BILL ANALYSIS
Senate Research Center S.B. 1068
79R1849 MXM-F By: Madla
AUTHOR'S/SPONSOR'S STATEMENT OF INTENT
The Local Government Code currently requires that county purchases be made through a requisition process. The statutory process requires that an original and three copies be made and disbursed to the officials and the vendor participating in the purchase. Many counties have a purchasing process that uses computers and other technology to make the process more efficient and cost effective.
The current statutory paper requirement means that at some point, the electronic process slows down and becomes a manual process. This is more costly to counties and to vendors who have moved to electronic processes of their own. Some counties have recently updated their financial system and have had to choose between cost and compliance. Other counties are developing financial and purchasing systems and would like to build an efficient process into the system as it is being developed.
As proposed, S.B. 1068 allows counties to develop a system that dispenses with the paper requirement. A county could still create and archive a hard copy requisition, but would not have to do so. Because the requisition of goods and services feeds directly into the county financial system, this bill allows the county auditor to approve and administer the system in a manner similar to the auditor’s current authority for the financial system.
RULEMAKING AUTHORITY
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 113.901, Local Government Code, by amending Subsection (b) and adding Subsection (d) as follows:
(b) Requires the requisition for the purchase of supplies or materials for use by a county to be delivered, rather than made, signed, and approved in triplicate, to the person from whom the purchase is to be made before the purchase is made. Requires one copy, rather than the duplicate copy, to be filed with the county auditor, and one copy, rather than the triplicate copy, to remain with the officer requesting the purchase.
(d) Authorizes a county, subject to the approval of the county auditor, to create and operate an electronic requisition system to perform the functions required by Subsection (a). Requires the county auditor, subject to the approval of the commissioners court, to establish procedures for administering the system.
SECTION 2. Effective date: upon passage or September 1, 2005.