LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION April 15, 2011 TO: Honorable Bill Callegari, Chair, House Committee on Government Efficiency & Reform FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB628 by Callegari ( Relating to contracts by governmental entities and related professional services and to public works performance and payment bonds.), Committee Report 1st House, Substituted No fiscal implication to the State is anticipated. The bill would amend statutes and repeal portions of statutes to revise existing rules and establish additional rules and procedures for a governmental entity regarding procedures related to a public work contract, including: reverse auctions; construction management; multiple award contracts; design and construction contracting and delivery; number of eligible public works projects in a given year; engineering oversight; and job order contracting for ongoing maintenance or minor construction projects. The provisions of this bill apply to public works projects first advertised by governmental entities on, or after, September 1, 2011. The bill exempts certain governmental entities from the new provisions, such as the Texas Department of Transportation, higher education institutions and systems (other than public junior colleges), and regional toll-way authorities and mobility authorities.State agencies indicated that no direct fiscal implication is anticipated from implementation of the bill; however, the Texas Facilities Commission reports that the bill's provisions could negatively impact the state's negotiating position on public works projects by disclosing the full range of competitive offers prior to negotiation and award. Local Government Impact Based on information gathered from local government entities, it is assumed that an entity would continue to choose the method of contracting that would provide the best value; therefore, no significant fiscal impact is anticipated. Source Agencies:303 Facilities Commission, 405 Department of Public Safety, 601 Department of Transportation, 696 Department of Criminal Justice, 701 Central Education Agency, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration, 781 Higher Education Coordinating Board, 802 Parks and Wildlife Department, 808 Historical Commission, 809 Preservation Board LBB Staff: JOB, KM, JI, KY, KKR, JJ, PJK
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
April 15, 2011
TO: Honorable Bill Callegari, Chair, House Committee on Government Efficiency & Reform FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB628 by Callegari ( Relating to contracts by governmental entities and related professional services and to public works performance and payment bonds.), Committee Report 1st House, Substituted
TO: Honorable Bill Callegari, Chair, House Committee on Government Efficiency & Reform
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: HB628 by Callegari ( Relating to contracts by governmental entities and related professional services and to public works performance and payment bonds.), Committee Report 1st House, Substituted
Honorable Bill Callegari, Chair, House Committee on Government Efficiency & Reform
Honorable Bill Callegari, Chair, House Committee on Government Efficiency & Reform
John S O'Brien, Director, Legislative Budget Board
John S O'Brien, Director, Legislative Budget Board
HB628 by Callegari ( Relating to contracts by governmental entities and related professional services and to public works performance and payment bonds.), Committee Report 1st House, Substituted
HB628 by Callegari ( Relating to contracts by governmental entities and related professional services and to public works performance and payment bonds.), Committee Report 1st House, Substituted
No fiscal implication to the State is anticipated.
No fiscal implication to the State is anticipated.
The bill would amend statutes and repeal portions of statutes to revise existing rules and establish additional rules and procedures for a governmental entity regarding procedures related to a public work contract, including: reverse auctions; construction management; multiple award contracts; design and construction contracting and delivery; number of eligible public works projects in a given year; engineering oversight; and job order contracting for ongoing maintenance or minor construction projects. The provisions of this bill apply to public works projects first advertised by governmental entities on, or after, September 1, 2011. The bill exempts certain governmental entities from the new provisions, such as the Texas Department of Transportation, higher education institutions and systems (other than public junior colleges), and regional toll-way authorities and mobility authorities.State agencies indicated that no direct fiscal implication is anticipated from implementation of the bill; however, the Texas Facilities Commission reports that the bill's provisions could negatively impact the state's negotiating position on public works projects by disclosing the full range of competitive offers prior to negotiation and award.
The bill would amend statutes and repeal portions of statutes to revise existing rules and establish additional rules and procedures for a governmental entity regarding procedures related to a public work contract, including: reverse auctions; construction management; multiple award contracts; design and construction contracting and delivery; number of eligible public works projects in a given year; engineering oversight; and job order contracting for ongoing maintenance or minor construction projects. The provisions of this bill apply to public works projects first advertised by governmental entities on, or after, September 1, 2011.
The bill exempts certain governmental entities from the new provisions, such as the Texas Department of Transportation, higher education institutions and systems (other than public junior colleges), and regional toll-way authorities and mobility authorities.
Local Government Impact
Based on information gathered from local government entities, it is assumed that an entity would continue to choose the method of contracting that would provide the best value; therefore, no significant fiscal impact is anticipated.
Source Agencies: 303 Facilities Commission, 405 Department of Public Safety, 601 Department of Transportation, 696 Department of Criminal Justice, 701 Central Education Agency, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration, 781 Higher Education Coordinating Board, 802 Parks and Wildlife Department, 808 Historical Commission, 809 Preservation Board
303 Facilities Commission, 405 Department of Public Safety, 601 Department of Transportation, 696 Department of Criminal Justice, 701 Central Education Agency, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration, 781 Higher Education Coordinating Board, 802 Parks and Wildlife Department, 808 Historical Commission, 809 Preservation Board
LBB Staff: JOB, KM, JI, KY, KKR, JJ, PJK
JOB, KM, JI, KY, KKR, JJ, PJK