Introduced Version






HOUSE BILL No. 1155

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 8-23-9.

Synopsis: Retainage on highway projects. Eliminates the requirement that a contractor must submit the written consent of the surety of the contractor's bond before the contractor may be permitted to draw any part of the retained percentage of a contract withheld by the Indiana department of transportation. Repeals the requirement that, until there has been substantial completion of an Indiana department of transportation contract, payment on the contract may not exceed 97% of the estimated cost of the completed work. Repeals additional provisions: (1) requiring that the retainage, upon the contractor's request, be deposited in an interest bearing escrow account with the treasurer of state or the treasurer of state's designee acting as escrow agent; and (2) permitting the treasurer of state to charge a fee for these services.

Effective: July 1, 2001.





Cook




    January 9, 2001, read first time and referred to Committee on Roads and Transportation.







Introduced

First Regular Session 112th General Assembly (2001)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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HOUSE BILL No. 1155



    A BILL FOR AN ACT to amend the Indiana Code concerning transportation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 8-23-9-17; (01)IN1155.1.1. -->     SECTION 1. IC 8-23-9-17 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 17. At any time after the contract has been substantially completed, the contractor may be permitted to draw any part of the retained percentage withheld by the department in an amount determined by the department to be in the best interest of the state, provided the contractor files a written request accompanied by the written consent of the surety upon the contractor's bond, on forms provided by the department for requests. The department may pay to the contractor any part of the retained percentage the department determines is in the best interest of the state even though the contractor does not request payment, provided that the department notifies the contractor and the surety upon the contractor's bond of the department's intent to do so at least thirty (30) days in advance of the payment. The fact that the contractor is permitted to withdraw a part of the retained percentage, or that the department pays a part of the retained percentage, shall in no way release or relieve the contractor on the contract. or the contractor or the contractor's surety

on the bond.
    SECTION 2. THE FOLLOWING ARE REPEALED [EFFECTIVE JULY 1, 2001]: IC 8-23-9-15 ; IC 8-23-9-19 ; IC 8-23-9-20.