HBA-ALS H.B. 1795 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1795
By: Reyna, Arthur
State Affairs
3/31/1999
Introduced



BACKGROUND AND PURPOSE 

Under current law, the Texas Department of Economic Development (TDED) is
required to produce and post in a business daily certain information
regarding each state agency procurement that will exceed $25,000;  a state
agency is required to post in a business daily an entire bid or proposal
solicitation package that is estimated to exceed $25,000; and a state
agency that will award a procurement contract estimated to exceed $25,000
in value is required to send TDED specified information and notice.  H.B.
1795 changes these minimum amount requirements to $10,000.  

Additionally, current law authorizes the General Services Commission to
delegate to a state agency the authority to purchase goods and services if
the purchase exceeds $15,000.  H.B.1795 removes the requirement that the
goods and services must exceed $15,000 in order for the commission to
delegate the agency authority to purchase those goods and services. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority previously delegated to General Services Commission is modified
in SECTION 2 (Section 2155.132, Government Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 2155.074, Government Code, as added by Chapter
508, Acts of the 75th Legislature, Regular Session 1997, by amending
Subsections (a), (c), (g), and (k), as follows: 

Sec. 2155.074. New title: STATE BUSINESS DAILY; NOTICE REGARDING
PROCUREMENTS EXCEEDING $10,000. (a) Provides that except as provided in
Subsection (n), this section applies to each state agency making a
procurement that will exceed $10,000, rather than $25,000 in value,
regardless of the source of funds the agency will use for the procurement.
Deletes "$25,000" from existing title. 

(c) Makes a conforming change.

(g) Makes a conforming change.

(k) Makes a conforming change.

SECTION 2. Amends Section 2155.132, Government Code, as follows:

Sec. 2155.132. New title: DELEGATION OF PURCHASING AUTHORITY. Deletes
"purchases less than specified monetary amount" from existing title. (a)
Removes the provision authorizing the commission, by rule, to delegate to a
state agency the authority to purchase goods and services only if the
purchase exceeds $15,000. Deletes language delegating authority to a state
agency to purchase goods and services that do not exceed $15,000. Deletes
language requiring the General Services Commission (commission), after
determining that the agency has not followed commission rules or laws
related to the delegated purchases, to report its determination to the
governor, lieutenant governor, speaker of the house of representatives, and
the Legislative Budget Board.    
 
(b) Requires the commission, in delegating purchasing authority under this
section, rather than in delegating purchasing authority under this
subsection or Section 2155.131, Government Code  (Delegation of Authority
to State Agencies), to consider specified factors relevant to a state
agency's ability to perform purchasing functions.  

(c) Requires the commission to monitor the purchasing practices of state
agencies  that make delegated purchases under this section, rather than
under Subsection (b) or Section 2155.131, Government Code, to ensure that
the certification levels of the agency's purchasing personnel and that the
quality of the agency's purchasing practices warrant the amount of its
delegated authority. 

SECTION 3. Repealer: 2155.131, Government Code (Delegation of Authority to
State Agencies). 

SECTION 4.Effective date: September 1, 1999. 

SECTION 5.Emergency clause.