HBA-MPA H.B. 1029 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1029
By: Keffer
Urban Affairs
2/17/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, Texas cities with a population of less than 100,000 are required
to solicit sealed bids to provide insurance services valued at over $5,000.
This creates a hardship for many small cities, which do not have the staff
available to review the submitted proposals or work with the complicated
bid process.  Moreover, many small cities prefer to do business locally
with their taxpayers, and current law makes it extremely difficult for
small cities to find local people to go through the bidding process.  H.B.
1029 excludes municipalities of 50,000 or less from the competitive bidding
process for the purchase of insurance under Section 252.021 of the Local
Government Code. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Sections 252.021 (a) and (b), Local Government Code, to
provide that the requirement that a municipality comply with a procedure
requiring competitive sealed bidding or proposals before it can enter into
a contract of more than $15,000, does not apply to the purchase of
insurance by a municipality with a population of 50,000 or less.  Makes a
conforming change. 

SECTION 2.  Emergency clause.
  Effective date: upon passage.