SRC-HRD S.B. 804 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 804
By: Brown
Intergovernmental Relations
3-24-97
As Filed


DIGEST 

Currently, Texas law requires cities to purchase most goods from the
lowest bidder according to a competitive sealed bid system; it also
requires bidders to compete on a "level playing field," meaning that bid
specifications cannot be so restrictive as to restrict potential bidders.
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 the customers prefer that brand and refuse to buy any other.  There
are currently 13 exceptions to the provision requiring cities to purchase
goods from the lowest bidder.  This bill would provide an additional
exception to current law, for goods purchased for subsequent retail sale
by a municipality. 

PURPOSE

As proposed, S.B. 804 provides an exception to provisions requiring
municipalities to purchase goods from the lowest bidder for goods
purchased by a municipality for subsequent retail sale by a municipality. 

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 252.022(a), Local Government Code, to provide
that this chapter does not apply to an expenditure for goods purchased by
a municipality for subsequent retail sale by the municipality. 

SECTION 2. Emergency clause.
  Effective date: upon passage.