Bill Caption

Relating to formal action of responsible governmental entities on certain proposals or bids for certain projects.

Fiscal Notes

No fiscal implication to the State is anticipated. School districts and other local governments considering a formal action on a proposal or bid for certain public-private partnership construction projects would have to delay action until September 1, 2013. Based on the analysis of the Texas Education Agency, if the provisions of the bill took effect on August 26, 2013, those provisions would only apply for six calendar days, and resulting fiscal impacts to local governments would be minimal. The bill would not affect projects already in progress. If the provisions of the bill took effect earlier due to the bill being approved with the necessary voting margins, construction delays could result in significant costs to school districts and other local governments.

Bill Analysis

Summary: HB 3436 places a short term hold on formalizing new public-private partnerships. According to the committee report, the bill author is primarily concerned about partnerships under the scope of the Texas Facilities Commission. The short term hold would expire after September 1, 2013.

Analysis: Nothing in the legislation or the committee report indicates the specific concern that has prompted this legislation. We note that if the bill passes with less than 2/3 vote, it will not go into effect until August 29, which means the hold will last only six days. If the bill passes with more than 2/3 supporting, the bill would take effect earlier. Under this scenario, according to the Legislative Budget Board, "If the provisions of the bill took effect earlier due to the bill being approved with the necessary voting margins, construction delays could result in significant costs to school districts and other local governments."

Due to the lack of clarity about the intended purpose or effects of this bill, we remain neutral.