LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  March 25, 1997
         
         
      TO: Honorable Teel Bivins, Chair            IN RE:  Senate Bill No. 583
          Committee on Education                              By: Ratliff
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB583 ( Relating 
to design-build projects for school districts.) this office 
has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB583-As Introduced
         
No fiscal implication to the State is anticipated.
         

         
 
          
The fiscal implication to units of local government are explained 
below.

Analysis

The bill would amend Subchapter B, Chapter 
44 of the Texas Education Code by adding Section 44.0311 to 
allow districts to construct facilities using a design-build 
contract.

This legislation would take effect September 1, 
1997.

Methodology

To construct a facility with a design-build 
contract, the bill would require a district to designate an 
engineer or architect to act as the district's exclusive representative. 
 The designee would then prepare a proposal for bid by design-build 
firms and assist in evaluation and selection of a firm.  The 
designee would review all design elements from the design-build 
firm prior to or concurrent with construction.  At the conclusion 
of construction, the designee would advise the district as to 
whether the project complies with the originally developed scope, 
design, and criteria.

The bill would require a district to 
delegate exclusive control over a facility construction project 
to an engineer or architect.  If a district does not employ 
an engineer or architect capable of acting as the district's 
exclusive representative, the district would be required to 
contract for the professional services of an engineer or architect 
to execute a design-build contract.  Because design-build has 
only been an option to Texas public schools for less than 2 
years, it is unclear whether this bill would have a direct cost 
implication on current school district design-build practices.


The 
fiscal implications described above would be likely to continue 
beyond 2002.
          
   Source:            Agencies:   701   Texas Education Agency - Administration
                                         
                      LBB Staff:   JK ,LP ,DH