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.