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House Bill 2515 |
House Author: Smith, Todd |
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Effective: 9-1-09 |
Senate Sponsor: Harris |
House Bill 2515 amends the Government Code to increase, from $25,000 to $50,000, the contract value threshold above which a municipality or a joint airport board is required to require a prime contractor to execute a payment bond before the contractor begins work under a public work contract. It also amends the Property Code to increase, from $25,000 to $50,000, the contract value threshold at or below which a person who furnishes material or labor to a contractor under a prime contract with a municipality or a joint airport board for public improvements in Texas has a lien on the money, bonds, or warrants due the contractor for the improvements. For material or labor supplied a contractor under a prime contract with another type of governmental entity, the lien threshold remains at the current $25,000. The bill preserves existing statutory provisions making the lien contingent on notice by the lien claimant, but removes the requirement that a lien claimant give notice before any payment is made to a public work contractor. The notice deadline, under remaining provisions of existing law, becomes the 15th day of the second month following the month in which the labor or material was supplied.