HBA-ALS H.B. 1757 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1757
By: Turner, Sylvester
State Affairs
3/19/1999
Introduced



BACKGROUND AND PURPOSE 

Current law allows for cooperative purchasing programs between local
governments and certain local cooperative organizations.  The purpose of
this bill is to enable local governments and state agencies to procure
automated information or telecommunications systems through nonprofit
organizations. 

H.B. 1757 exempts the procurement of automated information or
telecommunications system by local governments and state agencies from the
state's competitive bidding requirements, if the purchase of the system is
made under a contract with a nonprofit organization that is: chartered to
serve governmental entities; is governed by local government officials;
functions as a local cooperative organization that makes purchases for and
serves as an educational resource for such local governments on the
procurement and development of technology; and selects a prescribed
qualified information systems vendor or uses a specified competitive
bidding process. 


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), as follows: 

(d) Provides that a local government which procures an automated
information or telecommunications system, including associated hardware,
software, or programming, maintenance, repair, and installation service
(system), satisfies any state law  requiring the local government to seek
competitive bids if: 

(1) the system is procured under a contract made by a nonprofit
organization with a certificate of authority to do business in this state
(nonprofit); and  

(2) the nonprofit is chartered to serve governmental entities; is governed
by elected and appointed local government officials; functions as a
specified local cooperative organization; and selects a qualified
information systems vendor pursuant to Section 2157.062 (Application
Process for Qualification as Vendor), Government Code, or uses a
competitive bidding process pursuant to Sections 2155.132 (Purchases Less
Than Specified Monetary Amount) and 2155.264 (Agency Solicitation of Bids
or Proposals for Acquisition Over $15,000), Government Code. 

SECTION 2.  Amends Subchapter A, Chapter 2157, Government Code, by adding
Section 2157.006, as follows: 

Sec. 2157.006.  PURCHASES THROUGH NONPROFIT ORGANIZATIONS.  Authorizes a
state agency to procure a system if the nonprofit is chartered to serve
governmental entities; is governed by elected and appointed local
government officials; functions as a specified  local cooperative
organization; and selects a qualified information systems vendor pursuant
to Section 2157.062, Government Code, or uses a competitive bidding process
pursuant to Sections 2155.132 and 2155.264, Government Code. 

SECTION 3.(a) Effective date: September 1, 1999.

  (b) Makes application of this Act prospective.

SECTION 4.Emergency clause.