests of certain persons in determining whether a business is a historically underutilized business for purposes of state contracting.

TX SB877

Relating to the consideration of ownership interests of certain persons in determining whether a business is a historically underutilized business for purposes of state contracting.

TX HB5140

Relating to a prohibition against the consideration of race or ethnicity as a factor in governmental employment or contracting, in other governmental functions, and in higher education admissions.

TX HB1717

Relating to the consideration of ownership interests of certain persons with a disability in determining whether a business is a historically underutilized business for purposes of state contracting.

TX HB1413

Relating to the awarding of certain contracts for software, hardware, or technology services.

TX HB4822

Relating to the awarding of certain contracts for software, hardware, or technology services.

TX HB4937

Relating to reporting on state contracts awarded to new businesses.

Similar Bills

No similar bills found.