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


Office of House Bill AnalysisH.B. 1138
By: Longoria
Transportation
4/19/2001
Introduced



BACKGROUND AND PURPOSE

Small contractors and historically underutilized businesses often do not
have access to large capital resources. As a result, they often are at a
disadvantage in bidding for state highway improvement contracts which
require small contractors and historically underutilized businesses to
outlay a large percentage of their working capital for a proposal guaranty
in the form of a cashiers check or money order for separate highway
improvement bids. House Bill 1138 allows required proposal guaranty to be
in the form of a bid bond. 

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 department or a bid bond issued by a
surety authorized to do business in this state, if the Texas Department of
Transportation (department) by rule requires a proposal guaranty as a
condition of bidding for a contract. 

EFFECTIVE DATE

January 1, 2002.