Bill Text: TX HB495 | 2011-2012 | 82nd Legislature | Introduced


Bill Title: Relating to competitive bids for water utilities contracts.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-03-22 - Left pending in committee [HB495 Detail]

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