SRC-BWC S.B. 1404 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1404
77R9214 JD-DBy: Madla
State Affairs
3/23/2001
As Filed


DIGEST AND PURPOSE 

Current law does not specifically address the use of warranties for road
construction, and the Texas Department of Transportation (TXDOT) has not
asked building contractors for a  longterm warranty on roads in the state.
As proposed, S.B. 1404 will have TXDOT explore, as a pilot project, an
innovative road construction technique used in other states.  The bill
directs TXDOT to issue requests for proposals for two pilot projects each
biennium.  The estimated cost of the projects must exceed $15 million, and
the request for proposals on the projects must call for a long-term
warranty in excess of 15 years.  The warranty provider will be allowed to
innovate and modify TXDOT's pavement specification.  TXDOT is required to
report back to the legislature on progress made under this bill.  This
legislation does not change the current low-bid method of procurement for
road construction. 

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 224, Transportation Code, by adding Subchapter
G, as follows: 

SUBCHAPTER G.  HIGHWAY CONSTRUCTION PILOT PROGRAM
WITH LIMITED PAVEMENT WARRANTY

Sec. 224.201.  PILOT PROGRAM.  Requires the Texas Department of
Transportation (department) to establish a pilot program for highway
construction projects involving the use of a limited pavement warranty.
Requires the department, each biennium, to issue requests for proposals for
two highway construction projects under the pilot program.   

Sec. 224.202.  CRITERION.  Requires the total cost of the highway
construction project to be greater than $15 million in order to be included
in the pilot program. 

Sec. 224.203.  PAVEMENT WARRANTY.  Requires a contract for a highway
construction project under the pilot program to include a long-term limited
pavement warranty.  Prohibits the period of a limited pavement warranty
from being less than 15 years. 

Sec. 224.204.  TERMS OF PAVEMENT WARRANTY.  Requires a limited pavement
warranty under Section 224.203 to specify certain information. 

Sec. 224.205.  WARRANTY PROVISIONS.  Requires the contract for the project,
in connection with a warranty for a highway project constructed under the
pilot program, to include certain provisions. 

Sec. 224.206.  INNOVATIONS BY WARRANTY PROVIDER.  Requires a warranty for a
highway construction project under the pilot program to allow for
innovation by the warranty  provider.  Requires the terms of a warranty to
allow the warranty provider to modify the department's standard
specifications for pavement design, material mix design, and quality
assurance and quality control.   

Sec. 224.207.  CONFLICTS.  Provides that to the extent of a conflict with
another law relating to the letting of a contract for a highway
construction project by the department, or to the terms or conditions of a
contract for a highway construction project entered into by the department,
this subchapter prevails. 

Sec. 224.208.  REPORT TO LEGISLATURE.  Requires the department, not later
than February 1 of each odd-numbered year, to submit a report to the
legislature relating to highway construction projects under this subchapter
during the preceding two years.  Authorizes the report to include
recommendations on the continuation or expansion of the pilot program. 

SECTION 2.  Effective date: September 1, 2001.