1-1  By:  Price (Senate Sponsor - Cain)                    H.B. No. 2176
    1-2        (In the Senate - Received from the House May 4, 1995;
    1-3  May 5, 1995, read first time and referred to Committee on State
    1-4  Affairs; May 12, 1995, reported favorably by the following vote:
    1-5  Yeas 11, Nays 0; May 12, 1995, sent to printer.)
    1-6                         A BILL TO BE ENTITLED
    1-7                                AN ACT
    1-8  relating to the award of highway improvement contracts.
    1-9        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-10        SECTION 1.  Section 8, Chapter 186, General Laws, Acts of the
   1-11  39th Legislature, Regular Session, 1925 (Article 6674h, Vernon's
   1-12  Texas Civil Statutes), is amended to read as follows:
   1-13        Sec. 8.  (a)  All contracts proposed to be made by the Texas
   1-14  <State> Department of <Highways and Public> Transportation for the
   1-15  improvement of any highway constituting a part of the State Highway
   1-16  System or for materials to be used in the construction or
   1-17  maintenance thereof shall be submitted to competitive bids.
   1-18        (b)  Notice of the time when and place where such contracts
   1-19  will be let and bids opened shall be published in some newspaper
   1-20  published in the county where the improvement is to be done once a
   1-21  week for at least two weeks prior to the time set for the letting
   1-22  said contract and in two other newspapers that the department may
   1-23  designate.  Provided, however, that on contracts estimated by the
   1-24  department to involve <involving> less than $300,000 <One Hundred
   1-25  Thousand ($100,000.00) Dollars> such advertising may be limited to
   1-26  two successive issues of any newspaper published in the county in
   1-27  which the work is to be done.
   1-28        (c)  If<, and if> there is no newspaper published in the
   1-29  county in which the work is to be done, then the <said> advertising
   1-30  required by Subsection (b) of this section shall be for publication
   1-31  in some newspaper published in some county nearest the county seat
   1-32  of the county in which the work is to be done.
   1-33        (d)  Any <Provided further, that any> person, firm or
   1-34  corporation may make application to have the name of the <said>
   1-35  applicant placed upon a mailing list to receive notices of lettings
   1-36  of any contracts provided for in this section <herein>; and notices
   1-37  of <said> lettings shall be mailed by the department <State Highway
   1-38  and Public Transportation Commission> to all persons, firms or
   1-39  corporations on the <said> mailing list.  The department
   1-40  <Commission> shall have the right to require all applicants to
   1-41  remit to the department an annual subscription fee set by the
   1-42  department in an amount not to exceed the average annual <deposit
   1-43  with the commission a sum of not exceeding Twenty-five ($25.00)
   1-44  Dollars per year to cover> costs of mailing notices to an
   1-45  applicant.  The department shall deposit fees in the state treasury
   1-46  to the credit of the state highway fund.  Sections 403.094(h) and
   1-47  403.095, Government Code, do not apply to funds deposited in the
   1-48  state highway fund under this subsection.
   1-49        SECTION 2.  Section 9, Chapter 186, General Laws, Acts of the
   1-50  39th Legislature, Regular Session, 1925 (Article 6674i, Vernon's
   1-51  Texas Civil Statutes), is amended to read as follows:
   1-52        Sec. 9.  (a)  <The State Department of Highways and Public
   1-53  Transportation shall have the right to reject any and all such
   1-54  bids.>  All such bids shall be sealed, and filed with the executive
   1-55  director of the Texas Department of Transportation or the
   1-56  director's designee <State Engineer-Director for Highways and
   1-57  Public Transportation> at Austin, Texas, and shall be opened at a
   1-58  public meeting by the director or the director's designee <hearing
   1-59  of the State Highway and Public Transportation Commission>.  All
   1-60  bidders may attend and all bids shall be opened in their presence.
   1-61  The Texas Transportation Commission by rule may prescribe
   1-62  conditions under which a bid may be rejected by the department.
   1-63  <Copies of all such bids shall be filed with the county in which
   1-64  the work is to be performed.  Provided however, on contracts
   1-65  involving less than One Hundred Thousand ($100,000.00) Dollars bids
   1-66  may in the discretion of the Commission be received at a public
   1-67  hearing by the District Engineer at the District Headquarters.>
   1-68  All bids so received and not rejected by the department <by the
    2-1  District Engineer> shall be tabulated and forwarded to the
    2-2  Commission, and the Commission shall have the right to accept or
    2-3  reject same, and if accepted, award the contract to the lowest
    2-4  bidder, subject to the requirement of Section 8A of this Act.
    2-5        (b)  For a contract estimated by the department to involve
    2-6  less than $300,000, the Commission may by rule allow bids to be
    2-7  filed with the district engineer at a district headquarters and
    2-8  opened and read at a public meeting held by the district engineer
    2-9  or the district engineer's designee.  The Commission may delegate
   2-10  to the executive director or the executive director's designee the
   2-11  right to accept or reject bids received, subject to the
   2-12  requirements of Section 8A of this Act, and to award a contract to
   2-13  the lowest bidder.  <It shall be the duty of the Commission to
   2-14  prescribe rules and regulations on all bidders on bids received by
   2-15  District Engineers, but the rules and regulations required by the
   2-16  Commission for bids received at Austin by said Commission shall not
   2-17  apply to bidders submitting bids to District Engineers.>
   2-18        SECTION 3.  Section 11, Chapter 186, General Laws, Acts of
   2-19  the 39th Legislature, Regular Session, 1925 (Article 6674k,
   2-20  Vernon's Texas Civil Statutes), is amended to read as follows:
   2-21        Sec. 11.  The Texas Transportation <State Highway> Commission
   2-22  shall prescribe the form of such contracts and may include therein
   2-23  such matters as they may deem advantageous to the State.  Such
   2-24  forms shall be uniform, as near as may be.  The commission may
   2-25  delegate its authority under this section to the executive director
   2-26  of the Texas Department of Transportation.  The executive director
   2-27  may delegate authority received under this section to an employee
   2-28  of the department who is not below the rank of division director.
   2-29        SECTION 4.  Section 12, Chapter 186, General Laws, Acts of
   2-30  the 39th Legislature, Regular Session, 1925 (Article 6674l,
   2-31  Vernon's Texas Civil Statutes), is amended to read as follows:
   2-32        Sec. 12.  Every such contract for highway improvement under
   2-33  the provisions of this Act shall be made in the name of the State
   2-34  of Texas, signed by the executive director of the Texas Department
   2-35  of Transportation or the director's designee <State Highway
   2-36  Engineer>, approved by at least two members of the Texas
   2-37  Transportation <State Highway> Commission or a designee under
   2-38  Section 2103.064(a), Government Code, and signed by the contracting
   2-39  party, and no such contract shall be entered into which will create
   2-40  a liability on the part of the State in excess of funds available
   2-41  for expenditure under the terms of this Act.
   2-42        SECTION 5.  The change in law made by this Act applies only
   2-43  to a contract for which a notice has been published under Sections
   2-44  8(b) and (c), Chapter 186, General Laws, Acts of the 39th
   2-45  Legislature, Regular Session, 1925 (Article 6674h, Vernon's Texas
   2-46  Civil Statutes), as amended by this Act, on or after the effective
   2-47  date of this Act.  A contract for which the notice was published
   2-48  before the effective date of this Act is governed by the law in
   2-49  effect when the notice was published, and the former law is
   2-50  continued in effect for that purpose.
   2-51        SECTION 6.  The importance of this legislation and the
   2-52  crowded condition of the calendars in both houses create an
   2-53  emergency and an imperative public necessity that the
   2-54  constitutional rule requiring bills to be read on three several
   2-55  days in each house be suspended, and this rule is hereby suspended,
   2-56  and that this Act take effect and be in force from and after its
   2-57  passage, and it is so enacted.
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