HBA-ALS H.B. 2878 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2878
By: Maxey
State Affairs
3/23/1999
Introduced



BACKGROUND AND PURPOSE 

Under current law, the General Services Commission (commission) and all
state agencies are required to give purchasing preference to goods that are
produced or grown in this state or offered by Texas bidders if the cost and
quality are equal to out-of-state offerings.  H.B. 2878 requires the
commission and state agencies to give preference to goods and services
offered by a Texas small business over those offered by an entity that is
not a Texas small business if the quality of the goods or services are the
same and the cost is not more than five percent higher. 

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 2155.444(a), Government Code, to make a
conforming change by including an exception to the provision requiring the
General Services Commission (commission) and all state agencies making
purchases of agricultural goods to give preference to those produced or
grown in this state or offered by Texas bidders in a specified manner.
Makes nonsubstantive changes. 

SECTION 2.  Amends Subchapter H, Chapter 2155, Government Code, by adding
2155.4441, as follows: 

Sec. 2155.4441.  PREFERENCE TO PRODUCTS AND SERVICES OFFERED BY TEXAS SMALL
BUSINESSES.  (a) Defines "agricultural products" and "Texas small
business."  

(b) Requires the commission and each state agency, when purchasing or
leasing a product, including an agricultural product, or contracting for a
service, to purchase or lease a product or contract for a service offered
by a Texas small business, instead of one offered by an entity that is not
a Texas small business if certain factors are met relating to the cost and
the quality of the product or service of the Texas small business. 

SECTION 3.Effective date: September 1, 1999. 
  Makes application of this Act prospective.

SECTION 4. Emergency clause.