Texas 2009 - 81st Regular

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1	1	81R7586 PMO-F
2	2	By: Jackson, Mike S.B. No. 1110
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to contracts by governmental entities and related
8	8	professional services and to public works performance and payment
9	9	bonds.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	ARTICLE 1. PUBLIC WORKS PERFORMANCE AND PAYMENT BONDS
12	12	SECTION 1.01. Section 2253.021, Government Code, is amended
13	13	by adding Subsection (h) to read as follows:
14	14	(h) A reverse auction procedure may not be used to obtain
15	15	services related to a public work contract for which a bond is
16	16	required under this section. In this subsection, "reverse auction
17	17	procedure" has the meaning assigned by Section 2155.062 or a
18	18	procedure similar to that described by Section 2155.062.
19	19	ARTICLE 2. CONTRACTS BY GOVERNMENTAL ENTITIES
20	20	SECTION 2.01. Section 11.168, Education Code, is amended to
21	21	read as follows:
22	22	Sec. 11.168. USE OF DISTRICT RESOURCES PROHIBITED FOR
23	23	CERTAIN PURPOSES; EXCEPTION. (a) Except as provided by Subsection
24	24	(b), the [The] board of trustees of a school district may not enter
25	25	into an agreement authorizing the use of school district employees,
26	26	property, or resources for the provision of materials or labor for
27	27	the design, construction, or renovation of improvements to real
28	28	property not owned or leased by the district.
29	29	(b) This section does not prohibit the board of trustees of
30	30	a school district from entering into an agreement for the design,
31	31	construction, or renovation of improvements to real property not
32	32	owned or leased by the district if the improvements benefit real
33	33	property owned or leased by the district. Benefits to real property
34	34	owned or leased by the district include the design, construction,
35	35	or renovation of highways, roads, streets, sidewalks, crosswalks,
36	36	utilities, and drainage improvements that serve or benefit the real
37	37	property owned or leased by the district.
38	38	SECTION 2.02. Sections 44.031(a) and (f), Education Code,
39	39	are amended to read as follows:
40	40	(a) Except as provided by this subchapter, all school
41	41	district contracts for the purchase of goods and services, except
42	42	contracts for the purchase of produce or vehicle fuel, valued at
43	43	$25,000 or more in the aggregate for each 12-month period shall be
44	44	made by the method, of the following methods, that provides the best
45	45	value for the district:
46	46	(1) competitive bidding for services other than
47	47	construction services;
48	48	(2) competitive sealed proposals for services other
49	49	than construction services;
50	50	(3) a request for proposals, for services other than
51	51	construction services;
52	52	(4) an interlocal contract;
53	53	(5) a method provided by Chapter 2267, Government Code
54	54	[a design/build contract;
55	55	[(6) a contract to construct, rehabilitate, alter, or
56	56	repair facilities that involves using a construction manager;
57	57	[(7) a job order contract for the minor construction,
58	58	repair, rehabilitation, or alteration of a facility];
59	59	(6) [(8)] the reverse auction procedure as defined by
60	60	Section 2155.062(d), Government Code; or
61	61	(7) [(9)] the formation of a political subdivision
62	62	corporation under Section 304.001, Local Government Code.
63	63	(f) This section does not apply to a contract for
64	64	professional services rendered, including services of an
65	65	architect, attorney, engineer, or fiscal agent. A school district
66	66	may, at its option, contract for professional services rendered by
67	67	a financial consultant or a technology consultant in the manner
68	68	provided by Section 2254.003, Government Code, in lieu of the
69	69	methods provided by this section.
70	70	SECTION 2.03. Subchapter B, Chapter 44, Education Code, is
71	71	amended by adding Section 44.0351 to read as follows:
72	72	Sec. 44.0351. COMPETITIVE BIDDING. (a) Except to the
73	73	extent prohibited by other law and to the extent consistent with
74	74	this subchapter, a school district may use competitive bidding to
75	75	select a vendor as authorized by Section 44.031(a)(1).
76	76	(b) Except as provided by this subsection, Subchapter B,
77	77	Chapter 271, Local Government Code, does not apply to a competitive
78	78	bidding process under this subchapter. Sections 271.026,
79	79	271.027(a), and 271.0275, Local Government Code, apply to a
80	80	competitive bidding process under this subchapter.
81	81	(c) A school district shall award a competitively bid
82	82	contract at the bid amount to the bidder offering the best value for
83	83	the district. In determining the best value for the district, the
84	84	district is not restricted to considering price alone, but may
85	85	consider any other factors stated in the selection criteria. The
86	86	selection criteria may include the factors listed in Section
87	87	44.031(b).
88	88	SECTION 2.04. Subchapter B, Chapter 44, Education Code, is
89	89	amended by adding Section 44.0361 to read as follows:
90	90	Sec. 44.0361. COMPETITIVE SEALED PROPOSALS. (a) In
91	91	selecting a vendor through competitive sealed proposals as
92	92	authorized by Section 44.031(a)(2), a school district shall follow
93	93	the procedures prescribed by this section.
94	94	(b) The district shall prepare a request for competitive
95	95	sealed proposals that includes information that vendors may require
96	96	to respond to the request. The district shall state in the request
97	97	for proposals the selection criteria that will be used in selecting
98	98	the successful offeror.
99	99	(c) The district shall receive, publicly open, and read
100	100	aloud the names of the offerors and, if any are required to be
101	101	stated, all prices stated in each proposal. Not later than the 45th
102	102	day after the date on which the proposals are opened, the district
103	103	shall evaluate and rank each proposal submitted in relation to the
104	104	published selection criteria.
105	105	(d) The district shall select the offeror that offers the
106	106	best value for the district based on the published selection
107	107	criteria and on its ranking evaluation. The district shall first
108	108	attempt to negotiate with the selected offeror a contract. The
109	109	district may discuss with the selected offeror options for a scope
110	110	or time modification and any price change associated with the
111	111	modification. If the district is unable to negotiate a contract
112	112	with the selected offeror, the district shall, formally and in
113	113	writing, end negotiations with that offeror and proceed to the next
114	114	offeror in the order of the selection ranking until a contract is
115	115	reached or all proposals are rejected.
116	116	(e) In determining the best value for the district, the
117	117	district is not restricted to considering price alone, but may
118	118	consider any other factors stated in the selection criteria.
119	119	SECTION 2.05. Subchapter B, Chapter 44, Education Code, is
120	120	amended by adding Section 44.0411 to read as follows:
121	121	Sec. 44.0411. CHANGE ORDERS. (a) If a change in plans or
122	122	specifications is necessary after the performance of a contract is
123	123	begun or if it is necessary to decrease or increase the quantity of
124	124	work to be performed or of materials, equipment, or supplies to be
125	125	furnished, the district may approve change orders making the
126	126	changes.
127	127	(b) The total contract price may not be increased because of
128	128	the changes unless additional money for increased costs is approved
129	129	for that purpose from available money or is provided for by the
130	130	authorization of the issuance of time warrants.
131	131	(c) The district may grant general authority to an
132	132	administrative official to approve the change orders.
133	133	(d) A contract with an original contract price of $1 million
134	134	or more may not be increased under this section by more than 25
135	135	percent. If a change order for a contract with an original contract
136	136	price of less than $1 million increases the contract amount to $1
137	137	million or more, subsequent change orders may not increase the
138	138	revised contract amount by more than 25 percent.
139	139	SECTION 2.06. Subchapter A, Chapter 46, Education Code, is
140	140	amended by adding Section 46.0111 to read as follows:
141	141	Sec. 46.0111. ACTIONS BROUGHT FOR DEFECTIVE DESIGN,
142	142	CONSTRUCTION, RENOVATION, OR IMPROVEMENT OF INSTRUCTIONAL
143	143	FACILITY. (a) In this section:
144	144	(1) "Net proceeds" means the difference between the
145	145	amount recovered by or on behalf of a school district in an action,
146	146	by settlement or otherwise, and the legal fees and litigation costs
147	147	incurred by the district in prosecuting the action.
148	148	(2) "State's share" means an amount equal to the
149	149	district's net proceeds from the recovery multiplied by a
150	150	percentage determined by dividing the amount of state assistance
151	151	under this subchapter used to pay the principal of and interest on
152	152	bonds issued in connection with the instructional facility that is
153	153	the subject of the action by the total amount of principal and
154	154	interest paid on the bonds as of the date of the judgment or
155	155	settlement.
156	156	(b) A school district that brings an action for recovery of
157	157	damages for the defective design, construction, renovation, or
158	158	improvement of an instructional facility financed by bonds for
159	159	which the district receives state assistance under this subchapter
160	160	shall provide the commissioner with written notice of the action.
161	161	(c) The commissioner may join in the action on behalf of the
162	162	state to protect the state's share in the action.
163	163	(d) A school district shall use the net proceeds from an
164	164	action brought by the district for the defective design,
165	165	construction, renovation, or improvement of an instructional
166	166	facility financed by bonds for which the district receives state
167	167	assistance under this subchapter to repair the defective design,
168	168	construction, renovation, or improvement of the instructional
169	169	facility on which the action is brought or to replace the facility.
170	170	Section 46.008 applies to the repair.
171	171	(e) The state's share is state property. The school
172	172	district shall send to the comptroller any portion of the state's
173	173	share not used by the school district to repair the defective
174	174	design, construction, renovation, or improvement of the
175	175	instructional facility on which the action is brought or to replace
176	176	the facility. Section 42.258 applies to the state's share under
177	177	this subsection.
178	178	SECTION 2.07. Section 791.011, Government Code, is amended
179	179	by amending Subsection (h) and adding Subsection (i) to read as
180	180	follows:
181	181	(h) An interlocal contract or any other agreement between a
182	182	governmental entity and a purchasing cooperative may not be used to
183	183	purchase engineering or architectural services.
184	184	(i) An interlocal contract may not be used to purchase
185	185	construction services unless the services are in connection with
186	186	the design or construction of a specific facility to be jointly
187	187	owned, used, or financed by the parties to the contract or:
188	188	(1) the services are in connection with a job order
189	189	contract;
190	190	(2) the governing body of the governmental entity for
191	191	whom the work will ultimately be performed approves the purchase in
192	192	open session;
193	193	(3) public notice is provided in a manner consistent
194	194	with a direct contract for job order contracting services; and
195	195	(4) work orders under the contract comply with Section
196	196	2267.353.
197	197	SECTION 2.08. Section 2166.2525, Government Code, is
198	198	amended to read as follows:
199	199	Sec. 2166.2525. DETERMINATION OF CONTRACTING METHOD. The
200	200	[commission shall adopt rules that determine the circumstances for
201	201	use of each] method of contracting allowed under this subchapter
202	202	for design and construction services is any method provided by
203	203	Chapter 2267. [In developing the rules, the commission shall
204	204	solicit advice and comment from design and construction
205	205	professionals regarding the criteria the commission will use in
206	206	determining which contracting method is best suited for a project.]
207	207	SECTION 2.09. Subtitle F, Title 10, Government Code, is
208	208	amended by adding Chapter 2267 to read as follows:
209	209	CHAPTER 2267. CONTRACTING AND DELIVERY PROCEDURES FOR
210	210	CONSTRUCTION PROJECTS
211	211	SUBCHAPTER A. GENERAL PROVISIONS
212	212	Sec. 2267.001. DEFINITIONS. In this chapter:
213	213	(1) "Architect" means an individual registered as an
214	214	architect under Chapter 1051, Occupations Code.
215	215	(2) "Engineer" means an individual licensed as an
216	216	engineer under Chapter 1001, Occupations Code.
217	217	(3) "Facility" means, unless otherwise specifically
218	218	provided, an improvement to real property.
219	219	(4) "General conditions" in the context of a contract
220	220	for the construction, rehabilitation, alteration, or repair of a
221	221	facility means on-site management, administrative personnel,
222	222	insurance, bonds, equipment, utilities, and incidental work,
223	223	including minor field labor and materials.
224	224	(5) "General contractor" means a sole proprietorship,
225	225	partnership, corporation, or other legal entity that assumes the
226	226	risk for constructing, rehabilitating, altering, or repairing all
227	227	or part of a facility at the contracted price.
228	228	(6) "Public work contract" means a contract for
229	229	constructing, altering, or repairing a public building or carrying
230	230	out or completing any public work.
231	231	Sec. 2267.002. APPLICABILITY OF CHAPTER TO GOVERNMENTAL
232	232	ENTITIES AND QUASI-GOVERNMENTAL ENTITIES ENGAGED IN PUBLIC WORKS.
233	233	This chapter applies to a public work contract made by a
234	234	governmental entity or quasi-governmental entity authorized by
235	235	state law to make a public work contract, including:
236	236	(1) a state agency as defined by Section 2151.002,
237	237	including the Texas Building and Procurement Commission;
238	238	(2) a local government, including:
239	239	(A) a county;
240	240	(B) a municipality;
241	241	(C) a school district;
242	242	(D) any other special district or authority,
243	243	including a hospital district, a defense base development authority
244	244	established under Chapter 379B, Local Government Code, and a
245	245	conservation and reclamation district, including a river authority
246	246	or any other type of water district; and
247	247	(E) any other political subdivision of this
248	248	state;
249	249	(3) a public junior college as defined by Section
250	250	61.003, Education Code;
251	251	(4) any entity owned by a municipality; and
252	252	(5) any other entity that owns or operates a facility
253	253	for the benefit of a municipality or county.
254	254	Sec. 2267.003. CONFLICT OF LAWS; REQUIREMENT TO FOLLOW
255	255	PROCEDURES OF THIS CHAPTER. (a) Except as provided by this
256	256	section, this chapter prevails over any other law relating to a
257	257	public work contract.
258	258	(b) This chapter does not prevail over a conflicting
259	259	provision in a law relating to contracting with a historically
260	260	underutilized business.
261	261	(c) This chapter does not prevail over a conflicting
262	262	provision in an ordinance or resolution passed by the governing
263	263	body of a municipally owned electric utility in a procedure
264	264	described by Section 252.022(c), Local Government Code, that:
265	265	(1) requires the use of competitive bidding or
266	266	competitive sealed proposals; or
267	267	(2) prescribes a design-build procurement procedure
268	268	that conflicts with this chapter.
269	269	Sec. 2267.004. EXEMPTION: TEXAS DEPARTMENT OF
270	270	TRANSPORTATION; HIGHWAY PROJECTS. This chapter does not apply to:
271	271	(1) a contract entered into by the Texas Department of
272	272	Transportation; or
273	273	(2) a project that receives money from a state or
274	274	federal highway fund.
275	275	Sec. 2267.005. APPLICABILITY: INSTITUTIONS OF HIGHER
276	276	EDUCATION. (a) In this section, "institution of higher
277	277	education," "public junior college," and "university system" have
278	278	the meanings assigned by Section 61.003, Education Code.
279	279	(b) This chapter applies to a public junior college but does
280	280	not apply to:
281	281	(1) any other institution of higher education; or
282	282	(2) a university system.
283	283	Sec. 2267.006. EXEMPTION: REGIONAL TOLLWAY AUTHORITIES.
284	284	This chapter does not apply to a regional tollway authority under
285	285	Chapter 366, Transportation Code.
286	286	[Sections 2267.007-2267.050 reserved for expansion]
287	287	SUBCHAPTER B. GENERAL POWERS AND DUTIES
288	288	Sec. 2267.051. RULES. A governmental entity may adopt
289	289	rules as necessary to implement this chapter.
290	290	Sec. 2267.052. NOTICE REQUIREMENTS. (a) A governmental
291	291	entity shall advertise or publish notice of requests for bids,
292	292	proposals, or qualifications in a manner prescribed by law.
293	293	(b) For a contract entered into by a governmental entity
294	294	under a method provided by this chapter, the governmental entity
295	295	shall publish notice of the time and place the bid or proposal or
296	296	request for qualifications will be received and opened in a manner
297	297	prescribed by law.
298	298	Sec. 2267.053. DELEGATION OF AUTHORITY. (a) The governing
299	299	body of a governmental entity may delegate its authority under this
300	300	chapter regarding an action authorized or required by this chapter
301	301	to a designated representative, committee, or other person.
302	302	(b) The governmental entity shall provide notice of the
303	303	delegation, the limits of the delegation, and the name or title of
304	304	each person designated under Subsection (a) by rule or in the
305	305	request for bids, proposals, or qualifications or in an addendum to
306	306	the request.
307	307	Sec. 2267.054. RIGHT TO WORK. (a) This section applies to
308	308	a governmental entity when the governmental entity is engaged in:
309	309	(1) procuring goods or services under this chapter;
310	310	(2) awarding a contract under this chapter; or
311	311	(3) overseeing procurement or construction for a
312	312	public work or public improvement under this chapter.
313	313	(b) In engaging in an activity to which this section
314	314	applies, a governmental entity:
315	315	(1) may not consider whether a person is a member of or
316	316	has another relationship with any organization; and
317	317	(2) shall ensure that its bid specifications and any
318	318	subsequent contract or other agreement do not deny or diminish the
319	319	right of a person to work because of the person's membership or
320	320	other relationship status with respect to an organization.
321	321	Sec. 2267.055. CRITERIA TO CONSIDER. (a) In determining
322	322	the award of a contract under this chapter, the governmental entity
323	323	may consider:
324	324	(1) the price;
325	325	(2) the offeror's experience and reputation;
326	326	(3) the quality of the offeror's goods or services;
327	327	(4) the impact on the ability of the governmental
328	328	entity to comply with rules relating to historically underutilized
329	329	businesses;
330	330	(5) the offeror's safety record;
331	331	(6) the offeror's proposed personnel;
332	332	(7) whether the offeror's financial capability is
333	333	appropriate to the size and scope of the project; and
334	334	(8) any other relevant factor specifically listed in
335	335	the request for bids, proposals, or qualifications.
336	336	(b) In determining the award of a contract under this
337	337	chapter, the governmental entity shall:
338	338	(1) consider and apply any existing laws, including
339	339	any criteria, related to historically underutilized businesses;
340	340	and
341	341	(2) consider and apply any existing laws, rules, or
342	342	applicable municipal charters, including laws applicable to local
343	343	governments, related to the use of women, minority, small, or
344	344	disadvantaged businesses.
345	345	Sec. 2267.056. USING METHOD OTHER THAN COMPETITIVE BIDDING
346	346	FOR CONSTRUCTION SERVICES; EVALUATION OF PROPOSALS; CRITERIA. (a)
347	347	The governing body of a governmental entity that considers a
348	348	construction contract using a method authorized by this chapter
349	349	other than competitive bidding must, before advertising, determine
350	350	which method provides the best value for the governmental entity.
351	351	(b) The governmental entity shall base its selection among
352	352	offerors on applicable criteria listed for the particular method
353	353	used. The governmental entity shall publish in the request for
354	354	proposals or qualifications the criteria that will be used to
355	355	evaluate the offerors, and the applicable weighted value for each
356	356	criterion.
357	357	(c) The governmental entity shall document the basis of its
358	358	selection and shall make the evaluations public not later than the
359	359	seventh day after the date the contract is awarded.
360	360	Sec. 2267.057. ARCHITECT OR ENGINEER SERVICES. (a) An
361	361	architect or engineer required to be selected or designated under
362	362	this chapter has full responsibility for complying with Chapter
363	363	1051 or 1001, Occupations Code, as applicable.
364	364	(b) If the selected or designated architect or engineer is
365	365	not a full-time employee of the governmental entity, the
366	366	governmental entity shall select the architect or engineer on the
367	367	basis of demonstrated competence and qualifications as provided by
368	368	Section 2254.004.
369	369	Sec. 2267.058. USE OF OTHER PROFESSIONAL SERVICES. (a)
370	370	Independently of the contractor, construction manager-at-risk, or
371	371	design-build firm, the governmental entity shall provide or
372	372	contract for the construction materials engineering, testing, and
373	373	inspection services and the verification testing services
374	374	necessary for acceptance of the facility by the governmental
375	375	entity.
376	376	(b) The governmental entity shall select the services for
377	377	which it contracts under this section in accordance with Section
378	378	2254.004.
379	379	Sec. 2267.059. SEALED BIDS, PROPOSALS, OR QUALIFICATIONS
380	380	REQUIRED. A person who submits a bid, proposal, or qualification to
381	381	a governmental entity shall seal it before delivery.
382	382	[Sections 2267.060-2267.100 reserved for expansion]
383	383	SUBCHAPTER C. COMPETITIVE BIDDING METHOD
384	384	Sec. 2267.101. CONTRACTS FOR FACILITIES: COMPETITIVE
385	385	BIDDING. (a) In this chapter, "competitive bidding" is a
386	386	procurement method by which a governmental entity contracts with a
387	387	contractor for the construction, alteration, rehabilitation, or
388	388	repair of a facility by awarding the contract to the lowest
389	389	responsible bidder.
390	390	(b) Except as otherwise provided by this chapter or other
391	391	law, a governmental entity may contract for the construction,
392	392	alteration, rehabilitation, or repair of a facility only after the
393	393	entity advertises for bids for the contract in a manner prescribed
394	394	by law, receives competitive bids, and awards the contract to the
395	395	lowest responsible bidder.
396	396	Sec. 2267.102. USE OF ARCHITECT OR ENGINEER. The
397	397	governmental entity shall select or designate an architect or
398	398	engineer in accordance with Chapter 1051 or 1001, Occupations Code,
399	399	as applicable, to prepare the construction documents required for a
400	400	project to be awarded by competitive bidding.
401	401	Sec. 2267.103. PREPARATION OF REQUEST. The governmental
402	402	entity shall prepare a request for competitive bids that includes
403	403	construction documents, estimated budget, project scope, estimated
404	404	project completion date, and other information that a contractor
405	405	may require to submit a bid.
406	406	Sec. 2267.104. EVALUATION OF OFFERORS. The governmental
407	407	entity shall receive, publicly open, and read aloud the names of the
408	408	offerors and their bids.
409	409	Sec. 2267.105. SELECTION OF OFFEROR. Not later than the
410	410	seventh day after the date the contract is awarded, the
411	411	governmental entity shall document the basis of its selection and
412	412	shall make the evaluations public.
413	413	Sec. 2267.106. APPLICABILITY OF OTHER COMPETITIVE BIDDING
414	414	LAW TO CERTAIN LOCAL GOVERNMENTAL ENTITIES. Except as otherwise
415	415	specifically provided by this section, Subchapter B, Chapter 271,
416	416	Local Government Code, does not apply to a competitive bidding
417	417	process conducted under this chapter. Sections 271.026,
418	418	271.027(a), and 271.0275, Local Government Code, apply to a
419	419	competitive bidding process conducted under this chapter by a
420	420	governmental entity as defined by Section 271.021, Local Government
421	421	Code.
422	422	[Sections 2267.107-2267.150 reserved for expansion]
423	423	SUBCHAPTER D. COMPETITIVE SEALED PROPOSAL METHOD
424	424	Sec. 2267.151. CONTRACTS FOR FACILITIES: COMPETITIVE
425	425	SEALED PROPOSALS. (a) In this chapter, "competitive sealed
426	426	proposals" is a procurement method by which a governmental entity
427	427	requests proposals, ranks the offerors, negotiates as prescribed,
428	428	and then contracts with a general contractor for the construction,
429	429	rehabilitation, alteration, or repair of a facility.
430	430	(b) In selecting a contractor through competitive sealed
431	431	proposals, a governmental entity shall follow the procedures
432	432	provided by this subchapter.
433	433	Sec. 2267.152. USE OF ARCHITECT OR ENGINEER. The
434	434	governmental entity shall select or designate an architect or
435	435	engineer to prepare construction documents for the project.
436	436	Sec. 2267.153. PREPARATION OF REQUEST. The governmental
437	437	entity shall prepare a request for competitive sealed proposals
438	438	that includes construction documents, selection criteria and the
439	439	weighted value for each criterion, estimated budget, project scope,
440	440	estimated project completion date, and other information that a
441	441	contractor may require to respond to the request.
442	442	Sec. 2267.154. EVALUATION OF OFFERORS. (a) The
443	443	governmental entity shall receive, publicly open, and read aloud
444	444	the names of the offerors and any monetary proposals made by the
445	445	offerors.
446	446	(b) Not later than the 45th day after the date of opening the
447	447	proposals, the governmental entity shall evaluate and rank each
448	448	proposal submitted in relation to the published selection criteria.
449	449	Sec. 2267.155. SELECTION OF OFFEROR. (a) The governmental
450	450	entity shall select the offeror that submits the proposal that
451	451	offers the best value for the governmental entity based on:
452	452	(1) the selection criteria in the request for proposal
453	453	and the weighted value for those criteria in the request for
454	454	proposal; and
455	455	(2) its ranking evaluation.
456	456	(b) The governmental entity shall first attempt to
457	457	negotiate a contract with the selected offeror. The governmental
458	458	entity and its architect or engineer may discuss with the selected
459	459	offeror options for a scope or time modification and any price
460	460	change associated with the modification.
461	461	(c) If the governmental entity is unable to negotiate a
462	462	contract with the selected offeror, the governmental entity shall,
463	463	formally and in writing, end negotiations with that offeror and
464	464	proceed to the next offeror in the order of the selection ranking
465	465	until a contract is reached or all proposals are rejected.
466	466	[Sections 2267.156-2267.200 reserved for expansion]
467	467	SUBCHAPTER E. CONSTRUCTION MANAGER-AGENT METHOD
468	468	Sec. 2267.201. CONTRACTS FOR FACILITIES: CONSTRUCTION
469	469	MANAGER-AGENT. (a) In this chapter, the "construction
470	470	manager-agent method" is a delivery method by which a governmental
471	471	entity contracts with a construction manager-agent to provide
472	472	administrative services and to manage multiple contracts with
473	473	various construction prime contractors.
474	474	(b) A construction manager-agent is a sole proprietorship,
475	475	partnership, corporation, or other legal entity that serves as the
476	476	agent for the governmental entity by providing construction
477	477	administration and management services described by Subsection (a)
478	478	for the construction, rehabilitation, alteration, or repair of a
479	479	facility.
480	480	(c) A governmental entity may retain a construction
481	481	manager-agent for assistance in the construction, rehabilitation,
482	482	alteration, or repair of a facility only as provided by this
483	483	subchapter.
484	484	Sec. 2267.202. CONTRACT PROVISIONS OF CONSTRUCTION
485	485	MANAGER-AGENT. The contract between the governmental entity and
486	486	the construction manager-agent may require the construction
487	487	manager-agent to provide:
488	488	(1) administrative personnel;
489	489	(2) equipment necessary to perform duties under this
490	490	subchapter;
491	491	(3) on-site management; and
492	492	(4) other services specified in the contract.
493	493	Sec. 2267.203. LIMITS ON CONSTRUCTION MANAGER-AGENT. A
494	494	construction manager-agent may not:
495	495	(1) self-perform any aspect of the construction,
496	496	rehabilitation, alteration, or repair of the facility;
497	497	(2) be a party to a construction subcontract for the
498	498	construction, rehabilitation, alteration, or repair of the
499	499	facility; or
500	500	(3) provide or be required to provide performance and
501	501	payment bonds for the construction, rehabilitation, alteration, or
502	502	repair of the facility.
503	503	Sec. 2267.204. FIDUCIARY CAPACITY OF CONSTRUCTION
504	504	MANAGER-AGENT. A construction manager-agent represents the
505	505	governmental entity in a fiduciary capacity.
506	506	Sec. 2267.205. USE OF ARCHITECT OR ENGINEER. (a) On or
507	507	before the selection of a construction manager-agent, the
508	508	governmental entity shall select or designate an architect or
509	509	engineer in accordance with Chapter 1051 or 1001, Occupations Code,
510	510	as applicable, to prepare the construction documents for the
511	511	project.
512	512	(b) The governmental entity's architect or engineer may not
513	513	serve, alone or in combination with another person, as the
514	514	construction manager-agent unless the architect or engineer is
515	515	hired to serve as the construction manager-agent under a separate
516	516	or concurrent selection process conducted in accordance with this
517	517	subchapter. This subsection does not prohibit the governmental
518	518	entity's architect or engineer from providing customary
519	519	construction phase services under the architect's or engineer's
520	520	original professional service agreement in accordance with
521	521	applicable licensing laws.
522	522	(c) To the extent that the construction manager-agent's
523	523	services are defined as part of the practice of architecture or
524	524	engineering under Chapter 1051 or 1001, Occupations Code, those
525	525	services must be conducted by a person licensed under the
526	526	applicable chapter.
527	527	Sec. 2267.206. SELECTION OF CONTRACTORS. A governmental
528	528	entity using the construction manager-agent method shall procure,
529	529	in accordance with applicable law and in any manner authorized by
530	530	this chapter, a general contractor or trade contractors who will
531	531	serve as the prime contractor for their specific portion of the work
532	532	and provide performance and payment bonds to the governmental
533	533	entity.
534	534	Sec. 2267.207. SELECTION OF CONSTRUCTION MANAGER-AGENT. A
535	535	governmental entity shall select a construction manager-agent on
536	536	the basis of demonstrated competence and qualifications in the same
537	537	manner that an architect or engineer is selected under Section
538	538	2254.004.
539	539	Sec. 2267.208. INSURANCE. A construction manager-agent
540	540	selected under this subchapter shall maintain professional
541	541	liability or errors and omissions insurance in the amount of at
542	542	least $1 million for each occurrence.
543	543	[Sections 2267.209-2267.250 reserved for expansion]
544	544	SUBCHAPTER F. CONSTRUCTION MANAGER-AT-RISK METHOD
545	545	Sec. 2267.251. CONTRACTS FOR FACILITIES: CONSTRUCTION
546	546	MANAGER-AT-RISK. (a) In this chapter, the "construction
547	547	manager-at-risk method" is a delivery method by which a
548	548	governmental entity contracts with an architect or engineer for
549	549	design and construction phase services and contracts separately
550	550	with a construction manager-at-risk to serve as the general
551	551	contractor and to provide consultation during the design and
552	552	construction, rehabilitation, alteration, or repair of a facility.
553	553	(b) A construction manager-at-risk is a sole
554	554	proprietorship, partnership, corporation, or other legal entity
555	555	that assumes the risk for construction, rehabilitation,
556	556	alteration, or repair of a facility at the contracted price as a
557	557	general contractor and provides consultation to the governmental
558	558	entity regarding construction during and after the design of the
559	559	facility. The contracted price may be a guaranteed maximum price.
560	560	(c) A governmental entity may use the construction
561	561	manager-at-risk method in selecting a general contractor for the
562	562	construction, rehabilitation, alteration, or repair of a facility
563	563	only as provided by this subchapter.
564	564	Sec. 2267.252. USE OF ARCHITECT OR ENGINEER. (a) On or
565	565	before the selection of a construction manager-at-risk, the
566	566	governmental entity shall select or designate an architect or
567	567	engineer to prepare the construction documents for the project.
568	568	(b) The governmental entity's architect or engineer for a
569	569	project may not serve, alone or in combination with another person,
570	570	as the construction manager-at-risk unless the architect or
571	571	engineer is hired to serve as the construction manager-at-risk
572	572	under a separate or concurrent selection process conducted in
573	573	accordance with this subchapter. This subsection does not prohibit
574	574	the governmental entity's architect or engineer from providing
575	575	customary construction phase services under the architect's or
576	576	engineer's original professional service agreement in accordance
577	577	with applicable licensing laws.
578	578	Sec. 2267.253. SELECTION PROCESS. (a) The governmental
579	579	entity shall select the construction manager-at-risk in a one-step
580	580	or two-step process.
581	581	(b) The governmental entity shall prepare a single request
582	582	for proposals, in the case of a one-step process, and an initial
583	583	request for qualifications, in the case of a two-step process, that
584	584	includes:
585	585	(1) a statement as to whether the selection process is
586	586	a one-step or two-step process;
587	587	(2) general information on the project site, project
588	588	scope, schedule, selection criteria and the weighted value for each
589	589	criterion, and estimated budget and the time and place for receipt
590	590	of the proposals or qualifications; and
591	591	(3) other information that may assist the governmental
592	592	entity in its selection of a construction manager-at-risk.
593	593	(c) The governmental entity shall state the selection
594	594	criteria in the request for proposals or qualifications.
595	595	(d) If a one-step process is used, the governmental entity
596	596	may request, as part of the offeror's proposal, proposed fees and
597	597	prices for fulfilling the general conditions.
598	598	(e) If a two-step process is used, the governmental entity
599	599	may not request fees or prices in step one. In step two, the
600	600	governmental entity may request that five or fewer offerors,
601	601	selected solely on the basis of qualifications, provide additional
602	602	information, including the construction manager-at-risk's proposed
603	603	fee and prices for fulfilling the general conditions.
604	604	(f) At each step, the governmental entity shall receive,
605	605	publicly open, and read aloud the names of the offerors. At the
606	606	appropriate step, the governmental entity shall also read aloud the
607	607	fees and prices, if any, stated in each proposal as the proposal is
608	608	opened.
609	609	(g) Not later than the 45th day after the date of opening the
610	610	final proposals, the governmental entity shall evaluate and rank
611	611	each proposal submitted in relation to the criteria set forth in the
612	612	request for proposals.
613	613	Sec. 2267.254. SELECTION OF OFFEROR. (a) The governmental
614	614	entity shall select the offeror that submits the proposal that
615	615	offers the best value for the governmental entity based on the
616	616	published selection criteria and on its ranking evaluation.
617	617	(b) The governmental entity shall first attempt to
618	618	negotiate a contract with the selected offeror.
619	619	(c) If the governmental entity is unable to negotiate a
620	620	satisfactory contract with the selected offeror, the governmental
621	621	entity shall, formally and in writing, end negotiations with that
622	622	offeror and proceed to negotiate with the next offeror in the order
623	623	of the selection ranking until a contract is reached or
624	624	negotiations with all ranked offerors end.
625	625	(d) Not later than the seventh day after the date the
626	626	contract is awarded, the governmental entity shall make the
627	627	rankings determined under Section 2267.253(g) public.
628	628	Sec. 2267.255. PERFORMANCE OF WORK. (a) A construction
629	629	manager-at-risk shall publicly advertise for bids or proposals and
630	630	receive bids or proposals from trade contractors or subcontractors
631	631	for the performance of all major elements of the work other than the
632	632	minor work that may be included in the general conditions.
633	633	(b) A construction manager-at-risk may seek to perform
634	634	portions of the work itself if:
635	635	(1) the construction manager-at-risk submits its bid
636	636	or proposal for those portions of the work in the same manner as all
637	637	other trade contractors or subcontractors; and
638	638	(2) the governmental entity determines that the
639	639	construction manager-at-risk's bid or proposal provides the best
640	640	value for the governmental entity.
641	641	Sec. 2267.256. REVIEW OF BIDS OR PROPOSALS. (a) The
642	642	construction manager-at-risk shall review all trade contractor or
643	643	subcontractor bids or proposals in a manner that does not disclose
644	644	the contents of the bid or proposal during the selection process to
645	645	a person not employed by the construction manager-at-risk,
646	646	architect, engineer, or governmental entity. All bids or proposals
647	647	shall be made available to the governmental entity on request and to
648	648	the public after the later of the award of the contract or the
649	649	seventh day after the date of final selection of bids or proposals.
650	650	(b) If the construction manager-at-risk reviews, evaluates,
651	651	and recommends to the governmental entity a bid or proposal from a
652	652	trade contractor or subcontractor but the governmental entity
653	653	requires another bid or proposal to be accepted, the governmental
654	654	entity shall compensate the construction manager-at-risk by a
655	655	change in price, time, or guaranteed maximum cost for any
656	656	additional cost and risk that the construction manager-at-risk
657	657	incurs because of the governmental entity's requirement that
658	658	another bid or proposal be accepted.
659	659	Sec. 2267.257. DEFAULT; PERFORMANCE OF WORK. If a selected
660	660	trade contractor or subcontractor defaults in the performance of
661	661	its work or fails to execute a subcontract after being selected in
662	662	accordance with this subchapter, the construction manager-at-risk
663	663	may itself fulfill, without advertising, the contract requirements
664	664	or select a replacement trade contractor or subcontractor to
665	665	fulfill the contract requirements.
666	666	Sec. 2267.258. PERFORMANCE OR PAYMENT BOND. (a) If a fixed
667	667	contract amount or guaranteed maximum price has not been determined
668	668	at the time the contract is awarded, the penal sums of the
669	669	performance and payment bonds delivered to the governmental entity
670	670	must each be in an amount equal to the construction budget, as
671	671	specified in the request for proposals or qualifications.
672	672	(b) The construction manager-at-risk shall deliver the
673	673	bonds not later than the 10th day after the date the construction
674	674	manager-at-risk executes the contract unless the construction
675	675	manager-at-risk furnishes a bid bond or other financial security
676	676	acceptable to the governmental entity to ensure that the
677	677	construction manager will furnish the required performance and
678	678	payment bonds when a guaranteed maximum price is established.
679	679	[Sections 2267.259-2267.300 reserved for expansion]
680	680	SUBCHAPTER G. BUILDING USING DESIGN-BUILD METHOD
681	681	Sec. 2267.301. CONTRACTS FOR FACILITIES: DESIGN-BUILD. In
682	682	this chapter, "design-build" is a project delivery method by which
683	683	a governmental entity contracts with a single entity to provide
684	684	both design and construction services for the construction,
685	685	rehabilitation, alteration, or repair of a facility.
686	686	Sec. 2267.302. APPLICABILITY OF SUBCHAPTER TO BUILDINGS;
687	687	EXCEPTIONS. This subchapter applies only to a facility that is a
688	688	building or an associated structure, including an electric utility
689	689	structure. This subchapter does not apply to:
690	690	(1) a highway, road, street, bridge, underground
691	691	utility, water supply project, water plant, wastewater plant, water
692	692	and wastewater distribution or conveyance facility, wharf, dock,
693	693	airport runway or taxiway, drainage project, or related type of
694	694	project associated with civil engineering construction; or
695	695	(2) a building or structure that is incidental to a
696	696	project that is primarily a civil engineering construction project.
697	697	Sec. 2267.303. CONTRACTS FOR BUILDINGS: DESIGN-BUILD. A
698	698	governmental entity may use the design-build method for the
699	699	construction, rehabilitation, alteration, or repair of a building
700	700	or associated structure only as provided by this subchapter. In
701	701	using that method, the governmental entity shall enter into a
702	702	single contract with a design-build firm for the design and
703	703	construction of the building or associated structure.
704	704	Sec. 2267.304. DESIGN-BUILD FIRMS. A design-build firm
705	705	under this subchapter must be a sole proprietorship, partnership,
706	706	corporation, or other legal entity or team that includes an
707	707	architect or engineer and a construction contractor.
708	708	Sec. 2267.305. USE OF ARCHITECT OR ENGINEER AS INDEPENDENT
709	709	REPRESENTATIVE. The governmental entity shall select or designate
710	710	an architect or engineer independent of the design-build firm to
711	711	act as the governmental entity's representative for the duration of
712	712	the project.
713	713	Sec. 2267.306. PREPARATION OF REQUEST. (a) The
714	714	governmental entity shall prepare a request for qualifications that
715	715	includes general information on the project site, project scope,
716	716	budget, special systems, selection criteria and the weighted value
717	717	for each criterion, and other information that may assist potential
718	718	design-build firms in submitting proposals for the project.
719	719	(b) The governmental entity shall also prepare the design
720	720	criteria package that includes more detailed information on the
721	721	project. If the preparation of the design criteria package
722	722	requires architectural or engineering services that constitute the
723	723	practice of architecture within the meaning of Chapter 1051,
724	724	Occupations Code, or the practice of engineering within the meaning
725	725	of Chapter 1001, Occupations Code, those services shall be provided
726	726	in accordance with the applicable law.
727	727	(c) The design criteria package must include a set of
728	728	documents that provides sufficient information, including criteria
729	729	for selection, to permit a design-build firm to prepare a response
730	730	to the governmental entity's request for qualifications and to
731	731	provide any additional information requested. The design criteria
732	732	package must specify criteria the governmental entity considers
733	733	necessary to describe the project and may include, as appropriate,
734	734	the legal description of the site, survey information concerning
735	735	the site, interior space requirements, special material
736	736	requirements, material quality standards, conceptual criteria for
737	737	the project, special equipment requirements, cost or budget
738	738	estimates, time schedules, quality assurance and quality control
739	739	requirements, site development requirements, applicable codes and
740	740	ordinances, provisions for utilities, parking requirements, and
741	741	any other requirement.
742	742	(d) The governmental entity may not require offerors to
743	743	submit detailed architectural or engineering designs as part of a
744	744	proposal or a response to a request for qualifications.
745	745	Sec. 2267.307. EVALUATION OF DESIGN-BUILD FIRMS. (a) For
746	746	each design-build firm that responded to the request for
747	747	qualifications, the governmental entity shall evaluate the firm's
748	748	experience, technical competence, and capability to perform, the
749	749	past performance of the firm and members of the firm, and other
750	750	appropriate factors submitted by the firm in response to the
751	751	request for qualifications, except that cost-related or
752	752	price-related evaluation factors are not permitted.
753	753	(b) Each firm must certify to the governmental entity that
754	754	each architect or engineer that is a member of the firm was selected
755	755	based on demonstrated competence and qualifications, in the manner
756	756	provided by Section 2254.004.
757	757	(c) The governmental entity shall qualify a maximum of five
758	758	responders to submit proposals that contain additional information
759	759	and, if the governmental entity chooses, to interview for final
760	760	selection.
761	761	(d) The governmental entity shall evaluate the additional
762	762	information submitted by the offerors on the basis of the selection
763	763	criteria stated in the request for qualifications and the results
764	764	of any interview.
765	765	(e) The governmental entity may request additional
766	766	information regarding demonstrated competence and qualifications,
767	767	considerations of the safety and long-term durability of the
768	768	project, the feasibility of implementing the project as proposed,
769	769	the ability of the offeror to meet schedules, or costing
770	770	methodology. As used in this subsection, "costing methodology"
771	771	means an offeror's policies on subcontractor markup, definition of
772	772	general conditions, range of cost for general conditions, policies
773	773	on retainage, policies on contingencies, discount for prompt
774	774	payment, and expected staffing for administrative duties. The term
775	775	does not include a guaranteed maximum price or bid for overall
776	776	design or construction.
777	777	(f) The governmental entity shall rank each proposal
778	778	submitted on the basis of the criteria set forth in the request for
779	779	qualifications.
780	780	Sec. 2267.308. SELECTION OF DESIGN-BUILD FIRM. (a) The
781	781	governmental entity shall select the design-build firm that submits
782	782	the proposal offering the best value for the governmental entity on
783	783	the basis of the published selection criteria and on its ranking
784	784	evaluations.
785	785	(b) The governmental entity shall first attempt to
786	786	negotiate a contract with the selected firm.
787	787	(c) If the governmental entity is unable to negotiate a
788	788	satisfactory contract with the selected firm, the governmental
789	789	entity shall, formally and in writing, end all negotiations with
790	790	that firm and proceed to negotiate with the next firm in the order
791	791	of the selection ranking until a contract is reached or
792	792	negotiations with all ranked firms end.
793	793	(d) Not later than the seventh day after the date the
794	794	contract is awarded, the governmental entity shall make the
795	795	rankings determined under Section 2267.307(f) public.
796	796	Sec. 2267.309. SUBMISSION OF DESIGN AFTER SELECTION. After
797	797	selection of the design-build firm, that firm's architects or
798	798	engineers shall submit all design elements for review and
799	799	determination of scope compliance to the governmental entity or the
800	800	governmental entity's architect or engineer before or concurrently
801	801	with construction.
802	802	Sec. 2267.310. FINAL CONSTRUCTION DOCUMENTS. The
803	803	design-build firm shall supply a set of construction documents for
804	804	the completed project to the governmental entity at the conclusion
805	805	of construction. The documents must note any changes made during
806	806	construction.
807	807	Sec. 2267.311. PERFORMANCE OR PAYMENT BOND. (a) A payment
808	808	or performance bond is not required and may not provide coverage for
809	809	the design portion of the design-build contract with the
810	810	design-build firm under this subchapter.
811	811	(b) If a fixed contract amount or guaranteed maximum price
812	812	has not been determined at the time the design-build contract is
813	813	awarded, the penal sums of the performance and payment bonds
814	814	delivered to the governmental entity must each be in an amount equal
815	815	to the construction budget, as specified in the design criteria
816	816	package.
817	817	(c) The design-build firm shall deliver the bonds not later
818	818	than the 10th day after the date the design-build firm executes the
819	819	contract unless the design-build firm furnishes a bid bond or other
820	820	financial security acceptable to the governmental entity to ensure
821	821	that the design-build firm will furnish the required performance
822	822	and payment bonds before construction begins.
823	823	[Sections 2267.312-2267.350 reserved for expansion]
824	824	SUBCHAPTER H. DESIGN-BUILD PROCEDURES FOR CERTAIN CIVIL WORKS
825	825	PROJECTS
826	826	Sec. 2267.351. DEFINITIONS. In this subchapter:
827	827	(1) "Civil works project" means:
828	828	(A) roads, streets, bridges, utilities, water
829	829	supply projects, water plants, wastewater plants, water
830	830	distribution and wastewater conveyance facilities, desalination
831	831	projects, airport runways and taxiways, storm drainage and flood
832	832	control projects, or transit projects;
833	833	(B) types of projects or facilities related to
834	834	those described by Paragraph (A) and associated with civil
835	835	engineering construction; and
836	836	(C) buildings or structures that are incidental
837	837	to projects or facilities that are described by Paragraphs (A) and
838	838	(B) and that are primarily civil engineering construction projects.
839	839	(2) "Design-build firm" means a partnership,
840	840	corporation, or other legal entity or team that includes an
841	841	engineer and a construction contractor qualified to engage in civil
842	842	works construction in Texas.
843	843	(3) "Design criteria package" means a set of documents
844	844	that:
845	845	(A) provides sufficient information to convey
846	846	the intent, goals, criteria, and objectives of the civil works
847	847	project; and
848	848	(B) permits a design-build firm to:
849	849	(i) assess the scope of work and the risk
850	850	involved; and
851	851	(ii) submit a proposal on the project.
852	852	Sec. 2267.352. APPLICABILITY. This subchapter applies to a
853	853	governmental entity with a population of more than 100,000 within
854	854	its geographic boundaries or service area.
855	855	Sec. 2267.353. CONTRACTS FOR CIVIL WORKS PROJECTS:
856	856	DESIGN-BUILD. (a) A governmental entity may use the design-build
857	857	method for the construction, rehabilitation, alteration, or repair
858	858	of a civil works project. In using this method and in entering into
859	859	a contract for the services of a design-build firm, the contracting
860	860	governmental entity and the design-build firm shall follow the
861	861	procedures provided by this subchapter.
862	862	(b) A contract for a project under this subchapter may cover
863	863	only a single integrated project. A governmental entity may not
864	864	enter into a contract for aggregated projects at multiple
865	865	locations. For purposes of this subsection:
866	866	(1) if a metropolitan transit authority created under
867	867	Chapter 451, Transportation Code, enters into a contract for a
868	868	project involving a bus rapid transit system created under Chapter
869	869	451, Transportation Code, the bus rapid transit system is a single
870	870	integrated project; and
871	871	(2) a water treatment plant, including a desalination
872	872	plant, that includes treatment facilities, well fields, and
873	873	pipelines is a single integrated project.
874	874	(c) A governmental entity shall use the following criteria
875	875	as a minimum basis for determining the circumstances under which
876	876	the design-build method is appropriate for a project:
877	877	(1) the extent to which the entity can adequately
878	878	define the project requirements;
879	879	(2) the time constraints for the delivery of the
880	880	project;
881	881	(3) the ability to ensure that a competitive
882	882	procurement can be held; and
883	883	(4) the capability of the entity to manage and oversee
884	884	the project, including the availability of experienced personnel or
885	885	outside consultants who are familiar with the design-build method
886	886	of project delivery.
887	887	(d) A governmental entity shall make a formal finding on the
888	888	criteria described by Subsection (c) before preparing a request for
889	889	qualifications under Section 2267.357.
890	890	Sec. 2267.354. LIMITATION ON NUMBER OF PROJECTS. (a)
891	891	Before September 1, 2011:
892	892	(1) a governmental entity with a population of 500,000
893	893	or more may, under this subchapter, enter into contracts for not
894	894	more than three projects in any fiscal year; and
895	895	(2) a municipally owned water utility with a separate
896	896	governing board appointed by the governing body of a municipality
897	897	with a population of 500,000 or more may:
898	898	(A) independently enter into a contract for not
899	899	more than one civil works project in any fiscal year; and
900	900	(B) enter into contracts for additional civil
901	901	works projects in any fiscal year, but not more than the number of
902	902	civil works projects prescribed by the limit in Subdivision (1) for
903	903	the municipality, provided that:
904	904	(i) the additional contracts for the civil
905	905	works projects entered into by the utility under this paragraph are
906	906	allocated to the number of contracts the municipality that appoints
907	907	the utility's governing board may enter under Subdivision (1); and
908	908	(ii) the governing body of the municipality
909	909	must approve the contracts.
910	910	(b) Before September 1, 2013, a governmental entity with a
911	911	population of 100,000 or more but less than 500,000 may, under this
912	912	subchapter, enter into contracts for not more than two projects in
913	913	any fiscal year.
914	914	(c) After the period described by Subsection (a) or (b):
915	915	(1) a governmental entity with a population of 500,000
916	916	or more may, under this subchapter, enter into contracts for not
917	917	more than six projects in any fiscal year;
918	918	(2) a municipally owned water utility with a separate
919	919	governing board appointed by the governing body of a municipality
920	920	with a population of 500,000 or more may:
921	921	(A) independently enter into contracts for not
922	922	more than two civil works projects in any fiscal year; and
923	923	(B) enter into contracts for additional civil
924	924	works projects in any fiscal year, but not more than the number of
925	925	civil works projects prescribed by the limit in Subdivision (1) for
926	926	the municipality, provided that:
927	927	(i) the additional contracts for the civil
928	928	works projects entered into by the utility under this paragraph are
929	929	allocated to the number of contracts the municipality that appoints
930	930	the utility's governing board may enter under Subdivision (1); and
931	931	(ii) the governing body of the municipality
932	932	must approve the contracts; and
933	933	(3) a governmental entity with a population of 100,000
934	934	or more but less than 500,000 may, under this subchapter, enter into
935	935	contracts for not more than four projects in any fiscal year.
936	936	(d) For purposes of determining the number of eligible
937	937	projects under this section, a municipally owned water utility with
938	938	a separate governing board appointed by the governing body of the
939	939	municipality is considered part of the municipality.
940	940	Sec. 2267.355. USE OF ENGINEER. (a) The governmental
941	941	entity shall select or designate an engineer who is independent of
942	942	the design-build firm to act as its representative for the
943	943	procurement process and for the duration of the work on the civil
944	944	works project. The selected or designated engineer has full
945	945	responsibility for complying with Chapter 1001, Occupations Code.
946	946	(b) If the engineer is not a full-time employee of the
947	947	governmental entity, the governmental entity shall select the
948	948	engineer on the basis of demonstrated competence and qualifications
949	949	as provided by Section 2254.004.
950	950	Sec. 2267.356. USE OF OTHER PROFESSIONAL SERVICES. (a) The
951	951	governmental entity shall provide or contract for, independently of
952	952	the design-build firm, the following services as necessary for the
953	953	acceptance of the civil works project by the entity:
954	954	(1) inspection services;
955	955	(2) construction materials engineering and testing;
956	956	and
957	957	(3) verification testing services.
958	958	(b) The governmental entity shall select the services for
959	959	which it contracts under this section in accordance with Section
960	960	2254.004.
961	961	Sec. 2267.357. REQUEST FOR QUALIFICATIONS. (a) The
962	962	governmental entity shall prepare a request for qualifications that
963	963	includes:
964	964	(1) information on the civil works project site;
965	965	(2) project scope;
966	966	(3) project budget;
967	967	(4) project schedule;
968	968	(5) criteria for selection under Section 2267.359 and
969	969	the weighting of the criteria; and
970	970	(6) other information that may assist potential
971	971	design-build firms in submitting proposals for the project.
972	972	(b) The governmental entity shall also prepare a design
973	973	criteria package as described by Section 2267.358.
974	974	Sec. 2267.358. CONTENTS OF DESIGN CRITERIA PACKAGE. A
975	975	design criteria package may include, as appropriate:
976	976	(1) budget or cost estimates;
977	977	(2) information on the site;
978	978	(3) performance criteria;
979	979	(4) special material requirements;
980	980	(5) initial design calculations;
981	981	(6) known utilities;
982	982	(7) capacity requirements;
983	983	(8) quality assurance and quality control
984	984	requirements;
985	985	(9) the type, size, and location of structures; and
986	986	(10) notice of any ordinances, rules, or goals adopted
987	987	by the governmental entity relating to awarding contracts to
988	988	historically underutilized businesses.
989	989	Sec. 2267.359. EVALUATION OF DESIGN-BUILD FIRMS. (a) The
990	990	governmental entity shall receive proposals and shall evaluate each
991	991	offeror's experience, technical competence, capability to perform,
992	992	the past performance of the offeror's team and members of the team,
993	993	and other appropriate factors submitted by the team or firm in
994	994	response to the request for qualifications, except that
995	995	cost-related or price-related evaluation factors are not permitted
996	996	at this stage.
997	997	(b) Each offeror must:
998	998	(1) select or designate each engineer that is a member
999	999	of its team based on demonstrated competence and qualifications, in
1000	1000	the manner provided by Section 2254.004; and
1001	1001	(2) certify to the governmental entity that each
1002	1002	selection or designation was based on demonstrated competence and
1003	1003	qualifications, in the manner provided by Section 2254.004.
1004	1004	(c) The governmental entity shall qualify offerors to
1005	1005	submit additional information and, if the entity chooses, to
1006	1006	interview for final selection.
1007	1007	Sec. 2267.360. SELECTION OF DESIGN-BUILD FIRM. The
1008	1008	governmental entity shall select a design-build firm using a
1009	1009	combination of technical and cost proposals as provided by Section
1010	1010	2267.361.
1011	1011	Sec. 2267.361. PROCEDURES FOR COMBINATION OF TECHNICAL AND
1012	1012	COST PROPOSALS. (a) A governmental entity shall request proposals
1013	1013	from design-build firms identified under Section 2267.359(c). A
1014	1014	firm must submit a proposal not later than the 180th day after the
1015	1015	date the governmental entity makes a public request for the
1016	1016	proposals from the selected firms. The request for proposals must
1017	1017	include:
1018	1018	(1) a design criteria package;
1019	1019	(2) if the project site is identified, a geotechnical
1020	1020	baseline report or other information that provides the design-build
1021	1021	firm minimum geotechnical design parameters to submit a proposal;
1022	1022	(3) detailed instructions for preparing the technical
1023	1023	proposal and the items to be included, including a description of
1024	1024	the form and level of completeness of drawings expected; and
1025	1025	(4) the relative weighting of the technical and price
1026	1026	proposals and the formula by which the proposals will be evaluated
1027	1027	and ranked.
1028	1028	(b) The technical proposal is a component of the proposal
1029	1029	under this section.
1030	1030	(c) Each proposal must include a sealed technical proposal
1031	1031	and a separate sealed cost proposal.
1032	1032	(d) The technical proposal must address:
1033	1033	(1) project approach;
1034	1034	(2) anticipated problems;
1035	1035	(3) proposed solutions to anticipated problems;
1036	1036	(4) ability to meet schedules;
1037	1037	(5) conceptual engineering design; and
1038	1038	(6) other information requested by the governmental
1039	1039	entity.
1040	1040	(e) The governmental entity shall first open, evaluate, and
1041	1041	score each responsive technical proposal submitted on the basis of
1042	1042	the criteria described in the request for proposals and assign
1043	1043	points on the basis of the weighting specified in the request for
1044	1044	proposals. The governmental entity may reject as nonresponsive any
1045	1045	firm that makes a significant change to the composition of its firm
1046	1046	as initially submitted. The governmental entity shall subsequently
1047	1047	open, evaluate, and score the cost proposals from firms that
1048	1048	submitted a responsive technical proposal and assign points on the
1049	1049	basis of the weighting specified in the request for proposals. The
1050	1050	governmental entity shall select the design-build firm in
1051	1051	accordance with the formula provided in the request for proposals.
1052	1052	Sec. 2267.362. NEGOTIATION. After selecting the highest
1053	1053	ranked design-build firm under Section 2267.361, the governmental
1054	1054	entity shall first attempt to negotiate a contract with the
1055	1055	selected firm. If the governmental entity is unable to negotiate a
1056	1056	satisfactory contract with the selected firm, the entity shall,
1057	1057	formally and in writing, end all negotiations with that firm and
1058	1058	proceed to negotiate with the next firm in the order of the
1059	1059	selection ranking until a contract is reached or negotiations with
1060	1060	all ranked firms end.
1061	1061	Sec. 2267.363. ASSUMPTION OF RISKS. The governmental
1062	1062	entity shall assume:
1063	1063	(1) all risks and costs associated with:
1064	1064	(A) scope changes and modifications, as
1065	1065	requested by the governmental entity;
1066	1066	(B) unknown or differing site conditions unless
1067	1067	otherwise provided by the governmental entity in the request for
1068	1068	proposals and final contract;
1069	1069	(C) regulatory permitting, if the governmental
1070	1070	entity is responsible for those risks and costs by law or contract;
1071	1071	and
1072	1072	(D) natural disasters and other force majeure
1073	1073	events unless otherwise provided by the governmental entity in the
1074	1074	request for proposals and final contract; and
1075	1075	(2) all costs associated with property acquisition,
1076	1076	excluding costs associated with acquiring a temporary easement or
1077	1077	work area associated with staging or construction for the project.
1078	1078	Sec. 2267.364. STIPEND AMOUNT FOR UNSUCCESSFUL OFFERORS.
1079	1079	(a) Unless a stipend is paid under Subsection (c), the design-build
1080	1080	firm retains all rights to the work product submitted in a proposal.
1081	1081	The governmental entity may not release or disclose to any person,
1082	1082	including the successful offeror, the work product contained in an
1083	1083	unsuccessful proposal. The governmental entity shall return all
1084	1084	copies of the proposal and other information submitted to an
1085	1085	unsuccessful offeror. The governmental entity or its agents may
1086	1086	not make use of any unique or nonordinary design element,
1087	1087	technique, method, or process contained in the unsuccessful
1088	1088	proposal that was not also contained in the successful proposal at
1089	1089	the time of the original submittal, unless the entity acquires a
1090	1090	license from the unsuccessful offeror.
1091	1091	(b) A violation of this section voids the contract for the
1092	1092	project entered into by the governmental entity. The governmental
1093	1093	entity is liable to any unsuccessful offeror, or any member of the
1094	1094	design-build team or its assignee, for one-half of the cost savings
1095	1095	associated with the unauthorized use of the work product of the
1096	1096	unsuccessful offeror. Any interested party may bring an action for
1097	1097	an injunction, declaratory relief, or damages for a violation of
1098	1098	this section. A party who prevails in an action under this
1099	1099	subsection is entitled to reasonable attorney's fees as approved by
1100	1100	the court.
1101	1101	(c) The governmental entity may offer an unsuccessful
1102	1102	design-build firm that submits a response to the entity's request
1103	1103	for additional information under Section 2267.361 a stipend for
1104	1104	preliminary engineering costs associated with the development of
1105	1105	the proposal. The stipend must be one-half of one percent of the
1106	1106	contract amount and must be specified in the initial request for
1107	1107	proposals. If the offer is accepted and paid, the governmental
1108	1108	entity may make use of any work product contained in the proposal,
1109	1109	including the techniques, methods, processes, and information
1110	1110	contained in the proposal. The use by the governmental entity of
1111	1111	any design element contained in an unsuccessful proposal is at the
1112	1112	sole risk and discretion of the entity and does not confer liability
1113	1113	on the recipient of the stipend under this subsection.
1114	1114	(d) Notwithstanding other law, including Chapter 552, work
1115	1115	product contained in an unsuccessful proposal submitted and
1116	1116	rejected under this subchapter is confidential and may not be
1117	1117	released unless a stipend offer has been accepted and paid as
1118	1118	provided by Subsection (c).
1119	1119	Sec. 2267.365. COMPLETION OF DESIGN. (a) Following
1120	1120	selection of a design-build firm under this subchapter, the firm's
1121	1121	engineers shall submit all design elements for review and
1122	1122	determination of scope compliance to the governmental entity before
1123	1123	or concurrently with construction.
1124	1124	(b) An appropriately licensed design professional shall
1125	1125	sign and seal construction documents before the documents are
1126	1126	released for construction.
1127	1127	Sec. 2267.366. FINAL CONSTRUCTION DOCUMENTS. At the
1128	1128	conclusion of construction, the design-build firm shall supply to
1129	1129	the governmental entity a record set of construction documents for
1130	1130	the project prepared as provided by Chapter 1001, Occupations Code.
1131	1131	Sec. 2267.367. PERFORMANCE OR PAYMENT BOND. (a) A
1132	1132	performance or payment bond is not required for the portion of a
1133	1133	design-build contract under this section that includes design
1134	1134	services only.
1135	1135	(b) If a fixed contract amount or guaranteed maximum price
1136	1136	has not been determined at the time a design-build contract is
1137	1137	awarded, the penal sums of the performance and payment bonds
1138	1138	delivered to the governmental entity must each be in an amount equal
1139	1139	to the construction budget, if commercially available and
1140	1140	practical, as specified in the design criteria package.
1141	1141	(c) If the governmental entity awards a design-build
1142	1142	contract under Section 2267.361, the design-build firm shall
1143	1143	deliver the bonds not later than the 10th day after the date the
1144	1144	design-build firm executes the contract unless the design-build
1145	1145	firm furnishes a bid bond or other financial security acceptable to
1146	1146	the governmental entity to ensure that the design-build firm will
1147	1147	furnish the required performance and payment bonds before the
1148	1148	commencement of construction.
1149	1149	[Sections 2267.368-2267.400 reserved for expansion]
1150	1150	SUBCHAPTER I. JOB ORDER CONTRACTS METHOD
1151	1151	Sec. 2267.401. JOB ORDER CONTRACTING. In this chapter,
1152	1152	"job order contracting" is a procurement method used for
1153	1153	maintenance, repair, alteration, renovation, remediation, or minor
1154	1154	construction of a facility when the work is of a recurring nature
1155	1155	but the delivery times, type, and quantities of work required are
1156	1156	indefinite.
1157	1157	Sec. 2267.402. APPLICABILITY OF SUBCHAPTER TO BUILDINGS;
1158	1158	EXCEPTIONS. This subchapter applies only to a facility that is a
1159	1159	building, the design and construction of which is governed by
1160	1160	accepted building codes, or a structure or land, whether improved
1161	1161	or unimproved, that is associated with a building. This subchapter
1162	1162	does not apply to:
1163	1163	(1) a highway, road, street, bridge, utility, water
1164	1164	supply project, water plant, wastewater plant, water and wastewater
1165	1165	distribution or conveyance facility, wharf, dock, airport runway or
1166	1166	taxiway, drainage project, or related type of project associated
1167	1167	with civil engineering construction; or
1168	1168	(2) a building or structure that is incidental to a
1169	1169	project that is primarily a civil engineering construction project.
1170	1170	Sec. 2267.403. REQUIREMENTS FOR JOB ORDER CONTRACTS FOR
1171	1171	FACILITIES. (a) A governmental entity may award job order
1172	1172	contracts for the maintenance, repair, alteration, renovation,
1173	1173	remediation, or minor construction of a facility if:
1174	1174	(1) the work is of a recurring nature but the delivery
1175	1175	times are indefinite; and
1176	1176	(2) indefinite quantities and orders are awarded
1177	1177	substantially on the basis of predescribed and prepriced tasks.
1178	1178	(b) The governmental entity shall establish the maximum
1179	1179	aggregate contract price when it advertises the proposal.
1180	1180	(c) The governing body of a governmental entity shall
1181	1181	approve each job order that exceeds:
1182	1182	(1) $500,000 under the contract; or
1183	1183	(2) a lesser amount as established by the governing
1184	1184	body.
1185	1185	Sec. 2267.404. CONTRACTUAL UNIT PRICES. The governmental
1186	1186	entity may establish contractual unit prices for a job order
1187	1187	contract by:
1188	1188	(1) specifying one or more published construction unit
1189	1189	price books and the applicable divisions or line items; or
1190	1190	(2) providing a list of work items and requiring the
1191	1191	offerors to propose one or more coefficients or multipliers to be
1192	1192	applied to the price book or prepriced work items as the price
1193	1193	proposal.
1194	1194	Sec. 2267.405. COMPETITIVE SEALED PROPOSAL METHOD. (a) A
1195	1195	governmental entity may use the competitive sealed proposal method
1196	1196	under Subchapter D for job order contracts.
1197	1197	(b) The governmental entity shall advertise for, receive,
1198	1198	and publicly open sealed proposals for job order contracts.
1199	1199	(c) The governmental entity may require offerors to submit
1200	1200	information in addition to rates, including experience, past
1201	1201	performance, and proposed personnel and methodology.
1202	1202	Sec. 2267.406. AWARDING OF JOB ORDER CONTRACTS. The
1203	1203	governmental entity may award job order contracts to one or more job
1204	1204	order contractors in connection with each solicitation of
1205	1205	proposals.
1206	1206	Sec. 2267.407. USE OF JOB ORDER CONTRACT. A job order
1207	1207	contract may be used to accomplish work only for the governmental
1208	1208	entity that awards the contract unless:
1209	1209	(1) the solicitation for the job order contract and
1210	1210	the contract specifically provide for use by other persons; or
1211	1211	(2) the governmental entity enters into an interlocal
1212	1212	agreement that provides otherwise.
1213	1213	Sec. 2267.408. USE OF ARCHITECT OR ENGINEER. If a job order
1214	1214	contract or an order issued under the contract requires
1215	1215	architectural or engineering services that constitute the practice
1216	1216	of architecture within the meaning of Chapter 1051, Occupations
1217	1217	Code, or the practice of engineering within the meaning of Chapter
1218	1218	1001, Occupations Code, the governmental entity shall select or
1219	1219	designate an architect or engineer to prepare the construction
1220	1220	documents for the project.
1221	1221	Sec. 2267.409. JOB ORDER CONTRACT TERM. The base term for a
1222	1222	job order contract may not exceed two years. The governmental
1223	1223	entity may renew the contract annually for not more than three
1224	1224	additional years.
1225	1225	Sec. 2267.410. JOB ORDERS. (a) An order for a job or
1226	1226	project under a job order contract must be signed by the
1227	1227	governmental entity's representative and the contractor.
1228	1228	(b) The order may be:
1229	1229	(1) a fixed price, lump-sum contract based
1230	1230	substantially on contractual unit pricing applied to estimated
1231	1231	quantities; or
1232	1232	(2) a unit price order based on the quantities and line
1233	1233	items delivered.
1234	1234	Sec. 2267.411. PAYMENT AND PERFORMANCE BONDS. The
1235	1235	contractor shall provide payment and performance bonds, if required
1236	1236	by law, based on the amount or estimated amount of any order.
1237	1237	[Sections 2267.412-2267.450 reserved for expansion]
1238	1238	SUBCHAPTER J. ENFORCEMENT
1239	1239	Sec. 2267.451. VOID CONTRACT. (a) A contract, including a
1240	1240	job order, entered into in violation of this chapter and any bonds
1241	1241	issued in connection with the contract are voidable as against
1242	1242	public policy.
1243	1243	(b) An action to void a contract under this section does not
1244	1244	excuse the obligation of the governmental entity to pay for any
1245	1245	service performed or material delivered in good faith by a
1246	1246	contractor, architect, engineer, design-builder, or construction
1247	1247	manager before the date on which the contract is determined to be
1248	1248	void.
1249	1249	Sec. 2267.452. DECLARATORY OR INJUNCTIVE RELIEF. (a) This
1250	1250	chapter may be enforced through an action for declaratory or
1251	1251	injunctive relief filed not later than the 10th day after the date
1252	1252	on which the contract is awarded.
1253	1253	(b) This section does not apply to enforcement of a contract
1254	1254	entered into by a state agency. In this subsection, "state agency"
1255	1255	has the meaning assigned by Section 2151.002. The term includes the
1256	1256	Texas Building and Procurement Commission.
1257	1257	SECTION 2.10. Section 252.048, Local Government Code, is
1258	1258	amended by adding Subsection (c-1) to read as follows:
1259	1259	(c-1) If a change order for a public works contract in a
1260	1260	municipality with a population of 500,000 or more involves a
1261	1261	decrease or an increase of $100,000 or less, or a lesser amount as
1262	1262	provided by ordinance, the governing body of the municipality may
1263	1263	grant general authority to an administrative official of the
1264	1264	municipality to approve the change order.
1265	1265	SECTION 2.11. Section 271.054, Local Government Code, is
1266	1266	amended to read as follows:
1267	1267	Sec. 271.054. COMPETITIVE BIDDING REQUIREMENT. Before the
1268	1268	governing body of an issuer may enter into a contract requiring an
1269	1269	expenditure by or imposing an obligation or liability on the
1270	1270	issuer, or on a subdivision of the issuer if the issuer is a county,
1271	1271	of more than $25,000, the governing body must:
1272	1272	(1) submit the proposed contract to competitive
1273	1273	bidding; or
1274	1274	(2) use an alternate method of project delivery
1275	1275	authorized by Chapter 2267, Government Code.
1276	1276	SECTION 2.12. Section 271.060, Local Government Code, is
1277	1277	amended by amending Subsection (b) and adding Subsection (c) to
1278	1278	read as follows:
1279	1279	(b) The total price of a contract may not be increased by a
1280	1280	change order unless provision has been made for the payment of the
1281	1281	added cost by the appropriation of current funds or bond funds for
1282	1282	that purpose, by the authorization of the issuance of certificates,
1283	1283	or by a combination of those procedures.
1284	1284	(c) A contract with an [The] original contract price of $1
1285	1285	million or more may not be increased by more than 25 percent. If a
1286	1286	change order for a contract with an original contract price of less
1287	1287	than $1 million increases the contract amount to $1 million or more,
1288	1288	subsequent change orders may not increase the revised contract
1289	1289	amount by more than 25 percent. [The original price may not be
1290	1290	decreased by more than 25 percent without the consent of the
1291	1291	contractor.]
1292	1292	ARTICLE 3. ADDITIONAL EXEMPTIONS
1293	1293	SECTION 3.01. Section 44.901, Education Code, is amended by
1294	1294	adding Subsection (j) to read as follows:
1295	1295	(j) Chapter 2267, Government Code, does not apply to this
1296	1296	section.
1297	1297	SECTION 3.02. Section 51.927, Education Code, is amended by
1298	1298	adding Subsection (k) to read as follows:
1299	1299	(k) Chapter 2267, Government Code, does not apply to this
1300	1300	section.
1301	1301	SECTION 3.03. Section 2166.406, Government Code, is amended
1302	1302	by adding Subsection (k) to read as follows:
1303	1303	(k) Chapter 2267 does not apply to this section.
1304	1304	SECTION 3.04. Chapter 302, Local Government Code, is
1305	1305	amended by adding Section 302.007 to read as follows:
1306	1306	Sec. 302.007. EXEMPTION FROM OTHER CONTRACTING LAW.
1307	1307	Chapter 2267, Government Code, does not apply to this chapter.
1308	1308	SECTION 3.05. Subchapter E, Chapter 335, Local Government
1309	1309	Code, is amended by adding Section 335.077 to read as follows:
1310	1310	Sec. 335.077. EXEMPTION FROM CONSTRUCTION CONTRACTING LAW.
1311	1311	Chapter 2267, Government Code, does not apply to this chapter.
1312	1312	SECTION 3.06. Section 22.084, Transportation Code, is
1313	1313	amended by adding Subsection (c) to read as follows:
1314	1314	(c) Chapter 2267, Government Code, does not apply to an
1315	1315	agreement entered into under this section.
1316	1316	SECTION 3.07. Section 370.305, Transportation Code, is
1317	1317	amended by adding Subsection (c-1) to read as follows:
1318	1318	(c-1) Chapter 2267, Government Code, does not apply to
1319	1319	agreements entered into pursuant to this section.
1320	1320	SECTION 3.08. Subchapter Q, Chapter 451, Transportation
1321	1321	Code, is amended by adding Section 451.8025 to read as follows:
1322	1322	Sec. 451.8025. EXEMPTION FROM OTHER CONTRACTING LAW.
1323	1323	Chapter 2267, Government Code, does not apply to this subchapter.
1324	1324	SECTION 3.09. Subchapter C, Chapter 452, Transportation
1325	1325	Code, is amended by adding Section 452.1095 to read as follows:
1326	1326	Sec. 452.1095. EXEMPTION FROM OTHER CONTRACTING LAW FOR
1327	1327	CERTAIN AUTHORITIES. Chapter 2267, Government Code, does not apply
1328	1328	to an authority consisting of one subregion governed by a
1329	1329	subregional board created under Subchapter O.
1330	1330	SECTION 3.10. Section 60.401, Water Code, is amended by
1331	1331	adding Subsection (d) to read as follows:
1332	1332	(d) Chapter 2267, Government Code, does not apply to this
1333	1333	subchapter.
1334	1334	SECTION 3.11. Section 60.452, Water Code, is amended by
1335	1335	adding Subsection (d) to read as follows:
1336	1336	(d) Chapter 2267, Government Code, does not apply to this
1337	1337	subchapter.
1338	1338	ARTICLE 4. CONFORMING AMENDMENT
1339	1339	SECTION 4.01. Section 252.021(a), Local Government Code, is
1340	1340	amended to read as follows:
1341	1341	(a) Before a municipality may enter into a contract that
1342	1342	requires an expenditure of more than $50,000 from one or more
1343	1343	municipal funds, the municipality must:
1344	1344	(1) comply with the procedure prescribed by this
1345	1345	subchapter and Subchapter C for competitive sealed bidding or
1346	1346	competitive sealed proposals;
1347	1347	(2) use the reverse auction procedure, as defined by
1348	1348	Section 2155.062(d), Government Code, for purchasing; or
1349	1349	(3) comply with a method described by Chapter 2267,
1350	1350	Government Code [Subchapter H or J, Chapter 271].
1351	1351	SECTION 4.02. Section 252.022(d), Local Government Code, is
1352	1352	amended to read as follows:
1353	1353	(d) This chapter does not apply to an expenditure described
1354	1354	by Section 252.021(a) if the governing body of a municipality
1355	1355	determines that a method described by Chapter 2267, Government Code
1356	1356	[Subchapter H, Chapter 271], provides a better value for the
1357	1357	municipality with respect to that expenditure than the procedures
1358	1358	described in this chapter and the municipality adopts and uses a
1359	1359	method described in that subchapter with respect to that
1360	1360	expenditure.
1361	1361	ARTICLE 5. REPEALER
1362	1362	SECTION 5.01. The following are repealed:
1363	1363	(1) Sections 44.0315, 44.035, 44.036, 44.037, 44.038,
1364	1364	44.039, 44.040, and 44.041, Education Code;
1365	1365	(2) Sections 2166.2511, 2166.2526, 2166.2531,
1366	1366	2166.2532, 2166.2533, and 2166.2535, Government Code;
1367	1367	(3) Section 252.043(d-1), Local Government Code;
1368	1368	(4) Subchapters H and J, Chapter 271, Local Government
1369	1369	Code; and
1370	1370	(5) Section 431.101(e), Transportation Code.
1371	1371	ARTICLE 6. TRANSITION; EFFECTIVE DATE
1372	1372	SECTION 6.01. (a) The changes in law made by this Act apply
1373	1373	only to a contract or construction project for which a governmental
1374	1374	entity first advertises or otherwise requests bids, proposals,
1375	1375	offers, or qualifications, or makes a similar solicitation, on or
1376	1376	after the effective date of this Act.
1377	1377	(b) A contract or construction project for which a
1378	1378	governmental entity first advertises or otherwise requests bids,
1379	1379	proposals, offers, or qualifications, or makes a similar
1380	1380	solicitation, before the effective date of this Act is governed by
1381	1381	the law as it existed immediately before the effective date of this
1382	1382	Act, and that law is continued in effect for that purpose.
1383	1383	SECTION 6.02. This Act takes effect September 1, 2009.