Texas Senate Bill SB970

Texas 2019 - 86th Regular

Caption

Relating to the review and approval of contingent fee contracts for certain public agencies.

Impact

The implementation of SB970 is poised to reform how public agencies manage contingent fee contracts, particularly emphasizing the importance of legislative oversight in expenditure. The bill specifically exempts certain types of contracts, such as those for collecting delinquent taxes and fees, which ensures that the approval process does not hinder essential public services. However, any contract that falls under the specified umbrella will now require a higher level of scrutiny, potentially reducing the speed with which public agencies can initiate such agreements.

Summary

Senate Bill 970 introduces a framework for the review and approval of contingent fee contracts used by certain public agencies in Texas. The primary provision outlines that public agencies, as defined by existing laws, cannot enter into these contracts without the prior review and approval from the attorney general. This legislative measure aims to enhance oversight of contingent fee arrangements, thereby improving accountability in the utilization of public funds.

Sentiment

Support for SB970 seems to stem primarily from a desire for enhanced governmental transparency and fiscal responsibility. Proponents argue that requiring attorney general oversight is a necessary step to curb potential misuse of contingent fee arrangements, promoting ethical standards in public contracting. However, there are concerns regarding the operational burden this added layer of bureaucracy may impose on public agencies, particularly smaller entities that may lack the resources for extensive compliance efforts.

Contention

The bill has generated discussion, especially around the balance between necessary oversight and operational efficiency for public agencies. While advocates believe that oversight will prevent potential abuses in utilizing public funds, opponents may argue that it slows down essential operations, impacting the agencies' ability to function effectively. As the law distinguishes between various types of contracts, the exemptions granted also sparked debate on which contracts warrant special treatment and which should undergo rigorous review.