SRC-MAX H.B. 2179 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 2179
By: Lewis, Ron (Galloway)
Intergovernmental Relations
4-30-97
Engrossed


DIGEST 

Currently, counties are allowed to avoid complying with competitive
bidding requirements when paying for construction or maintenance contracts
from the proceeds from anticipation notes. Anticipation notes, like
certificates of obligation, are considered debt.  There are concerns that
when counties contract for construction, the taxpayers bear the burden
when initial cost estimates are exceeded. This bill requires counties to
comply with competitive bidding requirements in Chapter 271, Local
Government Code, even when financing projects through anticipation notes. 

PURPOSE

As proposed, H.B. 2179 sets forth provisions for competitive bidding in
connection with certain contracts made by counties. 

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 262.023(b), Local Government Code, to provide
that contracts for which payment will be made through anticipation notes
are subject to the competitive bidding provisions of the Certificate of
Obligations Act of 1971 (Subchapter C, Chapter 271) in the same manner as
certificates of obligation. 

SECTION 2. Amends Section 262.024(a). Local Government Code, to provide
that a contract for the purchase of any individual work performed and paid
for by the day, as the work progresses, provided that no individual is
compensated under this subsection for more than 20 working days in any
three-month period is exempted from the requirement established by Section
262.023 under certain conditions. 

SECTION 3. Amends Section 6, Article 717w, V.T.C.S., by adding Subsection
(h), to require a county to comply with the competitive bidding
requirements of Chapter 271C, Local Government Code, in connection with
certain contracts. 

SECTION 4. Effective date:  September 1, 1997.

SECTION 5. Makes application of this Act prospective.

SECTION 6. Emergency clause.