| TO: |  Honorable Tom  Craddick, Speaker of the House, House of Representatives   | 
| FROM: |  John S. O'Brien, Director, Legislative Budget Board  | 
| IN RE: | HB3517 by Creighton (Relating to competitive purchasing requirements for local governments. ), As Passed 2nd House  | 
The bill would amend the Local Government Code to remove restrictions on municipalities of a certain population size regarding the purchase of insurance. In addition, the bill would authorize a municipality to use the competitive sealed proposal procedure for the purchase of goods or services. A municipality would be required to determine the best value for the municipality if it were to consider a method of purchasing other than sealed bid. The bill would also exempt the purchase of a vehicle and equipment repairs from certain purchasing requirements.
The bill would amend the Local Government Code to add a conservation and reclamation district in a county with a population of 250,000 or more to those governmental entities to which the Public Property Finance Act would apply.
The bill would amend the Health and Safety Code to increase from $25,000 to $50,000 the minimum expenditure for certain items or services that would require an emergency service district board to submit to competitive bids.
The bill would take effect September 1, 2007.
| Source Agencies: | 
| LBB Staff: |  JOB, SD, MN, DB 
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