TWT H.B. 2337 75(R)BILL ANALYSIS TRANSPORTATION H.B. 2337 By: Bosse 4-11-97 Committee Report (Substituted) BACKGROUND The Texas Department of Transportation (TXDOT) is required by Chapter 2106, Local Government Code, to recover indirect costs from local governments when improving state highways. The nature and the amount of local participation depend on the type of highway being improved and the nature of the improvement. The charging of indirect costs is contrary to the cooperative spirit between TXDOT and local governments. PURPOSE The purpose of C.S.H.B. 2337 is to authorize the Executive Director of the Texas Department of Transportation to waive the application of Chapter 2106 to indirect costs of the TXDOT for certain agreements between TXDOT and a state agency or a local government entity. This waiver is permissive, at the discretion of the executive director of TXDOT. 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. However, in Section 1, Sec. 2106.008, the TXDOT Executive Director is given authority to waive application of Chapter 2106 to indirect costs for certain agreements. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 2106, Government Code, by adding Section 2106.008, which authorizes the executive director of TXDOT to waive the application of this chapter to indirect costs of the TXDOT for certain agreements between TXDOT and a state agency or a local government entity, if the agreement relates to the development of a transportation project or a program administered by the TXDOT. SECTION 2. Emergency clause. Effective upon passage. COMPARISON OF ORIGINAL TO SUBSTITUTE Changes the caption to conform to the body of the bill. SECTION 1. Changes the title of Sec. 2106.008 from NONAPPLICABILITY TO CERTAIN AGREEMENTS in the original to INDIRECT COSTS ASSOCIATED WITH CERTAIN TEXAS DEPARTMENT OF TRANSPORTATION AGREEMENTS in the substitute. The original contained an exemption from the application of indirect costs of the TXDOT. The substitute replaces this provision with language authorizing the executive director of the TXDOT to waive the application of this chapter to indirect costs of the TXDOT associated with certain agreements.