RULE NUMBER: Policy 7.23.

PURPOSE AND EFFECT: To update the Policy, consistent with recent statutory amendments, on withholding retainage of a percentage of the progress payments to contractors on construction contracts for projects over $200,000.

SUMMARY: This revision would conform the Policy to recent legislation codified at Fla. Stat. § 218.735: the District will withhold ten percent of the payment from each progress payment made to the contractor. This 10% retainage will continue until 50 percent completion, after which time the retainage will be reduced to five percent (5%) from each subsequent progress payment.

SPECIFIC RULEMAKING AUTHORITY: §§ 1001.41(2); 1001.42(22); 1001.43(2)(d), (4), Fla. Stat.

LAWS IMPLEMENTED: §§ 218.735; 1001.42(9); 1013.50, Fla. Stat.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COST (optional, if one has been prepared): None prepared. Any person who wishes to provide information regarding a statement of estimated regulatory costs, or to provide a proposal for a lower cost regulatory alternative, must do so in writing within 21 days of the publication of this Notice.

CONTACT PERSON: Thomas Johns, 3300 Forest Hill Blvd., West Palm Beach, FL 33406.

PERSON ORIGINATING THE PROPOSED REVISION: Thomas Johns.

TEXT OF PROPOSED RULE: Is available from the District's web site at www.SchoolBoardPolicies.com/revisions.htm .

SUPERVISOR OR PERSON WHO APPROVED THE PROPOSED RULE: Dr. Art Johnson.

DATE PROPOSED REVISION WAS APPROVED BY THE SCHOOL BOARD: February 22, 2006.

PROPOSED RULE DEVELOPMENT NOTICE WAS PUBLISHED: February 8, 2006, in The Palm Beach Post.

PUBLIC HEARING NOTICE: Adoption of the proposed rule is anticipated to be considered at the School Board's Special Meeting on Policies on April 5, 2006, anticipated to begin at 3:15 p.m. in the Board Chambers at 3300 Forest Hill Blvd., West Palm Beach, Fla. AGENDA: A copy of the agenda will be available by March 29 on the District's Web site. Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this hearing is asked to advise the agency at least 48 hours in advance by contacting the Board clerk at 434-8139. This hearing is open to the public.

Publish: March 8, 2006