HBA-DMD S.B. 1505 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1505
By: Truan
State Affairs
4/29/1999
Engrossed



BACKGROUND AND PURPOSE 

The Texas Natural Resource Conservation Commission has found that agencies
of other states and of the federal government have resources which are
available for purchase on a cost-reimbursement basis. Many of these
agencies do not routinely submit bids or proposals and cannot be considered
in the competitive procurement process. Current procurement requirements do
not differentiate between a purchase from a commercial entity and another
governmental unit unless that unit is a Texas agency or a local government.
S.B. 1505 authorizes a state agency to contract with a state or federal
agency for the provision of necessary and authorized services and
resources. This bill sets forth that a written contract is not required
between agencies of this state in certain situations. It requires an agency
of this state, that receives services or resources from an agency of
another state or the federal government, to reimburse each agency that
provided the services or resources.  

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 771.002, Government Code, by adding Subdivision
(4), to define "state or federal agency." 

SECTION 2.  Amends Sections 771.003, 771.004, 771.006, 771.007, 771.008,
and 771.010, Government Code, as follows: 

Sec. 771.003. AUTHORITY TO CONTRACT; EXCEPTIONS. (a) Authorizes a state
agency to contract with, rather than to agree or contract with, a state or
federal agency, rather than another state agency, for the provision of
necessary and authorized services and resources. Makes conforming and
nonsubstantive changes. 

(b) Makes conforming and nonsubstantive changes.

(c) Makes conforming and nonsubstantive changes.

Sec. 771.004. CONTRACT REQUIREMENTS;  EXCEPTIONS. (a) Deletes the provision
that a state agency must have entered into an agreement approved by the
administrator of each agency that is a party to the agreement, before a
state agency may provide or receive a service or resource. Makes conforming
and nonsubstantive changes. 

(b) Makes a conforming change.

(c) Sets forth that a written contract, rather than a written agreement or
contract, is not required between agencies of this state in certain
situations.  

(d) Makes a conforming change.

(e) Provides that a contract between a state agency and an agency of
another state or the  federal government is subject to the approval of the
governor. Authorizes the governor to authorize a state agency or an
employee of the governor's office to approve contracts or grants between a
state agency and an agency of another state or the federal government.
Authorizes the governor to specify limitations on the authorization to
approve contracts or grants based on amount, subject matter, or other
factors. 

Sec. 771.006. PURCHASES AND SUBCONTRACTS OF SERVICES AND RESOURCES. Makes a
conforming change.  

Sec. 771.007. REIMBURSEMENT AND ADVANCEMENT OF COSTS. Makes conforming
changes. 

Sec. 771.008. REIMBURSEMENT PROCEDURES. (a) Makes conforming changes.

(b) Makes a conforming change. 

(c) Makes no change.

(d) Requires a state agency that receives services or resources from an
agency of another state or the federal government to reimburse each agency
that provided the services or resources as provided by the terms of the
contract.  

Sec. 771.010. EXCEEDING AUTHORITY PROHIBITED. Makes conforming changes.

SECTION 3.Effective date: September 1, 1999.  

SECTION 4.Emergency clause.