SRC-EPT H.B. 211 78(R)    BILL ANALYSIS


Senate Research CenterH.B. 211
78R1329 SMJ-FBy: Brown, Fred (Ogden)
Health & Human Services
4-7-2003
Engrossed

DIGEST AND PURPOSE 

H.B. 211 amends Chapter 252 of the Local Government Code (Purchasing and
Contracting Authority of Municipalities).  Chapter 252 contains the
fundamental requirements that cities seek competitive bids for purchases
over $25,000, with certain exemptions and exceptions.  Chapter 252 makes
it a Class B misdemeanor to violate the competitive biddings requirement.
Other violations of Chapter 252 by city officials and employees may be
prosecuted as a Class C misdemeanor.  H.B. 211 amends Section 252.021, in
Subchapter B, which contains the requirement for bidding over $25,000.
Under current law, Section 252.021, a city with a population under 75,000
must purchase insurance requiring an expenditure of $5,000 or more on a
competitive sealed bid basis.  H.B. 211 would lower that population figure
to 25,000. 

Also under current law, a city with a population over 75,000 may employ a
competitive sealed proposal procedure for insurance purchases.  H.B. 211
likewise lowers the maximum population from 75,000 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 Sections 252.021(b) and (c), Local Government Code, to
decrease the maximum permissable population of certain municipalities
relating to the purchase of insurance through competitive bidding and
proposal procedures from 75,000 to 25,000.    

SECTION 2.  Makes application of this Act prospective.

SECTION 3.  Effective date:  upon passage or September 1, 2003.