HBA-MPA C.S.H.B. 2159 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2159
By: Bosse
Transportation
3/24/1999
Committee Report (Substituted)



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. C.S.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 or
a related activity 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.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2159 differs from the original bill in SECTION 1 by expanding the
potential application of Subsection (h) by adding the words "or a related
activity" after the words "vegetative establishment or maintenance."
Substitutes the phrase "but no more than the amount sufficient to ensure
compliance with the contact" for the sentence in the original that calls
for the amount released to be in proportion to the cost of the work that is
completed at the time of release.  Makes nonsubstantive rearrangement of
the wording of the bill.