SRC-TNM H.B. 501 75(R) BILL ANALYSIS Senate Research Center H.B. 501 By: Woolley (Lindsay) Intergovernmental Relations 4-28-97 Engrossed DIGEST Currently, Section 791.012, Government Code, authorizes local governments that are parties to an interlocal contract for the performance of a service to apply the local law of a party as agreed by the parties. However, general law cities follow state law with respect to the purchase of goods and services and, as a result, there is no local law to apply. H.B. 501 would clarify the language of Section 791.012, Government Code, as it applies to the law which governs interlocal contracts. PURPOSE As proposed, H.B. 501 outlines provisions regarding the law applicable to interlocal contracts made by local governments. RULEMAKING AUTHORITY This bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 791.012, Government Code, as follows: Sec. 791.012. New heading: LAW APPLICABLE TO CONTRACTING PARTIES. Authorizes local governments that are parties to an interlocal contract for the performance of a service to apply the law applicable to a party as agreed by the parties. Makes conforming and nonsubstantive changes. SECTION 2. Emergency clause. Effective date: upon passage.