H.B. 2092 78(R)    BILL ANALYSIS


H.B. 2092
By: Harper-Brown
Transportation
                           Committee Report (Unamended)



BACKGROUND 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 the
department contracts out, but requires the department 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. 

House Bill 2092 will amend the Transportation Code to allow the department
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

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

Amends Section 223.042, Transportation Code, to give the department the
discretion to award maintenance contracts using either competitive bid
procedures or purchasing act procedures when the amount of the contract is
less than $15,000. 

EFFECTIVE DATE

Upon passage, or, if the Act does not receive the necessary vote, the Act
takes effect September 1, 2003.