LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 28, 1995



 TO:     Honorable Clyde Alexander, Chair       IN RE:  House Bill No. 2582
         Committee on Transportation                    By: Alexander
         House of Representatives
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
2582 (Relating to the retainage of payments for a contract to
improve a state highway.) this office has determined the
following:

The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.

The bill requires the Department of Transportation to exempt
certain contracts from the limitation on partial payments and the
requirement that 5% of the contract price be retained until the
work  has been completed and accepted.


No significant fiscal implication to the State is anticipated.

The fiscal implication to  units of local government cannot be
determined.


Source:   Department of Transportation
          LBB Staff: JK, ML, DF