BILL ANALYSIS
        

H.B. 211
By: Brown, Fred
Urban Affairs
Committee Report (Unamended)



BACKGROUND AND PURPOSE

House Bill 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.  Chapter 252 comprises the following
subchapters: 

Subchapter A.  General Provisions.
Subchapter B.  Competitive Bidding or Competitive Proposals Required.
Subchapter C.  Procedures.
Subchapter D.  Enforcement.

H.B. 211 amends   252.021, in subchapter B, which contains the requirement
for bidding over $25,000.  Under current law,   252.021, cities 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, cities over 75,000 may employ a competitive sealed
proposal procedure for insurance purchases.  H.B. 211 likewise lowers the
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. 

ANALYSIS

SECTION 1. Amends Local Government Code   252.021(b), (c) to require
cities under 25,000 population to competitively purchase insurance that
requires an expenditure exceeding $5,000, and to allow cities with a
population of 25,000 or more to purchase insurance with a competitive
sealed proposal procedure.  

SECTION 2. Prospective application.

SECTION 3. Effective date.

EFFECTIVE DATE:  Upon passage, or, if the Act does not receive the
necessary vote, the Act takes effect September 1, 2003. 








H.B. 211 78 (R)