SRC-JEC, TJG C.S.H.B. 2493 78(R)BILL ANALYSIS


Senate Research CenterC.S.H.B. 2493
78R16559 AKH-D
By: Isett (Duncan) 
Administration
5/16/2003
Committee Report (Substituted)

DIGEST AND PURPOSE 

The 76th Texas Legislature amended the Local Government Code to allow
smaller cities and counties to consider the location of a bidder's place
of business when purchasing goods and property, allowing some preference
in purchasing from local businesses when the difference between the
local's bid and the non-local lowest bid is three percent or less.
C.S.H.B. 2493 expands that discretion for municipalities and school
districts to include the purchase of services, and increases the amount of
allowable difference between the local and non-local bid to five percent. 

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 271.905(a) and (b), Local Government Code, as
follows: 

(a) Defines "local government."

(b) Authorizes a local government, in purchasing under this title any real
property, personal property not affixed to real property, or services
other than professional services, if the local government receives one or
more bids from a bidder whose principal place of business is in the local
government and whose bid is within five, rather than three, percent of the
lowest bid price received from a bidder who is not a resident of the local
government, to enter into a contract with the lowest bidder, or the bidder
whose principal place of business is in the local government if certain
conditions are met. 

SECTION 2.  Amends Section 44.031, Education Code, by adding Subsection
(b-1), to authorize a school district, in awarding a contract using a
method described under Subsection (a)(1) or (a)(2), to consider a bidder's
or offeror's principal place of business in the manner provided by Section
271.905, Local Government Code. 

SECTION 3.  Amends Section 44.033, Education Code, by amending Subsection
(c) and adding Subsection (f), as follows: 

 (c)  Makes a conforming change.

(f)  Authorizes a school district, in awarding a contract under this
section, to consider a bidder's principal place of business in the manner
provided by Section 271.905, Local Government Code. 

SECTION  4.  Effective date:  September 1, 2003.
  Makes application of this Act prospective.