SRC-LBB H.B. 2092 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 2092
By: Harper-Brown (Wentworth)
Infrastructure Development and Security
5/5/2003
Engrossed


DIGEST AND PURPOSE 

Currently, Chapter 223, Subchapter A of the Transportation Code sets out a
formal advertisement and contract letting procedures that the Texas
Department of Transportation (TxDOT) must follow for all highway
improvement contracts, including maintenance contracts, regardless of the
size of the contract.  Section 223.042 requires that TxDOT spend at least
half of its maintenance project funds on controlled maintenance. 

At the time that the statutes establishing formal contract letting
procedures went into effect, TxDOT typically contracted out only larger
projects and performed smaller projects with its own forces.  Section
223.042, enacted in 1991, increased the number of smaller projects TxDOT
contracts out, but requires TxDOT to award those contracts under the
formal advertisement and bid opening procedures in Chapter 223 of the
Transportation Code.  This often results in the cost of letting exceeding
the cost of the work. 

H.B. 2092 authorizes TxDOT to procure highway maintenance contracts using
competitive bid procedures or purchasing act procedures when the amount of
the contract is less than $15,000. 

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 Section 223.042, Transportation Code, as follows:

Sec. 223.042.  PRIVATIZATION OF MAINTENANCE CONTRACTS.  (c)    Authorizes
the Texas Department of Transportation (TxDOT) to award a contract under
this section as a purchase of service under Subtitle D, Title 10,
Government Code, if TxDOT: 

(1)  estimates that the contract will involve an amount less than $15,000;
and 
(2)  determines that the competitive bidding procedure in this chapter is
not practical. 

(d)  Creates this subsection from text of existing Subsection (c) and
redesignates former Subsections (d)-(h) as (e)-(i).  

SECTION 2.  Effective date:  upon passage or September 1, 2003.