Austin, Texas
                                   FISCAL NOTE
                               75th Regular Session
                                  April 7, 1997
      TO: Honorable Carlos F. Truan, Chair            IN RE:  Senate Bill No. 370
          Committee on International Relations, Trade & Technology                              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-As Introduced
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; direct the agency toconduct a study 
of the cost/benefit, in conjunction with the Comptroller, of 
moving the point-of-accountability for motor fuels taxes and 
to report to the Legislature on the study results by January 
1, 1998; 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 counties.
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 
an amount to be paid to the Department of Transportation, agreed 
upon by the NTTA and the department, by no later than October 
1, 1997. In determining that amount, the NTTA and the department 
would ensure that, following the payment, 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 need to be 
funded by the Department until funds generated by projects initiated 
by TTA could be made available to the TTA division to assume 
responsibility for the continuation of the studies. In addition, 
start up costs for the division would need to be made available 
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. The Division could be 
self sustaining after projects come on-line by fiscal year 2000 
and repayment to the department of the start up costs could 
be initiated in the same fiscal year.  Should a specific amount 
identified to be paid by the NTTA to the department by October 
1, 1997 be higher than the identified outstanding obligations 
and startup costs, the amounts provided by the department to 
the TTA division for those costs could be assumed by the Division 
and therefore provisions related to the creation of the TTA 
division would have no fiscal impact to the department.

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 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           Change in Number   
            Savings/(Cost)     of State                                                                   
            from State         Employees from                                                             
            Highway Fund       FY 1997                                                                    
       1998      ($1,706,011)               8.0                                                      
       1998         (492,761)               8.0                                                      
       2000         (187,477)               8.0                                                      
       2001         (187,477)               8.0                                                      
       2002         (187,477)               8.0                                                      
         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:   302   Office of the Attorney General
                                         601   Department of Transportation
                      LBB Staff:   JK ,TH ,ML