Honorable John T. Smithee, Chair, House Committee on Judiciary & Civil Jurisprudence
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
HB3021 by Phelan (Relating to indemnification and duties of engineers and architects under certain governmental contracts.), Committee Report 1st House, Substituted
No significant fiscal implication to the State is anticipated.
The bill would make applicable the Public Property Finance Act's provisions relating to engineering or architectural services contracts, specifically provisions relating to indemnification limitations and the duties of an engineer or architect, to a contract for such services between an engineer or architect selected under the Professional Services Procurement Act and a state agency.
Based on the Legislative Budget Board's analysis of information provided by the Texas Department of Transportation (TxDOT), it is assumed that any costs associated with correcting contractor errors would be absorbed within the agency's existing highway planning and construction resources.
The Texas Facilities Commission, the General Land Office, the Board of Architectural Engineers, the Board of Professional Engineers, and the Texas Education Agency indicate that the bill would have no fiscal impact on the respective agency.
TxDOT and the Texas Facilities Commission indicate that the State would also potentially be responsible for increased costs to correct contractor errors and omissions which contractors would no longer be required to cover under the bill's provisions. TxDOT and the Texas Facilities Commission indicate that this would result in a significant fiscal impact to the State that cannot be determined.
The Texas Department of Insurance and Texas Department of Criminal Justice indicate that the cost associated with the bill could be absorbed with the current resources of the respective agency.
Local Government Impact
According to the Texas Municipal League, the fiscal impact to municipalities is not anticipated to be significant.
Source Agencies:
303 Facilities Commission, 305 General Land Office and Veterans' Land Board, 454 Department of Insurance, 459 Board of Architectural Examiners, 460 Board of Professional Engineers, 601 Department of Transportation, 696 Department of Criminal Justice, 701 Texas Education Agency