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)