Bill Text: TX HB495 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to competitive bids for water utilities contracts.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-03-22 - Left pending in committee [HB495 Detail]
Download: Texas-2011-HB495-Introduced.html
| 82R1579 AJZ-F | ||
| By: Dutton | H.B. No. 495 | |
|
|
||
|
|
||
| relating to competitive bids for water utilities contracts. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 13, Water Code, is amended by adding | ||
| Subchapter O to read as follows: | ||
| SUBCHAPTER O. CONTRACTS | ||
| Sec. 13.551. CONTRACTS; BIDS. (a) Any contract made by a | ||
| utility for work must conform to the provisions of this subchapter. | ||
| (b) The contract must contain, incorporate by reference, or | ||
| have attached to it the specifications, plans, and details for work | ||
| included in the contract. All work must be done in accordance with | ||
| these specifications, plans, and details and any authorized change | ||
| orders under the supervision of the utility or its designee. | ||
| (c) The utility may adopt minimum criteria for the | ||
| qualifications of bidders on its contracts and for sureties issuing | ||
| payment and performance bonds. For contracts over $50,000, the | ||
| utility shall require a person who bids to submit a certified or | ||
| cashier's check on a responsible bank in the state equal to at least | ||
| two percent of the total amount of the bid, or a bid bond of at least | ||
| two percent of the total amount of the bid issued by a surety | ||
| legally authorized to do business in this state, as a good faith | ||
| deposit to ensure execution of the contract. Notwithstanding any | ||
| criteria adopted under this subsection, for a contract for more | ||
| than $250,000, the utility shall accept a bid bond in the amount | ||
| required by the utility as a bid deposit if the bid bond meets the | ||
| other requirements of this subsection. If the successful bidder | ||
| fails or refuses to enter into a proper contract with the utility, | ||
| or fails or refuses to furnish the payment and performance bonds | ||
| required by law, the bidder forfeits the deposit. The payment, | ||
| performance, and bid bonding requirements of this subsection do not | ||
| apply to a contract for the purchase of equipment, materials, or | ||
| machinery not otherwise incorporated into a construction project. | ||
| (d) This section does not apply to a utility that, under | ||
| Subchapter K, is under receivership or temporary management. | ||
| SECTION 2. This Act takes effect immediately if it receives | ||
| a vote of two-thirds of all the members elected to each house, as | ||
| provided by Section 39, Article III, Texas Constitution. If this | ||
| Act does not receive the vote necessary for immediate effect, this | ||
| Act takes effect September 1, 2011. | ||
