By:  Shapiro                                          S.B. No. 1195
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to contracts involving the use of recycled petroleum
 1-2     products entered into by the Texas Department of Transportation for
 1-3     improvements to state highways and to the retainage of payments
 1-4     under those contracts.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Subsection (a), Section 223.010, Transportation
 1-7     Code, is amended to read as follows:
 1-8           (a)  Five percent of the contract price shall be retained
 1-9     until the entire improvement has been completed and accepted,
1-10     except as provided by Section 223.0105(d).
1-11           SECTION 2.  Subchapter A, Chapter 223, Transportation Code,
1-12     is amended by adding Section 223.0105 to read as follows:
1-13           Sec. 223.0105.  CONTRACTS INVOLVING USE OF RECYCLED PETROLEUM
1-14     PRODUCTS.  (a)  In this section, "recycled petroleum product"
1-15     includes any used petroleum product that following its original use
1-16     is reused for any purpose, including the purpose for which the
1-17     petroleum product was originally used.  The term includes a
1-18     petroleum product that is re-refined, reclaimed, burned, or
1-19     reprocessed.
1-20           (b)  The department shall adopt:
1-21                 (1)  standards for determining whether a contract under
1-22     this subchapter shall be required or permitted to involve the use
1-23     of recycled petroleum products; and
1-24                 (2)  specifications as to the types, qualities, and
 2-1     quantities of recycled petroleum products that may be involved in a
 2-2     contract under this subchapter.
 2-3           (c)  A standard or specification adopted by the department
 2-4     under this section:
 2-5                 (1)  must be reasonable; and
 2-6                 (2)  may not permit the use of a recycled petroleum
 2-7     product of a type or in a quantity or manner that is a hazard to
 2-8     the public health or the environment.
 2-9           (d)  Four percent of the contract price shall be retained
2-10     until the entire improvement has been completed and accepted if the
2-11     contract involves the use of one or more recycled petroleum
2-12     products.
2-13           SECTION 3.  (a)  This Act takes effect September 1, 1999.
2-14           (b)  The Texas Department of Transportation shall adopt
2-15     standards and specifications necessary to implement Section
2-16     223.0105, Transportation Code, as added by this Act, no later than
2-17     December 31, 1999.
2-18           SECTION 4.  The importance of this legislation and the
2-19     crowded condition of the calendars in both houses create an
2-20     emergency and an imperative public necessity that the
2-21     constitutional rule requiring bills to be read on three several
2-22     days in each house be suspended, and this rule is hereby suspended.