By: Madla, Lucio S.B. No. 1404 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the establishment by the Texas Department of 1-3 Transportation of a highway construction pilot program that 1-4 includes a limited pavement warranty. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Chapter 224, Transportation Code, is amended by 1-7 adding Subchapter G to read as follows: 1-8 SUBCHAPTER G. HIGHWAY CONSTRUCTION PILOT PROGRAM 1-9 WITH LIMITED PAVEMENT WARRANTY 1-10 Sec. 224.201. PILOT PROGRAM. (a) The department shall 1-11 establish a pilot program for highway construction projects 1-12 involving the use of a limited pavement warranty. 1-13 (b) Each biennium, the department shall issue requests for 1-14 proposals for two highway construction projects under the pilot 1-15 program. 1-16 Sec. 224.202. CRITERION. To be included in the pilot 1-17 program, the estimated total cost of the highway construction 1-18 project must be greater than $15 million. 1-19 Sec. 224.203. PAVEMENT WARRANTY. (a) A contract for a 1-20 highway construction project under the pilot program must include a 1-21 long-term limited pavement warranty. 1-22 (b) The period of a limited pavement warranty may not be 1-23 less than 15 years. 1-24 Sec. 224.204. TERMS OF PAVEMENT WARRANTY. A limited 1-25 pavement warranty under Section 224.203 must specify: 2-1 (1) the responsibilities of the warranty provider; 2-2 (2) the responsibilities of the department; 2-3 (3) the terms of the warranty, including time and 2-4 traffic; 2-5 (4) performance criteria to be met to determine if 2-6 maintenance is required; and 2-7 (5) other specifications as necessary for the 2-8 particular construction project. 2-9 Sec. 224.205. WARRANTY PROVISIONS. In connection with a 2-10 warranty for a highway project constructed under the pilot program, 2-11 the contract for the project must include: 2-12 (1) a mitigation plan to account for inflation during 2-13 the warranty period; 2-14 (2) provisions relating to: 2-15 (A) the frequency of performance assessments; 2-16 and 2-17 (B) the response time for repairs; 2-18 (3) a plan for emergency repairs; 2-19 (4) clearly set out limits of liability under the 2-20 warranty, if any; 2-21 (5) dispute resolution provisions; 2-22 (6) a severability provision; and 2-23 (7) other provisions considered necessary for the 2-24 particular construction project. 2-25 Sec. 224.206. INNOVATIONS BY WARRANTY PROVIDER. (a) A 2-26 warranty for a highway construction project under the pilot program 3-1 must allow for innovation by the warranty provider. 3-2 (b) The terms of a warranty must allow the warranty provider 3-3 to modify the department's standard specifications for pavement 3-4 design, material mix design, and quality assurance and quality 3-5 control. 3-6 Sec. 224.207. CONFLICTS. To the extent of a conflict with 3-7 another law relating to the letting of a contract for a highway 3-8 construction project by the department, or to the terms or 3-9 conditions of a contract for a highway construction project entered 3-10 into by the department, this subchapter prevails. 3-11 Sec. 224.208. REPORT TO LEGISLATURE. Not later than 3-12 February 1 of each odd-numbered year, the department shall submit a 3-13 report to the legislature relating to highway construction projects 3-14 under this subchapter during the preceding two years. The report 3-15 may include recommendations on the continuation or expansion of the 3-16 pilot program. 3-17 SECTION 2. This Act takes effect September 1, 2001.