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Relating to retainage requirements for certain public works construction projects.
No significant fiscal implication to the State is anticipated.
Retainage is the percentage of a public works contract payment that is withheld by a government entity to secure performance of the contract. HB 2135 would place additional requirements and limitations on the amount of retainage a governmental entity may withhold and would prohibit a government entity from withholding retainage in certain circumstances.
Texas Action recommends remains neutral on this legislation which does not appear to affect our liberty principles. The government certainly is within its rights to set the terms of contracts, however we have no basis to determine whether the retainage amounts specified by this bill, or the circumstances when retainage is allowed or prohibited, are appropriate.
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