S.B. 733 78(R)    BILL ANALYSIS


S.B. 733
By: Ratliff
County Affairs
Committee Report (Unamended)



BACKGROUND AND PURPOSE 
Currently, local governments may purchase items under competitive bidding
procedures primarily in three ways: (1) posting an invitation to bid; (2)
purchasing through the state from approved vendors; and (3) purchasing
from a local government cooperative. S.B. 733 allows local governments to
purchase an item from a local vendor without following competitive
purchasing procedures if the vendor's price is equal to or less than the
price provided by the state or cooperative. 

RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS
SECTION 1. Amends Chapter 271Z, Local Government Code, by adding Section
271.907, as 
follows: Sec. 271.907. PURCHASE FROM LOCAL VENDOR. (a) Provides that this
section 
applies only to a local government, as defined by Section 271.081, that is
located in a county 
with a population of 50,000 or less.
(b) Defines "local vendor."
(c) Authorizes a local government to purchase an item from a local vendor
without 
following a competitive purchasing procedure if that vendor's price is
equal to or less 
than the price at which the local government could purchase the item under
a 
government purchasing program of this state such as those described by
Subchapter 
D, F, or G or by Section 2155.504, Government Code (Certain Bids and
Contracts 
Prohibited).
(d) Provides that a purchase under this section satisfies any law
requiring the local 
government to purchase an item under a competitive purchasing procedure.

SECTION 2. Effective date: September 1, 2003.

EFFECTIVE DATE
September 1, 2003