| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to performance and payment bonds for public work contracts |
|
|
on public property leased to a nongovernmental entity. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Sections 2253.001(3) and (4), Government Code, |
|
|
are amended to read as follows: |
|
|
(3) "Prime contractor" means a person, firm, or |
|
|
corporation that makes a public work contract with: |
|
|
(A) a governmental entity; or |
|
|
(B) a person who leases any public property. |
|
|
(4) "Public work contract" means a contract for |
|
|
constructing, altering, or repairing a public building or carrying |
|
|
out or completing any public work, including work performed on |
|
|
property owned by a governmental entity or on public property |
|
|
leased by the governmental entity to a nongovernmental entity. |
|
|
SECTION 2. 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 or authorizes a nongovernmental entity |
|
|
leasing public property from the governmental entity to 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 $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 3. Sections 2253.024(a) and (b), Government Code, |
|
|
are amended to read as follows: |
|
|
(a) A prime contractor, on the written request of a person |
|
|
who provides public work labor or material and when required by |
|
|
Subsection (c), shall provide to the person: |
|
|
(1) the name and last known address of the |
|
|
governmental entity or nongovernmental leasehold tenant with whom |
|
|
the prime contractor contracted for the public work; |
|
|
(2) a copy of the payment and performance bonds for the |
|
|
public work, including bonds furnished by or to the prime |
|
|
contractor; and |
|
|
(3) the name of the surety issuing the payment bond and |
|
|
the performance bond and the toll-free telephone number maintained |
|
|
by the Texas Department of Insurance under Subchapter B, Chapter |
|
|
521, Insurance Code, for obtaining information concerning licensed |
|
|
insurance companies. |
|
|
(b) A subcontractor, on the written request of a |
|
|
governmental entity, a nongovernmental leasehold tenant with whom |
|
|
the prime contractor contracted, the prime contractor, a surety on |
|
|
a bond that covers the public work contract, or a person providing |
|
|
work under the subcontract and when required by Subsection (c), |
|
|
shall provide to the person requesting the information: |
|
|
(1) the name and last known address of each person from |
|
|
whom the subcontractor purchased public work labor or material, |
|
|
other than public work material from the subcontractor's inventory; |
|
|
(2) the name and last known address of each person to |
|
|
whom the subcontractor provided public work labor or material; |
|
|
(3) a statement of whether the subcontractor furnished |
|
|
a bond for the benefit of its subcontractors and materialmen; |
|
|
(4) the name and last known address of the surety on |
|
|
the bond the subcontractor furnished; and |
|
|
(5) a copy of that bond. |
|
|
SECTION 4. Section 2253.071(a), Government Code, is amended |
|
|
to read as follows: |
|
|
(a) The proceeds of a public work contract are not payable, |
|
|
until all costs of completion of the contract work are paid by the |
|
|
contractor or the contractor's surety, to a contractor who |
|
|
furnishes a bond required by this chapter if: |
|
|
(1) the contractor abandons performance of the |
|
|
contract; or |
|
|
(2) the contractor's right to proceed with performance |
|
|
of the contract is lawfully terminated by the awarding governmental |
|
|
entity or nongovernmental entity leasing public property from the |
|
|
governmental entity because of the contractor's default. |
|
|
SECTION 5. The changes in law made by this Act apply only to |
|
|
a public work contract or construction project for which a |
|
|
governmental entity or a nongovernmental entity leasing public |
|
|
property from the 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. |
|
|
SECTION 6. This Act takes effect September 1, 2021. |