IMF H.B. 3042 75(R)BILL ANALYSIS


STATE AFFAIRS
H.B. 3042
By: Turner, Sylvester
5-9-97
Committee Report (Amended)



BACKGROUND 

There are numerous non profit organizations that coordinate the purchasing
needs of numerous local governments.  This gives local governments the
ability to increase their purchasing power and thereby earn volume
discounts on goods and services that they would normally have to purchase
at a higher price. 

PURPOSE

As proposed, H.B. 3042 would allow local governments to participate in
partnerships with cooperative organizations and other governmental
entities to increase their buying power.  The bill would waive competitive
bidding requirements for government entities that participate in these
cooperative purchasing programs. 

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 271.102 of the Local Government Code by adding
subsection (d) that would allow a local government to be exempted from
seeking competitive bids if that local government procures its goods and
services under a contract with a non-profit organization that functions as
a cooperative for numerous local governments. 

SECTION 2.  Amends Chapter 2252 of the Government Code by adding
Subchapter D as follows: 

Section 2252.081 defines "Cooperative organizations" and "Governmental
entity." 

Section 2252.082(a) allows a governmental entity to participate in a
cooperative purchasing program with another governmental entity or
cooperative organization. 

Section 2252.082(b) allows a governmental entity participating in a
cooperative purchasing program to sign an agreement with another
participating governmental entity or cooperative organization that: 
 -designates the person on behalf of the governmental entity in regards to
the  program; 
 -determines how payments to another governmental entity, cooperative
organization, or vendor will be made; and  
 -sets governmental entity's responsibility for vendor compliance with the
program. 

Section 2252.083 allows a local government to be exempted from seeking
competitive bids if that local government procures its goods and services
under a contract with a nonprofit organization that functions as a
cooperative for numerous local governments. 

SECTION 3.  Emergency clause.
 
EXPLANATION OF AMENDMENT

Committee amendment no. 1 is intended to clarify and more narrowly define
the kind of non-profit organization that will be performing cooperative
purchasing with state and local governments.  As outlined in the
amendment, the non-profit organizations who will be authorized to perform
this function are those that only procure computers or telecommunications
systems, are set up to serve as an educational resource for local
governments and are chartered to serve government and its policies and
must be governed and controlled by elected and appointed local
governmental officials.  These non-profits must also abide by certain
competitive bidding guidelines utilized by the state.