BILL ANALYSIS

C.S.H.B. 2958

By: Leach

Government Efficiency & Reform

Committee Report (Substituted)

BACKGROUND AND PURPOSE

Current law requires governmental entities to follow procurement procedures outlined in state law when contracting for construction services.  Some local units of government, such as counties and municipalities, may create local government corporations that use taxpayer dollars to finance construction projects, and interested parties note that such locally created corporations and other agencies of a local government also are subject to state procurement laws but only for the design and construction of transportation projects. C.S.H.B. 2958 seeks to clarify matters regarding the application of state procurement requirements to locally created agencies and instrumentalities of local governments by requiring local government corporations to follow state procurement law for all taxpayer-funded construction projects.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 2958 amends the Local Government Code to establish that the same state laws related to the design and construction of projects, including the procurement of design and construction services, that apply to a county, municipality, district, or other political subdivision of this state apply to an agency or instrumentality of such a local governmental entity, an economic development corporation created by such a governmental entity, or an alliance, agreement, partnership, or agency created between the governmental entity and one or more other governmental entities.

EFFECTIVE DATE

September 1, 2013.

COMPARISON OF ORIGINAL AND SUBSTITUTE

While C.S.H.B. 2958 may differ from the original in minor or nonsubstantive ways, the following comparison is organized and highlighted in a manner that indicates the substantial differences between the introduced and committee substitute versions of the bill.

INTRODUCED	HOUSE COMMITTEE SUBSTITUTE
SECTION 1.  Subchapter Z, Chapter 271, Local Government Code, is amended by adding Section 271.909 to read as follows: Sec. 271.909.  COMPETITIVE REQUIREMENTS APPLICABLE TO CERTAIN AGENCIES, INSTRUMENTALITIES, AND AGREEMENTS. (a)  In this section, "governmental entity" means a county, municipality, district, or other political subdivision of this state. (b)  To the extent that a governmental entity is required by statute to award a contract using competitive bidding or competitive sealed proposals, an agency or instrumentality of the governmental entity, an economic development corporation created by the governmental entity under Subtitle C1, Title 12, or an alliance, agreement, partnership, or agency created between the governmental entity and one or more other governmental entities is required to award a contract by competitive bidding or competitive sealed proposals in the same manner as the governmental entity.	SECTION 1.  Subchapter Z, Chapter 271, Local Government Code, is amended by adding Section 271.909 to read as follows: Sec. 271.909.  PROJECT DESIGN AND CONSTRUCTION REQUIREMENTS APPLICABLE TO CERTAIN AGENCIES, INSTRUMENTALITIES, AND AGREEMENTS.  (a)  In this section, "governmental entity" means a county, municipality, district, or other political subdivision of this state. (b)  The same state laws related to the design and construction of projects, including the procurement of design and construction services, that apply to a governmental entity apply to an agency or instrumentality of the governmental entity, an economic development corporation created by the governmental entity under Subtitle C1, Title 12, or an alliance, agreement, partnership, or agency created between the governmental entity and one or more other governmental entities.
SECTION 2.  The changes in law made by this Act apply only to a contract for which a governmental entity first advertises or otherwise solicits bids, proposals, offers, or qualifications or makes a similar solicitation on or after the effective date of this Act. A contract for which a governmental entity first advertises or otherwise solicits bids, proposals, offers, or qualifications or makes a similar solicitation before the effective date of this Act is governed by the law in effect on the date the advertisement or solicitation is made, and that law is continued in effect for that purpose.	SECTION 2.  The changes in law made by this Act affecting contract requirements apply only to a contract for which an entity first advertises or otherwise solicits bids, proposals, offers, or qualifications or makes a similar solicitation on or after the effective date of this Act.  A contract for which an entity first advertises or otherwise solicits bids, proposals, offers, or qualifications or makes a similar solicitation before the effective date of this Act is governed by the law in effect on the date the advertisement or solicitation is made, and that law is continued in effect for that purpose.
SECTION 3.  This Act takes effect September 1, 2013.	SECTION 3. Same as introduced version.