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.