LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 797 HLS 24RS 1662
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 30, 2024 10:52 AM Author: COATES
Dept./Agy.: Hospital Service Districts
Subject: Construction Management at Risk Projects Analyst: Chris Henry
PUBLIC CONTRACT/BIDS EN NO IMPACT See Note Page 1 of 1
Prohibits a hospital service district from using "construction management at risk" for projects estimated to cost less than two
million dollars
Current law prohibits the use of construction management at risk (CMAR) as a project delivery method for any project under
an estimated cost of $5 M. Proposed law would create an exclusion to current law that prohibits projects with estimated
costs under $2 M that are undertaken by a Hospital Service District from using CMAR.
EXPENDITURES 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
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 no anticipated direct material effect on governmental expenditures as a result of this measure. The proposed law
would allow Hospital Service Districts to utilize the construction management at risk (CMAR) delivery method for a project
estimated to have costs exceeding $2 M, as opposed to the $5 M threshold in current law. The CMAR method offers potential
advantages compared to traditional procurement methods including expedited timing, contractor qualifications playing a
more prominent role, cost transparency, and risk shifted from the owner to the contractor.
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:
HB797 Original: 38:4(A)(3)
HB797 Engrossed: 38:4(A)(3)
HB797 Enrolled: 38:4(A)(3)
HB797 Act 725: 38:4(A)(3)