SRC-JEC H.B. 2863 77(R) BILL ANALYSIS Senate Research Center H.B. 2863 77R10313 PAM-FBy: Farabee (Madla) Intergovernmental Relations 5/9/2001 Engrossed DIGEST AND PURPOSE Legislation passed in 1999 raised from $15,000 to $25,000 the threshold for purchases at which a county must comply with competitive bidding or competitive proposal procedures. However, certain statutes within the Transportation and Local Government codes still make reference to the $15,000 limit for certain expenditures. H.B. 2863 increases the threshold in relevant statutes to $25,000. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 271.054, Local Government Code, to provide that, before the governing body of an issuer may enter into a contract requiring an expenditure by or imposing an obligation or liability on the issuer, or on a subdivision of the issuer if the issuer is a county, of more than $25,000, rather than $15,000, the governing body is required to submit the proposed contract to competitive bidding. SECTION 2. Amends Sections 252.312(b) and (c), Transportation Code, to make conforming changes. SECTION 3. Effective date: upon passage or September 1, 2001.