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.