Texas 2009 - 81st Regular

Texas House Bill HB3487 Compare Versions

The same version is selected twice. Please select two different versions to compare.

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	By: Coleman (Senate Sponsor - West) H.B. No. 3487
2	2	(In the Senate - Received from the House May 6, 2009;
3	3	May 7, 2009, read first time and referred to Committee on
4	4	Intergovernmental Relations; May 18, 2009, reported adversely,
5	5	with favorable Committee Substitute by the following vote: Yeas 5,
6	6	Nays 0; May 18, 2009, sent to printer.)
7	7	COMMITTEE SUBSTITUTE FOR H.B. No. 3487 By: West
8	8
9	9
10	10	A BILL TO BE ENTITLED
11	11	AN ACT
12	12	relating to the purchasing and contracting authority of counties;
13	13	providing penalties.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. Section 262.002, Local Government Code, is
16	16	amended to read as follows:
17	17	Sec. 262.002. AUTHORITY TO COOPERATIVELY PURCHASE GOODS
18	18	[ROAD EQUIPMENT] AND SERVICES [TIRES THROUGH COMPTROLLER]. (a) A
19	19	county may purchase an item through a cooperative purchasing
20	20	program. The program must use a competitive bidding procedure if
21	21	the item is otherwise required by law to be purchased through a
22	22	competitive bidding procedure. [The commissioners court of a county
23	23	may purchase through the comptroller road machinery and equipment,
24	24	tires, and tubes to be used by the county.]
25	25	(b) A county may purchase an item according to a competitive
26	26	bidding procedure promulgated by an authorized state agency if the
27	27	item is otherwise required by law to be purchased through a
28	28	competitive bidding procedure. [The commission must purchase an
29	29	item under this section on competitive bids and in accordance with
30	30	any rules of the commission.]
31	31	(c) A county may purchase an item cooperatively through an
32	32	interlocal agreement. The agreement must provide for a competitive
33	33	bidding procedure if the item is otherwise required by law to be
34	34	purchased through a competitive bidding procedure. [A purchase
35	35	under this section must be made on the requisition of the
36	36	commissioners court. When the court sends the requisition to the
37	37	commission, the court must include with the requisition a general
38	38	description of the item desired and a certification of the funds
39	39	available to pay for the item.]
40	40	(d) A cooperative purchase under this section does not
41	41	violate competitive bidding statutes. [The commission may adopt
42	42	rules to carry out the purpose of this section.]
43	43	SECTION 2. Section 262.003, Local Government Code, is
44	44	amended to read as follows:
45	45	Sec. 262.003. SMALL, SOLE-SOURCE PURCHASE EXEMPT FROM
46	46	COMPETITIVE BIDDING. [(a) Any law that requires a county to follow
47	47	a competitive bidding procedure in making a purchase requiring the
48	48	expenditure of $25,000 or less does not apply to the purchase of an
49	49	item available for purchase from only one supplier.
50	50	[(b)] If a county makes a sole-source purchase as described
51	51	by Section 262.024(a)(7) [covered by Subsection (a)], the county
52	52	auditor or other appropriate county officer or employee may not
53	53	refuse payment for the purchase because a competitive bidding
54	54	procedure was not followed.
55	55	SECTION 3. Section 262.011, Local Government Code, is
56	56	amended by amending Subsections (f), (g), (k), (m), and (o) and
57	57	adding Subsection (q) to read as follows:
58	58	(f) A purchase made by the county purchasing agent shall be
59	59	paid for by an electronic transfer, check, or [a] warrant drawn by
60	60	the county auditor on funds in the county treasury in the manner
61	61	provided by law. The county auditor may not draw and the county
62	62	treasurer may not honor an electronic transfer, check, or [a]
63	63	warrant for a purchase unless the purchase is made by the county
64	64	purchasing agent or on competitive bid as provided by law.
65	65	(g) The county purchasing agent may cooperate with the
66	66	purchasing agent of a municipality in the county to purchase any
67	67	item in volume as may be necessary. The county treasurer shall
68	68	honor an electronic transfer, check, or [a] warrant drawn by the
69	69	county auditor to reimburse the municipality's purchasing agent
70	70	making the purchase for the county.
71	71	(k) The board that appoints the county purchasing agent
72	72	shall set the salary of the agent in an amount not less than $5,000 a
73	73	year, payable in equal monthly installments or by any other
74	74	distribution at the option of the county. The salary shall be paid
75	75	by an electronic transfer, check, or warrant [warrants] drawn on
76	76	funds in the county treasury.
77	77	(m) A person, including an officer, agent, or employee of a
78	78	county or of a subdivision or department of a county, commits an
79	79	offense if the person violates this section. An offense under this
80	80	subsection is a misdemeanor punishable by a fine of not less than
81	81	$10 or more than $100[, by confinement in the county jail for not
82	82	less than 30 days or more than one year, or by both the fine and
83	83	confinement]. Each act in violation of this section is a separate
84	84	offense.
85	85	(o) The county purchasing agent shall adopt the rules and
86	86	procedures necessary to implement the agent's duties under this
87	87	section subject to approval by the commissioners court.
88	88	Notwithstanding Subsection (f) or other law, rules and procedures
89	89	adopted under this subsection may include rules and procedures for
90	90	persons to use county purchasing cards to pay for county purchases
91	91	under the direction and supervision of the county purchasing agent.
92	92	Procedures for use of purchasing cards may not avoid the
93	93	competitive bidding requirements of this chapter or other
94	94	requirements of county financial law.
95	95	(q) An electronic transfer under this chapter must provide
96	96	the same level of internal controls and statutory authorizations as
97	97	required for a check or warrant.
98	98	SECTION 4. Sections 262.0115(d) and (e), Local Government
99	99	Code, are amended to read as follows:
100	100	(d) Under the supervision of the commissioners court, the
101	101	purchasing agent shall carry out the functions prescribed by law
102	102	for a purchasing agent under Section 262.011 and for any
103	103	ministerial function of the county auditor in regard to county
104	104	purchases and contracts and shall administer the procedures
105	105	prescribed by law for notice and public bidding for county
106	106	purchases and contracts.
107	107	(e) A county that has established the position of county
108	108	purchasing agent under this section may abolish the position at any
109	109	time. On the abolition of the position, the county auditor shall
110	110	assume the rights and responsibilities of bid or proposal notice
111	111	and opening under this chapter and Chapter 271 [functions
112	112	previously performed by the purchasing agent].
113	113	SECTION 5. Section 262.012, Local Government Code, is
114	114	amended to read as follows:
115	115	Sec. 262.012. [COUNTY AUDITORS AS] PURCHASING AGENTS IN
116	116	[CERTAIN] COUNTIES WITH POPULATION OF 100,000 OR LESS. (a) In a
117	117	county with a population of 100,000 or less:
118	118	(1) a county auditor may, on request of the
119	119	commissioners court, assume purchasing responsibilities [The
120	120	commissioners court of a county that employs a county auditor
121	121	jointly with one or more counties under Section 84.008 may require
122	122	the auditor to act as the purchasing agent] for the county, in
123	123	addition to performing the regular duties of the auditor as
124	124	required by law; or
125	125	(2) the commissioners court may employ a person to
126	126	serve as county purchasing agent at the pleasure of the
127	127	commissioners court.
128	128	(b) A purchasing agent employed under Subsection (a)(2):
129	129	(1) acts under the commissioners court's supervision;
130	130	(2) carries out the functions prescribed by law for
131	131	county purchases and contracts; and
132	132	(3) administers public notice and bidding procedures
133	133	for a county purchase or contract. [In a county with a population
134	134	of 41,680 to 42,100, the county auditor shall act as the purchasing
135	135	agent for the county in addition to performing the regular duties of
136	136	the auditor as required by law.]
137	137	(c) This section applies only to a county in which a county
138	138	purchasing agent has not been appointed under Section 262.011.
139	139	SECTION 6. Subchapter B, Chapter 262, Local Government
140	140	Code, is amended by adding Section 262.013 to read as follows:
141	141	Sec. 262.013. QUALIFICATION. A person authorized to make a
142	142	purchase on behalf of a county or a county department or office may
143	143	not make any purchase until providing to the county or county
144	144	department or office a signed acknowledgment that the person
145	145	understands the requirements of this chapter and Chapters 263, 270,
146	146	and 271. The acknowledgment must be maintained in the person's
147	147	personnel file or with the official bond of an elected or appointed
148	148	official.
149	149	SECTION 7. Section 262.022, Local Government Code, is
150	150	amended by adding Subdivisions (3-a), (5-a), and (5-b) and amending
151	151	Subdivisions (5) and (6) to read as follows:
152	152	(3-a) "Day" means a calendar day unless otherwise
153	153	designated.
154	154	(5) "Item" means any service, equipment, good, or
155	155	other tangible or intangible personal property, including
156	156	insurance and high technology items. The term does not include
157	157	professional services as defined by Section 2254.002, Government
158	158	Code.
159	159	(5-a) "Lowest and best" means a bid or offer providing
160	160	the best value considering associated direct and indirect costs,
161	161	including transport, maintenance, reliability, life cycle,
162	162	warranties, and customer service after a sale.
163	163	(5-b) "Normal purchasing practice" means:
164	164	(A) an accepted custom, practice, or standard for
165	165	government procurement in the state; or
166	166	(B) a practice recognized by the National
167	167	Institute of Government Purchasing regarding the purchase of a
168	168	particular good or service.
169	169	(6) "Purchase" means any kind of acquisition,
170	170	including a lease, of an item regardless of the generation or return
171	171	of revenue to the county.
172	172	SECTION 8. Section 262.0225, Local Government Code, is
173	173	amended by adding Subsection (d) to read as follows:
174	174	(d) A county that complies with the competitive bidding
175	175	requirements of this chapter and receives no responsive bids for an
176	176	item may procure the item under Section 262.0245.
177	177	SECTION 9. Section 262.023, Local Government Code, is
178	178	amended by amending Subsection (c) and adding Subsections (d) and
179	179	(e) to read as follows:
180	180	(c) Under this section, a person is presumed to have intent
181	181	to avoid the competitive bidding requirement if:
182	182	(1) the person makes separate, sequential, or
183	183	component purchases of items for that person's office or department
184	184	within a single fiscal year;
185	185	(2) the office or department budget for similar items
186	186	exceeds the competitive bidding threshold; and
187	187	(3) the purchase is not office supplies [In applying
188	188	the requirements established by Subsection (a), all separate,
189	189	sequential, or component purchases of items ordered or purchased,
190	190	with the intent of avoiding the requirements of this subchapter,
191	191	from the same supplier by the same county officer, department, or
192	192	institution are treated as if they are part of a single purchase and
193	193	of a single contract. In applying this provision to the purchase of
194	194	office supplies, separate purchases of supplies by an individual
195	195	department are not considered to be part of a single purchase and
196	196	single contract by the county if a specific intent to avoid the
197	197	requirements of this subchapter is not present].
198	198	(d) A person may rebut the presumption under Subsection (c)
199	199	if the person:
200	200	(1) timely obtained an exemption for the purchases
201	201	from the commissioners court under Section 262.024;
202	202	(2) initiated competitive bidding procedures within a
203	203	reasonable time after reaching the competitive bidding threshold;
204	204	or
205	205	(3) complied with a routine competitive procurement
206	206	practice adopted by the county purchasing agent or commissioners
207	207	court under Section 262.0245.
208	208	(e) In applying the requirements established in Subsection
209	209	(a), "expenditure" means the final price to be paid for the item or
210	210	items purchased.
211	211	SECTION 10. Section 262.024, Local Government Code, is
212	212	amended by amending Subsections (a), (b), and (d) and adding
213	213	Subsection (b-1) to read as follows:
214	214	(a) A contract for the purchase of any of the following
215	215	items is exempt from the requirement established by Section 262.023
216	216	if the commissioners court by order grants the exemption:
217	217	(1) an item that must be purchased in a case of public
218	218	calamity if it is necessary to make the purchase promptly to relieve
219	219	the necessity of the citizens or to preserve the property of the
220	220	county;
221	221	(2) an item necessary to preserve or protect the
222	222	public health or safety of the residents of the county;
223	223	(3) an item necessary because of unforeseen damage to
224	224	public property;
225	225	(4) a personal or professional service;
226	226	(5) any individual work performed and paid for by the
227	227	day, as the work progresses, provided that no individual is
228	228	compensated under this subsection for more than 20 working days in
229	229	any three month period;
230	230	(6) any land or right-of-way;
231	231	(7) an item that can be obtained from only one source,
232	232	including:
233	233	(A) items for which competition is precluded
234	234	because of the existence of patents, copyrights, secret processes,
235	235	or monopolies;
236	236	(B) films, manuscripts, or books;
237	237	(C) electric power, gas, water, and other utility
238	238	services; and
239	239	(D) captive replacement parts or components for
240	240	equipment;
241	241	(8) an item of food;
242	242	(9) personal property sold:
243	243	(A) at an auction by a state licensed auctioneer
244	244	or in a commercial online auction available to the general public;
245	245	(B) at a going out of business sale held in
246	246	compliance with Subchapter F, Chapter 17, Business & Commerce Code;
247	247	or
248	248	(C) by a political subdivision of this state, a
249	249	state agency of this state, or an entity of the federal government;
250	250	(10) any work performed under a contract for community
251	251	and economic development made by a county under Section 381.004;
252	252	[or]
253	253	(11) vehicle and equipment repairs; or
254	254	(12) transportation and lodging purchased in
255	255	compliance with travel policies adopted by the commissioners court.
256	256	(b) The renewal or extension of an [a lease or of an
257	257	equipment maintenance] agreement to purchase equipment, supplies,
258	258	or maintenance service is exempt from the requirement established
259	259	by Section 262.023 if the commissioners court by order grants the
260	260	exemption and if:
261	261	(1) [the lease or agreement has gone through the
262	262	competitive bidding procedure within the preceding year;
263	263	[(2)] the renewal or extension does not exceed one
264	264	year; and
265	265	(2) [(3)] the renewal or extension is the first or
266	266	second renewal or extension of the [lease or] agreement.
267	267	(b-1) The renewal or extension of an agreement to purchase
268	268	equipment, supplies, or maintenance service initially obtained
269	269	through a competitive bidding process is exempt from the
270	270	requirement established by Section 262.023.
271	271	(d) The exemption granted under Subsection (a)(8) of this
272	272	section shall apply only to the sealed competitive bidding
273	273	requirements on food purchases. Counties shall solicit at least
274	274	three bids for purchases of food items by telephone or written
275	275	quotation at intervals specified by the commissioners court.
276	276	Counties shall award food purchase contracts to the responsible
277	277	bidder who submits the lowest and best bid or shall reject all bids
278	278	and repeat the bidding process, as provided by this subsection. The
279	279	purchasing officer taking telephone or written bids under this
280	280	subsection shall maintain, on a form approved by the commissioners
281	281	court, a record of all bids solicited and the vendors contacted.
282	282	This record may be [shall be kept in the purchasing office for a
283	283	period of at least one year or until] audited by the county auditor.
284	284	SECTION 11. Section 262.0245, Local Government Code, is
285	285	amended to read as follows:
286	286	Sec. 262.0245. COMPETITIVE BIDDING PROCEDURES ADOPTED BY
287	287	COUNTY PURCHASING AGENTS OR COMMISSIONERS COURT. A county
288	288	purchasing agent or, in a county without a purchasing agent, the
289	289	commissioners court shall adopt procedures that provide for
290	290	competitive procurement [bidding], to the extent practicable under
291	291	the circumstances, for the county purchase of an item [under a
292	292	contract] that is not subject to competitive bidding under Section
293	293	262.023 or for which the county receives no responsive bid.
294	294	SECTION 12. Section 262.025, Local Government Code, is
295	295	amended by amending Subsection (a) and adding Subsections (a-1),
296	296	(b-1), and (b-2) to read as follows:
297	297	(a) A notice of a proposed purchase must be published at
298	298	least once [a week] in a newspaper of general circulation in the
299	299	county, with the first day of publication occurring at least 14 days
300	300	before the [14th day before the] date of the bid opening. If there
301	301	is no newspaper of general circulation in the county, the notice
302	302	must be posted in a [prominent] place described by Section 51.002,
303	303	Property Code, [in the courthouse] for 14 days before the date of
304	304	the bid opening. Notice published in a newspaper under this section
305	305	must include:
306	306	(1) a general statement of the proposed purchase;
307	307	(2) the name and telephone number of the purchasing
308	308	agent; and
309	309	(3) the county website address, if any.
310	310	(a-1) Nothing in Subsection (a) shall be construed to
311	311	require more than one notice in one newspaper or to limit the county
312	312	from providing additional notice for longer periods or in more
313	313	locations.
314	314	(b-1) If a county maintains an Internet website, the county,
315	315	instead of meeting the publication requirements under Subsection
316	316	(a), may:
317	317	(1) publish notice in a newspaper described by
318	318	Subsection (a) once not later than the 14th day before the bid
319	319	receipt deadline; and
320	320	(2) post notice continuously on its website for at
321	321	least 14 days immediately preceding the bid receipt deadline.
322	322	(b-2) The newspaper notice under Subsection (b-1) must
323	323	include the time and place at which the bids will be publicly opened
324	324	and the website address for the procurement information.
325	325	SECTION 13. Section 262.0255, Local Government Code, is
326	326	amended by adding Subsection (c) to read as follows:
327	327	(c) A commissioners court purchasing earth-moving,
328	328	material-handling, road maintenance, or construction equipment
329	329	under Section 271.083 of this code or Section 791.025, Government
330	330	Code, may negotiate with a vendor awarded a cooperative contract
331	331	under those sections an agreement for the vendor to purchase or
332	332	accept as trade used equipment owned by the county.
333	333	SECTION 14. Section 262.0256, Local Government Code, as
334	334	amended by Chapters 660 (H.B. 2242) and 725 (H.B. 3089), Acts of the
335	335	78th Legislature, Regular Session, 2003, is reenacted and amended
336	336	to read as follows:
337	337	Sec. 262.0256. PRE-BID CONFERENCE FOR CERTAIN COUNTIES OR A
338	338	DISTRICT GOVERNED BY THOSE COUNTIES. (a) [This section applies
339	339	only to a county with a population of 2.8 million or more.
340	340	[(b)] The commissioners court of the county or the governing
341	341	body of a district or authority created under Section 59, Article
342	342	XVI, Texas Constitution, if the governing body is the commissioners
343	343	court of the county in which the district is located, may require a
344	344	principal, officer, or employee of each prospective bidder to
345	345	attend a mandatory pre-bid conference conducted for the purpose of
346	346	discussing contract requirements and answering questions of
347	347	prospective bidders.
348	348	(b) [(c)] After a conference is conducted under Subsection
349	349	(a) [(b)], any additional required notice for the proposed purchase
350	350	may be sent by certified mail, return receipt requested, only to
351	351	prospective bidders who attended the conference. Notice under this
352	352	subsection is not subject to the requirements of Section 262.025.
353	353	SECTION 15. Section 262.026(b), Local Government Code, is
354	354	amended to read as follows:
355	355	(b) Opened bids shall be kept on file and available for
356	356	inspection by anyone desiring to see them until the first
357	357	anniversary of the date of opening.
358	358	SECTION 16. Section 262.027, Local Government Code, is
359	359	amended by amending Subsection (c) and adding Subsection (g) to
360	360	read as follows:
361	361	(c) A contract may not be awarded to a bidder who is not the
362	362	lowest dollar bidder meeting specifications unless, before the
363	363	award, each lower bidder is given:
364	364	(1) notice of the proposed award;
365	365	(2) the purchasing agent's evaluation and
366	366	recommendation to the commissioners court or the commissioners
367	367	court's evaluation of the bid as lowest and best; and
368	368	(3) [is given] an opportunity to appear before the
369	369	commissioners court and present previously unconsidered evidence
370	370	concerning the value of the lower bid, which may include evidence of
371	371	the bidder's responsibility.
372	372	(g) If after the award the successful bidder fails to
373	373	qualify for required bonds, or is otherwise unable to meet the
374	374	requirements of the award, the commissioners court may award the
375	375	contract to the next bidder in order of ranking as lowest and best
376	376	bid.
377	377	SECTION 17. Section 262.0271(b), Local Government Code, is
378	378	amended to read as follows:
379	379	(b) In purchasing items under this chapter through a
380	380	competitive bidding process, if a county receives one or more bids
381	381	from a bidder who provides reasonable [comparable] health insurance
382	382	coverage to its employees and requires a subcontractor the bidder
383	383	intends to use to provide reasonable [comparable] health insurance
384	384	coverage to the subcontractor's employees and whose bid is within
385	385	five percent of the lowest and best bid price received by the county
386	386	from a bidder who does not provide or require reasonable
387	387	[comparable] health insurance coverage, the commissioners court of
388	388	the county may give preference to the bidder who provides and
389	389	requires reasonable [comparable] health insurance coverage.
390	390	SECTION 18. Section 262.0276, Local Government Code, is
391	391	amended by amending Subsection (a) and adding Subsection (d) to
392	392	read as follows:
393	393	(a) By an order adopted and entered in the minutes of the
394	394	commissioners court and after notice is published in a newspaper of
395	395	general circulation in the county, the commissioners court may
396	396	adopt rules permitting the county to refuse to enter into a contract
397	397	or other transaction with a person who owes a debt [indebted] to the
398	398	county.
399	399	(d) In this section, "debt" includes delinquent taxes,
400	400	fines, fees, and indebtedness arising from written agreements with
401	401	the county.
402	402	SECTION 19. Section 262.0295(d), Local Government Code, is
403	403	amended to read as follows:
404	404	(d) Within 30 days after the date the unpriced proposals are
405	405	opened under Subsection (c), the county official shall present the
406	406	priced bids to the commissioners court. The award of the contract
407	407	shall be made to the responsible offeror whose bid is determined to
408	408	be the lowest and best evaluated offer resulting from negotiation.
409	409	All proposals and bids that have been submitted shall be available
410	410	and open for public inspection after the contract is awarded.
411	411	SECTION 20. Section 262.030(b), Local Government Code, is
412	412	amended to read as follows:
413	413	(b) Quotations must be solicited through a request for
414	414	proposals. Public notice for the request for proposals must be made
415	415	in the same manner as provided in the competitive bidding
416	416	procedure. The request for proposals must specify the relative
417	417	importance of price and other evaluation factors. The award of the
418	418	contract shall be made to the responsible offeror whose proposal is
419	419	determined to be the lowest and best evaluated offer resulting from
420	420	negotiation, taking into consideration the relative importance of
421	421	price and other evaluation factors set forth in the request for
422	422	proposals.
423	423	SECTION 21. Section 262.032, Local Government Code, is
424	424	amended by adding Subsection (e) to read as follows:
425	425	(e) The commissioners court may establish financial
426	426	criteria for accepting surety companies that provide bid, payment,
427	427	or performance bonds.
428	428	SECTION 22. Section 262.034, Local Government Code, is
429	429	amended to read as follows:
430	430	Sec. 262.034. CRIMINAL PENALTIES. (a) A county officer or
431	431	employee commits an offense if the officer or employee
432	432	intentionally or knowingly:
433	433	(1) violates Section 262.023; or
434	434	(2) makes or authorizes separate, sequential, or
435	435	component purchases to avoid the competitive bidding requirements
436	436	of Section 262.023.
437	437	(b) Except as provided by Subsection (c), an offense under
438	438	this section is a Class C misdemeanor.
439	439	(c) An offense under this section [subsection]is:
440	440	(1) a Class B misdemeanor if the officer or employee
441	441	has a personal relationship with the selected vendor that has not
442	442	been previously disclosed to and approved by the appropriate
443	443	governing body; or
444	444	(2) a Class A misdemeanor if the officer or employee
445	445	receives or has received from the vendor a benefit as defined by
446	446	Section 1.07, Penal Code, not provided to all employees.
447	447	(d) For purposes of this section, "personal relationship"
448	448	means a connection by blood, marriage, business, or friendship with
449	449	another person or business entity such that the officer or employee
450	450	has a direct and substantial interest in the welfare of that person
451	451	or business entity.
452	452	(e) This section does not apply to a purchase that complies
453	453	with a procedure adopted under Section 262.0245.
454	454	[(b) A county officer or employee commits an offense if the
455	455	officer or employee intentionally or knowingly violates Section
456	456	262.023, other than by conduct described by Subsection (a). An
457	457	offense under this subsection is a Class B misdemeanor.
458	458	[(c) A county officer or employee commits an offense if the
459	459	officer or employee intentionally or knowingly violates this
460	460	subchapter, other than by conduct described by Subsection (a) or
461	461	(b). An offense under this subsection is a Class C misdemeanor.]
462	462	SECTION 23. Section 262.036(a), Local Government Code, is
463	463	amended to read as follows:
464	464	(a) Notwithstanding any other provision in this chapter, a
465	465	county [with a population of 800,000 or more] may select an
466	466	appropriately licensed insurance agent as the sole broker of record
467	467	to obtain proposals and coverages for insurance that provides
468	468	necessary coverage and adequate limits of coverage in all areas of
469	469	risk, including public official liability, property, casualty,
470	470	workers' compensation, and specific and aggregate stop-loss
471	471	coverage for self-funded health care.
472	472	SECTION 24. Section 271.025(e), Local Government Code, is
473	473	amended to read as follows:
474	474	(e) A [In a county with a population of 3.3 million or more,
475	475	the] county and any district or authority created under Article
476	476	XVI, Section 59, of the Texas Constitution of which the governing
477	477	body is the commissioners court may require that a minimum of 25
478	478	percent of the work be performed by the bidder and, notwithstanding
479	479	any other law to the contrary, may establish financial criteria for
480	480	the surety companies that provide payment and performance bonds.
481	481	SECTION 25. Section 271.029, Local Government Code, is
482	482	amended to read as follows:
483	483	Sec. 271.029. CRIMINAL PENALTIES. (a) An officer or
484	484	employee [of a governmental entity] commits an offense if the
485	485	officer or employee intentionally or knowingly:
486	486	(1) violates Section 271.024; or
487	487	(2) makes or authorizes separate, sequential, or
488	488	component purchases to avoid the competitive bidding requirements
489	489	of the statute that requires a contract described by Section
490	490	271.024 [to be awarded on the basis of competitive bids].
491	491	(b) Except as provided by Subsection (c), an offense under
492	492	this section is a Class C misdemeanor.
493	493	(c) An offense under this subsection is:
494	494	(1) a Class B misdemeanor if the officer or employee
495	495	has a personal relationship with the selected vendor that has not
496	496	been previously disclosed to and approved by the appropriate
497	497	governing body; or
498	498	(2) a Class A misdemeanor if the officer or employee
499	499	receives or has received from the vendor a benefit as defined in
500	500	Section 1.07, Penal Code, not provided to all employees.
501	501	(d) For purposes of this section, "personal relationship"
502	502	means a connection by blood, marriage, business, or friendship with
503	503	another person or business entity such that the officer or employee
504	504	has a direct and substantial interest in the welfare of that person
505	505	or business entity.
506	506	(e) This section does not apply to a purchase that complies
507	507	with a procedure adopted under Section 271.024.
508	508	[(b) An officer or employee of a governmental entity commits
509	509	an offense if the officer or employee intentionally or knowingly
510	510	violates the competitive bidding requirements of the statute that
511	511	requires a contract described by Section 271.024 to be awarded on
512	512	the basis of competitive bids, other than by conduct described by
513	513	Subsection (a). An offense under this subsection is a Class B
514	514	misdemeanor.
515	515	[(c) An officer or employee of a governmental entity commits
516	516	an offense if the officer or employee intentionally or knowingly
517	517	violates this subchapter, other than by conduct described by
518	518	Subsection (a) or (b). An offense under this subsection is a Class
519	519	C misdemeanor.]
520	520	SECTION 26. Section 271.042, Local Government Code, is
521	521	amended by amending Subsection (b) and adding Subsection (c) to
522	522	read as follows:
523	523	(b) If there is a conflict between a provision of this
524	524	subchapter and a provision of Chapter 252 or 262, an issuer may use
525	525	either provision, and it is not necessary for the governing body to
526	526	designate the law under which action is being taken.
527	527	(c) Notwithstanding Subsection (b), for purposes of
528	528	enforcement or penalty, a county official or employee is presumed
529	529	to act under Chapter 262.
530	530	SECTION 27. Section 271.055(e), Local Government Code, is
531	531	amended to read as follows:
532	532	(e) A [In a county with a population of 3.3 million or more,
533	533	the] county and any district or authority created under Article
534	534	XVI, Section 59, of the Texas Constitution of which the governing
535	535	body is the commissioners court may require that a minimum of 25
536	536	percent of the work be performed by the bidder and, notwithstanding
537	537	any other law to the contrary, may establish financial criteria for
538	538	the surety companies that provide payment and performance bonds.
539	539	SECTION 28. Section 271.064, Local Government Code, is
540	540	amended to read as follows:
541	541	Sec. 271.064. CRIMINAL PENALTIES. (a) An officer or
542	542	employee of an issuer commits an offense if the officer or employee
543	543	intentionally or knowingly:
544	544	(1) violates Section 271.054; or
545	545	(2) makes or authorizes separate, sequential, or
546	546	component purchases to avoid the competitive bidding requirements
547	547	of Section 271.054.
548	548	(b) Except as provided by Subsection (c), an offense under
549	549	this section is a Class C misdemeanor.
550	550	(c) An offense under this section [subsection] is:
551	551	(1) a Class B misdemeanor if the officer or employee
552	552	has a personal relationship with the selected vendor that has not
553	553	been previously disclosed to and approved by the appropriate
554	554	governing body; or
555	555	(2) a Class A misdemeanor if the officer or employee
556	556	receives or has received from the vendor a benefit as defined in
557	557	Section 1.07, Penal Code, not provided to all employees.
558	558	(d) For purposes of this section, "personal relationship"
559	559	means a connection by blood, marriage, business, or friendship with
560	560	another person or business entity such that the officer or employee
561	561	has a direct and substantial interest in the welfare of that person
562	562	or business entity.
563	563	(e) This section does not apply to a purchase that complies
564	564	with a procedure adopted under Section 271.054.
565	565	[(b) An officer or employee of an issuer commits an offense
566	566	if the officer or employee intentionally or knowingly violates
567	567	Section 271.054, other than by conduct described by Subsection (a).
568	568	An offense under this subsection is a Class B misdemeanor.
569	569	[(c) An officer or employee of an issuer commits an offense
570	570	if the officer or employee intentionally or knowingly violates this
571	571	subchapter, other than by conduct described by Subsection (a) or
572	572	(b). An offense under this subsection is a Class C misdemeanor.]
573	573	SECTION 29. Section 252.312, Transportation Code, is
574	574	amended by amending Subsection (b) and adding Subsection (d) to
575	575	read as follows:
576	576	(b) If the county road engineer so recommends and the
577	577	commissioners court considers it to be in the best interest of the
578	578	county, a purchase in an amount of $25,000 or less may be made
579	579	through negotiation by the commissioners court or the court's
580	580	authorized representative under Subchapter B, Chapter 262, Local
581	581	Government Code, on requisition to be approved by the commissioners
582	582	court [or the county auditor] without advertising for competitive
583	583	bids.
584	584	(d) The cost under this section is the final amount of the
585	585	payment for the purchase.
586	586	SECTION 30. Sections 262.0295(a)(3), 262.035, 271.030, and
587	587	271.065, Local Government Code, are repealed.
588	588	SECTION 31. The changes in law made by this Act apply only
589	589	to purchases made or a bid deadline that occurs on or after
590	590	September 1, 2009. A purchase made or a bid deadline that occurs
591	591	before September 1, 2009, is governed by the law as it existed
592	592	immediately before the effective date of this Act, and that law is
593	593	continued in effect for that purpose.
594	594	SECTION 32. (a) Notwithstanding Section 31 of this Act, the
595	595	changes in law made by this Act to Sections 262.034, 271.029, and
596	596	271.064, Local Government Code, apply only to an offense committed
597	597	on or after the effective date of this Act. For purposes of this
598	598	section, an offense is committed before the effective date of this
599	599	Act if any element of the offense occurs before that date.
600	600	(b) An offense committed before the effective date of this
601	601	Act is covered by the law in effect immediately before the effective
602	602	date of this Act, and the former law is continued in effect for that
603	603	purpose.
604	604	SECTION 33. This Act takes effect September 1, 2009.
605	605	* * * * *