BILL ANALYSIS


                                                        H.B. 1900
                                        By: Turner, S. (Gallegos)
                                                Natural Resources
                                                         05-19-95
                              Senate Committee Report (Unamended)
BACKGROUND

Currently, the port commissions in Texas may make routine purchases
or contracts, without a formal bid process, for amounts less than
$10,000. Because small businesses sometimes have difficulty
competing via a formal bid process, the statewide association of
port commissions believes that there might be an increase in its
contracts if the limit is raised to $25,000.

Most contracts and equipment involved in projects for port
commissions cost over $15,000, and having to go through the
competitive bidding process for every purchase causes unnecessary
delays and loss of revenues to counties where navigation districts
are established.

PURPOSE

As proposed, H.B. 1900 increases the limits on routine purchases
and contracts allowable without the formal bid process.

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 60.403, Water Code, to authorize a port
commission or authorized designated officer of the port
commissioner to make routine purchases or contracts in an amount
not to exceed $25,000, rather than $10,000.

SECTION 2. Amends Section 60.404(a), Water Code, to require notice
to be published, if the materials, supplies, machinery, equipment,
or other items to be purchased or contracted for exceed $25,000,
rather than $15,000.

SECTION 3. Amends Section 60.406(a), Water Code, to require the
port commission of a district or port authority, before a district
or port authority may purchase one or more items under a contract
that will require an expenditure of more than $25,000, rather than
$15,000, to comply with the competitive bidding requirements or
proposal procedures provided by Sections 60.404 and 60.405 of this
code.

SECTION 4. Emergency clause.
           Effective date: upon passage.