The bill would add Subchapter J to Chapter 271, Local Government Code, to authorize a municipality; county; river authority; defense base development authority; certain municipally owned water utilities; or any other special district or authority authorized to enter into certain public works contracts to utilize design-build procedures for certain civil works projects. Authorization under the subchapter would not apply to a water district or authority with a population of less than 50,000.

The bill would apply to different population-sized entities, starting with the largest prior to September 1, 2009, and on or after September 1, 2013, applying to local governmental entities with a population of more than 50,000 in its geographic boundaries or service area. Procedures and other requirements for using this method of procurement are included in the proposed statute. The local government entity would assume all risks and costs associated with scope changes and modifications; unknown or differing site conditions; regulatory permitting, if responsible for those risks and costs by law; and natural disasters and other force majeure events; and costs associated with property acquisition. 

The bill would amend the Education Code to require that any portable, modular building capable of being relocated that is purchased or leased after September 1, 2007 for use as a school building to be inspected to ensure compliance with the mandatory building codes or approved designs, plans, and specifications in Chapter 1202, Occupations Code.

Provisions of the bill would apply only to a contract for which a request for proposals or a request for qualification is first published or distributed on or after the effective date of the bill. The bill would take effect September 1, 2007, but only if House Bill 447, Eightieth Legislature, Regular Session, 2007, is passed into law.

Based on information from various sized local government entities and the Texas Association of Counties regarding the addition of Subchapter J, no significant fiscal impact is anticipated for those local government entities to whom the provisions of the bill would apply in the first five years after the effective date, and there would be no fiscal impact in that initial five-year period to the entities to whom the provisions would not apply until on or after September 1, 2013.

No significant fiscal impact is anticipated as a result of the proposed changes to the Education Code.