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.