LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                               May 15, 2001
  
  
          TO:  Honorable Clyde Alexander, Chair, House Committee on
               Transportation
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1404  by Madla (Relating to the establishment by the
               Texas Department of Transportation of a highway
               construction pilot program that includes a limited
               pavement warranty.), As Engrossed
  
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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 require the Texas
Department of Transportation (TxDOT) to establish a pilot program for
highway construction projects that would include the use of limited
pavement warranties.  The bill would establish program and warranty
criteria and would require TxDOT to issue requests for proposals for two
projects during each biennium.  The bill would also require that each
project would cost at least $15 million and have at least a 15 year
warranty.

The bill would require TxDOT to submit a report to the Legislature by
February 1 of each odd-numbered year.

Although initial costs are anticipated to be higher for warranted
projects each biennium, no significant fiscal implication to the State is
anticipated.

The bill would take effect September 1, 2001.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   304   Comptroller of Public Accounts, 601   Texas
                   Department of Transportation
LBB Staff:         JK, JO, RB, MW