LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION

April 10, 2003

TO:	Honorable Mike Krusee, Chair, House Committee on Transportation
FROM:	John Keel, Director, Legislative Budget Board
IN RE:	HB2959 by Krusee (Relating to bond requirements for privatized maintenance contracts.), Committee Report 1st House, Substituted

No significant fiscal implication to the State is anticipated.

The bill would amend the Transportation Code giving the Texas Department of Transportation the option of requiring a private sector contractor to post a performance bond for certain projects undertaken for the Department for routine maintenance.

 

TxDOT indicates it could absorb the costs of implementing the bill within its current resources.

 

The bill would take effect immediately upon receiving a two-thirds majority vote in both houses; otherwise, the bill would take effect September 1, 2003.  The bill would also require that a maintenance contract entered into by TxDOT before September 1, 2003, would be governed for the remaining term of the contract under current law.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:	304 Comptroller of Public Accounts, 601 Department of Transportation
LBB Staff:	JK, RR, RT, MW, KG