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.