SRC-SEW H.B. 3413 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 3413
77R12482 SGA-FBy: McClendon (Madla)
Intergovernmental Relations
5/5/2001
Engrossed


DIGEST AND PURPOSE 

Under current law, a public housing authority must hire an architect to
design plans for public housing projects in order to request competitive
bids. Once a design has been completed, the housing authority goes through
a competitive bidding process for construction of the designed project. The
housing authority must pay all up front costs of the design work, and risks
losing that money if the project is not built. Current law does not allow
housing authorities to accept bids that include architectural plans and
construction costs in one proposal, also known as turn-key bids. H.B. 3413
authorizes the use of alternative bidding methods for an activity of a
public housing authority to develop a mixed-finance housing project as
defined by federal law. 

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 Section 392.052, Local Government Code, by adding
Subsection (h) to provide that competitive bidding laws, including Chapter
271, do not apply to an authority activity to develop a mixed-finance
housing project as defined by 42 U.S.C. Section 1437z-7, if the housing
project otherwise complies with the procurement requirements imposed by
federal law and regulations. 
 
SECTION 2. Makes application of this Act prospective.

SECTION 3.  Effective date:  September 1, 2001.