By: Lindsay S.B. No. 354
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the powers of a local government corporation.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 431.101, Transportation Code, is amended
1-5 by amending Subsection (e) and adding Subsections (g) and (h) to
1-6 read as follows:
1-7 (e) Except as provided by Subsections (g) and (h), a local
1-8 government corporation is subject to all state law related to the
1-9 design and construction of projects, including the procurement of
1-10 design and construction services, that applies to the local
1-11 government that created the corporation. In the event that a local
1-12 government corporation is created jointly by multiple local
1-13 governments, and if the local governments have different threshold
1-14 contract amounts at which competitive bidding is required, then the
1-15 corporation shall follow the lower amount [Section 394.904(a),
1-16 Local Government Code, applies to property and improvements owned
1-17 by a local government corporation. Section 394.904(b) of that code
1-18 applies to each contract awarded by the local government
1-19 corporation].
1-20 (g) A corporation created after September 1, 1999, by a
1-21 municipality for the purpose of the development of a convention
1-22 center hotel project is exempt from competitive bidding
1-23 requirements and other restrictions on the award of contracts for
1-24 the limited purpose of completing a project initiated prior to
1-25 December 31, 2000.
2-1 (h) A corporation created by a municipality after September
2-2 1, 1999, for the purpose of developing water treatment and
2-3 distribution facilities is exempt from competitive bidding
2-4 requirements and other restrictions on the award of contracts for
2-5 the limited purpose of completing projects as described in a
2-6 project definition document issued prior to December 31, 2000. Any
2-7 expansion of the treatment facility beyond the project described in
2-8 the project definition document is exempt from competitive bidding
2-9 requirements and other restrictions on the award of contracts for
2-10 the purpose of contracting for the operation of the facility but is
2-11 subject to all state law related to design and construction
2-12 procurement that applies to the local government that created the
2-13 corporation, as provided in Subsection (e).
2-14 SECTION 2. Subchapter D, Chapter 431, Transportation Code,
2-15 is amended by adding Sections 431.110 and 431.111 to read as
2-16 follows:
2-17 Sec. 431.110. CONFLICT OF INTEREST IN CONTRACTS. The
2-18 provisions of Chapter 171, Local Government Code, shall apply to
2-19 the award of contracts by a local government corporation.
2-20 Sec. 431.111. ANNUAL REPORT TO COMPTROLLER. (a) Not later
2-21 than February 1 of each year, the board of a local government
2-22 corporation shall submit to the comptroller a report in the form
2-23 required by the comptroller. The form for the report may not
2-24 exceed one page in length.
2-25 (b) The report must include:
2-26 (1) a statement of the corporation's purpose;
3-1 (2) a statement of the corporation's total revenues
3-2 and expenditures during the preceding fiscal year; and
3-3 (3) a summary of the corporation's activities during
3-4 the preceding fiscal year, including any bonds issued and capital
3-5 projects undertaken by the corporation.
3-6 (c) A copy of the annual report required by this section
3-7 shall also be submitted to the local government that created the
3-8 corporation.
3-9 SECTION 3. With the exception of Subsections (g) and (h),
3-10 Section 431.101, Transportation Code, as added by this Act, the
3-11 change in law made by this Act to Subsection (e), Section 431.101,
3-12 Transportation Code, applies only to a contract entered into by a
3-13 local government corporation on or after the effective date of this
3-14 Act. A contract entered into before the effective date of this Act
3-15 is governed by that section as it existed immediately before the
3-16 effective date of this Act, and the former law is continued in
3-17 effect for that purpose.
3-18 SECTION 4. This Act takes effect immediately if it receives
3-19 a vote of two-thirds of all the members elected to each house, as
3-20 provided by Section 39, Article III, Texas Constitution. If this
3-21 Act does not receive the vote necessary for immediate effect, this
3-22 Act takes effect September 1, 2001.