HBA-MPA H.B. 2787 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2787
By: Eiland
County Affairs
7/12/1999
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 76th Legislature, local governments were required to take the
lowest bid of a bidder regardless of the bidder's place of business.  H.B.
2787 allows local governments meeting certain criteria to accept bids from
a bidder whose principal place of business is within the locality when the
bid is within three percent of the lowest bid price. 

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 Subchapter Z, Chapter 271, Local Government Code, by
adding Section 271.905, as follows: 

Sec. 271.905.  CONSIDERATION OF LOCATION OF BIDDER'S PRINCIPAL PLACE OF
BUSINESS.  (a)  Defines "local government." 

(b) Authorizes the local government to enter into a contract to purchase
real property or personal property not affixed to real property with the
low bidder or the bidder whose principal place of business is in the local
government and whose bid is within three percent of the lowest bid price
from a bidder who is not a resident of the local government, and the local
government determines, in writing, that the local bidder offers the local
government the best combination of contract price and additional economic
development opportunities for the local government created by the contract
award, including employment of local residents and tax revenue. 

(c) Provides that this section does not prevent a local government from
rejecting all bids. 

SECTION 2.  Makes application of this Act prospective.

SECTION 3.Emergency clause.
  Effective date: upon passage.