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.