89R3447 CXP-F By: Troxclair H.B. No. 5582 A BILL TO BE ENTITLED AN ACT relating to the design-build method for certain government construction projects. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter G, Chapter 2269, Government Code, is amended by adding Section 2269.3035 to read as follows: Sec. 2269.3035. ALTERNATIVE DESIGN-BUILD METHODS FOR WATER AND WASTEWATER INFRASTRUCTURE. (a) A governmental entity may use the following methods for the construction, rehabilitation, alteration, or repair of water or wastewater infrastructure: (1) a method in which a single fixed price for both design and construction is established at the time the contract with the design-build firm is signed by the parties, commonly known as "fixed price design-build"; or (2) a method in which the design-build firm is involved early in the process of developing the design and the contract includes a stepped payment scheme for design and construction services, commonly known as "progressive design-build." (b) The requirements of this subchapter apply to a method described by Subsection (a) to the extent practicable. SECTION 2. Section 2269.352, Government Code, is amended to read as follows: Sec. 2269.352. APPLICABILITY. This subchapter applies to a governmental entity, including [that: [(1) has a population of more than 100,000 within the entity's geographic boundary or service area; or [(2) is] a board of trustees governed by Chapter 54, Transportation Code. SECTION 3. Section 2269.353(b), Government Code, is amended to read as follows: (b) A contract for a project under this subchapter may cover only a single integrated project. A governmental entity may not enter into a contract for aggregated projects at multiple locations. For purposes of this subsection: (1) if a metropolitan transit authority created under Chapter 451, Transportation Code, enters into a contract for a project involving a linear transit project with multiple stops along the project route for boarding passengers, created under Chapter 451, Transportation Code, the linear transit project is a single integrated project; and (2) a water or wastewater infrastructure project [treatment plant], including a desalination plant, that includes treatment facilities, well fields, pump stations, water storage, and pipelines, is a single integrated project. SECTION 4. Subchapter H, Chapter 2269, Government Code, is amended by adding Section 2269.3535 to read as follows: Sec. 2269.3535. ALTERNATIVE DESIGN-BUILD PROCEDURES FOR WATER AND WASTEWATER INFRASTRUCTURE. (a) A governmental entity may use a design-build method described by Section 2269.3035(a) for the construction, rehabilitation, alteration, or repair of water or wastewater infrastructure. (b) The requirements of this subchapter apply to a method described by Subsection (a) to the extent practicable. SECTION 5. This Act takes effect September 1, 2025.