BILL ANALYSIS S.B. 532 By: Brown (Bosse) 04-26-95 Committee Report (Amended) BACKGROUND Article 6674m, V.T.C.S., provides for partial payments for highway improvement contracts. The statute authorizes partial payments of 95 percent of the value of the work done and requires retainage of the remaining 5 percent of the contract price until the entire work is completed and accepted. However, maintenance contracts and contracts for plans and surveys are not large enough to merit the withholding of 5 percent of the contract price. PURPOSE As proposed, C.S.S.B. 532 prohibits the application to contracts for maintenance or for the making of all necessary plans and surveys preliminary to construction, reconstruction, or maintenance, the limitation on partial payment and the requirement that five percent of the contract price be retained until the work has been completed and accepted. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 13, Article 6674m, V.T.C.S. (Partial Payments), to prohibit the application to contracts for maintenance or for the making of all necessary plans and surveys preliminary to construction, reconstruction, or maintenance, the limitation on partial payments and the requirement that five percent of the contract price be retained until the work has been completed and accepted. Makes conforming changes. SECTION 2. Makes application of this Act prospective. SECTION 3. Emergency clause. Effective date: upon passage. EXPLANATION OF AMENDMENTS Committee amendment #1 would amend Senate Bill 532 by deleting SECTION 2 and inserting in lieu thereof the following: SECTION: The change in law made by Section 1 of this Act applies to contracts in effect on the effective date of this Act and to contracts awarded after the effective date of this Act. SUMMARY OF COMMITTEE ACTION Pursuant to a public notice posted on April 21, 1995, at 4:04 p.m., the House Committee on Transportation met in a public hearing on Wednesday, April 26, 1995, at 2:00 p.m., or upon adjournment, in Room E1.014 of the Capitol Extension and was called to order at 6:13 p.m. by the Chair, Representative Clyde Alexander. Pursuant to Rule 4, Section 11 of the House Rules, the Chair laid out S.B. 532, which is the companion document to H.B. 2147. Representative Bosse laid out Committee amendment #1, and without objection, committee amendment #1 was adopted. Representative Alonzo moved that the Committee report S.B. 532, as amended, to the full House with the recommendation that it do pass. The motion prevailed by the following vote: Ayes (8), Nayes (0), Absent (1), Present not voting (0).