SRC-JXG H.B. 2159 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 2159
76R9052 JD-FBy: Bosse (Brown)
Infrastructure
5/3/1999
Engrossed


DIGEST 

Currently, Texas law  requires five percent of the contract price for a
highway improvement project to be retained until the entire improvement has
been completed and accepted. This could reduce the cash flow of the
contractor, which could result in higher bids. The number of projects on
which a contractor may bid may be limited, since the retained amount is
counted against a contractor's bidding capacity. H.B. 2159 would authorize
the Texas Department of Transportation to release a portion of the amount
retained under a highway improvement contract pending completion and
acceptance of the improvement. 

PURPOSE

As proposed, H.B. 2159 authorizes the Texas Department of Transportation to
release a portion of the amount retained under a highway improvement
contract pending completion and acceptance of the improvement. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 223.010, Transportation Code, by amending
Subsection (a) and adding Subsection (h), as follows: 

(a) Requires five percent of the contract price to be retained until the
entire improvement has been completed and accepted, except as provided by
Subsection (h). 
 
(h) Provides that this subsection applies only to a contract that provides
for 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) at the time construction of the
improvement is completed but no more than the amount sufficient to ensure
compliance with the contract, before the entire improvement is accepted.  
 
SECTION 2. Emergency clause.
           Effective date: upon passage.