Committee: Governmental AffairsSponsor: Ledbetter
Analyst: Daniel DavenportDate: 04/06/2021

FISCAL NOTE

House Bill 220 as passed the House of Representatives (1) provides authority to manage the construction and renovation of property of educational institutions and certain state educational institutions to the governing boards of each respective institution; and (2) removes this authority from the Division of Construction Management (DCM) within the Department of Finance.

This bill would increase the obligations of the Alabama Community College System (ACCS) by an estimated range of $730,000 to $4.1 million annually, as estimated by ACCS and the DCM, respectively, which could be covered, at least in part, through construction fee arrangements with the colleges.

This bill would decrease the current fee obligations of educational institutions and certain state educational institutions for (1) capital improvement projects with a certified cost estimate not more than $500,000; and (2) repairs or maintenance of heating, ventilation, and air conditioning (HVAC) systems; or roof repairs or maintenance that would no longer require approval by DCM. In addition, this bill would increase the administrative obligations of DCM to report to the Legislature the plans and projects submitted for proposals for public K-12 schools. This increase in obligations would be offset partly by reduced administrative obligations associated with the transfer of authority from DCM to these entities, and user fee receipts to the DCM by an undetermined amount.

As substituted and reported by the Committee on Governmental Affairs, would reduce current fee obligations for public K-12 schools or public institutions of higher education with constitutionally created boards of trustees for (1) capital improvement projects with a certified cost estimate not more than $500,000; (2) repairs or maintenance of HVAC systems; or (3) roof repairs or maintenance as DCM project approval would no longer be required. This bill requires the State Department of Education (SDE) to (1) develop and distribute project forms for use by local boards of education and (2) ensure the forms do not require use of DCM services for the projects which would increase the administrative obligations of the SDE by an undetermined amount.

In addition, this bill provides that all applicable state, local, and federal codes, laws, and regulations shall continue to be met for any project currently under review and inspection by the DCM in which authority was transferred to another entity.


 Jimmy Holley, Chairperson
Governmental Affairs