| |
| |
|
|
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 September 1, 2021. |