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