Bill Caption

Relating to consideration of location of an offeror's principal place of business in awarding certain municipal contracts.

Bill Analysis

SB 1998 would amend the Local Government Code to permit a municipality, who receives one or more proposals from an offeror whose principal place of business is in the municipality or outside the municipality and in a county in which the municipality is located, to consider the offeror's principal place of business as a percentage of the evaluation of factors. The bill would specify the municipality could treat an offereor whose principal place of business is outside the municipality and in a county in which the municipality is located in the same manner as an offeror whose principal place of business is in the municipality.

Vote Recommendation Notes

While we can agree that protecting local jobs is important to our economy, we should not undermine the free market system and increase government influence to do so. SB 1998 would increase the special privilege of municipality based businesses by allowing their location to be considered for certain contract bids over businesses located outside of the county, regardless of whether or not they could perform the same level of work. Instead of using government to secure special privileges for local businesses, Texas should allow open bidding on the free market to drive down costs without forsaking quality in the name of awarding contracts to locally based businesses. This bill abridges the principles of limited government and the free market. Consequently we oppose SB 1998.