HBA-ALS H.B. 1795 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1795 By: Reyna, Arthur State Affairs 3/31/1999 Introduced BACKGROUND AND PURPOSE Under current law, the Texas Department of Economic Development (TDED) is required to produce and post in a business daily certain information regarding each state agency procurement that will exceed $25,000; a state agency is required to post in a business daily an entire bid or proposal solicitation package that is estimated to exceed $25,000; and a state agency that will award a procurement contract estimated to exceed $25,000 in value is required to send TDED specified information and notice. H.B. 1795 changes these minimum amount requirements to $10,000. Additionally, current law authorizes the General Services Commission to delegate to a state agency the authority to purchase goods and services if the purchase exceeds $15,000. H.B.1795 removes the requirement that the goods and services must exceed $15,000 in order for the commission to delegate the agency authority to purchase those goods and services. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority previously delegated to General Services Commission is modified in SECTION 2 (Section 2155.132, Government Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 2155.074, Government Code, as added by Chapter 508, Acts of the 75th Legislature, Regular Session 1997, by amending Subsections (a), (c), (g), and (k), as follows: Sec. 2155.074. New title: STATE BUSINESS DAILY; NOTICE REGARDING PROCUREMENTS EXCEEDING $10,000. (a) Provides that except as provided in Subsection (n), this section applies to each state agency making a procurement that will exceed $10,000, rather than $25,000 in value, regardless of the source of funds the agency will use for the procurement. Deletes "$25,000" from existing title. (c) Makes a conforming change. (g) Makes a conforming change. (k) Makes a conforming change. SECTION 2. Amends Section 2155.132, Government Code, as follows: Sec. 2155.132. New title: DELEGATION OF PURCHASING AUTHORITY. Deletes "purchases less than specified monetary amount" from existing title. (a) Removes the provision authorizing the commission, by rule, to delegate to a state agency the authority to purchase goods and services only if the purchase exceeds $15,000. Deletes language delegating authority to a state agency to purchase goods and services that do not exceed $15,000. Deletes language requiring the General Services Commission (commission), after determining that the agency has not followed commission rules or laws related to the delegated purchases, to report its determination to the governor, lieutenant governor, speaker of the house of representatives, and the Legislative Budget Board. (b) Requires the commission, in delegating purchasing authority under this section, rather than in delegating purchasing authority under this subsection or Section 2155.131, Government Code (Delegation of Authority to State Agencies), to consider specified factors relevant to a state agency's ability to perform purchasing functions. (c) Requires the commission to monitor the purchasing practices of state agencies that make delegated purchases under this section, rather than under Subsection (b) or Section 2155.131, Government Code, to ensure that the certification levels of the agency's purchasing personnel and that the quality of the agency's purchasing practices warrant the amount of its delegated authority. SECTION 3. Repealer: 2155.131, Government Code (Delegation of Authority to State Agencies). SECTION 4.Effective date: September 1, 1999. SECTION 5.Emergency clause.