1-1 By: Madla S.B. No. 1404 1-2 (In the Senate - Filed March 8, 2001; March 13, 2001, read 1-3 first time and referred to Committee on State Affairs; 1-4 April 11, 2001, reported favorably by the following vote: Yeas 6, 1-5 Nays 1; April 11, 2001, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to the establishment by the Texas Department of 1-9 Transportation of a highway construction pilot program that 1-10 includes a limited pavement warranty. 1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-12 SECTION 1. Chapter 224, Transportation Code, is amended by 1-13 adding Subchapter G to read as follows: 1-14 SUBCHAPTER G. HIGHWAY CONSTRUCTION PILOT PROGRAM 1-15 WITH LIMITED PAVEMENT WARRANTY 1-16 Sec. 224.201. PILOT PROGRAM. (a) The department shall 1-17 establish a pilot program for highway construction projects 1-18 involving the use of a limited pavement warranty. 1-19 (b) Each biennium, the department shall issue requests for 1-20 proposals for two highway construction projects under the pilot 1-21 program. 1-22 Sec. 224.202. CRITERION. To be included in the pilot 1-23 program, the estimated total cost of the highway construction 1-24 project must be greater than $15 million. 1-25 Sec. 224.203. PAVEMENT WARRANTY. (a) A contract for a 1-26 highway construction project under the pilot program must include a 1-27 long-term limited pavement warranty. 1-28 (b) The period of a limited pavement warranty may not be 1-29 less than 15 years. 1-30 Sec. 224.204. TERMS OF PAVEMENT WARRANTY. A limited 1-31 pavement warranty under Section 224.203 must specify: 1-32 (1) the responsibilities of the warranty provider; 1-33 (2) the responsibilities of the department; 1-34 (3) the terms of the warranty, including time and 1-35 traffic; 1-36 (4) performance criteria to be met to determine if 1-37 maintenance is required; and 1-38 (5) other specifications as necessary for the 1-39 particular construction project. 1-40 Sec. 224.205. WARRANTY PROVISIONS. In connection with a 1-41 warranty for a highway project constructed under the pilot program, 1-42 the contract for the project must include: 1-43 (1) a mitigation plan to account for inflation during 1-44 the warranty period; 1-45 (2) provisions relating to: 1-46 (A) the frequency of performance assessments; 1-47 and 1-48 (B) the response time for repairs; 1-49 (3) a plan for emergency repairs; 1-50 (4) clearly set out limits of liability under the 1-51 warranty, if any; 1-52 (5) dispute resolution provisions; 1-53 (6) a severability provision; and 1-54 (7) other provisions considered necessary for the 1-55 particular construction project. 1-56 Sec. 224.206. INNOVATIONS BY WARRANTY PROVIDER. (a) A 1-57 warranty for a highway construction project under the pilot program 1-58 must allow for innovation by the warranty provider. 1-59 (b) The terms of a warranty must allow the warranty provider 1-60 to modify the department's standard specifications for pavement 1-61 design, material mix design, and quality assurance and quality 1-62 control. 1-63 Sec. 224.207. CONFLICTS. To the extent of a conflict with 1-64 another law relating to the letting of a contract for a highway 2-1 construction project by the department, or to the terms or 2-2 conditions of a contract for a highway construction project entered 2-3 into by the department, this subchapter prevails. 2-4 Sec. 224.208. REPORT TO LEGISLATURE. Not later than 2-5 February 1 of each odd-numbered year, the department shall submit a 2-6 report to the legislature relating to highway construction projects 2-7 under this subchapter during the preceding two years. The report 2-8 may include recommendations on the continuation or expansion of the 2-9 pilot program. 2-10 SECTION 2. This Act takes effect September 1, 2001. 2-11 * * * * *