82R14081 MXM-F
 
  By: Kuempel H.B. No. 3607
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to construction managers-at-risk used by local
  governments.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 271.118(c), Local Government Code, is
  amended to read as follows:
         (c)  Before or concurrently with selecting a construction
  manager-at-risk, the governmental entity shall select or designate
  an engineer or architect who shall prepare the construction
  documents for the project and who has full responsibility for
  complying with Chapter 1001 or 1051, Occupations Code, as
  applicable. If the engineer or architect is not a full-time
  employee of the governmental entity, the governmental entity shall
  select the engineer or architect on the basis of demonstrated
  competence and qualifications as provided by Section 2254.004,
  Government Code. The governmental entity's engineer, architect, or
  construction manager-agent for a project may not serve, alone or in
  combination with another, as the construction manager-at-risk
  [unless the engineer or architect is hired to serve as the
  construction manager-at-risk under a separate or concurrent
  procurement conducted in accordance with this subchapter].
         SECTION 2.  Subchapter H, Chapter 271, Local Government
  Code, is amended by adding Section 271.1181 to read as follows:
         Sec. 271.1181.  LIMITATION ON CONSTRUCTION MANAGER-AT-RISK
  CONTRACTS.  (a)  A construction manager-at-risk contract may not be
  awarded to:
               (1)  a governmental entity's engineer, architect,
  construction manager-agent, or program director; or
               (2)  a sole proprietor, corporation, partnership,
  limited liability company, or other entity that is a subsidiary,
  parent corporation, or partner or has any other relationship in
  which the governmental entity's engineer, architect, construction
  manager-agent, or program director has an ownership interest, or is
  subject to common ownership or control, or is party to an agreement
  by which it will receive any proceeds of the construction
  manager-at-risk's payments from the governmental entity.
         (b)  A contract awarded in violation of this section is void
  as contrary to public policy.
         (c)  This section does not apply to:
               (1)  a public corporation in which three percent or
  less of the outstanding stock is owned by a governmental entity's
  architect or engineer; or
               (2)  a person who enters into a joint venture for a
  project or contract unrelated to the current project for which a
  construction manager-at-risk is being selected.
         SECTION 3.  This Act applies only to a contract for the
  services of a construction manager-at-risk entered into on or after
  the effective date of this Act. A contract entered into before the
  effective date of this Act is governed by the law in effect when the
  contract was entered into, and the former law is continued in effect
  for that purpose.
         SECTION 4.  This Act takes effect September 1, 2011.