HBA-DMD H.B. 2122 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2122
By: Kuempel
County Affairs
7/27/1999
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 76th Legislature, counties with populations greater than
125,000 required competitive bids on expenditures of more than $25,000 that
deal with emergency services districts.  There was an exception for
contracts for emergency services. However, counties with a population less
than 125,000 must have solicited bids on expenditures of more than $15,000,
without an exception for a contract for emergency services. 

H.B. 2122 requires the board of emergency commissioners (board) in a county
with a population of less than 125,000 to submit an expenditure of more
than $25,000 for competitive bids. This bill establishes provisions for
bids and provides procedures for the board to follow when receiving fewer
than three bids. 

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 776.074, Health and Safety Code, as follows:

Sec. 776.074.  New Title:  COMPETITIVE BIDS. (a) Requires the board of
emergency commissioners (board) to submit an expenditure of more than
$25,000, rather than $15,000, for competitive bids for one item or service,
or more than one of the same or a similar type of items or services in a
fiscal year, rather than for the purchase or lease of items or services.
Makes conforming changes. 

(b) Requires the board to request bids on items to be purchased or leased
or services to be performed as provided by this subsection. Requires the
board to notify suppliers, vendors, or providers by advertising for bids or
by providing at least three suppliers, vendors, or purchasers with written
notice by mail of the intended purchase.  Provides that the advertisement
must be published in accordance with Section 262.025(a) (Competitive
Bidding Notice), Local Government Code, if the board decides to advertise
for bids. Requires the board, if the board receives fewer than three bids
in response to the advertisement, to give written notice directly to at
least three suppliers, vendors, or providers of the intended purchase.
Requires the board, if three suppliers, vendors, or providers are not
available or known to the board, to give written notice by mail directly to
each supplier, vendor, or provider known to the board.  Deletes the
provision that requires the board to notify at least 10 suppliers, vendors,
or providers of the item or service required and inform them of bidding
procedure.  Deletes the provision that authorizes the board to give notice
to fewer than 10 suppliers, vendors, or providers, if at least 10
suppliers, vendors, or providers are not available or known to the board.  

(c)  Provides that the advertisement or notice, rather than the notice,
must describe the work, rather than service, to be performed.  

(d)  Prohibits the board from preparing restrictive bid specifications. 
 
(e) Redesignated from existing Subsection (d).

(f) Authorizes the board to reject any bid, rather than any and all bids.
Deletes the provision requiring the board to award a contract to the lowest
responsible bidder. Redesignated from existing Subsection (e). 

(g) Redesignated from existing Subsection (f).

(h) Sets forth that this section applies to an expenditure of district tax
revenues (expenditure) by any party or entity, rather than person or
entity, for the purchase of services, vehicles, equipment, or goods.
Deletes the provision applying this section to an expenditure by a
volunteer fire department.  Redesignated from existing Subsection (g). 

(i) Sets forth that this section does not apply to a contract for fire
extinguishment and suppression services, emergency rescue services, or
ambulance services. Makes conforming changes. Redesignated from existing
Subsection (h). 

(j) Provides that Subsection (i) does not prohibit the board from
soliciting competitive bids for any item, service, or contract listed in
Subsection (i).  

(k) Provides that a contract for a public works project must be
administered in accordance with Subchapter B (Competitive Bidding on
Certain Public Works Contracts), Chapter 271 (Purchasing and Contracting
Authority of Municipalities, Counties, and Certain Other Local
Governments), Local Government Code, except as provided by this section.  

SECTION 2.Makes application of this Act prospective.

SECTION 3.Effective date: September 1, 1999.

SECTION 4.Emergency clause.