HBA-NIK C.S.S.B. 1195 76(R) BILL ANALYSIS Office of House Bill AnalysisC.S.S.B. 1195 By: Shapiro Transportation 5/12/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Currently, there is a growing desire in the state to use recycled products whenever feasible. It is believed that such action helps to reduce the amount of material going into landfills. S.B. 1195 reduces the amount of retainage that the Texas Department of Transportation (TxDOT) withholds from contractors until completion of a project, from five percent of the total cost to four percent, if TxDOT approved materials are used. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 223.010, Transportation Code, by amending Subsection (a) and adding Subsection (h), as follows: (a) Includes an exception as provided in Subsection (h) to the requirement that five percent of the contract price be retained until the entire improvement has been completed and accepted. (h) Requires four percent of the contract price to be retained until the entire improvement has been completed and accepted on any contract that includes the use of recycled materials. SECTION 2. Effective date: September 1, 1999. SECTION 3. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.S.B. 1195 modifies SECTION 1 (Section 223.010(a), Transportation Code) of the original bill, by including an exception as provided in proposed Section 223.010(h), rather than proposed Section 223.0105(d). The substitute redesignates proposed Section 223.0105(d) of the original to proposed Section 223.010(h), which requires four percent of the contract price to be retained until the entire improvement has been completed and accepted on any contract that includes the use of recycled materials, rather than recycled petroleum products. Makes nonsubstantive changes. C.S.S.B. 1195 deletes SECTION 2 (proposed Section 223.0105, Transportation Code), of the original bill, which set forth that which the term "recycled petroleum product" included. The proposed section required the Texas Department of Transportation (TxDOT) to adopt certain standards and specifications; provided that such standards or specifications must be reasonable, prohibited such standards or specifications from permitting the use of a recycled petroleum product of a type or in a quantity or manner that is a hazard to the public health or the environment; and required four percent of the contract price to be retained until the entire improvement has been completed and accepted if the contract involves the use of one or more recycled petroleum products. C.S.S.B. 1195 redesignates SECTION 3 (effective date) of the original to SECTION 2 of the substitute. The substitute removes Subsection (b) of the original, which required TxDOT to adopt standards and specifications necessary to implement Section 223.0105, Transportation Code, as added by this Act, no later than December 31, 1999. C.S.S.B. 1195 redesignates SECTION 4 (short emergency clause) of the original bill to SECTION 3 of the substitute.