HBA-NRS H.B. 1138 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1138
By: Longoria
Transportation
7/18/2001
Enrolled



BACKGROUND AND PURPOSE

Small contractors and historically underutilized businesses often do not
have access to large capital resources. As a result, they often have been
at a disadvantage in bidding for state highway improvement contracts which
required small contractors and historically underutilized businesses to
outlay a large percentage of their working capital for a proposal guaranty
in the form of a cashier's check or a money order for separate highway
improvement bids. House Bill 1138 allows a required proposal guaranty to be
in the form of a bid bond or any other method determined suitable by the
Texas Department of Transportation. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency or institution. 

ANALYSIS

House Bill 1138 amends the Transportation Code to authorize a proposal
guaranty to be in the form of a cashier's check or money order drawn on a
financial entity specified by the Texas Department of Transportation
(TxDOT), a bid bond issued by a surety authorized to do business in this
state, or any other method TxDOT determines suitable, if TxDOT by rule
requires a proposal guaranty as a condition of bidding for a contract. 

EFFECTIVE DATE

January 1, 2002.