HBA-DMD H.B. 2122 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2122 By: Kuempel County Affairs 7/27/1999 Enrolled BACKGROUND AND PURPOSE Prior to the 76th Legislature, counties with populations greater than 125,000 required competitive bids on expenditures of more than $25,000 that deal with emergency services districts. There was an exception for contracts for emergency services. However, counties with a population less than 125,000 must have solicited bids on expenditures of more than $15,000, without an exception for a contract for emergency services. H.B. 2122 requires the board of emergency commissioners (board) in a county with a population of less than 125,000 to submit an expenditure of more than $25,000 for competitive bids. This bill establishes provisions for bids and provides procedures for the board to follow when receiving fewer than three bids. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 776.074, Health and Safety Code, as follows: Sec. 776.074. New Title: COMPETITIVE BIDS. (a) Requires the board of emergency commissioners (board) to submit an expenditure of more than $25,000, rather than $15,000, for competitive bids for one item or service, or more than one of the same or a similar type of items or services in a fiscal year, rather than for the purchase or lease of items or services. Makes conforming changes. (b) Requires the board to request bids on items to be purchased or leased or services to be performed as provided by this subsection. Requires the board to notify suppliers, vendors, or providers by advertising for bids or by providing at least three suppliers, vendors, or purchasers with written notice by mail of the intended purchase. Provides that the advertisement must be published in accordance with Section 262.025(a) (Competitive Bidding Notice), Local Government Code, if the board decides to advertise for bids. Requires the board, if the board receives fewer than three bids in response to the advertisement, to give written notice directly to at least three suppliers, vendors, or providers of the intended purchase. Requires the board, if three suppliers, vendors, or providers are not available or known to the board, to give written notice by mail directly to each supplier, vendor, or provider known to the board. Deletes the provision that requires the board to notify at least 10 suppliers, vendors, or providers of the item or service required and inform them of bidding procedure. Deletes the provision that authorizes the board to give notice to fewer than 10 suppliers, vendors, or providers, if at least 10 suppliers, vendors, or providers are not available or known to the board. (c) Provides that the advertisement or notice, rather than the notice, must describe the work, rather than service, to be performed. (d) Prohibits the board from preparing restrictive bid specifications. (e) Redesignated from existing Subsection (d). (f) Authorizes the board to reject any bid, rather than any and all bids. Deletes the provision requiring the board to award a contract to the lowest responsible bidder. Redesignated from existing Subsection (e). (g) Redesignated from existing Subsection (f). (h) Sets forth that this section applies to an expenditure of district tax revenues (expenditure) by any party or entity, rather than person or entity, for the purchase of services, vehicles, equipment, or goods. Deletes the provision applying this section to an expenditure by a volunteer fire department. Redesignated from existing Subsection (g). (i) Sets forth that this section does not apply to a contract for fire extinguishment and suppression services, emergency rescue services, or ambulance services. Makes conforming changes. Redesignated from existing Subsection (h). (j) Provides that Subsection (i) does not prohibit the board from soliciting competitive bids for any item, service, or contract listed in Subsection (i). (k) Provides that a contract for a public works project must be administered in accordance with Subchapter B (Competitive Bidding on Certain Public Works Contracts), Chapter 271 (Purchasing and Contracting Authority of Municipalities, Counties, and Certain Other Local Governments), Local Government Code, except as provided by this section. SECTION 2.Makes application of this Act prospective. SECTION 3.Effective date: September 1, 1999. SECTION 4.Emergency clause.