BILL ANALYSIS

 

 

H.B. 3344

By: Isaac

Urban Affairs

Committee Report (Unamended)

 

 

 

BACKGROUND AND PURPOSE

 

The Local Government Code authorizes two or more public entities to create a “public utility agency” to plan, finance, construct, own, operate, or maintain water supply and/or wastewater treatment facilities.  Public utility agencies are required to award a construction contract involving an expenditure of more than $20,000 only on the basis of competitive bids. Current law contains no exception to this requirement for repairs due to unforeseen damage to property or facilities. 

 

H.B.3344 increases the threshold for competitive bidding to $50,000, which is the current threshold for cities and counties, and adds an exception to the bid requirement for a contract necessary because of unforeseen damage to property, including to public machinery or to other equipment.

 

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 Section 572.059, Local Government Code, as follows:

 

The threshold for competitive bidding for public utility agency construction contracts is increased to $50,000, and an exception to the bid requirement is added for “a contract necessary because of unforeseen damage to property, including to public machinery or to other equipment”.

 

SECTION 2.   Makes application of this Act prospective.

 

SECTION 3.   Effective date:  Takes effect immediately if it receives a vote of two-thirds of all the members elected to each house  If the act does not receive the necessary votes for immediate effect, this act takes effect September 1, 2011.

 

EFFECTIVE DATE

 

Upon passage, or, if the Act does not receive the necessary vote, the Act takes effect September 1, 2011.