SRC-SEW, CTC S.B. 157 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 157
77R297 DRH-DBy: Truan
State Affairs
2/1/2001
As Filed


DIGEST AND PURPOSE 

Under current law, the Texas Department of Transportation (TxDOT) requires
financial surety against the default of a company which has been awarded a
contract.  Unlike other agencies, TxDOT accepts a guaranty only in the form
of a cashier's check equal to five percent of the bid cost. As proposed,
S.B. 157 authorizes such a guaranty to be in the form of either a cashier's
check, a money order, or a bid bond. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 223A, Transportation Code, by adding Section
223.014 as follows: 

Sec. 223.014. FORM OF PROPOSAL GUARANTY.  Authorizes specific forms for a
guaranty if the Texas Department of Transportation by rule requires a
proposal guaranty as a condition for bidding on a contract. 

SECTION 2.  Effective date: January 1, 2002.