H.B. No. 628
 
 
 
 
AN ACT
  relating to contracts by governmental entities and related
  professional services and to public works performance and payment
  bonds.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. PUBLIC WORKS PERFORMANCE AND PAYMENT BONDS
         SECTION 1.01.  Section 2253.021, Government Code, is amended
  by adding Subsection (h) to read as follows:
         (h)  A reverse auction procedure may not be used to obtain
  services related to a public work contract for which a bond is
  required under this section. In this subsection, "reverse auction
  procedure" has the meaning assigned by Section 2155.062 or a
  procedure similar to that described by Section 2155.062.
  ARTICLE 2.  CONTRACTS BY GOVERNMENTAL ENTITIES
         SECTION 2.01.  Section 11.168, Education Code, is amended to
  read as follows:
         Sec. 11.168.  USE OF DISTRICT RESOURCES PROHIBITED FOR
  CERTAIN PURPOSES; EXCEPTION.  (a)  Except as provided by Subsection
  (b) or Section 45.109(a-1) or [and] (a-2), the board of trustees of
  a school district may not enter into an agreement authorizing the
  use of school district employees, property, or resources for the
  provision of materials or labor for the design, construction, or
  renovation of improvements to real property not owned or leased by
  the district.
         (b)  This section does not prohibit the board of trustees of
  a school district from entering into an agreement for the design,
  construction, or renovation of improvements to real property not
  owned or leased by the district if the improvements benefit real
  property owned or leased by the district. Benefits to real property
  owned or leased by the district include the design, construction,
  or renovation of highways, roads, streets, sidewalks, crosswalks,
  utilities, and drainage improvements that serve or benefit the real
  property owned or leased by the district.
         SECTION 2.02.  Sections 44.031(a), (b), and (f), Education
  Code, are amended to read as follows:
         (a)  Except as provided by this subchapter, all school
  district contracts for the purchase of goods and services, except
  contracts for the purchase of produce or vehicle fuel, valued at
  $50,000 or more in the aggregate for each 12-month period shall be
  made by the method, of the following methods, that provides the best
  value for the district:
               (1)  competitive bidding for services other than
  construction services;
               (2)  competitive sealed proposals for services other
  than construction services;
               (3)  a request for proposals, for services other than
  construction services;
               (4)  an interlocal contract;
               (5)  a method provided by Chapter 2267, Government
  Code, for construction services [a design/build contract;
               [(6)     a contract to construct, rehabilitate, alter, or
  repair facilities that involves using a construction manager;
               [(7)     a job order contract for the minor construction,
  repair, rehabilitation, or alteration of a facility];
               (6) [(8)]  the reverse auction procedure as defined by
  Section 2155.062(d), Government Code; or
               (7) [(9)]  the formation of a political subdivision
  corporation under Section 304.001, Local Government Code.
         (b)  Except as provided by this subchapter, in determining to
  whom to award a contract, the district shall consider:
               (1)  the purchase price;
               (2)  the reputation of the vendor and of the vendor's
  goods or services;
               (3)  the quality of the vendor's goods or services;
               (4)  the extent to which the goods or services meet the
  district's needs;
               (5)  the vendor's past relationship with the district;
               (6)  the impact on the ability of the district to comply
  with laws and rules relating to historically underutilized
  businesses;
               (7)  the total long-term cost to the district to
  acquire the vendor's goods or services; [and]
               (8)  for a contract for goods and services, other than
  goods and services related to telecommunications and information
  services, building construction and maintenance, or instructional
  materials, whether the vendor or the vendor's ultimate parent
  company or majority owner:
                     (A)  has its principal place of business in this
  state; or
                     (B)  employs at least 500 persons in this state;
  and
               (9)  any other relevant factor specifically listed in
  the request for bids or proposals.
         (f)  This section does not apply to a contract for
  professional services rendered, including services of an
  architect, attorney, certified public accountant, engineer, or
  fiscal agent. A school district may, at its option, contract for
  professional services rendered by a financial consultant or a
  technology consultant in the manner provided by Section 2254.003,
  Government Code, in lieu of the methods provided by this section.
         SECTION 2.03.  Subchapter B, Chapter 44, Education Code, is
  amended by adding Sections 44.0351 and 44.0352 to read as follows:
         Sec. 44.0351.  COMPETITIVE BIDDING. (a)  Except to the
  extent prohibited by other law and to the extent consistent with
  this subchapter, a school district may use competitive bidding to
  select a vendor as authorized by Section 44.031(a)(1).
         (b)  Except as provided by this subsection, Subchapter B,
  Chapter 271, Local Government Code, does not apply to a competitive
  bidding process under this subchapter. Sections 271.026,
  271.027(a), and 271.0275, Local Government Code, apply to a
  competitive bidding process under this subchapter.
         (c)  A school district shall award a competitively bid
  contract at the bid amount to the bidder offering the best value for
  the district. In determining the best value for the district, the
  district is not restricted to considering price alone but may
  consider any other factors stated in the selection criteria. The
  selection criteria may include the factors listed in Section
  44.031(b).
         Sec. 44.0352.  COMPETITIVE SEALED PROPOSALS. (a)  In
  selecting a vendor through competitive sealed proposals as
  authorized by Section 44.031(a)(2), a school district shall follow
  the procedures prescribed by this section.
         (b)  The district shall prepare a request for competitive
  sealed proposals that includes information that vendors may require
  to respond to the request. The district shall state in the request
  for proposals the selection criteria that will be used in selecting
  the successful offeror.
         (c)  The district shall receive, publicly open, and read
  aloud the names of the offerors and, if any are required to be
  stated, all prices stated in each proposal. Not later than the 45th
  day after the date on which the proposals are opened, the district
  shall evaluate and rank each proposal submitted in relation to the
  published selection criteria.
         (d)  The district shall select the offeror that offers the
  best value for the district based on the published selection
  criteria and on its ranking evaluation. The district shall first
  attempt to negotiate a contract with the selected offeror. The
  district may discuss with the selected offeror options for a scope
  or time modification and any price change associated with the
  modification. If the district is unable to negotiate a
  satisfactory contract with the selected offeror, the district
  shall, formally and in writing, end negotiations with that offeror
  and proceed to the next offeror in the order of the selection
  ranking until a contract is reached or all proposals are rejected.
         (e)  In determining the best value for the district, the
  district is not restricted to considering price alone but may
  consider any other factors stated in the selection criteria.
         SECTION 2.04.  Subchapter B, Chapter 44, Education Code, is
  amended by adding Section 44.0411 to read as follows:
         Sec. 44.0411.  CHANGE ORDERS. (a)  If a change in plans or
  specifications is necessary after the performance of a contract is
  begun or if it is necessary to decrease or increase the quantity of
  work to be performed or of materials, equipment, or supplies to be
  furnished, the district may approve change orders making the
  changes.
         (b)  The total contract price may not be increased because of
  the changes unless additional money for increased costs is approved
  for that purpose from available money or is provided for by the
  authorization of the issuance of time warrants.
         (c)  The district may grant general authority to an
  administrative official to approve the change orders.
         (d)  A contract with an original contract price of $1 million
  or more may not be increased under this section by more than 25
  percent. If a change order for a contract with an original contract
  price of less than $1 million increases the contract amount to $1
  million or more, the total of the subsequent change orders may not
  increase the revised contract amount by more than 25 percent of the
  original contract price.
         SECTION 2.05.  Subchapter A, Chapter 46, Education Code, is
  amended by adding Section 46.0111 to read as follows:
         Sec. 46.0111.  ACTIONS BROUGHT FOR DEFECTIVE DESIGN,
  CONSTRUCTION, RENOVATION, OR IMPROVEMENT OF INSTRUCTIONAL
  FACILITY. (a)  In this section:
               (1)  "Net proceeds" means the difference between the
  amount recovered by or on behalf of a school district in an action,
  by settlement or otherwise, and the legal fees and litigation costs
  incurred by the district in prosecuting the action.
               (2)  "State's share" means an amount equal to the
  district's net proceeds from the recovery multiplied by a
  percentage determined by dividing the amount of state assistance
  under this subchapter used to pay the principal of and interest on
  bonds issued in connection with the instructional facility that is
  the subject of the action by the total amount of principal and
  interest paid on the bonds as of the date of the judgment or
  settlement.
         (b)  A school district that brings an action for recovery of
  damages for the defective design, construction, renovation, or
  improvement of an instructional facility financed by bonds
  for which the district receives state assistance under this
  subchapter shall provide the commissioner with written notice of
  the action.
         (c)  The commissioner may join in the action on behalf of the
  state to protect the state's share in the action.
         (d)  A school district shall use the net proceeds from an
  action brought by the district for the defective design,
  construction, renovation, or improvement of an instructional
  facility financed by bonds for which the district receives state
  assistance under this subchapter to repair the defective design,
  construction, renovation, or improvement of the instructional
  facility on which the action is brought or to replace the facility.
  Section 46.008 applies to the repair.
         (e)  The state's share is state property. The school
  district shall send to the comptroller any portion of the state's
  share not used by the school district to repair the defective
  design, construction, renovation, or improvement of the
  instructional facility on which the action is brought or to replace
  the facility. Section 42.258 applies to the state's share under
  this subsection.
         SECTION 2.06.  Section 2155.502(c), Government Code, is
  amended to read as follows:
         (c)  The commission may not list a multiple award contract on
  a schedule developed under Subsection (a) if the goods or services
  provided by that contract:
               (1)  are available from only one vendor;
               (2)  are telecommunications services, facilities, or
  equipment; [or]
               (3)  are commodity items as defined by Section
  2157.068(a); or
               (4)  are engineering services as described by Section
  1001.003, Occupations Code, or architectural services as described
  by Section 1051.001, Occupations Code.
         SECTION 2.07.  Section 2166.2525, Government Code, is
  amended to read as follows:
         Sec. 2166.2525.  DETERMINATION OF CONTRACTING METHOD. The
  [commission shall adopt rules that determine the circumstances for
  use of each] method of contracting allowed under this subchapter
  for design and construction services is any method provided by
  Chapter 2267. [In developing the rules, the commission shall
  solicit advice and comment from design and construction
  professionals regarding the criteria the commission will use in
  determining which contracting method is best suited for a project.]
         SECTION 2.08.  Subtitle F, Title 10, Government Code, is
  amended by adding Chapter 2267 to read as follows:
  CHAPTER 2267.  CONTRACTING AND DELIVERY PROCEDURES FOR
  CONSTRUCTION PROJECTS
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 2267.001.  DEFINITIONS. In this chapter:
               (1)  "Architect" means an individual registered as an
  architect under Chapter 1051, Occupations Code.
               (2)  "Engineer" means an individual licensed as an
  engineer under Chapter 1001, Occupations Code.
               (3)  "Facility" means, unless otherwise specifically
  provided, an improvement to real property.
               (4)  "General conditions" in the context of a contract
  for the construction, rehabilitation, alteration, or repair of a
  facility means on-site management, administrative personnel,
  insurance, bonds, equipment, utilities, and incidental work,
  including minor field labor and materials.
               (5)  "General contractor" means a sole proprietorship,
  partnership, corporation, or other legal entity that assumes the
  risk for constructing, rehabilitating, altering, or repairing all
  or part of a facility at the contracted price.
               (6)  "Public work contract" means a contract for
  constructing, altering, or repairing a public building or carrying
  out or completing any public work.
         Sec. 2267.002.  APPLICABILITY OF CHAPTER TO GOVERNMENTAL
  ENTITIES ENGAGED IN PUBLIC WORKS. This chapter applies to a public
  work contract made by a governmental entity authorized by state law
  to make a public work contract, including:
               (1)  a state agency as defined by Section 2151.002,
  including the Texas Facilities Commission;
               (2)  a local government, including:
                     (A)  a county;
                     (B)  a municipality;
                     (C)  a school district;
                     (D)  any other special district or authority,
  including a hospital district, a defense base development authority
  established under Chapter 379B, Local Government Code, and a
  conservation and reclamation district, including a river authority
  or any other type of water district; and
                     (E)  any other political subdivision of this
  state;
               (3)  a public junior college as defined by Section
  61.003, Education Code; and
               (4)  a board of trustees governed by Chapter 54,
  Transportation Code.
         Sec. 2267.003.  CONFLICT OF LAWS; REQUIREMENT TO FOLLOW
  PROCEDURES OF THIS CHAPTER. (a)  Except as provided by this
  section, this chapter prevails over any other law relating to a
  public work contract.
         (b)  This chapter does not prevail over a conflicting
  provision in a law relating to contracting with a historically
  underutilized business.
         (c)  This chapter does not prevail over a conflicting
  provision in an ordinance or resolution passed by the governing
  body of a municipally owned electric utility in a procedure
  described by Section 252.022(c), Local Government Code, that:
               (1)  requires the use of competitive bidding or
  competitive sealed proposals; or
               (2)  prescribes a design-build procurement procedure
  that conflicts with this chapter.
         (d)  This chapter does not prevail over any law, rule, or
  regulation relating to competitive bidding or competitive sealed
  proposals for construction services, or to procurement of
  construction services pursuant to Section 49.273, Water Code, that
  applies to a river authority or to a conservation and reclamation
  district created under Section 59, Article XVI, Texas Constitution,
  unless the governing body of the river authority or conservation
  and reclamation district elects to permit this chapter to supersede
  the law, rule, or regulation.
         (e)  This chapter does not prevail over a conflicting
  provision in a regulation that prescribes procurement procedures
  for construction services that is adopted by the governing board of
  a river authority or of a conservation and reclamation district
  created pursuant to Section 59, Article XVI, Texas Constitution,
  that owns electric generation capacity in excess of 2,500
  megawatts, except with respect to Subchapter H.
         Sec. 2267.004.  EXEMPTION: TEXAS DEPARTMENT OF
  TRANSPORTATION; HIGHWAY PROJECTS. This chapter does not apply to:
               (1)  a contract entered into by the Texas Department of
  Transportation; or
               (2)  a project that receives money from a state or
  federal highway fund.
         Sec. 2267.005.  APPLICABILITY: INSTITUTIONS OF HIGHER
  EDUCATION. (a)  In this section, "institution of higher
  education," "public junior college," and "university system" have
  the meanings assigned by Section 61.003, Education Code.
         (b)  This chapter applies to a public junior college but does
  not apply to:
               (1)  any other institution of higher education; or
               (2)  a university system.
         Sec. 2267.006.  EXEMPTION: REGIONAL TOLLWAY AUTHORITIES.
  This chapter does not apply to a regional tollway authority under
  Chapter 366, Transportation Code.
         Sec. 2267.007.  EXEMPTION: CERTAIN LOCAL GOVERNMENT
  CORPORATION IMPROVEMENT PROJECTS.  This chapter does not apply to
  an improvement project undertaken by or through a local government
  corporation exempt from competitive bidding requirements or
  restrictions under Section 431.110, Transportation Code.
         Sec. 2267.008.  EXEMPTION: REGIONAL MOBILITY AUTHORITIES.  
  This chapter does not apply to a regional mobility authority under
  Chapter 370, Transportation Code.
         Sec. 2267.009.  EXEMPTION:  COUNTY TOLL AUTHORITIES.  This
  chapter does not apply to a project of a county under Chapter 284,
  Transportation Code, unless the county adopts an order electing to
  be governed by this chapter for a project to be developed by the
  county under Chapter 284.
         Sec. 2267.010.  EXEMPTION:  COORDINATED COUNTY
  TRANSPORTATION AUTHORITY.  This chapter does not apply to a
  coordinated county transportation authority under Chapter 460,
  Transportation Code.
  [Sections 2267.011-2267.050 reserved for expansion]
  SUBCHAPTER B. GENERAL POWERS AND DUTIES
         Sec. 2267.051.  RULES. A governmental entity may adopt
  rules as necessary to implement this chapter.
         Sec. 2267.052.  NOTICE REQUIREMENTS. (a)  A governmental
  entity shall advertise or publish notice of requests for bids,
  proposals, or qualifications in a manner prescribed by law.
         (b)  For a contract entered into by a governmental entity
  under a method provided by this chapter, the governmental entity
  shall publish notice of the time and place the bid or proposal or
  request for qualifications will be received and opened in a manner
  prescribed by law.
         (c)  For a contract entered into by a municipality, river
  authority, conservation and reclamation district created pursuant
  to Section 59, Article XVI, Texas Constitution, and located in a
  county with a population of more than 250,000, or defense base
  development authority under any of the methods provided by this
  chapter, the municipality, river authority, conservation and
  reclamation district created pursuant to Section 59, Article XVI,
  Texas Constitution, and located in a county with a population of
  more than 250,000, or defense base development authority shall
  publish notice of the time and place the bids or proposals, or the
  responses to a request for qualifications, will be received and
  opened.  The notice must be published in a newspaper of general
  circulation in the county in which the defense base development
  authority's or municipality's central administrative office is
  located or the county in which the greatest amount of the river
  authority's or such conservation and reclamation district's
  territory is located once each week for at least two weeks before
  the deadline for receiving bids, proposals, or responses.  If there
  is not a newspaper of general circulation in that county, the notice
  shall be published in a newspaper of general circulation in the
  county nearest the county seat of the county in which the defense
  base development authority's or municipality's central
  administrative office is located or the county in which the
  greatest amount of the river authority's or such conservation and
  reclamation district's territory is located.  In a two-step
  procurement process, the time and place the second step bids,
  proposals, or responses will be received are not required to be
  published separately.
         (d)  For a contract entered into by a county under any of the
  methods provided by this chapter, the county shall publish notice
  of the time and place the bids or proposals, or the responses to a
  request for qualifications, will be received and opened. The
  notice must be published in a newspaper of general circulation in
  the county once each week for at least two weeks before the deadline
  for receiving bids, proposals, or responses. If there is not a
  newspaper of general circulation in the county, the notice shall
  be:
               (1)  posted at the courthouse door of the county; and
               (2)  published in a newspaper of general circulation in
  the nearest county.
         Sec. 2267.053.  DELEGATION OF AUTHORITY. (a)  The governing
  body of a governmental entity may delegate its authority under this
  chapter regarding an action authorized or required by this chapter
  to a designated representative, committee, or other person.
         (b)  The governmental entity shall provide notice of the
  delegation, the limits of the delegation, and the name or title of
  each person designated under Subsection (a) by rule or in the
  request for bids, proposals, or qualifications or in an addendum to
  the request.
         Sec. 2267.054.  RIGHT TO WORK. (a)  This section applies to
  a governmental entity when the governmental entity is engaged in:
               (1)  procuring goods or services under this chapter;
               (2)  awarding a contract under this chapter; or
               (3)  overseeing procurement or construction for a
  public work or public improvement under this chapter.
         (b)  In engaging in an activity to which this section
  applies, a governmental entity:
               (1)  may not consider whether a person is a member of or
  has another relationship with any organization; and
               (2)  shall ensure that its bid specifications and any
  subsequent contract or other agreement do not deny or diminish the
  right of a person to work because of the person's membership or
  other relationship status with respect to an organization.
         Sec. 2267.055.  CRITERIA TO CONSIDER. (a)  In determining
  the award of a contract under this chapter, the governmental entity
  may consider:
               (1)  the price;
               (2)  the offeror's experience and reputation;
               (3)  the quality of the offeror's goods or services;
               (4)  the impact on the ability of the governmental
  entity to comply with rules relating to historically underutilized
  businesses;
               (5)  the offeror's safety record;
               (6)  the offeror's proposed personnel;
               (7)  whether the offeror's financial capability is
  appropriate to the size and scope of the project; and
               (8)  any other relevant factor specifically listed in
  the request for bids, proposals, or qualifications.
         (b)  In determining the award of a contract under this
  chapter, the governmental entity shall:
               (1)  consider and apply any existing laws, including
  any criteria, related to historically underutilized businesses;
  and
               (2)  consider and apply any existing laws, rules, or
  applicable municipal charters, including laws applicable to local
  governments, related to the use of women, minority, small, or
  disadvantaged businesses.
         Sec. 2267.056.  USING METHOD OTHER THAN COMPETITIVE BIDDING
  FOR CONSTRUCTION SERVICES; EVALUATION OF PROPOSALS; CRITERIA.
  (a)  The governing body of a governmental entity that considers a
  construction contract using a method authorized by this chapter
  other than competitive bidding must, before advertising, determine
  which method provides the best value for the governmental entity.
         (b)  The governmental entity shall base its selection among
  offerors on applicable criteria listed for the particular method
  used. The governmental entity shall publish in the request for
  proposals or qualifications the criteria that will be used to
  evaluate the offerors, and the applicable weighted value for each
  criterion.
         (c)  The governmental entity shall document the basis of its
  selection and shall make the evaluations public not later than the
  seventh day after the date the contract is awarded.
         Sec. 2267.057.  ARCHITECT OR ENGINEER SERVICES. (a)  An
  architect or engineer required to be selected or designated under
  this chapter has full responsibility for complying with Chapter
  1051 or 1001, Occupations Code, as applicable.
         (b)  If the selected or designated architect or engineer is
  not a full-time employee of the governmental entity, the
  governmental entity shall select the architect or engineer on the
  basis of demonstrated competence and qualifications as provided by
  Section 2254.004.
         Sec. 2267.058.  USE OF OTHER PROFESSIONAL SERVICES.
  (a)  Independently of the contractor, construction
  manager-at-risk, or design-build firm, the governmental entity
  shall provide or contract for the construction materials
  engineering, testing, and inspection services and the verification
  testing services necessary for acceptance of the facility by the
  governmental entity.
         (b)  The governmental entity shall select the services for
  which it contracts under this section in accordance with Section
  2254.004.
         Sec. 2267.059.  SEALED BIDS, PROPOSALS, OR QUALIFICATIONS
  REQUIRED. A person who submits a bid, proposal, or qualification to
  a governmental entity shall seal it before delivery.
  [Sections 2267.060-2267.100 reserved for expansion]
  SUBCHAPTER C. COMPETITIVE BIDDING METHOD
         Sec. 2267.101.  CONTRACTS FOR FACILITIES:  COMPETITIVE
  BIDDING. (a)  In this chapter, "competitive bidding" is a
  procurement method by which a governmental entity contracts with a
  contractor for the construction, alteration, rehabilitation, or
  repair of a facility by awarding the contract to the lowest
  responsible bidder.
         (b)  Except as otherwise provided by this chapter or other
  law, a governmental entity may contract for the construction,
  alteration, rehabilitation, or repair of a facility only after the
  entity advertises for bids for the contract in a manner prescribed
  by law, receives competitive bids, and awards the contract to the
  lowest responsible bidder.
         Sec. 2267.102.  USE OF ARCHITECT OR ENGINEER. The
  governmental entity shall select or designate an architect or
  engineer in accordance with Chapter 1051 or 1001, Occupations Code,
  as applicable, to prepare the construction documents required for a
  project to be awarded by competitive bidding.
         Sec. 2267.103.  PREPARATION OF REQUEST. The governmental
  entity shall prepare a request for competitive bids that includes
  construction documents, estimated budget, project scope, estimated
  project completion date, and other information that a contractor
  may require to submit a bid.
         Sec. 2267.104.  EVALUATION OF OFFERORS. The governmental
  entity shall receive, publicly open, and read aloud the names of the
  offerors and their bids.
         Sec. 2267.105.  SELECTION OF OFFEROR. Not later than the
  seventh day after the date the contract is awarded, the
  governmental entity shall document the basis of its selection and
  shall make the evaluations public.
         Sec. 2267.106.  APPLICABILITY OF OTHER COMPETITIVE BIDDING
  LAW TO CERTAIN LOCAL GOVERNMENTAL ENTITIES. Except as otherwise
  specifically provided by this section, Subchapter B, Chapter 271,
  Local Government Code, does not apply to a competitive bidding
  process conducted under this chapter. Sections 271.026,
  271.027(a), and 271.0275, Local Government Code, apply to a
  competitive bidding process conducted under this chapter by a
  governmental entity as defined by Section 271.021, Local Government
  Code.
  [Sections 2267.107-2267.150 reserved for expansion]
  SUBCHAPTER D. COMPETITIVE SEALED PROPOSAL METHOD
         Sec. 2267.151.  CONTRACTS FOR FACILITIES:  COMPETITIVE
  SEALED PROPOSALS. (a)  In this chapter, "competitive sealed
  proposals" is a procurement method by which a governmental entity
  requests proposals, ranks the offerors, negotiates as prescribed,
  and then contracts with a general contractor for the construction,
  rehabilitation, alteration, or repair of a facility.
         (b)  In selecting a contractor through competitive sealed
  proposals, a governmental entity shall follow the procedures
  provided by this subchapter.
         Sec. 2267.152.  USE OF ARCHITECT OR ENGINEER. The
  governmental entity shall select or designate an architect or
  engineer to prepare construction documents for the project.
         Sec. 2267.153.  PREPARATION OF REQUEST. The governmental
  entity shall prepare a request for competitive sealed proposals
  that includes construction documents, selection criteria and the
  weighted value for each criterion, estimated budget, project scope,
  estimated project completion date, and other information that a
  contractor may require to respond to the request.
         Sec. 2267.154.  EVALUATION OF OFFERORS. (a)  The
  governmental entity shall receive, publicly open, and read aloud
  the names of the offerors and any monetary proposals made by the
  offerors.
         (b)  Not later than the 45th day after the date on which the
  proposals are opened, the governmental entity shall evaluate and
  rank each proposal submitted in relation to the published selection
  criteria.
         Sec. 2267.155.  SELECTION OF OFFEROR. (a)  The governmental
  entity shall select the offeror that submits the proposal that
  offers the best value for the governmental entity based on:
               (1)  the selection criteria in the request for proposal
  and the weighted value for those criteria in the request for
  proposal; and
               (2)  its ranking evaluation.
         (b)  The governmental entity shall first attempt to
  negotiate a contract with the selected offeror. The governmental
  entity and its architect or engineer may discuss with the selected
  offeror options for a scope or time modification and any price
  change associated with the modification.
         (c)  If the governmental entity is unable to negotiate a
  satisfactory contract with the selected offeror, the governmental
  entity shall, formally and in writing, end negotiations with that
  offeror and proceed to the next offeror in the order of the
  selection ranking until a contract is reached or all proposals are
  rejected.
  [Sections 2267.156-2267.200 reserved for expansion]
  SUBCHAPTER E. CONSTRUCTION MANAGER-AGENT METHOD
         Sec. 2267.201.  CONTRACTS FOR FACILITIES: CONSTRUCTION
  MANAGER-AGENT. (a)  In this chapter, the "construction
  manager-agent method" is a delivery method by which a governmental
  entity contracts with a construction manager-agent to provide
  consultation or administrative services during the design and
  construction phase and to manage multiple contracts with various
  construction prime contractors.
         (b)  A construction manager-agent is a sole proprietorship,
  partnership, corporation, or other legal entity that serves as the
  agent for the governmental entity by providing construction
  administration and management services described by Subsection (a)
  for the construction, rehabilitation, alteration, or repair of a
  facility.
         (c)  A governmental entity may retain a construction
  manager-agent for assistance in the construction, rehabilitation,
  alteration, or repair of a facility only as provided by this
  subchapter.
         Sec. 2267.202.  CONTRACT PROVISIONS OF CONSTRUCTION
  MANAGER-AGENT. The contract between the governmental entity and
  the construction manager-agent may require the construction
  manager-agent to provide:
               (1)  administrative personnel;
               (2)  equipment necessary to perform duties under this
  subchapter;
               (3)  on-site management; and
               (4)  other services specified in the contract.
         Sec. 2267.203.  LIMITS ON CONSTRUCTION MANAGER-AGENT. A
  construction manager-agent may not:
               (1)  self-perform any aspect of the construction,
  rehabilitation, alteration, or repair of the facility;
               (2)  be a party to a construction subcontract for the
  construction, rehabilitation, alteration, or repair of the
  facility; or
               (3)  provide or be required to provide performance and
  payment bonds for the construction, rehabilitation, alteration, or
  repair of the facility.
         Sec. 2267.204.  FIDUCIARY CAPACITY OF CONSTRUCTION
  MANAGER-AGENT. A construction manager-agent represents the
  governmental entity in a fiduciary capacity.
         Sec. 2267.205.  USE OF ARCHITECT OR ENGINEER. (a)  On or
  before the selection of a construction manager-agent, the
  governmental entity shall select or designate an architect or
  engineer in accordance with Chapter 1051 or 1001, Occupations Code,
  as applicable, to prepare the construction documents for the
  project.
         (b)  The governmental entity's architect or engineer may not
  serve, alone or in combination with another person, as the
  construction manager-agent unless the architect or engineer is
  hired to serve as the construction manager-agent under a separate
  or concurrent selection process conducted in accordance with this
  subchapter. This subsection does not prohibit the governmental
  entity's architect or engineer from providing customary
  construction phase services under the architect's or engineer's
  original professional service agreement in accordance with
  applicable licensing laws.
         (c)  To the extent that the construction manager-agent's
  services are defined as part of the practice of architecture or
  engineering under Chapter 1051 or 1001, Occupations Code, those
  services must be conducted by a person licensed under the
  applicable chapter.
         Sec. 2267.206.  SELECTION OF CONTRACTORS. A governmental
  entity using the construction manager-agent method shall procure,
  in accordance with applicable law and in any manner authorized by
  this chapter, a general contractor or trade contractors who will
  serve as the prime contractor for their specific portion of the work
  and provide performance and payment bonds to the governmental
  entity in accordance with applicable laws.
         Sec. 2267.207.  SELECTION OF CONSTRUCTION MANAGER-AGENT. A
  governmental entity shall select a construction manager-agent on
  the basis of demonstrated competence and qualifications in the same
  manner that an architect or engineer is selected under Section
  2254.004.
         Sec. 2267.208.  INSURANCE. A construction manager-agent
  selected under this subchapter shall maintain professional
  liability or errors and omissions insurance in the amount of at
  least $1 million for each occurrence.
  [Sections 2267.209-2267.250 reserved for expansion]
  SUBCHAPTER F. CONSTRUCTION MANAGER-AT-RISK METHOD
         Sec. 2267.251.  CONTRACTS FOR FACILITIES: CONSTRUCTION
  MANAGER-AT-RISK. (a)  In this chapter, the "construction
  manager-at-risk method" is a delivery method by which a
  governmental entity contracts with an architect or engineer for
  design and construction phase services and contracts separately
  with a construction manager-at-risk to serve as the general
  contractor and to provide consultation during the design and
  construction, rehabilitation, alteration, or repair of a facility.
         (b)  A construction manager-at-risk is a sole
  proprietorship, partnership, corporation, or other legal entity
  that assumes the risk for construction, rehabilitation,
  alteration, or repair of a facility at the contracted price as a
  general contractor and provides consultation to the governmental
  entity regarding construction during and after the design of the
  facility. The contracted price may be a guaranteed maximum price.
         (c)  A governmental entity may use the construction
  manager-at-risk method in selecting a general contractor for the
  construction, rehabilitation, alteration, or repair of a facility
  only as provided by this subchapter.
         Sec. 2267.252.  USE OF ARCHITECT OR ENGINEER. (a)  On or
  before the selection of a construction manager-at-risk, the
  governmental entity shall select or designate an architect or
  engineer to prepare the construction documents for the project.
         (b)  The governmental entity's architect or engineer for a
  project may not serve, alone or in combination with another person,
  as the construction manager-at-risk unless the architect or
  engineer is hired to serve as the construction manager-at-risk
  under a separate or concurrent selection process conducted in
  accordance with this subchapter. This subsection does not prohibit
  the governmental entity's architect or engineer from providing
  customary construction phase services under the architect's or
  engineer's original professional service agreement in accordance
  with applicable licensing laws.
         Sec. 2267.253.  SELECTION PROCESS. (a)  The governmental
  entity shall select the construction manager-at-risk in a one-step
  or two-step process.
         (b)  The governmental entity shall prepare a single request
  for proposals, in the case of a one-step process, and an initial
  request for qualifications, in the case of a two-step process, that
  includes:
               (1)  a statement as to whether the selection process is
  a one-step or two-step process;
               (2)  general information on the project site, project
  scope, schedule, selection criteria and the weighted value for each
  criterion, and estimated budget and the time and place for receipt
  of the proposals or qualifications; and
               (3)  other information that may assist the governmental
  entity in its selection of a construction manager-at-risk.
         (c)  The governmental entity shall state the selection
  criteria in the request for proposals or qualifications.
         (d)  If a one-step process is used, the governmental entity
  may request, as part of the offeror's proposal, proposed fees and
  prices for fulfilling the general conditions.
         (e)  If a two-step process is used, the governmental entity
  may not request fees or prices in step one. In step two, the
  governmental entity may request that five or fewer offerors,
  selected solely on the basis of qualifications, provide additional
  information, including the construction manager-at-risk's proposed
  fee and prices for fulfilling the general conditions.
         (f)  At each step, the governmental entity shall receive,
  publicly open, and read aloud the names of the offerors. At the
  appropriate step, the governmental entity shall also read aloud the
  fees and prices, if any, stated in each proposal as the proposal is
  opened.
         (g)  Not later than the 45th day after the date on which the
  final proposals are opened, the governmental entity shall evaluate
  and rank each proposal submitted in relation to the criteria set
  forth in the request for proposals.
         Sec. 2267.254.  SELECTION OF OFFEROR. (a)  The governmental
  entity shall select the offeror that submits the proposal that
  offers the best value for the governmental entity based on the
  published selection criteria and on its ranking evaluation.
         (b)  The governmental entity shall first attempt to
  negotiate a contract with the selected offeror.
         (c)  If the governmental entity is unable to negotiate a
  satisfactory contract with the selected offeror, the governmental
  entity shall, formally and in writing, end negotiations with that
  offeror and proceed to negotiate with the next offeror in the order
  of the selection ranking until a contract is reached or
  negotiations with all ranked offerors end.
         (d)  Not later than the seventh day after the date the
  contract is awarded, the governmental entity shall make the
  rankings determined under Section 2267.253(g) public.
         Sec. 2267.255.  PERFORMANCE OF WORK. (a)  A construction
  manager-at-risk shall publicly advertise for bids or proposals and
  receive bids or proposals from trade contractors or subcontractors
  for the performance of all major elements of the work other than the
  minor work that may be included in the general conditions.
         (b)  A construction manager-at-risk may seek to perform
  portions of the work itself if:
               (1)  the construction manager-at-risk submits its bid
  or proposal for those portions of the work in the same manner as all
  other trade contractors or subcontractors; and
               (2)  the governmental entity determines that the
  construction manager-at-risk's bid or proposal provides the best
  value for the governmental entity.
         Sec. 2267.256.  REVIEW OF BIDS OR PROPOSALS. (a)  The
  construction manager-at-risk shall review all trade contractor or
  subcontractor bids or proposals in a manner that does not disclose
  the contents of the bid or proposal during the selection process to
  a person not employed by the construction manager-at-risk,
  architect, engineer, or governmental entity. All bids or proposals
  shall be made available to the governmental entity on request and to
  the public after the later of the award of the contract or the
  seventh day after the date of final selection of bids or proposals.
         (b)  If the construction manager-at-risk reviews, evaluates,
  and recommends to the governmental entity a bid or proposal from a
  trade contractor or subcontractor but the governmental entity
  requires another bid or proposal to be accepted, the governmental
  entity shall compensate the construction manager-at-risk by a
  change in price, time, or guaranteed maximum cost for any
  additional cost and risk that the construction manager-at-risk
  incurs because of the governmental entity's requirement that
  another bid or proposal be accepted.
         Sec. 2267.257.  DEFAULT; PERFORMANCE OF WORK. If a selected
  trade contractor or subcontractor defaults in the performance of
  its work or fails to execute a subcontract after being selected in
  accordance with this subchapter, the construction manager-at-risk
  may itself fulfill, without advertising, the contract requirements
  or select a replacement trade contractor or subcontractor to
  fulfill the contract requirements.
         Sec. 2267.258.  PERFORMANCE OR PAYMENT BOND. (a)  If a
  fixed contract amount or guaranteed maximum price has not been
  determined at the time the contract is awarded, the penal sums of
  the performance and payment bonds delivered to the governmental
  entity must each be in an amount equal to the construction budget,
  as specified in the request for proposals or qualifications.
         (b)  The construction manager-at-risk shall deliver the
  bonds not later than the 10th day after the date the construction
  manager-at-risk executes the contract unless the construction
  manager-at-risk furnishes a bid bond or other financial security
  acceptable to the governmental entity to ensure that the
  construction manager will furnish the required performance and
  payment bonds when a guaranteed maximum price is established.
  [Sections 2267.259-2267.300 reserved for expansion]
  SUBCHAPTER G. BUILDING USING DESIGN-BUILD METHOD
         Sec. 2267.301.  CONTRACTS FOR FACILITIES:  DESIGN-BUILD. In
  this chapter, "design-build" is a project delivery method by which
  a governmental entity contracts with a single entity to provide
  both design and construction services for the construction,
  rehabilitation, alteration, or repair of a facility.
         Sec. 2267.302.  APPLICABILITY OF SUBCHAPTER TO BUILDINGS;
  EXCEPTIONS. This subchapter applies only to a facility that is a
  building or an associated structure, including an electric utility
  structure. This subchapter does not apply to:
               (1)  a highway, road, street, bridge, underground
  utility, water supply project, water plant, wastewater plant, water
  and wastewater distribution or conveyance facility, wharf, dock,
  airport runway or taxiway, drainage project, or related type of
  project associated with civil engineering construction; or
               (2)  a building or structure that is incidental to a
  project that is primarily a civil engineering construction project.
         Sec. 2267.303.  CONTRACTS FOR BUILDINGS: DESIGN-BUILD. A
  governmental entity may use the design-build method for the
  construction, rehabilitation, alteration, or repair of a building
  or associated structure only as provided by this subchapter. In
  using that method, the governmental entity shall enter into a
  single contract with a design-build firm for the design and
  construction of the building or associated structure.
         Sec. 2267.304.  DESIGN-BUILD FIRMS. A design-build firm
  under this subchapter must be a sole proprietorship, partnership,
  corporation, or other legal entity or team that includes an
  architect or engineer and a construction contractor.
         Sec. 2267.305.  USE OF ARCHITECT OR ENGINEER AS INDEPENDENT
  REPRESENTATIVE. The governmental entity shall select or designate
  an architect or engineer independent of the design-build firm to
  act as the governmental entity's representative for the duration of
  the project.
         Sec. 2267.306.  PREPARATION OF REQUEST. (a)  The
  governmental entity shall prepare a request for qualifications that
  includes general information on the project site, project scope,
  budget, special systems, selection criteria and the weighted value
  for each criterion, and other information that may assist potential
  design-build firms in submitting proposals for the project.
         (b)  The governmental entity shall also prepare the design
  criteria package that includes more detailed information on the
  project. If the preparation of the design criteria package
  requires architectural or engineering services that constitute the
  practice of architecture within the meaning of Chapter 1051,
  Occupations Code, or the practice of engineering within the meaning
  of Chapter 1001, Occupations Code, those services shall be provided
  in accordance with the applicable law.
         (c)  The design criteria package must include a set of
  documents that provides sufficient information, including criteria
  for selection, to permit a design-build firm to prepare a response
  to the governmental entity's request for qualifications and to
  provide any additional information requested.  The design criteria
  package must specify criteria the governmental entity considers
  necessary to describe the project and may include, as appropriate,
  the legal description of the site, survey information concerning
  the site, interior space requirements, special material
  requirements, material quality standards, conceptual criteria for
  the project, special equipment requirements, cost or budget
  estimates, time schedules, quality assurance and quality control
  requirements, site development requirements, applicable codes and
  ordinances, provisions for utilities, parking requirements, and
  any other requirement.
         (d)  The governmental entity may not require offerors to
  submit architectural or engineering designs as part of a proposal
  or a response to a request for qualifications.
         Sec. 2267.307.  EVALUATION OF DESIGN-BUILD FIRMS. (a)  For
  each design-build firm that responded to the request for
  qualifications, the governmental entity shall evaluate the firm's
  experience, technical competence, and capability to perform, the
  past performance of the firm and members of the firm, and other
  appropriate factors submitted by the firm in response to the
  request for qualifications, except that cost-related or
  price-related evaluation factors are not permitted.
         (b)  Each firm must certify to the governmental entity that
  each architect or engineer that is a member of the firm was selected
  based on demonstrated competence and qualifications, in the manner
  provided by Section 2254.004.
         (c)  The governmental entity shall qualify a maximum of five
  responders to submit proposals that contain additional information
  and, if the governmental entity chooses, to interview for final
  selection.
         (d)  The governmental entity shall evaluate the additional
  information submitted by the offerors on the basis of the selection
  criteria stated in the request for qualifications and the results
  of any interview.
         (e)  The governmental entity may request additional
  information regarding demonstrated competence and qualifications,
  considerations of the safety and long-term durability of the
  project, the feasibility of implementing the project as proposed,
  the ability of the offeror to meet schedules, or costing
  methodology. As used in this subsection, "costing methodology"
  means an offeror's policies on subcontractor markup, definition of
  general conditions, range of cost for general conditions, policies
  on retainage, policies on contingencies, discount for prompt
  payment, and expected staffing for administrative duties. The term
  does not include a guaranteed maximum price or bid for overall
  design or construction.
         (f)  The governmental entity shall rank each proposal
  submitted on the basis of the criteria set forth in the request for
  qualifications.
         Sec. 2267.308.  SELECTION OF DESIGN-BUILD FIRM. (a)  The
  governmental entity shall select the design-build firm that submits
  the proposal offering the best value for the governmental entity on
  the basis of the published selection criteria and on its ranking
  evaluations.
         (b)  The governmental entity shall first attempt to
  negotiate a contract with the selected firm.
         (c)  If the governmental entity is unable to negotiate a
  satisfactory contract with the selected firm, the governmental
  entity shall, formally and in writing, end all negotiations with
  that firm and proceed to negotiate with the next firm in the order
  of the selection ranking until a contract is reached or
  negotiations with all ranked firms end.
         (d)  Not later than the seventh day after the date the
  contract is awarded, the governmental entity shall make the
  rankings determined under Section 2267.307(f) public.
         Sec. 2267.309.  SUBMISSION OF DESIGN AFTER SELECTION. After
  selection of the design-build firm, that firm's architects or
  engineers shall submit all design elements for review and
  determination of scope compliance to the governmental entity or the
  governmental entity's architect or engineer before or concurrently
  with construction.
         Sec. 2267.310.  FINAL CONSTRUCTION DOCUMENTS. The
  design-build firm shall supply a set of construction documents for
  the completed project to the governmental entity at the conclusion
  of construction. The documents must note any changes made during
  construction.
         Sec. 2267.311.  PERFORMANCE OR PAYMENT BOND. (a)  A payment
  or performance bond is not required and may not provide coverage for
  the design portion of the design-build contract with the
  design-build firm under this subchapter.
         (b)  If a fixed contract amount or guaranteed maximum price
  has not been determined at the time the design-build contract is
  awarded, the penal sums of the performance and payment bonds
  delivered to the governmental entity must each be in an amount equal
  to the construction budget, as specified in the design criteria
  package.
         (c)  The design-build firm shall deliver the bonds not later
  than the 10th day after the date the design-build firm executes the
  contract unless the design-build firm furnishes a bid bond or other
  financial security acceptable to the governmental entity to ensure
  that the design-build firm will furnish the required performance
  and payment bonds before construction begins.
  [Sections 2267.312-2267.350 reserved for expansion]
  SUBCHAPTER H. DESIGN-BUILD PROCEDURES FOR CERTAIN CIVIL WORKS
  PROJECTS
         Sec. 2267.351.  DEFINITIONS. In this subchapter:
               (1)  "Civil works project" means:
                     (A)  roads, streets, bridges, utilities, water
  supply projects, water plants, wastewater plants, water
  distribution and wastewater conveyance facilities, desalination
  projects, wharves, docks, airport runways and taxiways, storm
  drainage and flood control projects, or transit projects;
                     (B)  types of projects or facilities related to
  those described by Paragraph (A) and associated with civil
  engineering construction; and
                     (C)  buildings or structures that are incidental
  to projects or facilities that are described by Paragraphs (A) and
  (B) and that are primarily civil engineering construction projects.
               (2)  "Design-build firm" means a partnership,
  corporation, or other legal entity or team that includes an
  engineer and a construction contractor qualified to engage in civil
  works construction in Texas.
               (3)  "Design criteria package" means a set of documents
  that:
                     (A)  provides sufficient information to convey
  the intent, goals, criteria, and objectives of the civil works
  project; and
                     (B)  permits a design-build firm to:
                           (i)  assess the scope of work and the risk
  involved; and
                           (ii)  submit a proposal on the project.
         Sec. 2267.352.  APPLICABILITY. This subchapter applies to a
  governmental entity that:
               (1)  has a population of more than 100,000 within the
  entity's geographic boundary or service area; or
               (2)  is a board of trustees governed by Chapter 54,
  Transportation Code.
         Sec. 2267.353.  CONTRACTS FOR CIVIL WORKS PROJECTS:
  DESIGN-BUILD. (a)  A governmental entity may use the design-build
  method for the construction, rehabilitation, alteration, or repair
  of a civil works project.  In using this method and in entering into
  a contract for the services of a design-build firm, the contracting
  governmental entity and the design-build firm shall follow the
  procedures provided by this subchapter.
         (b)  A contract for a project under this subchapter may cover
  only a single integrated project. A governmental entity may not
  enter into a contract for aggregated projects at multiple
  locations. For purposes of this subsection:
               (1)  if a metropolitan transit authority created under
  Chapter 451, Transportation Code, enters into a contract for a
  project involving a bus rapid transit system created under Chapter
  451, Transportation Code, the bus rapid transit system is a single
  integrated project; and
               (2)  a water treatment plant, including a desalination
  plant, that includes treatment facilities, well fields, and
  pipelines is a single integrated project.
         (c)  A governmental entity shall use the following criteria
  as a minimum basis for determining the circumstances under which
  the design-build method is appropriate for a project:
               (1)  the extent to which the entity can adequately
  define the project requirements;
               (2)  the time constraints for the delivery of the
  project;
               (3)  the ability to ensure that a competitive
  procurement can be held; and
               (4)  the capability of the entity to manage and oversee
  the project, including the availability of experienced personnel or
  outside consultants who are familiar with the design-build method
  of project delivery.
         (d)  A governmental entity shall make a formal finding on the
  criteria described by Subsection (c) before preparing a request for
  qualifications under Section 2267.357.
         Sec. 2267.354.  LIMITATION ON NUMBER OF PROJECTS. (a)  
  Before September 1, 2013:
               (1)  a governmental entity with a population of 500,000
  or more within the entity's geographic boundary or service area
  may, under this subchapter, enter into contracts for not more than
  three projects in any fiscal year; and
               (2)  a municipally owned water utility with a separate
  governing board appointed by the governing body of a municipality
  with a population of 500,000 or more may:
                     (A)  independently enter into a contract for not
  more than one civil works project in any fiscal year; and
                     (B)  enter into contracts for additional civil
  works projects in any fiscal year, but not more than the number of
  civil works projects prescribed by the limit in Subdivision (1) for
  the municipality, provided that:
                           (i)  the additional contracts for the civil
  works projects entered into by the utility under this paragraph are
  allocated to the number of contracts the municipality that appoints
  the utility's governing board may enter under Subdivision (1); and
                           (ii)  the governing body of the municipality
  must approve the contracts.
         (b)  Before September 1, 2015, a governmental entity that has
  a population of 100,000 or more but less than 500,000 or is a board
  of trustees governed by Chapter 54, Transportation Code, may enter
  into contracts under this subchapter for not more than two projects
  in any fiscal year.
         (c)  After the period described by Subsection (a) or (b):
               (1)  a governmental entity with a population of 500,000
  or more within the entity's geographic boundary or service area
  may, under this subchapter, enter into contracts for not more than
  six projects in any fiscal year;
               (2)  a municipally owned water utility with a separate
  governing board appointed by the governing body of a municipality
  with a population of 500,000 or more may:
                     (A)  independently enter into contracts for not
  more than two civil works projects in any fiscal year; and
                     (B)  enter into contracts for additional civil
  works projects in any fiscal year, but not more than the number of
  civil works projects prescribed by the limit in Subdivision (1) for
  the municipality, provided that:
                           (i)  the additional contracts for the civil
  works projects entered into by the utility under this paragraph are
  allocated to the number of contracts the municipality that appoints
  the utility's governing board may enter under Subdivision (1); and
                           (ii)  the governing body of the municipality
  must approve the contracts; and
               (3)  a governmental entity that has a population of
  100,000 or more but less than 500,000 or is a board of trustees
  governed by Chapter 54, Transportation Code, may enter into
  contracts under this subchapter for not more than four projects in
  any fiscal year.
         (d)  For purposes of determining the number of eligible
  projects under this section, a municipally owned water utility with
  a separate governing board appointed by the governing body of the
  municipality is considered part of the municipality.
         Sec. 2267.355.  USE OF ENGINEER. (a)  The governmental
  entity shall select or designate an engineer who is independent of
  the design-build firm to act as its representative for the
  procurement process and for the duration of the work on the civil
  works project. The selected or designated engineer has full
  responsibility for complying with Chapter 1001, Occupations Code.
         (b)  If the engineer is not a full-time employee of the
  governmental entity, the governmental entity shall select the
  engineer on the basis of demonstrated competence and qualifications
  as provided by Section 2254.004.
         Sec. 2267.356.  USE OF OTHER PROFESSIONAL SERVICES.
  (a)  The governmental entity shall provide or contract for,
  independently of the design-build firm, the following services as
  necessary for the acceptance of the civil works project by the
  entity:
               (1)  inspection services;
               (2)  construction materials engineering and testing;
  and
               (3)  verification testing services.
         (b)  The governmental entity shall select the services for
  which it contracts under this section in accordance with Section
  2254.004.
         Sec. 2267.357.  REQUEST FOR QUALIFICATIONS. (a)  The
  governmental entity shall prepare a request for qualifications that
  includes:
               (1)  information on the civil works project site;
               (2)  project scope;
               (3)  project budget;
               (4)  project schedule;
               (5)  criteria for selection under Section 2267.359 and
  the weighting of the criteria; and
               (6)  other information that may assist potential
  design-build firms in submitting proposals for the project.
         (b)  The governmental entity shall also prepare a design
  criteria package as described by Section 2267.358.
         Sec. 2267.358.  CONTENTS OF DESIGN CRITERIA PACKAGE. A
  design criteria package may include, as appropriate:
               (1)  budget or cost estimates;
               (2)  information on the site;
               (3)  performance criteria;
               (4)  special material requirements;
               (5)  initial design calculations;
               (6)  known utilities;
               (7)  capacity requirements;
               (8)  quality assurance and quality control
  requirements;
               (9)  the type, size, and location of structures; and
               (10)  notice of any ordinances, rules, or goals adopted
  by the governmental entity relating to awarding contracts to
  historically underutilized businesses.
         Sec. 2267.359.  EVALUATION OF DESIGN-BUILD FIRMS. (a)  The
  governmental entity shall receive proposals and shall evaluate each
  offeror's experience, technical competence, and capability to
  perform, the past performance of the offeror's team and members of
  the team, and other appropriate factors submitted by the team or
  firm in response to the request for qualifications, except that
  cost-related or price-related evaluation factors are not permitted
  at this stage.
         (b)  Each offeror must:
               (1)  select or designate each engineer that is a member
  of its team based on demonstrated competence and qualifications, in
  the manner provided by Section 2254.004; and
               (2)  certify to the governmental entity that each
  selection or designation was based on demonstrated competence and
  qualifications, in the manner provided by Section 2254.004.
         (c)  The governmental entity shall qualify offerors to
  submit additional information and, if the entity chooses, to
  interview for final selection.
         Sec. 2267.360.  SELECTION OF DESIGN-BUILD FIRM. The
  governmental entity shall select a design-build firm using a
  combination of technical and cost proposals as provided by Section
  2267.361.
         Sec. 2267.361.  PROCEDURES FOR COMBINATION OF TECHNICAL AND
  COST PROPOSALS. (a)  A governmental entity shall request proposals
  from design-build firms identified under Section 2267.359(c). A
  firm must submit a proposal not later than the 180th day after the
  date the governmental entity makes a public request for the
  proposals from the selected firms.  The request for proposals must
  include:
               (1)  a design criteria package;
               (2)  if the project site is identified, a geotechnical
  baseline report or other information that provides the design-build
  firm minimum geotechnical design parameters to submit a proposal;
               (3)  detailed instructions for preparing the technical
  proposal and the items to be included, including a description of
  the form and level of completeness of drawings expected; and
               (4)  the relative weighting of the technical and price
  proposals and the formula by which the proposals will be evaluated
  and ranked.
         (b)  The technical proposal is a component of the proposal
  under this section.
         (c)  Each proposal must include a sealed technical proposal
  and a separate sealed cost proposal.
         (d)  The technical proposal must address:
               (1)  project approach;
               (2)  anticipated problems;
               (3)  proposed solutions to anticipated problems;
               (4)  ability to meet schedules;
               (5)  conceptual engineering design; and
               (6)  other information requested by the governmental
  entity.
         (e)  The governmental entity shall first open, evaluate, and
  score each responsive technical proposal submitted on the basis of
  the criteria described in the request for proposals and assign
  points on the basis of the weighting specified in the request for
  proposals. The governmental entity may reject as nonresponsive any
  firm that makes a significant change to the composition of its firm
  as initially submitted.  The governmental entity shall subsequently
  open, evaluate, and score the cost proposals from firms that
  submitted a responsive technical proposal and assign points on the
  basis of the weighting specified in the request for proposals. The
  governmental entity shall select the design-build firm in
  accordance with the formula provided in the request for proposals.
         Sec. 2267.362.  NEGOTIATION. After selecting the
  highest-ranked design-build firm under Section 2267.361, the
  governmental entity shall first attempt to negotiate a contract
  with the selected firm.  If the governmental entity is unable to
  negotiate a satisfactory contract with the selected firm, the
  entity shall, formally and in writing, end all negotiations with
  that firm and proceed to negotiate with the next firm in the order
  of the selection ranking until a contract is reached or
  negotiations with all ranked firms end.
         Sec. 2267.363.  ASSUMPTION OF RISKS. The governmental
  entity shall assume:
               (1)  all risks and costs associated with:
                     (A)  scope changes and modifications, as
  requested by the governmental entity;
                     (B)  unknown or differing site conditions unless
  otherwise provided by the governmental entity in the request for
  proposals and final contract;
                     (C)  regulatory permitting, if the governmental
  entity is responsible for those risks and costs by law or contract;
  and
                     (D)  natural disasters and other force majeure
  events unless otherwise provided by the governmental entity in the
  request for proposals and final contract; and
               (2)  all costs associated with property acquisition,
  excluding costs associated with acquiring a temporary easement or
  work area associated with staging or construction for the project.
         Sec. 2267.364.  STIPEND AMOUNT FOR UNSUCCESSFUL OFFERORS.
  (a)  Unless a stipend is paid under Subsection (c), the
  design-build firm retains all rights to the work product submitted
  in a proposal. The governmental entity may not release or disclose
  to any person, including the successful offeror, the work product
  contained in an unsuccessful proposal. The governmental entity
  shall return all copies of the proposal and other information
  submitted to an unsuccessful offeror. The governmental entity or
  its agents may not make use of any unique or nonordinary design
  element, technique, method, or process contained in the
  unsuccessful proposal that was not also contained in the successful
  proposal at the time of the original submittal, unless the entity
  acquires a license from the unsuccessful offeror.
         (b)  A violation of this section voids the contract for the
  project entered into by the governmental entity. The governmental
  entity is liable to any unsuccessful offeror, or any member of the
  design-build team or its assignee, for one-half of the cost savings
  associated with the unauthorized use of the work product of the
  unsuccessful offeror. Any interested party may bring an action for
  an injunction, declaratory relief, or damages for a violation of
  this section. A party who prevails in an action under this
  subsection is entitled to reasonable attorney's fees as approved by
  the court.
         (c)  The governmental entity may offer an unsuccessful
  design-build firm that submits a response to the entity's request
  for additional information under Section 2267.361 a stipend for
  preliminary engineering costs associated with the development of
  the proposal. The stipend must be one-half of one percent of the
  contract amount and must be specified in the initial request for
  proposals. If the offer is accepted and paid, the governmental
  entity may make use of any work product contained in the proposal,
  including the techniques, methods, processes, and information
  contained in the proposal. The use by the governmental entity of
  any design element contained in an unsuccessful proposal is at the
  sole risk and discretion of the entity and does not confer liability
  on the recipient of the stipend under this subsection.
         (d)  Notwithstanding other law, including Chapter 552, work
  product contained in an unsuccessful proposal submitted and
  rejected under this subchapter is confidential and may not be
  released unless a stipend offer has been accepted and paid as
  provided by Subsection (c).
         Sec. 2267.365.  COMPLETION OF DESIGN. (a)  Following
  selection of a design-build firm under this subchapter, the firm's
  engineers shall submit all design elements for review and
  determination of scope compliance to the governmental entity before
  or concurrently with construction.
         (b)  An appropriately licensed design professional shall
  sign and seal construction documents before the documents are
  released for construction.
         Sec. 2267.366.  FINAL CONSTRUCTION DOCUMENTS. At the
  conclusion of construction, the design-build firm shall supply to
  the governmental entity a record set of construction documents for
  the project prepared as provided by Chapter 1001, Occupations Code.
         Sec. 2267.367.  PERFORMANCE OR PAYMENT BOND. (a)  A
  performance or payment bond is not required for the portion of a
  design-build contract under this section that includes design
  services only.
         (b)  If a fixed contract amount or guaranteed maximum price
  has not been determined at the time a design-build contract is
  awarded, the penal sums of the performance and payment bonds
  delivered to the governmental entity must each be in an amount equal
  to the construction budget, if commercially available and
  practical, as specified in the design criteria package.
         (c)  If the governmental entity awards a design-build
  contract under Section 2267.362, the design-build firm shall
  deliver the bonds not later than the 10th day after the date the
  design-build firm executes the contract unless the design-build
  firm furnishes a bid bond or other financial security acceptable to
  the governmental entity to ensure that the design-build firm will
  furnish the required performance and payment bonds before the
  commencement of construction.
  [Sections 2267.368-2267.400 reserved for expansion]
  SUBCHAPTER I. JOB ORDER CONTRACTS METHOD
         Sec. 2267.401.  JOB ORDER CONTRACTING. In this chapter,
  "job order contracting" is a procurement method used for
  maintenance, repair, alteration, renovation, remediation, or minor
  construction of a facility when the work is of a recurring nature
  but the delivery times, type, and quantities of work required are
  indefinite.
         Sec. 2267.402.  APPLICABILITY OF SUBCHAPTER TO BUILDINGS;
  EXCEPTIONS. This subchapter applies only to a facility that is a
  building, the design and construction of which is governed by
  accepted building codes, or a structure or land, whether improved
  or unimproved, that is associated with a building. This subchapter
  does not apply to:
               (1)  a highway, road, street, bridge, utility, water
  supply project, water plant, wastewater plant, water and wastewater
  distribution or conveyance facility, wharf, dock, airport runway or
  taxiway, drainage project, or related type of project associated
  with civil engineering construction; or
               (2)  a building or structure that is incidental to a
  project that is primarily a civil engineering construction project.
         Sec. 2267.403.  REQUIREMENTS FOR JOB ORDER CONTRACTS FOR
  FACILITIES. (a)  A governmental entity may award job order
  contracts for the maintenance, repair, alteration, renovation,
  remediation, or minor construction of a facility if:
               (1)  the work is of a recurring nature but the delivery
  times are indefinite; and
               (2)  indefinite quantities and orders are awarded
  substantially on the basis of predescribed and prepriced tasks.
         (b)  The governmental entity shall establish the maximum
  aggregate contract price when it advertises the proposal.
         (c)  The governing body of a governmental entity shall
  approve each job, task, or purchase order that exceeds $500,000.
         Sec. 2267.404.  CONTRACTUAL UNIT PRICES. The governmental
  entity may establish contractual unit prices for a job order
  contract by:
               (1)  specifying one or more published construction unit
  price books and the applicable divisions or line items; or
               (2)  providing a list of work items and requiring the
  offerors to propose one or more coefficients or multipliers to be
  applied to the price book or prepriced work items as the price
  proposal.
         Sec. 2267.405.  COMPETITIVE SEALED PROPOSAL METHOD. (a)  A
  governmental entity may use the competitive sealed proposal method
  under Subchapter D for job order contracts.
         (b)  The governmental entity shall advertise for, receive,
  and publicly open sealed proposals for job order contracts.
         (c)  The governmental entity may require offerors to submit
  information in addition to rates, including experience, past
  performance, and proposed personnel and methodology.
         Sec. 2267.406.  AWARDING OF JOB ORDER CONTRACTS. The
  governmental entity may award job order contracts to one or more job
  order contractors in connection with each solicitation of
  proposals.
         Sec. 2267.407.  USE OF JOB ORDER CONTRACT. A job order
  contract may be used to accomplish work only for the governmental
  entity that awards the contract unless:
               (1)  the solicitation for the job order contract and
  the contract specifically provide for use by other persons; or
               (2)  the governmental entity enters into an interlocal
  agreement that provides otherwise.
         Sec. 2267.408.  USE OF ARCHITECT OR ENGINEER. (a)  If a job
  order contract or an order issued under the contract requires
  architectural or engineering services that constitute the practice
  of architecture within the meaning of Chapter 1051, Occupations
  Code, or the practice of engineering within the meaning of Chapter
  1001, Occupations Code, the governmental entity shall select or
  designate an architect or engineer to prepare the construction
  documents for the project.
         (b)  Subsection (a) does not apply to a job order contract or
  an order issued under the contract for industrialized housing,
  industrialized buildings, or relocatable educational facilities
  subject to and approved under Chapter 1202, Occupations Code, if
  the contractor employs the services of an architect or engineer who
  approves the documents for the project.
         Sec. 2267.409.  JOB ORDER CONTRACT TERM. The base term for a
  job order contract may not exceed two years. The governmental
  entity may renew the contract annually for not more than three
  additional years.
         Sec. 2267.410.  JOB ORDERS. (a)  An order for a job or
  project under a job order contract must be signed by the
  governmental entity's representative and the contractor.
         (b)  The order may be:
               (1)  a fixed price, lump-sum contract based
  substantially on contractual unit pricing applied to estimated
  quantities; or
               (2)  a unit price order based on the quantities and line
  items delivered.
         Sec. 2267.411.  PAYMENT AND PERFORMANCE BONDS. The
  contractor shall provide payment and performance bonds, if required
  by law, based on the amount or estimated amount of any order.
  [Sections 2267.412-2267.450 reserved for expansion]
  SUBCHAPTER J. ENFORCEMENT
         Sec. 2267.451.  VOID CONTRACT. A contract, including a job
  order, entered into in violation of this chapter is voidable as
  against public policy.
         Sec. 2267.452.  DECLARATORY OR INJUNCTIVE RELIEF. (a)  This
  chapter may be enforced through an action for declaratory or
  injunctive relief filed not later than the 10th day after the date
  on which the contract is awarded.
         (b)  This section does not apply to enforcement of a contract
  entered into by a state agency.  In this subsection, "state agency"
  has the meaning assigned by Section 2151.002. The term includes the
  Texas Facilities Commission.
         SECTION 2.09.  Section 252.048, Local Government Code, is
  amended by adding Subsection (c-1) to read as follows:
         (c-1)  If a change order for a public works contract in a
  municipality with a population of 500,000 or more involves a
  decrease or an increase of $100,000 or less, or a lesser amount as
  provided by ordinance, the governing body of the municipality may
  grant general authority to an administrative official of the
  municipality to approve the change order.
         SECTION 2.10.  Section 271.054, Local Government Code, is
  amended to read as follows:
         Sec. 271.054.  COMPETITIVE PROCUREMENT REQUIREMENT. Before
  the governing body of an issuer may enter into a contract requiring
  an expenditure by or imposing an obligation or liability on the
  issuer, or on a subdivision of the issuer if the issuer is a county,
  of more than $50,000, the governing body must:
               (1)  submit the proposed contract to competitive
  procurement; or
               (2)  use an alternate method of project delivery
  authorized by Chapter 2267, Government Code.
         SECTION 2.11.  Section 271.060, Local Government Code, is
  amended by amending Subsection (b) and adding Subsection (c) to
  read as follows:
         (b)  The total price of a contract may not be increased by a
  change order unless provision has been made for the payment of the
  added cost by the appropriation of current funds or bond funds for
  that purpose, by the authorization of the issuance of certificates,
  or by a combination of those procedures.
         (c)  A contract with an [The] original contract price of $1
  million or more may not be increased by more than 25 percent.  If a
  change order for a contract with an original contract price of less
  than $1 million increases the contract amount to $1 million or more,
  subsequent change orders may not increase the revised contract
  amount by more than 25 percent. [The original price may not be
  decreased by more than 25 percent without the consent of the
  contractor.]
         SECTION 2.12.  Section 271.9051(b), Local Government Code,
  is amended to read as follows:
         (b)  In purchasing under this title any real property,
  personal property that is not affixed to real property, or
  services, if a municipality receives one or more competitive sealed
  bids from a bidder whose principal place of business is in the
  municipality and whose bid is within five percent of the lowest bid
  price received by the municipality from a bidder who is not a
  resident of the municipality, the municipality may enter into a
  contract for construction services in an amount [an expenditure] of
  less than $100,000 or a contract for other purchases in an amount of
  less than $500,000 with:
               (1)  the lowest bidder; or
               (2)  the bidder whose principal place of business is in
  the municipality if the governing body of the municipality
  determines, in writing, that the local bidder offers the
  municipality the best combination of contract price and additional
  economic development opportunities for the municipality created by
  the contract award, including the employment of residents of the
  municipality and increased tax revenues to the municipality.
         SECTION 2.13.  Subchapter B, Chapter 223, Transportation
  Code, is amended by adding Section 223.049 to read as follows:
         Sec. 223.049.  CONTRACT WITH LAND OWNER FOR IMPROVING ACCESS
  TO LAND. (a) The department may, without complying with the
  competitive bidding procedures of Subchapter A, contract with an
  owner of land, including a subdivision, adjacent to a highway that
  is part of the state highway system to construct an improvement on
  the highway right-of-way that is directly related to improving
  access to or from the owner's land.
         (b)  An owner that enters into a contract with the department
  under this section must:
               (1)  comply with applicable department design and
  construction standards;
               (2)  comply with all laws, rules, regulations, and
  ordinances, including environmental requirements, that would be
  applicable if the department were performing the work;
               (3)  execute a performance and payment bond in
  accordance with Chapter 2253, Government Code; and
               (4)  make available for inspection by the department
  all books and other records in the possession of the owner that are
  related to the project.
         (c)  State and federal funds may not be used for the design,
  development, financing, or construction of a highway improvement
  under a contract described by this section.
  ARTICLE 3. ADDITIONAL EXEMPTIONS
         SECTION 3.01.  Section 44.901, Education Code, is amended by
  adding Subsection (j) to read as follows:
         (j)  Chapter 2267, Government Code, does not apply to this
  section.
         SECTION 3.02.  Section 51.927, Education Code, is amended by
  adding Subsection (k) to read as follows:
         (k)  Chapter 2267, Government Code, does not apply to this
  section.
         SECTION 3.03.  Section 2166.406, Government Code, is amended
  by adding Subsection (k) to read as follows:
         (k)  Chapter 2267 does not apply to this section.
         SECTION 3.04.  Chapter 302, Local Government Code, is
  amended by adding Section 302.007 to read as follows:
         Sec. 302.007.  EXEMPTION FROM OTHER CONTRACTING LAW.
  Chapter 2267, Government Code, does not apply to this chapter.
         SECTION 3.05.  Subchapter E, Chapter 335, Local Government
  Code, is amended by adding Section 335.077 to read as follows:
         Sec. 335.077.  EXEMPTION FROM CONSTRUCTION CONTRACTING LAW.
  Chapter 2267, Government Code, does not apply to this chapter.
         SECTION 3.06.  Subchapter Q, Chapter 451, Transportation
  Code, is amended by adding Section 451.8025 to read as follows:
         Sec. 451.8025.  EXEMPTION FROM OTHER CONTRACTING LAW.
  Chapter 2267, Government Code, does not apply to this subchapter.
         SECTION 3.07.  Subchapter C, Chapter 452, Transportation
  Code, is amended by adding Section 452.1095 to read as follows:
         Sec. 452.1095.  EXEMPTION FROM OTHER CONTRACTING LAW FOR
  CERTAIN AUTHORITIES. (a)  Chapter 2267, Government Code, does not
  apply to an authority consisting of one subregion governed by a
  subregional board created under Subchapter O.
         (b)  An authority to which this section applies may adopt
  design-build procedures that do not materially conflict with
  Subchapter H, Chapter 2267, Government Code.
         SECTION 3.08.  Section 60.401, Water Code, is amended by
  adding Subsection (d) to read as follows:
         (d)  Chapter 2267, Government Code, does not apply to this
  subchapter.
         SECTION 3.09.  Section 60.452(c), Water Code, is amended to
  read as follows:
         (c)  Chapter 2267, [Subchapter J, Chapter 271, Local]
  Government Code, does not apply to this subchapter.
  ARTICLE 4. CONFORMING AMENDMENTS
         SECTION 4.01.  Section 252.021(a), Local Government Code, is
  amended to read as follows:
         (a)  Before a municipality may enter into a contract that
  requires an expenditure of more than $50,000 from one or more
  municipal funds, the municipality must:
               (1)  comply with the procedure prescribed by this
  subchapter and Subchapter C for competitive sealed bidding or
  competitive sealed proposals;
               (2)  use the reverse auction procedure, as defined by
  Section 2155.062(d), Government Code, for purchasing; or
               (3)  comply with a method described by Chapter 2267,
  Government Code [Subchapter H or J, Chapter 271].
         SECTION 4.02.  Section 252.022(d), Local Government Code, is
  amended to read as follows:
         (d)  This chapter does not apply to an expenditure described
  by Section 252.021(a) if the governing body of a municipality
  determines that a method described by Chapter 2267, Government Code
  [Subchapter H, Chapter 271], provides a better value for the
  municipality with respect to that expenditure than the procedures
  described in this chapter and the municipality adopts and uses a
  method described in that subchapter with respect to that
  expenditure.
         SECTION 4.03.  Sections 252.043(d-1) and (e), Local
  Government Code, are amended to read as follows:
         (d-1)  A contract for construction of a project described by
  Subsection (d) that requires an expenditure of $1.5 million or less
  may be awarded using the competitive sealed proposal procedure
  prescribed by Subchapter D, Chapter 2267, Government Code [Section
  271.116].
         (e)  If the competitive sealed bidding requirement applies
  to the contract for construction of a facility, as that term is
  defined by Section 2267.001, Government Code [Section 271.111], the
  contract must be awarded to the lowest responsible bidder or
  awarded under the method described by Chapter 2267, Government Code
  [Subchapter H, Chapter 271].
         SECTION 4.04.  Sections 262.023(a) and (b-1), Local
  Government Code, are amended to read as follows:
         (a)  Before a county may purchase one or more items under a
  contract that will require an expenditure exceeding $50,000, the
  commissioners court of the county must:
               (1)  comply with the competitive bidding or competitive
  proposal procedures prescribed by this subchapter;
               (2)  use the reverse auction procedure, as defined by
  Section 2155.062(d), Government Code, for purchasing; or
               (3)  comply with a method described by Chapter 2267,
  Government Code [Subchapter H, Chapter 271].
         (b-1)  A county that complies with a method described by
  Chapter 2267, Government Code [Subchapter H, Chapter 271], as
  provided by Subsection (a)(3), to enter into a contract for which
  payment will be made through anticipation notes authorized by
  Chapter 1431, Government Code, may not issue anticipation notes for
  the payment of that contract in an amount that exceeds the lesser
  of:
               (1)  20 percent of the county's budget for the fiscal
  year in which the county enters into the contract; or
               (2)  $10 million.
         SECTION 4.05.  Section 1002.110, Special District Local Laws
  Code, is amended to read as follows:
         Sec. 1002.110.  PUBLIC WORKS CONTRACTS. With respect to the
  construction of public works, the district has all of the powers and
  duties conferred on a municipality under Chapter 2267, [Subchapter
  H, Chapter 271, Local] Government Code, with respect to the
  construction of a facility.  To the extent of any conflict, this
  section prevails over any other law relating to the construction of
  public works engaged in by the district.
         SECTION 4.06.  Section 1024.105(b), Special District Local
  Laws Code, is amended to read as follows:
         (b)  The board may act as a governmental entity under Chapter
  2267, [Subchapter H, Chapter 271, Local] Government Code, for
  purposes of using the procurement procedures authorized by that
  chapter.  For purposes of this subsection, notice under Section
  2267.052(c), [271.112(d), Local] Government Code, must be provided
  by the district in the same manner as provided for a conservation
  and reclamation district created under Section 59, Article XVI,
  Texas Constitution.
         SECTION 4.07.  Section 366.185(d-1), Transportation Code,
  is amended to read as follows:
         (d-1)  The rules adopted under Subsection (d) may not
  materially conflict with the design-build procedures provided by
  Subchapter H, Chapter 2267, [Subchapter J, Chapter 271, Local]
  Government Code, and shall provide materially similar injunctive
  and declaratory action enforcement rights regarding the improper
  disclosure or use of unique or nonordinary information as provided
  in that subchapter.
         SECTION 4.08.  Section 370.314(b), Transportation Code, is
  amended to read as follows:
         (b)  Procedures adopted under Subsection (a) may not
  materially conflict with the design-build procedures provided by
  Subchapter H, Chapter 2267, [Subchapter J, Chapter 271, Local]
  Government Code.
         SECTION 4.09.  Sections 460.406(c) and (d), Transportation
  Code, are amended to read as follows:
         (c)  The board of directors may authorize the negotiation of
  a contract without competitive sealed bids or proposals if:
               (1)  the aggregate amount involved in the contract is
  $25,000 or less;
               (2)  the contract is for construction for which not
  more than one bid or proposal is received;
               (3)  the contract is for services or property for which
  there is only one source or for which it is otherwise impracticable
  to obtain competition;
               (4)  the contract is to respond to an emergency for
  which the public exigency does not permit the delay incident to the
  competitive process;
               (5)  the contract is for personal or professional
  services or services for which competitive bidding is precluded by
  law;
               (6)  the contract, without regard to form and which may
  include bonds, notes, loan agreements, or other obligations, is for
  the purpose of borrowing money or is a part of a transaction
  relating to the borrowing of money, including:
                     (A)  a credit support agreement, such as a line or
  letter of credit or other debt guaranty;
                     (B)  a bond, note, debt sale or purchase, trustee,
  paying agent, remarketing agent, indexing agent, or similar
  agreement;
                     (C)  an agreement with a securities dealer,
  broker, or underwriter; and
                     (D)  any other contract or agreement considered by
  the board of directors to be appropriate or necessary in support of
  the authority's financing activities;
               (7)  the contract is for work that is performed and paid
  for by the day as the work progresses;
               (8)  the contract is for the purchase of land or a
  right-of-way;
               (9)  the contract is for the purchase of personal
  property sold:
                     (A)  at an auction by a state licensed auctioneer;
                     (B)  at a going out of business sale held in
  compliance with Subchapter F, Chapter 17, Business & Commerce Code;
  or
                     (C)  by a political subdivision of this state, a
  state agency, or an entity of the federal government;
               (10)  the contract is for services performed by blind
  or severely disabled persons;
               (11)  the contract is for the purchase of electricity;
  or
               (12)  the contract is one awarded for alternate project
  delivery under Subchapters E, F, and G, Chapter 2267, [Sections
  271.117-271.119, Local] Government Code.
         (d)  For the purposes of entering into a contract authorized
  by Subsection (c)(12), an authority is considered a "governmental
  entity" as described [defined] by Section 2267.002, [271.111,
  Local] Government Code.
  ARTICLE 5. REPEALER
         SECTION 5.01.  The following are repealed:
               (1)  Sections 44.0315, 44.035, 44.036, 44.037, 44.038,
  44.039, 44.040, and 44.041, Education Code;
               (2)  Sections 2166.2511, 2166.2526, 2166.2531,
  2166.2532, 2166.2533, and 2166.2535, Government Code;
               (3)  Subchapters H and J, Chapter 271, Local Government
  Code; and
               (4)  Section 431.101(e), Transportation Code.
  ARTICLE 6. TRANSITION; EFFECTIVE DATE
         SECTION 6.01.  (a)  The changes in law made by this Act apply
  only to a contract or construction project for which a governmental
  entity first advertises or otherwise requests bids, proposals,
  offers, or qualifications, or makes a similar solicitation, on or
  after the effective date of this Act.
         (b)  A contract or construction project for which a
  governmental entity first advertises or otherwise requests bids,
  proposals, offers, or qualifications, or makes a similar
  solicitation, before the effective date of this Act 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 6.02.  This Act takes effect September 1, 2011.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 628 was passed by the House on May 12,
  2011, by the following vote:  Yeas 145, Nays 1, 2 present, not
  voting; that the House refused to concur in Senate amendments to
  H.B. No. 628 on May 26, 2011, and requested the appointment of a
  conference committee to consider the differences between the two
  houses; and that the House adopted the conference committee report
  on H.B. No. 628 on May 29, 2011, by the following vote:  Yeas 145,
  Nays 0, 1 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 628 was passed by the Senate, with
  amendments, on May 24, 2011, by the following vote:  Yeas 31, Nays
  0
  ; at the request of the House, the Senate appointed a conference
  committee to consider the differences between the two houses; and
  that the Senate adopted the conference committee report on H.B. No.
  628 on May 28, 2011, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor