Texas 2011 - 82nd Regular

Texas Senate Bill SB1488 Compare Versions

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1	1	By: West S.B. No. 1488
2	2	(In the Senate - Filed March 10, 2011; March 22, 2011, read
3	3	first time and referred to Committee on Higher Education;
4	4	April 26, 2011, reported adversely, with favorable Committee
5	5	Substitute by the following vote: Yeas 6, Nays 0; April 26, 2011,
6	6	sent to printer.)
7	7	COMMITTEE SUBSTITUTE FOR S.B. No. 1488 By: Watson
8	8
9	9
10	10	A BILL TO BE ENTITLED
11	11	AN ACT
12	12	relating to the purchasing and contracting practices of junior
13	13	college districts; providing criminal penalties.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. Subsection (a), Section 44.0311, Education Code,
16	16	is amended to read as follows:
17	17	(a) Except as provided by Subchapter K, Chapter 130
18	18	[Subsection (c)], this subchapter applies to junior college
19	19	districts.
20	20	SECTION 2. Subchapter A, Chapter 130, Education Code, is
21	21	amended by adding Section 130.0104 to read as follows:
22	22	Sec. 130.0104. POLICY AND REPORT REGARDING HISTORICALLY
23	23	UNDERUTILIZED BUSINESSES. (a) In this section, "historically
24	24	underutilized business" has the meaning assigned by Section
25	25	2161.001, Government Code.
26	26	(b) This section applies only to a junior college district
27	27	that:
28	28	(1) is located wholly or partly in a county with a
29	29	population of one million or more; and
30	30	(2) had an annual enrollment of 30,000 or more
31	31	full-time equivalent students in one or more of the most recent five
32	32	academic years.
33	33	(c) Each junior college district shall adopt a policy
34	34	stating its commitment to developing, maintaining, and enhancing
35	35	participation by historically underutilized businesses in all
36	36	phases of the district's procurement processes in order to support,
37	37	to the greatest extent feasible, the efforts of historically
38	38	underutilized businesses to compete for purchases of equipment,
39	39	supplies, services, including professional services, and
40	40	construction contracts.
41	41	(d) Annually, each junior college district shall publish a
42	42	report of the total number and total value of contracts awarded by
43	43	the district in the preceding fiscal year and the number and total
44	44	value of those contracts awarded to historically underutilized
45	45	businesses. The report must be published in a newspaper of general
46	46	circulation in the county in which the majority of the territory or
47	47	population of the district is located not later than the 60th day
48	48	following the last day of the district's fiscal year.
49	49	SECTION 3. Chapter 130, Education Code, is amended by
50	50	adding Subchapters K, L, and M to read as follows:
51	51	SUBCHAPTER K. PURCHASING CONTRACTS FOR GOODS AND SERVICES OTHER
52	52	THAN CONSTRUCTION OR PROFESSIONAL SERVICES
53	53	Sec. 130.251. DEFINITIONS. In this subchapter:
54	54	(1) "Board of trustees" means the governing board of a
55	55	district.
56	56	(2) "District" means a junior college district.
57	57	(3) "Purchase of goods or services":
58	58	(A) includes:
59	59	(i) contracting for the rights to use
60	60	rather than own goods;
61	61	(ii) the purchase of the materials and
62	62	labor incidental to the delivery and installation of personal
63	63	property; and
64	64	(iii) the purchase of services to repair or
65	65	replace equipment; and
66	66	(B) does not include the purchase or lease of
67	67	real property.
68	68	(4) "Services" does not include:
69	69	(A) construction services; or
70	70	(B) professional services, including services of
71	71	a consultant, to which Subchapter M applies.
72	72	Sec. 130.2511. USE OF TERMS "BIDDER," "VENDOR," AND "BID."
73	73	(a) In this subchapter, the terms "bidder" and "vendor" are used
74	74	interchangeably to identify an entity that responds to a request
75	75	for competitive bids, proposals, or qualifications.
76	76	(b) In this subchapter, the term "bid" is used to refer to a
77	77	competitive bid, proposal, or statement of qualifications.
78	78	Sec. 130.252. CONFLICT WITH OTHER LAW. To the extent of any
79	79	conflict, this subchapter prevails over any other law relating to
80	80	the purchase of goods or services by a district other than a law
81	81	relating to:
82	82	(1) contracting with historically underutilized
83	83	businesses; or
84	84	(2) the procurement of goods and services from persons
85	85	with disabilities.
86	86	Sec. 130.253. PURCHASE METHODS. (a) Except as otherwise
87	87	provided by this subchapter and subject to Section 130.264, each
88	88	contract for the purchase of goods or services by a district with a
89	89	value of $50,000 or more that covers one or more fiscal years shall
90	90	be made by the method, of the following methods, that provides the
91	91	best value for the district:
92	92	(1) competitive sealed bids;
93	93	(2) competitive sealed proposals;
94	94	(3) the reverse auction procedure defined by Section
95	95	2155.062(d), Government Code; or
96	96	(4) the formation of a political subdivision
97	97	corporation under Section 304.001, Local Government Code.
98	98	(b) Only one of the methods listed in Subsection (a) may be
99	99	used for any individual contract. The district must determine
100	100	which method provides the best value for the district before
101	101	publishing the notice required by Section 130.258.
102	102	(c) If the district uses the competitive sealed proposal
103	103	method, the district shall:
104	104	(1) reveal when the proposals are opened the names of
105	105	the companies submitting proposals; and
106	106	(2) keep the contents of the proposals confidential
107	107	until the district concludes negotiations and awards a contract.
108	108	(d) Without complying with Subsection (a), a district may
109	109	purchase a good or service that is available from only one source,
110	110	including:
111	111	(1) an item for which competition is precluded because
112	112	of the existence of a patent, copyright, secret process, or
113	113	monopoly;
114	114	(2) a film, recording, periodical, manuscript, book,
115	115	or computer software;
116	116	(3) a utility service, including gas or water;
117	117	(4) a captive replacement part or component for
118	118	equipment;
119	119	(5) a product needed to match or work with like
120	120	products;
121	121	(6) technical or specialized services, including
122	122	advertising, audio/video production, and the repair and
123	123	maintenance of specialized equipment; and
124	124	(7) perishable goods, vehicle fuel, advertising
125	125	services, meeting and catering services, and travel services,
126	126	including airfare, ground transportation, and lodging.
127	127	(e) Without complying with Subsection (a), a district may
128	128	purchase a good or service under:
129	129	(1) an interlocal contract under Chapter 791,
130	130	Government Code;
131	131	(2) a contract established by the comptroller or
132	132	Department of Information Resources, including a contract for the
133	133	purchase of travel services, telephone service, computers, and
134	134	computer-related equipment and service, cabling, and software; or
135	135	(3) a purchase made under Subchapter D, F, or G,
136	136	Chapter 271, Local Government Code.
137	137	(f) A contract for services that results in no cost to the
138	138	district or that provides income greater than $50,000 to the
139	139	district must be based on bids, proposals, or qualifications that
140	140	are solicited and awarded in the same manner as a contract for the
141	141	purchase of goods or services. Such contracts include contracts
142	142	for bookstore services, food services, and vending services.
143	143	(g) If district property is destroyed, stolen, severely
144	144	damaged, or unusable, or a contractor is unable to fulfill its
145	145	obligations in providing goods and services, and the board of
146	146	trustees, or its designee, determines that the delay posed by using
147	147	the methods required by Subsection (a) would pose a material threat
148	148	to personal safety or of potential damage to other property or would
149	149	prevent or substantially impair the conduct of classes or other
150	150	essential district activities, then contracts for the replacement
151	151	or repair of the property may be made by methods other than those
152	152	required by Subsection (a).
153	153	(h) Without complying with Subsection (a), a district may
154	154	purchase, license, or otherwise acquire library goods and services,
155	155	including in any manner authorized by law for the purchase,
156	156	license, or acquisition of library goods and services by a public
157	157	senior college or university, as defined by Section 61.003. In this
158	158	subsection, "library goods and services" means:
159	159	(1) serial and journal subscriptions, including
160	160	electronic databases, digital content, and information products;
161	161	(2) other library materials and resources, including
162	162	books, e-books, and media not available under a statewide contract
163	163	and papers;
164	164	(3) library services, including periodical jobber and
165	165	binding services not available under a statewide contract;
166	166	(4) equipment and supplies specific to the storage and
167	167	access of library content; and
168	168	(5) library or resource-sharing programs operated by
169	169	the Texas State Library and Archives Commission.
170	170	Sec. 130.254. PURCHASE OF INSURANCE. (a) A district may
171	171	acquire insurance using a two-step process to obtain competitive
172	172	sealed proposals. In the first step, the district shall determine
173	173	which insurance providers are represented by agents interested in
174	174	providing insurance for the district. If more than one agent
175	175	indicates a desire to represent the same provider, the agent with
176	176	the longest and most substantial relationship with the insurance
177	177	provider shall be authorized to submit a proposal for the
178	178	designated insurance provider. In the second step, the district
179	179	shall notify the interested agents in writing as to which insurance
180	180	providers the agents represent and request the agents to submit
181	181	proposals for providing insurance.
182	182	(b) In notifying the interested agents to begin the second
183	183	step, the district is not required to comply with Section 130.258.
184	184	However, the district in the request for proposals shall give the
185	185	interested agents notice of the date, time, and place where
186	186	proposals are to be submitted. Proposals received after the date
187	187	and time stated in the request for proposals may not be considered.
188	188	Sec. 130.255. MULTIYEAR CONTRACT. A contract for the
189	189	purchase of goods or services that extends past the end of a
190	190	district's fiscal year must include a provision that permits
191	191	termination at the end of each fiscal year. Contracts solely for
192	192	the purchase of goods may not exceed five years in duration.
193	193	Sec. 130.256. EVALUATION AND AWARD OF CONTRACT.
194	194	(a) Except as otherwise provided by this subchapter, a district
195	195	shall award a contract for the purchase of goods or services to the
196	196	lowest responsible bidder offering the best value to the district
197	197	according to the selection criteria established by the district.
198	198	The district shall publish in the request for bids, proposals, or
199	199	qualifications the criteria the district will use to evaluate the
200	200	offers.
201	201	(b) In determining the lowest responsible bidder, the
202	202	district shall consider:
203	203	(1) the purchase price, including delivery and
204	204	installation charges;
205	205	(2) the reputation of the bidder and of the bidder's
206	206	goods or services;
207	207	(3) the quality of the bidder's goods or services;
208	208	(4) the extent to which the offered goods or services
209	209	meet the district's needs;
210	210	(5) the bidder's past relationship with the district;
211	211	(6) the total long-term cost to the district to
212	212	acquire the bidder's goods or services;
213	213	(7) the extent to which the offers comply with the
214	214	requirements of the request for bids, proposals, or qualifications;
215	215	(8) any other relevant factor specifically listed in
216	216	the request for bids or proposals; and
217	217	(9) the impact on the ability of the district to comply
218	218	with laws and rules relating to historically underutilized
219	219	businesses.
220	220	(c) A district may reject any or all bids, proposals, or
221	221	qualifications, or parts of bids, proposals, or qualifications, if
222	222	the rejection serves the district's interest.
223	223	(d) The district shall provide all bidders with the
224	224	opportunity to bid to provide the same goods or services on equal
225	225	terms and to have bids judged according to the same standards as
226	226	those set forth in the request for bids.
227	227	(e) Bids may be opened only by the district in a
228	228	district-owned or district-controlled facility. The meeting or
229	229	other occasion at which bids are opened shall be open to the public.
230	230	At the time the district opens a bid, if one or more members of the
231	231	public are present, the appropriate employee or officer of the
232	232	district shall read aloud the name of the bidder and the total bid
233	233	amount, if the bid is of a type that should contain a single bid
234	234	amount. When opening proposals or qualifications, the appropriate
235	235	employee or officer shall read aloud only the name of the
236	236	respondents and may not disclose the contents of a proposal or
237	237	qualification on opening or during negotiations with competing
238	238	bidders. At least two district employees or members of the
239	239	district's board of trustees must be present at the bid, proposal,
240	240	or qualification opening.
241	241	(f) A bid that has been opened may not be changed for the
242	242	purpose of correcting an error in the bid price. If there is a
243	243	discrepancy between the total price and the unit price of a bid, the
244	244	unit price prevails. If there is a discrepancy between the written
245	245	price and the numerical price of a bid, the written price prevails.
246	246	(g) This subchapter does not change the common law right of
247	247	a bidder to withdraw a bid due to a material mistake in the bid.
248	248	(h) The district shall document the basis of its selection
249	249	and shall make its evaluations public not later than the seventh day
250	250	after the date the contract is awarded. The district shall state in
251	251	writing the reasons for making an award.
252	252	(i) A contract awarded in violation of this subchapter is
253	253	void.
254	254	(j) In awarding a contract by competitive sealed bid under
255	255	this section, a district that has its central administrative office
256	256	located in a municipality with a population of less than 250,000 may
257	257	consider a bidder's principal place of business in the manner
258	258	provided by Section 271.9051, Local Government Code. This
259	259	subsection does not apply to the purchase of telecommunications
260	260	services or information services, as those terms are defined by 47
261	261	U.S.C. Section 153.
262	262	Sec. 130.257. RULES AND PROCEDURES; AUDITS BY STATE
263	263	AUDITOR. (a) The board of trustees may adopt rules and procedures
264	264	for the acquisition of goods or services by the district.
265	265	(b) District purchases of goods or services are subject to
266	266	audit by the state auditor in accordance with Chapter 321,
267	267	Government Code.
268	268	Sec. 130.258. NOTICE. (a) Except as otherwise provided by
269	269	this subchapter, for any method of contracting selected under
270	270	Section 130.253(a), the district shall, within a seven-day period,
271	271	publish the notice required by this section in at least two issues
272	272	of any newspaper of general circulation in the county in which the
273	273	district's central administrative office is located. The deadline
274	274	for receiving bids or proposals may not be less than 10 business
275	275	days after the date of the publication of the first newspaper
276	276	notice. The deadline for receiving responses to a request for
277	277	qualifications may not be less than five business days after the
278	278	date of the publication of the last newspaper notice. If there is
279	279	not a newspaper of general circulation in the county in which the
280	280	district's central administrative office is located, the notice
281	281	shall be published in a newspaper of general circulation in a
282	282	location nearest the district's central administrative office. In
283	283	a two-step procurement process, the time and place where the
284	284	second-step bids, proposals, or responses will be received are not
285	285	required to be included in the notice.
286	286	(b) The district may, as an alternative to publishing notice
287	287	in a newspaper exclusively under Subsection (a), publish on a
288	288	publicly accessible Internet website the notice required by this
289	289	section. Before or at the same time the district first publishes
290	290	the Internet notice, the district shall publish a notice in a
291	291	newspaper of general circulation, as described by Subsection (a),
292	292	that includes the name of the goods or services to be purchased, the
293	293	date, time, and place for receiving and opening bids, proposals, or
294	294	statements of qualifications, and the Internet address of the
295	295	Internet website where detailed requirements may be found. The
296	296	notice posted on the Internet under this subsection must be posted
297	297	every day for at least five business days before the deadline for
298	298	receiving the bids or proposals or statements of qualifications.
299	299	(c) Except as otherwise provided by Subsection (b) for the
300	300	newspaper notice required by that subsection, the notice required
301	301	by this section must include:
302	302	(1) the location where the request for bid, proposal,
303	303	or qualification documents may be obtained or examined;
304	304	(2) the date, time, and place for receiving and
305	305	opening bids, proposals, or statements of qualifications;
306	306	(3) a general description of the goods or services;
307	307	(4) the location and time of any mandatory site
308	308	inspections or pre-bid meetings; and
309	309	(5) the amount of any required bid bond, payment bond,
310	310	or performance bond.
311	311	Sec. 130.259. DISCUSSION AND REVISION OF PROPOSALS.
312	312	(a) As provided in a request for proposals and under rules adopted
313	313	by the district, the district may discuss acceptable or potentially
314	314	acceptable proposals with bidders to assess a bidder's ability to
315	315	meet the solicitation requirements.
316	316	(b) After receiving a proposal but before making an award,
317	317	the district may permit the three highest-ranking bidders to revise
318	318	their proposals, within the scope of the published specifications,
319	319	to obtain the best final offer.
320	320	Sec. 130.260. PRE-BID CONFERENCE OR SITE VISIT. (a) The
321	321	district may require a principal, officer, or employee of each
322	322	prospective bidder to attend a mandatory pre-bid conference or site
323	323	visit, or both, as a condition of a request for bid or proposal.
324	324	Notice of a requirement under this subsection must be included in
325	325	the notice published under Section 130.258.
326	326	(b) After the district conducts a mandatory pre-bid
327	327	conference or site visit, the district may send any additional
328	328	required notice for the proposed contract only to prospective
329	329	bidders who attended or were represented at the conference or who
330	330	are documented as having visited the site.
331	331	Sec. 130.261. IDENTICAL BIDS. If, after considering the
332	332	factors described by Section 130.256, the district determines that
333	333	the district has received identical bids, the district shall cast
334	334	lots to determine which bidder will be awarded the contract. The
335	335	district shall invite the bidders to witness the selection process
336	336	under this section. The selection process must be conducted by at
337	337	least two district employees or members of the district's board of
338	338	trustees.
339	339	Sec. 130.262. BID DEPOSIT. (a) The district may, as the
340	340	district determines necessary, require a bid deposit in an amount
341	341	determined by the district. The amount of the deposit, if any, must
342	342	be stated in the notice required by Section 130.258 of the
343	343	invitation to bid.
344	344	(b) On the award of a contract or the rejection of all bids,
345	345	the district shall return the bid deposit of an unsuccessful
346	346	bidder. The bid deposit of the successful bidder may be retained
347	347	until the contract is signed by the district. A bid deposit may not
348	348	be held longer than 90 days.
349	349	(c) The bid deposit required by the district, if any, must
350	350	be in the form of a cashier's check, certified check, or bid bond
351	351	written by a surety authorized to conduct business in this state. A
352	352	district may elect to require a bid deposit to be in the form of a
353	353	bid bond.
354	354	Sec. 130.263. PERFORMANCE BOND. A district may require a
355	355	contractor to provide a performance bond in the amount of the
356	356	contract before executing a contract for the use or purchase of
357	357	goods or services with a value of $100,000 or more. The bond must be
358	358	written by a surety authorized to conduct business in this state and
359	359	generally comply with the performance bond requirements of Chapter
360	360	2253, Government Code.
361	361	Sec. 130.264. ENFORCEMENT OF PURCHASING PROCEDURES:
362	362	CRIMINAL PENALTIES; REMOVAL; INELIGIBILITY; INJUNCTION. (a) In
363	363	this section:
364	364	(1) "Component purchases" means purchases of the
365	365	component parts of an item that in normal purchasing practices
366	366	would be purchased in one purchase.
367	367	(2) "Separate purchases" means purchases, made
368	368	separately, of goods or services that in normal purchasing
369	369	practices would be purchased in one purchase.
370	370	(3) "Sequential purchases" means purchases, made over
371	371	a period, of goods or services that in normal purchasing practices
372	372	would be purchased in one purchase.
373	373	(b) An officer, employee, or agent of a district commits an
374	374	offense if the person with criminal negligence makes or authorizes
375	375	separate, sequential, or component purchases for the purpose of
376	376	avoiding the requirements of Section 130.253, 130.256, or 130.266.
377	377	An offense under this subsection is a Class B misdemeanor and is an
378	378	offense involving moral turpitude that results in a forfeiture of
379	379	an officer's public office.
380	380	(c) An officer, employee, or agent of a district commits an
381	381	offense if the person with criminal negligence violates Section
382	382	130.253, 130.256, or 130.266 other than by conduct described by
383	383	Subsection (b). An offense under this subsection is a Class B
384	384	misdemeanor and is an offense involving moral turpitude that
385	385	results in a forfeiture of an officer's public office.
386	386	(d) An officer or employee of a district commits an offense
387	387	if the officer or employee knowingly violates Section 130.253,
388	388	130.256, or 130.266 other than by conduct described by Subsection
389	389	(b) or (c). An offense under this subsection is a Class C
390	390	misdemeanor.
391	391	(e) The final conviction of a person other than a member of
392	392	the board of trustees for an offense under Subsection (b) or (c)
393	393	results in the immediate removal from office or employment of that
394	394	person. A trustee who is convicted of an offense under this section
395	395	is subject to removal as provided by Chapter 66, Civil Practice and
396	396	Remedies Code. For four years after the date of the final
397	397	conviction, the removed person is ineligible to be a candidate for
398	398	or to be appointed or elected to a public office in this state, is
399	399	ineligible to be employed by or act as an agent for this state or a
400	400	political subdivision of this state, and is ineligible to receive
401	401	any compensation through a contract with this state or a political
402	402	subdivision of this state. This subsection does not prohibit the
403	403	payment of retirement benefits to the removed person or the payment
404	404	of workers' compensation benefits to the removed person for an
405	405	injury that occurred before the commission of the offense for which
406	406	the person was removed. This subsection does not make a person
407	407	ineligible for an office for which the federal or state
408	408	constitution prescribes exclusive eligibility requirements.
409	409	(f) A court may enjoin performance of a contract made in
410	410	violation of this subchapter. A county attorney, district
411	411	attorney, criminal district attorney, citizen of the county in
412	412	which the district is located, or an interested party may bring an
413	413	action for an injunction. A party who prevails in an action brought
414	414	under this subsection is entitled to reasonable attorney's fees as
415	415	approved by the court.
416	416	Sec. 130.265. NOTIFICATION OF CRIMINAL HISTORY OF
417	417	CONTRACTOR. (a) A person or business entity that enters into a
418	418	contract with a district must give advance notice to the district if
419	419	the person or an owner or operator of the business entity has been
420	420	convicted of a felony. The notice must include a general
421	421	description of the conduct resulting in the conviction of a felony.
422	422	(b) A district may refuse to enter into a contract or other
423	423	transaction with a person who has been convicted of a felony or with
424	424	a business entity if an owner or operator of the entity has been
425	425	convicted of a felony.
426	426	(c) A district may terminate a contract with a person or
427	427	business entity if the district determines that the person or
428	428	business entity failed to give notice as required by Subsection (a)
429	429	or misrepresented the conduct resulting in the conviction. The
430	430	district must compensate the person or business entity for goods
431	431	delivered or services performed before the termination of the
432	432	contract.
433	433	(d) This section does not apply to a publicly held
434	434	corporation.
435	435	Sec. 130.266. EFFICIENCY AND SAVINGS. In order to increase
436	436	efficiency of operations and to achieve savings through volume
437	437	purchases, on an annual basis a district shall identify common
438	438	types of goods and services to be purchased from the district's
439	439	budget and, to the extent the district determines practicable,
440	440	consolidate the purchase of those goods or services under contracts
441	441	entered into under this subchapter.
442	442	Sec. 130.267. DELEGATION. (a) Except as provided by
443	443	Subsection (b), the board of trustees may, as appropriate, delegate
444	444	its authority under this subchapter to a designated person,
445	445	representative, or committee. In procuring goods or services, the
446	446	district shall provide notice of the delegation and the limits of
447	447	the delegation in the request for bids, proposals, or
448	448	qualifications or in an addendum to the request. If the district
449	449	fails to provide that notice, a ranking, selection, or evaluation
450	450	of bids, proposals, or qualifications other than by the board of
451	451	trustees in an open public meeting is advisory only.
452	452	(b) The board of trustees may not delegate the authority to
453	453	act regarding an action specifically authorized or required by this
454	454	subchapter to be taken by the board of trustees.
455	455	SUBCHAPTER L. DISPOSAL OF SURPLUS PERSONAL PROPERTY
456	456	Sec. 130.301. SALE OF PERSONAL PROPERTY. A junior college
457	457	district shall dispose of surplus personal property in an
458	458	accountable manner that best serves the interest of the district. A
459	459	sale or transfer of personal property that is not covered by Chapter
460	460	791, Government Code, must be solicited and awarded in the same
461	461	manner as a contract for the purchase of goods or services under
462	462	Subchapter K.
463	463	Sec. 130.302. METHODS OF DISPOSAL. (a) A junior college
464	464	district may use any of the following methods to dispose of surplus
465	465	personal property:
466	466	(1) the use of a licensed auctioneer to conduct live or
467	467	Internet-based auctions;
468	468	(2) a direct sale by the district to a person
469	469	submitting the highest and best bid through a competitive process,
470	470	including an Internet-based bidding system;
471	471	(3) the trade-in of items when purchasing new items;
472	472	(4) a sale or transfer to another governmental entity
473	473	at a mutually agreed price; or
474	474	(5) a donation to a governmental entity in this state.
475	475	(b) If the junior college district is unable to find a buyer
476	476	or governmental entity who wants the surplus property, the property
477	477	may be:
478	478	(1) discarded in accordance with applicable federal,
479	479	state, and local laws, ordinances, and rules; or
480	480	(2) removed by an interested party at no charge or for
481	481	a nominal charge.
482	482	(c) Except as provided by this section, a junior college
483	483	district may not give, donate, loan, or transfer surplus property
484	484	to any person or entity.
485	485	SUBCHAPTER M. PROFESSIONAL SERVICES AND CONSULTANT SERVICES
486	486	Sec. 130.351. PROFESSIONAL SERVICES. (a) For purposes of
487	487	this section, "professional service provider" means a person who
488	488	provides services of a predominantly mental or intellectual matter
489	489	and who is a member of a discipline requiring special knowledge or
490	490	the attainment of a high order of learning, skill, or intelligence.
491	491	The term includes a person who provides professional services, as
492	492	defined by Section 2254.002, Government Code.
493	493	(b) A junior college district shall select and enter into
494	494	contracts for professional services in accordance with Subchapter
495	495	A, Chapter 2254, Government Code. If the estimated value of a
496	496	contract for professional services is $50,000 or more during a
497	497	fiscal year, or during the contract's term if the contract is a
498	498	multiple-year contract, the district shall publish notice of the
499	499	request for qualifications as provided by Section 130.258.
500	500	(c) A professional service provider selected by the junior
501	501	college district may be selected for a specific project or for
502	502	various projects that arise during the term of the provider's
503	503	contract. The term of a contract with a professional service
504	504	provider may not exceed five years, except that the professional
505	505	service provider shall complete services for projects started
506	506	before the end of the contract term.
507	507	Sec. 130.352. CONSULTANTS. (a) For purposes of this
508	508	section, "consultant" includes a financial advisor, fiscal agent,
509	509	auctioneer, personnel services provider, travel agent, technology
510	510	or educational services provider or advisor, and business engaged
511	511	to teach approved courses.
512	512	(b) A junior college district shall select and enter into
513	513	contracts with consultants in accordance with Section 130.253 or
514	514	Subchapter B, Chapter 2254, Government Code. If the estimated
515	515	value of a contract for consulting services is $50,000 or more
516	516	during a fiscal year, or during the contract's term if the contract
517	517	is a multiple-year contract, the district shall publish notice of
518	518	the request for qualifications, bids, or proposals as provided by
519	519	Section 130.258.
520	520	(c) A consultant selected by the junior college district may
521	521	be selected for a specific project or for various projects that
522	522	arise during the term of the consultant's contract. The term of a
523	523	contract with a consultant may not exceed five years, except that
524	524	the consultant shall complete services for projects started before
525	525	the end of the contract term.
526	526	Sec. 130.353. RULES AND PROCEDURES; AUDITS BY STATE
527	527	AUDITOR. (a) The board of trustees of a junior college district
528	528	may adopt rules and procedures in accordance with Chapter 2254,
529	529	Government Code, for the acquisition of professional services and
530	530	consultants by the district.
531	531	(b) Junior college district contracts for professional
532	532	services or consultants are subject to audit by the state auditor in
533	533	accordance with Chapter 321, Government Code.
534	534	SECTION 4. Section 271.023, Local Government Code, is
535	535	amended to read as follows:
536	536	Sec. 271.023. CONFLICT OF LAWS. To the extent of any
537	537	conflict, the provisions of Subchapter B, Chapter 44, Education
538	538	Code, relating to the purchase of goods and services under contract
539	539	by a school district and the provisions of Subchapter K, Chapter
540	540	130, Education Code, relating to the purchase of goods or services
541	541	under contract by a junior college prevail over this subchapter.
542	542	SECTION 5. Subsection (c), Section 44.0311, and Sections
543	543	130.010 and 130.0101, Education Code, are repealed.
544	544	SECTION 6. The change in law made by this Act applies only
545	545	to a contract for which requests for bids, requests for proposals,
546	546	or requests for qualifications are published or distributed on or
547	547	after the effective date of this Act. A contract for which requests
548	548	for bids, requests for proposals, or requests for qualifications
549	549	are published or distributed before the effective date of this Act
550	550	is covered by the law in effect when the requests were published or
551	551	distributed, and the former law is continued in effect for that
552	552	purpose.
553	553	SECTION 7. This Act does not make an appropriation. A
554	554	provision in this Act that creates a new governmental program,
555	555	creates a new entitlement, or imposes a new duty on a governmental
556	556	entity is not mandatory during a fiscal period for which the
557	557	legislature has not made a specific appropriation to implement the
558	558	provision.
559	559	SECTION 8. This Act takes effect September 1, 2011.
560	560	* * * * *