LEGISLATIVE BUDGET BOARD

                              Austin, Texas

                    FISCAL NOTE, 77th Regular Session

                              March 31, 2001

          TO:  Honorable Florence Shapiro, Chair, Senate Committee on

               State Affairs

        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 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 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, RB, MW