LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 7, 2001 TO: Honorable Florence Shapiro, Chair, Senate Committee on State Affairs FROM: John Keel, Director, Legislative Budget Board IN RE: SB298 by Madla (Relating to the contracts for the development of transportation projects by the Texas Department of Transportation and the Texas Turnpike Authority division of the Texas Department of Transportation.), Committee Report 1st House, Substituted ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** The bill would amend the Transportation Code to authorize the use of the design-build contracting method by the Texas Department of Transportation (TxDOT) and the Texas Turnpike Authority (TTA) for projects costing more than $50 million. The bill would establish contractor qualification requirements, procedures for the evaluation and selection of a design-build firm, and procedures for the negotiation of contracts. The bill would require TxDOT or TTA to pay an unsuccessful design-build firm a stipulated amount equal to at least 0.5 percent of the final contract price for any cost incurred preparing the proposal. After payment, TxDOT or TTA could use any design or design feature contained in the proposal, including technologies, techniques, methods, processes, and information. The bill would authorize a design-build pilot program and require TxDOT and TTA to conduct an interim study on the use of design-build contracting and submit a report to the 79th Legislature. In addition, the bill would limit the number of design-build projects conducted by TxDOT and TTA. The bill would require TxDOT and TTA to submit biennial reports to the Legislature no later than February 1 of each odd-numbered year. The bill would also require TxDOT, TTA, and the Office of the State Auditor to submit a final report relating the use of design-build contracting that would be due no later than December 1, 2008. It is assumed any savings from the design-build approach would be used to fund other transportation related projects. This bill would take effect September 1, 2001. The pilot program would expire December 31, 2009. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 304 Comptroller of Public Accounts, 308 State Auditor's Office, 601 Texas Department of Transportation LBB Staff: JK, RB, MW