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).