HBA-JEK, TBM S.B. 335 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 335 By: Carona County Affairs 4/8/2001 Engrossed BACKGROUND AND PURPOSE Under current law, a local government in this state may only enter into an interlocal contract with a local government in a state that borders this one. By limiting local governments of this state to contracting with local governments in New Mexico, Oklahoma, Arkansas, and Louisiana, Texas law may be limiting potential opportunities to benefit from interstate relations. Senate Bill 335 removes the neighboring state limitation on interlocal contracts and clarifies guidelines for interlocal contracts. 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. ANALYSIS Senate Bill 335 amends the Government Code to authorize a local government in this state to enter into an interlocal cooperation contract with a local government in another state. The bill deletes the restriction that the out-of-state local government must be in a state that borders this state. The bill specifies that a governmental entity of this state or another state that makes purchases or provides purchasing services under an interlocal contract for a state agency must comply with provisions governing historically underutilized businesses. EFFECTIVE DATE September 1, 2001.