BILL ANALYSIS


                                                        H.B. 2176
                                                 By: Price (Cain)
                                                    State Affairs
                                                          5-12-95
                              Senate Committee Report (Unamended)
BACKGROUND

Current law provides procedures for the letting of state highway
improvement contracts.  Since the Texas Transportation Commission
meets monthly, it typically takes three or four months to prepare,
advertise, receive bids, and award a highway improvement contract. 
This time-consuming process may prevent the Texas Department of
Transportation from adequately responding to the maintenance needs
of the state highway system.

PURPOSE

As proposed, H.B. 2176 authorizes the Texas Department of
Transportation (department) to expedite and the process for
advertising, bidding on, and awarding highway improvement
contracts, including allowing the Texas Transportation Commission
to delegate certain responsibilities regarding contracts to the
executive director of the department or district engineers.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is granted
to the Texas Transportation Commission under SECTION 2 (Sections
9(a) and (b), Article 6674i, V.T.C.S.) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 8, Article 6674h, V.T.C.S., as follows:

     Sec. 8.  (a) Redesignates existing text and makes a conforming
     change.
     
     (b) Created from existing text.  Authorizes advertising of
       contracts proposed to be made by the Texas Department of
       Transportation (department) to be published in certain
       papers, provided that the advertising is limited to two
       successive issues of any newspaper published in the county
       in which the work is done on contracts estimated by the
       department involves less than $300,000, rather than
       $100,000.
       
       (c) Created from existing text.  Makes conforming changes.
       
       (d) Created from existing text.  Requires the department to
       have the right to require all applicants to remit to the
       department an annual subscription fee set by the department
       in an amount not to exceed the average annual costs of
       mailing notices to an applicant, rather than requiring
       applicants to deposit $25 to cover costs.  Requires the
       department to deposit fees to the credit of the state
       highway fund.  Provides that Sections 403.094(h) and
       403.095, Government Code, do not apply to funds deposited in
       the state highway fund under this subsection.
     SECTION 2.     Amends Section 9, Article 6674i, V.T.C.S., as follows:

     Sec. 9.  (a) Requires all bids to be sealed and filed with the
     executive director of the department or a designee, rather
     than the State Engineer Director for Highways and Public
     Transportation.  Authorizes the Texas Transportation
     Commission (commission), by rule, to prescribe conditions
     under which a bid may be rejected by the department, rather
     than requiring certain bids to be received at a public hearing
     by the district engineer.  Requires all bids not rejected by
     the department to be forwarded to the commission.  Makes
     conforming changes.
     
     (b) Authorizes the commission, by rule, to allow bids for a
       contract involving less than $300,000 to be filed with the
       district engineer at a district headquarters and opened and
       read at a public meeting held by the district engineer or a
       designee.  Authorizes the commission to delegate to the
       executive director or the director's designee the right to
       accept or reject bids received and to award a contract to
       the lowest bidder.  Makes conforming changes.
SECTION 3. Amends Section 11, Article 6674k, V.T.C.S., to authorize
the commission to delegate its authority to the executive director
of the department.  Authorizes the executive director to delegate
authority to an employee who is not below the rank of division
director.  Makes a conforming changes.

SECTION 4. Amends Section 12, Article 6674l, V.T.C.S., to make
conforming changes.

SECTION 5. Makes application of this Act prospective.

SECTION 6. Emergency clause.
           Effective date: upon passage.