SRC-AXB C.S.H.B. 2787 76(R)BILL ANALYSIS


Senate Research CenterC.S.H.B. 2787
76R15976  CAG-DBy: Eiland (Jackson)
Intergovernmental Relations
5/14/1999
Committee Report (Substituted)


DIGEST 

Currently, local governments are required to take a bidder's lowest bid
regardless of the bidder's place of business.  C.S.H.B. 2787 allows
counties to accept bids which are offered by a business whose principal
place of business is within the locality whose bid is within three percent
of the lowest bid price. 

PURPOSE

As proposed, C.S.H.B. 2787 allows counties to accept bids which are offered
by a business whose principal place of business is within the locality
whose bid is  within three percent of the lowest bid price. 

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 Chapter 271Z, Local Government Code, by adding Section
271.905, as follows: 

Sec.  271.905.  CONSIDERATION OF LOCATION OF BIDDER'S PRINCIPAL PLACE OF
BUSINESS.  Defines "local government."  Authorizes a local government, in
purchasing real property or personal property that is not affixed to real
property, to enter into a contract with the lowest bidder or the bidder
whose principal place of business is within the locality, under certain
conditions, if it receives one or more bids from certain bidders whose bids
are within three percent of the lowest bid.  Provides that this section
does not prohibit a local government from rejecting all bids. 

SECTION 2.  Makes application of this Act prospective.

SECTION 3.  Emergency clause.
  Effective date:  upon passage.