87S10025 MWC-F
 
  By: Gervin-Hawkins H.B. No. 26
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the requirement for payment bonds from certain public
  work contractors.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2253.021(a), Government Code, is amended
  to read as follows:
         (a)  A governmental entity that makes a public work contract
  with a prime contractor shall require the contractor, before
  beginning the work, to execute to the governmental entity:
               (1)  a performance bond if the contract is in excess of
  $100,000; and
               (2)  a payment bond if:
                     (A)  the contract is in excess of $100,000
  [$25,000], and the governmental entity is not a municipality or a
  joint board created under Subchapter D, Chapter 22, Transportation
  Code; or
                     (B)  the contract is in excess of $50,000, and the
  governmental entity is a municipality or a joint board created
  under Subchapter D, Chapter 22, Transportation Code.
         SECTION 2.  (a) The changes in law made by this Act apply
  only to a public work contract for which a governmental entity first
  advertises or otherwise requests bids, proposals, offers, or
  qualifications, or makes a similar solicitation, on or after the
  effective date of this Act.
         (b)  A public work contract for which a governmental entity
  first advertises or otherwise requests bids, proposals, offers, or
  qualifications, or makes a similar solicitation, before the
  effective date of this Act is governed by the law as it existed
  immediately before the effective date of this Act, and that law is
  continued in effect for that purpose.
         SECTION 3.  This Act takes effect on the 91st day after the
  last day of the legislative session.