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  H.B. No. 1542
 
 
 
 
AN ACT
  relating to changes made by certain design-build contractors to the
  design-build team for transportation projects.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter F, Chapter 223, Transportation Code,
  is amended by adding Section 223.2475 to read as follows:
         Sec. 223.2475.  CHANGES TO DESIGN-BUILD TEAM.  (a)  A
  design-build contractor selected for a contract may not make
  changes to companies or entities identified as part of the
  design-build team in a response to a request for proposals unless an
  identified company or entity:
               (1)  is no longer in business, is unable to fulfill its
  legal, financial, or business obligations, or can no longer meet
  the terms of the teaming agreement proposed for the project with the
  design-build contractor;
               (2)  voluntarily removes itself from the team;
               (3)  fails to provide a sufficient number of qualified
  personnel to fulfill the duties identified during the proposal
  stage; or
               (4)  fails to negotiate in good faith in a timely manner
  in accordance with provisions established in the teaming agreement
  proposed for the project.
         (b)  If the design-build contractor makes design-build team
  changes in violation of Subsection (a), any cost savings resulting
  from the changes accrue to the department and not to the
  design-build contractor.
         SECTION 2.  Subchapter K, Chapter 370, Transportation Code,
  is amended by adding Section 370.4075 to read as follows:
         Sec. 370.4075.  CHANGES TO DESIGN-BUILD TEAM.  (a)  A
  design-build contractor selected for a contract may not make
  changes to companies or entities identified as part of the
  design-build team in a response to a request for proposals unless an
  identified company or entity:
               (1)  is no longer in business, is unable to fulfill its
  legal, financial, or business obligations, or can no longer meet
  the terms of the teaming agreement proposed for the project with the
  design-build contractor;
               (2)  voluntarily removes itself from the team;
               (3)  fails to provide a sufficient number of qualified
  personnel to fulfill the duties identified during the proposal
  stage; or
               (4)  fails to negotiate in good faith in a timely manner
  in accordance with provisions established in the teaming agreement
  proposed for the project.
         (b)  If the design-build contractor makes design-build team
  changes in violation of Subsection (a), any cost savings resulting
  from the changes accrue to the authority and not to the design-build
  contractor.
         SECTION 3.  The changes in law made by this Act apply only to
  a contract, highway project, or transportation project for which
  the Texas Department of Transportation or an authority under
  Chapter 370, Transportation Code, first advertises or otherwise
  requests proposals or qualifications on or after the effective date
  of this Act.
         SECTION 4.  This Act takes effect September 1, 2019.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1542 was passed by the House on April
  30, 2019, by the following vote:  Yeas 140, Nays 6, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 1542 was passed by the Senate on May
  21, 2019, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor