LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 19, 1995



 TO:     Honorable Ken Armbrister, Chair        IN RE:  Senate Bill No. 532
         Committee on State Affairs                     By: Brown
         Senate
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
532 (Relating to exempting contracts for certain services from
retainage requirements applying to highway improvement
contracts.) 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 not retain
5% of the contract price if the contract is for engineering,
designing, planning, or surveying services only. Current law
allows for the retention of 5% of the contract price until the
entire 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