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.