JH H.B. 1764 75(R)BILL ANALYSIS


URBAN AFFAIRS
H.B. 1764
By: Jackson
3-19-97
Committee Report (Unamended)



BACKGROUND 

The city competitive bid act requires cities to purchase most goods from
the lowest bidder according to a competitive sealed bid system.  It also
requires that bidders compete on a "level playing field," meaning that bid
specifications cannot be so restrictive as to "spec out" potential
bidders.  Unfortunately, this rule applies even when a city buys goods for
resale to the public at a city concession facility.  Thus, a city golf
course cannot specify a particular brand of golf balls or equipment for
sale in its pro shop, even though their customers prefer that brand and
refuse to buy any other.  There are currently 13 exceptions to the
requirement of awarding to the lowest bidder in the act. 

PURPOSE

HB 1764  would add a 14th exception to the bid statute -- goods purchased
by cities for retail to the public.  This would allow city facility pro
shops to purchase and stock their specific brands of goods that their
customers ask for and will buy. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 252.022 of the Local Government Code by adding
subdivision (a)14) as an exception to the competitive bid requirements for
goods bought for sale at retail by municipalities.  

SECTION 2.  Emergency clause.