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


Office of House Bill AnalysisC.S.S.B. 354
By: Lindsay
Transportation
4/25/2001
Committee Report (Substituted)



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.  C.S.S.B. 354 provides that LGCs are subject to all
state law related to the design and construction of 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

C.S.S.B. 354 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.
If an LGC is created jointly by multiple local governments and the local
governments have different threshold contract amounts at which competitive
bidding is required, the lowest amount applies to the LGC.  The bill sets
forth exemptions from competitive bidding requirements and other
restrictions on the awarding of contracts for certain LGCs. 

Provisions regarding the regulation of conflicts of interest 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. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.S.B. 354 amends the original to provide additional exemptions related
to projects for a tax increment reinvestment zone and the transfer of water
rights from competitive bidding requirements and other restrictions on the
awarding of contracts for certain local government corporations (LGC).
C.S.S.B. 354 expands the current exemption for an LGC created after
September 1, 1999 for the purpose of the development of a convention center
hotel project to any LGC created for the purpose of such development.  The
substitute also modifies the exemption for the expansion of a water
treatment and distribution facility project that is beyond the project
described in the project definition document.  The substitute requires an
LGC to comply with the Professional Services Procurement Act.