HBA-MPA H.B. 2159 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2159 By: Bosse Transportation 3/15/1999 Introduced BACKGROUND AND PURPOSE Currently, the 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) Provides that this subsection applies only to a contract that provides a separate period for performing vegetative establishment or maintenance following construction of an improvement. Authorizes the Texas Department of Transportation to release a portion of the amount retained under Subsection (a) at the time construction of the improvement is completed but before the entire improvement is accepted. Provides that the amount must be in proportion to the cost of the work completed at the time of release. SECTION 2.Emergency clause. Effective date: upon passage.