Texas 2009 - 81st Regular

Texas House Bill HB3487 Latest Draft

Bill / Senate Committee Report Version Filed 02/01/2025

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                            By: Coleman (Senate Sponsor - West) H.B. No. 3487
 (In the Senate - Received from the House May 6, 2009;
 May 7, 2009, read first time and referred to Committee on
 Intergovernmental Relations; May 18, 2009, reported adversely,
 with favorable Committee Substitute by the following vote: Yeas 5,
 Nays 0; May 18, 2009, sent to printer.)
 COMMITTEE SUBSTITUTE FOR H.B. No. 3487 By: West


 A BILL TO BE ENTITLED
 AN ACT
 relating to the purchasing and contracting authority of counties;
 providing penalties.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1. Section 262.002, Local Government Code, is
 amended to read as follows:
 Sec. 262.002. AUTHORITY TO COOPERATIVELY PURCHASE GOODS
 [ROAD EQUIPMENT] AND SERVICES [TIRES THROUGH COMPTROLLER]. (a) A
 county may purchase an item through a cooperative purchasing
 program.  The program must use a competitive bidding procedure if
 the item is otherwise required by law to be purchased through a
 competitive bidding procedure. [The commissioners court of a county
 may purchase through the comptroller road machinery and equipment,
 tires, and tubes to be used by the county.]
 (b) A county may purchase an item according to a competitive
 bidding procedure promulgated by an authorized state agency if the
 item is otherwise required by law to be purchased through a
 competitive bidding procedure. [The commission must purchase an
 item under this section on competitive bids and in accordance with
 any rules of the commission.]
 (c) A county may purchase an item cooperatively through an
 interlocal agreement.  The agreement must provide for a competitive
 bidding procedure if the item is otherwise required by law to be
 purchased through a competitive bidding procedure. [A purchase
 under this section must be made on the requisition of the
 commissioners court. When the court sends the requisition to the
 commission, the court must include with the requisition a general
 description of the item desired and a certification of the funds
 available to pay for the item.]
 (d) A cooperative purchase under this section does not
 violate competitive bidding statutes. [The commission may adopt
 rules to carry out the purpose of this section.]
 SECTION 2. Section 262.003, Local Government Code, is
 amended to read as follows:
 Sec. 262.003. SMALL, SOLE-SOURCE PURCHASE EXEMPT FROM
 COMPETITIVE BIDDING. [(a)    Any law that requires a county to follow
 a competitive bidding procedure in making a purchase requiring the
 expenditure of $25,000 or less does not apply to the purchase of an
 item available for purchase from only one supplier.
 [(b)] If a county makes a sole-source purchase as described
 by Section 262.024(a)(7) [covered by Subsection (a)], the county
 auditor or other appropriate county officer or employee may not
 refuse payment for the purchase because a competitive bidding
 procedure was not followed.
 SECTION 3. Section 262.011, Local Government Code, is
 amended by amending Subsections (f), (g), (k), (m), and (o) and
 adding Subsection (q) to read as follows:
 (f) A purchase made by the county purchasing agent shall be
 paid for by an electronic transfer, check, or [a] warrant drawn by
 the county auditor on funds in the county treasury in the manner
 provided by law. The county auditor may not draw and the county
 treasurer may not honor an electronic transfer, check, or [a]
 warrant for a purchase unless the purchase is made by the county
 purchasing agent or on competitive bid as provided by law.
 (g) The county purchasing agent may cooperate with the
 purchasing agent of a municipality in the county to purchase any
 item in volume as may be necessary. The county treasurer shall
 honor an electronic transfer, check, or [a] warrant drawn by the
 county auditor to reimburse the municipality's purchasing agent
 making the purchase for the county.
 (k) The board that appoints the county purchasing agent
 shall set the salary of the agent in an amount not less than $5,000 a
 year, payable in equal monthly installments or by any other
 distribution at the option of the county. The salary shall be paid
 by an electronic transfer, check, or warrant [warrants] drawn on
 funds in the county treasury.
 (m) A person, including an officer, agent, or employee of a
 county or of a subdivision or department of a county, commits an
 offense if the person violates this section. An offense under this
 subsection is a misdemeanor punishable by a fine of not less than
 $10 or more than $100[, by confinement in the county jail for not
 less than 30 days or more than one year, or by both the fine and
 confinement]. Each act in violation of this section is a separate
 offense.
 (o) The county purchasing agent shall adopt the rules and
 procedures necessary to implement the agent's duties under this
 section subject to approval by the commissioners court.
 Notwithstanding Subsection (f) or other law, rules and procedures
 adopted under this subsection may include rules and procedures for
 persons to use county purchasing cards to pay for county purchases
 under the direction and supervision of the county purchasing agent.
 Procedures for use of purchasing cards may not avoid the
 competitive bidding requirements of this chapter or other
 requirements of county financial law.
 (q)  An electronic transfer under this chapter must provide
 the same level of internal controls and statutory authorizations as
 required for a check or warrant.
 SECTION 4. Sections 262.0115(d) and (e), Local Government
 Code, are amended to read as follows:
 (d) Under the supervision of the commissioners court, the
 purchasing agent shall carry out the functions prescribed by law
 for a purchasing agent under Section 262.011 and for any
 ministerial function of the county auditor in regard to county
 purchases and contracts and shall administer the procedures
 prescribed by law for notice and public bidding for county
 purchases and contracts.
 (e) A county that has established the position of county
 purchasing agent under this section may abolish the position at any
 time. On the abolition of the position, the county auditor shall
 assume the rights and responsibilities of bid or proposal notice
 and opening under this chapter and Chapter 271 [functions
 previously performed by the purchasing agent].
 SECTION 5. Section 262.012, Local Government Code, is
 amended to read as follows:
 Sec. 262.012. [COUNTY AUDITORS AS] PURCHASING AGENTS IN
 [CERTAIN] COUNTIES WITH POPULATION OF 100,000 OR LESS. (a) In a
 county with a population of 100,000 or less:
 (1)  a county auditor may, on request of the
 commissioners court, assume purchasing responsibilities [The
 commissioners court of a county that employs a county auditor
 jointly with one or more counties under Section 84.008 may require
 the auditor to act as the purchasing agent] for the county, in
 addition to performing the regular duties of the auditor as
 required by law; or
 (2)  the commissioners court may employ a person to
 serve as county purchasing agent at the pleasure of the
 commissioners court.
 (b) A purchasing agent employed under Subsection (a)(2):
 (1) acts under the commissioners court's supervision;
 (2)  carries out the functions prescribed by law for
 county purchases and contracts; and
 (3)  administers public notice and bidding procedures
 for a county purchase or contract. [In a county with a population
 of 41,680 to 42,100, the county auditor shall act as the purchasing
 agent for the county in addition to performing the regular duties of
 the auditor as required by law.]
 (c) This section applies only to a county in which a county
 purchasing agent has not been appointed under Section 262.011.
 SECTION 6. Subchapter B, Chapter 262, Local Government
 Code, is amended by adding Section 262.013 to read as follows:
 Sec. 262.013.  QUALIFICATION. A person authorized to make a
 purchase on behalf of a county or a county department or office may
 not make any purchase until providing to the county or county
 department or office a signed acknowledgment that the person
 understands the requirements of this chapter and Chapters 263, 270,
 and 271. The acknowledgment must be maintained in the person's
 personnel file or with the official bond of an elected or appointed
 official.
 SECTION 7. Section 262.022, Local Government Code, is
 amended by adding Subdivisions (3-a), (5-a), and (5-b) and amending
 Subdivisions (5) and (6) to read as follows:
 (3-a)  "Day" means a calendar day unless otherwise
 designated.
 (5) "Item" means any service, equipment, good, or
 other tangible or intangible personal property, including
 insurance and high technology items. The term does not include
 professional services as defined by Section 2254.002, Government
 Code.
 (5-a)  "Lowest and best" means a bid or offer providing
 the best value considering associated direct and indirect costs,
 including transport, maintenance, reliability, life cycle,
 warranties, and customer service after a sale.
 (5-b) "Normal purchasing practice" means:
 (A)  an accepted custom, practice, or standard for
 government procurement in the state; or
 (B)  a practice recognized by the National
 Institute of Government Purchasing regarding the purchase of a
 particular good or service.
 (6) "Purchase" means any kind of acquisition,
 including a lease, of an item regardless of the generation or return
 of revenue to the county.
 SECTION 8. Section 262.0225, Local Government Code, is
 amended by adding Subsection (d) to read as follows:
 (d)  A county that complies with the competitive bidding
 requirements of this chapter and receives no responsive bids for an
 item may procure the item under Section 262.0245.
 SECTION 9. Section 262.023, Local Government Code, is
 amended by amending Subsection (c) and adding Subsections (d) and
 (e) to read as follows:
 (c) Under this section, a person is presumed to have intent
 to avoid the competitive bidding requirement if:
 (1)  the person makes separate, sequential, or
 component purchases of items for that person's office or department
 within a single fiscal year;
 (2)  the office or department budget for similar items
 exceeds the competitive bidding threshold; and
 (3) the purchase is not office supplies [In applying
 the requirements established by Subsection (a), all separate,
 sequential, or component purchases of items ordered or purchased,
 with the intent of avoiding the requirements of this subchapter,
 from the same supplier by the same county officer, department, or
 institution are treated as if they are part of a single purchase and
 of a single contract. In applying this provision to the purchase of
 office supplies, separate purchases of supplies by an individual
 department are not considered to be part of a single purchase and
 single contract by the county if a specific intent to avoid the
 requirements of this subchapter is not present].
 (d)  A person may rebut the presumption under Subsection (c)
 if the person:
 (1)  timely obtained an exemption for the purchases
 from the commissioners court under Section 262.024;
 (2)  initiated competitive bidding procedures within a
 reasonable time after reaching the competitive bidding threshold;
 or
 (3)  complied with a routine competitive procurement
 practice adopted by the county purchasing agent or commissioners
 court under Section 262.0245.
 (e)  In applying the requirements established in Subsection
 (a), "expenditure" means the final price to be paid for the item or
 items purchased.
 SECTION 10. Section 262.024, Local Government Code, is
 amended by amending Subsections (a), (b), and (d) and adding
 Subsection (b-1) to read as follows:
 (a) A contract for the purchase of any of the following
 items is exempt from the requirement established by Section 262.023
 if the commissioners court by order grants the exemption:
 (1) an item that must be purchased in a case of public
 calamity if it is necessary to make the purchase promptly to relieve
 the necessity of the citizens or to preserve the property of the
 county;
 (2) an item necessary to preserve or protect the
 public health or safety of the residents of the county;
 (3) an item necessary because of unforeseen damage to
 public property;
 (4) a personal or professional service;
 (5) any individual work performed and paid for by the
 day, as the work progresses, provided that no individual is
 compensated under this subsection for more than 20 working days in
 any three month period;
 (6) any land or right-of-way;
 (7) an item that can be obtained from only one source,
 including:
 (A) items for which competition is precluded
 because of the existence of patents, copyrights, secret processes,
 or monopolies;
 (B) films, manuscripts, or books;
 (C) electric power, gas, water, and other utility
 services; and
 (D) captive replacement parts or components for
 equipment;
 (8) an item of food;
 (9) personal property sold:
 (A) at an auction by a state licensed auctioneer
 or in a commercial online auction available to the general public;
 (B) at a going out of business sale held in
 compliance with Subchapter F, Chapter 17, Business & Commerce Code;
 or
 (C) by a political subdivision of this state, a
 state agency of this state, or an entity of the federal government;
 (10) any work performed under a contract for community
 and economic development made by a county under Section 381.004;
 [or]
 (11) vehicle and equipment repairs; or
 (12)  transportation and lodging purchased in
 compliance with travel policies adopted by the commissioners court.
 (b) The renewal or extension of an [a lease or of an
 equipment maintenance] agreement to purchase equipment, supplies,
 or maintenance service is exempt from the requirement established
 by Section 262.023 if the commissioners court by order grants the
 exemption and if:
 (1) [the lease or agreement has gone through the
 competitive bidding procedure within the preceding year;
 [(2)] the renewal or extension does not exceed one
 year; and
 (2) [(3)] the renewal or extension is the first or
 second renewal or extension of the [lease or] agreement.
 (b-1)  The renewal or extension of an agreement to purchase
 equipment, supplies, or maintenance service initially obtained
 through a competitive bidding process is exempt from the
 requirement established by Section 262.023.
 (d) The exemption granted under Subsection (a)(8) of this
 section shall apply only to the sealed competitive bidding
 requirements on food purchases. Counties shall solicit at least
 three bids for purchases of food items by telephone or written
 quotation at intervals specified by the commissioners court.
 Counties shall award food purchase contracts to the responsible
 bidder who submits the lowest and best bid or shall reject all bids
 and repeat the bidding process, as provided by this subsection. The
 purchasing officer taking telephone or written bids under this
 subsection shall maintain, on a form approved by the commissioners
 court, a record of all bids solicited and the vendors contacted.
 This record may be [shall be kept in the purchasing office for a
 period of at least one year or until] audited by the county auditor.
 SECTION 11. Section 262.0245, Local Government Code, is
 amended to read as follows:
 Sec. 262.0245. COMPETITIVE BIDDING PROCEDURES ADOPTED BY
 COUNTY PURCHASING AGENTS OR COMMISSIONERS COURT. A county
 purchasing agent or, in a county without a purchasing agent, the
 commissioners court shall adopt procedures that provide for
 competitive procurement [bidding], to the extent practicable under
 the circumstances, for the county purchase of an item [under a
 contract] that is not subject to competitive bidding under Section
 262.023 or for which the county receives no responsive bid.
 SECTION 12. Section 262.025, Local Government Code, is
 amended by amending Subsection (a) and adding Subsections (a-1),
 (b-1), and (b-2) to read as follows:
 (a) A notice of a proposed purchase must be published at
 least once [a week] in a newspaper of general circulation in the
 county, with the first day of publication occurring at least 14 days
 before the [14th day before the] date of the bid opening. If there
 is no newspaper of general circulation in the county, the notice
 must be posted in a [prominent] place described by Section 51.002,
 Property Code, [in the courthouse] for 14 days before the date of
 the bid opening. Notice published in a newspaper under this section
 must include:
 (1) a general statement of the proposed purchase;
 (2)  the name and telephone number of the purchasing
 agent; and
 (3) the county website address, if any.
 (a-1)  Nothing in Subsection (a) shall be construed to
 require more than one notice in one newspaper or to limit the county
 from providing additional notice for longer periods or in more
 locations.
 (b-1)  If a county maintains an Internet website, the county,
 instead of meeting the publication requirements under Subsection
 (a), may:
 (1)  publish notice in a newspaper described by
 Subsection (a) once not later than the 14th day before the bid
 receipt deadline; and
 (2)  post notice continuously on its website for at
 least 14 days immediately preceding the bid receipt deadline.
 (b-2)  The newspaper notice under Subsection (b-1) must
 include the time and place at which the bids will be publicly opened
 and the website address for the procurement information.
 SECTION 13. Section 262.0255, Local Government Code, is
 amended by adding Subsection (c) to read as follows:
 (c)  A commissioners court purchasing earth-moving,
 material-handling, road maintenance, or construction equipment
 under Section 271.083 of this code or Section 791.025, Government
 Code, may negotiate with a vendor awarded a cooperative contract
 under those sections an agreement for the vendor to purchase or
 accept as trade used equipment owned by the county.
 SECTION 14. Section 262.0256, Local Government Code, as
 amended by Chapters 660 (H.B. 2242) and 725 (H.B. 3089), Acts of the
 78th Legislature, Regular Session, 2003, is reenacted and amended
 to read as follows:
 Sec. 262.0256. PRE-BID CONFERENCE FOR CERTAIN COUNTIES OR A
 DISTRICT GOVERNED BY THOSE COUNTIES. (a) [This section applies
 only to a county with a population of 2.8 million or more.
 [(b)] The commissioners court of the county or the governing
 body of a district or authority created under Section 59, Article
 XVI, Texas Constitution, if the governing body is the commissioners
 court of the county in which the district is located, may require a
 principal, officer, or employee of each prospective bidder to
 attend a mandatory pre-bid conference conducted for the purpose of
 discussing contract requirements and answering questions of
 prospective bidders.
 (b) [(c)] After a conference is conducted under Subsection
 (a) [(b)], any additional required notice for the proposed purchase
 may be sent by certified mail, return receipt requested, only to
 prospective bidders who attended the conference. Notice under this
 subsection is not subject to the requirements of Section 262.025.
 SECTION 15. Section 262.026(b), Local Government Code, is
 amended to read as follows:
 (b) Opened bids shall be kept on file and available for
 inspection by anyone desiring to see them until the first
 anniversary of the date of opening.
 SECTION 16. Section 262.027, Local Government Code, is
 amended by amending Subsection (c) and adding Subsection (g) to
 read as follows:
 (c) A contract may not be awarded to a bidder who is not the
 lowest dollar bidder meeting specifications unless, before the
 award, each lower bidder is given:
 (1) notice of the proposed award;
 (2)  the purchasing agent's evaluation and
 recommendation to the commissioners court or the commissioners
 court's evaluation of the bid as lowest and best; and
 (3) [is given] an opportunity to appear before the
 commissioners court and present previously unconsidered evidence
 concerning the value of the lower bid, which may include evidence of
 the bidder's responsibility.
 (g)  If after the award the successful bidder fails to
 qualify for required bonds, or is otherwise unable to meet the
 requirements of the award, the commissioners court may award the
 contract to the next bidder in order of ranking as lowest and best
 bid.
 SECTION 17. Section 262.0271(b), Local Government Code, is
 amended to read as follows:
 (b) In purchasing items under this chapter through a
 competitive bidding process, if a county receives one or more bids
 from a bidder who provides reasonable [comparable] health insurance
 coverage to its employees and requires a subcontractor the bidder
 intends to use to provide reasonable [comparable] health insurance
 coverage to the subcontractor's employees and whose bid is within
 five percent of the lowest and best bid price received by the county
 from a bidder who does not provide or require reasonable
 [comparable] health insurance coverage, the commissioners court of
 the county may give preference to the bidder who provides and
 requires reasonable [comparable] health insurance coverage.
 SECTION 18. Section 262.0276, Local Government Code, is
 amended by amending Subsection (a) and adding Subsection (d) to
 read as follows:
 (a) By an order adopted and entered in the minutes of the
 commissioners court and after notice is published in a newspaper of
 general circulation in the county, the commissioners court may
 adopt rules permitting the county to refuse to enter into a contract
 or other transaction with a person who owes a debt [indebted] to the
 county.
 (d)  In this section, "debt" includes delinquent taxes,
 fines, fees, and indebtedness arising from written agreements with
 the county.
 SECTION 19. Section 262.0295(d), Local Government Code, is
 amended to read as follows:
 (d) Within 30 days after the date the unpriced proposals are
 opened under Subsection (c), the county official shall present the
 priced bids to the commissioners court. The award of the contract
 shall be made to the responsible offeror whose bid is determined to
 be the lowest and best evaluated offer resulting from negotiation.
 All proposals and bids that have been submitted shall be available
 and open for public inspection after the contract is awarded.
 SECTION 20. Section 262.030(b), Local Government Code, is
 amended to read as follows:
 (b) Quotations must be solicited through a request for
 proposals. Public notice for the request for proposals must be made
 in the same manner as provided in the competitive bidding
 procedure. The request for proposals must specify the relative
 importance of price and other evaluation factors. The award of the
 contract shall be made to the responsible offeror whose proposal is
 determined to be the lowest and best evaluated offer resulting from
 negotiation, taking into consideration the relative importance of
 price and other evaluation factors set forth in the request for
 proposals.
 SECTION 21. Section 262.032, Local Government Code, is
 amended by adding Subsection (e) to read as follows:
 (e)  The commissioners court may establish financial
 criteria for accepting surety companies that provide bid, payment,
 or performance bonds.
 SECTION 22. Section 262.034, Local Government Code, is
 amended to read as follows:
 Sec. 262.034. CRIMINAL PENALTIES. (a) A county officer or
 employee commits an offense if the officer or employee
 intentionally or knowingly:
 (1) violates Section 262.023; or
 (2) makes or authorizes separate, sequential, or
 component purchases to avoid the competitive bidding requirements
 of Section 262.023.
 (b)  Except as provided by Subsection (c), an offense under
 this section is a Class C misdemeanor.
 (c) An offense under this section [subsection]is:
 (1) a Class B misdemeanor if the officer or employee
 has a personal relationship with the selected vendor that has not
 been previously disclosed to and approved by the appropriate
 governing body; or
 (2)  a Class A misdemeanor if the officer or employee
 receives or has received from the vendor a benefit as defined by
 Section 1.07, Penal Code, not provided to all employees.
 (d)  For purposes of this section, "personal relationship"
 means a connection by blood, marriage, business, or friendship with
 another person or business entity such that the officer or employee
 has a direct and substantial interest in the welfare of that person
 or business entity.
 (e)  This section does not apply to a purchase that complies
 with a procedure adopted under Section 262.0245.
 [(b)     A county officer or employee commits an offense if the
 officer or employee intentionally or knowingly violates Section
 262.023, other than by conduct described by Subsection (a). An
 offense under this subsection is a Class B misdemeanor.
 [(c)     A county officer or employee commits an offense if the
 officer or employee intentionally or knowingly violates this
 subchapter, other than by conduct described by Subsection (a) or
 (b). An offense under this subsection is a Class C misdemeanor.]
 SECTION 23. Section 262.036(a), Local Government Code, is
 amended to read as follows:
 (a) Notwithstanding any other provision in this chapter, a
 county [with a population of 800,000 or more] may select an
 appropriately licensed insurance agent as the sole broker of record
 to obtain proposals and coverages for insurance that provides
 necessary coverage and adequate limits of coverage in all areas of
 risk, including public official liability, property, casualty,
 workers' compensation, and specific and aggregate stop-loss
 coverage for self-funded health care.
 SECTION 24. Section 271.025(e), Local Government Code, is
 amended to read as follows:
 (e) A [In a county with a population of 3.3 million or more,
 the] county and any district or authority created under Article
 XVI, Section 59, of the Texas Constitution of which the governing
 body is the commissioners court may require that a minimum of 25
 percent of the work be performed by the bidder and, notwithstanding
 any other law to the contrary, may establish financial criteria for
 the surety companies that provide payment and performance bonds.
 SECTION 25. Section 271.029, Local Government Code, is
 amended to read as follows:
 Sec. 271.029. CRIMINAL PENALTIES. (a) An officer or
 employee [of a governmental entity] commits an offense if the
 officer or employee intentionally or knowingly:
 (1) violates Section 271.024; or
 (2) makes or authorizes separate, sequential, or
 component purchases to avoid the competitive bidding requirements
 of the statute that requires a contract described by Section
 271.024 [to be awarded on the basis of competitive bids].
 (b)  Except as provided by Subsection (c), an offense under
 this section is a Class C misdemeanor.
 (c) An offense under this subsection is:
 (1) a Class B misdemeanor if the officer or employee
 has a personal relationship with the selected vendor that has not
 been previously disclosed to and approved by the appropriate
 governing body; or
 (2)  a Class A misdemeanor if the officer or employee
 receives or has received from the vendor a benefit as defined in
 Section 1.07, Penal Code, not provided to all employees.
 (d)  For purposes of this section, "personal relationship"
 means a connection by blood, marriage, business, or friendship with
 another person or business entity such that the officer or employee
 has a direct and substantial interest in the welfare of that person
 or business entity.
 (e)  This section does not apply to a purchase that complies
 with a procedure adopted under Section 271.024.
 [(b)     An officer or employee of a governmental entity commits
 an offense if the officer or employee intentionally or knowingly
 violates the competitive bidding requirements of the statute that
 requires a contract described by Section 271.024 to be awarded on
 the basis of competitive bids, other than by conduct described by
 Subsection (a). An offense under this subsection is a Class B
 misdemeanor.
 [(c)     An officer or employee of a governmental entity commits
 an offense if the officer or employee intentionally or knowingly
 violates this subchapter, other than by conduct described by
 Subsection (a) or (b). An offense under this subsection is a Class
 C misdemeanor.]
 SECTION 26. Section 271.042, Local Government Code, is
 amended by amending Subsection (b) and adding Subsection (c) to
 read as follows:
 (b) If there is a conflict between a provision of this
 subchapter and a provision of Chapter 252 or 262, an issuer may use
 either provision, and it is not necessary for the governing body to
 designate the law under which action is being taken.
 (c)  Notwithstanding Subsection (b), for purposes of
 enforcement or penalty, a county official or employee is presumed
 to act under Chapter 262.
 SECTION 27. Section 271.055(e), Local Government Code, is
 amended to read as follows:
 (e) A [In a county with a population of 3.3 million or more,
 the] county and any district or authority created under Article
 XVI, Section 59, of the Texas Constitution of which the governing
 body is the commissioners court may require that a minimum of 25
 percent of the work be performed by the bidder and, notwithstanding
 any other law to the contrary, may establish financial criteria for
 the surety companies that provide payment and performance bonds.
 SECTION 28. Section 271.064, Local Government Code, is
 amended to read as follows:
 Sec. 271.064. CRIMINAL PENALTIES. (a) An officer or
 employee of an issuer commits an offense if the officer or employee
 intentionally or knowingly:
 (1) violates Section 271.054; or
 (2) makes or authorizes separate, sequential, or
 component purchases to avoid the competitive bidding requirements
 of Section 271.054.
 (b)  Except as provided by Subsection (c), an offense under
 this section is a Class C misdemeanor.
 (c) An offense under this section [subsection] is:
 (1) a Class B misdemeanor if the officer or employee
 has a personal relationship with the selected vendor that has not
 been previously disclosed to and approved by the appropriate
 governing body; or
 (2)  a Class A misdemeanor if the officer or employee
 receives or has received from the vendor a benefit as defined in
 Section 1.07, Penal Code, not provided to all employees.
 (d)  For purposes of this section, "personal relationship"
 means a connection by blood, marriage, business, or friendship with
 another person or business entity such that the officer or employee
 has a direct and substantial interest in the welfare of that person
 or business entity.
 (e)  This section does not apply to a purchase that complies
 with a procedure adopted under Section 271.054.
 [(b)     An officer or employee of an issuer commits an offense
 if the officer or employee intentionally or knowingly violates
 Section 271.054, other than by conduct described by Subsection (a).
 An offense under this subsection is a Class B misdemeanor.
 [(c)     An officer or employee of an issuer commits an offense
 if the officer or employee intentionally or knowingly violates this
 subchapter, other than by conduct described by Subsection (a) or
 (b). An offense under this subsection is a Class C misdemeanor.]
 SECTION 29. Section 252.312, Transportation Code, is
 amended by amending Subsection (b) and adding Subsection (d) to
 read as follows:
 (b) If the county road engineer so recommends and the
 commissioners court considers it to be in the best interest of the
 county, a purchase in an amount of $25,000 or less may be made
 through negotiation by the commissioners court or the court's
 authorized representative under Subchapter B, Chapter 262, Local
 Government Code, on requisition to be approved by the commissioners
 court [or the county auditor] without advertising for competitive
 bids.
 (d)  The cost under this section is the final amount of the
 payment for the purchase.
 SECTION 30. Sections 262.0295(a)(3), 262.035, 271.030, and
 271.065, Local Government Code, are repealed.
 SECTION 31. The changes in law made by this Act apply only
 to purchases made or a bid deadline that occurs on or after
 September 1, 2009. A purchase made or a bid deadline that occurs
 before September 1, 2009, is governed by the law as it existed
 immediately before the effective date of this Act, and that law is
 continued in effect for that purpose.
 SECTION 32. (a) Notwithstanding Section 31 of this Act, the
 changes in law made by this Act to Sections 262.034, 271.029, and
 271.064, Local Government Code, apply only to an offense committed
 on or after the effective date of this Act. For purposes of this
 section, an offense is committed before the effective date of this
 Act if any element of the offense occurs before that date.
 (b) An offense committed before the effective date of this
 Act is covered by the law in effect immediately before the effective
 date of this Act, and the former law is continued in effect for that
 purpose.
 SECTION 33. This Act takes effect September 1, 2009.
 * * * * *