HBA-GUM C.S.H.B. 3543 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 3543
By: Hodge
Urban Affairs
4/19/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Current law allows certain mass transit authorities to negotiate a contract
without competitive sealed bids or proposals if the amount involved in the
contract is $15,000 or less.  Some transit authorities have expressed an
interest in saving money on the administrative costs involved with sealed
bids or proposals by raising the maximum dollar amount of a contract that
may be negotiated without sealed bids.  In addition, purchasing without
sealed bids or proposals may simplify the administrative process.  C.S.H.B.
3543 increases from $15,000 to $25,000 the maximum aggregate amount for
contracts authorized to be negotiated without competitive sealed bids or
proposals. 

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 452.107(c), Transportation Code, to increase
from $15,000 to $25,000 the maximum aggregate amount for contracts
authorized to be negotiated without competitive sealed bids or proposals
under this section (Purchases: Competitive Bidding). 

SECTION 2.  Emergency clause.
  Effective date: upon passage.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute modifies SECTION 1 to remove the provision from the original
which authorized contracts to be negotiated without competitive sealed bids
in the amount of $100,000 or less for services.