HBA-TYH, GUM H.B. 3543 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 3543
By: Hodge
Urban Affairs
7/21/1999
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 76th Legislature, the law allowed certain mass transit
authorities to negotiate a contract without competitive sealed bids or
proposals if the amount involved in the contract was $15,000 or less.  Some
transit authorities had expressed an interest in saving money on the
administrative costs involved with sealed bids or proposals by raising the
maximum dollar amount of a contract that could have been negotiated without
sealed bids.  In addition, purchasing without sealed bids or proposals
could have simplified the administrative process.  H.B. 3543 increases from
$15,000 to $25,000 the maximum aggregate amount for contracts authorized to
be negotiated without competitive sealed bids or proposals.  

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 Subsection (c), Section 451.110, Transportation Code, to
delete from the list of contracts to which this section does not apply: 

_a contract by a rapid transit authority created before 1980 in which the
principal municipality has a population of less than 1.2 million; or  

_a contract for $15,000 or less by an authority not described above.

SECTION 2.  Amends Subsection (a), Section 451.111, Transportation Code, to
delete from the list of contracts that the governing body of a rapid
transit authority can not allow, unless the posting requirement is
satisfied: 

_a contract by an authority created before 1980 in which the principal
municipality has a population of less than 1.2 million; or  

_a contract for $15,000 or less by an authority not described above.

SECTION 3.  Amends Subsection (c), Section 452.107, Transportation Code, to
increase from $15,000 to $25,000 the maximum aggregate amount for contracts
authorized to be negotiated without competitive sealed bids or proposals
under this section (Purchases: Competitive Bidding). 

SECTION 4.  Emergency clause.
  Effective date: upon passage.