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


Senate Research Center   S.B. 507
76R6147 DRH-DBy: Duncan
Intergovernmental Relations
3/23/1999
As Filed


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 would establish requirements
relating to purchases by municipalities through a competitive bidding
procedure. 

PURPOSE

As proposed, S.B. 507 relates 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 Section 252.021, Local Government Code, to require a
municipality to comply with certain procedures for competitive sealed bids,
before the municipality may enter into a contract requiring an expenditure
of more than $5,000, rather than $15,000, from municipal funds. Deletes
text regarding certain municipalities complying with procedures when
entering into a contract for insurance requiring an expenditure of more
than $5,000 from municipal funds.  Makes conforming changes. 

SECTION 2.  Effective date: September 1, 1999.
            Makes application of this Act prospective.

SECTION 3.  Emergency clause.