LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 24, 2001
  
  
          TO:  Honorable Clyde Alexander, Chair, House Committee on
               Transportation
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1831  by Pickett (Relating to the general power of the
               Texas Department of Transportation to contract.),
               Committee Report 1st House, Substituted
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill would amend the Transportation Code to allow the Texas
Department of Transportation (TxDOT) to contract with any public or
private entity to carry out the department's powers, duties, and
responsibilities.  The bill would require TxDOT to adopt policies and
procedures consistent with applicable state procurement practices for
soliciting and awarding the contracts.

No significant fiscal implication to the State is anticipated because any
savings realized from implementing the provisions of the bill would be
used to fund other transportation related projects.

The bill would take effect immediately upon receiving two-thirds majority
vote in both houses; otherwise, the bill would take effect September 1,
2001.
  
Local Government Impact
  
The bill would allow TxDOT to contract with local units of government.
It is estimated that the bill would allow units of local government to
realize significant revenue increases through project and service
contracts and significant cost savings from a reduction in legal counsel
activity.
  
  
Source Agencies:   601   Texas Department of Transportation
LBB Staff:         JK, JO, RT, MW