CHAPTER 252. PURCHASING AND CONTRACTING AUTHORITY OF MUNICIPALITIES

LOCAL GOVERNMENT CODE

TITLE 8. ACQUISITION, SALE, OR LEASE OF PROPERTY

SUBTITLE A. MUNICIPAL ACQUISITION, SALE, OR LEASE OF PROPERTY

CHAPTER 252. PURCHASING AND CONTRACTING AUTHORITY OF

MUNICIPALITIES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 252.001. DEFINITIONS. In this chapter:

(1) "Bond funds" includes money in the treasury received from

the sale of bonds and includes the proceeds of bonds that have

been voted but have not been issued and delivered.

(2) "Component purchases" means purchases of the component parts

of an item that in normal purchasing practices would be purchased

in one purchase.

(3) "Current funds" includes money in the treasury, taxes in the

process of being collected in the current tax year, and all other

revenue that may be anticipated with reasonable certainty in the

current tax year.

(4) "High technology procurement" means the procurement of

equipment, goods, or services of a highly technical nature,

including:

(A) data processing equipment and software and firmware used in

conjunction with data processing equipment;

(B) telecommunications equipment and radio and microwave

systems;

(C) electronic distributed control systems, including building

energy management systems; and

(D) technical services related to those items.

(5) "Planning services" means services primarily intended to

guide governmental policy to ensure the orderly and coordinated

development of the state or of municipal, county, metropolitan,

or regional land areas.

(6) "Separate purchases" means purchases, made separately, of

items that in normal purchasing practices would be purchased in

one purchase.

(7) "Sequential purchases" means purchases, made over a period,

of items that in normal purchasing practices would be purchased

in one purchase.

(8) "Time warrant" includes any warrant issued by a municipality

that is not payable from current funds.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1989, 71st Leg., ch. 1250, Sec. 2, eff. Sept. 1,

1989; Acts 1995, 74th Leg., ch. 207, Sec. 1, eff. May 23, 1995.

Sec. 252.002. MUNICIPAL CHARTER CONTROLS IN CASE OF CONFLICT.

Any provision in the charter of a home-rule municipality that

relates to the notice of contracts, advertisement of the notice,

requirements for the taking of sealed bids based on

specifications for public improvements or purchases, the manner

of publicly opening bids or reading them aloud, or the manner of

letting contracts and that is in conflict with this chapter

controls over this chapter unless the governing body of the

municipality elects to have this chapter supersede the charter.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1993, 73rd Leg., ch. 749, Sec. 5, eff. Sept. 1,

1993; Acts 1993, 73rd Leg., ch. 757, Sec. 7, eff. Sept. 1, 1993.

Sec. 252.003. APPLICATION OF OTHER LAW. The purchasing

requirements of Section 361.426, Health and Safety Code, apply to

municipal purchases made under this chapter.

Added by Acts 1991, 72nd Leg., ch. 303, Sec. 17, eff. Sept. 1,

1991.

SUBCHAPTER B. COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS

REQUIRED

Sec. 252.021. COMPETITIVE REQUIREMENTS FOR PURCHASES. (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 Subchapter H or J, Chapter

271.

(b) A municipality may use the competitive sealed proposal

procedure for the purchase of goods or services, including high

technology items and insurance.

(c) The governing body of a municipality that is considering

using a method other than competitive sealed bidding must

determine before notice is given the method of purchase that

provides the best value for the municipality. The governing body

may delegate, as appropriate, its authority under this subsection

to a designated representative. If the competitive sealed

proposals requirement applies to the contract, the municipality

shall consider the criteria described by Section 252.043(b) and

the discussions conducted under Section 252.042 to determine the

best value for the municipality.

(d) This chapter does not apply to the expenditure of municipal

funds that are derived from an appropriation, loan, or grant

received by a municipality from the federal or state government

for conducting a community development program established under

Chapter 373 if under the program items are purchased under the

request-for-proposal process described by Section 252.042. A

municipality using a request-for-proposal process under this

subsection shall also comply with the requirements of Section

252.0215.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1989, 71st Leg., ch. 1, Sec. 56(b), eff. Aug. 28,

1989; Acts 1993, 73rd Leg., ch. 749, Sec. 1, eff. Sept. 1, 1993;

Acts 1993, 73rd Leg., ch. 757, Sec. 11, eff. Sept. 1, 1993; Acts

1995, 74th Leg., ch. 45, Sec. 1, eff. May 5, 1995; Acts 1997,

75th Leg., ch. 790, Sec. 1, eff. June 17, 1997; Acts 1999, 76th

Leg., ch. 571, Sec. 1, eff. June 18, 1999; Acts 2001, 77th Leg.,

ch. 115, Sec. 1, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch.

436, Sec. 2, eff. May 28, 2001; Acts 2001, 77th Leg., ch. 436,

Sec. 3, eff. May 28, 2001; Acts 2001, 77th Leg., ch. 1409, Sec.

1, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 217, Sec. 1,

eff. June 18, 2003; Acts 2003, 78th Leg., ch. 1276, Sec. 12.003,

eff. Sept. 1, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

434, Sec. 1, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

1213, Sec. 1, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

1272, Sec. 1, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

1272, Sec. 2, eff. September 1, 2007.

Sec. 252.0215. COMPETITIVE BIDDING IN RELATION TO HISTORICALLY

UNDERUTILIZED BUSINESS. A municipality, in making an expenditure

of more than $3,000 but less than $50,000, shall contact at least

two historically underutilized businesses on a rotating basis,

based on information provided by the comptroller pursuant to

Chapter 2161, Government Code. If the list fails to identify a

historically underutilized business in the county in which the

municipality is situated, the municipality is exempt from this

section.

Added by Acts 1993, 73rd Leg., ch. 749, Sec. 3, eff. Sept. 1,

1993. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 17.18, eff.

Sept. 1, 1997; Acts 2001, 77th Leg., ch. 115, Sec. 2, eff. Sept.

1, 2001.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

434, Sec. 2, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

937, Sec. 1.100, eff. September 1, 2007.

Sec. 252.022. GENERAL EXEMPTIONS. (a) This chapter does not

apply to an expenditure for:

(1) a procurement made because of a public calamity that

requires the immediate appropriation of money to relieve the

necessity of the municipality's residents or to preserve the

property of the municipality;

(2) a procurement necessary to preserve or protect the public

health or safety of the municipality's residents;

(3) a procurement necessary because of unforeseen damage to

public machinery, equipment, or other property;

(4) a procurement for personal, professional, or planning

services;

(5) a procurement for work that is performed and paid for by the

day as the work progresses;

(6) a purchase of land or a right-of-way;

(7) a procurement of items that are available from only one

source, including:

(A) items that are available from only one source because of

patents, copyrights, secret processes, or natural monopolies;

(B) films, manuscripts, or books;

(C) gas, water, and other utility services;

(D) captive replacement parts or components for equipment;

(E) books, papers, and other library materials for a public

library that are available only from the persons holding

exclusive distribution rights to the materials; and

(F) management services provided by a nonprofit organization to

a municipal museum, park, zoo, or other facility to which the

organization has provided significant financial or other

benefits;

(8) a purchase of rare books, papers, and other library

materials for a public library;

(9) paving drainage, street widening, and other public

improvements, or related matters, if at least one-third of the

cost is to be paid by or through special assessments levied on

property that will benefit from the improvements;

(10) a public improvement project, already in progress,

authorized by the voters of the municipality, for which there is

a deficiency of funds for completing the project in accordance

with the plans and purposes authorized by the voters;

(11) a payment under a contract by which a developer

participates in the construction of a public improvement as

provided by Subchapter C, Chapter 212;

(12) 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;

(C) by a political subdivision of this state, a state agency of

this state, or an entity of the federal government; or

(D) under an interlocal contract for cooperative purchasing

administered by a regional planning commission established under

Chapter 391;

(13) services performed by blind or severely disabled persons;

(14) goods purchased by a municipality for subsequent retail

sale by the municipality;

(15) electricity; or

(16) advertising, other than legal notices.

(b) This chapter does not apply to bonds or warrants issued

under Subchapter A, Chapter 571.

(c) This chapter does not apply to expenditures by a municipally

owned electric or gas utility or unbundled divisions of a

municipally owned electric or gas utility in connection with any

purchases by the municipally owned utility or divisions of a

municipally owned utility made in accordance with procurement

procedures adopted by a resolution of the body vested with

authority for management and operation of the municipally owned

utility or its divisions that sets out the public purpose to be

achieved by those procedures. This subsection may not be deemed

to exempt a municipally owned utility from any other applicable

statute, charter provision, or ordinance.

(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 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.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1989, 71st Leg., ch. 1, Sec. 47(c), eff. Aug. 28,

1989; Acts 1989, 71st Leg., ch. 1001, Sec. 1, eff. Aug. 28, 1989;

Acts 1991, 72nd Leg., ch. 42, Sec. 1, eff. April 25, 1991; Acts

1993, 73rd Leg., ch. 749, Sec. 7, eff. Sept. 1, 1993; Acts 1993,

73rd Leg., ch. 757, Sec. 9, eff. Sept. 1, 1993; Acts 1995, 74th

Leg., ch. 207, Sec. 2, eff. May 23, 1995; Acts 1995, 74th Leg.,

ch. 746, Sec. 1, eff. Aug. 28, 1995; Acts 1997, 75th Leg., ch.

125, Sec. 1, eff. May 19, 1997; Acts 1997, 75th Leg., ch. 1370,

Sec. 3, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 405, Sec.

41, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 1409, Sec. 2,

eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1420, Sec. 8.290,

eff. Sept. 1, 2001.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

434, Sec. 3, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 3.77(3), eff. April 1, 2009.

Sec. 252.023. EXEMPTIONS FROM REFERENDUM PROVISIONS. The

referendum provisions prescribed by Section 252.045 do not apply

to expenditures that are payable:

(1) from current funds;

(2) from bond funds; or

(3) by time warrants unless the amount of the time warrants

issued by the municipality for all purposes during the current

calendar year exceeds:

(A) $7,500 if the municipality's population is 5,000 or less;

(B) $10,000 if the municipality's population is 5,001 to 24,999;

(C) $25,000 if the municipality's population is 25,001 to

49,999; or

(D) $100,000 if the municipality's population is more than

50,000.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1991, 72nd Leg., ch. 109, Sec. 1, eff. Aug. 26,

1991.

Sec. 252.024. SELECTION OF INSURANCE BROKER. This chapter does

not prevent a municipality from selecting a licensed insurance

broker as the sole broker of record to obtain proposals and

coverages for excess or surplus insurance that provides necessary

coverage and adequate limits of coverage in structuring layered

excess coverages in all areas of risk requiring special

consideration, including public official liability, police

professional liability, and airport liability. The broker may be

retained only on a fee basis and may not receive any other

remuneration from any other source.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

SUBCHAPTER C. PROCEDURES

Sec. 252.041. NOTICE REQUIREMENT. (a) If the competitive

sealed bidding requirement applies to the contract, notice of the

time and place at which the bids will be publicly opened and read

aloud must be published at least once a week for two consecutive

weeks in a newspaper published in the municipality. The date of

the first publication must be before the 14th day before the date

set to publicly open the bids and read them aloud. If no

newspaper is published in the municipality, the notice must be

posted at the city hall for 14 days before the date set to

publicly open the bids and read them aloud.

(b) If the competitive sealed proposals requirement applies to

the contract, notice of the request for proposals must be given

in the same manner as that prescribed by Subsection (a) for the

notice for competitive sealed bids.

(c) If the contract is for the purchase of machinery for the

construction or maintenance of roads or streets, the notice for

bids and the order for purchase must include a general

specification of the machinery desired.

(d) If the governing body of the municipality intends to issue

time warrants for the payment of any part of the contract, the

notice must include a statement of:

(1) the governing body's intention;

(2) the maximum amount of the proposed time warrant

indebtedness;

(3) the rate of interest the time warrants will bear; and

(4) the maximum maturity date of the time warrants.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1991, 72nd Leg., ch. 109, Sec. 2, eff. Aug. 26,

1991; Acts 1993, 73rd Leg., ch. 749, Sec. 4, eff. Sept. 1, 1993;

Acts 1993, 73rd Leg., ch. 757, Sec. 6, eff. Sept. 1, 1993.

Sec. 252.0415. PROCEDURES FOR ELECTRONIC BIDS OR PROPOSALS. (a)

A municipality may receive bids or proposals under this chapter

through electronic transmission if the governing body of the

municipality adopts rules to ensure the identification, security,

and confidentiality of electronic bids or proposals and to ensure

that the electronic bids or proposals remain effectively unopened

until the proper time.

(b) Notwithstanding any other provision of this chapter, an

electronic bid or proposal is not required to be sealed. A

provision of this chapter that applies to a sealed bid or

proposal applies to a bid or proposal received through electronic

transmission in accordance with the rules adopted under

Subsection (a).

Added by Acts 2001, 77th Leg., ch. 1063, Sec. 6, eff. Sept. 1,

2001.

Sec. 252.042. REQUESTS FOR PROPOSALS FOR CERTAIN PROCUREMENTS.

(a) Requests for proposals made under Section 252.021 must

solicit quotations and must specify the relative importance of

price and other evaluation factors.

(b) Discussions in accordance with the terms of a request for

proposals and with regulations adopted by the governing body of

the municipality may be conducted with offerors who submit

proposals and who are determined to be reasonably qualified for

the award of the contract. Offerors shall be treated fairly and

equally with respect to any opportunity for discussion and

revision of proposals. To obtain the best final offers, revisions

may be permitted after submissions and before the award of the

contract.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1989, 71st Leg., ch. 1, Sec. 56(c), eff. Aug. 28,

1989; Acts 1995, 74th Leg., ch. 45, Sec. 2, eff. May 5, 1995.

Sec. 252.043. AWARD OF CONTRACT. (a) If the competitive sealed

bidding requirement applies to the contract for goods or

services, the contract must be awarded to the lowest responsible

bidder or to the bidder who provides goods or services at the

best value for the municipality.

(b) In determining the best value for the municipality, the

municipality may consider:

(1) the purchase price;

(2) the reputation of the bidder and of the bidder's goods or

services;

(3) the quality of the bidder's goods or services;

(4) the extent to which the goods or services meet the

municipality's needs;

(5) the bidder's past relationship with the municipality;

(6) the impact on the ability of the municipality to comply with

laws and rules relating to contracting with historically

underutilized businesses and nonprofit organizations employing

persons with disabilities;

(7) the total long-term cost to the municipality to acquire the

bidder's goods or services; and

(8) any relevant criteria specifically listed in the request for

bids or proposals.

(b-1) In addition to the considerations provided by Subsection

(b), a joint board described by Section 22.074(d), Transportation

Code, that awards contracts in the manner provided by this

chapter may consider, in determining the best value for the

board, the impact on the ability of the board to comply with

laws, rules, and programs relating to contracting with small

businesses, as defined by 13 C.F.R. Section 121.201.

(c) Before awarding a contract under this section, a

municipality must indicate in the bid specifications and

requirements that the contract may be awarded either to the

lowest responsible bidder or to the bidder who provides goods or

services at the best value for the municipality.

(d) Except as provided by Subsection (d-1), the contract must be

awarded to the lowest responsible bidder if the competitive

sealed bidding requirement applies to the contract for

construction of:

(1) highways, roads, streets, bridges, utilities, water supply

projects, water plants, wastewater plants, water and wastewater

distribution or conveyance facilities, wharves, docks, airport

runways and taxiways, drainage projects, or related types of

projects associated with civil engineering construction; or

(2) buildings or structures that are incidental to projects that

are primarily civil engineering construction projects.

(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 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 271.111, the contract must be awarded to the lowest

responsible bidder or awarded under the method described by

Subchapter H, Chapter 271.

(f) The governing body may reject any and all bids.

(g) A bid that has been opened may not be changed for the

purpose of correcting an error in the bid price. This chapter

does not change the common law right of a bidder to withdraw a

bid due to a material mistake in the bid.

(h) If the competitive sealed proposals requirement applies to

the contract, the contract must be awarded to the responsible

offeror whose proposal is determined to be the most advantageous

to the municipality considering the relative importance of price

and the other evaluation factors included in the request for

proposals.

(i) This section does not apply to a contract for professional

services, as that term is defined by Section 2254.002, Government

Code.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1997, 75th Leg., ch. 1370, Sec. 4, eff. Sept. 1,

1997; Acts 2001, 77th Leg., ch. 1409, Sec. 3, eff. Sept. 1, 2001.

Amended by:

Acts 2005, 79th Leg., Ch.

739, Sec. 1, eff. September 1, 2005.

Acts 2007, 80th Leg., R.S., Ch.

428, Sec. 1, eff. June 15, 2007.

Sec. 252.0435. SAFETY RECORD OF BIDDER CONSIDERED. In

determining who is a responsible bidder, the governing body may

take into account the safety record of the bidder, of the firm,

corporation, partnership, or institution represented by the

bidder, or of anyone acting for such a firm, corporation,

partnership, or institution if:

(1) the governing body has adopted a written definition and

criteria for accurately determining the safety record of a

bidder;

(2) the governing body has given notice to prospective bidders

in the bid specifications that the safety record of a bidder may

be considered in determining the responsibility of the bidder;

and

(3) the determinations are not arbitrary and capricious.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 58(b), eff. Aug. 28,

1989.

Sec. 252.0436. CONTRACT WITH PERSON INDEBTED TO MUNICIPALITY.

(a) A municipality by ordinance may establish regulations

permitting the municipality to refuse to enter into a contract or

other transaction with a person indebted to the municipality.

(b) It is not a violation of this chapter for a municipality,

under regulations adopted under Subsection (a), to refuse to

award a contract to or enter into a transaction with an apparent

low bidder or successful proposer that is indebted to the

municipality.

(c) In this section, "person" includes an individual, sole

proprietorship, corporation, nonprofit corporation, partnership,

joint venture, limited liability company, and any other entity

that proposes or otherwise seeks to enter into a contract or

other transaction with the municipality requiring approval by the

governing body of the municipality.

Added by Acts 2003, 78th Leg., ch. 156, Sec. 1, eff. Sept. 1,

2003.

Sec. 252.044. CONTRACTOR'S BOND. (a) If the contract is for

the construction of public works, the bidder to whom the contract

is awarded must execute a good and sufficient bond. The bond must

be:

(1) in the full amount of the contract price;

(2) conditioned that the contractor will faithfully perform the

contract; and

(3) executed, in accordance with Chapter 2253, Government Code,

by a surety company authorized to do business in the state.

(b) Repealed by Acts 1993, 73rd Leg., ch. 865, Sec. 2, eff.

Sept. 1, 1993.

(c) The governing body of a home-rule municipality by ordinance

may adopt the provisions of this section and Chapter 2253,

Government Code, relating to contractors' surety bonds,

regardless of a conflicting provision in the municipality's

charter.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1993, 73rd Leg., ch. 865, Sec. 2, eff. Sept. 1,

1993; Acts 1995, 74th Leg., ch. 76, Sec. 5.95(17), eff. Sept. 1,

1995.

Sec. 252.045. REFERENDUM ON ISSUANCE OF TIME WARRANTS. (a) If,

by the time set for letting a contract under this chapter, a

written petition with the required signatures is filed with the

municipal secretary or clerk requesting the governing body of the

municipality to order a referendum on the question of whether

time warrants should be issued for an expenditure under the

contract, the governing body may not authorize the expenditure or

finally award the contract unless the question is approved by a

majority of the votes received in the referendum. The petition

must be signed by at least 10 percent of the qualified voters of

the municipality whose names appear as property taxpayers on the

municipality's most recently approved tax rolls.

(b) If a petition is not filed, the governing body may finally

award the contract and issue the time warrants. In the absence of

a petition, the governing body may, at its discretion, order the

referendum.

(c) The provisions of Subtitles A and C, Title 9, Government

Code, relating to elections for the issuance of municipal bonds

and to the issuance, approval, registration, and sale of bonds

govern the referendum and the time warrants to the extent those

provisions are consistent with this chapter. However, the time

warrants may mature over a term exceeding 40 years only if the

governing body finds that the financial condition of the

municipality will not permit payment of warrants issued for a

term of 40 years or less from taxes that are imposed

substantially uniformly during the term of the warrants.

(d) This section does not supersede any additional rights

provided by the charter of a special-law municipality and

relating to a referendum.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1999, 76th Leg., ch. 1064, Sec. 38, eff. Sept. 1,

1999.

Sec. 252.046. CIRCUMSTANCES IN WHICH CURRENT FUNDS TO BE SET

ASIDE. If an expenditure under the contract is payable by

warrants on current funds, the governing body of the municipality

by order shall set aside an amount of current funds that will

discharge the principal and interest of the warrants. Those funds

may not be used for any other purpose, and the warrants must be

discharged from those funds and may not be refunded.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 252.047. PAYMENT METHOD FOR CERTAIN CONTRACTS. If the

contract is for the construction of public works or for the

purchase of materials, equipment, and supplies, the municipality

may let the contract on a lump-sum basis or unit price basis as

the governing body of the municipality determines. If the

contract is let on a unit price basis, the information furnished

to bidders must specify the approximate quantity needed, based on

the best available information, but payment to the contractor

must be based on the actual quantity constructed or supplied.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 252.048. CHANGE ORDERS. (a) If changes in plans or

specifications are necessary after the performance of the

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 governing body of the

municipality 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

appropriated for that purpose from available funds or is provided

for by the authorization of the issuance of time warrants.

(c) If a change order involves a decrease or an increase of

$25,000 or less, the governing body may grant general authority

to an administrative official of the municipality to approve the

change orders.

(d) The original contract price may not be increased under this

section by more than 25 percent. The original contract price may

not be decreased under this section by more than 25 percent

without the consent of the contractor.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1995, 74th Leg., ch. 706, Sec. 1, eff. Sept. 1,

1995; Acts 1995, 74th Leg., ch. 746, Sec. 2, eff. Aug. 28, 1995.

Sec. 252.049. CONFIDENTIALITY OF INFORMATION IN BIDS OR

PROPOSALS. (a) Trade secrets and confidential information in

competitive sealed bids are not open for public inspection.

(b) If provided in a request for proposals, proposals shall be

opened in a manner that avoids disclosure of the contents to

competing offerors and keeps the proposals secret during

negotiations. All proposals are open for public inspection after

the contract is awarded, but trade secrets and confidential

information in the proposals are not open for public inspection.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 252.050. LEASE-PURCHASE OR INSTALLMENT PURCHASE OF REAL

PROPERTY. (a) This section applies only to a lease-purchase or

installment purchase of real property financed by the issuance of

certificates of participation.

(b) The governing body of a municipality may not make an

agreement under which the municipality is a lessee in a

lease-purchase of real property or is a purchaser in an

installment purchase of real property unless the governing body

first obtains an appraisal by a qualified appraiser who is not an

employee of the municipality. The purchase price may not exceed

the fair market value of the real property, as shown by the

appraisal.

Added by Acts 1989, 71st Leg., 1st C.S., ch. 10, Sec. 2, eff.

Oct. 18, 1989.

SUBCHAPTER D. ENFORCEMENT

Sec. 252.061. INJUNCTION. If the contract is made without

compliance with this chapter, it is void and the performance of

the contract, including the payment of any money under the

contract, may be enjoined by:

(1) any property tax paying resident of the municipality; or

(2) a person who submitted a bid for a contract for which the

competitive sealed bidding requirement applies, regardless of

residency, if the contract is for the construction of public

works.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

979, Sec. 1, eff. September 1, 2009.

Sec. 252.062. CRIMINAL PENALTIES. (a) A municipal officer or

employee commits an offense if the officer or employee

intentionally or knowingly makes or authorizes separate,

sequential, or component purchases to avoid the competitive

bidding requirements of Section 252.021. An offense under this

subsection is a Class B misdemeanor.

(b) A municipal officer or employee commits an offense if the

officer or employee intentionally or knowingly violates Section

252.021, other than by conduct described by Subsection (a). An

offense under this subsection is a Class B misdemeanor.

(c) A municipal officer or employee commits an offense if the

officer or employee intentionally or knowingly violates this

chapter, other than by conduct described by Subsection (a) or

(b). An offense under this subsection is a Class C misdemeanor.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1989, 71st Leg., ch. 1250, Sec. 3, eff. Sept. 1,

1989.

Sec. 252.063. REMOVAL; INELIGIBILITY. (a) The final conviction

of a municipal officer or employee for an offense under Section

252.062(a) or (b) results in the immediate removal from office or

employment of that person.

(b) For four years after the date of the final conviction, the

removed officer or employee is ineligible:

(1) to be a candidate for or to be appointed or elected to a

public office in this state;

(2) to be employed by the municipality with which the person

served when the offense occurred; and

(3) to receive any compensation through a contract with that

municipality.

(c) This section does not prohibit the payment of retirement or

workers' compensation benefits to the removed officer or

employee.

Added by Acts 1989, 71st Leg., ch. 1250, Sec. 4, eff. Sept. 1,

1989.