HBA-MPA H.B. 2787 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2787 By: Eiland County Affairs 4/12/1999 Introduced BACKGROUND AND PURPOSE Currently, local governments are required to take the lowest bid of a bidder regardless of the bidder's place of business. H.B. 2787 allows counties to accept bids from a bidder whose principal place of business is within the locality when the bid is within three percent of the lowest bid price. 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 Subchapter Z, Chapter 271, Local Government Code, by adding Section 271.905, as follows: Sec. 271.905. CONSIDERATION OF LOCATION OF BIDDER'S PRINCIPAL PLACE OF BUSINESS. (a) Defines "local government." (b) Authorizes the local government to enter into a contract with the low bidder or the bidder whose principal place of business is in the local government and whose bid is within three percent of the lowest bid price from a bidder who is not a resident of the local government, and the local government determines, in writing, that the local bidder offers the local government the best combination of contract price and additional economic development opportunities for the local government created by the contract award, including employment of local residents and tax revenue. (c) Provides that this section does not prevent a local government from rejecting all bids. SECTION 2. Makes application of this Act prospective. SECTION 3.Emergency clause. Effective date: upon passage.