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.