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.