HBA-NRS H.B. 1892 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1892 By: Lewis, Glenn County Affairs 3/25/2001 Introduced BACKGROUND AND PURPOSE Current law provides that competitive sealed bids must be awarded to the lowest responsible bidder for a contract with a municipality for goods or services. However, there is no exact definition of "responsible" in relation to the competitive sealed bidding process. In 1995, legislation was enacted which allows school districts to use eight evaluation criteria in determining the best value to the school district in purchasing under a sealed bid. In addition, the competitive bidding limit for a municipality and a crime control and prevention district (district) is set at $15,000. During the 1999 legislative session, the county bidding limit was increased from $15,000 to $25,000. House Bill 1892 increases from $15,000 to $25,000 the maximum amount that a municipality or a district may expend without being subject to competitive bidding and proposal requirements and sets forth factors to be considered when determining the best value for a contract award. 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. ANALYSIS House Bill 1892 amends the Local Government Code to increase from $15,000 to $25,000 the maximum amount that a municipality or the board of directors of a crime control and prevention district may expend without being subject to competitive sealed bidding or sealed proposal requirements. The bill increases from $15,000 to $25,000 the maximum amount that a municipality may expend without being subject to the requirement that a municipality contact at least two historically underutilized businesses on a rotating basis, based on information provided by the General Services Commission. The bill provides that a contract that requires a competitive sealed bid must be awarded to the bidder who provides goods or services at the best value for the municipality, rather than the lowest responsible bidder. The bill authorizes the municipality to determine the best value based on specified factors. EFFECTIVE DATE September 1, 2001.