SRC-VRA S.B. 733 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 733
78R2882 AKH-DBy: Ratliff
Intergovernmental Relations
3/13/2003
As Filed


DIGEST AND PURPOSE 

Currently, local governments may purchase items under competitive bidding
procedures primarily in three ways: (1.) posting an invitation to bid;
(2.) purchasing through the state from approved vendors; and (3.)
purchasing from a local government cooperative.  As proposed, S.B. 733
allows local governments to purchase an item from a local vendor without
following competitive purchasing procedures if the vendor's price is equal
to or less than the price provided by the state or cooperative.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 271Z, Local Government Code, by adding Section
271.907, as follows: 

 Sec.  271.907.  PURCHASE FROM LOCAL VENDOR.  (a)  Defines "local vendor."

(b)  Authorizes a local government, as defined by Section 271.081, to
purchase an item from a local vendor without following a competitive
purchasing procedure if that vendor's price is equal to or less than the
price at which the local government could purchase the item under a
government purchasing program of this state such as those described by
Subchapter D, F, or G or by Section 2155.504, Government Code (Certain
Bids and Contracts Prohibited). 

(c)  Provides that a purchase under this section satisfies any law
requiring the local government to purchase an item under a competitive
purchasing procedure.   

SECTION 2.  Effective date:  September 1, 2003.