| 1 | 1 | | 81R3561 MTB-D |
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| 2 | 2 | | By: Bonnen H.B. No. 2533 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to damages to affected business entities for project |
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| 8 | 8 | | completion delays on highway projects. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter A, Chapter 223, Transportation Code, |
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| 11 | 11 | | is amended by adding Section 223.0125 to read as follows: |
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| 12 | 12 | | Sec. 223.0125. PAYMENT TO AFFECTED BUSINESS ENTITIES. (a) |
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| 13 | 13 | | The schedule under Section 223.012(a) must provide for liquidated |
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| 14 | 14 | | damages to be paid by a contractor to business entities located in a |
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| 15 | 15 | | project area that are adversely affected by project completion |
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| 16 | 16 | | delays. The department shall: |
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| 17 | 17 | | (1) incorporate the schedule as part of each contract |
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| 18 | 18 | | awarded by the commission for a highway construction project; |
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| 19 | 19 | | (2) require a business entity to submit a claim to the |
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| 20 | 20 | | department before the entity may be eligible for the damages; and |
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| 21 | 21 | | (3) collect and send the damages to the entity as |
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| 22 | 22 | | provided by the schedule. |
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| 23 | 23 | | (b) The department holds damages paid by a contractor under |
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| 24 | 24 | | this section in trust for the benefit of a business entity that is |
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| 25 | 25 | | adversely affected. The money used to pay damages under this |
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| 26 | 26 | | section is held by the department outside the treasury and is |
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| 27 | 27 | | administered and disbursed by the department without an |
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| 28 | 28 | | appropriation. |
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| 29 | 29 | | (c) The department shall adopt rules to implement this |
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| 30 | 30 | | section. |
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| 31 | 31 | | (d) The state auditor shall annually conduct an audit of the |
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| 32 | 32 | | department's compliance with this section and report the results of |
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| 33 | 33 | | the audit to the legislature not later than November 1 of each year. |
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| 34 | 34 | | SECTION 2. This Act takes effect September 1, 2009. |
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