By Hamric H.B. No. 2979 Line and page numbers may not match official copy. Bill not drafted by TLC or Senate E&E. A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to retainage on highway contracts. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Amend Section 223.010, Transportation Code, as 1-5 follows: 1-6 Sec. 223.010. Deposit and Investment of Retained Amount. 1-7 (a) Five percent of the contract price shall be retained until the 1-8 entire improvement has been completed and accepted except as 1-9 provided in subsection (h). 1-10 (b) At the request of the contractor and with the approval 1-11 of the department and the comptroller, the amount retained my be 1-12 deposited under a trust agreement with a state or national bank 1-13 domiciled in this state and selected by the contractor. 1-14 (c) The department shall provide a trust agreement that 1-15 protects the interests of the state. 1-16 (d) The bank, acting as escrow agent and by instructions 1-17 from the contractor, may reinvest the retained amount in a 1-18 certificate of deposit issued by a state or national bank domiciled 1-19 in this state, bank time deposit, or other similar investment 1-20 prescribed by the trust agreement. 1-21 (e) Interest earned under the trust agreement shall be paid 2-1 to the contractor unless specified otherwise under the trust 2-2 agreement. 2-3 (f) The escrow agent is responsible for all investments and 2-4 amounts resulting from the deposits of the retained amount until 2-5 released from that responsibility under the trust agreement. 2-6 (g) The contractor shall pay all expenses incident to the 2-7 deposit and all charges made by the escrow agent for custody of the 2-8 securities and forwarding of interest on those securities. Those 2-9 expenses or charges may not apply to the contract or to the state. 2-10 (h) Four percent of the contract price shall be retained 2-11 until the entire improvement has been completed and accepted on any 2-12 contract that includes the use of recycled materials. 2-13 SECTION 2. This Act takes effect September 1, 1999. 2-14 SECTION 3. EMERGENCY CLAUSE. The importance of this 2-15 legislation and the crowded condition of the calendars in both 2-16 houses create an emergency and an imperative public necessity that 2-17 the constitutional rule requiring bills to be read on three several 2-18 days in each house be suspended, and this rule is hereby suspended, 2-19 and that this Act take effect and be in force from and after its 2-20 passage, and it is so enacted.