HBA-NLM H.B. 1735 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1735
By: Turner, Sylvester
County Affairs
3/2/1999
Introduced



BACKGROUND AND PURPOSE 

Current law does not extend to nonprofit organizations the ability to form
consortiums with, or make purchases for, local and state governmental
entities.  However, cooperative purchasing has become common practice among
other organizations and associations.  H.B. 1735 allows nonprofit
organizations to make purchases for local governments under a cooperative
purchasing program and exempts these organizations from the statutory
requirement to seek competitive bids for the purchase of goods or services.

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 Section 271.102, Local Government Code, by adding
Subsection (d), to exempt from state law requiring local governments to
seek competitive bids for the purchase of goods or services, a nonprofit
organization that: 

_functions as a local cooperative organization;
_makes purchases for local governments under a cooperative purchasing
program; and 
_serves as an educational resource for local governments on procurement and
development of technology. 

SECTION 2.  Emergency clause.
            Effective date:  90 days after adjournment.