SRC-JJJ S.B. 507 76(R)BILL ANALYSIS


Senate Research CenterS.B. 507
By: Duncan
Intergovernmental Relations
7/26/1999
Enrolled


DIGEST 

Currently,  cities with a population of less than 100,000 wishing to enter
into a contract for insurance must comply with the procedures prescribed
for competitive sealed bidding.  S.B. 507 will establish requirements
relating to purchases by municipalities through a competitive bidding
procedure. 

PURPOSE

As enrolled, S.B. 507 sets forth to purchases by municipalities through a
competitive procedure. 

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 Sections 252.021(b) and (c), Local Government Code, to
provide that before a municipality with a population of less than 75,000,
rather than 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 a certain bidding process.  Makes conforming
changes. 

SECTION 2.  Makes application of this Act prospective.

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