Austin, Texas
                                   FISCAL NOTE
                               75th Regular Session
                                  May 9, 1997
      TO: Honorable Clyde Alexander, Chair            IN RE:  Senate Bill No. 370, Committee Report 2nd House, Substituted
          Committee on Transportation                              By: Armbrister
          Austin, Texas
         FROM:  John Keel, Director    
In response to your request for a Fiscal Note on SB370 ( Relating 
to the continuation and functions of the Texas Department of 
Transportation, the abolition of the Texas Turnpike Authority, 
and the creation of regional tollway authorities.) this office 
has detemined the following:
         Biennial Net Impact to General Revenue Funds by SB370-Committee Report 2nd House, Substituted
Implementing the provisions of the bill would result in a net 
impact of $0 to General Revenue Related Funds through the biennium 
ending August 31, 1999.

Fiscal Analysis
The bill would continue the Texas Department of Transportation 
(TxDot) for twelve years. Provisions of the bill would: require 
the department to conduct a two-year pilot project to determine 
if outsourcing maintenance and repair of department vehicles 
is cost-effective; authorize the department to create and use 
a State Infrastructure Bank; transfer the functions of the Texas 
Turnpike authority to the department and create a Texas Turnpike 
Authority Division within TxDot and; authorize the creation 
of Regional Tollway Authorities and establishes the North Texas 
Tollway Authority comprising Collin, Dallas, Denton, and Tarrant 
The bill authorizes the department to create and use a State 
Infrastructure Bank (SIB) to encourage public and private investment 
in transportation facilities, and to develop financing techniques. 
A staff of three FTEs plus operating costs for the implementation 
of the SIB would total $210,427 in fiscal year 1998 and $187,477 
in fiscal year 1999 and thereafter.

The bill would require 
the department to develop a cost/benefit analysis between the 
use of local materials previously incorporated into roadways 
verses use of materials blended or transported from other sources. 
The department has estimated that the research projects would 
cost approximately $1.0 million per year for fiscal years 1998 
and 1999.

Provisions in the bill creating the North Texas 
Tollway Authority (NTTA) and the Texas Turnpike Authority (TTA) 
division within TxDot also transfer assets from the Texas Turnpike 
Authority to the North Texas Tollway Authority. The NTTA would 
assume and become liable for all duties and obligations of the 
TTA related to those assets, rights and properties transferred. 
In addition, as a consideration for the transfer of certain 
properties to the NTTA, a provision of the bill provides for 
$10.0 million to be paid to the Texas Turnpike Authority division 
of the Department of Transportation, by the NTTA by no later 
than December 1, 1997. In making the payment, the NTTA and the 
department would ensure that the NTTA is in compliance with 
all agreements assumed by the NTTA and reserves would be maintained 
at a level consistent with TTA historical practices.

obligations incurred by the TTA for feasibility studies for 
US 183-A and the SH 130 totaling $1,150,000 would be funded 
by the Department from the funds transferred from the NTTA. 
In addition, start up costs for the division would also be from 
the NTTA transfer to allow the division to begin its functions. 
Those amounts, for five FTEs and operating costs, are $345,584 
for fiscal year 1998 and $305,284 for fiscal year 1999 and are 
included in the estimate.
The probable fiscal implications of implementing the provisions 
of the bill during each of the first five years following passage 
is estimated as follows:
Five Year Impact:
Fiscal Year Probable           Probable Revenue   Change in Number   
            Savings/(Cost)     Gain/(Loss) from   of State                                                
            from State         State Highway Fund Employees from                                          
            Highway Fund                          FY 1997                                                 
            0006               0006                                                                        
       1998      ($2,706,011)       $10,000,000               8.0                                    
       1998       (1,492,761)                 0               8.0                                    
       2000         (187,477)                 0               3.0                                    
       2001         (187,477)                 0               3.0                                    
       2002         (187,477)                 0               3.0                                    
         Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds 
during each of the first five years is estimated as follows:
              Fiscal Year      Probable Net Postive/(Negative)
                               General Revenue Related Funds
               1998                   $0
               1999                    0
               2000                    0
               2001                    0
               2002                    0
Similar annual fiscal implications would continue as long as 
the provisions of the bill are in effect.
No fiscal implication to units of local government is anticipated.
   Source:            Agencies:   
                      LBB Staff:   JK ,PE ,ML