HBA-EDN H.B. 3581 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3581
By: Davis, John
State Affairs
4/11/2001
Introduced



BACKGROUND AND PURPOSE 

Building maintenance and repair is a substantial expense for Texas state
government.  There are approaches that state agencies and school districts
use to develop bid specifications for contracts which prevent some vendors
from competing for the work.  One approach is when individuals paid by
suppliers volunteer to write specifications for government agencies free of
charge.  In turn, these individuals, or consultants, develop specifications
that require the use of products sold only by the company that employs
them.  This makes it difficult for other vendors to compete with the
company paying the consultant and does not ensure that the state receives
quality services at competitive prices.  Another problem is when
specifications include materials that have characteristics which are
unnecessary for their specified use.  The comptroller of public accounts
has recommended that innovative practices be used in the bid solicitation
process to encourage competition among vendors to help control costs to the
state.  House Bill 3581 prohibits state agencies or school districts from
specifying unnecessary materials in the bid specifications for a
construction or repair project and provides a procedure for protesting
material specifications to ensure such competition.       

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

House Bill 3581 amends the Government Code to prohibit a state agency
(agency) or school district (district) from specifying materials in the bid
specifications for a construction or repair project unless the performance
characteristics of the specified materials are necessary to meet the agency
or district's minimum needs.  The bill provides that a request for bids or
proposals for a project must contain a procedure for protesting material
specifications.  The bill requires an agency or district, on filing such a
protest, to produce independently prepared test data attested by an
architect  or engineer showing that the specified materials are necessary
to meet the agency's or district's minimum needs for the project to prevent
premature failure.   

H.B. 3581 provides that the engineer's or architect's test must demonstrate
that the actual conditions expected or calculated to be experienced on the
project require the performance characteristics provided by the specified
materials.  The bill authorizes other materials to be substituted for the
specified materials if an agency or district fails to produce data to show
that such materials are necessary if the other materials are equivalent
products meeting the minimum needs and conditions normally expected in the
industry for the project, given the site conditions and other relevant
circumstances.     

EFFECTIVE DATE

September 1, 2001.