GOVERNMENT CODE
 
 
CHAPTER 2252. CONTRACTS WITH GOVERNMENTAL ENTITY
 
 
SUBCHAPTER A. NONRESIDENT BIDDERS
 
 
 
 § 2252.001. DEFINITIONS. In this subchapter: 
  (1) "Governmental contract" means a contract awarded 
by a governmental entity for general construction, an improvement, 
a service, or a public works project or for a purchase of supplies, 
materials, or equipment.
  (2) "Governmental entity" means: 
  (A) the state;  
  (B) a municipality, county, public school 
district, or special-purpose district or authority;
  (C) a district, county, or justice of the peace 
court; 
  (D) a board, commission, department, office, or 
other agency in the executive branch of state government, including 
an institution of higher education as defined by Section 61.003, 
Education Code;
  (E) the legislature or a legislative agency; or  
  (F) the Supreme Court of Texas, the Texas Court 
of Criminal Appeals, a court of appeals, or the State Bar of Texas 
or another judicial agency having statewide jurisdiction.
  (3) "Nonresident bidder" refers to a person who is not 
a resident.  
  (4) "Resident bidder" refers to a person whose 
principal place of business is in this state, including a 
contractor whose ultimate parent company or majority owner has its 
principal place of business in this state.
 
Added by Acts 1993, 73rd Leg., ch. 268, § 1, eff. Sept. 1, 1993. 
 
 
 § 2252.002. AWARD OF CONTRACT TO NONRESIDENT BIDDER. A 
governmental entity may not award a governmental contract to a 
nonresident bidder unless the nonresident underbids the lowest bid 
submitted by a responsible resident bidder by an amount that is not 
less than the amount by which a resident bidder would be required to 
underbid the nonresident bidder to obtain a comparable contract in 
the state in which the nonresident's principal place of business is 
located.
 
Added by Acts 1993, 73rd Leg., ch. 268, § 1, eff. Sept. 1, 1993. 
 
 
 § 2252.003. PUBLICATION OF OTHER STATES' LAWS ON 
CONTRACTS. (a) The General Services Commission annually shall 
publish in the Texas Register:
  (1) a list showing each state that regulates the award 
of a governmental contract to a bidder whose principal place of 
business is not located in that state; and
  (2) the citation to and a summary of each state's most 
recent law or regulation relating to the evaluation of a bid from 
and award of a contract to a bidder whose principal place of 
business is not located in that state.
 (b) A governmental entity shall use the information 
published under this section to evaluate the bid of a nonresident 
bidder. A governmental entity may rely on information published 
under this section to meet the requirements of Section 2252.002.
 
Added by Acts 1993, 73rd Leg., ch. 268, § 1, eff. Sept. 1, 1993. 
 
 
 § 2252.004. CONTRACT INVOLVING FEDERAL FUNDS. This 
subchapter does not apply to a contract involving federal funds.
 
Added by Acts 1993, 73rd Leg., ch. 268, § 1, eff. Sept. 1, 1993. 
Amended by Acts 2001, 77th Leg., ch. 1420, § 9.011, eff. Sept. 1, 
2001.
 
SUBCHAPTER B. INTEREST ON RETAINED PUBLIC WORKS CONTRACT PAYMENTS
 
 
 
 § 2252.031. DEFINITIONS. In this subchapter: 
  (1) "Governmental entity" means: 
  (A) the state, a county, or a municipality; 
  (B) a department, board, or agency of the state, 
a county, or a municipality;
  (C) a school district or a subdivision of a 
school district; or 
  (D) any other governmental or quasi-governmental 
authority authorized by statute to make a public works contract.
  (2) "Prime contractor" means a person or persons, 
firm, or corporation contracting with a governmental entity for a 
public work.
  (3) "Public works" includes the construction, 
alteration, or repair of a public building or the construction or 
completion of a public work.
  (4) "Public works contract payment" means a payment by 
a governmental entity for the value of labor, material, machinery, 
fixtures, tools, power, water, fuel, or lubricants used or 
consumed, ordered and delivered for use or consumption, or 
specially fabricated for use or consumption but not yet delivered, 
in the direct performance of a public works contract.
  (5) "Retainage" means the part of a public works 
contract payment withheld by a governmental entity to secure 
performance of the contract.
 
Added by Acts 1993, 73rd Leg., ch. 268, § 1, eff. Sept. 1, 1993. 
 
 
 § 2252.032. RETAINAGE. A governmental entity shall: 
  (1) deposit in an interest-bearing account the 
retainage of a public works contract that provides for retainage of 
more than five percent of the periodic contract payment; and
  (2) pay the interest earned on the retainage to the 
prime contractor on completion of the contract.
 
Added by Acts 1993, 73rd Leg., ch. 268, § 1, eff. Sept. 1, 1993. 
 
 
 § 2252.033. EXEMPTIONS. This subchapter does not apply 
to: 
  (1) a public works contract executed before August 31, 
1981; 
  (2) a public works contract in which the total 
contract price estimate at the time of execution of the contract is 
less than $400,000; or
  (3) a public works contract made by the Texas 
Department of Transportation under Subchapter A, Chapter 223, 
Transportation Code.
 
Added by Acts 1993, 73rd Leg., ch. 268, § 1, eff. Sept. 1, 1993. 
Amended by Acts 1997, 75th Leg., ch. 165, § 30.201, eff. Sept. 1, 
1997; Acts 2001, 77th Leg., ch. 1420, § 9.012, eff. Sept. 1, 
2001.