HBA-MPM, MPA H.B. 2159 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2159
By: Bosse
Transportation
8/11/1999
Enrolled



BACKGROUND AND PURPOSE 

State law provides for the retainage of five percent of the contract price
for a highway improvement project, until the entire improvement has been
completed and accepted.  This circumstance can reduce cash flow of the
contractor, thereby resulting in higher bids.  Also, since retainage is
counted against a contractor's bidding capacity, the number of projects on
which a contractor may bid may be limited. H.B. 2159 authorizes the Texas
Department of Transportation to release a portion of amounts retained under
a highway improvement contract pending completion and acceptance of the
improvement. 

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: 

Sec. 223.010.  DEPOSIT AND INVESTMENT OF RETAINED AMOUNT. (a) Makes a
conforming change. 

(h) Makes this subsection applicable only to a contract that provides for a
separate vegetative establishment, maintenance, or performance period
following construction of an improvement.  Authorizes the Texas Department
of Transportation to release a portion of the amount retained under
Subsection (a), but no more than the amount sufficient to ensure compliance
with the contract, at the time construction of the improvement is completed
but before the entire improvement is accepted.  

SECTION 2.Emergency clause.
  Effective date: upon passage.