BILL ANALYSIS C.S.S.B. 532 By: Brown State Affairs 3-21-95 Committee Report (Substituted) 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 grant any additional rulemaking authority to a state officer, institution, or agency. 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.