S.B. No. 1580




AN ACT

relating to bond requirements for privatized maintenance 
contracts.         
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 223.042, Transportation Code, is amended 
by adding Subsections (i) and (j) to read as follows:
	(i)  As an alternative to the requirements of Section 
2253.021, Government Code, the department may require that a bond 
securing a contractor's performance under a contract awarded under 
this section for a routine maintenance activity:
		(1)  be in an amount equal to the greatest annual amount 
to be paid the contractor under the contract and remain in effect 
for one year from the day work is resumed after any default by the 
contractor; or
		(2)  be in an amount equal to the amount to be paid the 
contractor during the term of the bond and be for a term of two 
years, renewable annually in two-year increments.
	(j)  A bond posted under Subsection (i) must:                           
		(1)  be solely for the protection of the department; 
and             
		(2)  be conditioned on the faithful performance of the 
maintenance work in accordance with the contract requirements.
	SECTION 2.  (a)  This Act takes effect immediately if it 
receives a vote of two-thirds of all the members elected to each 
house, as provided by Section 39, Article III, Texas Constitution.  
If this Act does not receive the vote necessary for immediate 
effect, this Act takes effect September 1, 2003.
	(b)  A maintenance contract entered into by the Texas 
Department of Transportation before the effective date of this Act 
under Section 223.042, Transportation Code, is governed during the 
remaining term of the contract by Section 223.042, Transportation 
Code, as it existed immediately before the effective date of this 
Act, and the prior law is continued in effect for that purpose.  
Section 223.042, Transportation Code, as amended by this Act, 
applies to the renewal of a contract described by this subsection.

                                                                              




______________________________    ______________________________
President of the Senate             Speaker of the House
	I hereby certify that S.B. No. 1580 passed the Senate on 
April 16, 2003, by the following vote:  Yeas 31, Nays 0.




______________________________ 
   Secretary of the Senate             
	I hereby certify that S.B. No. 1580 passed the House on 
April 25, 2003, by the following vote:  Yeas 146, Nays 0, two 
present not voting.




______________________________ 
   Chief Clerk of the House            



Approved:


______________________________ 
            Date



______________________________ 
          Governor