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.