Amend SB 507 by substituting the following for Section 1:
      SECTION 1.  Sections 252.021 (b) and (c), Local Government
Code, are amended to read as follows:
      (b) Before a municipality with a population of less than
75,000 <100,000> may enter into a contract for insurance that
requires an expenditure of more than $5,000 from one or more
municipal funds, the municipality must comply with the procedure
prescribed by this chapter for competitive sealed bidding , or with
the following procedure:
            (1) negotiate for the contract for insurance with at
least two insurance agents and one intergovernmental risk pool;
            (2) select the contract for insurance that is lowest
and best; and
            (3) as soon as practicable after making the selection,
publish in a newspaper of general circulation in the municipality
the name and contract amount of the selected insurance carrier or
risk pool and the names of the other entities making a proposal.
      (c) A municipality may use the competitive sealed proposal
procedure only for high technology procurements or, in a
municipality with a population of 75,000 or more <in excess of
100,000>, the purchase of insurance.