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This situation I have:

County wants to contract with this "TeleDoc" service that is supposed to save $$ on Doctor and Emergency Room visits for employees.

Proposed Contract is for an initial one year term that auto-renews. Contract can be terminated by either party with 60 days advanced notice.

I know the Texas Constitution prohibits County governments from pledging tax revenues beyond the current fiscal year.

Would this contract violate that provision? My thought is that since you can opt out of the auto-renewal, you are not in violation of the constitutional provision. Any guidance would be appreciated.
 
Posts: 63 | Location: Henderson, Texas, United States | Registered: December 02, 2011Reply With QuoteReport This Post
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That is how I have always looked at it.
 
Posts: 63 | Location: Midland, TX | Registered: September 09, 2004Reply With QuoteReport This Post
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I believe that you are technically correct. The "auto renewal" provisions provide a legal fiction so that we can work with companies, especially utilities, that would otherwise not give us the time of day. Even the Tyler Technologies contract which we are mandated to sign for e-filing falls into this, as do software contracts.


Lisa L. Peterson
Nolan County Attorney
 
Posts: 736 | Location: Sweetwater TX | Registered: January 30, 2001Reply With QuoteReport This Post
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