Texas House Bill HB1649

Texas 2021 - 87th Regular

Caption

Relating to bids or proposals required for insurance and risk pool contracts entered into by a school district, municipality, or county.

Impact

The bill amends multiple sections of the Education Code and Local Government Code to enforce this bidding requirement, indicating a significant change in how local governments handle insurance contracts. It applies to contracts entering into effect after the bill's effective date of September 1, 2021. However, contracts will be exempt from this requirement if there is only one available source for the type of insurance coverage needed, ensuring that local governments are not bound by unnecessary restrictions when options are limited.

Summary

House Bill 1649 aims to establish requirements for bids or proposals for insurance and risk pool contracts entered into by school districts, municipalities, and counties in Texas. Under the new provisions, these entities are mandated to obtain at least two bids or proposals from different providers before entering into such contracts. This bill seeks to enhance transparency and competition in the procurement process for insurance-related services in local government, thereby potentially leading to better deals for taxpayers and more effective coverage solutions for public entities.

Contention

One of the notable points of contention surrounding the bill is the balance between ensuring competitive pricing and the potential complications local entities may face in meeting bid requirements. Critics might argue that imposing such mandates could lead to unnecessary delays in obtaining essential services, especially in emergency situations where swift action is required. On the other hand, supporters claim that this bill will prevent wasteful spending and encourage a more robust competitive environment in the procurement of insurance services.