LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 4, 2001
  
  
          TO:  Honorable Florence Shapiro, Chair, Senate Committee on
               State Affairs
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB298  by Madla (Relating to contracts for the
               development of transportation projects by the Texas
               Department of Transportation and the Texas Turnpike
               Authority division of the Texas Department of
               Transportation.), As Introduced
  
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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 authorize the use of the
design-build contracting method by the Texas Department of Transportation
(TxDOT) and the Texas Turnpike Authority (TTA) for projects costing more
than $50 million.

The bill would establish contractor qualification requirements,
procedures for the evaluation and selection of a design-build firm, and
procedures for the negotiation of contracts.

The bill would authorize a design-build pilot program and require TxDOT
and TTA to conduct an interim study on the use of design-build
contracting and submit a report to the 79th Legislature.  In addition,
the bill would limit the number of design-build projects conducted by
TxDOT and TTA.  The bill would require TxDOT and TTA to submit biennial
reports to the Legislature no later than February 1 of each odd-numbered
year.  A final report relating the use of design-build contracting would
be due no later than February 1, 2009.

It is assumed any savings from the design-build approach would be used to
fund other transportation related projects. 

This bill would take effect September 1, 2001.  The pilot program would
expire December 31, 2009.
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   601   Texas Department of Transportation, 304
                   Comptroller of Public Accounts
LBB Staff:         JK, RB, RT, MW