HBA-TBM S.B. 354 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 354
By: Lindsay
Transportation
4/2/2001
Engrossed



BACKGROUND AND PURPOSE 

Prior to 1999, legislation relating to local government corporations (LGC)
provided primarily for functions related to transportation and required
LGCs to be governed by the Texas Transportation Commission (commission).
Under current law, LGCs are not governed by the commission and are
authorized to provide other functions and services.  This has created
confusion regarding the applicability of state purchasing restrictions and
procedures to LGCs.  Senate Bill 354 limits LGCs to transportation-related
purposes with exceptions for current projects, requires LGCs to make annual
reports, and provides that LGCs are subject to regulations on conflicts of
interest in local government contracts.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

Senate Bill 928 amends Transportation Code to provide that a local
government corporation (LGC) is subject to all state law related to the
design and construction of projects, including procurement of design and
construction services, that apply to the local government that created the
corporation.  In the event that an LGC is created jointly by multiple local
governments, and if the local governments have different threshold contract
amounts at which competitive bidding is required, the LGC is required to
follow the lower amount.  The bill sets forth exemptions from competitive
bidding requirements and other restrictions on the awarding of contracts
for certain LGCs.   

The bill requires provisions regarding the regulation of conflicts of
interest to apply to the award of contracts by an LGC.  The bill requires
the board of an LGC to submit an annual report on the revenues,
expenditures, and activities of the LGC during the preceding fiscal year to
the comptroller of public accounts and to the local government that created
the LGC.   

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.