HBA-NRS C.S.H.B. 1892 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 1892
By: Lewis, Glenn
County Affairs
4/1/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Current law provides that competitive sealed bids must be awarded to the
lowest responsible bidder for a contract with a municipality for goods or
services. However, there is no exact definition of "responsible" in
relation to the competitive sealed bidding process. In 1995, legislation
was enacted which allows school districts to use eight evaluation criteria
in determining the best value to the school district in purchasing under a
sealed bid. In addition, the competitive bidding limit for a municipality
and a crime control and prevention district (district) is set at $15,000.
During the 1999 legislative session, the county bidding limit was increased
from $15,000 to $25,000. C.S.H.B. 1892 increases from $15,000 to $25,000
the maximum amount that a municipality or a district may expend without
being subject to competitive bidding and proposal requirements and sets
forth factors to be considered when determining the best value for a
contract award.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

C.S.H.B. 1892 amends the Local Government Code to increase from $15,000 to
$25,000 the maximum amount that a municipality or the board of directors of
a crime control and prevention district may expend without being subject to
competitive sealed bidding or sealed proposal requirements.  The bill
increases from $15,000 to $25,000 the maximum amount that a municipality
may expend without being subject to the requirement that a municipality
contact at least two historically underutilized businesses on a rotating
basis, based on information provided by the General Services Commission.  

The bill provides that a contract that requires a competitive sealed bid
must be awarded to the bidder who provides goods or services at the best
value for the municipality, rather than the lowest responsible bidder. The
bill authorizes the municipality to determine the best value based on
specified factors.  

EFFECTIVE DATE

September 1, 2001.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 1892 modifies the original bill by authorizing a municipality to
also consider the impact on the ability of the municipality to comply with
laws and rules relating to contracting with nonprofit organizations
employing persons with disabilities in determining the best possible value
on a contract for goods or services under competitive sealed bidding.