H.B. No. 1050
AN ACT
relating to purchasing and other contracts by governmental
entities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 791.011, Government Code, is amended by
adding Subsection (j) to read as follows:
(j) For the purposes of this subsection, the term
"purchasing cooperative" means a group purchasing organization
that governmental entities join as members and the managing entity
of which receives fees from members or vendors. A local government
may not enter into a contract to purchase construction-related
goods or services through a purchasing cooperative under this
chapter in an amount greater than $50,000 unless a person
designated by the local government certifies in writing that:
(1) the project for which the construction-related
goods or services are being procured does not require the
preparation of plans and specifications under Chapter 1001 or 1051,
Occupations Code; or
(2) the plans and specifications required under
Chapters 1001 and 1051, Occupations Code, have been prepared.
SECTION 2. Section 2252.002, Government Code, is amended to
read as follows:
Sec. 2252.002. AWARD OF CONTRACT TO NONRESIDENT BIDDER. A
governmental entity may not award a governmental contract to a
nonresident bidder unless the nonresident underbids the lowest bid
submitted by a responsible resident bidder by an amount that is not
less than the amount by which a resident bidder would be required to
underbid the nonresident bidder to obtain a comparable contract in:
(1) the state in which the nonresident's principal
place of business is located; or
(2) a state in which the nonresident is a resident
manufacturer.
SECTION 3. Section 2267.353(b), Government Code, as added
by Chapter 1129 (H.B. 628), Acts of the 82nd Legislature, Regular
Session, 2011, is amended to read as follows:
(b) A contract for a project under this subchapter may cover
only a single integrated project. A governmental entity may not
enter into a contract for aggregated projects at multiple
locations. For purposes of this subsection:
(1) if a metropolitan transit authority created under
Chapter 451, Transportation Code, enters into a contract for a
project involving a linear transit project with multiple stops
along the project route for boarding passengers, created under
Chapter 451, Transportation Code, the linear transit project [bus
rapid transit system created under Chapter 451, Transportation
Code, the bus rapid transit system] is a single integrated project;
and
(2) a water treatment plant, including a desalination
plant, that includes treatment facilities, well fields, and
pipelines is a single integrated project.
SECTION 4. Section 2267.354, Government Code, as added by
Chapter 1129 (H.B. 628), Acts of the 82nd Legislature, Regular
Session, 2011, is amended to read as follows:
Sec. 2267.354. LIMITATION ON NUMBER OF PROJECTS. (a)
[Before September 1, 2013:
[(1) a governmental entity with a population of
500,000 or more within the entity's geographic boundary or service
area may, under this subchapter, enter into contracts for not more
than three projects in any fiscal year; and
[(2) a municipally owned water utility with a separate
governing board appointed by the governing body of a municipality
with a population of 500,000 or more may:
[(A) independently enter into a contract for not
more than one civil works project in any fiscal year; and
[(B) enter into contracts for additional civil
works projects in any fiscal year, but not more than the number of
civil works projects prescribed by the limit in Subdivision (1) for
the municipality, provided that:
[(i) the additional contracts for the civil
works projects entered into by the utility under this paragraph are
allocated to the number of contracts the municipality that appoints
the utility's governing board may enter under Subdivision (1); and
[(ii) the governing body of the
municipality must approve the contracts.
[(b) Before September 1, 2015, a governmental entity that
has a population of 100,000 or more but less than 500,000 or is a
board of trustees governed by Chapter 54, Transportation Code, may
enter into contracts under this subchapter for not more than two
projects in any fiscal year.
[(c)] After August 31, 2013 [the period described by
Subsection (a) or (b)]:
(1) a governmental entity with a population of 500,000
or more within the entity's geographic boundary or service area
may, under this subchapter, enter into contracts for not more than
six projects in any fiscal year;
(2) a municipally owned water utility with a separate
governing board appointed by the governing body of a municipality
with a population of 500,000 or more may:
(A) independently enter into contracts for not
more than two civil works projects in any fiscal year; and
(B) enter into contracts for additional civil
works projects in any fiscal year, but not more than the number of
civil works projects prescribed by the limit in Subdivision (1) for
the municipality, provided that:
(i) the additional contracts for the civil
works projects entered into by the utility under this paragraph are
allocated to the number of contracts the municipality that appoints
the utility's governing board may enter under Subdivision (1); and
(ii) the governing body of the municipality
must approve the contracts; and
(3) a governmental entity that has a population of
100,000 or more but less than 500,000 or is a board of trustees
governed by Chapter 54, Transportation Code, may enter into
contracts under this subchapter for not more than four projects in
any fiscal year.
(b) [(d)] For purposes of determining the number of
eligible projects under this section, a municipally owned water
utility with a separate governing board appointed by the governing
body of the municipality is considered part of the municipality.
SECTION 5. (a) This section takes effect only if the Act of
the 83rd Legislature, Regular Session, 2013, relating to
nonsubstantive additions to and corrections in enacted codes
becomes law.
(b) Subchapter H, Chapter 2269, Government Code, is amended
by adding Section 2269.3615 to read as follows:
Sec. 2269.3615. IDENTIFICATION OF PROJECT TEAM. (a) A
governmental entity may require a design-build firm responding to a
request for detailed proposals to identify companies that will:
(1) fill key project roles, including project
management, lead design firm, quality control management, and
quality assurance management; and
(2) serve as key task leaders for geotechnical,
hydraulics and hydrology, structural, environmental, utility, and
right-of-way issues.
(b) If a design-build firm required to identify companies
under Subsection (a) is selected for a design-build agreement, the
firm may not make changes to the identified companies unless an
identified company:
(1) is no longer in business, is unable to fulfill its
legal, financial, or business obligations, or can no longer meet
the terms of the teaming agreement with the design-build firm;
(2) voluntarily removes itself from the team;
(3) fails to provide a sufficient number of qualified
personnel to fulfill the duties identified during the proposal
stage; or
(4) fails to negotiate in good faith in a timely manner
in accordance with provisions established in the teaming agreement
proposed for the project.
(c) If the design-build firm makes team changes in violation
of Subsection (b), any cost savings resulting from the change
accrue to the governmental entity and not to the design-build firm.
SECTION 6. (a) This section takes effect only if the Act of
the 83rd Legislature, Regular Session, 2013, relating to
nonsubstantive additions to and corrections in enacted codes does
not become law.
(b) Subchapter H, Chapter 2267, Government Code, as added by
Chapter 1129 (H.B. 628), Acts of the 82nd Legislature, Regular
Session, 2011, is amended by adding Section 2267.3615 to read as
follows:
Sec. 2267.3615. IDENTIFICATION OF PROJECT TEAM. (a) A
governmental entity may require a design-build firm responding to a
request for detailed proposals to identify companies that will:
(1) fill key project roles, including project
management, lead design firm, quality control management, and
quality assurance management; and
(2) serve as key task leaders for geotechnical,
hydraulics and hydrology, structural, environmental, utility, and
right-of-way issues.
(b) If a design-build firm required to identify companies
under Subsection (a) is selected for a design-build agreement, the
firm may not make changes to the identified companies unless an
identified company:
(1) is no longer in business, is unable to fulfill its
legal, financial, or business obligations, or can no longer meet
the terms of the teaming agreement with the design-build firm;
(2) voluntarily removes itself from the team;
(3) fails to provide a sufficient number of qualified
personnel to fulfill the duties identified during the proposal
stage; or
(4) fails to negotiate in good faith in a timely manner
in accordance with provisions established in the teaming agreement
proposed for the project.
(c) If the design-build firm makes team changes in violation
of Subsection (b), any cost savings resulting from the change
accrue to the governmental entity and not to the design-build firm.
SECTION 7. Section 252.048(c-1), Local Government Code, is
amended to read as follows:
(c-1) If a change order for a public works contract in a
municipality with a population of 300,000 [500,000] or more
involves a decrease or an increase of $100,000 or less, or a lesser
amount as provided by ordinance, the governing body of the
municipality may grant general authority to an administrative
official of the municipality to approve the change order.
SECTION 8. Section 49.273(i), Water Code, is amended to
read as follows:
(i) If changes in plans or specifications are necessary
after the performance of the contract is begun, or if it is
necessary to decrease or increase the quantity of the work to be
performed or of the materials, equipment, or supplies to be
furnished, the board may approve change orders making the changes.
The board may grant authority to an official or employee
responsible for purchasing or for administering a contract to
approve a change order that involves an increase or decrease of
$50,000 or less. The aggregate of the change orders may not
increase the original contract price by more than 25 [10]
percent. Additional change orders may be issued only as a result
of unanticipated conditions encountered during construction,
repair, or renovation or changes in regulatory criteria or to
facilitate project coordination with other political entities.
SECTION 9. The changes in law made by this Act to Sections
791.011 and 2252.002, Government Code, and Section 49.273(i), Water
Code, apply only to a contract made on or after the effective date
of this Act.
SECTION 10. The changes in law made by this Act to Sections
2267.3615 and 2269.3615, Government Code, as added by this Act,
apply only to a contract or construction project for which a
governmental entity first advertises or otherwise requests bids,
proposals, offers, or qualifications, or makes a similar
solicitation, on or after the effective date of this Act.
SECTION 11. Section 2267.353(d), Government Code, is
repealed.
SECTION 12. This Act takes effect September 1, 2013.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1050 was passed by the House on May 7,
2013, by the following vote: Yeas 144, Nays 0, 2 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 1050 on May 24, 2013, by the following vote: Yeas 139, Nays 1,
2 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1050 was passed by the Senate, with
amendments, on May 22, 2013, by the following vote: Yeas 31, Nays
0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor