| 1 | 1 | | 88R3443 KBB-D |
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| 2 | 2 | | By: Spiller, et al. H.B. No. 1132 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the amount of an expenditure made by certain political |
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| 8 | 8 | | subdivisions for which competitive bidding is required. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 44.031(a), Education Code, is amended to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | (a) Except as provided by this subchapter, all school |
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| 13 | 13 | | district contracts for the purchase of goods and services, except |
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| 14 | 14 | | contracts for the purchase of produce or vehicle fuel, valued at |
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| 15 | 15 | | $100,000 [$50,000] or more in the aggregate for each 12-month |
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| 16 | 16 | | period shall be made by the method, of the following methods, that |
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| 17 | 17 | | provides the best value for the district: |
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| 18 | 18 | | (1) competitive bidding for services other than |
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| 19 | 19 | | construction services; |
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| 20 | 20 | | (2) competitive sealed proposals for services other |
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| 21 | 21 | | than construction services; |
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| 22 | 22 | | (3) a request for proposals, for services other than |
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| 23 | 23 | | construction services; |
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| 24 | 24 | | (4) an interlocal contract; |
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| 25 | 25 | | (5) a method provided by Chapter 2269, Government |
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| 26 | 26 | | Code, for construction services; |
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| 27 | 27 | | (6) the reverse auction procedure as defined by |
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| 28 | 28 | | Section 2155.062(d), Government Code; or |
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| 29 | 29 | | (7) the formation of a political subdivision |
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| 30 | 30 | | corporation under Section 304.001, Local Government Code. |
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| 31 | 31 | | SECTION 2. Section 252.021(a), Local Government Code, is |
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| 32 | 32 | | amended to read as follows: |
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| 33 | 33 | | (a) Before a municipality may enter into a contract that |
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| 34 | 34 | | requires an expenditure of more than $100,000 [$50,000] from one or |
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| 35 | 35 | | more municipal funds, the municipality must: |
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| 36 | 36 | | (1) comply with the procedure prescribed by this |
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| 37 | 37 | | subchapter and Subchapter C for competitive sealed bidding or |
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| 38 | 38 | | competitive sealed proposals; |
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| 39 | 39 | | (2) use the reverse auction procedure, as defined by |
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| 40 | 40 | | Section 2155.062(d), Government Code, for purchasing; or |
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| 41 | 41 | | (3) comply with a method described by Chapter 2269, |
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| 42 | 42 | | Government Code. |
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| 43 | 43 | | SECTION 3. Section 252.0215, Local Government Code, is |
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| 44 | 44 | | amended to read as follows: |
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| 45 | 45 | | Sec. 252.0215. COMPETITIVE BIDDING IN RELATION TO |
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| 46 | 46 | | HISTORICALLY UNDERUTILIZED BUSINESS. A municipality, in making an |
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| 47 | 47 | | expenditure of more than $3,000 but less than $100,000 [$50,000], |
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| 48 | 48 | | shall contact at least two historically underutilized businesses on |
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| 49 | 49 | | a rotating basis, based on information provided by the comptroller |
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| 50 | 50 | | pursuant to Chapter 2161, Government Code. If the list fails to |
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| 51 | 51 | | identify a historically underutilized business in the county in |
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| 52 | 52 | | which the municipality is situated, the municipality is exempt from |
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| 53 | 53 | | this section. |
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| 54 | 54 | | SECTION 4. Section 262.003(a), Local Government Code, is |
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| 55 | 55 | | amended to read as follows: |
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| 56 | 56 | | (a) Any law that requires a county to follow a competitive |
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| 57 | 57 | | procurement procedure in making a purchase requiring the |
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| 58 | 58 | | expenditure of $100,000 [$50,000] or less does not apply to the |
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| 59 | 59 | | purchase of an item available for purchase from only one supplier. |
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| 60 | 60 | | SECTION 5. Section 262.023(a), Local Government Code, is |
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| 61 | 61 | | amended to read as follows: |
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| 62 | 62 | | (a) Before a county may purchase one or more items under a |
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| 63 | 63 | | contract that will require an expenditure exceeding $100,000 |
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| 64 | 64 | | [$50,000], the commissioners court of the county must: |
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| 65 | 65 | | (1) comply with the competitive bidding or competitive |
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| 66 | 66 | | proposal procedures prescribed by this subchapter; |
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| 67 | 67 | | (2) use the reverse auction procedure, as defined by |
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| 68 | 68 | | Section 2155.062(d), Government Code, for purchasing; or |
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| 69 | 69 | | (3) comply with a method described by Chapter 2269, |
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| 70 | 70 | | Government Code. |
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| 71 | 71 | | SECTION 6. Section 271.024, Local Government Code, is |
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| 72 | 72 | | amended to read as follows: |
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| 73 | 73 | | Sec. 271.024. COMPETITIVE PROCUREMENT PROCEDURE APPLICABLE |
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| 74 | 74 | | TO CONTRACT. If a governmental entity is required by statute to |
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| 75 | 75 | | award a contract for the construction, repair, or renovation of a |
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| 76 | 76 | | structure, road, highway, or other improvement or addition to real |
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| 77 | 77 | | property on the basis of competitive bids, and if the contract |
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| 78 | 78 | | requires the expenditure of more than $100,000 [$50,000] from the |
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| 79 | 79 | | funds of the entity, the bidding on the contract must be |
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| 80 | 80 | | accomplished in the manner provided by this subchapter. |
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| 81 | 81 | | SECTION 7. Section 271.054, Local Government Code, is |
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| 82 | 82 | | amended to read as follows: |
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| 83 | 83 | | Sec. 271.054. COMPETITIVE PROCUREMENT REQUIREMENT. Before |
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| 84 | 84 | | the governing body of an issuer may enter into a contract requiring |
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| 85 | 85 | | an expenditure by or imposing an obligation or liability on the |
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| 86 | 86 | | issuer, or on a subdivision of the issuer if the issuer is a county, |
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| 87 | 87 | | of more than $100,000 [$50,000], the governing body must: |
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| 88 | 88 | | (1) submit the proposed contract to competitive |
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| 89 | 89 | | procurement; or |
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| 90 | 90 | | (2) use an alternate method of project delivery |
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| 91 | 91 | | authorized by Chapter 2269, Government Code. |
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| 92 | 92 | | SECTION 8. Sections 252.312(b) and (c), Transportation |
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| 93 | 93 | | Code, are amended to read as follows: |
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| 94 | 94 | | (b) If the county road engineer so recommends and the |
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| 95 | 95 | | commissioners court considers it to be in the best interest of the |
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| 96 | 96 | | county, a purchase in an amount of $100,000 [$50,000] or less may be |
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| 97 | 97 | | made through negotiation by the commissioners court or the court's |
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| 98 | 98 | | authorized representative on requisition to be approved by the |
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| 99 | 99 | | commissioners court or the county auditor without advertising for |
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| 100 | 100 | | competitive bids. |
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| 101 | 101 | | (c) A purchase may not be divided or reduced to avoid the |
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| 102 | 102 | | competitive bidding requirement on a purchase that would otherwise |
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| 103 | 103 | | cost more than $100,000 [$50,000]. |
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| 104 | 104 | | SECTION 9. The changes in law made by this Act apply only to |
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| 105 | 105 | | a purchase made on or after the effective date of this Act. A |
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| 106 | 106 | | purchase made before the effective date of this Act is governed by |
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| 107 | 107 | | the law as it existed immediately before the effective date of this |
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| 108 | 108 | | Act, and that law is continued in effect for that purpose. |
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| 109 | 109 | | SECTION 10. This Act takes effect September 1, 2023. |
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