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A BILL TO BE ENTITLED
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AN ACT
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relating to damages to affected business entities for project |
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completion delays on highway projects. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 223, Transportation Code, |
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is amended by adding Section 223.0125 to read as follows: |
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Sec. 223.0125. PAYMENT TO AFFECTED BUSINESS ENTITIES. (a) |
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The schedule under Section 223.012(a) must provide for liquidated |
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damages to be paid by a contractor to business entities located in a |
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project area that are adversely affected by project completion |
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delays. The department shall: |
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(1) incorporate the schedule as part of each contract |
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awarded by the commission for a highway construction project; |
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(2) require a business entity to submit a claim to the |
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department before the entity may be eligible for the damages; and |
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(3) collect and send the damages to the entity as |
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provided by the schedule. |
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(b) The department holds damages paid by a contractor under |
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this section in trust for the benefit of a business entity that is |
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adversely affected. The money used to pay damages under this |
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section is held by the department outside the treasury and is |
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administered and disbursed by the department without an |
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appropriation. |
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(c) The department shall adopt rules to implement this |
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section. |
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(d) The state auditor shall annually conduct an audit of the |
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department's compliance with this section and report the results of |
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the audit to the legislature not later than November 1 of each year. |
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SECTION 2. This Act takes effect September 1, 2009. |