83R7619 TJB-F By: Kuempel H.B. No. 1977 A BILL TO BE ENTITLED AN ACT relating to construction manager-agents and managers-at-risk used by governmental entities. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 2267.252(b), Government Code, as added by Chapter 1129 (H.B. 628), Acts of the 82nd Legislature, Regular Session, 2011, is amended to read as follows: (b) The governmental entity's architect, [or] engineer, or construction manager-agent for a project may not serve, alone or in combination with another person, as the construction manager-at-risk [unless the architect or engineer is hired to serve as the construction manager-at-risk under a separate or concurrent selection process conducted in accordance with this subchapter]. This subsection does not prohibit the governmental entity's architect or engineer from providing customary construction phase services under the architect's or engineer's original professional service agreement in accordance with applicable licensing laws. SECTION 2. (a) This section takes effect only if the Act of the 83rd Legislature, Regular Session, 2013, relating to nonsubstantive additions to and corrections in enacted codes becomes law. (b) Subchapter F, Chapter 2269, Government Code, is amended by adding Section 2269.2511 to read as follows: Sec. 2269.2511. LIMITATION ON CONSTRUCTION MANAGER-AT-RISK CONTRACTS. (a) A construction manager-at-risk contract may not be awarded to: (1) a governmental entity's engineer, architect, construction manager-agent, or program director; or (2) a sole proprietor, corporation, partnership, limited liability company, or other entity that is a subsidiary, parent corporation, or partner or has any other relationship in which the governmental entity's engineer, architect, construction manager-agent, or program director has an ownership interest, or is subject to common ownership or control, or is party to an agreement by which it will receive any proceeds of the construction manager-at-risk's payments from the governmental entity. (b) A contract awarded in violation of this section is void as contrary to public policy. (c) This section does not apply to: (1) a public corporation in which three percent or less of the outstanding stock is owned by a governmental entity's architect or engineer; or (2) a person who enters into a joint venture for a project or contract unrelated to the current project for which a construction manager-at-risk is being selected. SECTION 3. (a) This section takes effect only if the Act of the 83rd Legislature, Regular Session, 2013, relating to nonsubstantive additions to and corrections in enacted codes does not become law. (b) Subchapter F, Chapter 2267, Government Code, as added by Chapter 1129 (H.B. 628), Acts of the 82nd Legislature, Regular Session, 2011, is amended by adding Section 2267.2511 to read as follows: Sec. 2267.2511. LIMITATION ON CONSTRUCTION MANAGER-AT-RISK CONTRACTS. (a) A construction manager-at-risk contract may not be awarded to: (1) a governmental entity's engineer, architect, construction manager-agent, or program director; or (2) a sole proprietor, corporation, partnership, limited liability company, or other entity that is a subsidiary, parent corporation, or partner or has any other relationship in which the governmental entity's engineer, architect, construction manager-agent, or program director has an ownership interest, or is subject to common ownership or control, or is party to an agreement by which it will receive any proceeds of the construction manager-at-risk's payments from the governmental entity. (b) A contract awarded in violation of this section is void as contrary to public policy. (c) This section does not apply to: (1) a public corporation in which three percent or less of the outstanding stock is owned by a governmental entity's architect or engineer; or (2) a person who enters into a joint venture for a project or contract unrelated to the current project for which a construction manager-at-risk is being selected. SECTION 4. The changes in law made by this Act apply only to a contract for the services of a construction manager-at-risk entered into on or after the effective date of this Act. A contract entered into before the effective date of this Act is governed by the law in effect when the contract was entered into, and the former law is continued in effect for that purpose. SECTION 5. This Act takes effect September 1, 2013.