| 4 | 3 | | |
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| 5 | 4 | | |
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| 6 | 5 | | A BILL TO BE ENTITLED |
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| 7 | 6 | | AN ACT |
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| 8 | 7 | | relating to the authority of a governmental entity to limit bidding |
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| 9 | 8 | | on certain public contracts to bidders that are small businesses. |
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| 10 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 10 | | SECTION 1. Section 271.021, Local Government Code, is |
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| 12 | 11 | | amended by adding Subdivision (5) to read as follows: |
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| 13 | 12 | | (5) "Small business" means a small business concern as |
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| 14 | 13 | | defined by the United States Small Business Administration under 15 |
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| 15 | 14 | | U.S.C. Section 632. |
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| 16 | 15 | | SECTION 2. Section 271.025(a), Local Government Code, is |
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| 17 | 16 | | amended to read as follows: |
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| 18 | 17 | | (a) The governmental entity must advertise for bids. The |
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| 19 | 18 | | advertisement for bids must include a notice that: |
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| 20 | 19 | | (1) describes the work; |
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| 21 | 20 | | (2) states the location at which the bidding |
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| 22 | 21 | | documents, plans, specifications, or other data may be examined by |
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| 23 | 22 | | all bidders; [and] |
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| 24 | 23 | | (3) states the time and place for submitting bids and |
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| 25 | 24 | | the time and place that bids will be opened; and |
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| 26 | 25 | | (4) if Section 271.0255 applies to the contract, |
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| 27 | 26 | | states that only a small business may bid on the contract. |
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| 28 | 27 | | SECTION 3. Subchapter B, Chapter 271, Local Government |
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| 29 | 28 | | Code, is amended by adding Section 271.0255 to read as follows: |
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| 30 | 29 | | Sec. 271.0255. SMALL BUSINESS PROGRAM. (a) |
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| 31 | 30 | | Notwithstanding any other provision of this chapter, the governing |
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| 32 | 31 | | body of a governmental entity may establish a program to limit |
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| 33 | 32 | | bidding on certain contracts to bidders that are small businesses. |
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| 34 | 33 | | (b) The governing body of a governmental entity that |
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| 35 | 34 | | establishes a program under this section may accept bids on a |
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| 36 | 35 | | contract only from bidders that are small businesses if: |
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| 37 | 36 | | (1) the governing body determines the contract is |
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| 38 | 37 | | appropriate for performance by a small business; and |
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| 39 | 38 | | (2) the contract requires an expenditure of not more |
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| 40 | 39 | | than $1 million. |
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| 41 | 40 | | SECTION 4. This Act takes effect immediately if it receives |
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| 42 | 41 | | a vote of two-thirds of all the members elected to each house, as |
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| 43 | 42 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 44 | 43 | | Act does not receive the vote necessary for immediate effect, this |
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| 45 | 44 | | Act takes effect September 1, 2021. |
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