LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION April 25, 2011 TO: Honorable Tommy Williams, Chair, Senate Committee on Transportation & Homeland Security FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB1138 by Watson (Relating to design-build contracts and comprehensive development agreements of regional mobility authorities.), Committee Report 1st House, Substituted No fiscal implication to the State is anticipated. The bill would amend the Transportation Code to prohibit a regional mobility authority (RMA) from entering into a comprehensive development agreement that would entitle a private entity ownership or leasehold interest in the transportation project or the right to operate or retain revenue from the project unless explicitly authorized by the Texas Legislature. The bill also would include the definitions for "design-build contractor" and design-build method and would authorize a regional mobility authority to use the design-build method for a transportation project. The bill would outline procedures for the use of the design-build method including the scope and limitations on contracts; request for qualifications and proposals; contract bidding requirements and negotiations; and performance or payment bonds. The bill would repeal Sections 370.305(d) and (e), and Section 370.314 of the Transportation Code to remove the expiration provision for the ability to enter into a comprehensive development agreement. Local Government Impact It is assumed that an RMA would enter into a comprehensive development agreement or use the design-build method authorized by the provisions of the bill only if sufficient funds were available. The Alamo Regional Mobility Authority reported there would be no fiscal impact to implement the provisions of the bill. The Central Texas Regional Mobility Authority reported there could be a positive fiscal impact because it would increase the possibility that an RMA could build a transportation project due to greater financing flexibility. Source Agencies: LBB Staff: JOB, KJG, TP
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
April 25, 2011
TO: Honorable Tommy Williams, Chair, Senate Committee on Transportation & Homeland Security FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB1138 by Watson (Relating to design-build contracts and comprehensive development agreements of regional mobility authorities.), Committee Report 1st House, Substituted
TO: Honorable Tommy Williams, Chair, Senate Committee on Transportation & Homeland Security
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: SB1138 by Watson (Relating to design-build contracts and comprehensive development agreements of regional mobility authorities.), Committee Report 1st House, Substituted
Honorable Tommy Williams, Chair, Senate Committee on Transportation & Homeland Security
Honorable Tommy Williams, Chair, Senate Committee on Transportation & Homeland Security
John S O'Brien, Director, Legislative Budget Board
John S O'Brien, Director, Legislative Budget Board
SB1138 by Watson (Relating to design-build contracts and comprehensive development agreements of regional mobility authorities.), Committee Report 1st House, Substituted
SB1138 by Watson (Relating to design-build contracts and comprehensive development agreements of regional mobility authorities.), Committee Report 1st House, Substituted
No fiscal implication to the State is anticipated.
No fiscal implication to the State is anticipated.
The bill would amend the Transportation Code to prohibit a regional mobility authority (RMA) from entering into a comprehensive development agreement that would entitle a private entity ownership or leasehold interest in the transportation project or the right to operate or retain revenue from the project unless explicitly authorized by the Texas Legislature. The bill also would include the definitions for "design-build contractor" and design-build method and would authorize a regional mobility authority to use the design-build method for a transportation project. The bill would outline procedures for the use of the design-build method including the scope and limitations on contracts; request for qualifications and proposals; contract bidding requirements and negotiations; and performance or payment bonds. The bill would repeal Sections 370.305(d) and (e), and Section 370.314 of the Transportation Code to remove the expiration provision for the ability to enter into a comprehensive development agreement.
Local Government Impact
It is assumed that an RMA would enter into a comprehensive development agreement or use the design-build method authorized by the provisions of the bill only if sufficient funds were available. The Alamo Regional Mobility Authority reported there would be no fiscal impact to implement the provisions of the bill. The Central Texas Regional Mobility Authority reported there could be a positive fiscal impact because it would increase the possibility that an RMA could build a transportation project due to greater financing flexibility.
It is assumed that an RMA would enter into a comprehensive development agreement or use the design-build method authorized by the provisions of the bill only if sufficient funds were available.
The Alamo Regional Mobility Authority reported there would be no fiscal impact to implement the provisions of the bill.
The Central Texas Regional Mobility Authority reported there could be a positive fiscal impact because it would increase the possibility that an RMA could build a transportation project due to greater financing flexibility.
Source Agencies:
LBB Staff: JOB, KJG, TP
JOB, KJG, TP