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


Senate Research CenterC.S.S.B. 507
76R9498 DRH-DBy: Duncan
Intergovernmental Relations
3/31/1999
Committee Report (Substituted)


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.  C.S.S.B. 507 would establish requirements
relating to purchases by municipalities through a competitive bidding
procedure. 

PURPOSE

As proposed, C.S.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.

SUMMARY OF COMMITTEE CHANGES

SECTION 1.  

Amends Sections 252.021(b) and (c), Local Government Code, to decrease the
size of the a municipalities to 75,000, from 100,000, which may enter into
certain insurance contracts. Changes the effective date to occur upon
passage.