H.R.3586 - To establish limitations on advanced payments for bus rolling stock, and for other purposes. (119th Congress)
Summary
H.R.3586 aims to modify Section 5323 of Title 49, United States Code, by introducing limitations on advanced payments for bus rolling stock. Specifically, it allows recipients of federal assistance to make advance payments on bus purchases without requiring the manufacturer to obtain a performance bond. The bill sets a limit of 20% of the total purchase order value for such advance payments and outlines conditions for eligibility.
Expected Effects
The bill is likely to ease the financial burden on transit agencies by allowing them to make advance payments without the need for performance bonds. This could potentially speed up the procurement process for new buses. It may also incentivize manufacturers to engage with transit agencies, knowing they will receive a portion of the payment upfront.
Potential Benefits
- Reduced Financial Burden: Transit agencies can make advance payments without requiring performance bonds, potentially freeing up funds.
- Faster Procurement: Streamlined processes may lead to quicker acquisition of new buses.
- Manufacturer Incentive: Advance payments could encourage more manufacturers to participate in transit projects.
- Modernized Bus Fleets: Easier procurement could lead to newer, more efficient bus fleets.
- Improved Transit Services: Ultimately, this could improve public transportation services for communities.
Most Benefited Areas:
Potential Disadvantages
- Risk of Mismanagement: Without performance bonds, there's a risk of funds being mismanaged or misused by manufacturers.
- Potential for Default: Manufacturers could default on contracts, leaving transit agencies with losses.
- Limited Recourse: Recovering funds in case of default may be more difficult without a performance bond.
- Increased Oversight Needed: Transit agencies will need to exercise greater oversight to ensure proper use of funds.
- Possible Inflation of Costs: Manufacturers may inflate costs knowing they will receive advance payments.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the Constitution, specifically Article I, Section 8, which grants Congress the power to regulate commerce and provide for the general welfare. By setting limitations on advanced payments for bus rolling stock, Congress is exercising its power to regulate interstate commerce and support public transportation, which can be seen as promoting the general welfare. There are no apparent conflicts with individual rights or freedoms protected by the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).