BILL ANALYSIS H.B. 1178 By: Thompson 03-15-95 Committee Report (Unamended) BACKGROUND Cities in Texas are currently required to use the formal competitive sealed bid process when purchasing the multitude of various insurance coverages. Experience with the require sealed bid process leads to the conclusion that cities can better serve the interest of taxpayers by using sealed competitive proposals. Risk management and insurance consultants have advised that it is very difficult to develop specifications for the various coverages that adequately contemplate the ever changing insurance markets. With the ability to negotiate the fine points of items such as coverage limits, deductibles, and exclusions, cities could acquire the best coverage at the best price. Also, it is important to note that Texas counties are authorized by current law to use sealed competitive proposals to acquire insurance coverage. PURPOSE This bill would give cities the authority to purchase insurance coverage using the competitive sealed bidding or competitive sealed proposal process for insurance purchases of $15,000. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS Section 1: Amends Section 252.021, Local Government Code, to delete separate provisions for the purchase of insurance providing that insurance purchases of $15,000 must comply with current state law regarding competitive sealed bidding or competitive sealed proposals. Adds insurance to the list of procurements for which requests for proposals may be used. Section 2: Amends the heading of Section 252.042, Local Government Code, to conform with changes in Section 1 of this bill. Section 3: Emergency Clause. SUMMARY OF COMMITTEE ACTION H.B. 1178 was considered by the committee in a public hearing on March 13, 1995. The following people testified in favor of the bill: Rep. Thompson; Joe Weikerth, representing the City of Houston; and Susan Horton, representing the Texas Municipal League. The following person testified against the bill: George Greanias, representing himself. The bill was reported favorably with the recommendation that it do pass and be printed, by a record vote of 6 ayes, 2 nays, 0 pnv, and 1 absent.