BILL ANALYSIS

H.B. 2573

By: Gonzalez Toureilles

County Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Raising the minimum amount for when a competitive bidding procedure is required would provide greater flexibility for a county government in the purchasing process and reduce some of the expenses involved for purchases that fall within the expanded range.

H.B. 2573 amends the Local Government Code to raise the minimum purchase expenditure from $25,000 to $50,000 for when a competitive bidding procedure is required to be used by a local governmental entity for certain purchases. The minimum expenditure amount for a contract for construction, repair, or renovation of a structure, road, highway, or other improvement or addition to real property would remain at $25,000 for a governmental entity other than a county, but would change to $50,000 for a county.

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

H.B. 2573 amends the Local Government Code to increase from $25,000 to $50,000 the threshold amount above which a county's expenditure for a purchase from a small, sole-source supplier is subject to competitive bidding requirements. The bill increases from $25,000 to $50,000 the threshold amount above which a contract expenditure by a county is subject to specific procurement procedures. The bill increases from $25,000 to $50,000 the threshold amount above which a county expenditure on a contract for the construction, repair, or renovation of a structure, road, highway, or other improvement or addition to real property is subject to competitive bidding procedures. The bill increases from $25,000 to $50,000 the threshold amount above which a purchasing contract entered into by the governing board of a crime control and prevention district is subject to competitive bidding procedures.

EFFECTIVE DATE

September 1, 2009.