Bill Text: TX SB413 | 2011-2012 | 82nd Legislature | Comm Sub

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Bill Title: Relating to the purchasing and contracting authority of counties.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-04-18 - Not again placed on intent calendar [SB413 Detail]

Download: Texas-2011-SB413-Comm_Sub.html

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By: West S.B. No. 413
(In the Senate - Filed January 25, 2011; February 2, 2011,
read first time and referred to Committee on Intergovernmental
Relations; March 29, 2011, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 5, Nays 0;
March 29, 2011, sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 413 By: Gallegos

A BILL TO BE ENTITLED
AN ACT
relating to the purchasing and contracting authority of counties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 262.011, Local Government Code, is
amended by amending Subsections (f), (g), (k), (m), and (o) and
adding Subsection (q) to read as follows:
(f) A purchase made by the county purchasing agent shall be
paid for by an electronic transfer, check, or [a] warrant drawn by
the county auditor on funds in the county treasury in the manner
provided by law. The county auditor may not draw and the county
treasurer may not honor an electronic transfer, check, or [a]
warrant for a purchase unless the purchase is made by the county
purchasing agent or on competitive bid as provided by law.
(g) The county purchasing agent may cooperate with the
purchasing agent of a municipality in the county to purchase any
item in volume as may be necessary. The county treasurer shall
honor an electronic transfer, check, or [a] warrant drawn by the
county auditor to reimburse the municipality's purchasing agent
making the purchase for the county.
(k) The board that appoints the county purchasing agent
shall set the salary of the agent in an amount not less than $5,000 a
year, payable in equal monthly installments or by any other
distribution at the option of the county. The salary shall be paid
by an electronic transfer, check, or warrant [warrants] drawn on
funds in the county treasury.
(m) A person, including an officer, agent, or employee of a
county or of a subdivision or department of a county, commits an
offense if the person violates this section. An offense under this
subsection is a misdemeanor punishable by a fine of not less than
$10 or more than $100[, by confinement in the county jail for not
less than 30 days or more than one year, or by both the fine and
confinement]. Each act in violation of this section is a separate
offense.
(o) The county purchasing agent shall adopt the rules and
procedures necessary to implement the agent's duties under this
section subject to approval by the commissioners court.
Notwithstanding Subsection (f) or other law, rules and procedures
adopted under this subsection may include rules and procedures for
persons to use county purchasing cards to pay for county purchases
under the direction and supervision of the county purchasing agent.
Procedures for use of purchasing cards may not avoid the
competitive bidding requirements of this chapter or other
requirements of county financial law.
(q) An electronic transfer under this chapter must provide
the same level of internal controls and statutory authorizations as
required for a check or warrant.
SECTION 2. Subsections (d) and (e), Section 262.0115, Local
Government Code, are amended to read as follows:
(d) Under the supervision of the commissioners court, the
purchasing agent shall carry out the functions prescribed by law
for a purchasing agent under Section 262.011 and for any
administrative function of the county auditor in regard to county
purchases and contracts and shall administer the procedures
prescribed by law for notice and public bidding for county
purchases and contracts.
(e) A county that has established the position of county
purchasing agent under this section may abolish the position at any
time. On the abolition of the position, the county auditor shall
assume the functions previously performed by the purchasing agent
regarding the notice for and opening of competitive bids or
proposals under this chapter and Chapter 271.
SECTION 3. Section 262.022, Local Government Code, is
amended by amending Subdivisions (5) and (6) and adding
Subdivisions (5-a) and (5-b) to read as follows:
(5) "Item" means any service, equipment, good, or
other tangible or intangible personal property, including
insurance and high technology items. The term does not include
professional services as defined by Section 2254.002, Government
Code.
(5-a) "Lowest and best" means a bid or offer providing
the best value considering associated direct and indirect costs,
including transport, maintenance, reliability, life cycle,
warranties, and customer service after a sale.
(5-b) "Normal purchasing practice" means:
(A) an accepted custom, practice, or standard for
government procurement in the state; or
(B) a practice recognized by a national
purchasing association regarding the purchase of a particular good
or service.
(6) "Purchase" means any kind of acquisition,
including by a lease or revenue contract[, of an item].
SECTION 4. Section 262.0225, Local Government Code, is
amended by adding Subsection (d) to read as follows:
(d) A county that complies in good faith with the
competitive bidding requirements of this chapter and receives no
responsive bids for an item may procure the item under Section
262.0245.
SECTION 5. Section 262.0245, Local Government Code, is
amended to read as follows:
Sec. 262.0245. COMPETITIVE PROCUREMENT PROCEDURES ADOPTED
BY COUNTY PURCHASING AGENTS OR COMMISSIONERS COURT. A county
purchasing agent or, in a county without a purchasing agent, the
commissioners court shall adopt procedures that provide for
competitive procurement, to the extent practicable under the
circumstances, for the county purchase of an item that is not
subject to competitive procurement or for which the county receives
no responsive bid.
SECTION 6. Section 262.0255, Local Government Code, is
amended by adding Subsection (c) to read as follows:
(c) A commissioners court purchasing personal property
under Section 271.083 of this code or Section 791.025, Government
Code, may negotiate with a vendor awarded a cooperative contract
under those sections an agreement for the vendor to purchase or
accept as trade used equipment owned by the county.
SECTION 7. Section 262.0256, Local Government Code, as
amended by Chapters 660 (H.B. 2242) and 725 (H.B. 3089), Acts of the
78th Legislature, Regular Session, 2003, is reenacted and amended
to read as follows:
Sec. 262.0256. PRE-BID CONFERENCE FOR CERTAIN COUNTIES OR A
DISTRICT GOVERNED BY THOSE COUNTIES. (a) [This section applies
only to a county with a population of 2.8 million or more.
[(b)] The commissioners court of the county or the governing
body of a district or authority created under Section 59, Article
XVI, Texas Constitution, if the governing body is the commissioners
court of the county in which the district is located, may require a
principal, officer, or employee of each prospective bidder to
attend a mandatory pre-bid conference conducted for the purpose of
discussing contract requirements and answering questions of
prospective bidders.
(b) [(c)] After a conference is conducted under Subsection
(a) [(b)], any additional required notice for the proposed purchase
may be sent by certified mail, return receipt requested, only to
prospective bidders who attended the conference. Notice under this
subsection is not subject to the requirements of Section 262.025.
SECTION 8. Subsection (b), Section 262.026, Local
Government Code, is amended to read as follows:
(b) Opened bids shall be kept on file and available for
inspection by anyone desiring to see them until the first
anniversary of the date of opening. Opened bids are subject to
disclosure under Chapter 552, Government Code.
SECTION 9. Section 262.027, Local Government Code, is
amended by amending Subsection (c) and adding Subsections (g) and
(h) to read as follows:
(c) A contract may not be awarded to a bidder who is not the
lowest dollar bidder meeting specifications unless, before the
award, each lower bidder is given:
(1) notice of the proposed award; and
(2) [is given] an opportunity to appear before the
commissioners court and present previously unconsidered evidence
concerning the lower bid as best, which may include evidence of the
bidder's responsibility.
(g) If after the award the successful bidder fails to
qualify for required bonds, or is otherwise unable to meet the
requirements of the award, the commissioners court may award the
contract to the next bidder in order of ranking as lowest and best
bid.
(h) Before a contract is awarded, a bidder must give written
notice to the officer authorized to open bids that the bidder
intends to protest an award of the contract under Subsection (c).
This subsection does not limit the ability of a bidder to speak at a
public meeting of the commissioners court under rules established
by the court.
SECTION 10. Subsection (b), Section 262.0271, Local
Government Code, is amended to read as follows:
(b) In purchasing items under this chapter through a
competitive bidding process, if a county receives one or more bids
from a bidder who provides reasonable [comparable] health insurance
coverage to its employees and requires a subcontractor the bidder
intends to use to provide reasonable [comparable] health insurance
coverage to the subcontractor's employees and whose bid is within
five percent of the lowest and best bid price received by the county
from a bidder who does not provide or require reasonable
[comparable] health insurance coverage, the commissioners court of
the county may give preference to the bidder who provides and
requires reasonable [comparable] health insurance coverage.
SECTION 11. Section 262.0276, Local Government Code, is
amended by amending Subsection (a) and adding Subsection (d) to
read as follows:
(a) By an order adopted and entered in the minutes of the
commissioners court and after notice is published in a newspaper of
general circulation in the county, the commissioners court may
adopt rules permitting the county to refuse to enter into a contract
or other transaction with a person who owes a debt [indebted] to the
county.
(d) In this section, "debt" includes delinquent taxes,
fines, fees, and delinquencies arising from written agreements with
the county.
SECTION 12. Subsection (d), Section 262.0295, Local
Government Code, is amended to read as follows:
(d) Within 30 days after the date the unpriced proposals are
opened under Subsection (c), the county official shall present the
priced bids to the commissioners court. The award of the contract
shall be made to the responsible offeror whose bid is determined to
be the lowest and best evaluated offer resulting from negotiation.
All proposals and bids that have been submitted shall be available
and open for public inspection after the contract is awarded.
SECTION 13. Subsection (b), Section 262.030, Local
Government Code, is amended to read as follows:
(b) Quotations must be solicited through a request for
proposals. Public notice for the request for proposals must be made
in the same manner as provided in the competitive bidding
procedure. The request for proposals must specify the relative
importance of price and other evaluation factors. The award of the
contract shall be made to the responsible offeror whose proposal is
determined to be the lowest and best evaluated offer resulting from
negotiation, taking into consideration the relative importance of
price and other evaluation factors set forth in the request for
proposals.
SECTION 14. Subsection (c), Section 262.034, Local
Government Code, is amended to read as follows:
(c) A county officer or employee commits an offense if the
officer or employee intentionally or knowingly violates this
subchapter, other than by conduct described by Subsection (a) [or
(b)]. An offense under this subsection is a Class C misdemeanor.
SECTION 15. Subsection (a), Section 262.036, Local
Government Code, is amended to read as follows:
(a) Notwithstanding any other provision in this chapter, a
county [with a population of 800,000 or more] may select an
appropriately licensed insurance agent as the sole broker of record
to obtain proposals and coverages for insurance that provides
necessary coverage and adequate limits of coverage in all areas of
risk, including public official liability, property, casualty,
workers' compensation, and specific and aggregate stop-loss
coverage for self-funded health care.
SECTION 16. Subchapter C, Chapter 262, Local Government
Code, is amended by adding Section 262.037 to read as follows:
Sec. 262.037. QUALIFICATION. An officer authorized to make
a purchase on behalf of a county or a county department or office
may not make any purchase until providing to the county judge a
signed acknowledgment that the officer has read and understands
this chapter. This section does not apply in a county that has
appointed a purchasing agent under Subchapter B.
SECTION 17. Subsection (c), Section 271.029, Local
Government Code, is amended to read as follows:
(c) An officer or employee of a governmental entity commits
an offense if the officer or employee intentionally or knowingly
violates this subchapter, other than by conduct described by
Subsection (a) [or (b)]. An offense under this subsection is a
Class C misdemeanor.
SECTION 18. Section 271.042, Local Government Code, is
amended to read as follows:
Sec. 271.042. PURPOSE; CONFLICT. (a) It is the purpose of
this subchapter to provide:
(1) a procedure for certain financing that is an
alternative to the more cumbersome procedure under Chapter 252 or
262; and
(2) a new class of securities to be issued and
delivered within the financial capabilities of an issuer on
compliance with the procedures prescribed by this subchapter.
(b) If there is a conflict between a provision of this
subchapter and a provision of Chapter 252 or 262, an issuer may use
either provision, and it is not necessary for the governing body to
designate the law under which action is being taken.
SECTION 19. Subsection (c), Section 271.064, Local
Government Code, is amended to read as follows:
(c) An officer or employee of an issuer commits an offense
if the officer or employee intentionally or knowingly violates this
subchapter, other than by conduct described by Subsection (a) [or
(b)]. An offense under this subsection is a Class C misdemeanor.
SECTION 20. the following provisions of the Local
Government Code are repealed:
(1) Subsection (a), Section 262.0271;
(2) Subdivision (3), Subsection (a), Section
262.0295;
(3) Subsection (b), Section 262.034;
(4) Section 262.035;
(5) Subsection (b), Section 271.029;
(6) Section 271.030;
(7) Subsection (b), Section 271.064; and
(8) Section 271.065.
SECTION 21. The changes in law made by this Act apply only
to purchases made or a bid deadline that occurs on or after
September 1, 2011. A purchase made or a bid deadline that occurs
before September 1, 2011, is governed by the law as it existed
immediately before the effective date of this Act, and that law is
continued in effect for that purpose.
SECTION 22. (a) The changes in law made by this Act to
Sections 262.034, 271.029, and 271.064, Local Government Code,
apply only to an offense committed on or after the effective date of
this Act. For purposes of this section, an offense is committed
before the effective date of this Act if any element of the offense
occurs before that date.
(b) An offense committed before the effective date of this
Act is covered by the law in effect immediately before the effective
date of this Act, and the former law is continued in effect for that
purpose.
SECTION 23. This Act takes effect September 1, 2011.
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