BILL ANALYSIS


                                                        H.B. 2926
                                                By: Janek (Ellis)
                                      Intergovernmental Relations
                                                         05-17-95
                              Senate Committee Report (Unamended)
BACKGROUND

In recent years, purchasing for governments of large urban counties
has become more complex and ill-suited to the strict parameters of
the competitive bidding process.  If the bid specifications for
certain types of purchases are too generic, it is difficult to
determine whether the lowest bid represents the best value in terms
of reliability, durability, and service or maintenance.  If the bid
specifications are too specific, it is difficult to invite valid
competition and the county opens itself to charges of favoritism
for a brand or vendor.

PURPOSE

As proposed, H.B. 2926 authorizes certain counties to use the
request for proposal purchasing procedures for the purchase of
insurance or high technology items.

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 262.030, Local Government Code, as
follows:

     Sec. 262.030.  New heading:  ALTERNATIVE COMPETITIVE PROPOSAL
     PROCEDURE FOR INSURANCE, HIGH TECHNOLOGY ITEMS, OR OTHER
     ITEMS.  (a)  Authorizes the competitive proposal procedure to
     be used for the purchase of insurance or high technology
     items, except for Subsection (d) of this section.
     
     (b) and (c)  Make no changes.
       
       (d)  Authorizes a county having a population of 2.4 million
       to use the competitive proposal purchasing method authorized
       by this section for the purchase of insurance or high
       technology items.  Authorizes the method to be used to
       purchase other items when the county official who makes
       purchases for the county determines, with the consent of the
       commissioners court, that it is in the best interest of the
       county to make a request for proposals.
       
       SECTION 2.   Emergency clause.
           Effective date: 90 days after adjournment.