LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 794 HLS 24RS 1223
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 30, 2024 10:51 AM Author: GADBERRY
Dept./Agy.: Statewide
Subject: Architectural and Engineering Professional Services Analyst: Chris Henry
PUBLIC CONTRACTS EN SEE FISC NOTE EX Page 1 of 1
Requires a political subdivision or agency negotiate a fair and reasonable contract with the most highly qualified firm for
architectural and engineering professional services
Current law provides for the state, its political subdivisions, and agencies to select architectural and engineering professional
services on the basis of competence and qualifications for a fair and reasonable price. Proposed legislation would require a
political subdivision or agency to negotiate for a compensation rate determined by the agency head to be fair and reasonable
with the firm selected. If the political subdivision or agency is unable to reach an agreement with that firm, they shall
formally terminate negotiations and begin to negotiate with the next firm. This process is repeated until a satisfactory
contract is negotiated.
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Agy. Self-Gen. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Ded./Other SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Federal Funds SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Local Funds SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Annual Total
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
EXPENDITURE EXPLANATION
There is the potential for unknown savings to the state, its political subdivisions, and agencies across various means of
finance as a result of the proposed measure. To the extent the contract chosen by the selection board is not able to be
satisfactorily negotiated on the basis of price and the provisions of the proposed law are utilized, it would be possible for
state agencies and political subdivisions to realize savings should the subsequent negotiation(s) yield a less costly contract.
Conversely, the time and effort required to commence a project by state agencies and political subdivisions could be
impacted to the extent that the selection process and the subsequent negotiation process substantially prolong the time for
a project to begin.
REVENUE EXPLANATION
There is no anticipated direct material effect on governmental revenues as a result of this measure.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Patrice Thomas
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Deputy Fiscal Officer


Statutes affected:
HB794 Original:
HB794 Engrossed:
HB794 Reengrossed:
HB794 Enrolled:
HB794 Act 788: