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.