LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION

April 13, 2021

TO:	Honorable Chris Paddie, Chair, House Committee on State Affairs
FROM:	Jerry McGinty, Director, Legislative Budget Board
IN RE:	HB2581 by Kacal (Relating to civil works projects and other construction projects of governmental entities.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would amend the Government Code to authorize a governmental entity to implement a prequalification process to eliminate unqualified offerors from and prequalify potential offerors meeting minimum standards for consideration for a civil works project and specify requirements and authorizations with regards to the process. It is assumed that any costs associated with the bill's provisions could be absorbed using existing resources.

Local Government Impact

According to the Texas Education Agency, the bill could have an impact on school districts if they choose to do a prequalification process. It would be additional cost for them to publish the solicitations and evaluate and score the potential offerors, approximately $10,000-$25,000 per solicitation for prequalification including the cost of writing and publishing the solicitation and the time and effort for the evaluation team to review and score the responses.

Source Agencies:

303 Facilities Commission, 401 Military Department, 405 Department of Public Safety, 601 Department of Transportation, 696 Department of Criminal Justice, 701 Texas Education Agency, 710 Texas A&M Univ System Admin, 720 UT Sys Admin, 802 Parks and Wildlife Department, 808 Historical Commission, 809 Preservation Board

LBB Staff:

JMc, SMAT, CMA, DPE, WP, LCO, NA