Texas 2009 - 81st Regular

Texas Senate Bill SB624 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R3728 PMO-F
2	2	By: West S.B. No. 624
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to competitive procurement and change order requirements
8	8	for local governments.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 44.031(a), Education Code, is amended to
11	11	read as follows:
12	12	(a) Except as provided by this subchapter, all school
13	13	district contracts, except contracts for the purchase of produce or
14	14	vehicle fuel, valued at $50,000 [$25,000] or more in the aggregate
15	15	for each 12-month period shall be made by the method, of the
16	16	following methods, that provides the best value for the district:
17	17	(1) competitive bidding;
18	18	(2) competitive sealed proposals;
19	19	(3) a request for proposals, for services other than
20	20	construction services;
21	21	(4) an interlocal contract;
22	22	(5) a design/build contract;
23	23	(6) a contract to construct, rehabilitate, alter, or
24	24	repair facilities that involves using a construction manager;
25	25	(7) a job order contract for the minor construction,
26	26	repair, rehabilitation, or alteration of a facility;
27	27	(8) the reverse auction procedure as defined by
28	28	Section 2155.062(d), Government Code; or
29	29	(9) the formation of a political subdivision
30	30	corporation under Section 304.001, Local Government Code.
31	31	SECTION 2. Subchapter B, Chapter 44, Education Code, is
32	32	amended by adding Section 44.0313 to read as follows:
33	33	Sec. 44.0313. PROCEDURES FOR ELECTRONIC BIDS OR PROPOSALS.
34	34	(a) A school district may receive bids or proposals under this
35	35	chapter through electronic transmission if the board of trustees of
36	36	the school district adopts rules to ensure the identification,
37	37	security, and confidentiality of electronic bids or proposals and
38	38	to ensure that the electronic bids or proposals remain effectively
39	39	unopened until the proper time.
40	40	(b) Notwithstanding any other provision of this chapter, an
41	41	electronic bid or proposal is not required to be sealed. A
42	42	provision of this chapter that applies to a sealed bid or proposal
43	43	applies to a bid or proposal received through electronic
44	44	transmission in accordance with the rules adopted under Subsection
45	45	(a).
46	46	SECTION 3. Section 252.048, Local Government Code, is
47	47	amended by amending Subsection (c) and adding Subsection (e) to
48	48	read as follows:
49	49	(c) If a change order involves a decrease or an increase of
50	50	$50,000 [$25,000] or less and is for work within the original bid,
51	51	the governing body may grant general authority to an administrative
52	52	official of the municipality to approve the change orders.
53	53	(e) Compensation for a contract awarded on a unit price
54	54	basis may not exceed the actual quantity of items supplied or
55	55	services provided.
56	56	SECTION 4. Section 262.003(a), Local Government Code, is
57	57	amended to read as follows:
58	58	(a) Any law that requires a county to follow a competitive
59	59	procurement [bidding] procedure in making a purchase requiring the
60	60	expenditure of $50,000 [$25,000] or less does not apply to the
61	61	purchase of an item available for purchase from only one supplier.
62	62	SECTION 5. Section 262.023(a), Local Government Code, is
63	63	amended to read as follows:
64	64	(a) Before a county may purchase one or more items under a
65	65	contract that will require an expenditure exceeding $50,000
66	66	[$25,000], the commissioners court of the county must:
67	67	(1) comply with the competitive bidding or competitive
68	68	proposal procedures prescribed by this subchapter;
69	69	(2) use the reverse auction procedure, as defined by
70	70	Section 2155.062(d), Government Code, for purchasing; or
71	71	(3) comply with a method described by Subchapter H,
72	72	Chapter 271.
73	73	SECTION 6. Section 262.0245, Local Government Code, is
74	74	amended to read as follows:
75	75	Sec. 262.0245. COMPETITIVE PROCUREMENT [BIDDING]
76	76	PROCEDURES ADOPTED BY COUNTY PURCHASING AGENTS. A county
77	77	purchasing agent shall adopt procedures that provide for
78	78	competitive procurement [bidding], to the extent practicable under
79	79	the circumstances, for the county purchase of an item [under a
80	80	contract] that is not subject to competitive procurement [bidding
81	81	under Section 262.023].
82	82	SECTION 7. Section 262.025(d), Local Government Code, is
83	83	amended to read as follows:
84	84	(d) A [In a county with a population of 3.3 million or more,
85	85	the] county and any district or authority created under Article
86	86	XVI, Section 59, of the Texas Constitution of which the governing
87	87	body is the commissioners court may require that a minimum of 25
88	88	percent of the work be performed by the bidder and, notwithstanding
89	89	any other law to the contrary, may establish financial criteria for
90	90	the surety companies that provide payment and performance bonds.
91	91	SECTION 8. Section 271.024, Local Government Code, is
92	92	amended to read as follows:
93	93	Sec. 271.024. COMPETITIVE PROCUREMENT [BIDDING] PROCEDURE
94	94	APPLICABLE TO CONTRACT. If a governmental entity is required by
95	95	statute to award a contract for the construction, repair, or
96	96	renovation of a structure, road, highway, or other improvement or
97	97	addition to real property on the basis of competitive bids, and if
98	98	the contract requires the expenditure of more than $50,000
99	99	[$25,000] from the funds of the entity, the bidding on the contract
100	100	must be accomplished in the manner provided by this subchapter.
101	101	SECTION 9. Section 271.054, Local Government Code, is
102	102	amended to read as follows:
103	103	Sec. 271.054. COMPETITIVE PROCUREMENT [BIDDING]
104	104	REQUIREMENT. Before the governing body of an issuer may enter into
105	105	a contract requiring an expenditure by or imposing an obligation or
106	106	liability on the issuer, or on a subdivision of the issuer if the
107	107	issuer is a county, of more than $50,000 [$25,000], the governing
108	108	body must submit the proposed contract to competitive procurement
109	109	[bidding].
110	110	SECTION 10. Section 271.060, Local Government Code, is
111	111	amended by adding Subsection (c) to read as follows:
112	112	(c) A governing body may grant authority to an official or
113	113	employee responsible for purchasing or administering a contract to
114	114	approve a change order that is within the scope of the original
115	115	contract and involves $50,000 or less.
116	116	SECTION 11. Section 281.046, Local Government Code, is
117	117	amended by adding Subsection (f) to read as follows:
118	118	(f) The board may grant authority to an official or employee
119	119	responsible for purchasing or administering a contract to approve a
120	120	change order that is within the scope of the original contract and
121	121	involves $50,000 or less.
122	122	SECTION 12. The heading to Section 281.047, Local
123	123	Government Code, is amended to read as follows:
124	124	Sec. 281.047. CONTRACTS OVER $50,000 [$10,000].
125	125	SECTION 13. Section 281.047(a), Local Government Code, is
126	126	amended to read as follows:
127	127	(a) This section applies to a contract that is for materials
128	128	for, or construction of, facilities and that is for an amount
129	129	greater than $50,000 [$10,000].
130	130	SECTION 14. Section 325.040, Local Government Code, is
131	131	amended to read as follows:
132	132	Sec. 325.040. CHANGE ORDERS. After a construction contract
133	133	is awarded, if the district determines that additional work is
134	134	needed or if the character or type of work, facilities, or
135	135	improvements should be changed, the board may authorize change
136	136	orders to the contract on terms the board approves. A change made
137	137	under this section may not increase or decrease the total cost of
138	138	the contract by more than 25 percent. The board may grant authority
139	139	to an official or employee responsible for purchasing or
140	140	administering a contract to approve a change order that is within
141	141	the scope of the original contract and involves $50,000 or less.
142	142	SECTION 15. Sections 351.137(b) and (c), Local Government
143	143	Code, are amended to read as follows:
144	144	(b) Construction contracts requiring an expenditure of more
145	145	than $50,000 [$15,000] may be made only after competitive bidding
146	146	as provided by Subchapter B, Chapter 271.
147	147	(c) After a construction contract is awarded, if the
148	148	district determines that additional work is needed or if the
149	149	character or type of work, facilities, or improvements should be
150	150	changed, the board may authorize change orders to the contract on
151	151	terms the board approves. The board may grant authority to an
152	152	official or employee responsible for purchasing or administering a
153	153	contract to approve a change order that is within the scope of the
154	154	original contract and involves $50,000 or less. A change made under
155	155	this subsection may not increase or decrease the total cost of the
156	156	contract by more than 25 percent.
157	157	SECTION 16. Section 375.221, Local Government Code, is
158	158	amended to read as follows:
159	159	Sec. 375.221. COMPETITIVE BIDDING ON CERTAIN PUBLIC WORKS
160	160	CONTRACTS. (a) A contract, other than a contract for services,
161	161	for more than $50,000 [$15,000] for the construction of
162	162	improvements or the purchase of material, machinery, equipment,
163	163	supplies, and other property, except real property, may be entered
164	164	into only after competitive bids. Notice of the contract for the
165	165	purpose of soliciting bids shall be published once a week for two
166	166	consecutive weeks in a newspaper with general circulation in the
167	167	area in which the district is located. The first publication of
168	168	notice must be not later than the 14th [15th] day before the date
169	169	set for receiving bids. The board may adopt rules governing receipt
170	170	of bids and the award of the contract and providing for the waiver
171	171	of the competitive bid requirement if:
172	172	(1) there is an emergency;
173	173	(2) the needed materials are available from only one
174	174	source;
175	175	(3) in a procurement requiring design by the supplier
176	176	competitive bidding would not be appropriate and competitive
177	177	negotiation, with proposals solicited from an adequate number of
178	178	qualified sources, would permit reasonable competition consistent
179	179	with the nature and requirements of the procurement; or
180	180	(4) after solicitation, it is ascertained that there
181	181	will be only one bidder.
182	182	(b) If a proposed contract for works, plant improvements,
183	183	facilities other than land, or the purchase of equipment,
184	184	appliances, materials, or supplies is for an estimated amount of
185	185	more than $50,000 [$15,000 but less than $25,000] or for a duration
186	186	of more than two years, competitive sealed proposals [bids] shall
187	187	be asked from at least three persons.
188	188	SECTION 17. Section 1433.025(a), Government Code, is
189	189	amended to read as follows:
190	190	(a) A contract for construction or purchase under this
191	191	chapter involving the expenditure of more than $50,000 [$2,000] may
192	192	be made only after advertising in the manner provided by Chapter
193	193	252, Local Government Code, or Subchapter C, Chapter 262, Local
194	194	Government Code, as applicable.
195	195	SECTION 18. Sections 44.031(k) and 44.033, Education Code,
196	196	are repealed.
197	197	SECTION 19. This Act takes effect immediately if it
198	198	receives a vote of two-thirds of all the members elected to each
199	199	house, as provided by Section 39, Article III, Texas Constitution.
200	200	If this Act does not receive the vote necessary for immediate
201	201	effect, this Act takes effect September 1, 2009.