LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 14, 2001
  
  
          TO:  Honorable Frank Madla, Chair, Senate Committee on
               Intergovernmental Relations
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB510  by Armbrister (Relating to the procurement methods
               a political subdivision or a related entity may use.),
               Committee Report 1st House, Substituted
  
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*  No fiscal implication to the State is anticipated.                    *
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Local Government Impact
  
Under the provisions of the bill, municipalities would be authorized to
use a design-build contract as an option for having facilities
constructed if the municipality were to determine that design-build
procedures would offer the best value.

According to the Texas Municipal League, having the option to utilize
design-build procedures would enable municipalities to save on project
costs.  The City of Kilgore, for example, estimated being able to save
between 15 percent to 18 percent on project costs.
  
  
Source Agencies:   
LBB Staff:         JK, DB