Ban
On Reverse Auctions Killed With Drive-By Veto
House Bill 3242 was among 48 bills vetoed by Gov. Rick Perry.
This measure required that a minimum of 10 percent of the
purchases by the Texas Building and Procurement Commission
be done by reverse auction. The Texas Construction Association,
along with the ABC-Texas and the AGC-Texas Building Branch,
worked with the Senate sponsor of the bill, Sen. Craig Estes,
to attach an amendment that would prohibit the use of reverse
auctions for state construction projects. The bill passed
with the amendment intact.
However, the Governor had a concern unrelated to our amendment
and vetoed the bill. The Governor felt that the Building and
Procurement Commission should have the flexibility to use
whatever purchasing method the Commission felt was the best
and most cost effective and not be required to use any one
method.
The Governor also vetoed HB 2493, which would have expanded
the ability of municipalities and school districts to accept
a bid from a local business even though the bid was not the
lowest.
Here is the list of bills vetoed by the Governor. The ones
most directly related to construction also show the governor's
veto proclamation. These bills can also be accessed under
the Legislation tab of the TCA Web site: www.texcon.org.
Vetoed Bills - 2003 Regular Session
HB 32 Relating to certain writs of habeas corpus based
solely on a claim of a time-served credit error.
HB 59 Relating to the offense of aggravated kidnapping,
the punishment for the offense of kidnapping, and the definition
of and punishment for the offense of trafficking in persons.
HB 76 Relating to procedures adopted by a state entity
to ensure an employment preference for veterans.
HB 156 Relating to the grant of the power of eminent
domain to a regional mobility authority.
HB 157 Relating to the powers and duties of a regional
mobility authority.
HB 298 Relating to prohibiting the disclosure of personal
customer information by the Parks and Wildlife Department.
HB 424 Relating to the regulation of certain housing
authorities; providing a penalty.
HB 425 Relating to procedures to help ensure that certain
state agency actions are consistent with the meaning and intent
of applicable legislative enactments.
HB 999 Relating to electronic reporting of political
contributions and expenditures.
HB 1053 Relating to the confidentiality of social security
numbers in certain circumstances.
HB 1232 Relating to the expiration of alcoholic beverage
permits and licenses.
HB 1241 Relating to measures to protect the state from
theft, lost lottery tickets, or other losses incurred by or
in connection with lottery sales agents.
HB 1274 Relating to the procedure for collecting signatures
on a petition filed in connection with a candidate's application
for a place on the ballot.
HB 1344 Relating to the election of an unopposed candidate
for an office of a political subdivision and to omission of
that candidate from the ballot.
HB 1380 Relating to certain products offered in connection
with a consumer loan.
HB 1496 Relating to reduction in benefit fraud and
claim overpayments in unemployment compensation.
HB 1517 Relating to publicizing a list of voters' rights.
HB 1518 Relating to accountability for public school
dropouts and students at risk of dropping out of school and
to the evaluation of school campuses.
HB 1701 Relating to providing a uniform limit on the
population of a county election precinct.
HB 1839 Relating to property in the custody of a pawnbroker;
providing criminal penalties.
HB 2089 Relating to requiring the secretary of state
to publicly post a list of candidate names on the Internet.
HB 2159 Relating to a documented member of the Kickapoo
Traditional Tribe of Texas hunting certain deer.
HB 2295 Relating to municipal contracts regarding public
improvements and purchasing.
Veto Proclamation: A late amendment to House Bill No.
2295 is problematic and lacks the criteria needed to guide
municipalities in establishing and administering a program
similar to the state's Historically Underutilized Business
(HUB) Program. Without criteria needed to certify and verify
minority-owned and women-owned businesses, this bill would
inject ambiguity into the bid selection process and could
undermine the success of the state HUB program.
HB 2361 Relating to the investigation of a firefighter
or police officer in certain municipalities.
HB 2493 Relating to consideration of a bidder's principal
place of business in awarding certain municipal and school
district contracts.
Veto Proclamation: In 1999, the Legislature allowed
certain local governments to avoid purchasing goods from the
lowest bidder and instead to buy from a local business which
came within three percent of the best bid. Current law applies
to municipalities with populations of 200,000 or less that
wish to buy real property or goods from a seller whose principal
place of business is in the municipality. Now, just two sessions
later, House Bill No. 2493 would greatly expand the formerly
limited exception. This bill would allow the local government
to use the exception for services rather than just goods,
increase the size of governments which could circumvent the
lowest bid, further erode taxpayer protection by allowing
local governments to purchase from a local bidder whose bid
is five percent higher than the best bid and would extend
the exception to school districts at a time when expenditures
for schools are already straining local property taxpayers'
ability to pay. With this veto message, I hope to discourage
legislators from further attempts to bypass competitive bid
requirements.
HB 2924 Relating to the addition of territory to a
public improvement district.
HB 3175 Relating to the authority of the comptroller
of public accounts to manage cash flow by transferring available
cash between funds in the custody or under the management
of the comptroller; making an appropriation.
HB 3232 Relating to the collection of costs incurred
by certain municipalities in remedying substandard conditions
on a property.
HB 3242 Relating to the use of the reverse auction
procedure by the Texas Building and Procurement Commission.
Veto Proclamation: House Bill No. 3242 would mandate
that all state agencies use a reverse auction to make 10 percent
of all purchases, other than professional services. I believe
the Texas Building and Procurement Commission, which generally
makes state agency purchases, should have the flexibility
to determine the most efficient and cost effective means of
making purchases.
HB 3441 Relating to a reduction in expenditures of
certain state governmental entities, including changes affecting
the Commission on Human Rights, attorney general's office,
management of certain accounts and funds, and certain election-related
forms.
HB 3554 Relating to motor vehicle inspection facilities
near the border of this state and Mexico.
SB 24 Relating to the creation, administration, powers,
duties, operation, and financing of the Ranch at Clear Fork
Creek Municipal Utility District No. 1; granting the authority
to impose taxes and issue bonds; granting the power of eminent
domain.
SB 147 Relating to the adoption by state agencies of
risk management plans and risk control strategies.
SB 315 Relating to the annexation by certain junior
college districts of territory in a district's service area.
SB 407 Relating to the liability of a governmental
unit for fire or emergency services in a contract or in the
absence of a contract.
SB 463 Relating to rates and insurable property under
the Texas Windstorm Insurance Association.
SB 733 Relating to the purchase by certain local governments
of an item from a local vendor.
SB 827 Relating to creating offenses for abandoning
or endangering an elderly individual or disabled individual
and for failing to provide certain care for a child, elderly
individual, or disabled individual.
SB 970 Relating to the sale or transport of certain
desert plants; providing a penalty.
SB 1154 Relating to the authority and duties of certain
libraries and to library systems in the state.
SB 1504 Relating to the regulation of motor vehicle
sales and the powers and duties of the Motor Vehicle Board
of the Texas Department of Transportation.
SB 1521 Relating to tuition charged by a public institution
of higher education for certain graduate programs.
SB 1526 Relating to collection and use of information
in connection with licensing regarding a retail installment
transaction involving a motor vehicle.
SB 1597 Relating to policies by law enforcement agencies
regarding the arrest of persons for certain offenses.
SB 1601 Relating to unclaimed funds in class actions.
SB 1659 Relating to certain ad valorem tax exemptions,
payments, and refunds.
SB 1705 Relating to the authority of certain taxing
entities to repeal the local sales and use tax exemption for
telecommunications services.
SB 1782 Relating to the precedence of highway access
rules and ordinances of certain counties and municipalities
over highway access management orders of the Texas Transportation
Commission.
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